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

2. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-2 Chapter Objectives  Understand the role of marketing communication  Understand the communication model  List and describe the tradition elements of the promotion mix  Explain how WOM, buzz, guerilla, and experiential marketing, and consumer- generated media provide alternatives to traditional media forms

3. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-3 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

4. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-4 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

5. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-5 Talk to Your Customers!  Promotion: The coordination of marketing communication efforts to influence attitudes or behavior  Marketing communications purpose: –Inform –Remind –Persuade –Build relationships

6. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-6 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

7. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-7 Marketing Communications Take Many Forms See the ad gallery at Beach’n BillboardBeach’n Billboard Beach’n Billboard is one of many new firms that offer marketers unique ways of reaching their customers

8. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-8 Figure 12.2 Communication Model

9. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-9 The Communication Model  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 –Medium: Communication vehicle through which a message is transmitted

10. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-10 Marketing Sources Visit QScores.comQScores.com Marketers often choose celebrity endorsers as sources to make their messages more believable or their products more attractive to the buyers Q Scores can be helpful in selecting the right endorser

11. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-11 The Communication Model  Elements of the model (cont.): –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

12. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-12 The Promotion Mix  Promotion mix: The major communication elements that the marketer controls –The extent of the marketer’s control over different communication elements varies

13. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-13 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

14. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-14 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 Visit Coupons.comCoupons.com

15. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-15 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

16. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-16 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

17. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-17 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

18. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-18 Buzz Appeals  Buzz: –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

19. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-19 Viral Marketing—Hits and Misses Cowabduction.com Explore the Web sites shown below. Would these Web sites interest you enough to share the URLs with friends? Why or why not? What must marketers do to ensure a successful “buzz” campaign? SubserviantChicken.com

20. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-20 Buzz Appeals  Word-of-mouth (WOM) 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

21. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-21 Buzz Appeals  Experiential marketing: –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

22. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-22 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

23. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-23 It’s Debatable Class Discussion Question Can online reviews be trusted? Are you as likely to believe online consumer reviews now as you were in the past? Will online consumer reviews continue to aid marketers, or will their influence decline in the future? Where do you stand?

24. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-24 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

25. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-25 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

26. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-26 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

27. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-27 Figure 12.4 Steps to Develop an IMC Plan

28. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-28 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

29. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-29 Figure 12.5 The Hierarchy of Effects

30. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-30  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 Developing the IMC Plan

31. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-31  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 Developing the IMC Plan

32. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-32  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 Developing the IMC Plan

33. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-33 Using the AIDA Model This ad uses a unique image to grab the consumer’s attention If an ad without copy is to be effective, the brand name and attributes of the product must be well-known Would this ad work well in the United States as shown?

34. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-34  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) Developing the IMC Plan

35. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-35 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.

36. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-36 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?

37. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall12-37 Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.