Transcript Consumers Rule - Lampung University

Catching the Buzz:
Promotional Strategy and
Integrated Marketing
Communication
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
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Tailoring marketing
communication to consumers
Tailoring Marketing
Communication to Consumers
• Promotion:
• the coordination of marketing
communication efforts
• to influence attitudes or behavior
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Tailoring Marketing
Communication to Consumers
• Marketing communication:
Informs
Reminds
Persuades
Builds relationships
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Tailoring Marketing Communication
to 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 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
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
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Marketing Communication
Strategy
&
Promotion Mix
Marketing Communication
Strategy and Promotion Mix
• Promotion mix:
communication elements
the marketer controls
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Marketing Communication
Strategy 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
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
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IMC
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.
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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
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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
THEWOMB.COM
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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 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
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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?
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