Part 5 PROMOTION DECISIONS

15: Integrated Marketing Communications 16: Advertising and Public Relations 17: Personal Selling and Sales Promotion

Chapter 15 Integrated Marketing Communications Professor Jason C. H. Chen, Ph.D. School of Business Administration Gonzaga University Spokane, WA 99258 chen@jepson.gonzaga.edu

Marketing Applications

2. Developing a promotion mix is contingent on many factors, including the type of product and the product’s attributes. Which of the four promotional methods - advertising, personal selling, public relations, or sales promotion - would you emphasize if you were developing the promotion mix for the following products? Explain your answers. a. Washing machine b. Cereal c. Halloween candy d. Compact disc   While certain products are better suited to certain promotional methods, encourage students to be creative. Almost all of the products could benefit from ___________ because they can be targeted to a variety of demographics through several different mediums. _____ ________works well for high end products, such as washing machines. _______ ______involve interactions between an organization and its stakeholders, which might be necessary for candy because consumers consider it to be unhealthy. All the products could use ______ _________ to create an added incentive. advertising Personal selling Public relations sales promotion

Internet Exercise Myspace

Myspace   Myspace is not just for friends. It is also a unique promotional platform for musical artists, especially unsigned and independent artists. By creating a Myspace page, musicians can share their songs, post important dates, or even blog. Myspace music pages are different from record company websites because they feel more personal. Artists also take advantage of MySspace’s viral nature by allowing other Myspace members to post their pictures, songs, and music videos on their own Myspace profile pages. Visit the website at http://music.myspace.com, and look for your favorite artist or discover a new one.

1. Who is the target market for members?   Myspace’s target market is musicians who wish to share their music with other members as well as people who are interested in music. 2. What is being promoted to these individuals? For musicians, Myspace is offering them a chance to “be discovered” when members listen to their music, find information about their tour dates, and share songs. For music lovers, Myspace provides a way to listen to music for free and find new artists and bands to follow.

3. What are the promotional objectives of this website?   Students should look at Table 15.2 for objectives of promotion. For Myspace, the primary objectives are to create awareness, retain customers, stimulate demand, and combat competitive promotional efforts. 4. Is word-of-mouth communication occurring at this website? Explain. Word-of-mouth communication is personal, informal exchanges of communication that customers share with one another about products, brands, and companies. When Myspace members interact with each other and promote each others’ music, they are engaging in world-of-mouth communication.

Video Case VIDEO CASE 15: FRANK PEPE’S PIZZERIA NAPOLETANA USES POSITIVE WORD-OF-MOUTH TO BECOME A PREMIERE PIZZERIA: The Tale of New Belgium Brewing

Summary This case discusses how a pizzeria successfully uses integrated marketing communication. Positive word-of-mouth marketing about the company’s products has increased its customer base. The pizzeria uses personal selling to communicate the value of its products when customers enter the store. It also uses advertising such as direct mail and digital marketing on sites like Facebook and Twitter. A major form of sales promotion that the pizzeria uses is free pizza the week before opening a new store. Finally, the company makes use of public relations through fundraisers and donations. Frank Pepe’s Pizzeria Napoletana has become an expert at using all four parts of the promotion mix to attract customers.

1. What are the various promotion elements that Pepe’s uses to communicate with customers?   Pepe’s uses personal selling to communicate the value of its products when customers enter the store. It also uses advertising such as direct mail and digital marketing on sites like Facebook and Twitter. A major form of sales promotion that the pizzeria uses is free pizza the week before opening a new store. The company also makes use of public relations through fundraisers and donations. These different components coupled with a premium product and quality experience has led many customers to tell others about the company (word-of-mouth marketing).  

2. What role does word of mouth play in Pepe’s integrated marketing communications?   Word-of-mouth marketing is one of the strongest forms of marketing because consumers tend to trust other consumers. Pepe’s uses a combination of strong customer relationships, premium product offerings, and strong integrated marketing to create customer satisfaction. These satisfied customers often tell their friends and family about their positive experience with Pepe’s, leading to additional customers.

3. Evaluate free pizza as a form of sales promotion in Pepe’s success.   Pepe’s provides a week of free pizza before opening a new location. This allows the company to attract new customers who might not have known about Pepe’s before and also helps employees to break in new ovens and become familiar with Pepe’s culture. Not only does this form of sales promotion allow customers to try Pepe’s quality product, but it also builds goodwill and a positive image among the community.