Chapter 14

Chapter 14:
Engaging Customers and Communicating

Customer Value
Integrated Marketing Communications Strategy
Copyright © 2016 Pearson Education, Inc. 14-1

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.

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.

Customer Value
Learning Objective 1
• Define the five promotion mix tools for communicating

customer value.
The Promotion Mix

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.

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

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

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.

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.

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.

Customer Value
• Discuss the changing communications landscape and

the need for integrated marketing communications.
Integrated Marketing Communications

The New Marketing Communications Model
• Consumers are changing.

• Marketing strategies are changing.
• Advances in digital technology

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.

FIGURE | 14.1
Integrated Marketing
Communications

Customer Value
• Outline the communication process and the steps in developing

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

A View of the Communication Process
Elements in the Communication Process
FIGURE | 14.2
Elements in the
Communication
Process

Identify the target audience
Determine the communication

objectives
Design the message
Choose the media to send the

message
Select message source and
collect feedback

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
Determining the Communication Objectives
FIGURE | 14.3
Buyer-Readiness Stages

Designing a Message
AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action

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

format is “how to
say it.”

Message Content
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.

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

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.

Channels and Media
Nonpersonal communication channels are media that carry
messages without personal contact or feedback, including
major media, atmospheres, and events.

Selecting the Message Source
The message’s impact depends on how the
target audience views the communicator.
• Celebrities
• Athletes
• Entertainers
• Professionals
• Health care providers

Collecting Feedback
Collecting feedback involves the communicator understanding
the effect on the target audience by measuring behavior
resulting from the content.

Customer Value
• 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

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.

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.

The concept of integrated marketing communications
suggests that the company must blend the promotion tools
carefully into a coordinated promotion mix.

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.

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.
Promotion Mix Strategies

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.

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

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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Chapter 14:

Engaging Customers and Communicating

Copyright © 2016 Pearson Education, Inc. 14-1

• Objective 1: Define the five promotion mix tools for

• Objective 2: Discuss the changing communications

Copyright © 2016 Pearson Education, Inc. 14-3

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

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

Copyright © 2016 Pearson Education, Inc. 14-4

• Define the five promotion mix tools for communicating

The Promotion Mix

Copyright © 2016 Pearson Education, Inc. 14-5

The promotion mix is the specific blend of promotion tools that

Copyright © 2016 Pearson Education, Inc. 14-6

Advertising is any paid form of nonpersonal presentation and

Copyright © 2016 Pearson Education, Inc. 14-7

Sales promotion is a short-term incentive to encourage the

Copyright © 2016 Pearson Education, Inc. 14-8

Personal selling is the personal interaction by the firm’s sales

Copyright © 2016 Pearson Education, Inc. 14-9

Public relations involves building good relations with the

Copyright © 2016 Pearson Education, Inc. 14-10

Direct and digital marketing involves engaging directly with

Copyright © 2016 Pearson Education, Inc. 14-11

• Discuss the changing communications landscape and

Integrated Marketing Communications

Copyright © 2016 Pearson Education, Inc. 14-13

• Consumers are changing.

Copyright © 2016 Pearson Education, Inc. 14-14

Integrated marketing communications (IMC) involves carefully

Copyright © 2016 Pearson Education, Inc. 14-15

Copyright © 2016 Pearson Education, Inc. 14-16

• Outline the communication process and the steps in developing

Copyright © 2016 Pearson Education, Inc. 14-18

Elements in the Communication Process

Copyright © 2016 Pearson Education, Inc. 14-19

Identify the target audience

Determine the communication

Design the message

Choose the media to send the

Copyright © 2016 Pearson Education, Inc. 14-20

What will How it will

Determining the Communication Objectives

Copyright © 2016 Pearson Education, Inc. 14-22

Copyright © 2016 Pearson Education, Inc. 14-23

Message structure and

Copyright © 2016 Pearson Education, Inc. 14-24

Rational appeal relates to the audience’s self-interest.

Emotional appeal is an attempt to stir up positive or negative emotions

Moral appeal is directed to an audience’s sense of what is right and

Copyright © 2016 Pearson Education, Inc. 14-25

Personal communication involves two or more

Copyright © 2016 Pearson Education, Inc. 14-26

Opinion leaders are people whose opinions are sought by others.

Buzz marketing involves cultivating opinion leaders and getting them to

Copyright © 2016 Pearson Education, Inc. 14-27

Copyright © 2016 Pearson Education, Inc. 14-28

Copyright © 2016 Pearson Education, Inc. 14-29

Copyright © 2016 Pearson Education, Inc. 14-30

Setting the Total Promotion Budget and Mix