Catching the Buzz: Promotional Strategy and

Integrated Marketing Communication

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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

Tailoring marketing communication to consumers

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Tailoring MarketingCommunication to Consumers

• Promotion: • the coordination of marketing

communication efforts • to influence attitudes or behavior

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Tailoring MarketingCommunication to

Consumers• Marketing

communication:Informs

• Goods and services• Where to purchase

Reminds • Continue using certain product

Persuades • Choosing one product over

otherBuilds relationships

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Tailoring Marketing Communicationto 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 audiencesConsumers see the variety of messages from a firm as a whole.

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Figure 12.2: The Communication Modelexplain how ideas are translated into messages and transmitted from the marketer to the

consumer who (hopefully) understands what the marketer intended to say

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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• Culture• Interference from other advertising

•Feedback: receiver’s reactions to the message

• Fine tune the messages

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Marketing Communication Strategy

& Promotion Mix

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Marketing CommunicationStrategy and Promotion Mix

• Promotion mix: communication elements the marketer controls

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Marketing CommunicationStrategy and Promotion Mix

• Promotion mix:AdvertisingSales promotionPublic relationsPersonal sellingDirect marketing

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Figure 12.3: Control ContinuumThe messages that consumer receive about companies and products differ in the amount

of control the marketer has over the message being delivered..

APPEALS

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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

• 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

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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

IMC

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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.

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

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Characteristics of IMC (cont’d)

• Focuses on stakeholders, Employees, suppliers, stockholders, the media, trade

association, regulatornot just customers.

• Generates a continuous stream of communication.

• Measures results based on actual feedback.

IMC & Database marketing

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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 audiencesWho is the target marketDifferent segment within total market

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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 budgetDetermine total promotion budgetTop-down budgeting techniquesPercentage-of-salesCompetitive-parityBottom-upObjective-task

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• 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

Step 3: Determine and allocate the marketing communication budget

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• Allocate the budget to a specific promotion mix

• Organizational factors• Market responsiveness• Market potential• Market size

Step 3: Determine and allocate the marketing communication budget

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• 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

•Step 4: Design the promotion mix

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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