Catching the Buzz: Promotional Strategy and Integrated Marketing Communication

1. Catching the Buzz: Promotional Strategy and Integrated Marketing Communication

2. Chapter Objectives • marketing communication • communications model • promotion mix

3. Chapter Objectives • word of mouth marketing, • buzz marketing, • viral marketing, • guerrilla marketing • provide effective marketing communication

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

5. Tailoring marketing communication to consumers

6. Tailoring MarketingCommunication to Consumers • Promotion: • the coordination of marketing communication efforts • to influence attitudes or behavior

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

8. Tailoring Marketing Communicationto Consumers (cont’d) • Integrated marketing communication (IMC): • A strategic business process • used to plan, develop, execute, and evaluatecoordinated, measurable, persuasive brand communication programs • over time to targeted audiences • Consumers see the variety of messages • from a firm as a whole.

9. 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

10. FRAM.COM The Communication Model • Encoding: • process of translating an idea into a form of communication • Source: • organization or individual sending the message

11. FRAM.COM The Communication Model • Message: • communication in physical form • Medium: • communication vehicle • used to reach members of a target audience

12. 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

13. 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

17. Marketing Communication Strategy& Promotion Mix

18. Marketing CommunicationStrategy and Promotion Mix • Promotion mix: • communication elements • the marketer controls

19. Marketing CommunicationStrategy and Promotion Mix • Promotion mix: Advertising Sales promotion Public relations Personal selling Direct marketing

21. 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..

22. APPEALS

23. Mass Appeals • Advertising: • Non-personal communication • from an identified sponsor • using mass media

24. Mass Appeals (cont’d) • Sales promotion: • contests, coupons, & other incentives • designed to build interest • or encourage product purchase • during a specified period

25. Mass Appeals (cont’d) • Public relations: • communication activities • that create/maintain a positive image • of a firm and its products

27. Personal Appeals • Personal selling: • direct interaction • between a company representative • and a customer

28. Personal Appeals • Direct marketing: • efforts to gain a direct response • from individual consumers

29. Buzz Appeals • Buzz: • everyday people • who help marketing efforts • by talking about a product or a company • to others

30. Buzz Appeals • Buzz marketing: • high-profile entertainment or news • that gets people to talk • about the brand

31. 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,

32. Buzz Appeals • Viral marketing: • entertaining or informative messages • designed to be passed along

33. Buzz Appeals (cont’d) • Word of mouth (WOM) marketing: • activities that give people a reason • to talk about the product

35. Buzz Appeals (cont’d) • Guerrilla marketing: • activities that • “ambush” consumers • with promotional content • where not expected

36. IMC

37. Integrated Marketing Communication (IMC) • marketing communication programs • create and maintain • long-term relationships • with customers • by satisfying their needs.

38. Integrated Marketing Communication (IMC) • IMC unifies • all marketing communication tools • to send a consistent, persuasive message.

39. Characteristics of IMC • Creates a single unified voice for firm. • Begins with the customer. • develop relationships with customers through1-to-1 marketing. • Relies on 2-way communication. • TV, magazine, newspaper, outdoor ad rely on 1 way communications, on longterm this is not good

40. 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.

41. IMC & Database marketing

42. IMC and Database Marketing • Database marketing: • creation of ongoing relationship • with a set of customers • who have identifiable interest • in a product

43. 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

44. Developing the IMC plan (Figure 12.4)

45. Developing the IMC Plan • Step 1: Identify target audiences • Who is the target market • Different segment within total market

46. Developing the IMC Plan • Step 2: Establish communication objectives • Create awareness • Inform the market • Create desire • Encourage purchase and trial • Build loyalty

47. Figure 12.5: The Hierarchy of Effects – Step 2

48. 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

49. 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

50. 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