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 (cont’d)

• integrated marketing communication characteristics

• database marketing in integrated marketing communication

• IMC plan & stages

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 (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 audiencesConsumers 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

FRAM.COM

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The Communication Model

•Message: communication in physical form

•Medium: communication vehicle used to reach members of a

target audience

FRAM.COM

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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

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The Communication Model (cont’d)

•Noise: anything that interferes with effective

communication

•Feedback: receiver’s reactions to the message

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:AdvertisingSales promotionPublic relationsPersonal sellingDirect marketing

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Figure 12.3: Control Continuum

APPEALS

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Mass Appeals

•Advertising: • Non-personal

communication • from an identified

sponsor • using mass media

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Mass Appeals (cont’d)

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

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Mass Appeals (cont’d)

•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 (cont’d)

• Word of mouth (WOM) marketing:

• activities that give people a reason

• to talk about the product

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Buzz Appeals (cont’d)

•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 company’s products.

SPALDING.COM

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 (cont’d)

• Focuses on stakeholders, not just customers.

• Generates a continuous stream of communication.

• Measures results based on actual feedback.

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 interactiveBuilds relationshipsLocates new customersStimulates cross-sellingIs measurableYields 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 budgetDetermine total promotion budgetTop-down budgeting techniquesPercentage-of-salesCompetitive-parityBottom-upObjective-task

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• 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

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• Allocate the budget to a specific promotion mix

• Organizational factors• Market responsiveness• Market potential• Market size

Step 3: Determine and allocate the marketing communication budget

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• Type of appeal• AIDA model:

communication goals of attention, interest, desire, & action

• Structure of the appeal• Communication channel

THEWOMB.COM

•Step 4: Design the promotion mix

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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 O’Brien)• Needed marketing plan supporting Chevy’s

commitment to skiing while increasing sales at local dealershipsOption 1: continue ski promotion but better qualify test-

drive trafficOption 2: offer season passes to local ski mountain as

purchase incentive for designated SUVOption 3: scrap ski relationship and look for another

platform to promote Chevy’s 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 there’s 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 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

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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?

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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?