Chapter 14:

Engaging Customers and Communicating

Customer Value
Integrated Marketing Communications Strategy

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 Engaging Customers and Communicating
Customer Value
Learning Objectives

• Objective 1: Define the five promotion mix tools for

communicating customer value.

• Objective 2: Discuss the changing communications

landscape and the need for integrated marketing
communications.

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 Engaging Customers and Communicating
Customer Value
Learning Objectives

• Objective 3: Outline the communication process and the steps in

developing effective marketing communications.

• Objective 4: Explain the methods for setting the promotion budget

and factors that affect the design of the promotion mix.

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 Engaging Customers and Communicating
Customer Value
Learning Objective 1

• Define the five promotion mix tools for communicating

customer value.

The Promotion Mix

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 The Promotion Mix

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 Promotion Mix

Advertising is any paid form of nonpersonal presentation and

promotion of ideas, goods, or services by an identified
sponsor.
• Broadcast
• Print
• Online
• Outdoor

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 The Promotion Mix

Sales promotion is a short-term incentive to encourage the

purchase or sale of a product or service.
• Discounts
• Coupons
• Displays
• Demonstrations

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 The Promotion 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.

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 The Promotion 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.

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 The Promotion 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.

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 Engaging Customers and Communicating
Customer Value
Learning Objective 2

• Discuss the changing communications landscape and

the need for integrated marketing communications.

Integrated Marketing Communications

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 Integrated Marketing Communications
The New Marketing Communications Model

• Consumers are changing.

• Marketing strategies are changing.
• Advances in digital technology

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 Integrated Marketing Communications
The Need for Integrated Marketing Communications

Integrated marketing communications (IMC) involves carefully

integrating and coordinating the company’s many communications
channels to deliver a clear, consistent, and compelling message
about the organization and its products.

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 Integrated Marketing Communications

FIGURE | 14.1
Integrated Marketing
Communications

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 Engaging Customers and Communicating
Customer Value
Learning Objective 3

• Outline the communication process and the steps in developing

effective marketing communications.
A View of the Communications Process
Steps in Developing Effective Marketing Communication

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 A View of the Communication Process

Elements in the Communication Process

FIGURE | 14.2
Elements in 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

Determining the Communication Objectives

FIGURE | 14.3
Buyer-Readiness Stages

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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
Designing a Message
Message content is
“what to say.”

Message structure and

format is “how to
say it.”

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 Message Content
Steps in Developing Effective Marketing Communication

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
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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 Engaging Customers and Communicating
Customer Value
Learning Objective 4

• Explain the methods for setting the promotion budget and factors
that affect the design of the promotion mix.

Setting the Total Promotion Budget and Mix

Socially Responsible Marketing Communication

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Setting the Total Promotion Budget and Mix
Setting theBudget
Total Promotion
• 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 theBudget
Total Promotion
• 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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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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 The Nature of Each Promotion 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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 The Nature of Each Promotion 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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Promotion Mix Strategies

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 Integrating the Promotion 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

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

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Socially Responsible Marketing Communication

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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