1. Catching the Buzz: Promotional Strategy and Integrated Marketing Communication

2. marketing communication communications model promotion mix
Chapter Objectives
marketing communication
communications model
promotion mix

3. word of mouth marketing, buzz marketing, viral marketing,
Chapter Objectives
word of mouth marketing,
buzz marketing,
viral marketing,
guerrilla marketing
provide effective marketing communication

4. Chapter Objectives (cont’d)
integrated marketing communication
characteristics
database marketing
in integrated marketing communication
IMC plan & stages

5. Tailoring marketing communication to consumers

6. Tailoring Marketing Communication to Consumers
Promotion:
the coordination of marketing communication efforts
to influence attitudes or behavior

7. Tailoring Marketing Communication to Consumers
Informs
Reminds
Persuades
Builds relationships

8. Tailoring Marketing Communication to Consumers (cont’d)
Integrated marketing communication (IMC):
A process
used 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.

9. Figure 12.2: The Communication Model

10. The Communication Model
Encoding:
process of translating an idea into a form of communication
Source:
organization or individual sending the message
FRAM.COM

11. The Communication Model
Message:
communication in physical form
Medium:
communication vehicle
used to reach members of a target audience
FRAM.COM

12. The Communication Model (cont’d)
Receiver:
individual or organization
that intercepts and interprets the message
Decoding:
process whereby a receiver assigns meaning to a message

13. The Communication Model (cont’d)
Noise:
anything that interferes with effective communication
Feedback:
receiver’s reactions to the message

14. Marketing Communication Strategy & Promotion Mix

15. Marketing Communication Strategy and Promotion Mix
communication elements
the marketer controls

16. Marketing Communication Strategy and Promotion Mix
Advertising
Sales promotion
Public relations
Personal selling
Direct marketing

17. Figure 12.3: Control Continuum

18. APPEALS

19. Advertising: Mass Appeals Non-personal communication
from an identified sponsor
using mass media

20. Sales promotion: Mass Appeals (cont’d)
contests, coupons, & other incentives
designed to build interest
or encourage product purchase
during a specified period

21. Public relations: Mass Appeals (cont’d) communication activities
that create/maintain a positive image
of a firm and its products

22. Personal selling: Personal Appeals direct interaction
between a company representative
and a customer

23. Direct marketing: efforts to gain a direct response
Personal Appeals
Direct marketing:
efforts to gain a direct response
from individual consumers

24. Buzz: Buzz Appeals everyday people who help marketing efforts
by talking about a product or a company
to others

25. Buzz marketing: high-profile entertainment or news
Buzz Appeals
Buzz marketing:
high-profile entertainment or news
that gets people to talk
about the brand

26. Viral marketing: Buzz Appeals entertaining or informative messages
designed to be passed along

27. Buzz Appeals (cont’d) activities that give people a reason
Word of mouth (WOM) marketing:
activities that give people a reason
to talk about the product

28. Buzz Appeals (cont’d) Guerrilla marketing: activities that
“ambush” consumers
with promotional content
where not expected

29. Group Activity
Your team is a word-of-mouth marketing department for a sports equipment company such as Spalding.
Develop 3 ways to create buzz for your company’s products.
SPALDING.COM

30. IMC

31. Integrated Marketing Communication (IMC)
marketing communication programs
create and maintain
long-term relationships
with customers
by satisfying their needs.

32. Integrated Marketing Communication (IMC)
IMC unifies
all marketing communication tools
to send a consistent, persuasive message.

33. Characteristics of IMC
Creates a single unified voice for firm.
Begins with the customer.
develop relationships with customers through 1-to-1 marketing.
Relies on 2-way communication.

34. Characteristics of IMC (cont’d)
Focuses on stakeholders,
not just customers.
Generates a continuous stream
of communication.
Measures results
based on actual feedback.

35. IMC & Database marketing

36. IMC and Database Marketing
creation of ongoing relationship
with a set of customers
who have identifiable interest
in a product

37. IMC and Database Marketing
Customers’ responses
= ongoing communication process.
Is interactive
Builds relationships
Locates new customers
Stimulates cross-selling
Is measurable
Yields trackable responses

38. Developing the IMC plan (Figure 12.4)

39. Developing the IMC Plan
Step 1: Identify target audiences

40. Developing the IMC Plan
Step 2: Establish communication objectives
Create awareness
Inform the market
Create desire
Encourage purchase and trial
Build loyalty

41. Figure 12.5: The Hierarchy of Effects – Step 2

42. Step 3: Determine and allocate the marketing communication budget
Determine total promotion budget
Top-down budgeting techniques
Percentage-of-sales
Competitive-parity
Bottom-up
Objective-task

43. Step 3: Determine and allocate the marketing communication budget
Push strategy:
move products through the channel by convincing channel members to offer them
Pull strategy:
move products through the channel by building desire among consumers, convincing retailers to respond to demand

44. Step 3: Determine and allocate the marketing communication budget
Allocate the budget to a specific promotion mix
Organizational factors
Market responsiveness
Market potential
Market size

45. Step 4: Design the promotion mix
Type of appeal
AIDA model:
communication goals of attention, interest, desire, & action
Structure of the appeal
Communication channel
THEWOMB.COM

46. Step 5: Evaluate the effectiveness of the communication program
Are communication objectives
adequately translated
into marketing communication
that is reaching the right target market?

47. The end

48. Real People, Real Choices
General Motors R* Works (Vince O’Brien)
Needed marketing plan supporting Chevy’s commitment to skiing while increasing sales at local dealerships
Option 1: continue ski promotion but better qualify test-drive traffic
Option 2: offer season passes to local ski mountain as purchase incentive for designated SUV
Option 3: scrap ski relationship and look for another platform to promote Chevy’s products

49. Discussion
With an IMC program, firms need to coordinate all marketing communication activities.
What inherent problems do you see in ensuring this coordination?

50. Group Activity/Discussion
Traditional promotion elements include advertising, sales promotion, public relations, personal selling and direct marketing.
--Which do you feel is most effective for each of the following clients?
1. a cellular phone service provider
2. a hotel
3. a university
4. the manufacturer of a new soft drink

51. Discussion
Some say buzz marketing is just a craze that will fade in a year or two.
--Is it here to stay?
--Do you think buzz is effective? Why or why not?

52. Discussion Consumers are concerned that databases invade privacy.
--Do you feel this is a valid concern?
--How can marketers use databases effectively and protect individuals’ rights?

53. Discussion Some people argue there’s really nothing new about IMC.
What do you think? Why?
Why is the IMC plan superior to conventional advertising?

54. Real People, Real Choices
General Motors R* Works (Vince O’Brien)
Vince chose option 2: offer season passes to local ski mountain as purchase incentive for designated SUV.
Chevrolet has completed its sixth year of this Ski Chevy promotional program, and it’s all smooth going from here!
SKICHEVY.COM

55. Marketing in Action Case: You Make the Call
What is the decision facing American Express?
What factors are important in understanding this decision situation?
What are the alternatives?
What decision(s) do you recommend?
What are some ways to implement your recommendation?

56. Keeping It Real: Fast-Forward to Next Class, Decision Time at BzzAgent
Meet Joe Chernov, director of PR at BzzAgent, Inc.
Buzz marketers accused of “perpetrating large scale deception upon consumers”
The decision: What public relations strategy to use to respond to the criticism?