Consumers Rule

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Catching the Buzz Promotional Strategy and
Integrated Marketing Communication
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Chapter Objectives

• marketing communication
• communications model
• promotion mix

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Chapter Objectives

• word of mouth marketing,
• buzz marketing,
• viral marketing,
• guerrilla marketing
• provide effective marketing communication

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Chapter Objectives (contd)

• integrated marketing communication
• characteristics
• database marketing
• in integrated marketing communication
• IMC plan stages

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Tailoring marketing communication to consumers
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Tailoring MarketingCommunication to Consumers

• Promotion
• the coordination of marketing communication
  efforts
• to influence attitudes or behavior

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Tailoring MarketingCommunication to Consumers

• Marketing communication
• Informs
• Reminds
• Persuades
• Builds relationships

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Tailoring Marketing Communicationto Consumers
(contd)

• 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.

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Figure 12.2 The Communication Model
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The Communication Model

• Encoding
• process of translating an idea into a form of
  communication
• Source
• organization or individual sending the message

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The Communication Model

• Message
• communication in physical form
• Medium
• communication vehicle
• used to reach members of a target audience

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The Communication Model (contd)

• Receiver
• individual or organization
• that intercepts and interprets the message
• Decoding
• process whereby a receiver assigns meaning to a
  message

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The Communication Model (contd)

• Noise
• anything that interferes with effective
  communication
• Feedback
• receivers reactions to the message

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Marketing Communication Strategy Promotion Mix
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Marketing CommunicationStrategy and Promotion Mix

• Promotion mix
• communication elements
• the marketer controls

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Marketing CommunicationStrategy and Promotion Mix

• Promotion mix
• Advertising
• Sales promotion
• Public relations
• Personal selling
• Direct marketing

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Figure 12.3 Control Continuum
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APPEALS
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Mass Appeals

• Advertising
• Non-personal communication
• from an identified sponsor
• using mass media

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Mass Appeals (contd)

• Sales promotion
• contests, coupons, other incentives
• designed to build interest
• or encourage product purchase
• during a specified period

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Mass Appeals (contd)

• Public relations
• communication activities
• that create/maintain a positive image
• of a firm and its products

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Personal Appeals

• Personal selling
• direct interaction
• between a company representative
• and a customer

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Personal Appeals

• Direct marketing
• efforts to gain a direct response
• from individual consumers

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Buzz Appeals

• Buzz
• everyday people
• who help marketing efforts
• by talking about a product or a company
• to others

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Buzz Appeals

• Buzz marketing
• high-profile entertainment or news
• that gets people to talk
• about the brand

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Buzz Appeals

• Viral marketing
• entertaining or informative messages
• designed to be passed along

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Buzz Appeals (contd)

• Word of mouth (WOM) marketing
• activities that give people a reason
• to talk about the product

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Buzz Appeals (contd)

• Guerrilla marketing
• activities that
• ambush consumers
• with promotional content
• where not expected

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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 companys
  products.

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IMC
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Integrated Marketing Communication (IMC)

• marketing communication programs
• create and maintain
• long-term relationships
• with customers
• by satisfying their needs.

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Integrated Marketing Communication (IMC)

• IMC unifies
• all marketing communication tools
• to send a consistent, persuasive message.

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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.

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Characteristics of IMC (contd)

• Focuses on stakeholders,
• not just customers.
• Generates a continuous stream
• of communication.
• Measures results
• based on actual feedback.

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IMC Database marketing
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IMC and Database Marketing

• Database marketing
• creation of ongoing relationship
• with a set of customers
• who have identifiable interest
• in a product

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IMC and Database Marketing

• Customers responses
• ongoing communication process.
• Is interactive
• Builds relationships
• Locates new customers
• Stimulates cross-selling
• Is measurable
• Yields trackable responses

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Developing the IMC plan (Figure 12.4)
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Developing the IMC Plan

• Step 1 Identify target audiences

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Developing the IMC Plan

• Step 2 Establish communication objectives
• Create awareness
• Inform the market
• Create desire
• Encourage purchase and trial
• Build loyalty

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Figure 12.5 The Hierarchy of Effects Step 2
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• 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

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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

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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

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• Step 4 Design the promotion mix

• Type of appeal
• AIDA model
• communication goals of attention, interest,
  desire, action
• Structure of the appeal
• Communication channel

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Step 5 Evaluate the effectiveness of the
communication program

• Are communication objectives
• adequately translated
• into marketing communication
• that is reaching the right target market?

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The end
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Real People, Real Choices

• General Motors R Works (Vince OBrien)
• Needed marketing plan supporting Chevys
  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 Chevys products

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Discussion

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

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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

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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?

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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?

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Discussion

• Some people argue theres really nothing new
  about IMC.
• What do you think? Why?
• Why is the IMC plan superior to conventional
  advertising?

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Real People, Real Choices

• General Motors R Works (Vince OBrien)
• 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 its all
  smooth going from here!

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Marketing in Action CaseYou 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?

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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?