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Catching the Buzz: Promotional Strategy and Integrated Marketing Communication. Chapter Objectives. marketing communication communications model promotion mix. Chapter Objectives. word of mouth marketing, buzz marketing, viral marketing, guerrilla marketing

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Catching the Buzz: Promotional Strategy and Integrated Marketing Communication

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Catching the Buzz: Promotional Strategy and Integrated Marketing Communication


Chapter Objectives

  • marketing communication

  • communications model

  • promotion mix


Chapter Objectives

  • word of mouth marketing,

  • buzz marketing,

  • viral marketing,

  • guerrilla marketing

    • provide effective marketing communication


Chapter Objectives (cont’d)

  • integrated marketing communication

    • characteristics

  • database marketing

    • in integrated marketing communication

  • IMC plan & stages


Tailoring marketing communication to consumers


Tailoring MarketingCommunication to Consumers

  • Promotion:

  • the coordination of marketing communication efforts

  • to influence attitudes or behavior


Tailoring MarketingCommunication to Consumers

  • Marketing communication:

    • Informs

    • Reminds

    • Persuades

    • Builds relationships


Tailoring Marketing Communicationto Consumers (cont’d)

  • Integrated marketing communication (IMC):

  • A process

  • used to plan, develop, execute, and evaluatecoordinated, measurable, persuasive brand communication programs

  • over time to targeted audiences

    • Consumers see the variety of messages

    • from a firm as a whole.


Figure 12.2: The Communication Model


FRAM.COM

The Communication Model

  • Encoding:

    • process of translating an idea into a form of communication

  • Source:

    • organization or individual sending the message


FRAM.COM

The Communication Model

  • Message:

    • communication in physical form

  • Medium:

    • communication vehicle

    • used to reach members of a target audience


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


The Communication Model (cont’d)

  • Noise:

    • anything that interferes with effective communication

  • Feedback:

    • receiver’s reactions to the message


Marketing Communication Strategy& Promotion Mix


Marketing CommunicationStrategy and Promotion Mix

  • Promotion mix:

    • communication elements

    • the marketer controls


Marketing CommunicationStrategy and Promotion Mix

  • Promotion mix:

    Advertising

    Sales promotion

    Public relations

    Personal selling

    Direct marketing


Figure 12.3: Control Continuum


APPEALS


Mass Appeals

  • Advertising:

  • Non-personal communication

  • from an identified sponsor

  • using mass media


Mass Appeals (cont’d)

  • Sales promotion:

  • contests, coupons, & other incentives

  • designed to build interest

  • or encourage product purchase

  • during a specified period


Mass Appeals (cont’d)

  • Public relations:

  • communication activities

  • that create/maintain a positive image

  • of a firm and its products


Personal Appeals

  • Personal selling:

  • direct interaction

  • between a company representative

  • and a customer


Personal Appeals

  • Direct marketing:

  • efforts to gain a direct response

  • from individual consumers


Buzz Appeals

  • Buzz:

  • everyday people

  • who help marketing efforts

  • by talking about a product or a company

  • to others


Buzz Appeals

  • Buzz marketing:

  • high-profile entertainment or news

  • that gets people to talk

  • about the brand


Buzz Appeals

  • Viral marketing:

  • entertaining or informative messages

  • designed to be passed along


Buzz Appeals (cont’d)

  • Word of mouth (WOM) marketing:

  • activities that give people a reason

  • to talk about the product


Buzz Appeals (cont’d)

  • Guerrilla marketing:

  • activities that

  • “ambush” consumers

  • with promotional content

  • where not expected


SPALDING.COM

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.


IMC


Integrated Marketing Communication (IMC)

  • marketing communication programs

  • create and maintain

  • long-term relationships

  • with customers

  • by satisfying their needs.


Integrated Marketing Communication (IMC)

  • IMC unifies

  • all marketing communication tools

  • to send a consistent, persuasive message.


Characteristics of IMC

  • Creates a single unified voice for firm.

  • Begins with the customer.

  • develop relationships with customers through1-to-1 marketing.

  • Relies on 2-way communication.


Characteristics of IMC (cont’d)

  • Focuses on stakeholders,

    • not just customers.

  • Generates a continuous stream

    • of communication.

  • Measures results

    • based on actual feedback.


IMC & Database marketing


IMC and Database Marketing

  • Database marketing:

  • creation of ongoing relationship

    • with a set of customers

  • who have identifiable interest

    • in a product


IMC and Database Marketing

  • Customers’ responses

    • = ongoing communication process.

    • Is interactive

    • Builds relationships

    • Locates new customers

    • Stimulates cross-selling

    • Is measurable

    • Yields trackable responses


Developing the IMC plan (Figure 12.4)


Developing the IMC Plan

  • Step 1: Identify target audiences


Developing the IMC Plan

  • Step 2: Establish communication objectives

    • Create awareness

    • Inform the market

    • Create desire

    • Encourage purchase and trial

    • Build loyalty


Figure 12.5: The Hierarchy of Effects – Step 2


  • 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


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


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


THEWOMB.COM

  • Step 4: Design the promotion mix

  • Type of appeal

  • AIDA model:

    • communication goals of attention, interest, desire, & action

  • Structure of the appeal

  • Communication channel


Step 5: Evaluate the effectiveness of the communication program

  • Are communication objectives

  • adequately translated

  • into marketing communication

  • that is reaching the right target market?


The end


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


Discussion

  • With an IMC program, firms need to coordinate all marketing communication activities.

    • What inherent problems do you see in ensuring this coordination?


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


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?


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?


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?


SKICHEVY.COM

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!


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?


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?


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