CHAPTER XIV

The Communication of Customer Value

and Integrated Marketing
Communications Strategy
INTEGRATED MARKETING COMMUNICATION STRATEGY

I. Marketing Communication Mix

A.) Advertising
B.) Sales Promotion
C.) Public Relation
D.) Personal Selling
E.) Direct Marketing

II. Steps in Developing Effective Communication

A.) Identifying the Target Audience
B.) Determining the Communication Objective
C.) Designing a Message
a.) Message Content
b.) Message Structure
c.) Message Format
D.) Choosing Media
a.) Personal Communication Channels
b.) Non-Personal Communication Channels
E.) Selecting the Message Source

F.) Collecting Feedback

III. Setting the Total Promotion Budget and Mix
A.) Setting the Total Promotion Budget
a.) Affordable Method
b.) Percentage-of –Sales Method
c.) Competitive – Parity Method
d.) Objective – and – Task Method

B.) Setting the Overall Promotion Mix

a.) Nature of Each Promotion Tool
b.) Promotion Mix Strategies

C.) Integrating the Promotion Mix

IV.) Socially Responsible Marketing Communication

A.) Advertising and Sales Promotion
B.) Personal Selling
I. The Marketing Communication
Mix (Promotion Mix)
The specific mix of advertising,
personal selling, sales promotion,
and public relations a company
uses to pursue its advertising and
marketing objectives.
A.) Advertising
Any paid form of non-personal presentation
and promotion of ideas, goods or services
by an identified sponsor

B.) Sales Promotion

Short-term incentives to encourage the
purchase or sale of a
product or services
C.) Public Relations
Building good relations with the company’s
various publics by obtaining favorable
publicity, building up a good “Corporate
Image”, and handling unfavorable rumors,
stories and events.
D.) Personal Selling
Personal presentation by the firm’s
sales force for the purpose of making
sales and building customer
relationships.
E.) Direct Marketing

Direct connection with carefully

targeted individual consumers to
both obtain an immediate
response and cultivate lasting
customer relationships.
 Integrated Marketing
Communications (IMC)

The concept under which a company

carefully integrates and coordinates
its many communications channels to
deliver a clear, consistent, and
compelling message about the
organization and its products.
Sender Encoding Message
Sender Encoding Decoding
Decoding Receiver
Receiver
Media
Media

NOISE
NOISE

Feedback
Feedback Response
Response

Elements in the Communication Process

 II. Steps in Developing Effective
Communication

A.) Identifying the Target Audience

B.) Determining the Communication Objectives
Buyer-readiness Stages – The
stages consumers normally passes
through on their way to purchase,
including awareness, knowledge, liking,
preference, conviction and purchase.
AWARENESS KNOWLEDGE LIKING

PREFERENCE CONVICTION PURCHASE

Buyer-readiness stages
C.) Designing a Message

Developing an effective message

that could get the Attention, hold
Interest, arouse Desire and
obtain Action (AIDA model)
 a.) Message Content
To figure out an appeal or theme that will
produce the desired response.
1.) Rational Appeal – relate to the audience’s self-
interest
-- to show that the product will
produce the desired benefits.

2.) Emotional Appeal – attempt to stir up positive and

negative emotions that can
motivate purchase.
 b.) Message Structure
Three message-structure Issues:
1.) To draw conclusion or leave it to the
Audience
2.) Whether to use one-sided argument or
two-sided argument.
3.) To present the strongest argument first
or last part.
 c.) Message Format
Must be planned in order to
attract the attention of the public.
In any type of media that will be
used, proper criteria should be
considered to deliver the
advertisement
 D.) CHOOSING THE MEDIA
Communicator should select channels of
communication.
A.) Personal Communication Channels –
Channels through which two or more people
communicate directly with each other including face-
to-face, person to audience, over the telephone, or
through e-mail.

B.) Non-personal Communication Channels – Media

that carry messages without personal contact or
feedback, including major media, atmosphere and
events.
E.) Selecting the Message Source

Messages delivered by highly credible

sources are more persuasive.
Picking the wrong spokesperson can
result in embarrassment and tarnished
image.
 F.) Collecting Feedback
The communicator must research its
effect on the target audience.
Feedback on marketing
communications may suggest
changes in the promotion program or
in the product itself.
 III. Setting the Total Promotion
Budget and Mix
A.) Setting the Total Promotion Budget
a.) Affordable Method – Setting the
promotion budget at the level
management thinks the
company can afford.
b.) Competitive-parity Method –
Setting the promotion budget to
match the competitor’s budget.
c.) Percentage-of-Sales Method –
Setting the promotion budget at a certain %
of current or forecasted sales or as a
percentage of the unit of sales price

d.) Objective-and-task Method –

developing the promotion budget by:
1.) Defining specific objectives
2.) Determining the tasks to be performed
3.) Estimating the costs of performing
these tasks
B. Setting the Overall Promotion Mix

a.) Nature of Each Promotion Tool

1.) Advertising
2.) Personal selling
3.) Sales promotion
4.) Public Relation
5.) Direct marketing
6.) Direct Marketing
b.) Promotion Mix Strategies

1.) Push Strategy – Producer promotes the

product to wholesalers, the wholesalers
promote to retailers, and the retailers
promote to consumers.

2.) Pull Strategy – Strategy that calls for

spending a lot on advertising and consumer
promotion to build up consumer demand
 Producer marketing activities Reseller Marketing activities (personal
(personal selling trade promotion, selling, advertising, sales promotion,
others) others)

Producer Retailers and Wholesalers Consumers

Push Strategy

Demand Demand

Producer Retailers and Wholesalers Producer

Producer Marketing activities( Consumer

advertising, sales promotion, others)

Pull Strategy