Michael R. Solomon Greg W. Marshall Elnora W. Stuart M A R K E T I N G Real People, Real Choices Fourth Edition CHAPTER 12 Connecting with the Customer: Integrated Marketing Communications and Interactive Marketing Michael R. Solomon Greg W. Marshall Elnora W. Stuart

Chapter Objectives_1 Understand the role of marketing communication Understand the communication model List and describe the elements of the promotion mix Explain guerrilla marketing, viral marketing, buzz, and hype

Chapter Objectives_2 Explain integrated marketing communications and its characteristics Explain the stages in developing the IMC plan Explain the current trend toward interactive promotion strategies Explain why database marketing is increasingly popular and how databases are developed and managed

How Many Can You Answer? Name the tiger that says, “They’re grrrrrreat!” Name one or more products for which Tiger Woods is a spokesperson. What character is featured in Energizer battery ads? At Burger King, you can have it “ ___,” whereas at Hardee’s the burgers are _____.

Functions of Marketing Communications Inform Persuade Remind Build relationships

Traditional Forms Advertising Sales promotion Special events Salespeople PR

Integrated Marketing Communications Integrated Marketing Communications (IMC) is “a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences.”

Figure 12.2: Communications Model

Appeals Personal appeals allow for direct interaction between a company representative and a customer Mass appeals seek to reach many prospective customers at the same time New appeals Guerrilla marketing Viral marketing Buzz and hype

Advertising Non-personal communication from an identified sponsor using the mass media can: convey rich and dynamic images establish and reinforce brand identity communicate factual information remind customer to buy

Sales Promotion Programs that build interest or encourage purchase of a product through the use of an incentive in a specified time period coupons contests rebates premiums

Publicity and Public Relations Portray an organization and its products positively by influencing the perceptions of various publics writing press releases holding special events conducting and publishing consumer surveys putting a positive spin on negative news

Characteristics of an IMC Program Creates a single unified voice Begins with the customer Seeks to develop relationships Involves 2-way communication Focuses on stakeholders Generates a continuous stream of communication Measures results based on actual feedback

Developing the IMC Plan Identify the target audience Establish the communication objectives Determine and allocate the marketing communication budget Design the promotion mix Evaluate the effectiveness

Step 2: Establish Communication Objectives Possible objectives create awareness inform the market create desire encourage trial build loyalty

Step 3: Determine Total Promotion Budget Top-down budgeting techniques percentage-of-sales method competitive parity Bottom-up budgeting technique objective-task method

Step 4: Designing the Promotion Mix Which elements of promotion will be used? What message is to be communicated? Type of appeal? Structure of appeal? What communication channels should be employed? What role will advertising, sales promotion, public relations, and selling play?

Step 5: Evaluate the Effectiveness Is the plan working? Measure response to sales promotions Measure brand awareness, recall, and image before and after ad campaign Analyze and compare sales performances by territory and sales force Clip articles appearing in media