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 3

Chapter Objectives (cont’d) • integrated marketing communication  characteristics • database marketing  in integrated marketing communication • IMC plan & stages 4

Tailoring marketing communication to consumers

Tailoring Marketing Communication to Consumers

• Promotion

: • the coordination of marketing communication efforts • to influence attitudes or behavior 6

Tailoring Marketing Communication to Consumers • Marketing communication:  Informs • Goods and services • Where to purchase  Reminds • Continue using certain product  Persuades • Choosing one product over other  Builds relationships 7

Tailoring Marketing Communication to Consumers (cont’d)

• Integrated marketing communication (IMC):

• A strategic business 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 explain how ideas are translated into messages and transmitted from the marketer to the consumer who (hopefully) understands what the marketer intended to say 9

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 12

The Communication Model (cont’d)

• Noise

:

 anything that

interferes

with effective communication • Culture • Interference from other advertising

• Feedback

:

 receiver’s

reactions

to the message • Fine tune the messages 13

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15

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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 19

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Figure 12.3: Control Continuum The messages that consumer receive about companies and products differ in the amount of control the marketer has over the message being delivered..

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APPEALS

Mass Appeals

• Advertising

: • Non-personal communication • from an identified sponsor • using mass media 23

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 25

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Personal

Appeals

•Personal selling:

•

direct interaction

• between a company representative • and a customer 27

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

company about a product or a

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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• • Rather than blitzing the airways with 30-second TV commercials for its new Focus subcompact, Ford Motor Co. (F ) recruited just a handful of trendsetters in a few markets and gave them each a Focus to drive for six months. Their duties? Simply to be seen with the car and to hand out Focus-themed trinkets to anyone who expressed interest in it. "We weren't looking for celebrities. We were looking for the assistants to celebrities, party planners, disk jockeys--the people who really seemed to influence what was cool, 31

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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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

firm.

for • Begins with the

customer

.

• develop relationships with customers

through

1-to-1 marketing

.

• Relies on

2-way communication

.

 TV, magazine, newspaper, outdoor ad rely on 1 way communications, on longterm this is not good 39

Characteristics of IMC (cont’d)

•

Focuses on stakeholders ,



Employees, suppliers, stockholders, the media, trade association, regulator



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 – Who purchased the goods • Locates new customers – Customer neighbor • Stimulates cross-selling – Questionnaire for costumer • 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  Who is the target market  Different segment within total market 45

Developing the IMC Plan •

Step 2:

Establish communication objectives  Create awareness  Inform the market  Create desire  Encourage purchase and trial  Build loyalty 46

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 50

•Step 4:

Design the promotion mix • Type of appeal • AIDA model:  communication goals of

attention, interest, desire, & action

• Structure of the appeal  Tout one of positive attribute  Superiority  Buy the product • Communication channel  Internet  Mass media  sms

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 53