Principles of Marketing
Eighteenth Edition, Global Edition
Chapter 14
Engaging Consumers and
Communicating Customer
Value: Integrated Marketing
Communication Strategy
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Learning Objectives
14.1 Define the five promotion mix tools for communicating
customer value.
14.2 Discuss the changing communications landscape and
the need for integrated marketing communications.
14.3 Outline the communication process and the steps in
developing effective marketing communications.
14.4 Explain the methods for setting the promotion budget
and factors that affect the design of the promotion mix.
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Learning Objective 1
Define the five promotion mix tools for communicating
customer value.
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The Promotional Mix (1 of 6)
The promotion mix is the specific blend of promotion tools
that the company uses to persuasively communicate
customer value and build customer relationships.
A company’s total promotion mix—also called its marketing
communications mix—consists of the specific blend of
advertising, public relations, personal selling, sales
promotion, and direct marketing tools that the company uses
to engage consumers, persuasively communicate customer
value, and build customer relationships
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The Promotion Mix
Advertising
Sales promotion
Promotional tools Public relations
Personal selling
Direct marketing
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The Promotion Mix
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or services by
an identified sponsor.
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The Promotion Mix
Sales promotion is the short-term incentives to
encourage the purchase or sale of a product or service.
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The Promotion Mix
Public relations involves building good relations with
the company’s various publics
Press releases – Sponsorships
- Special events - Web pages
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The Promotion Mix
Personal selling is the personal presentation by the firm’s
sales force for the purpose of making sales and building
customer relationships.
Sales presentations – Trade shows –
Incentive programs
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The Promotion Mix
Direct marketing using direct mail, telephone, direct-
response television, e-mail, and the Internet to communicate
directly with specific consumers.
Catalog – Telemarketing - Kiosks
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Learning Objective 2
Discuss the changing communications landscape and the
need for integrated marketing communications.
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Integrated Marketing Communications
the integration by the company of its communication channels to
deliver a clear, consistent, and compelling message about
the organization and its brands.
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Integrated Marketing Communications
The New Marketing Communications Model
• Consumers are changing.
• Marketing strategies are changing.
• Advances in digital technology.
Marketers are shifting ever-larger portions
of their marketing budgets away from old-
media mainstays to online, social, and mobile
media. Adidas now uses only digital channels
to engage its younger consumers. Copyright © 2021 Pearson Education Ltd.
Integrated Marketing Communications
• Content marketing
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Learning Objective 3
Outline the communication process and the steps in
developing effective marketing communications.
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A View of the Communication Process
Figure 14.2 Elements in the Communication Process
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A View of the Communications Process
▪ Sender is the party sending the message to another party.
▪ Encoding is the process of putting thought into symbolic form.
▪ Message is the set of symbols the sender transmits.
▪ Media refers to the communications channels through which the
message moves from sender to receiver.
▪ Decoding is the process by which the receiver assigns meaning
to the symbols.
▪ Receiver is the party receiving the message sent by another
party.
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A View of the Communications Process
▪ Response is the reaction of the receiver after being exposed
to the message
▪ Feedback is the part of the receiver’s response
communicated back to the sender
▪ Noise is the unplanned static or distortion during the
communication process, which results in the receiver’s getting
a different message than the one the sender sent
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Steps in Developing Effective
Marketing Communication (1 of 10)
1. Identify target audience
2. Determine communication objectives
3. Design the message
4. Choose the media to send the message
5. Select message source and collect feedback
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Steps in Developing Effective
Marketing Communication (2 of 10)
Identifying the Target Audience
• What will be said
• How it will be said
• When it will be said
• Where it will be said
• Who will say it
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Steps in Developing Effective
Marketing Communication (3 of 10)
Designing a Message
AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action
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Steps in Developing Effective
Marketing Communication (4 of 10)
Message Content – “What to Say”
Rational appeal relates to the audience’s self-interest.
Emotional appeal is an attempt to stir up positive or
negative emotions to motivate a purchase.
Moral appeal is directed to an audience’s sense of what is
right and proper.
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Steps in Developing Effective Marketing
Communication
Designing a Message
Message content is “what to say.”
Message structure and format is “how to say it.”
Content Rational appeal
Massage
Structure
Emotional appeal
Format
Moral appeal
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Steps in Developing Effective Marketing
Communication (5 of 10)
Designing a Message
Rational appeal
Apple
Emotional appeal
Moral appeal
Nike :
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Steps in Developing Effective Marketing
Communication (5 of 10)
Designing a Message Rational appeal
Emotional appeal
Moral appeal
Starbucks
“To inspire and nurture the human
spirit – one person, one cup and one
neighborhood at a time.”
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Steps in Developing Effective
Marketing Communication (6 of 10)
Choosing Communication Channels and Media
Personal communication involves two or more people
communicating directly with each other.
• Face-to-face
• Phone
• Mail or email
• Texting or internet chat
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Steps in Developing Effective
Marketing Communication (8 of 10)
Choosing Communication Channels and Media
Nonpersonal communication channels are media that
carry messages without personal contact or feedback,
including major media, atmospheres, and events.
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Steps in Developing Effective Communication
Non-personal communication
Major media Atmospheres Events
environments that Press conferences
print, broadcast, display,
and online media. create or reinforce the Grand openings
buyer’s leanings
toward buying a Exhibits
product. Public tours
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Steps in Developing Effective
Marketing Communication (7 of 10)
Choosing Communication Channels and Media
Opinion leaders are people whose opinions are sought by
others.
Buzz marketing involves cultivating opinion leaders and
getting them to spread information about a product or
service to others in their communities.
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Steps in Developing Effective
Marketing Communication (9 of 10)
Selecting the Message Source
The message’s impact depends on how the target audience
views the communicator.
• Celebrities
– Athletes
– Entertainers
• Professionals
– Health-care providers
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Steps in Developing Effective
Marketing Communication (10 of 10)
Collecting feedback involves the communicator
understanding the effect on the target audience by
measuring behavior resulting from the content.
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Learning Objective 4
Explain the methods for setting the promotion budget and
factors that affect the design of the promotion mix.
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Setting the Total Promotion Budget
Affordable budget method
➢ They set the promotion budget at the level they think
the company can afford.
➢ Small businesses often use this method, the company
cannot spend more on advertising than it has
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Setting the Total Promotion Budget
Percentage-of-sales method
sets the budget at a certain percentage of current or
forecasted sales or unit sales price.
➢ Easy to use and helps management think about the
relationship between promotion, selling price, and profit
per unit
➢ Wrongly views sales as the cause than the result of
promotion
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Setting the Total Promotion Budget
Competitive-parity method
sets the budget to match competitor outlays.
➢ Represents industry standards
➢ Avoids promotion wars
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Setting the Total Promotion Budget
Objective-and-task method
sets the budget based on what the firm wants to accomplish
with promotion and includes
➢ Defining promotion objectives
➢ Determining tasks to achieve the objectives
➢ Estimating costs
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Shaping the Overall Promotional Mix
Difference ???
Figure. Push versus Pull Promotion Strategy
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