Loading in 2 Seconds...
Loading in 2 Seconds...
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 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.
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 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
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.
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 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 • 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
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?
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