Tiêu đề (1) Chapter 14 - Communicating Customer Value (IMC Strategy).pdf ✅

Objective Outline OBJECTIVE 1 Define the five promotion mix tools for communicating customer value. The Promotion Mix (449) OBJECTIVE 2 Discuss the changing communications landscape and the need for integrated marketing communications. Integrated Marketing Communications (450-455) OBJECTIVE 3 Outline the communication process and the steps in developing effective marketing communications. A View of the Communication Process (455-457) Steps in Developing Effective Marketing Communication (457-466) OBJECTIVE 4 Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. Setting the Total Promotion Budget and Mix (466-471) Socially Responsible Marketing Communication (471-472) 9780133795028_CH14.indd 446 27/10/16 6:56 pm
Communicating Customer Value: Integrated Marketing Communications Strategy Previewing the Concepts In this and the next three chapters, we’ll examine the last of the marketing mix tools—promotion. Companies must do more than just create customer value. They must also use promotion to clearly and persuasively communicate that value. You’ll find that promotion is not a single tool but rather a mix of several tools. Ideally, under the concept of integrated marketing communications, the company will carefully coordinate these promotion elements to deliver a clear, consistent, and compelling message about the organization and its products. We’ll begin by introducing you to the various promotion mix tools. Next, we’ll examine the rapidly changing communications environment and the need for integrated marketing communications. Finally, we’ll discuss the steps in developing marketing communications and the promotion budgeting process. In the next three chapters, we’ll visit the specific marketing communications tools. To start this chapter, let’s look at Lenovo and the reasons for going into social media communications. Lenovo Ryan Higa, a YouTube sensation, is Chinese electronics manufacturer Lenovo’s social media ambassador. The reasons for this choice are aplenty. People are attracted to Higa because he comes across as honest, down-to-earth, and authentic in his outlook with Chapter 14 unabashed goofiness in his videos, but more than that, Lenovo is a brand that in the United States, where Higa’s main audience of millennials lives, is better known for its business computers than its tablets. Choosing Higa is one step towards getting the brand and its gadgets better known to an audience that is unfamiliar with the Lenovo’s legacy from IBM. According to Lenovo, the company does not limit or try to guide Higa in what he says or does with the 447 Chapter 14 < Communicating Customer Value: Integrated Marketing Communications Strategy 9780133795028_CH14.indd 447 27/10/16 6:56 pm
Having a social personality as a spokesperson ensures a fan base for the brand who is engaged in what the personality has to talk about. product. It trusts that Higa will know what to do and not jeopardize the brand, and its market value, while creating videos. For instance in the first video, Higa discussed Lenovo’s Yoga tablet. The comments from viewers were many—there were a number of questions about the product and what it can do and, most importantly, there were responses to these questions from viewers that were not only accurate, instructive with links to other sites, but also favorable to the product and the company. Lenovo ended up having a crowdsourced group of brand ambassadors spreading favorable word of mouth. The comments of these organically-grown brand ambassadors are perceived as credible and objective as they were not paid by Lenovo to show such support. In the same way, using Higa as a social media ambassador may well be more effective than using a superstar celebrity. While the latter can garner attention, it is unlikely that a celebrity would engage the audience to the brand at a meaningful level. The audience may be more interested in the celebrity than in the product itself. In contrast, social media personalities have fan bases cultivated from an interest in what the personalities have to say. Hence, having a social media personality as a spokesperson ensures a fan base for the brand who is engaged in what the personality has to talk about.1 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. Just as good communication is important in building and maintaining any kind of relationship, it is a crucial element in a company’s efforts to build profitable customer relationships. Part 3 < 448 Designing a Customer-Driven Marketing Strategy and Integrated Marketing Mix 9780133795028_CH14.indd 448 27/10/16 6:56 pm
PRODUCT PRICE PROMOTION PLACE The Promotion Mix A company’s total promotion mix—also called its marketing communications mix—consists of the specific blend of advertising, sales promotion, public relations, personal selling, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. Definitions of the five major promotion tools follow:2 ■ 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. ■ 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. ■ Personal selling. Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. ■ Direct marketing. Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of direct mail, the telephone, direct-response television, email, the Internet, and other tools to communicate directly with specific consumers. Each category involves specific promotional tools used to communicate with consumers. 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, and more. 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 communication activity, the entire marketing mix—product, price, place, and promotion—must be coordinated for greatest communication impact. Promotion mix (or marketing communications mix) The specific blend of advertising, sales promotion, public relations, personal selling, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. 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. Public relations (PR) 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. Personal selling Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Direct marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. ❯ The entire marketing mix – Product, price, place, and promotion, must be coordinated for greatest communication impact. 449 Chapter 14 < Communicating Customer Value: Integrated Marketing Communications Strategy 9780133795028_CH14.indd 449 27/10/16 6:56 pm