Principles of Marketing

Nineteenth Edition, Global Edition

Chapter 14
Engaging Consumers and
Communicating Customer Value:
Integrated Marketing
Communications Strategy

Lecturer: Dr. David Wang Dapeng

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Learning Objectives
14.1 Define the four 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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JOLLIBEE: Communicating Family
Values
By focusing on familial values,
Jollibee’s campaigns
reemphasize their brand
philosophy. Year after year,
Jollibee runs a series of
integrated marketing
communication campaigns
that engage brand fans and
keep the Jollibee brand fresh,
relatable, and contemporary.

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Learning Objective 1
Define the four promotion mix tools for communicating
customer value.

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The Promotional Mix (1 of 5)
The promotion mix is the specific blend of promotion tools
that the company uses to persuasively communicate
customer value and build customer relationships.

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The Promotional Mix (2 of 5)
Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified
sponsor.
• Broadcast
• Print
• Digital
• Mobile
• Outdoor

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The Promotional Mix (3 of 5)
Sales promotion is a short-term incentive to encourage the
purchase or sale of a product or service.
• Discounts
• Coupons
• Displays
• Demonstrations
• Events

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The Promotional Mix (4 of 5)
Personal selling is the personal interaction by the firm’s
sales force for the purpose of engaging customers, making
sales, and building customer relationships.
• Sales presentations
• Trade shows
• Incentive programs

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The Promotional Mix (5 of 5)
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.
• News updates
• Stories
• Sponsorships
• Events
• Webpages

The entire marketing mix—promotion and product, price, and

place—must be coordinated for greatest impact.

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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 (1 of 5)
The New Marketing Communications Model

Digital Technology has transformed how companies and customers

communicate.
• Communication tools and platforms
– smartphones
– IoT devices
– brand websites
– social media
– email
– mobile web
– streamed content
– online communities
– metaverse.
• Targeted, social, and engaging marketing communication models.
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Integrated Marketing Communications (2 of 5)
The New Marketing Communications Model
• Consumers are changing.
• Marketing strategies are changing.
• Advances in digital technology

Many large advertisers are moving

toward a “digital-first” approach to
build their brands. Marketing
powerhouse Unilever now spends
as much as 45 percent of its huge
global marketing budget on digital
media, making it a leader in the
digital advertising revolution.
rafapress/Shutterstock

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Integrated Marketing Communications (3 of 5)
The New Marketing
Communications Model
Content marketing: As the lines
are rapidly blurring between
traditional advertising and new
digital content, many marketers
now view themselves more
broadly as content marketing
managers who create, inspire, designer491/Shutterstock
share, and curate marketing
content—both their own and
that created by consumers and
others.

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Integrated Marketing Communications (4 of 5)
Figure 14.1 Integrated Marketing Communications

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Integrated Marketing Communications (5 of 5)
The New Marketing Communications Model
Integrated marketing communications (IMC) involves carefully
integrating and coordinating the company’s many communications
channels to deliver a clear, consistent, and compelling brand and
company message.

Integrated marketing
communications: Land Rover’s
“Above & Beyond” marketing
campaign integrates the clout and
reach of traditional media with the
power of digital and social media to
create deep and personal customer © JAGUAR LAND ROVER LIMITED 2022
engagement.

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Discussion Question (1 of 2)
How has the landscape of marketing communications
changed?

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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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Steps in Developing Effective
Marketing Communication (1 of 10)
• Identify the target audience
• Determine the communication objectives
• Design the message
• Choose the media to send the message
• Select message source and collect feedback

Moving customers through the

customer journey: Financial services
firm Greenlight built awareness
among potential customers with a
creative Super Bowl ad. “Every time
a parent hears about Greenlight,
they love it.”

Courtesy of Greenlight

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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
Emotional appeals: The ASPCA’s
ads use emotional appeals to tug at
people’s heartstrings while
encouraging them to contribute to
animal welfare support or to adopt
shelter animals.
ASPCA® The American Society for the Prevention of
Cruelty to Animals®

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Steps in Developing Effective
Marketing Communication (3 of 10)
Determining the Communication Objectives
Five As
• Awareness
• Appeal
• Ask
• Act
• Advocacy

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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 (5 of 10)
Designing a Message
Message content is “what to say.”
Message structure and
format is “how to say it.”

Message format: To attract

attention, advertisers can use
novelty and contrast, eye-
catching images and headlines,
and distinctive formats, as in this
Volkswagen ad.
Park Assist by Volkswagen

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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

Personal communications channels: Red

Bull’s more than 4,000 Student Marketeers
globally connect directly with Red Bull fans to
generate awareness, excitement, and
Zain Jafar/Red Bull Content Pool
unforgettable brand experiences. They are
“the face of the brand.”

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Steps in Developing Effective
Marketing Communication (7 of 10)
Choosing Communication Channels and Media
Word-of-mouth influence strongly influences consumer decisions.
These channels include:
• independent experts
• consumer advocates
• bloggers
• neighbors
• friends
• family members
• associates

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 (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
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
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 (1 of 2)
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.

Setting the promotion budget:

Amazon, the world’s largest
advertiser, spends $11.5 billion a
year building its brand and
advertising its full breadth of products
and services. But is that too little, just
right, or too much?

© 1996–2022 [Link], Inc. or its affiliates.

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Setting the Total Promotion Budget
and Mix (2 of 2)
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
(1 of 5)
The concept of integrated marketing communications suggests that
the company must blend the promotion tools carefully into a coordinated
promotion mix.

TV has vast reach: More than 96

million Americans watched the
most recent Super Bowl on TV,
and 42 percent of football fans
watched Super Bowl ads on
YouTube before, during, and after
the game.
KeyStock/Shutterstock

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Shaping the Overall Promotional Mix
(2 of 5)

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
(3 of 5)

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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Shaping the Overall Promotional Mix
(4 of 5)
Promotion Mix Strategies
Figure 14.3 Push versus Pull Promotion Strategy

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Shaping the Overall Promotional Mix
(5 of 5)

Integrating The Promotional Mix

The company must take steps to see that each promotion
mix element is smoothly integrated.
The various promotion elements should work together to
carry the firm’s unique brand messages and selling points.

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Socially Responsible Marketing
Communication (1 of 2)
Advertising and Sales Promotion
• Communicate openly and honestly with
consumers and resellers
• Avoid deceptive or false advertising
• Avoid bait-and-switch advertising
• Conform to all federal, state,
• and local regulations
Dove’s classic Campaign for Real Beauty
helped to redefine beauty and make
women feel beautiful every day. The
brand’s now-15-year-old, well-funded
Dove Self-Esteem Project has raised
awareness that self-esteem is a real issue
for young girls and is educating young
people around the word in body Retro AdArchives/Alamy Stock Photo
confidence and self-esteem.
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Socially Responsible Marketing
Communication (2 of 2)
Personal Selling
• Follow rules of “fair competition”
• Do not offer bribes
• Do not attempt to obtain competitors’ trade secrets
• Do not disparage competitors or their products

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Discussion Question (2 of 2)
Describe socially responsible marketing communication.

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Principles of Marketing
Nineteenth Edition, Global Edition

Chapter 15
Advertising and Public Relations

Lecturer: Dr. David Wang Dapeng

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Learning Objectives
15.1 Define the role of advertising in the promotion mix.
15.2 Describe the major decisions involved in developing an
advertising program.
15.3 Define the role of public relations in the promotion mix.
15.4 Explain how companies use PR to communicate with
relevant publics.

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 Inspired by Iceland: One Giant Leap for
Tourism
• Iceland’s tourism industry has
changed the country’s narrative
with subversive marketing
campaigns that resonate with
people around the world. By
drawing upon the Icelandic
people’s enthusiasm and their
personal connections to spread José Javier Ballester Legua/Alamy Stock Photo

the message, the Tourism

Board capitalized on an element
of connection and relatability
that they couldn’t have
otherwise.
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Learning Objective 1
Define the role of advertising in the promotion mix.

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Advertising (1 of 2)
Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified
sponsor.

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Advertising (2 of 2)
Figure 15.1 Major Advertising Decisions

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Learning Objective 2
Describe the major decisions involved in developing an
advertising program.

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Setting Advertising Objectives (1 of 3)
An advertising objective is
a specific communication
task to be accomplished with
a specific target audience
during a specific time.
Comparative advertising:
Microsoft and Apple have
taken direct aim at each other
rvlsoft/Shutterstock
in their advertising time and
again over the years.

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Setting Advertising Objectives (2 of 3)
Informative advertising is used when introducing a new
product category to build primary demand.
Persuasive advertising is important with increased
competition to build selective demand.
Reminder advertising is important with mature products to
help maintain customer relationships and keep customers
thinking about the product.

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Setting Advertising Objectives (3 of 3)
Table 15.1 Possible Advertising Objectives
Blank

Informative Advertising

Communicating customer value Suggesting new uses for a product

Building a brand and company image Informing the market of a price or design
change
Telling the market about a new product Describing available services and support

Explaining how a product works Correcting false impressions

Blank

Persuasive Advertising

Building brand preference Persuading customers to purchase now

Encouraging switching to a brand Creating customer engagement

Changing customer perceptions of product value Building brand community

Blank

Reminder Advertising

Maintaining customer relationships Reminding consumers where to buy the product

Reminding consumers that the product may be Keeping the brand in a customer’s mind during
needed in the near future off-seasons

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Setting the Advertising Budget
Factors to Consider
• Stage in product life cycle
• Market share
• Competition
Advertising budgets: Each
year, dozens of advertisers
Jonathan Larsen/Diadem Images/Alamy Stock Photo
spend lavishly to showcase
their ads during the World
Cup. But do the returns justify
the outrageous costs?

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Developing Advertising Strategy
(1 of 13)
Advertising strategy is the strategy by which the company
accomplishes its advertising objectives and consists of:
• Creating advertising messages and brand content
• Selecting advertising media

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Developing Advertising Strategy
(2 of 13)
Creating the Advertising Message and Brand Content
Advertising clutter: Today’s
cord-cutting consumers have
a rich new set of information
and entertainment options.
Advertisers can no longer
force-feed the same old
cookie-cutter messages and
content to captive consumers
through traditional media.
Rasulov/Shutterstock

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Developing Advertising Strategy
(3 of 13)
Creating the Advertising Message and Brand Content
Merging advertising and entertainment:
• Brand integrations—also known as branded
entertainment, involve making the brand an inseparable
part of some form of entertainment or content.
• Native advertising—advertising or other brand-produced
online content that looks in form and function like the other
natural content surrounding it on a web or social media
platform.

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Developing Advertising Strategy
(4 of 13)
Creating the Advertising Message and Brand Content
Message and content strategy: The first step in creating
effective advertising content is to plan a message strategy—
the general message that will be communicated to
consumers.
• Identifies consumer benefits
• Follows from company’s broader positioning and customer
value creation strategies

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Developing Advertising Strategy
(5 of 13)
Creating the Advertising The highly acclaimed film The LEGO
Message and Brand Content Movie was pretty much a 100-minute
The creative concept is the product placement for iconic LEGO
compelling “big idea” that will bring construction bricks. The sequel
an advertising message strategy to offered product placement
life in a distinctive and memorable opportunities for other brands, such
way. as a LEGO version of the Chevy
Silverado.
Characteristics of the appeals:
• Meaningful
• Believable
• Distinctive

Barry King/Alamy Stock Photo; W E NN Rights Ltd/Alamy

Stock Photo
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Discussion Question (1 of 2)
What is native advertising?

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Developing Advertising Strategy
(6 of 13)
Creating the Advertising Message and Brand Content
Message execution occurs when the advertiser turns the big idea
into an actual ad execution that will capture the target market’s
attention and interest. The creative team must find the best
approach, style, tone, words, and format for executing the
message.
Distinctive advertising appeals:
Wolverine sets its Cat
Earthmovers footwear apart
through its association with the
well-respected Caterpillar brand.
Cat Earthmovers boots are “born
from bulldozers.”
Courtesy Young & Laramore and Cat Footwear

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Developing Advertising Strategy
(7 of 13)
Message Execution Styles
• Slice of life
• Lifestyle
• Fantasy
• Mood or image
• Musical
• Personality symbol
• Technical expertise
• Scientific evidence
• Testimonial or endorsement

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Developing Advertising Strategy
(8 of 13)
Creating the Advertising Novel formats can make an
Message and Brand Content advertisement stand out. This
Message execution also Rocket Mortgage by Quicken
includes: Loans ad compels readers to flip
the ad, where they get the
• Tone
brand’s “Go Waitless” message.
– Positive or negative
• Attention-getting words
• Format
– Illustration
– Headline
– Copy

Quicken Loans

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Developing Advertising Strategy
(9 of 13)
Selecting Advertising Media
The major steps in advertising media
selection:
• Determining reach, frequency, impact,
and engagement
• Choosing among major media types
• Selecting specific media vehicles
• Choosing media timing
Engaging the right consumers with the right
media: The adidas “Here to Create Legend” Marcio Jose Bastos Silva/Shutterstock
Boston Marathon campaign created
ultrapersonalized highlight videos for each
of 30,000 marathon participants, identified
by RFID chips on their adidas bibs, and
made available online within hours.
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Developing Advertising Strategy
(10 of 13)
Reach is a measure of the percentage of people in the target
market who are exposed to the ad campaign during a given
period of time.
Frequency is a measure of how many times the average
person in the target market is exposed to the message.
Impact is the qualitative value of a message exposure
through a given medium.
Engagement is a measure of things such as ratings,
readership, listenership, and click-through rates.

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Developing Advertising Strategy
(11 of 13)
Table 15.2 Profiles of Major Media Types
Medium Advantages Limitations
Digital, mobile, High selectivity; low cost; immediacy; engagement Potentially low impact; high audience
and social capabilities control of content and exposure
media

Television Good mass-marketing coverage; low cost per High total costs; high clutter; fleeting
exposure; combines sight, sound, and motion; exposure; less audience selectivity
appealing to the senses
Newspapers Flexibility; timeliness; good local market coverage; Short life; poor reproduction quality;
high believability small pass-along audience

Direct mail High audience selectivity; flexibility; no ad Relatively high cost per exposure;
competition within the same medium; allows “junk mail” image
personalization
Magazines High geographic and demographic selectivity; Long ad purchase lead time; high cost;
credibility and prestige; high-quality reproduction; no guarantee of position
long life and good pass-along readership
Radio Good local acceptance; high geographic and Audio only; fleeting exposure; low
demographic selectivity; low cost attention (“the half-heard” medium);
fragmented audiences
Outdoor Flexibility; high repeat exposure; low cost; good Little audience selectivity; creative
positional selectivity limitations

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Developing Advertising Strategy
(12 of 13)
Selecting Advertising Media Marketers have discovered a
Selecting specific media dazzling array of alternative
vehicles involves decisions media, like this clever
presenting the message promotion for the fourth season
effectively and efficiently to the of Stranger Things at the
target customer and must Piazza del Duomo.
consider the message’s:
• Impact
• Effectiveness
• Cost

Francesco Prandoni/Getty Images

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Developing Advertising Strategy
(13 of 13)
Selecting Advertising Media
Deciding on media timing: When deciding on media timing, the planner
must consider:
• Seasonality
• Real-time responses

Media timing: [Link]

and other online flower companies
advertise all year long but boost
spending substantially during winter
holidays and other special
occasions.

[Link]

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Evaluating Advertising Effectiveness
and Return on Advertising
Investment (1 of 3)
Return on advertising investment is the net return on
advertising investment divided by the costs of the advertising
investment.

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Evaluating Advertising Effectiveness
and Return on Advertising
Investment (2 of 3)
Communication effects indicate whether the ad and media
are communicating the ad message well and can be tested
before or after the ad runs.
Sales and profit effects compare past sales and profits with
past expenditures or through experiments.

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Evaluating Advertising Effectiveness
and Return on Advertising
Investment (3 of 3)
Sales effects are easier to measure with digital advertising.
• The digital environment is friendly to experimentation.
• Marketers can manipulate content across customer
groups with readily measurable results.
Managers must still rely on judgment along with quantitative
analysis when assessing advertising performance.

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Other Advertising Considerations
Organizing for advertising
• Agency v s. in-house
ersu

International advertising
decisions
• Standardization or Adaptation
International advertising: No
Used with permission of Inter I K E A System B.V.
matter where in the world you
go—here India—IKEA’s
advertising portrays IKEA’s
“better home” themes of creating
a better life for everyday people
through quality furniture at
affordable prices.

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Diversity, Equity, and Inclusion (DEI)
in Advertising
Successfully incorporating DEI
into the fabric of a brand’s
advertising and identity requires
a deep and continuous
commitment. Love has no race,
no age, no gender, no religion K
no labels.

Courtesy of Ad Council

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Discussion Question (2 of 2)
How have consumers responded to Diversity, Equity and
Inclusion advertising?

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Learning Objective 3
Define the role of public relations in the promotion mix.

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Public Relations (1 of 4)
Public relations consists of activities designed to engage
the company’s various publics and build good relations with
them.

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Public Relations (2 of 4)
Press relations or press agency involves the creation and
placing of newsworthy information to attract attention to a
person, product, or service.
Product publicity involves publicizing specific products.
Public affairs involves building and maintaining national or
local community relations.

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Public Relations (3 of 4)
Lobbying involves building and maintaining relations with
legislators and government officials to influence legislation
and regulation.
Investor relations involves maintaining relationships with
shareholders and others in the financial community.
Development involves public relations with donors or
members of nonprofit organizations to gain financial or
volunteer support.

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Public Relations (4 of 4)
The Role and Impact of PR
• Lower cost than advertising
• Stronger impact on public awareness than advertising
• Has power to engage consumers and make them part of
the brand story

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Learning Objective 4
Explain how companies use PR to communicate with
relevant publics.

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Major Public Relations Tools
The power of public relations: A
• News
simple statue with a big
• Videos message, backed by an
• Special events imaginative PR campaign, has
• Written materials had a larger and more lasting
• Corporate identity materials impact than even the most
memorable Super Bowl ad,
• Public service activities
probably at a lower cost.
• Buzz marketing
• Social networking
• Internet

quietbits/Shutterstock

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Principles of Marketing
Nineteenth Edition, Global Edition

Chapter 16
Personal Selling and Sales
Promotion

Lecturer: Dr. David Wang Dapeng

Copyright © 2024 Pearson Education Ltd. All Rights Reserved.

Learning Objectives
16.1 Discuss the role of a company’s salespeople in
engaging customers, creating customer value, and
building customer relationships.
16.2 Identify and explain the six major sales force
management steps.
16.3 Discuss the personal selling process, distinguishing
between transaction-oriented marketing and
relationship marketing.
16.4 Explain how sales promotion campaigns are developed
and implemented.

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SALESFORCE: You Need a Great
Sales Force to Sell Salesforce
Salesforce’s cloud-based “Customer Success Platform”
provides a wide array of customer relationship management
tools that help its customers “supercharge their sales.”

Sundry Photography/Shutterstock

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Learning Objective 1
Discuss the role of a company’s salespeople in engaging
customers, creating customer value, and building customer
relationships.

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Personal Selling (1 of 2)
Personal selling is the interpersonal part of the promotion mix
and can include:
• Face-to-face communication
• Telephone communication
• Video or web conferencing
Professional selling: It takes a lot
more than a friendly smile and a
firm handshake to sell P&G’s
billion-dollar brands to
professional buyers at P&G’s Jin Lee/Bloomberg via Getty Images

large retailer accounts. P&G’s

customer business development
managers work with customers
as “strategic partners.”

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Personal Selling (2 of 2)
The Nature of Personal Selling Salespeople link the company
with its customers. To many
Salespeople are an effective customers, the salesperson is
link between the company and the company.
its customers to produce
customer value and company
profit by:
• Representing the company to
customers
• Representing customers to
the company
• Working closely with Dean Drobot/Shutterstock

marketing

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Learning Objective 2
Identify and explain the six major sales force management
steps.

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Managing the Sales Force (1 of 14)
Sales force management is the analysis, planning,
implementation, and control of sales force activities.
Figure 16.1 Major Steps in Sales Force Management

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Managing the Sales Force (2 of 14)
Designing Sales Force Strategy and Structure
• Territorial sales force
structure
• Product sales force structure
• Customer sales force
structure

Customer sales force structure:

Vorwerk’s Kobold sales team
consists of thousands of people dpa picture alliance archive/Alamy Stock Photo

who are assigned to fixed areas

to build personal relationships
with customers.

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Managing the Sales Force (3 of 14)
Designing Sales Force Strategy and Structure
Territorial sales force structure: each salesperson is
assigned an exclusive geographic area and sells the
company’s full line of products and services to all customers
in that territory.
• Defines salesperson’s job
• Fixes accountability
• Lowers sales expenses
• Improves relationship building and selling effectiveness

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Managing the Sales Force (4 of 14)
Designing Sales Force Strategy and Structure
Product sales force structure: each salesperson sells
along product lines.
• Improves product knowledge
• Can lead to territorial conflicts

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Managing the Sales Force (5 of 14)
Designing Sales Force Strategy and Structure
Customer sales force structure: each salesperson sells
along customer or industry lines.
• Improves customer relationships

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Managing the Sales Force (6 of 14)
Designing Sales Force Strategy and Structure
Sales Force Size
• Salespeople are one of the company’s most productive
and expensive assets.
• Workload approach to sales force size refers to grouping
accounts into different classes to determine the number of
salespeople needed.

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Managing the Sales Force (7 of 14)
Designing Sales Force Strategy and Structure
• Outside sales force (field sales force) are salespeople who
travel to call on customers in the field.
• Inside sales force are salespeople who conduct business from
interactions, or visits from prospective buyers.
• Team selling involves using teams of people from sales,
marketing, engineering, finance, technical support, and even
upper management to service large, complex accounts via
telephone, online and social media.
The lines have blurred between
outside and inside selling, creating
a new breed of “hybrid sales reps”
who often work virtually when
connecting with customers.
fizkes/Shutterstock
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Managing the Sales Force (8 of 14)
Recruiting and Selecting Salespeople
• Careful selection and training increases sales
performance.
• Poor selection increases recruiting and training costs,
leads to lost sales, and disrupts customer relationships.
Great salespeople: The best
salespeople possess intrinsic
motivation, a disciplined work
style, the ability to close a
sale, and, perhaps most
important, the ability to build
relationships with customers.
fizkes/Shutterstock

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Managing the Sales Force (9 of 14)
Training Salespeople
• Goals of training
– Customer knowledge
– Selling process
– Knowledge of products, company, competitors

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Managing the Sales Force (10 of 14)
Compensating Salespeople
• Fixed amounts
• Variable amounts
• Expenses
• Fringe benefits
Sales force compensation: A
good compensation plan both ESB Professional/Shutterstock

motivates salespeople and

directs their activities.

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Managing the Sales Force (11 of 14)
Supervising Salespeople Sales force automation: To help
• The goal of supervision is to salespeople work more efficiently
help salespeople work smart by and effectively anytime, anywhere,
doing the right things in the right companies routinely equip their
ways. salespeople with laptops or tablets,
smartphones, videoconferencing
• Sales force automation systems
technologies, and customer
are computerized, digitized
relationship management software.
sales force operations that let
salespeople work more
effectively anytime, anywhere.

kantver/123RF
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Managing the Sales Force (12 of 14)
Motivating Salespeople
• Sales morale and performance can be increased through
– Organizational climate
– Sales quotas
– Positive incentives
• Sales quotas are standards stating the amount
salespeople should sell and how sales should be divided
among the company’s products.

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Managing the Sales Force (13 of 14)
Evaluating Salespeople and Sales Force Performance
• Sales reports
• Call reports
• Expense reports

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Managing the Sales Force (14 of 14)
Social Selling: Online, Mobile, and Social Media Tools
• Social selling is the use of
online, mobile, and social media Social selling: In platforms such as
to engage customers, build The Health Bank, sales and
stronger customer relationships, management takes place online
and augment sales performance. through a customer’s personal
• Digital technologies can make liaison.
salespeople more productive
and effective.

Andriy Popov/123RF
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Learning Objective 3
Discuss the personal selling process, distinguishing between
transaction-oriented marketing and relationship marketing.

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The Personal Selling Process (1 of 7)
Figure 16.2 Steps in the Selling Process

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The Personal Selling Process (2 of 7)
Steps in the Personal Selling Process
Prospecting identifies qualified potential customers through
referrals from:
• Customers
• Suppliers
• Dealers
• Internet

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The Personal Selling Process (3 of 7)
Steps in the Personal Selling Process
Preapproach is the process of learning as much as possible
about a prospect, including needs, who is involved in the
buying, and the characteristics and styles of the buyers.
• Objectives
– Qualify the prospect
– Gather information
– Make an immediate sale
• Approaches
– Personal visit
– Phone call
– Letter/email
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The Personal Selling Process (4 of 7)
Steps in the Personal Selling Process
Approach is the process where the salesperson meets and
greets the buyer and gets the relationship off to a good start
and involves the salesperson’s:
• Appearance
• Opening lines
• Follow-up remarks

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The Personal Selling Process (5 of 7)
Steps in the Personal Great salespeople know how
Selling Process to sell, but more important,
Presentation is when the they know how to listen and
salesperson tells the product build strong customer
story to the buyer, presenting relationships.
customer benefits, and
showing how the product
solves the customer’s
problems.

coffeehuman/Shutterstock

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The Personal Selling Process (6 of 7)
Steps in the Personal Selling Process
Handling objections is the process where salespeople
resolve problems that are logical, psychological, or
unspoken.
Closing is the process where salespeople should recognize
signals from the buyer—including physical actions,
comments, and questions—to ask for a order and finalize the
sale.

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Discussion Question (1 of 2)
How should a salesperson handle objections?

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The Personal Selling Process (7 of 7)
Steps in the Personal Selling Process
Follow-up is the last step in which the salesperson follows
up after the sale to ensure customer satisfaction and repeat
business.

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Personal Selling and Managing
Customer Relationships
Personal selling is transaction-
oriented to close a specific sale
with a specific customer.
The long-term goal of personal
selling is to develop a mutually
profitable relationship.
Value selling: Sales
management’s challenge is to
transform salespeople from
customer advocates for price almagami/123RF

cuts into company advocates for

value.

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Learning Objective 4
Explain how sales promotion campaigns are developed and
implemented.

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Sales Promotion (1 of 9)
• Sales promotion refers to the short-term incentives to
encourage purchases or sales of a product or service
now.
Sales promotions are found
everywhere. For example,
stores at your local mall are
peppered with signs
announcing special sales.

Gary Armstrong

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Sales Promotion (2 of 9)
Rapid Growth of Sales Promotion
• Product managers are under pressure to increase current
sales.
• Companies face more competition.
• Competing brands offer less differentiation.
• Advertising efficiency has declined due to rising costs,
clutter, and legal constraints.
• Consumers have become more deal-oriented.

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Sales Promotion (3 of 9)
Sales Promotion Objectives
Setting sales promotion objectives includes using:
• Consumer promotions
• Trade promotions
• Business promotions
• Sales force promotions
Frequency marketing programs:
Uber Rewards builds loyalty and
purchasing through added value
rather than discounted prices. The
more members use Uber, the
more they benefit, with perks such
as locked-in pricing, priority airport
pickups, access to highly rated
drivers, and complimentary
upgrades at no extra cost. Uber

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Sales Promotion (4 of 9)
Major Sales Promotion Tools Consumer samples can be a
Samples offer a trial amount of powerful tool. Ben & Jerry’s Free
a product. Cone Day thanks customers for
Coupons are certificates that being “so uniquely awesome”
give buyers a saving when they and also generates tons of buzz
purchase specified products. and draws new customers into
Rebates are similar to coupons its scoop shops.
except that the price reduction
occurs after the purchase.
Price packs offer consumers
savings off the regular price of a
product.

Helen H. Richardson/Denver Post/Getty Images

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Sales Promotion (5 of 9)
Major Sales Promotion Tools
Premiums are goods offered either for free or at a low price.
Advertising specialties are useful articles imprinted with
the advertiser’s name, logo, or message that are given as
gifts to consumers.
Point-of-purchase promotions include displays and
demonstrations that take place at the point of sale.

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Sales Promotion (6 of 9)
Major Sales Promotion Tools
Contests, sweepstakes, and games give consumers the
chance to win something—such as cash, trips, or goods—by
luck or through extra effort.
• Contests require an entry by a consumer.
• Sweepstakes require consumers to submit their names for
a drawing.
• Games present consumers with something that may or
may not help them win a prize.
Event marketing or event sponsorship is creating a
brand-marketing event or serving as a sole or participating
sponsor of events created by others.

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Sales Promotion (7 of 9)
Major Tools for Trade
Promotions
• Discount
• Allowance
• Free goods
Mi Pan/Shutterstock
• Specialty advertising
Event marketing: Red Bull has
turned event marketing into a
science. It hosts hundreds of
events each year designed to
bring the high-octane world of
Red Bull to its community of
enthusiasts.

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Sales Promotion (8 of 9)
Major Sales Promotion Tools for Business Customers
Conventions and trade shows are effective to reach many
customers not reached with the regular sales force.
Sales contests are effective in motivating salespeople or dealers
to increase performance over a given period.
Event marketing: House of Vans
events draw thousands of Vans
brand fans who gather to
celebrate their common interests
in action sports, live music, art,
and street culture while
presenting opportunities to
showcase new Vans products to
Richard Milnes/Alamy Stock Photo; Jeff Saunders Travel
the delight of both the brand and Stock/Alamy Stock Photo

its fans.
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Sales Promotion (9 of 9)
Developing the Sales Promotion Program
• Size of the incentive
• Conditions for participation
• Promotion and distribution of the program
• Length of the program
• Evaluation of the program

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Discussion Question (2 of 2)
Describe the fastest-growing sales trend—social and virtual
selling.

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Principles of Marketing
Nineteenth Edition, Global Edition

Chapter 17
Digital Marketing

Lecturer: Dr. David Wang Dapeng

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Learning Objectives
17.1 Define digital marketing and discuss its rapid growth
and benefits to customers and companies.
17.2 Discuss the consumer and market research required to
design an effective digital marketing campaign.
17.3 Discuss the different digital channels and media and
explain how companies employ them to create an
omni-channel marketing strategy
17.4 Identify and discuss the public policy issues presented
by digital marketing.

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MOONSWATCH: Countdown to a
Hype-Fueled Launch
Fashion and lifestyle were
already established aspects
of their branding, but by
collaborating with Omega
and launching a viral digital
campaign, MoonSwatch
offered buyers accessible
luxury. The MoonSwatch
dennizn/Alamy Stock Photo
revived a flagging industry
with an explosive internet
campaign.

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The Digital Marketing Process
Figure 17.1 The Digital Marketing Process

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Learning Objective 1
Define digital marketing and discuss its rapid growth and
benefits to customers and companies.

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Understanding Digital Marketing
(1 of 4)
Digital marketing
The use of technology-intensive platforms such as the
internet, mobile networks and devices, and social media to
engage directly with carefully targeted individual consumers,
consumer communities, and businesses.

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Understanding Digital Marketing
(2 of 4)
The New Digital Marketing Model
Digital marketing serves as a complete business model.
Digital and direct to consumer marketing as a business model:
Online travel company Expedia Group has successfully built its
entire approach around digital marketing. Its [Link] unit
and the famous Roaming Gnome make it easy for customers to
“Wander Wisely.”

Travelocity
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Understanding Digital Marketing
(3 of 4)
Benefits of Digital Marketing Digital real-time marketing:
to Buyers and Sellers Fast-food marketer Wendy’s is
• Convenience known for its skillful use of
social media to spark an
• Buyers benefit from
ongoing real-time dialogue with
increased
the brand’s fans.
• price competition
• Brand engagement and
community
• Interactive and immediate

Deutschlandreform/Shutterstock; Gary Armstrong

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Understanding Digital Marketing
(4 of 4)
Benefits of Digital Marketing—Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels
• Opportunities for real-time marketing
• Linking brands to important moments and trending events

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Learning Objective 2
Discuss the consumer and market research required to
design an effective digital marketing campaign.

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Preparing for a Digital Marketing
Campaign (1 of 3)
Knowing the Digital Consumer Figure 17.2 A Digital Consumer
Digital consumer personas— Persona
detailed, nuanced, and tangible
representations of prototypical
consumers to be targeted by the
digital campaign.

javi_indy/Shutterstock

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Preparing for a Digital Marketing
Campaign (2 of 3)
Understanding Consumer Omni-Channel Navigation Behavior
Consumer omni-channel navigation behavior
The consumer’s use of multiple marketing channels, both digital
and nondigital, across stages of the consumer buying decision
process.
Omni-channel navigation
behavior: To effectively market
to consumers with the right
marketing content at the right
place and time, marketers must
understand which channels
consumers are using at each
stage of the customer journey. Milkovasa/Shutterstock

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Preparing for a Digital Marketing
Campaign (3 of 3)
Using Experimentation to Understand What Works
With online and mobile media, marketers can quickly and easily
manipulate treatments across customer groups with readily
measurable results.
Digital marketing is very friendly
to experimentation. Netflix
constantly uses A/B testing to
assess the effectiveness of
different online presentation
formats across user segments.

sitthiphong/Shutterstock

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Learning Objective 3
Discuss the different digital channels and media and explain
how companies employ them to create an omni-channel
marketing strategy.

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Employing Digital Channels in an
Omni-Channel Strategy (1 of 4)
Online Marketing
Online marketing is marketing via the internet using
company websites, online ads and promotions, email, online
video, and blogs.
Marketing Websites engage consumers to move them
closer to a direct purchase or other marketing outcome.
Branded Community Websites present brand content that
engages consumers and creates customer community
around a brand.

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Employing Digital Channels in an
Omni-Channel Strategy (2 of 4)
Online Marketing
Online advertising is advertising that appears while consumers
are browsing online and includes display ads, search-related ads,
online classifieds, and other forms.
• Online display ads are digital ads that appear anywhere on an
internet or mobile user’s screen and are often related to the
information being viewed.
• Search-related advertising Text- and image-based ads and
links that appear atop or alongside search engine results on
sites such as Google, Yahoo!, and Bing.
Email marketing involves sending highly targeted, highly
personalized, relationship-building marketing messages via email.
Spam is unsolicited, unwanted commercial email messages.
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Employing Digital Channels in an
Omni-Channel Strategy (3 of 4)
Online Marketing
Online video marketing involves posting digital video content on
brand websites or social media sites such as YouTube, Facebook,
and others.
Viral marketing is the digital version of word-of-mouth marketing:
videos, ads, and other marketing content that are so infectious
that customers will seek them out and pass them along to friends.
Viral marketing: Many marketers
work to create videos, ads, and
other marketing content that are
so infectious that customers will
seek them out and pass them
along to their friends.
Rido/Shutterstock
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Employing Digital Channels in an
Omni-Channel Strategy (4 of 4)
Online Marketing
Blogs are online journals where people and companies post
their thoughts and other content, usually related to narrowly
defined topics.
Company blogs: Rather than
promoting products and sales,
Patagonia’s blog, The
Cleanest Line, shares stories
about the environment, tells
where the company stands on
key issues, and spreads the
brand’s “save our home Courtesy of Patagonia

planet” message.
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Social Media Marketing (1 of 4)
Social media: Independent and commercial online social networks
where people congregate to socialize and share messages, opinions,
pictures, videos, and other content
Social Media Marketing Advantages
• Targeted and personal
• Interactive
• Immediate and timely
• Cost effective
• Engagement and social sharing
capabilities
JetBlue is legendary for the speed
and quality of its social media
responses. Its social media team
actively monitors Twitter, Facebook,
and Instagram interactions, usually
JetBlue
responding within minutes.
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Social Media Marketing (2 of 4)
Image and Video Platforms Using social media: Starbucks uses
Messaging Platforms creative Instagram Stories to
Blogs/Microblogs immerse Instagrammers in brand-
related videos and photos on
Location Platforms
everything from menu tips,
Wikis explaining the basics of espresso,
Reviews and Ratings Platforms and its stand on social issues to
Livestreaming Platforms teaching people how to ask for their
Metaverse Platforms favorite menu items.

Jaap Arriens/NurPhoto via Getty Images

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Social Media Marketing (3 of 4)
Metaverse Platforms The metaverse is in its infancy but
growing explosively. It seems like almost every big brand is
diving in with immersive metaverse spaces and experiences
that foster strong engagement and a sense of community
among brand fans.

Lightspring/Shutterstock

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Social Media Marketing (4 of 4)
Social Media Marketing Challenges:
• User controlled
• Brands need to earn the right to be there
• Even a seemingly harmless social media campaign can
backfire

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Mobile Marketing
Mobile marketing delivers messages, promotions, and other
content to on-the-go consumers through mobile phones,
smartphones, tablets, and other mobile devices.
For consumers, a smartphone or tablet can be a handy shopping
companion. As a result, mobile advertising spending is surging.
Mobile marketing: TripAdvisor’s
mobile app—“your ultimate
travel companion”—gives users
as-they-travel access to crowd-
sourced information about
hotels, restaurants, places to
go, and things to see worldwide.
And booking options are always
just a tap away.
BigTunaOnline/Shutterstock

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Discussion Question (1 of 2)
Why has mobile marketing expanded?

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Creating an Integrated Omni-Channel
Strategy (1 of 2)
Omni-channel marketing: Creating a seamless cross-
channel buying experience that integrates in-store, online,
and mobile shopping.
Omni-channel strategies:
Home Depot adopted what it
calls a “One Home Depot”
strategy designed to create
“an interconnected,
frictionless shopping
experience that enables our
customers to seamlessly THE HOME DEPOT name and logo are trademarks of
blend the digital and physical Home Depot Product Authority, LLC, used under license.

worlds.”
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Creating an Integrated Omni-Channel
Strategy (2 of 2)
Overcoming the Challenges to Omni-Channel Marketing
Aligning Omni-Channel Marketing and the Overall Business
Model
Aligning Organizational Incentives and Structures
Aligning the Marketing Mix

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Learning Objective 4
Identify and discuss the public policy issues presented by
digital marketing.

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Public Policy Issues in Digital
Marketing (1 of 4)
• Irritation includes annoying and offending customers.
• Unfairness includes taking unfair advantage of impulsive
or less-sophisticated buyers.
• Deception includes “heat merchants” who design mailers
and write copy designed to mislead consumers.
• Fraud includes identity theft and financial scams.
• Consumer privacy involves concerns that marketers may
have too much information and use it to take unfair
advantage.

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Public Policy Issues in Digital
Marketing (2 of 4)
Consumer Privacy
Consumer privacy: Critics
worry that marketers who
know too much about
consumers’ lives may exploit
them. Consider what Google,
Facebook, Amazon, and
other companies alone likely T Y Lim/Shutterstock
know about their customers
and account holders.

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Public Policy Issues in Digital
Marketing (3 of 4)
Irritation Deception and
Fraud
Consumer privacy: The ad
industry has issued a set of
online and mobile advertising
principles through the Digital
Advertising Alliance that call
for digital marketers to provide
transparency and choice to
consumers if online data are
collected or used for targeting
interest-based advertising. Sam72/Shutterstock; Eyal Dayan Photography

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Public Policy Issues in Digital
Marketing (4 of 4)
Data Integrity and Security
Antitrust Concerns
A Need for Action
• General Data Protection Regulation (GDPR)
• Children’s Online Privacy Protection Act (COPPA)

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Discussion Question (2 of 2)
What are the concerns related to digital marketing?

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