PM_14_Integrated Marketing Communications.ppt

Chapter 14 - slide 1
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Presented By:
S.M. Misbauddin
Lecturer, Management
BBA (KU), MBA (Leipzig Uni, Germany)
Chapter 14:
Integrated Marketing Communication
EMBA 2B+2C
S.M. Misbauddin, Lecturer,

Chapter 14:
Communicating Customer Value: Integrated
Marketing Communications Strategy
• The Promotion Mix
• Integrated Marketing Communications
• Steps in Developing Effective Marketing
Communication
• Setting the Total Promotion Budget and Mix
Chapter Content
S.M. Monirul Islam, Asst. Professor, DBA, NUB
S.M. Misbauddin,

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 Promotion Mix

The Promotion Mix
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor
• Broadcast
• Print
• Internet
• Outdoor
Major Promotion Tools
Advertising: Attractive theme and
illustration of GP’s advertisement draw
customers’ attention as desired

The Promotion Mix
Sales promotion is the short-term incentives to
encourage the purchase or sale of a product or
service
• Discounts
• Coupons
• Displays
• Demonstrations
Sales Promotion: P&G
offers 33% extra in its
Gillette shaving foam to
get quick sales
responses.
S.M. Misbauddin, Lecturer

The Promotion Mix
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
•Personal selling: Kurt Jackson, sales executive, Regency Door & Blinds, explains
the services his company offers to Keisha Thomas, residential sales representative,
Flow, in Jamaica Property Expo.

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
• Press releases
• Sponsorships
• Special events
• Web pages
•Public Relation: Pepsi’s sponsorship of Pakistan
cricket team is strong public relation strategy of the
company.

The Promotion Mix
Direct 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
•Direct marketing: Catalog
marketing is now very popular
direct marketing approach in
furniture industry

Integrated Marketing
Communications
Integrated marketing communications (IMC)
Carefully integrating and coordinating the
company’s many communications channels to
deliver a clear, consistent, and compelling
message about the organization and its
products.
The Need for Integrated Marketing
Communications

Integrated Marketing Communications
FIGURE 14.1:
Integrated Marketing
Communications

Steps in Developing Effective
Marketing Communication
Collecting the Feed back

Communication
Identifying the Target market
A marketing communicator starts with a clear target audience
in mind. The audience may be current users or potential
buyers, those who make the buying decision or those who
influence it.
The audience may be individuals, groups, special publics, or
the general public.
The target audience will heavily affect the communicator’s
decisions on
•what will be said,
•how it will be said,
•when it will be said,
•where it will be said, and
•who will say it.
S.M. Misbauddin,

Having defined the desired audience
response, the communicator then turns to
developing an effective message. Ideally,
the message should;
– Get Attention
– Hold Interest
– Arouse Desire
– Obtain Action
Designing a Message

Message content is an appeal or theme
that will produce the desired response
• Rational appeal
• Emotional appeal
• Moral appeal
• Social appeal
Designing a Message: Message Content

Rational appeal relates to the audience’s self-
interest from using the product.
Emotional appeal is 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.
Social appeal is promoted to the target audience to
change their behavior for the betterment of the
society.
Designing a Message: Content
S.M. Misbauddin, Lecturer, DBA,

Designing a Message: Rational Appeal
•Rational Appeal: Sugar
Free Natura claims that one
can cut down 500 calories
daily by replacing Sugar with
Sugar Free Natura.

Designing a Message: Emotional Appeal
• Emotional Appeal: GP
uses emotional appeal “
who will take care her in
your absence?” in its
‘Nirvoy’ life insurance ad for
telecom subscribers.

Designing a Message: Social Appeal
• Social Appeal: educategirls.in
promote the campaign against
child marriage in India.

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.
If the message is to be carried on television or in
person, then all these elements plus body language
must be planned. Presenters plan every detail—
facial expressions, gestures, dress, posture, and
hairstyles etc.
Designing a Message: Message Format

Designing a Message: Message Format
•Message Format: To attract the attention, advertiser can use novelty and
contrast, eye-catching pictures and headlines, and distinctive formats, as in
this National Aquarium in Baltimore print ad.

Personal communication involves two or more
people communicating directly with each other
• Face to face
• Phone
• Mail
• E-mail
• Internet chat
Choosing Media

Personal communication is effective because it
allows personal addressing and feedback
Control of personal communication
• Company
• Independent experts
• Word of mouth
Choosing Media

Opinion leaders are people within a reference
group who, because of their special skills,
knowledge, personality, or other
characteristics; exerts social influence on
others
Buzz marketing involves cultivating opinion
leaders and getting them to spread
information about a product or service to
others in their communities
Choosing Media
Personal Communication

Choosing Media: Personal Communication
• Buzz marketing: The
Vocalpoint marketing arm of P&G
has enlisted an army of buzzers
to create word-of-mouth for P&G
and other company brands.

Non-personal communication is media that
carry messages without personal contact or
feedback, including major media, atmospheres,
and events that affect the buyer directly.
Major Non-personal media include print,
broadcast, display, and online media.
Non-Personal Communication Channels

Non-Personal Communication Channels
•Non-Personal media: Television and Newspaper are the major non-personal
media used for marketing communications.

The message’s impact on the target audience
is affected by how the audience views the
communicator
• Celebrities
– Athletes
– Entertainers
• Professionals
– Health care providers
Selecting the Message Source

• Message Source: Adidas uses Leonel Messi in its advertisement
as the message source to increase the message credibility to the
target audiences.

• Message Source: Unilever hires bolywood king Shahrukh Khan as
the message source in the ad of pepsodent.

Involves the communicator understanding
the effect on the target audience by
measuring customer behavior resulting
from the marketing communication.
Collecting Feedback

1. Percentage-of-sales method
2. Competitive-parity method
1. Percentage-of-sales method sets the budget at a
certain percentage of current or forecasted sales
or unit sales price
• Easy to use and helps management think about
the relationship between promotion, selling
price, and profit per unit
• Wrongly views sales as the cause rather than the
result of promotion.
Setting the Total Promotion Budget
Setting the Total Promotion
Budget and Mix

2. Competitive-parity method sets the budget to
match competitor spending
• Represents industry standards
Setting the Total Promotion Budget
Budget and Mix

Promotion Mix Strategies: Push and Pull
Budget and Mix

• A push promotional strategy works to create customer demand
for product or service through promotion.
• Example: through discounts to retailers and trade promotions.
• One example of a push strategy is mobile phone sales, where
manufacturers offer discounts on phones to encourage buyers
to choose their phone. Push promotional strategies also focus
on selling directly to customers, for example, through point of
sale displays and direct approaches to customers.
Budget and Mix
Push Promotional Strategy

• A "push" promotional strategy makes use of a company's sales
force and trade promotion activities to create consumer
demand for a product: it takes the product to the customer -
the customer knows about the product when they buy it.
• Producer promotes product to wholesalers > wholesalers
promote product to retailers > retailers promote product to
consumers
• A good example of push selling is mobile phones where major
handset manufacturers, such as Nokia, promote their products
via retailers such as Carphone Warehouse. For example,
offering subsidies on the handsets to encourage retailers to sell
higher volumes.
• Direct selling and trade promotions are often the most
effective promotional tools for companies such as Nokia.
Budget and Mix
Push Strategy

• A “pull” promotional strategy is one that requires high
spending on advertising and consumer promotion to build up
consumer demand for a product: it brings the customer to the
product - the customer is motivated to buy it.
• Consumers ask retailers for product > retailers ask wholesalers
for product > wholesalers ask producers for product
• 'Pull strategy' refers to the customer actively seeking out the
product and retailers placing orders for stock due to direct
consumer demand.
• A pull strategy requires a highly visible brand which can be
developed through mass media advertising and word of mouth
tactics. If customers want a product, the retailers will stock it.
• Examples
Promotion Mix Strategies: Push and Pull
Budget and Mix
Pull Strategy

THANK YOU
DANKE SCHÖN

PM_14_Integrated Marketing Communications.ppt

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