Principles of Marketing

Eighteenth Edition, Global Edition

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

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BURGER KING: Anything but
Traditional Integrated Marketing
Communications
• Burger King’s often wacky campaigns might strike some
observers as impetuous or even reckless. But they unite
around the long-held positioning that Burger King is
“Home of the Whopper,” the iconic “flame-grilled, 100%
beef” creation that keeps loyal customers coming back.

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Learning Objectives
14.1 Define the five promotion mix tools for communicating
customer value.
14.2 Discuss the changing communications landscape and
the need for integrated marketing communications.
14.3 Outline the communication process and the steps in
developing effective marketing communications.
14.4 Explain the methods for setting the promotion budget
and factors that affect the design of the promotion mix.

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

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The Promotional Mix (1 of 6)
The promotion mix is the specific blend of promotion tools
that the company uses to persuasively communicate
customer value and build customer relationships.

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The Promotional Mix (2 of 6)
Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified
sponsor.
• Broadcast
• Print
• Online
• Mobile
• Outdoor

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The Promotional Mix (3 of 6)
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 Promotional Mix (4 of 6)
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 Promotional Mix (5 of 6)
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 Promotional Mix (6 of 6)
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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Learning Objective 2
Discuss the changing communications landscape and the
need for integrated marketing communications.

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Integrated Marketing Communications (1 of 4)
The New Marketing Communications Model
• Consumers are changing.
• Marketing strategies are changing.
• Advances in digital technology.

The new marketing

communications model:
Marketers are shifting ever-
larger portions of their marketing
budgets away from old-media
mainstays to online, social, and
mobile media. Adidas now uses
only digital channels to engage
its younger consumers.
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Integrated Marketing Communications (2 of 4)
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, share, and curate marketing
content—both their own and that created by consumers and
others.

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Integrated Marketing Communications (3 of 4)
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 message
about the organization and its products.

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

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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

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Steps in Developing Effective
Marketing Communication (2 of 10)
Identifying the Target Audience
• What will be said
• How it will be said
• When it will be said
• Where it will be said
• Who will say it

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Steps in Developing Effective
Marketing Communication (3 of 10)
Designing a Message
AI DA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action

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Steps in Developing Effective
Marketing Communication (4 of 10)
Message Content – “What to Say”
Rational appeal relates to the audience’s self-interest.
Emotional appeal is an attempt to stir up positive or
negative emotions to motivate a purchase.
Moral appeal is directed to an audience’s sense of what is
right and proper.

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Steps in Developing Effective
Marketing Communication (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
shown in this Reese’s ad.

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Steps in Developing Effective
Marketing Communication (6 of 10)
Choosing Communication Channels and Media
Personal communication involves two or more people
communicating directly with each other.
• Face-to-face
• Phone
• Mail or email
• Texting or internet chat

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Steps in Developing Effective
Marketing Communication (7 of 10)
Choosing Communication Channels and Media
Opinion leaders are people whose opinions are sought by
others.
Buzz marketing involves cultivating opinion leaders and
getting them to spread information about a product or
service to others in their communities.

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Steps in Developing Effective
Marketing Communication (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.

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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.

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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)
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

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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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