old and new media: from one-to-many to many-to-many chapter twelve 2012 pearson education, inc....

Old and New Media:Old and New Media: From One-to-Many to Many-to-From One-to-Many to Many-to-

ManyMany

Chapter TwelveChapter Twelve© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

12-2© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Chapter ObjectivesChapter Objectives Understand the communication process Understand the communication process

and the traditional promotion mixand the traditional promotion mix Understand how marketers communicate Understand how marketers communicate

using an updated communication model using an updated communication model that incorporates buzz marketing that incorporates buzz marketing activities and new social mediaactivities and new social media

Describe the steps in traditional and Describe the steps in traditional and multichannel promotional planningmultichannel promotional planning


Real People, Real Choices: Real People, Real Choices: Decision Time at CampfireDecision Time at Campfire

Should Campfire expand its staff and Should Campfire expand its staff and operations to become the digital AOR for operations to become the digital AOR for their new client?their new client?• Option 1:Option 1: Yes, become the digital AOR and Yes, become the digital AOR and

hire new people capable of delivering hire new people capable of delivering digital offeringsdigital offerings• Option 2:Option 2: Partner with a smaller more Partner with a smaller more

traditional agency and split the work as traditional agency and split the work as necessary to handle the clients needsnecessary to handle the clients needs• Option 3:Option 3: Walk away and decline the offer Walk away and decline the offer


The Traditional The Traditional Communication Model: One-to-Communication Model: One-to-

ManyMany PromotionPromotion

The coordination of marketing The coordination of marketing communication efforts to influence communication efforts to influence attitudes or behaviorattitudes or behavior

Marketing communications purposes Marketing communications purposes include the following:include the following:• Inform Inform • Remind Remind • PersuadePersuade• Build relationships Build relationships



ManyMany Integrated marketing communication Integrated marketing communication

(IMC): (IMC): Process that marketers use to plan, Process that marketers use to plan, develop, execute, and evaluate develop, execute, and evaluate coordinated, measurable, persuasive coordinated, measurable, persuasive brand communication programs over brand communication programs over time to targeted audiencestime to targeted audiences• Touchpoints are variedTouchpoints are varied• A multichannel promotional strategy is A multichannel promotional strategy is

neededneeded



ManyMany Three models of marketing Three models of marketing

communication include:communication include:• One-to-many modelOne-to-many model

Relies on traditional forms of mass Relies on traditional forms of mass communication communication

• One-to-one modelOne-to-one modelDatabase marketing, direct marketing, Database marketing, direct marketing,

personal selling are keypersonal selling are key• Many-to-many modelMany-to-many model

Uses buzz building and social mediaUses buzz building and social media


The Communication ModelThe Communication Model The communication model explains how The communication model explains how

organizations create and transmit messagesorganizations create and transmit messages Elements of the model include:Elements of the model include:• Source:Source: Firm or person sending a message Firm or person sending a message• Encoding:Encoding: Transmitting an idea into a form of Transmitting an idea into a form of

communication that conveys meaningcommunication that conveys meaning• Message:Message: Communication in physical form Communication in physical form

that goes from a sender to a receiverthat goes from a sender to a receiver• Medium:Medium: Communication vehicle through Communication vehicle through

which a message is transmittedwhich a message is transmitted


The Communication ModelThe Communication Model

Elements of the model (cont.):Elements of the model (cont.):• Receiver:Receiver: Individual or organization that Individual or organization that

intercepts and interprets the messageintercepts and interprets the message• Decoding:Decoding: Process whereby a receiver Process whereby a receiver

assigns meaning to a messageassigns meaning to a message• Noise:Noise: Anything that interferes with Anything that interferes with

effective communicationeffective communication• Feedback:Feedback: Receiver’s reactions to the Receiver’s reactions to the

messagemessage


The Traditional Promotion MixThe Traditional Promotion Mix

Promotion mix: Promotion mix: The major communication elements The major communication elements that the marketer controlsthat the marketer controls• AdvertisingAdvertising• Sales promotionSales promotion• Public relationsPublic relations• Personal sellingPersonal selling• Direct marketingDirect marketing


Mass CommunicationMass Communication Advertising: Advertising:

Nonpersonal communication from an Nonpersonal communication from an identified sponsor using mass mediaidentified sponsor using mass media• Provides marketers with total controlProvides marketers with total control• Rich and dynamic advertising images can Rich and dynamic advertising images can

help to build or reinforce brand imagehelp to build or reinforce brand image• May provide factual information or offer May provide factual information or offer

reminders to consumersreminders to consumers• Lacks credibility with cynical consumersLacks credibility with cynical consumers• Extremely expensiveExtremely expensive


Mass CommunicationMass Communication Sales promotion: Sales promotion:

Contests, coupons, and other incentives Contests, coupons, and other incentives designed to build interest or encourage designed to build interest or encourage product purchase during a specified periodproduct purchase during a specified period• Provides retailers with incentives to support a Provides retailers with incentives to support a

brandbrand• Builds retailer and consumer excitementBuilds retailer and consumer excitement• Encourages immediate purchase and trialEncourages immediate purchase and trial• Reaches price-sensitive consumersReaches price-sensitive consumers• Does not focus on building brand loyaltyDoes not focus on building brand loyalty• Promotional clutter is hard to break throughPromotional clutter is hard to break through


Mass CommunicationMass Communication Public relations: Public relations:

Communication activities that create or Communication activities that create or maintain a positive image of a firm and its maintain a positive image of a firm and its productsproducts• Relatively low costRelatively low cost• Highly credible Highly credible • Poor message control; no guarantee that Poor message control; no guarantee that

message will even reach the targetmessage will even reach the target• Difficult to track the effectiveness of resultsDifficult to track the effectiveness of results


Personal Communication Personal Communication Personal selling: Personal selling:

Direct interaction between a company Direct interaction between a company representative and a customerrepresentative and a customer• Flexible; salespeople can modify the message Flexible; salespeople can modify the message

to match customer needsto match customer needs• Provides immediate feedbackProvides immediate feedback• High cost per contactHigh cost per contact• Difficult to ensure message consistency Difficult to ensure message consistency

between different salespeoplebetween different salespeople• Salesperson credibility is linked to firm imageSalesperson credibility is linked to firm image


Personal Communication Personal Communication Direct marketing: Direct marketing:

Efforts to gain a direct response from Efforts to gain a direct response from individual consumers individual consumers • Easily target specific customers with different Easily target specific customers with different

offersoffers• Easily measure resultsEasily measure results• Can provide extensive information and Can provide extensive information and

multiple offers with a single appealmultiple offers with a single appeal• Facilitates database information collection Facilitates database information collection • Consumers dislike some direct marketingConsumers dislike some direct marketing• Higher cost per contact than mass appealsHigher cost per contact than mass appeals


The Updated Communication The Updated Communication Model: Many-to-ManyModel: Many-to-Many

GroundswellGroundswellA social trend in which people use A social trend in which people use technology to get the things they need from technology to get the things they need from each other, rather than from traditional each other, rather than from traditional institutions such as corporationsinstitutions such as corporations

The many-to-many communication model The many-to-many communication model relies on consumers talking to one anotherrelies on consumers talking to one another

Buzz marketing is keyBuzz marketing is key Technology magnifies the impact of buzz Technology magnifies the impact of buzz

marketingmarketing


Ethical Problems in Buzz Ethical Problems in Buzz Marketing Marketing

Activities designed to deceive Activities designed to deceive consumersconsumers

Buzz marketing targeted a kids or teensBuzz marketing targeted a kids or teens Buzz marketing that damages propertyBuzz marketing that damages property Stealth marketing activities that Stealth marketing activities that

deliberately deceive or lie on behalf of deliberately deceive or lie on behalf of clientsclients


Buzz Marketing Buzz Marketing Viral marketing:Viral marketing:• Marketing activities that aim to increase Marketing activities that aim to increase

brand awareness or sales by brand awareness or sales by consumers passing a message along to consumers passing a message along to other consumersother consumers

Brand ambassadors and evangelists: Brand ambassadors and evangelists: • Loyal customers of a brand recruited to Loyal customers of a brand recruited to

communicate and be salespeople with communicate and be salespeople with other consumers for a brand they care a other consumers for a brand they care a great deal aboutgreat deal about


New Social Media New Social Media Social mediaSocial media

Internet-based platforms that allow Internet-based platforms that allow users to create their own content and users to create their own content and share it with others who access these share it with others who access these sitessites• An important part of the Updated An important part of the Updated

communication modelcommunication model• Takes many formsTakes many forms


New Social Media New Social Media Social networking sites connect people Social networking sites connect people

with similar people based on profileswith similar people based on profiles Opportunities for marketers include:Opportunities for marketers include:• Influencing journalists and opinion Influencing journalists and opinion

leadersleaders• Creating brand communitiesCreating brand communities

Key social networking sitesKey social networking sites• FacebookFacebook• TwitterTwitter


New Social Media New Social Media Virtual worldsVirtual worlds

Online, highly engaging digital Online, highly engaging digital environments where avatars live and environments where avatars live and interact with other avatars in real timeinteract with other avatars in real time• Virtual goods are a booming industryVirtual goods are a booming industry• Virtual worlds are also marketplacesVirtual worlds are also marketplaces• Marketers use virtual worlds forMarketers use virtual worlds for

Building customer relationshipsBuilding customer relationshipsImproving the brand imageImproving the brand image


New Social MediaNew Social Media Product review sitesProduct review sites

Social media sites that enable people to Social media sites that enable people to post stories about their experiences post stories about their experiences with products and serviceswith products and services• Marketers seek to create a connection Marketers seek to create a connection

between consumers and the brandbetween consumers and the brand• Both positive and negative information Both positive and negative information

is availableis available


New Social MediaNew Social Media Mobile apps and geospatial platformsMobile apps and geospatial platforms

Digital applications that integrate Digital applications that integrate sophisticated GPS technology to sophisticated GPS technology to enable users to alert friends of their enable users to alert friends of their exact whereabouts via their mobile exact whereabouts via their mobile phonesphones• Foursquare is a popular siteFoursquare is a popular site• Marketers can reach customers on the Marketers can reach customers on the

go to increase salesgo to increase sales


Promotional Planning in a Promotional Planning in a Web 2.0 WorldWeb 2.0 World

Step 1: Identify target audiencesStep 1: Identify target audiences Step 2: Establish the communication Step 2: Establish the communication

objectives to achieve the following objectives to achieve the following objectives:objectives:• Create awarenessCreate awareness• Inform the marketInform the market• Create desireCreate desire• Encourage purchase and trialEncourage purchase and trial• Build loyalty Build loyalty



Step 3: Determine and allocate the Step 3: Determine and allocate the marketing communication budgetmarketing communication budget• Determine the total promotion budgetDetermine the total promotion budget• Use one the following:Use one the following:

Top-down budgeting techniquesTop-down budgeting techniquesPercentage-of-salesPercentage-of-salesCompetitive-parityCompetitive-parityBottom-up budgeting techniquesBottom-up budgeting techniquesObjective-task methodObjective-task method


Step 3: Determine and allocate the Step 3: Determine and allocate the marketing communication budget marketing communication budget • Decide on a push or pull strategyDecide on a push or pull strategy

Push strategy Push strategy Pull strategy Pull strategy

• Allocate spending to specific promotion Allocate spending to specific promotion activitiesactivities




Step 4: Design the promotion mixStep 4: Design the promotion mix• Involves determining the:Involves determining the:

Specific promotional tools to be usedSpecific promotional tools to be usedMessage to be communicatedMessage to be communicatedCommunication channelCommunication channel

• Message communication goals:Message communication goals:Attention, interest, desire, and action Attention, interest, desire, and action

(AIDA model)(AIDA model)



Step 5: Evaluate the effectiveness of Step 5: Evaluate the effectiveness of the communication programthe communication program• Are communication objectives Are communication objectives

adequately translated into marketing adequately translated into marketing communication that is reaching the communication that is reaching the right target market?right target market?• Some activities (sales promotions) are Some activities (sales promotions) are

easier to evaluate than others (public easier to evaluate than others (public relations)relations)


Multichannel Promotional Multichannel Promotional StrategiesStrategies

Multichannel promotional strategies:Multichannel promotional strategies:• Combine traditional mass media with Combine traditional mass media with

online buzz building activitiesonline buzz building activities• Offer important benefits:Offer important benefits:

Boost effectiveness of using either Boost effectiveness of using either online or offline strategies aloneonline or offline strategies alone

Strengthen brand awarenessStrengthen brand awareness


Real People, Real Choices: Real People, Real Choices: Decision Made at CampfireDecision Made at Campfire

Mike chose option 3Mike chose option 3•Why do you think Mike and his partners Why do you think Mike and his partners

declined to become the agent of record declined to become the agent of record for the potential client?for the potential client?


Keeping It Real:Keeping It Real: Fast-Forward to Fast-Forward to Next Class Decision Time at Next Class Decision Time at

Brownstein Group Brand Brownstein Group Brand CommunicationCommunication

Meet Marc Brownstein, President and Meet Marc Brownstein, President and CEO of Brownstein Group Brand CEO of Brownstein Group Brand CommunicationCommunication

The agency is an innovator in digital The agency is an innovator in digital advertising and social mediaadvertising and social media

The decision to be made: The decision to be made: How should the agency respond to How should the agency respond to competitive attacks against a clients competitive attacks against a clients new product? new product?


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in

any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United

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old and new media: from one-to-many to many-to-many chapter twelve 2012 pearson education, inc....

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