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KAUFT King King Abdul-Aziz university university
FACULTY OF TOURISMFACULTY OF TOURISM
EVENT SALES AND MARKETING
EM 603 Communicating Customer Value:
Integrated Marketing
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Learning Objectives By completion of this presentation You should be able to:
Define the five promotion mix tools for communicating customer value
Discuss the changing communications landscape and the need for integrated marketing communications.
Outline the communication process and the steps in developing effective marketing communications.
Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.
Recommended Textbook:
Kotler, P. (2002) Marketing management, Millennium Edition, Pearson Custom Publishing, USA.
Kotler, P. and Armstrong, G. (2012) Principles of Marketing,, 14th ED., Pearson Prentice Hall, Boston.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
2
Brainstorming Group work ActivityBrainstorming Group work Activity
What is meant by: Promotion Mix
……….. ……….. ………..
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
IntroductionIntroduction Building good customer relationships calls for more than just developing a good product, pricing it attractively, and making it available to target customers. Companies must also communicate their value propositions to customers, and what they communicate should not be left to chance. All communications must be planned and blended into carefully integrated programs.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
3
The Promotion MixThe Promotion Mix A company’s total promotion mix—also called its marketing communications mix—consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships. The five major promotion tools are defined as follows:
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
The Promotion MixThe Promotion Mix Figure 1:The five major promotion tools
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Promotion Tool
Description
Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales Promotion Short-term incentives to encourage the purchase or sale of a product or service.
Personal Selling Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Public Relations
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.
Direct Marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
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The Promotion MixThe Promotion Mix Each category involves specific promotional tools used to communicate with customers. For example:
Advertising includes broadcast, print, Internet, outdoor, and other forms,
Sales promotion includes discounts, coupons, displays, and demonstrations,
Personal selling includes sales presentations, trade shows, and incentive programs.,
Public relations (PR) includes press releases, sponsorships, special events, and Web pages, and
Direct marketing includes catalogs, telephone marketing, kiosks, the Internet, mobile marketing, and more.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
The Promotion MixThe Promotion Mix At the same time, marketing communication goes beyond these specific promotion tools.
The product’s design, its price, the shape and color of its package, and the stores that sell it all communicate something to buyers.
Thus, although the promotion mix is the company’s primary communications activity, the entire marketing mix— promotion and product, price, and place—must be coordinated for greatest impact.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications In past decades, marketers perfected the art of mass marketing: selling highly standardized products to masses of customers. In the process, they developed effective mass-media communications techniques to support these strategies.
Large companies now routinely invest millions or even billions of dollars in television, magazine, or other mass-media advertising, reaching tens of millions of customers with a single ad.
Marketing is changing so profoundly as marketing communications, creating both exciting and anxious times for marketing communicators.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications The New Marketing Communications Model:
Several major factors are changing the face of today’s marketing communications:
First, consumers are changing.
In this digital, wireless age, they are better informed and more communications empowered.
Rather than relying on marketer-supplied information, they can use the Internet and other technologies to find information on their own.
They can connect more easily with other consumers to exchange brand-related information or even create their own marketing messages.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications
The New Marketing Communications Model:
Second, marketing strategies are changing.
As mass markets have fragmented, marketers are shifting away from mass marketing.
More and more, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micro-markets.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications
The New Marketing Communications Model:
Finally, sweeping advances in communications technology are causing remarkable changes in the ways in which companies and customers communicate with each other.
The digital age has spawned a host of new information and communication tools—from smart-phones and iPods to satellite and cable television systems to the many faces of the Internet (e-mail, social networks, blogs, brand Web sites, and so much more).
Just as mass marketing once gave rise to a new generation of mass-media communications, the new digital media have given birth to a new marketing communications model.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications The New Marketing Communications Model:
Although television, magazines, newspapers, and other mass media remain very important, their dominance is declining.
Advertisers are now adding a broad selection of more-specialized and highly targeted media to reach smaller customer segments with more- personalized, interactive messages.
The new media range from specialty cable television channels and made-for-the-Web videos to Internet catalogs, e-mail, blogs, cell phone content, and online social networks.
In all, companies are doing less broadcasting and more narrowcasting.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications
The New Marketing Communications Model:
Some advertising industry experts even predict that the old mass-media communications model will soon be obsolete.
Mass media costs are rising, audiences are shrinking, ad clutter is increasing.
As a result, they suggest, marketers are shifting from old-media mainstays such as 30-second TV commercials and glossy magazine ads to digital and other new-age media.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications The New Marketing Communications Model:
ⓞThe new marketing communications model: In relaunching Zune Pass, Microsoft used 30-second spots but placed them online only, reaching as many target consumers but at half the cost of traditional media.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications The New Marketing Communications Model:
In the new marketing communications world, new media formats let marketers reach smaller groups of consumers in more interactive, engaging ways.
For example, think about television viewing these days. Consumers can now watch their favorite programs on just about anything with a screen—on televisions but also laptops, cell phones, or iPods.
And they can choose to watch programs whenever and wherever they wish, often with or without commercials.
Increasingly, some programs, ads, and videos are being produced only for Internet viewing.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications
The New Marketing Communications Model:
Despite the shift toward new digital media, however, traditional mass media still capture a lion’s share of the promotion budgets of most major marketing firms, a fact that probably won’t change quickly.
Thus, most industry insiders see a more gradual blending of new and traditional media.
The new marketing communications model will consist of a shifting mix of both traditional mass media and a wide array of exciting, new, more- targeted, and more-personalized media.
The challenge is to bridge the “media divide” that too often separates traditional creative and media approaches from new interactive and digital ones.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications
The Need for Integrated Marketing Communications:
The shift toward a richer mix of media and communication approaches poses a problem for marketers.
Consumers today are bombarded by commercial messages from a broad range of sources.
All too often, companies fail to integrate their various communications channels. The result is a hodgepodge of communications to consumers.
Mass-media advertisements say one thing, while an in-store promotion sends a different signal, and company sales literature creates still another message. And the company’s Web site, e-mails, Facebook page, or videos posted on YouTube say something altogether different.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications The Need for Integrated Marketing Communications:
The problem is that these communications often come from different parts of the company:
Advertising messages are planned and implemented by the advertising department or an ad agency.
Personal selling communications are developed by sales management.
Other company specialists are responsible for PR, sales promotion events, Internet or social network efforts, and other forms of marketing communications.
However, whereas these companies have separated their communications tools, customers don’t.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications The Need for Integrated Marketing Communications:
Today, more companies are adopting the concept of integrated marketing communications (IMC). Under this concept, (see Figure 2), the company carefully integrates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Figure 2: Integrated Marketing Communications
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications
The Need for Integrated Marketing Communications:
Integrated marketing communications calls for recognizing all touchpoints where the customer may encounter the company and its brands.
Each brand contact will deliver a message—whether good, bad, or indifferent.
The company’s goal should be to deliver a consistent and positive message to each contact.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications
The Need for Integrated Marketing Communications:
Integrated marketing communications ties together all of the company’s messages and images.
Its television and print ads have the same message, look, and feel as its e-mail and personal selling communications.
And its PR materials project the same image as its Web site or social network presence.
Often, different media play unique roles in attracting, informing, and persuading consumers; these roles must be carefully coordinated under the overall marketing communications plan.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications
The Need for Integrated Marketing Communications:
A great example of the power of a well-integrated marketing communications effort is Burger King’s now-classic, award-winning, Whopper Freak-out campaign:
To celebrate the 50th anniversary of the iconic Whopper, Burger King launched a campaign to show what would happen if it suddenly removed the sandwich from its menu “forever.”
It dropped the Whopper in selected restaurants and used hidden cameras to capture the real-time reactions of stricken customers. It then shared the results in a carefully integrated, multipronged promotional campaign.
The campaign began with coordinated TV, print, and radio spots announcing that “We stopped selling the Whopper for one day to see what would happen. . . . What happened was, people freaked!”
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Integrated Marketing CommunicationsIntegrated Marketing Communications
The Need for Integrated Marketing Communications:
The ads drove consumers to www.whopperfreakout.com, which featured a video documentary outlining the entire experiment.
ⓞ The documentary was also uploaded to YouTube.
At the Web site, visitors could view Freak-out ads showing the disbelieving, often angry reactions of a dozen or more customers.
Burger King also promoted the campaign through rich media ad banners on several other popular Web sites.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Integrated Marketing CommunicationsIntegrated Marketing Communications
The richly integrated Whopper Freak-out campaign was a smashing success.
The ads became the most recalled campaign in Burger King’s history, and the whopperfreakout.com Web site received 4 million views in only the first three months.
In all, the IMC campaign drove store traffic and sales of the Whopper up a whopping 29 percent.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
Integrated marketing communications involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response.
Too often, marketing communications focus on immediate awareness, image, or preference goals in the target market. But this approach to communication is too shortsighted.
Today, marketers are moving toward viewing communications as managing the customer relationship over time.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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A View of the Communication ProcessA View of the Communication Process
Because customers differ, communications programs need to be developed for specific segments, niches, and even individuals. And, given the new interactive communications technologies, companies must ask not only “How can we reach our customers?” but also “How can we let our customers reach us?”
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
Thus, the communications process should start with an audit of all the potential touchpoints that target customers may have with the company and its brands.
For example, someone purchasing a new cell phone plan may talk to others, see television ads, read articles and ads in newspapers and magazines, visit various Web sites for prices and reviews, and check out plans at Best Buy, Walmart, or a wireless provider’s kiosk or store at the mall.
The marketer needs to assess what influence each communication experience will have at different stages of the buying process. This understanding helps marketers allocate their communication dollars more efficiently and effectively.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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A View of the Communication ProcessA View of the Communication Process To communicate effectively, marketers need to understand how communication works. Communication involves the nine elements shown in Figure 3. Two of these elements are the major parties in a communication—the sender and the receiver. Another two are the major communication tools—the message and the media. Four more are major communication functions—encoding, decoding, response, and feedback. The last element is noise in the system. Definitions of these elements follow and are applied to a McDonald’s “i’m lovin’ it” television commercial.
Figure 3: Elements in the Communication Process
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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A View of the Communication ProcessA View of the Communication Process
For a message to be effective, the sender’s encoding process must mesh with the receiver’s decoding process.
The best messages consist of words and other symbols that are familiar to the receiver.
The more the sender’s field of experience overlaps with that of the receiver, the more effective the message is likely to be.
Marketing communicators may not always share their customer’s field of experience.
For example, an advertising copywriter from one socioeconomic level might create ads for customers from another level—say, wealthy business owners.
However, to communicate effectively, the marketing communicator must understand the customer’s field of experience.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
This model points out several key factors in good communication.
Senders need to know what audiences they wish to reach and what responses they want.
They must be good at encoding messages that take into account how the target audience decodes them.
They must send messages through media that reach target audiences, and they must develop feedback channels so that they can assess an audience’s response to the message.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Steps in Developing Effective Steps in Developing Effective Marketing CommunicationMarketing Communication
Marketers must do the following:
Identify the target audience,
Determine the communication objectives,
Design a message,
Choose the media through which to send the message,
Select the message source, and
Collect feedback.
Identifying the Target Audience:
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.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Steps in Developing Effective Steps in Developing Effective Marketing CommunicationMarketing Communication
Determining the Communication Objectives:
Once the target audience has been defined, marketers must determine the desired response. Of course, in many cases, they will seek a purchase response. But purchase may result only after a lengthy consumer decision-making process.
The target audience may be in any of six buyer-readiness stages, the stages consumers normally pass through on their way to making a purchase. These stages include awareness, knowledge, liking, preference, conviction, and purchase (see Figure 4).
The marketing communicator’s target market may be totally unaware of the product, know only its name, or know only a few things about it. Thus, the communicator must first build awareness and knowledge.
Figure 4: Buyer-Readiness Stages
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Steps in Developing Effective Steps in Developing Effective Marketing CommunicationMarketing Communication
Determining the Communication Objectives:
Once target consumers know about the product, marketers want to move them through successively stronger stages of feelings toward a specific product.
These stages include liking (feeling favorable about the specific product), preference (preferring the specific brand to other one of that specific product), and conviction (believing that this brand of that specific product is the best product for them).
Finally, some members of the target market might be convinced about the product but not quite get around to making the purchase. The communicator must lead these consumers to take the final step. Actions might include offering special promotional prices, rebates, or premiums. Dealers might call, write, or e-mail selected customers, inviting them to visit the product showroom.
Of course, marketing communications alone could not create positive feelings and purchases for the product. The product itself must provide superior value for the customer.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Steps in Developing Effective Steps in Developing Effective Marketing CommunicationMarketing Communication
Designing a Message:
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, and obtain action (a framework known as the AIDA model).
When putting the message together, the marketing communicator must decide what to say (message content) and how to say it (message structure and format).
Message Content:
The marketer has to figure out an appeal or theme that will produce the desired response. There are three types of appeals: rational, emotional, and moral.
Rational appeals relate to the audience’s self-interest.
Emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase.
Moral appeals are directed to an audience’s sense of what is “right” and “proper.”
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Steps in Developing Effective Steps in Developing Effective Marketing CommunicationMarketing Communication
Designing a Message—Message Structure:
Marketers must also decide how to handle three message structure issues.
The first is whether to draw a conclusion or leave it to the audience.
The second message structure issue is whether to present the strongest arguments first or last. Presenting them first gets strong attention but may lead to an anticlimactic ending.
The third message structure issue is whether to present a one- sided argument (mentioning only the product’s strengths) or a two- sided argument (touting the product’s strengths while also admitting its shortcomings). Usually, a one-sided argument is more effective in sales presentations—except when audiences are highly educated or likely to hear opposing claims or when the communicator has a negative association to overcome.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Steps in Developing Effective Steps in Developing Effective Marketing CommunicationMarketing Communication
Designing a Message—Message Format:
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.
ⓞTo attract attention, advertisers can use novelty and contrast; eye- catching pictures and headlines; distinctive formats; message size and position; and color, shape, and movement
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
ⓞ Message format: To attract attention, advertisers can use novelty and contrast, eye-catching pictures and headlines, or distinctive formats, as in this PEDIGREE ad.
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A View of the Communication ProcessA View of the Communication Process
Designing a Message—Message Format:
If the message is to be carried over the radio, the communicator has to choose words, sounds, and voices. The “sound” of an ad promoting banking services should be different from one promoting an iPod.
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.
If the message is carried on the product or its package, the communicator must watch texture, scent, color, size, and shape. For example, color alone can enhance message recognition for a brand. One study suggests that color increases brand recognition by up to 80 percent—think about Target (red), McDonald’s (yellow and red), John Deere (green and yellow), IBM (blue); or UPS (brown).
Thus, in designing effective marketing communications, marketers must consider color and other seemingly unimportant details carefully.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
Choosing Media:
The communicator must now select the channels of communication. There are two broad types of communication channels: personal and non-personal.
Choosing Media—Personal Communication Channels:
In personal communication channels, two or more people communicate directly with each other. They might communicate face to face, on the phone, via mail or e-mail, or even through an Internet “chat.” Personal communication channels are effective because they allow for personal addressing and feedback.
Some personal communication channels are controlled directly by the company. For example, company salespeople contact business buyers. But other personal communications about the product may reach buyers through channels not directly controlled by the company.
These channels might include independent experts—consumer advocates, online buying guides, and others—making statements to buyers.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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A View of the Communication ProcessA View of the Communication Process
Choosing Media—Personal Communication Channels:
Or they might be neighbors, friends, family members, and associates talking to target buyers. This last channel, word-of-mouth influence, has considerable effect in many product areas. Personal influence carries great weight for products that are expensive, risky, or highly visible. Consider the power of simple customer reviews on Amazon.com.
Companies can take steps to put personal communication channels to work for them. they can create opinion leaders for their brands—
people whose opinions are sought by others—by supplying influencers with the product on attractive terms or by educating them so that they can inform others. Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
Choosing Media—Non-personal Communication Channels:
Non-personal communication channels are media that carry messages without personal contact or feedback. They include major media, atmospheres, and events.
Major media include print media (newspapers, magazines, direct-mail), broadcast media (television, radio), display media (billboards, signs, posters), and online media (e-mail, company Web sites, and online social and sharing networks).
Atmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a product. Thus, lawyers’ offices and banks are designed to communicate confidence and other qualities that might be valued by clients.
Events are staged occurrences that communicate messages to target audiences. For example, PR departments arrange grand openings, shows and exhibits, public tours, and other events.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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A View of the Communication ProcessA View of the Communication Process
Choosing Media—Non-personal Communication Channels:
Non-personal communication affects buyers directly. In addition, using mass media often affects buyers indirectly by causing more personal communication. For example, communications might first flow from television, magazines, and other mass media to opinion leaders and then from these opinion leaders to others.
Interestingly, marketers often use non-personal communications channels to replace or stimulate personal communications by embedding consumer endorsements or word-of-mouth testimonials in their ads and other promotions.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
A View of the Communication ProcessA View of the Communication Process
Selecting the Message Source:
In either personal or non-personal communication, the message’s impact also depends on how the target audience views the communicator. Messages delivered by highly credible sources are more persuasive. Thus, many food companies promote to doctors, dentists, and other health-care providers to motivate these professionals to recommend specific food products to their patients.
And marketers hire celebrity endorsers—well-known athletes, actors, musicians, and even cartoon characters— to deliver their messages. But companies must be careful when selecting celebrities to represent their brands. Picking the wrong spokesperson can result in embarrassment and a tarnished image.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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A View of the Communication ProcessA View of the Communication Process Collecting Feedback:
After sending the message, the communicator must research its effect on the target audience.
This involves asking the target audience members whether they remember the message, how many times they saw it, what points they recall, how they felt about the message, and their past and present attitudes toward the product and company.
The communicator would also like to measure behavior resulting from the message—how many people bought the product, talked to others about it, or visited the store.
Feedback on marketing communications may suggest changes in the promotion program or in the product offer itself.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion BudgetSetting the Total Promotion Budget
One of the hardest marketing decisions facing a company is how much to spend on promotion.
How does a company determine its promotion budget?
Here, we look at four common methods used to set the total budget for advertising:
The affordable method,
The percentage-of-sales method,
The competitive-parity method, and
The objective-and-task method.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
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Setting the Total Promotion BudgetSetting the Total Promotion Budget Affordable Method:
Some companies use the affordable method:
They set the promotion budget at the level they think the company can afford.
Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has.
They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to advertising.
Unfortunately, this method of setting budgets completely ignores the effects of promotion on sales.
It leads to an uncertain annual promotion budget, which makes long-range
market planning difficult.
Although the affordable method can result in overspending on advertising, it more often results in under-spending.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion BudgetSetting the Total Promotion Budget Percentage-of-Sales Method:
Other companies use the percentage-of-sales method, setting their promotion budget at a certain percentage of current or forecasted sales. Or they budget a percentage of the unit sales price.
The percentage-of-sales method is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit.
It wrongly views sales as the cause of promotion rather than as the result. the percentage-of-sales budget is based on the availability of funds rather than on opportunities. It may prevent the increased spending sometimes needed to turn around falling sales.
Because the budget varies with year-to-year sales, long-range planning is difficult. Finally, the method does not provide any basis for choosing a specific percentage, except what has been done in the past or what competitors are doing.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
25
Setting the Total Promotion BudgetSetting the Total Promotion Budget Competitive-parity Method:
Still other companies use the competitive-parity method, setting their promotion budgets to match competitors’ outlays. They monitor competitors’ advertising or et their budgets based on the industry average.
Two arguments support this method. First, competitors’ budgets represent the collective wisdom of the industry. Second, spending what competitors spend helps prevent promotion wars. Unfortunately, neither argument is valid.
Companies differ greatly, and each has its own special promotion
needs. Finally, there is no evidence that budgets based on competitive parity prevent
promotion wars.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion BudgetSetting the Total Promotion Budget
Objective-and-Task Method:
The most logical budget-setting method is the objective-and- task method, whereby the company sets its promotion budget based on what it wants to accomplish with promotion.
This budgeting method entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
The advantage of the objective-and-task method is that it forces management to spell out its assumptions about the relationship between dollars spent and promotion results.
But it is also the most difficult method to use.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
26
Setting the Total Promotion MixSetting the Total Promotion Mix Shaping the Overall Promotion Mix:
The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. But how does it determine what mix of promotion tools to use? Companies within the same industry differ greatly in the design of their promotion mixes.
The Nature of Each Promotion Tool:
Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix. Promotion tools include five major tools:
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Tool—Advertising:
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. For example, television advertising can reach huge audiences. For companies that want to reach a mass audience, TV is the place to be.
Although advertising reaches many people quickly, advertising is impersonal and cannot be as directly persuasive as can company salespeople.
In addition, advertising can be very costly. Although some advertising forms, such as newspaper and radio advertising, can be done on smaller budgets, other forms, such as network TV advertising, require very large budgets.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
27
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Tool—Personal Selling:
Personal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers’ preferences, convictions, and actions.
It involves personal interaction between two or more people, so each person can observe the other’s needs and characteristics and make quick adjustments.
Personal selling also allows all kinds of customer relationships to spring up, ranging from matter-of-fact selling relationships to personal friendships.
An effective salesperson keeps the customer’s interests at heart to build a long- term relationship by solving a customer’s problems.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
ⓞWith personal selling, the customer feels a greater need to listen and respond, even if the response is a polite “No thank-you.”
Setting the Total Promotion MixSetting the Total Promotion Mix
Promotion Tool—Sales Promotion.
Sales promotion includes a wide assortment of tools— coupons, contests, cents-off deals, premiums, and others— all of which have many unique qualities.
They attract consumer attention, offer strong incentives to purchase, and can be used to dramatize product offers and boost sagging sales.
Sales promotions invite and reward quick response.
Sales promotion effects are often short lived, however, and often are not as effective as advertising or personal selling in building long-run brand preference and customer relationships.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
28
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Tool—Public Relations.
PR is very believable—news stories, features, sponsorships, and events seem more real and believable to readers than ads do.
PR can also reach many prospects who avoid salespeople and advertisements—the message gets to buyers as “news” rather than as a sales-directed communication.
And, as with advertising, PR can dramatize a company or product.
Marketers tend to underuse PR or use it as an afterthought.
PR campaign used with other promotion mix elements can be very effective and economical.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Tool—Direct Marketing:
Although there are many forms of direct marketing—direct mail and catalogs, online marketing, telephone marketing, and others—they all share four distinctive characteristics.
Direct marketing is less public: The message is normally directed to a specific person.
Direct marketing is immediate and customized: Messages can be prepared very quickly and can be tailored to appeal to specific consumers.
Finally, direct marketing is interactive: It allows a dialogue between the marketing team and the consumer, and messages can be altered depending on the consumer’s response.
Thus, direct marketing is well suited to highly targeted marketing efforts and building one-to-one customer relationships.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
29
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Mix Strategies:
Marketers can choose from two basic promotion mix strategies: push promotion or pull promotion. Figure 5 contrasts the two strategies.
Figure 5: Push versus Pull Promotion Strategy
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Mix Strategies—Push Strategy:
A push strategy involves “pushing” the product through marketing channels to final consumers.
The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and promote it to final consumers.
For example, John Deere’s sales force works with Lowe’s, Home Depot, independent dealers, and other channel members, who in turn push John Deere products to final consumers.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
30
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Mix Strategies—Pull Strategy:
Using a pull strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product.
For example, Unilever promotes its Axe grooming products directly to its young male target market using TV and print ads, a brand Web site, its YouTube channel, and other channels.
If the pull strategy is effective, consumers will then demand the brand from retailers, such as CVS, Walgreens, or Walmart, who will in turn demand it from Unilever.
Thus, under a pull strategy, consumer demand “pulls” the product through the channels.
Some industrial-goods companies use only push strategies; some direct-marketing companies use only pull strategies. However, most large companies use some combination of both.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Mix Strategies:
Companies consider many factors when designing their promotion mix strategies, including the type of product/market and the product life-cycle stage. For example, the importance of different promotion tools varies between consumer and business markets.
Business-to-consumer (B-to-C) companies usually pull more, putting more of their funds into advertising, followed by sales promotion, personal selling, and then PR.
In contrast, business-to- business marketers tend to push more, putting more of their funds into personal selling, followed by sales promotion, advertising, and PR. In general, personal selling is used more with expensive and risky goods and in markets with fewer and larger sellers.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
31
Setting the Total Promotion MixSetting the Total Promotion Mix Promotion Mix Strategies:
The effects of different promotion tools also vary with stages of the product life cycle:
In the introduction stage, advertising and PR are good for producing high awareness, and sales promotion is useful in promoting early trial. Personal selling must be used to get the trade to carry the product.
In the growth stage, advertising and PR continue to be powerful influences, whereas sales promotion can be reduced because fewer incentives are needed. In the mature stage, sales promotion again becomes important relative to advertising. Buyers know the brands, and advertising is needed only to remind them of the product.
In the decline stage, advertising is kept at a reminder level, PR is dropped, and salespeople give the product only a little attention. Sales promotion, however, might continue to be strong.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Setting the Total Promotion MixSetting the Total Promotion Mix Integrating the Promotion Mix:
Having set the promotion budget and mix, the company must now take steps to see that each promotion mix element is smoothly integrated.
Integrating the promotion mix starts with customers. Whether it’s advertising, personal selling, sales promotion, PR, or direct marketing, communications at each customer touchpoint must deliver consistent messages and positioning.
An integrated promotion mix ensures that communications efforts occur when, where, and how customers need them.
To achieve an integrated promotion mix, all of the firm’s functions must cooperate to jointly plan communications efforts.
Integrated promotion mix maximizes the combined effects of all a firm’s promotional efforts.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
32
Socially Responsible Marketing CommunicationSocially Responsible Marketing Communication
Advertising and Sales Promotion:
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. They must avoid ads that have the capacity to deceive, even though no one actually may be deceived.
Sellers must avoid bait-and-switch advertising that attracts buyers under false pretenses.
Beyond simply avoiding legal pitfalls, such as deceptive or bait-and-switch advertising, companies can use advertising and other forms of promotion to encourage and promote socially responsible programs and actions.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
ⓞ Promoting socially responsible actions: Frito-Lay ran ads promoting the compostable packaging for its SunChips brand.
Socially Responsible Marketing CommunicationSocially Responsible Marketing Communication
Personal Selling:
A company’s salespeople must follow the rules of “fair competition.”
For example, salespeople may not lie to consumers or mislead them about the advantages of buying a particular product.
To avoid bait-and-switch practices, salespeople’s statements must match advertising claims.
Much personal selling involves business-to-business trade. In selling to businesses, salespeople may not offer bribes to purchasing agents or others who can influence a sale.
Finally, salespeople must not disparage competitors or competing products by suggesting things that are not true.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
12/4/2020
33
Individual Assignment # 5Individual Assignment # 5
Title: Communicating Customer Value: Integrated Marketing Points to be covered: 1) Define IMC and discuss how marketers
implement it. 2) Discuss the factors to consider with regard
to message structure when designing a message.
3) Discuss the two basic promotion mix strategies. Recommend a promotion mix for a brand of peanut butter implementing primarily a push promotion strategy. Then recommend a promotion mix for the same brand implementing primarily a pull promotion strategy.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
Individual Assignment # 5Individual Assignment # 5
Instruction for the assignment:
Type of attached file: word document file attached through course messages on the BlackBoard.
Name of word file: Assignment 5
Deadline: Saturday, 12/12/2020
Grades assigned: 10 Marks.
You should have a cover page for your assignment involving the following information: Course Name and its Code; Assignment Title; Student Full Name; Student ID No.; Submitted to whom, Date of Submission.
A list of References used should be added by the end of Assignment.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
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34
THANK YOU
Thank you for being with me today and please feel free to ask any questions.
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King Abdul Aziz University – Faculty of Tourism Event Sales and Marketing - Master in Event Management Communicating Customer Value: Integrated Marketing
Assoc. Prof. Dr. Reda Gadelrab September, 2020
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