1. Old and New Media: From One-to-Many to Many-to-Many
Week 5
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2. Chapter Objectives
Understand the communication process and the traditional promotion mix
Understand how marketers communicate using an updated communication model that incorporates buzz marketing activities and new social media
Describe the steps in traditional and multichannel promotional planning
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

3. Real People, Real Choices: Decision Time at Campfire
Should Campfire expand its staff and operations to become the digital AOR for their new client?
Option 1: Yes, become the digital AOR and hire new people capable of delivering digital offerings
Option 2: Partner with a smaller more traditional agency and split the work as necessary to handle the clients needs
Option 3: Walk away and decline the offer
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

4. The Traditional Communication Model: One-to-Many
Promotion The coordination of marketing communication efforts to influence attitudes or behavior
Marketing communications purposes include the following:
Inform
Remind
Persuade
Build relationships
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

5. The Traditional Communication Model: One-to-Many
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
Touchpoints are varied
A multichannel promotional strategy is needed
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

6. The Traditional Communication Model: One-to-Many
Three models of marketing communication include:
One-to-many model
Relies on traditional forms of mass communication
One-to-one model
Database marketing, direct marketing, personal selling are key
Many-to-many model
Uses buzz building and social media
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

7. The Communication Model
The communication model explains how organizations create and transmit messages
Elements of the model include:
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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

8. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

9. The Traditional Promotion Mix
Promotion mix: The major communication elements that the marketer controls
Advertising
Sales promotion
Public relations
Personal selling
Direct marketing
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

10. Mass Communication
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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

11. Mass Communication
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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

12. Mass Communication
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 effectiveness of results
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

13. Personal Communication
Personal selling: Direct interaction between a company representative and a customer
Flexible; salespeople can modify the message to match customer needs
Provides immediate feedback
High cost per contact
Difficult to ensure message consistency between different salespeople
Salesperson credibility is linked to firm image
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

14. Personal Communication
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 database information collection
Consumers dislike some direct marketing
Higher cost per contact than mass appeals
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

15. The Updated Communication Model: Many-to-Many
Groundswell A social trend in which people use technology to get the things they need from each other, rather than from traditional institutions such as corporations
The many-to-many communication model relies on consumers talking to one another
Buzz marketing is key
Technology magnifies the impact of buzz marketing
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

16. Ethical Problems in Buzz Marketing
Activities designed to deceive consumers
Buzz marketing targeted a kids or teens
Buzz marketing that damages property
Stealth marketing activities that deliberately deceive or lie on behalf of clients
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

17. Buzz Marketing Viral marketing: Brand ambassadors and evangelists:
Marketing activities that aim to increase brand awareness or sales by consumers passing a message along to other consumers
Brand ambassadors and evangelists:
Loyal customers of a brand recruited to communicate and be salespeople with other consumers for a brand they care a great deal about
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

18. New Social Media
Social media Internet-based platforms that allow users to create their own content and share it with others who access these sites
An important part of the Updated communication model
Takes many forms
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

19. New Social Media
Social networking sites connect people with similar people based on profiles
Opportunities for marketers include:
Influencing journalists and opinion leaders
Creating brand communities
Key social networking sites
Facebook
Twitter
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

20. New Social Media
Virtual worlds Online, highly engaging digital environments where avatars live and interact with other avatars in real time
Virtual goods are a booming industry
Virtual worlds are also marketplaces
Marketers use virtual worlds for
Building customer relationships
Improving the brand image
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

21. New Social Media
Product review sites Social media sites that enable people to post stories about their experiences with products and services
Marketers seek to create a connection between consumers and the brand
Both positive and negative information is available
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

22. New Social Media
Mobile apps and geospatial platforms Digital applications that integrate sophisticated GPS technology to enable users to alert friends of their exact whereabouts via their mobile phones
Foursquare is a popular site
Marketers can reach customers on the go to increase sales
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

23. Promotional Planning in a Web 2.0 World
Step 1: Identify target audiences
Step 2: Establish the communication objectives to achieve the following objectives:
Create awareness
Inform the market
Create desire
Encourage purchase and trial
Build loyalty
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

24. Promotional Planning in a Web 2.0 World
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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

25. Promotional Planning in a Web 2.0 World
Step 3: Determine and allocate the marketing communication budget
Decide on a push or pull strategy
Push strategy
Pull strategy
Allocate spending to specific promotion activities
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

26. Promotional Planning in a Web 2.0 World
Step 4: Design the promotion mix
Involves determining the:
Specific promotional tools to be used
Message to be communicated
Communication channel
Message communication goals:
Attention, interest, desire, and action (AIDA model)
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

27. Promotional Planning in a Web 2.0 World
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)
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

28. Multichannel Promotional Strategies
Combine traditional mass media with online buzz building activities
Offer important benefits:
Boost effectiveness of using either online or offline strategies alone
Strengthen brand awareness
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

29. Real People, Real Choices: Decision Made at Campfire
Mike chose option 3
Why do you think Mike and his partners declined to become the agent of record for the potential client?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

30. Keeping It Real: Fast-Forward to Next Class Decision Time at Brownstein Group Brand Communication
Meet Marc Brownstein, President and CEO of Brownstein Group Brand Communication
The agency is an innovator in digital advertising and social media
The decision to be made: How should the agency respond to competitive attacks against a clients new product?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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© 2012 Pearson Education, Inc. publishing as Prentice-Hall.