Principles of Marketing
Seventeenth 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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Mini Cases
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Opening Videos
• Coca Cola ‘Share a Coke’: [Link]
• Apple Vision Pro: [Link]
• Nagad attacks bKash: [Link]
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Learning Objective 1
Define the five promotion mix tools for communicating
customer value.
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The Promotional Mix
The promotion mix is the set of tools a company uses to communicate with
customers and build customer relationships. It is used to persuade them to
buy its products.
It is the combination of different ways a company promotes its products,
such as advertising, personal selling, sales promotions, public relations, and
direct/digital marketing.
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Integrated Marketing Communications
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The Promotional Mix
Advertising is any paid form of
nonpersonal presentation and
promotion of ideas, goods, or
services by an identified
sponsor.
• Broadcast
• Print
• Online
• Mobile
• Outdoor
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The Promotional Mix
Sales promotion is a short-term
incentive to encourage the
purchase or sale of a product or
service.
• Discounts
• Coupons
• Displays
• Demonstrations
An example of Display includes a
supermarket setting up a colourful
end-of-aisle display stacked with
soft drinks during Eid.
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The Promotional Mix
Personal selling is the personal interaction by the firm’s sales force
for the purpose of engaging customers, making sales, and building
customer relationships.
Examples
A salesperson in a mobile shop explains features of a new Samsung
phone and helps the customer choose the right model.
A bank officer visits a corporate client to convince them to take a car
loan.
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The Promotional Mix
Public relations involves building good relations with the company’s
various publics by obtaining favorable publicity, building up a good
corporate image, and handling or heading off unfavorable rumors,
stories, and events.
Examples
A company donates relief goods during floods and invites the media
to highlight its social responsibility.
A brand sponsors a university event or sports tournament to build
goodwill.
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The Promotional Mix
Direct and digital marketing involves engaging directly with carefully
targeted individual consumers and customer communities to both obtain
an immediate response and build lasting customer relationships.
Examples
A YouTube tech reviewer makes a sponsored video reviewing a new
smartphone.
A fashion brand runs Facebook ads showing its new winter collection.
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Shaping the Overall Promotional Mix
The Nature of Each Promotional Tool
Advertising can reach masses of geographically dispersed buyers at a low
cost per exposure, and it enables the seller to repeat a message many times.
Personal selling is the most effective method at certain stages of the buying
process, particularly in building buyers’ preferences, convictions, actions, and
developing customer relationships.
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Shaping the Overall Promotional Mix
The Nature of Each Promotional Tool
Sales promotion includes coupons, contests, cents-off deals, and premiums
that attract consumer attention and offer strong incentives to purchase.
Public relations is a very believable form of promotion that includes news
stories, features, sponsorships, and events.
Direct and digital marketing is an immediate, customized, and interactive
promotional tool that includes direct mail, catalogs, telephone marketing,
online, mobile, and social media.
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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 New Marketing Communications Model
• Consumers are changing
Checking reviews before buying a phone
• Marketing strategies are changing
Custom ads on Facebook or Google
• Advances in digital technology
Chatbots, push notifications, influencer ads
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Integrated Marketing Communications
The New Marketing Communications Model
Content marketing: creating, inspiring, and sharing brand messages and
conversations with and among consumers across a fluid mix of paid, owned,
earned, and shared channels.
Example: Coke Studio music videos, Dove ‘Stop the beauty test’
[Link]
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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
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Steps in Developing Effective Marketing Communication
Identify the target audience
Determine the communication
objectives
Design the message
Choose the media to send the
message
Select message source and
collect feedback
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Steps in Developing Effective Marketing Communication
Identifying the Target Audience
What will How it will
be said be said
When it Where it
will be said will be said
Who will
say it
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Steps In Developing Effective Marketing Communication
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Steps in Developing Effective Marketing Communication
Designing a Message
AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action
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Steps in Developing Effective Marketing Communication
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.”
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Steps in Developing Effective Marketing Communication
Choosing Communication Channels and Media
Personal communication involves two or more people communicating directly
with each other.
• Face to face
• Phone
• Mail or e-mail
• Texting or Internet chat
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Steps in Developing Effective Marketing Communication
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
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 Marketing Communication
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
Collecting Feedback
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 and Mix
Setting the Promotional Budget
• The affordable method sets the promotion budget at the level
management thinks the company can afford.
• The percentage-of-sales method sets the promotion budget at a
certain percentage of current or forecasted sales or as a percentage
of the unit sales price.
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Setting the Total Promotion Budget and Mix
Setting the Promotional Budget
• The competitive-parity method sets the promotion budget to match
competitors’ outlays.
• The objective-and-task method develops the promotion budget by
specific promotion objectives and the costs of tasks needed to achieve
these objectives.
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Shaping the Overall Promotional Mix
The concept of integrated marketing communications suggests that the
company must blend the promotion tools carefully into a coordinated
promotion mix.
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