Chapter Fourteen Communicating Customer Value Integrated Marketing Communications

Communicating Customer Value: Integrated Marketing Communications Strategy Topic Outline • • The Promotion Mix

The Promotion Mix • The promotion mix is the specific blend of advertising, public

The Promotion Mix Major Promotion Tools Copyright © 2010 Pearson Education, Inc. Publishing as

The Promotion Mix Major Promotion Tools Advertising is any paid form of non-personal presentation

The Promotion Mix Major Promotion Tools Sales promotion is the short-term incentives to encourage

The Promotion Mix Major Promotion Tools Public relations involves building good relations with the

The Promotion Mix Major Promotion Tools Personal selling is the personal presentation by the

The Promotion Mix Major Promotion Tools Direct marketing involves making direct connections with carefully

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by

Which of the following includes point-of-purchase displays, premiums, discounts, and demonstrations? 1. 2. 3.

The strategic blending of such things as advertising, personal selling, and direct marketing is

Integrated Marketing Communications The New Marketing Communications Landscape • Consumers are better informed •

Integrated Marketing Communications The Need for Integrated Marketing Communications Integrated marketing communications is the

A View of the Communication Process The Communication Process Copyright © 2010 Pearson Education,

Which of the following are the two major communication tools of the communications process?

Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives

____ involves identifying the target audience and shaping a well-coordinated promotional program to obtain

Steps in Developing Effective Communication Identifying the Target market What will be said How

Steps in Developing Effective Marketing Communication Determining the Communication Objectives • Marketers seek a

Awareness, knowledge, and liking are three of the six stages of ____. 1. 2.

Steps in Developing Effective Marketing Communication Designing a Message AIDA Model • Get Attention

Steps in Developing Effective Marketing Communication Designing a Message content is an appeal or

All of the following are message structure issues handled by marketers except ____. 1.

Steps in Developing Effective Marketing Communication Designing a Message Rational appeal relates to the

Steps in Developing Effective Marketing Communication Designing a Message Moral appeal is directed at

Which of the following is not a type of message appeal frequently used by

The AIDA model includes which four steps? 1. 2. 3. 4. Action, interest, do,

Steps in Developing Effective Marketing Communication Choosing Media Personal communication involves two or more

Steps in Developing Effective Marketing Communication Choosing Media Personal communication is effective because it

Steps in Developing Effective Marketing Communication Choosing Media Personal Communication Opinion leaders are people

Personal communication about a product between target buyers and family members, neighbors, friends, and

Cultivating opinion leaders and getting them to spread information about your product is referred

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Non-personal communication is media that

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Major media include print, broadcast,

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Events are staged occurrences that

What are the two broad communication channels marketers must choose between? 1. 2. 3.

Steps in Developing Effective Marketing Communication Selecting the Message Source The message’s impact on

Steps in Developing Effective Marketing Communication Collecting Feedback Involves the communicator understanding the effect

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Affordable budget

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Percentage of

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Competitive-parity method

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Objective-and-task method

Affordable, percentage-of-sales, competitiveparity, and objective-and-task are the four methods of setting the ______. 1.

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature

A company’s most expensive promotional tool is ____. 1. 2. 3. 4. advertising personal

If a company wanted to reach a geographically dispersed population frequently and at a

Premiums (Mc. Donald’s toys, dollar-off deals, and contests) are part of a marketer’s _____

Setting the Total Promotion Budget and Mix Promotion Mix Strategies Copyright © 2010 Pearson

If the _____ strategy is effective, consumers will demand the product from channel members.

Setting the Total Promotion Budget and Mix Integrating the Promotion Mix Checklist 1. Identify

A product in the introductory stage of the PLC should be promoted using ____

All rights reserved. No part of this publication may be reproduced, stored in a

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Communicating Customer Value: Integrated Marketing Communications Strategy Topic Outline • • The Promotion Mix Integrated Marketing Communications A View of the Communications Process Steps in Developing Effective Marketing Communication • Setting the Total Promotion Budget and Mix • Socially Responsible Marketing Communication Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 2

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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 3

The Promotion Mix Major Promotion Tools Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor • Broadcast • Print • Internet • Outdoor Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 5

The Promotion Mix Major Promotion Tools Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service • Discounts • Coupons • Displays • Demonstrations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 6

The Promotion Mix Major Promotion Tools 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 7

The Promotion Mix Major Promotion Tools 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 8

The Promotion Mix Major Promotion Tools 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 9

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ____. 1. 2. 3. 4. advertising public relations sales promotion direct marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 10

Which of the following includes point-of-purchase displays, premiums, discounts, and demonstrations? 1. 2. 3. 4. Advertising Public relations Sales promotion Direct marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 12

Which of the following includes point-of-purchase displays, premiums, discounts, and demonstrations? 1. 2. 3. 4. advertising Public relations Sales promotion Direct marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 13

The strategic blending of such things as advertising, personal selling, and direct marketing is referred to as ____. 1. 2. 3. 4. marketing mix promotion mix distribution mix wholesaling Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 14

The strategic blending of such things as advertising, personal selling, and direct marketing is referred to as ______. 1. 2. 3. 4. marketing mix promotion mix distribution mix wholesaling Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 15

Integrated Marketing Communications The New Marketing Communications Landscape • Consumers are better informed • More communication • Less marketing • Changing communications technology Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 16

Integrated Marketing Communications 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 17

Which of the following are the two major communication tools of the communications process? 1. 2. 3. 4. The senders and the receivers The message and the media Encoding and noise The media and encoding Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 19

Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 21

____ involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response. 1. 2. 3. 4. Advertising Promotion Integrated marketing communication (IMC) Direct marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 22

Steps in Developing Effective Communication Identifying the Target market What will be said How it will be said When it will be said Where it will be said Who will say it Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 24

Steps in Developing Effective Marketing Communication Determining the Communication Objectives • Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 25

Awareness, knowledge, and liking are three of the six stages of ____. 1. 2. 3. 4. seller-readiness buyer-readiness direct marketing promotion Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 26

Steps in Developing Effective Marketing Communication Designing a Message AIDA Model • Get Attention • Hold Interest • Arouse Desire • Obtain Action Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 28

Steps in Developing Effective Marketing Communication Designing a Message content is an appeal or theme that will produce the desired response • Rational appeal • Emotional appeal • Moral appeal Message Format Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 29

All of the following are message structure issues handled by marketers except ____. 1. 2. 3. 4. draw a conclusion present a one-sided argument present the strongest argument last present an affordable method Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 30

Steps in Developing Effective Marketing Communication Designing a Message Rational appeal relates to the audience’s selfinterest Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 32

Steps in Developing Effective Marketing Communication Designing a Message Moral appeal is directed at the audience’s sense of right and proper Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 33

Which of the following is not a type of message appeal frequently used by marketers? 1. 2. 3. 4. Moral appeals Emotional appeals Rational appeals All of the above Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 34

The AIDA model includes which four steps? 1. 2. 3. 4. Action, interest, do, advertise Advertise, interest, desire, addition Action, interest, demand, allocate Attention, interest, desire, action Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 36

Steps in Developing Effective Marketing Communication Choosing Media Personal communication involves two or more people communicating directly with each other • Face to face • Phone • Mail • E-mail • Internet chat Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 38

Steps in Developing Effective Marketing Communication Choosing Media Personal communication is effective because it allows personal addressing and feedback Control of personal communication • Company • Independent experts • Word of mouth Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 39

Steps in Developing Effective Marketing Communication Choosing Media Personal Communication 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 40

Personal communication about a product between target buyers and family members, neighbors, friends, and associates is called ____. 1. 2. 3. 4. buzz marketing public relations word of mouth all of the above Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 41

Cultivating opinion leaders and getting them to spread information about your product is referred to as _____ marketing. 1. 2. 3. 4. buzz chat e-talk i-mail Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 43

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 45

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Major media include print, broadcast, display, and online media Atmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a product Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 46

Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Events are staged occurrences that communicate messages to target audiences • Press conferences • Grand openings • Exhibits • Public tours Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 47

What are the two broad communication channels marketers must choose between? 1. 2. 3. 4. Print and broadcast Personal and non-personal Advertising and public relations Direct mail and the Internet Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 48

Steps in Developing Effective Marketing Communication Selecting the Message Source The message’s impact on the target audience is affected by how the audience views the communicator • Celebrities – Athletes – Entertainers • Professionals – Health care providers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 50

Steps in Developing Effective Marketing Communication Collecting Feedback Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 51

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Affordable budget method sets the budget at an affordable level • Ignores the effects of promotion on sales Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 52

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 53

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Competitive-parity method sets the budget to match competitor outlays • Represents industry standards • Avoids promotion wars Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 54

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes: • Defining promotion objectives • Determining tasks to achieve the objectives • Estimating costs Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 55

Affordable, percentage-of-sales, competitiveparity, and objective-and-task are the four methods of setting the ______. 1. 2. 3. 4. total budget for advertising product mix marketing mix public relations budget Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 56

Setting the Total Promotion Budget and Mix 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 58

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, and developing customer relationships Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 59

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix 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, and can be used to dramatize product offers and to boost sagging sales Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 60

Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 61

A company’s most expensive promotional tool is ____. 1. 2. 3. 4. advertising personal selling sales promotion direct mail Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 62

If a company wanted to reach a geographically dispersed population frequently and at a low cost per exposure, then the company should use ____. 1. 2. 3. 4. advertising personal selling sales promotion public relations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 64

Premiums (Mc. Donald’s toys, dollar-off deals, and contests) are part of a marketer’s _____ attempt. 1. 2. 3. 4. public relations direct marketing sales promotion advertising Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 66

If the _____ strategy is effective, consumers will demand the product from channel members. 1. 2. 3. 4. push slide pull grab Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 69

Setting the Total Promotion Budget and Mix Integrating the Promotion Mix Checklist 1. Identify customer touch points 2. Analyze trends—internal and external 3. Audit the pockets of communication spending throughout the organization 4. Team up in communications planning 5. Create compatible themes, tones, and quality across all communications media 6. Create performance measures that are shared by all communications elements 7. Appoint a director responsible for the company’s persuasive communications efforts Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 71

A product in the introductory stage of the PLC should be promoted using ____ to help build awareness among the target audience. 1. 2. 3. 4. advertising and public relations personal selling and direct marketing sales promotion and advertising public relations and direct marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 73

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 14 - slide 75