Mma6e Chapter 17 Final

Marketing Management:
An Asian Perspective,
6th Edition
Instructor Supplements
Created by Geoffrey da Silva
Designing And Managing Integrated Marketing
Communications
3 © Pearson Education South Asia Pte Ltd 2013. All rights reserved
Learning Issues for Chapter Seventeen
1. What is the role of marketing communications?
2. How marketing communications work?
3. What are the major steps in developing effective

communications?
4. What is the communications mix and how should it be set?
5. What is an integrated marketing communications program?
Chapter Outline
• Modern marketing calls for more than developing a good

product, pricing it attractively, and making it accessible to
target customers.
• Companies must also communicate with present and

potential stakeholders, and with the general public.
• For most marketers, therefore, the question is not whether to

communicate but rather what to say, how and when to say it,
to whom, and how often.
Chapter Outline
• Consumers can turn to hundreds of cable and satellite TV channels,

thousands of magazines and newspapers, and millions of Internet
pages.
• They are taking a more active role in deciding what communications

they want to receive as well as how they want to communicate to
others about the products and services they use.
• To effectively reach and influence target markets, holistic marketers

are creatively employing multiple forms of communications.
• Done right, marketing communications can have a huge payoff.
The Role of Marketing Communications
• Marketing communications are the means by which firms attempt to

inform, persuade, and remind consumers—directly or indirectly—
about the products and brands that they sell.
• Marketing communications represent the “voice” of the brand and

are a means by which it can establish a dialogue and build
relationships with consumers.
• By strengthening customer loyalty, marketing communications can

contribute to customer equity.
• Marketing communications also work for consumers when they

show how and why a product is used, by whom, where, and when.
The Changing Marketing Communication
Environment
• Technology and other factors have profoundly changed the way
consumers process communications and even whether they choose
to process the information.
• The rapid diffusion of powerful broadband Internet connections and

ad-skipping digital video recorders have eroded the effectiveness of
the mass media.
• Consumers not only have more choices of media, they can also
decide whether and how they want to receive commercial content.
• There has been a rapid fragmentation of audiences in mass media

such as TV.
The Changing Marketing Communication
Environment
• Marketing communications in almost every medium and form
have been on the rise, and some consumers feel they are
increasingly invasive.
• Marketers must be creative in using technology but not

intrude in consumers’ lives.
Creative Use of New Technology in Media
Lancôme announced the debut of its new mascara with this form of advertising. Its mascara poster
ad is made from electronic paper—a technology that allows paper to be written and rewritten
repeatedly. Thus, Lancôme’s ad is a paper poster hanging from the ceiling of a subway train with the
image changing. This paper technology allows for new images to be refreshed constantly
Marketing Communications and Brand Equity
In this new communications environment, although advertising

is often a central element of a marketing communications
program, it is usually not the only one—or even the most
important one—in terms of building brand equity and driving
sales.
Using MC To Build Brand Equity—IKEA in Japan
Rather than using mere poster ads, IKEA Japan generated buzz by delivering a brand experience
with its out-of-the-box “train jack” ad campaign.
Marketing Communications and Brand Equity
• Marketing communication activities contribute to brand equity

in many ways:
– by creating awareness of the brand;
– linking the right associations to the brand image in consumers’

memory;
– eliciting positive brand judgments or feelings; and
– strengthening consumer loyalty.
Marketing Communications Mix
The marketing communications mix consists of eight major

modes of communication:
1.Advertising—Any paid form of non-personal presentation and

promotion of ideas goods, or services by an identified sponsor
via print, broadcast, network, electronic and display media.
2.Sales promotion—A variety of short-term incentives to

encourage trial or purchase of a product or service, including
consumer, trade, and business and sales force promotions.
3. Events and experiences—Company-sponsored activities and

programs designed to create daily or special brand-related
interactions with consumers, including sports arts, and cause
events.
4. Public relations and publicity—A variety of programs directed

internally to employees of the company or externally to
consumers, other firms, the government, and media to
promote or protect a company’s image or its individual
products.
5. Direct marketing—Use of mail, telephone, fax, email, or the

Internet to communicate directly with or solicit response or
dialogue from specific customers and prospects.
6. Interactive marketing—Online activities and programs

designed to engage customers or prospects and directly or
indirectly raise awareness, improve image, or elicit sales of
products and services.
7. Word-of-mouth marketing—People-to-people oral, written, or

electronic communications that relate to the merits or
experiences of purchasing or using products or services.
8. Personal selling—Face-to-face interaction with one or more

prospective purchasers for the purpose of making
presentations, answering questions, and procuring orders.
Table 17.1: Common Communication Platforms
• Company communication goes beyond those specific

platforms.
• The product’s styling and price, the shape and color of the
package, the salesperson’s manner and dress, the store
décor, the company’s stationery—all communicate
something to buyers.
• Every brand contact delivers an impression that can

strengthen or weaken a customer’s view of the company.
Marketing Communication Effects
• The way brand associations are formed does not matter.
• Marketing communication activities must be integrated to

deliver a consistent message and achieve the strategic
positioning.
• The starting point in planning marketing communications is a

communication audit that profiles all interactions
customers in the target market may have with the company
and all its products and services.
• Marketers need to assess which experiences and

impressions will have the most influence at each stage of
the buying process.
• Armed with these insights, they can judge marketing

communications according to their ability to affect
experiences and impressions, build customer loyalty and
brand equity, and drive sales.
• In building brand equity, marketers should be “media neutral”

and evaluate all communication options on effectiveness
(how well does it work?) and efficiency (how much does it
cost?).
The Communication Process Models
• Marketers should understand the fundamental elements of

effective communication.
• Two models are useful: a macro model and a micro model.
Macro Model of the Communication Process
• Figure 17.1 shows a macro-communication model with nine

elements.
• Two elements represent the major parties in a communication—

sender and receiver.
• Two represent the major communication tools—message and

media.
• Four represent major communication functions—encoding,

decoding, response, and feedback. The last element in the system
is noise (random and competing messages that may interfere with
the intended communication).
Figure 17.1: Elements in Communication Process
• The model emphasizes the key factors in effective

communication.
• Senders must know what audiences they want to reach and

what responses they want to get.
• They must encode their messages so that the target audience

can decode them.
• They must transmit the message through media that reach

the target audience and develop feedback channels to
monitor the responses.
• The more the sender’s field of experience overlaps with that

of the receiver, the more effective the message is likely to be.
• Note that selective attention, distortion, and retention

processes—concepts first introduced in Chapter 6—may be
operating during communication.
Micro Model of Consumer Responses
• Micro models of marketing

communications concentrate
on consumers’ specific
response to communications.
• All models assume that the

buyer passes through a:
i. Cognitive stage
ii. Affective stage
iii. Behavioral stage (in that
order)
Micro Model of Consumer Responses
• This “learn-feel-do” sequence is appropriate when the audience has a

high involvement with a product category perceived to have high
differentiation.
• An alternative sequence, “do-feel-learn” is relevant when the audience

has high involvement but perceives little or no differentiation within the
product category.
• A third sequence, “learn-do-feel” is relevant when the audience has low

involvement and perceives little differentiation within the product
category.
• By choosing the right sequence, the marketers can do a better job of

planning communications.
Hierarchy-of-Effects Model
• Here we will assume that the buyer has high involvement

with the product category and perceives high differentiation.
• A hierarchy-of-effects model in the context of a marketing

communication campaign:
– Awareness
– Knowledge
– Liking
– Preference
– Conviction
– Purchase
See Figure 17.2

Hierarchy-of-Effects Model
To increase the odds for a successful marketing communications

campaign, marketers must attempt to increase the likelihood
that each step occurs.
See Figure 17.2.
Figure 17.2: Response Hierarchy Models
Hierarchy-of-Effects Model—Key Stages
1. Awareness—If most of the target audience is unaware of the

object, the communicator’s task is to build awareness.
2. Knowledge—The target audience might have brand awareness but

not know much more.
3. Liking—If target members know the brand, how do they feel about
it?
4. Preference—The target audience might like the product but not

prefer it to others. In this case, the communicator must try to build
consumer preference by comparing quality, value, performance,
and other features to likely competitors.
Hierarchy-of-Effects Model—Key Stages
5. Conviction—A target audience might prefer a particular

product but not develop a conviction about buying it. The
communicator’s job is to build conviction and purchase intent
among the target audience.
6. Purchase—Finally, some members of the target audience

might have conviction but may not quite get around to
making the purchase. The communicator must lead these
consumers to take the final step, perhaps by offering the
product at a low price, offering a premium, or letting
consumers try it out.
To increase the odds for a successful marketing
communication campaign, marketers must attempt
to increase the likelihood that each step occurs.
1. The right consumer is exposed to the right message at the
right place and at the right time.
2. The ad causes the consumer to pay attention to it but does

not distract from the intended message.
3. The ad properly reflects the consumer’s level of

understanding about the product and the brand.
To increase the odds for a successful marketing
communication campaign, marketers must attempt
to increase the likelihood that each step occurs.
4. The ad correctly positions the brand in terms of desirable
and deliverable points-of-difference and points-of-parity.
5. The ad motivates consumers to consider purchase of the

brand.
6. The ad creates strong brand associations to all of these

stored communication effects so that they can have an effect
when consumers are considering making a purchase.
Developing Effective Communication
• There are eight steps in

developing effective
communications.
• The five basic ones are:

i. identifying the target
audience,
ii. determining the objectives,
iii. designing the
communications,
iv. selecting the channels, and
v. establishing the budget.
Figure 17.3: Steps in Developing Effective
Communications
Identify the Target Audience
• The process must start with a

clear target audience in
mind: potential buyers of the
company’s products, current
users, deciders, or
influencers; individuals,
groups, particular publics, or
the general public.
• The target audience is a

critical influence on the
communicator’s decisions on
what to say, and how, when,
where, and to whom to say
it.
• Although we can profile the target audience in terms of any of

the market segments identified in Chapter 8:
a. It’s often useful to do so in terms of usage and loyalty.

b. Is the target new to the category or a current user?
c. Is the target loyal to the brand, loyal to a competitor, or
someone who switches between brands?
d. If a brand user, is he or she a heavy or light user?
e. Communication strategy will differ depending on the answers.
f. Image analysis can be conducted to profile the target audience
in terms of brand knowledge to provide further insight.
Determine the Communication Objectives
1. Category need—Establishing a product or service category as necessary to

remove a perceived discrepancy between a current motivational state and
a desired motivational state.
2. Brand awareness—Fostering the customer’s ability to recognize or recall

the brand within the category, in sufficient detail to make a purchase.
3. Brand attitude—Helping consumers evaluate the brand’s perceived ability

to meet a currently relevant need.
4. Brand purchase intention—Moving consumers to decide to purchase the

brand or take purchase-related action
The most effective communications can often achieve

multiple objectives.
Design the Communication
Formulating the communication to achieve the desired response

will require solving three problems:
a. what to say (message strategy)
b. how to say it (creative strategy), and
c. who should say it (message source).
Message Strategy
• In determining message strategy, management searches for

appeals, themes, or ideas that will tie into the brand
positioning and help to establish points-of-parity or points-of-
difference.
• Some of these may be related directly to product or service

performance (the quality, economy, or value of the brand).
• Others may relate to more extrinsic considerations (the brand

as being contemporary, popular, or traditional).
Message Strategy
John Maloney saw buyers as expecting one of four types of

reward from a product:
a. Rational
b. Sensory
c. Social
d. Ego satisfaction
Creative Strategy
• Communication effectiveness depends on how a message is

being expressed as well as the content of the message itself.
• An ineffective communication may mean that the wrong

message was used or the right message was just being
expressed poorly.
• Creative strategies are how marketers translate their

messages into a specific communication.
• Creative strategies can be broadly classified as involving

either informational or transformational appeals.
Informational Appeal
• An informational appeal elaborates on product or service

attributes or benefits.
• Examples are:
a. Problem solving ads
b. Product demonstration ads
c. Product comparison ads
d. Testimonials
• Informational appeals assume very rational processing of the

communication on the part of the consumer—logic and
reason “rule.”
Types of Informational Appeals
• There are three types of informational appeals:
1. Conclusion drawing
2. One-versus two-sided arguments
3. Order of argument presentations
• Each of these appeals has their supporters and distracters

and depends heavily upon the target audience for the
message.
Transformational Appeal
• A transformational appeal elaborates on a non-product-

related benefit or image.
• It might depict:
– What kind of person uses a brand
– What kind of experience results from using the brand
• Transformational appeals often attempt to stir up emotions

that will motivate purchase.
Use of Transformational Appeals
Heaven & Earth’s campaign stirs interest and excitement by delivering the ad in 3-D and offering a
sampling experience.
Using Negative Appeals
• Communicators use negative appeals such as fear, guilt, and shame

to get people to do things (brush their teeth, have an annual health
checkup) or stop doing things (smoking, alcohol abuse, overeating).
• Fear appeals work best when they are not too strong.
• Further, fear appeals work better when source credibility is high and
when the communication promises to relieve, in a believable and
efficient way, the fear it arouses.
• Messages are most persuasive when they are moderately discrepant

with what the audience believes.
Emotional Appeals
• Communicators also use positive emotional appeals such as humor,

love, pride, and joy.
• Motivational or “borrowed interest” devices are often employed to

attract consumer attention and raise their involvement with an ad.
• Borrowed interest techniques are thought to be necessary in the

tough new media environment characterized by low involvement
consumer processing and while competing with ad and
programming clutter.
• These borrowed interest approaches can attract attention and

create more liking and belief in the sponsor
Getting Attention
• Attention getting tactics are often too effective and distract

from brand or product claims.
• One challenge in arriving at the best creative strategy is

figuring out how to “break through the clutter” to attract the
attention of the consumer—but still be able to deliver the
intended message.
• The magic of advertising is to bring concepts to life in the

minds of the consumer target.
Message Source
• Messages delivered by attractive or popular sources can

potentially achieve higher attention and recall, which is why
advertisers often use celebrities as spokespeople.
• Celebrities are likely to be effective when they personify a

key product attribute.
• What is important is the spokesperson’s credibility.
• Pharmaceutical companies want doctors to testify about

product benefits because doctors have high credibility.
Message Source
Korean star, Lee Young Ae, was chosen to be the spokesmodel for LG Electronics after the success of
her Korean drama, Daejanggeum, throughout Asia. The distinctive characteristics of her role in the
drama, caring and out-of-box thinker, perfectly match LG’s vision as an innovative company that
cares for its customers.
Factors Affecting Source Credibility
• Expertise is the specialized knowledge the communicator possesses

to back the claim.
• Trustworthiness is related to how objective and honest the source is

perceived to be. Friends are trusted more than strangers or
salespeople, and people who are not paid to endorse a product are
viewed as more trustworthy than people who are paid.
• Likability describes the source’s attractiveness. Qualities like

candor, humor, and naturalness make a source more likable.
• The most highly credible source would be a person who scores high
on all three dimensions.
Marketing Insights: Celebrity Endorsements as a
Strategy
A well-chosen celebrity can
draw attention to a product or a Jeremy Lin—Linsanity, craze over NBA New
York Knicks player Jeremy Lin of American-
brand. Celebrities can play a born Chinese of Taiwanese heritage, is
attracting much Asian sponsorships as an
strategic role for their brands; endorser.
using celebrities poses certain

risks.
Western celebrities are heavily used in

Japan. Japan has a larger advertising
budget and tends to remunerate
celebrities higher than the U.S.
Principle of Congruity
• If a person has a positive attitude toward a source and a

message, or a negative attitude toward both, a state of
congruity is said to exist.
• What happens if a consumer holds one attitude towards the

source and another toward the product?
Principle of Congruity
• Attitude change will take place in the direction of increasing

the amount of congruity between the two evaluations
• The consumer will end up respecting one somewhat less or

somewhat more.
• The principle of congruity implies that communicators can use

their good image to reduce some negative feelings toward a
brand but in the process might lose some esteem with the
audience.
Selecting the Communication Channels
• Selecting efficient channels to carry the message becomes

more difficult as channels of communication become more
fragmented and cluttered.
• Communication channels may be personal and non-

personal.
• Within each are many sub-channels
Personal Communication Channels
• Personal communication channels involve two or more persons

communicating directly face-to-face, person to audience, over the
telephone, or through e-mail.
• Personal communication channels derive their effectiveness through

individualized presentation and feedback.
• Advocate channels consist of company salespeople contacting buyers in the

target market.
• Expert channels consist of independent experts making statements to

target buyers.
• Social channels consist of neighbors, friends, family members, and

associates talking to target buyers.
Personal Channels
In Taiwan, word of mouth spread the popularity of Mister Donut.
Personal Channels Carry More Influence
• One is with products that are expensive, risky, or purchased

infrequently.
• The other is where the product suggests about the user’s

status or taste.
• People often ask others for a recommendation for a doctor,

plumber, hotel, lawyer, accountant, architect, insurance
agent, interior decorator, or financial consultant.
Personal Channels Carry More Influence
• If we have confidence in the recommendation, we normally

act on the referral.
• In such cases, the recommender has potentially benefited the

service provider as well as the service seeker.
• Service providers clearly have a strong interest in building

referral sources.
Non-Personal (Mass) Communication Channels
• Non-personal communication channels are communications directed to

more than one person and includes media, sales promotions, events, and
publicity.
• Media includes print, broadcast, network, electronic, and display media.
• Sales promotions consist of consumer promotions, trade promotions, and

business and sales-force promotion.
• Events and experiences include sports, arts, entertainment, and cause

events.
• Public relations include communications directed internally or externally

to consumers, other firms, media, and government.
• Much of the recent growth of non-personal channels has been

with events and experiences.
• A company can build its brand image through creating or

sponsoring events.
• Companies are searching for better ways to quantify the

benefits of sponsorship and are demanding greater
accountability.
• Companies can create events designed to surprise the public

and create a buzz.
• The increased use of attention-getting events is a response to

the fragmentation of the media.
• The lasting effects of events on brand awareness, knowledge,

or preference will depend upon the quality of the product, the
event itself, and its execution.
Sponsorships—Samsung
Samsung sponsors sports events such as the Olympics to enhance its image.
Guerilla Marketing Tactics
To promote its new line of televisions, LG pretended to launch a fake new TV series, even holding a
heavily promoted premiere
Integration of Communication Channels
• Although personal communication is often more effective than

mass communication, mass media might be the major means
of stimulating personal communication.
• Mass communications affect personal attitudes toward

behavior through a two-step process:
– Ideas flow from mass media to opinion leaders.
– From opinion leaders to the less media-involved population
groups.
Implications of Two-Step Flow
• The influence of mass media on public opinion is not as

direct, powerful, and automatic as supposed.
• It is mediated by opinion leaders.
• This two-step flow challenges the notion that consumption

styles are primarily influenced by a “trickle down” or “trickle
up” effect from mass media.
Implications of Two-Step Flow
• People interact primarily with their own social groups and

acquire ideas from opinion leaders in their group.
• The two-step process suggests that mass communicators

should direct messages specifically to opinion leaders and let
them carry the messages to others.
Establish the Total Marketing Communications
Budget
One of the most difficult
marketing decisions is
determining how much to spend
on promotion. Industries and
companies vary considerably in
how much they spend on
promotion.
Establish the Total Marketing Communications
Budget
Companies decide on the
promotion budget in four
common ways:
a. the affordable method
b. percentage-of-sales method
c. competitive-parity method
d. the objective-and-task method
Affordable Method
• Some companies set the promotion budget at what they think

the company can afford.
• This method completely ignores the role of promotion as an

investment and the immediate impact on sales volume.
• It leads to uncertain annual budget, and makes long-range

planning difficult.
Percentage-of-Sales Method
• Some companies set promotion expenditures at a specified

percentage of sales (current or anticipated) or the sales price.
• Supporters of the percentage-of-sales method see a number

of advantages.
i. Promotion expenditures will vary with what the company can

“afford.”
ii. It encourages management to think of the relationship among
promotion cost, selling price, and profit per unit.
iii. It encourages stability when competing firms spend
approximately the same percentage of their sales on promotion.
Drawbacks of the Percentage-of-Sales Method
The percentage-of-sales method has little to justify it.
i. It views sales as the determiner of promotion rather than as

the result.
ii. It leads to a budget set by the availability of funds rather

than by market opportunities.
iii. It discourages experimentation with countercyclical

promotion or aggressive spending.
Drawbacks of the Percentage-of-Sales Method
iv. Year-to-year sales fluctuations interfere with long-range

planning.
v. There is no logical basis for choosing the specific percentage.
vi. It does not encourage building the promotion budget by

determining what each product and territory deserves.
Competitive-Parity Method
• Some companies set their promotion budget to achieve

share-of-voice parity with competitors.
• Two arguments are made in support of the competitive-parity

method.
– Competitors’ expenditures represent the collective wisdom of the

industry.
– Maintaining competitive parity prevents promotion wars.
• Neither argument is valid.
Objective-and-Task Method
• The objective-and-task method calls upon marketers to

develop promotion budgets by defining specific objectives,
determining the tasks that must be performed to achieve
these objectives, and estimating the costs of performing
these tasks.
• The sum of these costs is the proposed promotion budget.
• The objective-and-task method has the advantage of

requiring management to spell out its assumptions about the
relationship among dollars spent, exposure levels, trial rates,
and regular usage.
Example of objective-and-task method: Pocari wants to
introduce a new natural energy drink called Xburst for the
casual athlete. Its objectives might be as follows:
1. Establish the market share goal. The company estimates 50
million potential users and sets a target of attracting 8
percent of the market—that is, four million users.
2. Determine the percentage of the market that should be

reached by advertising. The advertiser hopes to reach 80
percent (40 million prospects) with the advertising message.
3. Determine the percentage of aware prospects that should be
persuaded to try the brand. The advertiser would be pleased
if 25 percent of aware prospects (10 million) tried Xburst.
This is because it estimates that 40 percent of all triers, or
four million people, would become loyal users. This is the
market goal.
4. Determine the number of advertising impressions per 1

percent trial rate. The advertiser estimates that 40
advertising impressions (exposures) for every 1 percent of
the population would bring about a 25 percent trial rate.
5. Determine the number of gross rating points that would have
to be purchased. A gross rating point is one exposure to 1
percent of the target population. Because the company
wants to achieve 40 exposures to 80 percent of the
population, it will want to buy 3,200 gross rating points.
6. Determine the necessary advertising budget on the basis of

the average cost of buying a gross rating point. To expose 1
percent of the target population to one impression costs an
average of $3,277. Therefore, 3,200 gross rating points
would cost $10,486,400 (= $3,277 x 3,200) in the
introductory year.
Deciding on the Marketing Communications Mix
• Companies must allocate the marketing communication budget over

the six major modes of communications—advertising, sales
promotion, public relations and publicity, events and experiences,
personal selling, and direct marketing.
• Within the same industry, companies can differ considerably in their

media and channel choices.
• Companies are always searching for ways to gain efficiency by

replacing one promotional tool with others.
Deciding on the Marketing Communications Mix
• Many companies are replacing some field sales activity with

ads, direct mail, telemarketing, and online marketing.
• Companies are shifting advertising funds into sales

promotion.
• “Marketing Insight: Marketing Communication and the

Urban Chinese Consumer” reports some research findings
on the advertising and promotional attitudes of mainland
consumers.
Advertising
• Advertising can be used to build up a long-term image for a product or

trigger quick sales.
• Advertising can efficiently reach geographically dispersed buyers.
• Certain types of advertising require large budgets; others do not.
• Just the presence of advertising might have an effect on sales.
• Consumers might believe that the advertised brand must offer a “good
value.”
• Because of the many forms of advertising, it is difficult to make

generalizations.
Qualities of Advertising
• Pervasiveness—Advertising permits the seller to repeat a message

many times. It also allows the buyer to receive and compare the
messages of various competitors. Large-scale advertising says
something positive about the seller’s size, power, and success.
• Amplified expressiveness—Advertising provides opportunities for

dramatizing the company and its products through the artful use of
print, sound, and color.
• Impersonality—The audience does not feel obligated to pay

attention or respond to advertising. Advertising is a monologue in
front of, not a dialogue with, the audience.
Sales Promotions
• Companies use sales promotion tools—coupons, contests,

premiums, and the like—to draw a stronger and quicker
buyer response.
• Sales promotion can be used for short-run effects such as to

highlight product offers and boost sagging sales.
Three distinctive benefits of Sales Promotions
1. Communication—They gain attention and may lead the

consumer to the product.
2. Incentive—They incorporate some concession, inducement,

or contribution that gives value to the consumer.
3. Invitation—They include a distinct invitation to engage in the

transaction now.
Sales Promotions—Use of Premiums
McDonald’s uses premiums as a sales promotion tool to draw consumers to buy.
Public Relations
• Marketers tend to underuse public relations, yet a well-

thought-out program coordinated with the other
communications-mix elements can be extremely effective.
• The appeal of public relations and publicity is based on three

distinctive qualities:
a. High credibility—News stories and features are more authentic
and credible to readers than ads.
b. Ability to catch buyers off guard—Public relations can reach
prospects who prefer to avoid salespeople and advertisements.
c. Dramatization—Public relations have the potential to dramatize
a company or product.
Public Relations and Philanthropy
Procter & Gamble’s philanthropic activities in China builds good relations between the company and
the society.
Events and Experiences
There are many advantages to events and experiences:
1. Relevant—A well-chosen event or experience can be seen as

highly relevant as the consumer gets personally involved.
2. Involving—Given its live, real-time quality, consumers can

find events and experiences more actively engaging.
3. Implicit—Events are more of an indirect “soft sell.”
Sponsorship of the Youth Olympics (Singapore)
The first Youth Olympic Games held in Singapore saw sponsorships from Samsung, McDonald’s,
Coca-Cola, and Visa.
Direct and Interactive Marketing
• Direct and interactive marketing takes many forms—over the

phone, online, or in person.
• They share three distinctive characteristics.
• Direct and interactive marketing messages are:

i. Customized—The message can be prepared to appeal to the
addressed individual.
ii. Up-to-date—A message can be prepared very quickly.
iii. Interactive—The message can be changed depending on the
person’s response.
Interactive Marketing
Frisomum engaged in an interactive augmented reality campaign to show the development of a

virtual fetus alongside an actual baby’s
Word-of-Mouth Marketing
• Word of mouth also takes many forms online or off-line.
• Three noteworthy characteristics are:
– Credible—Because people trust others they know and respect,

word of mouth can be highly influential.
– Personal—Word of mouth can be a very intimate dialogue that

reflects personal facts, opinions, and experiences.
– Timely—It occurs when people want it to and when they are most
interested, and it often follows noteworthy or meaningful events
or experiences.
Personal Selling
• Personal selling is the most effective tool at later stages of

the buying process, particularly in building up buyer
preference, conviction, and action.
• Personal selling has three distinctive qualities:

i. Personal interaction—Personal selling involves an immediate
and interactive relationship between two or more persons. Each
party is able to observe the other’s reactions.
ii. Cultivation—Personal selling permits all kinds of relationships to
spring up, ranging from a matter-of-fact selling relationship to a
deep personal friendship.
iii. Response—Personal selling makes the buyer feel under some
obligation for having listened to the sales talk.
Factors in Setting the Marketing Communications
Mix
• Companies must consider several factors in developing their
communications mix:
– type of product market
– consumer readiness to make a purchase, and
– stage in the product life cycle.
• Also important is the company’s market rank.
Type of Product Market
• Communication allocations vary between consumer and business markets.
• Consumer markets tend to spend comparatively more on sales promotion

and advertising.
• Business marketers tend to spend comparatively more on personal selling.
• In general, personal selling is used more with:

– Complex
– Expensive
– Risky goods
– In markets with fewer and larger sellers (hence business markets)
Advertising combined with personal selling can
increase sales in the business markets, advertising
still plays a significant role:
i. Advertising can provide an introduction to the company and its products.
ii. If the product has new features, advertising can explain them.
iii. Reminder advertising is more economical than sales calls.
iv. Advertisements offering brochures and carrying the company’s phone

number or web address are an effective way to generate leads for sales
representatives.
v. Sales representatives can use copies of the company’s ads to legitimize

their company and products.
vi. Advertising can remind customers how to use the product and reassure
them about their purchase.
Corporate Advertising
• Advertising combined with personal selling can increase sales

over what would have resulted if there had been no
advertising.
• Corporate advertising can improve a company’s reputation

and improve the sales force’s chances of getting a favorable
first hearing and early adoption of the product.
Personal selling can also make a strong contribution
in consumer-goods marketing.
• An effectively trained
company sales force can
make four important
contributions.
i. Increased stock position
ii. Build enthusiasm
iii. Conduce missionary selling
iv. Manage key accounts
Buyer-readiness Stage
• Communication tools vary in cost-effectiveness at different

stages of buyer readiness.
• Advertising and publicity play the most important roles in the
awareness-building stage.
• Customer comprehension is primarily affected by advertising
and personal selling.
• Customer conviction is influenced mostly by personal selling.
• Closing the sale is influenced mostly by personal selling and
sales promotion.
• Reordering is also affected mostly by personal selling, sales
promotion, and somewhat by advertising.
Figure 17.4: Cost-Effectiveness of Three Different
Communication Tools
Product Life-cycle Stage
• In the introduction stage, advertising and publicity have the highest

cost-effectiveness, followed by personal selling to gain distribution
coverage, and sales promotion to induce trial.
• In the growth stage, demand has its own momentum through word
of mouth.
• In the maturity stage, sales promotion, advertising, and personal

selling all grow more important, in that order.
• In the decline stage, sales promotion continues strong, advertising

and publicity are reduced, and salespeople give the product only
minimal attention.
Measuring Communication Results
• Senior managers want to know the outcomes and revenues

resulting from their communications investments.
• Too often, communications directors supply only outputs and

expenses.
• After implementing the communication plan, the

communications director must measure its impact on the
target audience.
Measuring Communication—Use of Smart Screens by
View Media
Smart screens are used on high-tech billboards in Singapore to capture characteristics of people
viewing the ad.
Measuring Results of Marketing Communications
• Members of the target audience are asked:

i. Whether they recognize or recall the message.
ii. How many times they saw it.
iii. What points they recall.
iv. How they felt about the message.
v. Previous and current attitudes toward the product and the
company.
• The communications director should also collect:

– Behavioral measures of audience response, such as how many
people bought the product, liked it, and talked to others about
it.
Agro Asia (Double A)
Given the low interest in the product category, Thai photocopying paper manufacturer Agro Asia
organized a regional campaign to increase brand awareness. Double A’s campaign was so attention
drawing that brand awareness rose to 70 to 97 percent regionally.
Feedback Measurement
• Figure 17.5 provides an example of good feedback

measurement.
• We find that 80 percent of the consumers in the total market

are aware of brand A, 60 percent have tried it, and only 20
percent who have tried it are satisfied.
• This indicates that the communication program is effective in

creating awareness, but the product fails to meet consumer
expectations.
Feedback Measurement
• In contrast, only 40 percent of the consumers in the total

market are aware of brand B, and only 30 percent have tried
it, but 80 percent of those who have tried it are satisfied.
• In this case, the communication program needs to be

strengthened to take advantage of the brand’s potential
power.
Figure 17.5: Current Consumer States for Two
Brands
Managing the Integrated Marketing Communications
Process
• Many companies still rely on only one or two communication tools.
• This practice persists in spite of the fragmenting of mass markets into a

multitude of minimarkets, each requiring its own approach; the
proliferation of new types of media; and the growing sophistication of
consumers.
• The wide range of communication tools, messages, and audiences makes it

imperative that companies move toward integrated marketing
communications.
• Companies must adopt a “360-degree view” of consumers to fully

understand all the different ways that communications can affect consumer
behavior in their daily lives.
What is ‘integrated marketing communications?’
The American Association of

Advertising Agencies defines
integrated marketing
communications (IMC) as “a
planning process designed to
assure that all brand contacts
received by a customer or
prospect for a product, service,
or organization are relevant to
that person and consistent over
time.”
Managing the Integrated Marketing Communications
Process
• This planning process evaluates the strategic roles of a variety of
communications disciplines—for example, general advertising,
direct response, sales promotion, and public relations—and skillfully
combines these disciplines to provide clarity, consistency, and
maximum impact through the seamless integration of messages.
• Media companies and ad agencies are expanding their capabilities

to offer multi-platform deals for marketers. These expanded
capabilities make it easier for marketers to assemble various media
properties—as well as related marketing services—in an integrated
communication program.
Coordinating Media
• Media coordination can occur across and within media types, but
marketers should combine personal and non-personal
communications channels through multiple-vehicle, multiple-stage
campaigns to achieve maximum impact and increase message
reach and impact.
• Promotions can be more effective when combined with advertising.
• Many companies are coordinating their online and off-line

communications activities. Web addresses in ads (especially print
ads) and on packages allow people to more fully explore a
company’s products, find store locations, and get more product or
service information.
Coordination in an IMC program—Nike
Nike’s “Kobe Mentu” campaign

involved coordinating a six-
episode reality show, a TV
commercial, out-of-home and
print advertisements, an online
site.
Implementing IMC
• In recent years, large ad agencies have substantially

improved their integrated offerings.
• To facilitate one-stop shopping, these agencies have acquired

promotion agencies, public relations firms, package-design
consultancies, Web site developers, and direct-mail houses.
• They are redefining themselves as communications

companies that assist clients to improve their overall
communications effectiveness by offering strategic and
practical advice on many forms of communication.
Implementing IMC
• Integrated marketing communications can produce stronger

message consistency and help build brand equity and create
greater sales impact.
• It forces management to think about every way the customer

comes in contact with the company, how the company
communicates its positioning, the relative importance of each
vehicle, and timing issues.
Implementing IMC
• It gives someone the responsibility—where none existed

before—to unify the company’s brand images and messages
as they come through thousands of company activities. IMC
should improve the company’s ability to reach the right
customers with the right messages at the right time and in
the right place.
Marketing Memo: How integrated is your IMC
program?
• In assessing the collective impact of an IMC program, the
marketer’s overriding goal is to create the most effective and
efficient communications program possible.
• The following six criteria can help determine whether

communications are truly integrated:
i. Coverage
ii. Contribution
iii. Commonality
iv. Complementarity
v. Versatility
vi. Cost
Schema for Chapter Seventeen
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Marketing Management:

1. What is the role of marketing communications?

2. How marketing communications work?

3. What are the major steps in developing effective

4. What is the communications mix and how should it be set?

5. What is an integrated marketing communications program?

• Modern marketing calls for more than developing a good

• Companies must also communicate with present and

• For most marketers, therefore, the question is not whether to

• Consumers can turn to hundreds of cable and satellite TV channels,

• They are taking a more active role in deciding what communications

• To effectively reach and influence target markets, holistic marketers

• Done right, marketing communications can have a huge payoff.

• Marketing communications are the means by which firms attempt to

• Marketing communications represent the “voice” of the brand and

• By strengthening customer loyalty, marketing communications can

• Marketing communications also work for consumers when they

• The rapid diffusion of powerful broadband Internet connections and

• There has been a rapid fragmentation of audiences in mass media

• Marketers must be creative in using technology but not

In this new communications environment, although advertising

• Marketing communication activities contribute to brand equity

– by creating awareness of the brand;

– linking the right associations to the brand image in consumers’

– eliciting positive brand judgments or feelings; and

– strengthening consumer loyalty.

The marketing communications mix consists of eight major

1.Advertising—Any paid form of non-personal presentation and

2.Sales promotion—A variety of short-term incentives to

3. Events and experiences—Company-sponsored activities and

4. Public relations and publicity—A variety of programs directed

5. Direct marketing—Use of mail, telephone, fax, email, or the

6. Interactive marketing—Online activities and programs

7. Word-of-mouth marketing—People-to-people oral, written, or

8. Personal selling—Face-to-face interaction with one or more

• Company communication goes beyond those specific

• Every brand contact delivers an impression that can

• The way brand associations are formed does not matter.

• Marketing communication activities must be integrated to

• The starting point in planning marketing communications is a

• Marketers need to assess which experiences and

• Armed with these insights, they can judge marketing

• In building brand equity, marketers should be “media neutral”

• Marketers should understand the fundamental elements of

• Two models are useful: a macro model and a micro model.

• Figure 17.1 shows a macro-communication model with nine

• Two elements represent the major parties in a communication—

• Two represent the major communication tools—message and

• Four represent major communication functions—encoding,

• The model emphasizes the key factors in effective

• Senders must know what audiences they want to reach and

• They must encode their messages so that the target audience

• They must transmit the message through media that reach

• The more the sender’s field of experience overlaps with that

• Note that selective attention, distortion, and retention

• Micro models of marketing

• All models assume that the

• This “learn-feel-do” sequence is appropriate when the audience has a

• An alternative sequence, “do-feel-learn” is relevant when the audience

• A third sequence, “learn-do-feel” is relevant when the audience has low

• By choosing the right sequence, the marketers can do a better job of

• Here we will assume that the buyer has high involvement

• A hierarchy-of-effects model in the context of a marketing

See Figure 17.2