Catching the Buzz: Promotional Strategy and Integrated Marketing Communication

marketing communication communications model promotion mix Chapter Objectives marketing communication communications model promotion mix

word of mouth marketing, buzz marketing, viral marketing, Chapter Objectives word of mouth marketing, buzz marketing, viral marketing, guerrilla marketing provide effective marketing communication

Chapter Objectives (cont’d) integrated marketing communication characteristics database marketing in integrated marketing communication IMC plan & stages

Tailoring marketing communication to consumers

Tailoring Marketing Communication to Consumers Promotion: the coordination of marketing communication efforts to influence attitudes or behavior

Tailoring Marketing Communication to Consumers Informs Reminds Persuades Builds relationships

Tailoring Marketing Communication to Consumers (cont’d) Integrated marketing communication (IMC): A process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences Consumers see the variety of messages from a firm as a whole.

Figure 12.2: The Communication Model

The Communication Model Encoding: process of translating an idea into a form of communication Source: organization or individual sending the message FRAM.COM

The Communication Model Message: communication in physical form Medium: communication vehicle used to reach members of a target audience FRAM.COM

The Communication Model (cont’d) Receiver: individual or organization that intercepts and interprets the message Decoding: process whereby a receiver assigns meaning to a message

The Communication Model (cont’d) Noise: anything that interferes with effective communication Feedback: receiver’s reactions to the message

Marketing Communication Strategy & Promotion Mix

Marketing Communication Strategy and Promotion Mix communication elements the marketer controls

Marketing Communication Strategy and Promotion Mix Advertising Sales promotion Public relations Personal selling Direct marketing

Figure 12.3: Control Continuum

APPEALS

Advertising: Mass Appeals Non-personal communication from an identified sponsor using mass media

Sales promotion: Mass Appeals (cont’d) contests, coupons, & other incentives designed to build interest or encourage product purchase during a specified period

Public relations: Mass Appeals (cont’d) communication activities that create/maintain a positive image of a firm and its products

Personal selling: Personal Appeals direct interaction between a company representative and a customer

Direct marketing: efforts to gain a direct response Personal Appeals Direct marketing: efforts to gain a direct response from individual consumers

Buzz: Buzz Appeals everyday people who help marketing efforts by talking about a product or a company to others

Buzz marketing: high-profile entertainment or news Buzz Appeals Buzz marketing: high-profile entertainment or news that gets people to talk about the brand

Viral marketing: Buzz Appeals entertaining or informative messages designed to be passed along

Buzz Appeals (cont’d) activities that give people a reason Word of mouth (WOM) marketing: activities that give people a reason to talk about the product

Buzz Appeals (cont’d) Guerrilla marketing: activities that “ambush” consumers with promotional content where not expected

Group Activity Your team is a word-of-mouth marketing department for a sports equipment company such as Spalding. Develop 3 ways to create buzz for your company’s products. SPALDING.COM

IMC

Integrated Marketing Communication (IMC) marketing communication programs create and maintain long-term relationships with customers by satisfying their needs.

Integrated Marketing Communication (IMC) IMC unifies all marketing communication tools to send a consistent, persuasive message.

Characteristics of IMC Creates a single unified voice for firm. Begins with the customer. develop relationships with customers through 1-to-1 marketing. Relies on 2-way communication.

Characteristics of IMC (cont’d) Focuses on stakeholders, not just customers. Generates a continuous stream of communication. Measures results based on actual feedback.

IMC & Database marketing

IMC and Database Marketing creation of ongoing relationship with a set of customers who have identifiable interest in a product

IMC and Database Marketing Customers’ responses = ongoing communication process. Is interactive Builds relationships Locates new customers Stimulates cross-selling Is measurable Yields trackable responses

Developing the IMC plan (Figure 12.4)

Developing the IMC Plan Step 1: Identify target audiences

Developing the IMC Plan Step 2: Establish communication objectives Create awareness Inform the market Create desire Encourage purchase and trial Build loyalty

Figure 12.5: The Hierarchy of Effects – Step 2

Step 3: Determine and allocate the marketing communication budget Determine total promotion budget Top-down budgeting techniques Percentage-of-sales Competitive-parity Bottom-up Objective-task

Step 3: Determine and allocate the marketing communication budget Push strategy: move products through the channel by convincing channel members to offer them Pull strategy: move products through the channel by building desire among consumers, convincing retailers to respond to demand

Step 3: Determine and allocate the marketing communication budget Allocate the budget to a specific promotion mix Organizational factors Market responsiveness Market potential Market size

Step 4: Design the promotion mix Type of appeal AIDA model: communication goals of attention, interest, desire, & action Structure of the appeal Communication channel THEWOMB.COM

Step 5: Evaluate the effectiveness of the communication program Are communication objectives adequately translated into marketing communication that is reaching the right target market?

The end

Real People, Real Choices General Motors R* Works (Vince O’Brien) Needed marketing plan supporting Chevy’s commitment to skiing while increasing sales at local dealerships Option 1: continue ski promotion but better qualify test-drive traffic Option 2: offer season passes to local ski mountain as purchase incentive for designated SUV Option 3: scrap ski relationship and look for another platform to promote Chevy’s products

Discussion With an IMC program, firms need to coordinate all marketing communication activities. What inherent problems do you see in ensuring this coordination?

Group Activity/Discussion Traditional promotion elements include advertising, sales promotion, public relations, personal selling and direct marketing. --Which do you feel is most effective for each of the following clients? 1. a cellular phone service provider 2. a hotel 3. a university 4. the manufacturer of a new soft drink

Discussion Some say buzz marketing is just a craze that will fade in a year or two. --Is it here to stay? --Do you think buzz is effective? Why or why not?

Discussion Consumers are concerned that databases invade privacy. --Do you feel this is a valid concern? --How can marketers use databases effectively and protect individuals’ rights?

Discussion Some people argue there’s really nothing new about IMC. What do you think? Why? Why is the IMC plan superior to conventional advertising?

Real People, Real Choices General Motors R* Works (Vince O’Brien) Vince chose option 2: offer season passes to local ski mountain as purchase incentive for designated SUV. Chevrolet has completed its sixth year of this Ski Chevy promotional program, and it’s all smooth going from here! SKICHEVY.COM

Marketing in Action Case: You Make the Call What is the decision facing American Express? What factors are important in understanding this decision situation? What are the alternatives? What decision(s) do you recommend? What are some ways to implement your recommendation?

Keeping It Real: Fast-Forward to Next Class, Decision Time at BzzAgent Meet Joe Chernov, director of PR at BzzAgent, Inc. Buzz marketers accused of “perpetrating large scale deception upon consumers” The decision: What public relations strategy to use to respond to the criticism?