Chapter Fourteen Communicating Customer Value: Integrated Marketing

Communications Strategy

1. The promotion mix.

The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-
marketing tools that the company uses to persuasively communicate customer value and build customer
relationships. The five major promotion tools are defined as follows:

 Advertising: is any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor

• Broadcast • Print • Internet • Outdoor

 Sales promotion: is the short-term incentive to encourage the purchase or sale of a product or
service

• Discounts • Coupons • Displays • Demonstrations

 Public relations (PR): 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

• Press releases • Sponsorships • Special events • Web pages

 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

 Direct and digital marketing: involves making direct connections with carefully targeted
individual consumers to both obtain an immediate response and cultivate lasting customer
relationships-through the use of direct mail, telephone, direct-response television, e-mail, and the
Internet to communicate directly with specific consumers

• Catalog • Telemarketing • Kiosks

2. Integrated Marketing Communications

 The New Marketing Communications Model
o Changing
o Consumers are better informed
o More communication
o Less mass marketing
o Changing communications technology

3. The Need for Integrated Marketing Communications

  Integrated marketing communications is the integration by the company of its communication
channels to deliver a clear, consistent, and compelling message about the organization and its
brands.

4. The Communication Process

The communication process is a series of steps involved in the transmission of information from a
sender to a receiver. It involves senders, encoding, message, media, decoding, receiver, response
feedback, and noise.

+ Senders - is the individual who passes on the message. The communication cycle starts quickly when
the thoughts comes in the psyche of the sender.

+ Encoding - The sender begins the process by encoding their message into a form that can be
transmitted. This may involve using words, symbols, gestures, or other forms of communication. The
sender must ensure that the message is encoded in a way that is clear and unambiguous, so that the
receiver can understand it.

+ Media - Once the message is encoded, it is transmitted through a channel to the receiver. The channel
can be any medium that allows for the transmission of information, such as speech, writing, email, or
telephone. The sender must choose a channel that is appropriate for the message and the receiver.

+ Decoding - Decoding is the process of interpreting and understanding a message that has been sent by a
sender.

 Decoding can be a challenging task, as the receiver must not only understand the words or
symbols used, but also the sender's intent and any underlying cultural or social cues. However, it
is an essential part of the communication process, as it allows the receiver to understand the
sender's message.

+ Receiver - The receiver is the person who receives a message. The receiver's role in the communication
process is to decode the message and provide feedback to the sender.

 Providing feedback to the sender is an important part of the receiver's role. Feedback allows the
sender to know whether or not the receiver has understood the message. Feedback can be verbal
or nonverbal, and it can be given immediately or after a delay.

+ Response - A response is a reaction to a message. It can be verbal or nonverbal, and it can be given
immediately or after a delay.

+ Feedback - Feedback is an essential part of the communication process. It allows the sender to know
whether or not the receiver has understood the message. Feedback can be verbal or nonverbal, and it can
be given immediately or after a delay.

+ Noise - Noise is any interference that distorts or disrupts the communication process. It can be caused
by a variety of factors, such as physical barriers, language barriers, or cultural differences.

Noise can make it difficult for the receiver to understand the message, and it can lead to
misunderstandings.
Examples:

Definitions of these elements follow and are applied to a McDonald’s “i’m lovin’ it” television
commercial.

• Sender: The party sending the message to another party-here, McDonald’s.

• Encoding: The process of putting thought into symbolic form-for example, McDonald’s ad agency
assembles words, sounds, and illustrations into a TV advertisement that will convey the intended
message.

• Message: The set of symbols that the sender transmits-the actual McDonald’s ad.

• Media: The communication channels through which the message moves from the sender to the receiver-
in this case, television and the specific television programs that McDonald’s selects.

• Decoding: The process by which the receiver assigns meaning to the symbols encoded by the sender-a
consumer watches the McDonald’s commercial and interprets the words and images it contains.

• Receiver: The party receiving the message sent by another party-the customer who watches the
McDonald’s ad.

• Response: The reactions of the receiver after being exposed to the message-any of hundreds of possible
responses, such as the consumer likes McDonald’s better, is more likely to eat at McDonald’s next time,
hums the “i’m lovin’ it” jingle, or does nothing.

• Feedback: The part of the receiver’s response communicated back to the sender-McDonald’s research
shows that consumers are either struck by and remember the ad or they email or call McDonald’s,
praising or criticizing the ad or its products.

• Noise: The unplanned static or distortion during the communication process, which results in the
receiver getting a different message than the one the sender sent-the consumer is distracted while
watching the commercial and misses its key points

5. Steps in Developing Effective Marketing Communication

a. Identify the target audience

The first step in developing effective marketing communication is to identify your target audience. This
involves understanding who you are trying to reach with your message. You need to consider their
demographics, interests, needs, and pain points. Once you know who your target audience is, you can
tailor your messaging to resonate with them more effectively.

b. Determine the communication objectives

Once the target audience has been defined, marketers must determine the desired response. Of course, in
many cases, they will seek a purchase response. But purchase may result only after a lengthy consumer
decision-making process. The marketing communicator needs to know where the target audience now
stands and to what stage it needs to be moved. The target audience may be in any of six buyer-readiness
stages, the stages consumers normally pass through on their way to making a purchase. These stages are
awareness, knowledge, liking, preference, conviction, and purchase
 c. Design the message (AIDA Model)
 Get Attention
 Hold Interest
 Arouse Desire
 Obtain Action

Message Content: The marketer has to figure out an appeal or theme that will produce the desired
response. There are three types of appeals: rational, emotional, and moral. Rational appeals relate to the
audience’s self-interest. They show that the product will produce the desired benefits. Examples are
messages showing a product’s quality, economy, value, or performance

 Rational appeal: relates to the audience’s self-interest

 Emotional appeal: ís an attempt to stir up positive or negative emotions to motivate a purchase
 Moral appeal: is directed at the audience’s sense of right and proper

Message Format: The marketing communicator also needs a strong format for the message. In a print ad,
the communicator has to decide on the headline, copy, illustration, and colors. To attract attention,
advertisers can use novelty and contrast; eye-catching pictures and headlines; distinctive formats;
message size and position; and color, shape, and movement

Message Structure: Marketers must also decide how to handle three message structure issues. The first
is whether to draw a conclusion or leave it to the audience. Research suggests that, in many cases, rather
than drawing a conclusion, the advertiser is better off asking questions and letting buyers come to their
own conclusions. The second message structure issue is whether to present the strongest arguments first
or last. Presenting them first gets strong attention but may lead to an anticlimactic ending

d. Choose the media

The communicator must now select the channels of communication. There are two broad types of
communication channels: personal and nonpersonal

In personal communication channels, two or more people communicate directly with each other. They
might communicate face-to face, on the phone, via mail or email, or even through texting or an internet
chat. Personal communication channels are effective because they allow for personal addressing and
feedback. Some personal communication channels are controlled directly by the company.

+ Opinion leaders are people within a reference group who, because of their special skills, knowledge,
personality, or other characteristics, exerts social influence on others. (create opinion leaders for their
brands-people whose opinions are sought by others-by supplying influencers with the product on
attractive terms or by educating them so that they can inform others)

+ Buzz marketing involves cultivating opinion leaders and getting them to spread information about a
product or service to others in their communities.

Buzz marketing is a marketing strategy that aims to generate excitement and interest in a product or
service by creating word-of-mouth and social media buzz. It is a form of viral marketing that seeks to
create a positive and contagious conversation about a product or service, leading to increased brand
awareness, customer engagement, and ultimately, sales.
Buzz marketing can be used to launch new products, promote special events, or simply boost brand
awareness. It is important to note that buzz marketing can be both positive and negative. If a product or
service is poorly received, the buzz can be negative and damage the brand's reputation.

Key elements of buzz marketing:

 Create something newsworthy or interesting
 Make it easy for people to share
 Track and measure results

Benefits of buzz marketing:

 Increased brand awareness
 Improved customer engagement
 Boosted sales

Challenges of buzz marketing:

 Difficult to control
 Can be negative
 Requires careful planning

+ Nonpersonal communication channels are those that do not involve direct interaction between the
sender and the receiver. Instead, the sender transmits a message through a medium, such as print,
broadcast, or digital media. Nonpersonal communication channels are typically used to reach a large
audience with a one-way message.

There are main types of nonpersonal communication channels:

+ Mass media: Mass media refers to channels that can reach a large audience at once. Examples of mass
media include television, radio, newspapers, magazines, and billboards.

+ Direct marketing: Direct marketing involves sending messages to specific individuals or groups of
people. Examples of direct marketing include email, direct mail, and telemarketing.

+ Atmospheres: are designed environments that create or reinforce the buyer’s leanings toward buying a
product.

Nonpersonal communication channels have several advantages over personal communication channels.
They are typically more cost-effective, as they can reach a large audience for a relatively low cost. They
are also more efficient, as they can be used to deliver a message to a large number of people quickly and
easily. Additionally, nonpersonal communication channels can be more persuasive, as they can be used to
create a professional and polished image for a company or product.

However, nonpersonal communication channels also have some disadvantages. They can be less effective
at building relationships with customers or prospects, as they do not allow for two-way communication.
Additionally, nonpersonal communication channels can be more easily ignored or overlooked by
recipients.

Advantages Disadvantages

Cost-effective Less effective at building relationships

Efficient Can be easily ignored or overlooked

 Can be persuasive Difficult to control the message

Can reach a large audience Can be impersonal

 In conclusion, nonpersonal communication channels are a valuable tool for businesses of all
sizes. They can be used to reach a large audience with a one-way message, and they can be more
cost-effective and efficient than personal communication channels. However, it is important to
use nonpersonal communication channels carefully and to be aware of their potential
disadvantages.

There are many different media channels that you can use to reach your target audience. Some of the most
common channels include:
 Social media: Social media platforms such as Facebook, Instagram, Twitter, and LinkedIn can be
a great way to connect with your target audience and share your message.
 Email marketing: Email marketing is a cost-effective way to reach a large audience with
personalized messages.
 Search engine optimization (SEO): SEO can help your website rank higher in search engine
results pages (SERPs), making it more likely that your target audience will find you.
 Content marketing: Content marketing involves creating and sharing valuable content that will
attract and engage your target audience.
 Pay-per-click (PPC) advertising: PPC advertising allows you to pay for your ads to appear at
the top of search results or on other websites.
 Traditional advertising: Traditional advertising methods such as television, radio, and print can
still be effective in reaching certain audiences.

e. Select the message source:

The message source is the person or entity that will deliver your message to your target audience. This
could be a company spokesperson, a celebrity endorser, or an expert in your field. The message source
should be someone who is credible and trustworthy, and who resonates with your target audience.

Examples:

Let's say you are a company that sells a new type of fitness tracker. Your target audience is young, health-
conscious adults. You want to increase brand awareness and generate leads for your product. You decide
to use social media and email marketing to reach your target audience. You create a series of social media
posts that highlight the benefits of your product and use a call to action to encourage people to visit your
website. You also send out an email newsletter to your subscribers with a special offer on your product.

f. Collecting Feedback:

After sending the message or other brand content, the communicator must research its effect on the target
audience. This involves asking target audience members whether they remember the content, how many
times they saw it, what points they recall, how they felt about the content, and their past and present
attitudes toward the brand and company. The communicator would also like to measure behavior
resulting from the content-how many people bought the product, talked to others about it, or visited the
store.

6. Setting the total promotion budget: Four Common Methods

Here's a breakdown of four common methods:

1. Affordable Budget Method

The affordable budget method is a straightforward approach that sets the promotion budget based
on what the company can comfortably afford. This method is often used by startups or businesses
with limited financial resources. While it aligns promotional spending with financial constraints,
it may not adequately support ambitious marketing goals.

Advantages:

 Simple and easy to implement

 Aligns promotional spending with financial resources

Disadvantages:

 May not support ambitious marketing objectives

 Ignores market conditions and competitive pressures

2. Percentage of Sales Method

The percentage of sales method sets the promotion budget as a fixed percentage of projected or past sales.
This method is common in industries with established sales trends and predictable revenue streams. It
ensures that promotional spending scales with the company's growth, but it may not account for changes
in market conditions or competitive pressures.

Advantages:
 Automatically adjusts promotional spending with sales growth
 Aligns promotional efforts with revenue generation
 Easy to use and helps management think about the relationship between promotion, selling price,
and profit per unit

Disadvantages:
 May not reflect changes in market dynamics
 Ignores competitive benchmarking
 Wrongly views sales as the cause rather than the result of promotion

3. Competitive-Parity Method

The competitive-parity method involves benchmarking the promotion budget against that of competitors
in the industry. This approach aims to maintain a level of promotional spending that is comparable to
industry standards, ensuring that the company remains visible and competitive. However, it may not
reflect the company's unique marketing needs or objectives.

Advantages:
 Maintains competitive visibility in the industry
 Aligns promotional spending with industry norms
Disadvantages:
 Ignores company-specific marketing goals
 May not be suitable for differentiation strategies

4. Objective-and-Task Method

The most logical budget-setting method is the objective-and-task method, whereby the company sets its
promotion budget based on what it wants to accomplish with promotion. This budgeting method entails
(1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives,
and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion
budget

This method ensures that the budget is aligned with the company's strategic goals, but it requires careful
planning and analysis.

Advantages:
 Aligns promotional spending with strategic objectives
 Ensures that resources are allocated effectively

Disadvantages:
 Requires detailed planning and analysis
 May be more complex to implement

7. Shaping the Overall Promotion Mix The Nature of Each Promotion Tool
+ Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it
enables the seller to repeat a message many times.

Here are some of the specific benefits of advertising:

 Reach: Advertising can reach a large audience of potential customers, even those who are not
actively looking for a product or service.
 Frequency: Advertising can be repeated many times, which can help to increase brand awareness
and recall.
 Control: Advertisers have a great deal of control over the message that is being communicated,
the audience that is being reached, and the budget that is being spent.
 Measurability: The effectiveness of advertising can be measured, which allows advertisers to
track their return on investment (ROI).

Of course, there are also some drawbacks to advertising. For example, advertising can be expensive, and
it can be difficult to create effective advertising campaigns that resonate with consumers. Additionally,
advertising can be met with resistance from consumers, who may view it

Here are some tips for creating effective advertising campaigns:

 Define your target audience
 Develop a clear message
 Choose the right media
 Create compelling creative
 Track your results.
+ 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 which
can help to:

 Identify the buyer's needs and wants, Build trust and rapport, Address objections and concerns,
Close the sale.

Personal selling is most effective in the following stages of the buying process:

 Need recognition, Information search, Evaluation of alternatives, Purchase decision

Personal selling is also a valuable tool for building long-term customer relationships. This is because
personal selling can help to:

 Understand the customer's business, Build trust and rapport, Provide ongoing support, Anticipate
future needs

By building strong customer relationships, businesses can increase customer loyalty, retention, and
lifetime value.

+ Sales promotion is a marketing strategy that uses short-term incentives to stimulate sales and increase
brand awareness. It includes a wide variety of tactics, such as coupons, contests, cents-off deals, and
premiums. Sales promotions can be used to introduce new products, clear out inventory, or simply boost
sagging sales.

Here are some of the benefits of sales promotions: Increased sales, Increased brand awareness, Improved
customer engagement, Clearance of excess inventory (giải phóng hàng tồn kho dư thừa)

Here are some examples of sales promotions: Coupons, Contests, Cents-off deals, Premiums (Phiếu giảm
giá, Cuộc thi, Ưu đãi giảm xu, Phí bảo hiểm)

Here are some tips for using sales promotions effectively: Define your goals, Choose the right type of
promotion, Set a budget, Track your results

+ Public relations (PR) is a form of marketing that involves managing the brand's reputation and
building relationships with the media and the public. It can be a very effective way to promote a product
or service, as it is based on credibility and trust.

Public relations is very believable-news stories, features, sponsorships, and events seem more real and
believable to readers than ads do. PR can also reach many prospects who avoid salespeople and
advertisements-the message gets to buyers as “news and events” rather than as a sales-directed
communication.

Here are some of the benefits of public relations: Credibility(sự uy tín), Reach (phạm vi tiếp cận),
Relationships, Thought leadership (Public relations can help to position a brand or organization as a
thought leader in its industry. This can lead to increased brand awareness and reputation)

Here are some of the most common PR activities: News releases, Feature stories, Sponsorships, Events:
Here are some tips for using public relations effectively: Develop a clear PR strategy, Build relationships
with the media, Create newsworthy content, Measure results

+ Direct marketing is a form of marketing that communicates directly with potential customers to
generate a response or transaction. It is a non-public form of marketing, meaning it does not rely on mass
media channels like television or radio to reach a large audience. Instead, direct marketing targets specific
individuals or groups of people with personalized messages.

Key characteristics of direct marketing: Non-public, Immediate, Customized (direct marketing messages
are tailored to the specific needs and interests of the recipient), Interactive (direct marketing encourages
two-way communication between the sender and the recipient)

Common direct marketing channels: Direct mail (This involves sending physical mail, such as letters,
brochures, or catalogs, to potential customers), Catalogs (These are printed or online publications that
showcase a variety of products and their prices, allowing customers to browse and make informed
decisions), Telemarketing, Online marketing (email marketing, social media marketing, and search engine
marketing, to reach and engage potential customers)

Benefits of direct marketing: Targeted reach, Measurable results, Cost-effective, Personalized

communication

Challenges of direct marketing: Permission-based communication, Response rates, Data management

(requires careful management of customer data to ensure accuracy and personalization), Compliance with
regulations (Direct marketing must comply with various regulations, such as anti-spam laws and
telemarketing restrictions)

Overall, direct marketing remains a valuable tool for businesses of all sizes to connect with potential
customers, generate leads, and drive sales.

Promotion Mix Strategies

A promotion mix is a combination of promotional tools that a company uses to communicate with its
target audience. The six key promotional tools used in the communications mix are advertising, personal
selling, sales promotions, public relations, direct marketing, and digital marketing.

+ Advertising is a paid form of non-personal communication that uses mass media to promote a product,
service, or idea to a wide audience. Advertising can be used to build brand awareness, generate leads, and
drive sales.

+ Personal selling is a face-to-face interaction between a salesperson and a customer, where the
salesperson attempts to persuade the customer to buy a product or service. Personal selling can be an
effective tool for building relationships with customers and closing sales.

+ Sales promotions are short-term incentives that are used to stimulate sales and increase brand
awareness. Sales promotions can include coupons, contests, cents-off deals, and premiums.

+ Public relations is a form of marketing that manages the brand's reputation and builds relationships
with the media and the public. Public relations can be used to generate positive publicity for a company or
product, and to build trust with consumers.
+ Direct marketing is a form of non-public communication that uses direct channels to reach specific
individuals or groups of people. Direct marketing can include direct mail, telemarketing, and email
marketing.

+ Digital marketing is the use of digital channels, such as the internet and mobile devices, to promote a
product, service, or idea. Digital marketing can include search engine marketing, social media marketing,
and email marketing.

The promotion mix that a company uses will vary depending on a number of factors, including the
company's target audience, its marketing goals, and its budget.

Here are some examples of effective promotion mix strategies:

 A company that is targeting a new market might use a combination of advertising and public
relations to generate awareness of its product or service.
 A company that is trying to clear out inventory might use a combination of sales promotions and
direct marketing to reach consumers.
 A company that is trying to build relationships with its customers might use a combination of
personal selling and public relations to create a positive brand image.

The key to developing an effective promotion mix is to understand the needs and wants of the target
audience and to use a mix of promotional tools that will reach them effectively.

Here are some tips for developing a promotion mix: Define your target audience, Set your marketing
goals, Choose the right promotional tools, Set a budget, Track your results

Integrating the promotion mix

Having set the promotion budget and mix, the company must now take steps to see that each promotion
mix element is smoothly integrated. Guided by the company’s overall communications strategy, the
various promotion elements should work together to carry the firm’s unique brand messages and selling
points. Integrating the promotion mix starts with customers. Whether it’s advertising, personal selling,
sales promotion, public relations, or digital and direct marketing, communications at each customer touch
point must deliver consistent marketing content and positioning. An integrated promotion mix ensures
that communications efforts occur when, where, and how customers need them. To achieve an integrated
promotion mix, all of the firm’s functions must cooperate to jointly plan communications efforts. Many
companies even include customers, suppliers, and other stakeholders at various stages of communications
planning. Scattered or disjointed promotional activities across the company can result in diluted
marketing communications impact and confused positioning. By contrast, an integrated promotion mix
maximizes the combined effects of all a firm’s promotional efforts.

Socially Responsible Marketing Communication

Socially responsible marketing (SRM) is a form of marketing that integrates socially responsible
practices into marketing campaigns and communications. It aims to promote positive social and
environmental impacts while achieving business objectives. SRM encompasses a range of strategies,
including:
 Cause marketing: Partnering with nonprofit organizations or social causes to support their
initiatives and promote a positive brand image.
 Product or service responsibility: Designing and manufacturing products or services that
minimize environmental impact and promote social good.
  Employee engagement: Encouraging employees to participate in social responsibility initiatives
and fostering a culture of giving back.
 Sustainable practices: Incorporating environmentally friendly practices into business operations
and marketing materials.
 Transparent communication: Openly communicating the company's social responsibility
commitments and progress to customers and stakeholders.

SRM offers several benefits to businesses, including:

 Enhanced brand image: Positive associations with social responsibility can lead to increased
brand awareness, improved customer loyalty, and enhanced reputation.
 Differentiation from competitors: By embracing SRM, companies can stand out from their
competitors and attract socially conscious consumers.
 Employee attraction and retention: Engaging in social responsibility can enhance employee
morale, motivation, and loyalty, making it easier to attract and retain top talent.
 Access to new markets: Some consumers and investors actively seek out companies with strong
social responsibility credentials, creating opportunities for market expansion.
 Risk mitigation: Addressing social and environmental issues proactively can help companies
mitigate potential risks and avoid negative publicity.

However, implementing SRM effectively requires careful planning and consideration:

 Authenticity: Social responsibility efforts must be genuine and aligned with the company's core
values and business practices.
 Transparency: Companies must be transparent about their social responsibility commitments and
progress, avoiding misleading claims or greenwashing.
 Long-term commitment: SRM should be an ongoing commitment, not a short-term marketing
strategy.
 Measurable impact: Companies should establish clear metrics to track the impact of their SRM
initiatives.
 Stakeholder engagement: Engage with stakeholders, including employees, customers, and
communities, to ensure alignment with their expectations and concerns.