Transcript Slide 1
Old and New Media:
From One-to-Many to Many-to-Many
Chapter Twelve
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
Chapter Objectives
Understand the communication process
and the traditional promotion mix
Understand how marketers communicate
using an updated communication model
that incorporates buzz marketing
activities and new social media
Describe the steps in traditional and
multichannel promotional planning
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Real People, Real Choices:
Decision Time at Campfire
Should Campfire expand its staff and
operations to become the digital AOR for
their new client?
• Option 1: Yes, become the digital AOR and
hire new people capable of delivering
digital offerings
• Option 2: Partner with a smaller more
traditional agency and split the work as
necessary to handle the clients needs
• Option 3: Walk away and decline the offer
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The Traditional Communication
Model: One-to-Many
Promotion
The coordination of marketing
communication efforts to influence
attitudes or behavior
Marketing communications purposes
include the following:
• Inform
• Remind
• Persuade
• Build relationships
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The Traditional Communication
Model: One-to-Many
Integrated marketing communication
(IMC):
Process that marketers use to plan,
develop, execute, and evaluate
coordinated, measurable, persuasive
brand communication programs over
time to targeted audiences
• Touchpoints are varied
• A multichannel promotional strategy is
needed
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The Traditional Communication
Model: One-to-Many
Three models of marketing
communication include:
• One-to-many model
Relies
on traditional forms of mass
communication
• One-to-one model
Database
marketing, direct marketing,
personal selling are key
• Many-to-many model
Uses
buzz building and social media
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The Communication Model
The communication model explains how
organizations create and transmit messages
Elements of the model include:
• Source: Firm or person sending a message
• Encoding: Transmitting an idea into a form of
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communication that conveys meaning
Message: Communication in physical form
that goes from a sender to a receiver
Medium: Communication vehicle through
which a message is transmitted
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The Communication Model
Elements of the model (cont.):
• Receiver: Individual or organization that
intercepts and interprets the message
• Decoding: Process whereby a receiver
assigns meaning to a message
• Noise: Anything that interferes with
effective communication
• Feedback: Receiver’s reactions to the
message
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The Traditional Promotion Mix
Promotion mix:
The major communication elements
that the marketer controls
• Advertising
• Sales promotion
• Public relations
• Personal selling
• Direct marketing
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Mass Communication
Advertising:
Nonpersonal communication from an
identified sponsor using mass media
• Provides marketers with total control
• Rich and dynamic advertising images can
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help to build or reinforce brand image
May provide factual information or offer
reminders to consumers
Lacks credibility with cynical consumers
Extremely expensive
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Mass Communication
Sales promotion:
Contests, coupons, and other incentives
designed to build interest or encourage
product purchase during a specified period
• Provides retailers with incentives to support a
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brand
Builds retailer and consumer excitement
Encourages immediate purchase and trial
Reaches price-sensitive consumers
Does not focus on building brand loyalty
Promotional clutter is hard to break through
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Mass Communication
Public relations:
Communication activities that create or
maintain a positive image of a firm and its
products
• Relatively low cost
• Highly credible
• Poor message control; no guarantee that
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message will even reach the target
Difficult to track the effectiveness of results
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Personal Communication
Personal selling:
Direct interaction between a company
representative and a customer
• Flexible; salespeople can modify the message
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to match customer needs
Provides immediate feedback
High cost per contact
Difficult to ensure message consistency
between different salespeople
Salesperson credibility is linked to firm image
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Personal Communication
Direct marketing:
Efforts to gain a direct response from
individual consumers
• Easily target specific customers with different
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offers
Easily measure results
Can provide extensive information and
multiple offers with a single appeal
Facilitates database information collection
Consumers dislike some direct marketing
Higher cost per contact than mass appeals
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The Updated Communication
Model: Many-to-Many
Groundswell
A social trend in which people use
technology to get the things they need from
each other, rather than from traditional
institutions such as corporations
The many-to-many communication model
relies on consumers talking to one another
Buzz marketing is key
Technology magnifies the impact of buzz
marketing
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Ethical Problems in Buzz
Marketing
Activities designed to deceive
consumers
Buzz marketing targeted a kids or teens
Buzz marketing that damages property
Stealth marketing activities that
deliberately deceive or lie on behalf of
clients
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Buzz Marketing
Viral marketing:
• Marketing activities that aim to increase
brand awareness or sales by
consumers passing a message along to
other consumers
Brand ambassadors and evangelists:
• Loyal customers of a brand recruited to
communicate and be salespeople with
other consumers for a brand they care a
great deal about
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New Social Media
Social media
Internet-based platforms that allow
users to create their own content and
share it with others who access these
sites
• An important part of the Updated
communication model
• Takes many forms
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New Social Media
Social networking sites connect people
with similar people based on profiles
Opportunities for marketers include:
• Influencing journalists and opinion
leaders
• Creating brand communities
Key social networking sites
• Facebook
• Twitter
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New Social Media
Virtual worlds
Online, highly engaging digital
environments where avatars live and
interact with other avatars in real time
• Virtual goods are a booming industry
• Virtual worlds are also marketplaces
• Marketers use virtual worlds for
Building
customer relationships
Improving the brand image
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New Social Media
Product review sites
Social media sites that enable people to
post stories about their experiences
with products and services
• Marketers seek to create a connection
between consumers and the brand
• Both positive and negative information
is available
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New Social Media
Mobile apps and geospatial platforms
Digital applications that integrate
sophisticated GPS technology to
enable users to alert friends of their
exact whereabouts via their mobile
phones
• Foursquare is a popular site
• Marketers can reach customers on the
go to increase sales
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Promotional Planning in a
Web 2.0 World
Step 1: Identify target audiences
Step 2: Establish the communication
objectives to achieve the following
objectives:
• Create awareness
• Inform the market
• Create desire
• Encourage purchase and trial
• Build loyalty
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Promotional Planning in a
Web 2.0 World
Step 3: Determine and allocate the
marketing communication budget
• Determine the total promotion budget
• Use one the following:
Top-down
budgeting techniques
Percentage-of-sales
Competitive-parity
Bottom-up budgeting techniques
Objective-task method
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Promotional Planning in a
Web 2.0 World
Step 3: Determine and allocate the
marketing communication budget
• Decide on a push or pull strategy
Push
strategy
Pull strategy
• Allocate spending to specific promotion
activities
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Promotional Planning in a
Web 2.0 World
Step 4: Design the promotion mix
• Involves determining the:
Specific
promotional tools to be used
Message to be communicated
Communication channel
• Message communication goals:
Attention,
interest, desire, and action
(AIDA model)
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Promotional Planning in a
Web 2.0 World
Step 5: Evaluate the effectiveness of
the communication program
• Are communication objectives
adequately translated into marketing
communication that is reaching the
right target market?
• Some activities (sales promotions) are
easier to evaluate than others (public
relations)
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Multichannel Promotional
Strategies
Multichannel promotional strategies:
• Combine traditional mass media with
online buzz building activities
• Offer important benefits:
Boost
effectiveness of using either
online or offline strategies alone
Strengthen brand awareness
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Real People, Real Choices:
Decision Made at Campfire
Mike chose option 3
• Why do you think Mike and his partners
declined to become the agent of record
for the potential client?
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Keeping It Real: Fast-Forward to
Next Class Decision Time at Brownstein
Group Brand Communication
Meet Marc Brownstein, President and
CEO of Brownstein Group Brand
Communication
The agency is an innovator in digital
advertising and social media
The decision to be made:
How should the agency respond to
competitive attacks against a clients
new product?
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written permission of the publisher. Printed in the United
States of America
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