1. Chapter 12
Catch the Buzz: Promotional Strategy and Integrated Marketing Communication

2. Chapter Objectives Understand the role of marketing communication
Understand the communication model
List and describe the traditional elements of the promotion mix
Explain how WOM, buzz, guerilla and experiential marketing, and consumer-generated media provide alternatives to traditional media forms
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

3. Chapter Objectives
Describe integrated marketing communication (IMC) and its characteristics
Explain the important role of database marketing in integrated marketing communication
Explain the stages in developing an IMC plan
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4. Real People, Real Choices: Decision Time at Tourism Vancouver
How can Tourism Vancouver best continue to play a lead role in the 2010 Olympic and Paralympic Winter games?
Option 1: Be the first agency to lead a specific initiative in advance of and during the games
Option 2: Form a tourism steering committee to draft and implement a joint 2010 tourism strategy
Option 3: Take action independent of the consortium’s joint tourism strategy
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5. Talk to Your Customers!
Promotion: The coordination of marketing communication efforts to influence attitudes or behavior
Marketing communications purpose:
Inform
Remind
Persuade
Build relationships
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6. Talk to Your Customers!
Integrated marketing communication (IMC): Process that marketers use 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

7. The Communication Model
The communication model explains how organizations create and transmit messages
The source encodes messages which are transmitted through media to receivers, who decode the message and provide feedback
Elements of the model:
Source: Firm or person sending a message
Encoding: Transmitting an idea into a form of communication that conveys meaning
Message: Communication in physical form that goes from a sender to a receiver
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8. The Communication Model
Elements of the model (cont.):
Medium: Communication vehicle through which a message is transmitted
Receiver: Individual or organization that intercepts and interprets the message
Decoding: Process whereby a receiver assigns meaning to a message
Noise: Anything that interferes with effective communication
Feedback: Receiver’s reactions to the message
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9. Marketing Communication Strategy and the Promotion Mix
Promotion mix: The major communication elements that the marketer controls
Advertising
Sales promotion
Public relations
Personal selling
Direct marketing
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

10. Mass Appeals
Advertising: Nonpersonal communication from an identified sponsor using mass media
Provides marketers with total control
Rich and dynamic advertising images can help to build or reinforce brand image
May provide factual information or offer reminders to consumers
Lacks credibility with cynical consumers
Extremely expensive
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

11. Mass Appeals
Sales promotion: Contests, coupons, and other incentives designed to build interest or encourage product purchase during a specified period
Provides retailers with incentives to support a brand
Builds retailer and consumer excitement
Encourages immediate purchase and trial
Reaches price-sensitive consumers
Does not focus on building brand loyalty
Promotional clutter is hard to break through
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

12. Mass Appeals
Public relations: Communication activities that create or maintain a positive image of a firm and its products
Relatively low cost
Highly credible
Poor message control; no guarantee that message will even reach the target
Difficult to track the results
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

13. Personal Appeals
Personal selling: Direct interaction between a company representative and a customer
Flexible; salespeople can modify the message to match customer needs
Immediate feedback is available to sales rep
High cost per contact
Difficult to ensure message consistency between different sales representatives
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

14. Personal Appeals
Direct marketing: Efforts to gain a direct response from individual consumers
Easily target specific customers with different offers
Easily measure results
Can provide extensive information and multiple offers with a single appeal
Facilitates marketing database information collection
Consumers dislike some forms of direct marketing
Higher cost per contact than mass appeals
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15. Buzz Appeals Buzz: Buzz marketing: Viral marketing:
Word-of-mouth communication that consumers view as authentic
Buzz marketing:
Using high-profile entertainment or news that gets people to talk about the brand
Viral marketing:
Creating entertaining or informative messages to be passed along
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

16. Buzz Appeals Word-of-mouth (WOM) marketing: Guerrilla marketing:
Activities that give people a reason to talk about the product
Guerrilla marketing:
Activities that “ambush” consumers with promotional content in places they are not expecting to encounter this kind of activity
Example: IBM’s corporate graffiti
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

17. Buzz Appeals Experiential marketing: Consumer-generated media:
Marketing activities that attempt to give customers an opportunity to actually interact with a brand
Consumer-generated media:
The online consumer-generated comments, opinions, and product-related stories available to other consumers through digital media
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

18. Ethical Issues in Buzz Marketing
Ethical problems in buzz marketing can occur when:
Activities are designed to deceive consumers
Directing buzz marketing at children or teens
Buzz marketing activities damage property
Stealth marketing activities deliberately deceive or lie on behalf of clients
Shilling, infiltration, comment SPAM, or SPAM is used
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

19. Integrated Marketing Communication (IMC)
With IMC, marketers plan and execute communication programs that create and maintain long-term relationships with customers by satisfying needs
IMC unifies all marketing communication tools to send a consistent, persuasive message
IMC is becoming increasingly important
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

20. Characteristics of IMC
Marketers must understand that IMC:
Begins with the customer
Creates a single unified voice for firm
Seeks to develop relationships with customers through one-to-one marketing
Relies on two-way communication
Focuses on stakeholders and customers
Generates continuous communication
Focuses on changing behavior
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

21. IMC and Database Marketing
IMC efforts rely on marketing databases
Database marketing:
The creation of an ongoing relationship with a set of customers who have identifiable interest in a product
Customers’ responses become part of the ongoing communication process
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

22. Developing the IMC Plan
Step 1: Identify target audiences
Step 2: Establish the communication objectives
Create awareness
Inform the market
Create desire
Encourage purchase and trial
Build loyalty
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

23. Developing the IMC Plan
Step 3: Determine and allocate the marketing communication budget
Determine the total promotion budget
Use one the following:
Top-down budgeting techniques
Percentage-of-sales
Competitive-parity
Bottom-up budgeting techniques
Objective-task method
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

24. Developing the IMC Plan
Step 3: Determine and allocate the marketing communication budget
Decide on a push or pull strategy
Push strategy: firm moves products through the channel by convincing channel members to offer them
Pull strategy: firm moves products through the channel by building desire among consumers, convincing retailers to respond to demand
Allocate budget to a specific promotion mix
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25. Developing the IMC Plan
Step 4: Design the promotion mix
Type of appeal
AIDA model: communication goals of attention, interest, desire, and action
Structure of the appeal
One-sided vs. two-sided
Communication channel
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26. Developing the IMC Plan
Step 5: Evaluate the effectiveness of the communication program
Are communication objectives adequately translated into marketing communication that is reaching the right target market?
Some activities (sales promotions) are easier to evaluate than others (public relations)
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

27. Real People, Real Choices: Decision Made at Tourism Vancouver
Walt chose option 1
Implementation: Tourism Vancouver is implementing plans to operate kiosks throughout Vancouver that would service visitors to the Olympics
Measuring success: Tourism Vancouver will compare the results of various activities against the objectives set for visitors, sales, sponsorships, etc.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

28. Keeping It Real: Fast-Forward to Next Class Decision Time at BzzAgent
Meet Joe Chernov, VP of Communication at BzzAgent
BzzAgent operates in the “word-of-mouth” marketing sector
The decision to be made: How should BzzAgent respond to the negative publicity surrounding its business activities?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Copyright © 2009 Pearson Education, Inc.  
Publishing as Prentice Hall
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall