Transcript Chapter 3 Effects of IT on Strategy and Competition

Part 5
PROMOTION DECISIONS
Dr. Chen, Principle of Marketing
15: Integrated Marketing
Communications
16: Advertising and Public
Relations
17: Personal Selling and Sales
Promotion
Dr. Chen, Principle of Marketing
Chapter 15
Integrated Marketing
Communications
Professor Jason C. H. Chen, Ph.D.
School of Business Administration
Gonzaga University
Spokane, WA 99258
[email protected]
Dr. Chen, Principle of Marketing
Marketing Applications
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 2. Developing a promotion mix is contingent on many factors, including the
type of product and the product’s attributes. Which of the four promotional
methods - advertising, personal selling, public relations, or sales promotion would you emphasize if you were developing the promotion mix for the
following products? Explain your answers.
 a. Washing machine
 b. Cereal
 c. Halloween candy
 d. Compact disc

 While certain products are better suited to certain promotional methods,
encourage students to be creative. Almost all of the products could benefit from
advertising because they can be targeted to a variety of demographics
___________
through several different mediums.
selling
 Personal
_____ ________works
well for high end products, such as washing machines.
relations
 Public
_______
______involve interactions between an organization and its
stakeholders, which might be necessary for candy because consumers consider
it to be unhealthy.
promotion
 All the products could use sales
______
_________ to create an added incentive.
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Internet Exercise
 Myspace
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 Myspace

 Myspace is not just for friends. It is also a unique
promotional platform for musical artists, especially
unsigned and independent artists. By creating a Myspace
page, musicians can share their songs, post important dates,
or even blog. Myspace music pages are different from
record company websites because they feel more personal.
Artists also take advantage of MySspace’s viral nature by
allowing other Myspace members to post their pictures,
songs, and music videos on their own Myspace profile
pages.
 Visit the website at http://music.myspace.com, and look for
your favorite artist or discover a new one.
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 1. Who is the target market for members?

 Myspace’s target market is musicians who wish to share
their music with other members as well as people who are
interested in music.

 2. What is being promoted to these individuals?

 For musicians, Myspace is offering them a chance to “be
discovered” when members listen to their music, find
information about their tour dates, and share songs.
 For music lovers, Myspace provides a way to listen to music
for free and find new artists and bands to follow.
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 3. What are the promotional objectives of this website?

 Students should look at Table 15.2 for objectives of promotion.
For Myspace, the primary objectives are to create awareness,
retain customers, stimulate demand, and combat competitive
promotional efforts.

 4. Is word-of-mouth communication occurring at this website?
Explain.

 Word-of-mouth communication is personal, informal exchanges
of communication that customers share with one another about
products, brands, and companies.
 When Myspace members interact with each other and promote
each others’ music, they are engaging in world-of-mouth
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communication.
Dr. Chen, Principle of Marketing
Video Case
 VIDEO CASE 15: FRANK PEPE’S
PIZZERIA NAPOLETANA USES POSITIVE
WORD-OF-MOUTH TO BECOME A
PREMIERE PIZZERIA: THE TALE OF
NEW BELGIUM BREWING
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 Summary
 This case discusses how a pizzeria successfully uses
integrated marketing communication. Positive word-ofmouth marketing about the company’s products has
increased its customer base. The pizzeria uses personal
selling to communicate the value of its products when
customers enter the store. It also uses advertising such as
direct mail and digital marketing on sites like Facebook
and Twitter. A major form of sales promotion that the
pizzeria uses is free pizza the week before opening a new
store. Finally, the company makes use of public relations
through fundraisers and donations. Frank Pepe’s Pizzeria
Napoletana has become an expert at using all four parts of
the promotion mix to attract customers.
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1. What are the various promotion elements that Pepe’s uses
to communicate with customers?

 Pepe’s uses personal selling to communicate the value of its
products when customers enter the store. It also uses
advertising such as direct mail and digital marketing on
sites like Facebook and Twitter.
 A major form of sales promotion that the pizzeria uses is
free pizza the week before opening a new store. The
company also makes use of public relations through
fundraisers and donations. These different components
coupled with a premium product and quality experience has
led many customers to tell others about the company
(word-of-mouth marketing).
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2. What role does word of mouth play in Pepe’s
integrated marketing communications?

 Word-of-mouth marketing is one of the strongest
forms of marketing because consumers tend to trust
other consumers.
 Pepe’s uses a combination of strong customer
relationships, premium product offerings, and strong
integrated marketing to create customer satisfaction.
These satisfied customers often tell their friends and
family about their positive experience with Pepe’s,
leading to additional customers.
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3. Evaluate free pizza as a form of sales promotion
in Pepe’s success.

 Pepe’s provides a week of free pizza before
opening a new location. This allows the company
to attract new customers who might not have
known about Pepe’s before and also helps
employees to break in new ovens and become
familiar with Pepe’s culture.
 Not only does this form of sales promotion allow
customers to try Pepe’s quality product, but it also
builds goodwill and a positive image among the
community.
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