Communicating Customer Value

Integrated Marketing Communications Strategy

W. Rofianto

Promotion mix (marketing communications mix)

Specific blend of promotion tools that the company uses to

persuasively communicate customer value and build

customer relationships.

The New Marketing Communications Model

Consumers are

changing, become

better informed

Marketing

strategies are

changing, become

more focused

and narrowed.

Remarkable

changes in the

ways companies

and customers

communicate with

each other.

In all, companies are doing less broadcasting and more

narrowcasting.

Integrated marketing communications (IMC)

The Integration of Marketing Communications

Tradition of separation communication tools

Influence of specialized outside suppliers

Managerial parochialism

Skeptics who consider IMC to be a fad

Using multiple communication tools in conjunction with one

another can produce greater results (synergistic effects) than

tools used individually and in an uncoordinated fashion.

Why Not Integrated?

The Communication Process

Developing Effective Marketing Communication

1. Identify the target audiences

2. Determine the communication objectives

3. Design a message

what to say and how to say

Developing Effective Marketing Communication

4. Choose the media

5. Select the message source

Personal vs nonpersonal

Communication channel

6. Collect feedback

Setting the Total Promotion Budget

Affordable method

Competitive-parity method

Objective-and-test

Percentage of-sales method

Shaping the Overall Promotion Mix

Socially Responsible Marketing Communication

Advertising and Sales Promotion Personal Selling

By law, companies must avoid false or

deceptive advertising. Advertisers

must not make false claims, such as

suggesting that a product cures

something when it does not.

Sellers must avoid bait-and-switch

advertising that attracts buyers under

false pretenses. For example, a large

retailer advertised a sewing machine at

$179. However, when consumers tried

to buy the advertised machine, the

seller downplayed its features etc in an

attempt to switch buyers to a more

expensive machine.

A company’s salespeople must follow

the rules of “fair competition.”

The Federal Trade Commission (FTC)

has adopted a three-day cooling-off

rule to give special protection to

customers who are not seeking

products. Under this rule, customers

who agree in their own homes,

workplace, dormitory, or facilities rented

by the seller on a temporary basis—

such as hotel rooms, convention

centers, and restaurants—to buy

something costing more than $25 have

72 hours in which to cancel a contract

or return merchandise and get their

money back—no questions asked.

Major Advertising Decisions

Possible Advertising Objectives

Message Decision

https://www.youtube.com/watch?v=3eV--Aw1fEs

Media Decision

Determining Reach, Frequency, and Impact.

Media Vehicles

Media Timing

Advertising Evaluation

• Return on advertising investment is the net return on

advertising investment divided by the costs of the

advertising investment.

• Measuring the communication effects of an ad or ad

campaign tells whether the ads and media are

communicating the ad message well.

• Advertisers have gotten pretty good at measuring the

communication effects of their ads and ad campaigns.

• However, sales and profit effects of advertising are often

much harder to measure.

PR department functions

• Press relations or press agency: Creating and placing newsworthy

information in the news media to attract attention to a person,

product, or service.

• Product publicity: Publicizing specific products.

• Public affairs: Building and maintaining national or local

community relationships.

• Lobbying: Building and maintaining relationships with legislators

and government officials to influence legislation and regulation.

• Investor relations: Maintaining relationships with shareholders and

others in the financial community.

• Development: Working with donors or members of nonprofit

organizations to gain financial or volunteer support

Major Public Relations Tools

PR Tools

News

Special

events

Written

materials

Audiovisual

materials

Corporate

identity

materials

Public

service

activities

The Role of the Sales Force

1. Representing the company to customers

2. Representing customers to the company

3. Working closely with marketing

Personal selling is the interpersonal part

of the promotion mix and can include:

• Face-to-face communication

• Telephone communication

• Video or Web conferencing

Major Steps in Sales Force Management

Territorial sales force structure

Product sales force structure

Customer sales force structure

Complex sales force structure

A study showed that the

average salesperson’s pay

consists of about 67

percent salary and 33

percent incentive pay

Steps in the Selling Process

Pushy Late Deceitful

Disorganized Unprepared

Good listeners

Empathetic Honest

Dependable ThoroughFollow-up

types

Bad Traits Good traits

Sales Promotion

Short-term incentives to encourage purchases or sales of a

product or service

Targeted toward final buyers (consumer promotions),

retailers and wholesalers (trade promotions), business

customers (business promotions), and members of the

sales force (sales force promotions).

Major Sales Promotion Tools

Samples Coupons Cash refunds Price packs

PremiumsAdvertising specialties

Patronage rewards

Point-of-purchase displays

Demonstrations Contests Sweepstakes Games

rofianto@gmail.com