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 (contd)
integrated marketing communication
characteristics
database marketing
in integrated marketing communication
IMC plan & stages
Tailoring marketing
communication to consumers
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Tailoring Marketing
Communication to Consumers
Promotion:
the coordination of marketing
communication efforts
to influence attitudes or behavior
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Tailoring Marketing
Communication to Consumers
Marketing communication:
Informs
Reminds
Persuades
Builds relationships
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Tailoring Marketing Communication
to Consumers (contd)
Integrated marketing communication
(IMC):
A 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
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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 (contd)
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 (contd)
Noise:
anything that interferes with effective
communication
Feedback:
receivers reactions to the message
Marketing Communication
Strategy
&
Promotion Mix
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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
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Figure 12.3: Control Continuum
APPEALS
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Mass Appeals
Advertising:
Non-personal
communication
from an identified
sponsor
using mass media


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Mass Appeals (contd)
Sales promotion:
contests, coupons, & other incentives
designed to build interest
or encourage product purchase
during a specified period
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Mass Appeals (contd)
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
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Buzz Appeals
Viral marketing:
entertaining or informative
messages
designed to be passed along
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Buzz Appeals (contd)
Word of mouth (WOM) marketing:
activities that give people a
reason
to talk about the product

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Buzz Appeals (contd)

activities that
ambush consumers
with promotional content
where not expected

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Group Activity
Your team is a word-of-mouth marketing
department for a sports equipment
company such as Spalding.
Develop 3 ways to create buzz for your
companys products.
SPALDING.COM
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.


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Characteristics of IMC (contd)
Focuses on stakeholders,
not 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
Locates new customers
Stimulates cross-selling
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

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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 budget
Determine total promotion budget
Top-down budgeting techniques
Percentage-of-sales
Competitive-parity
Bottom-up
Objective-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
Communication channel
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

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Real People, Real Choices
General Motors R* Works (Vince OBrien)
Needed marketing plan supporting
Chevys commitment to skiing while
increasing sales at local dealerships
Option 1: continue ski promotion but better qualify
test-drive traffic
Option 2: offer season passes to local ski mountain
as purchase incentive for designated SUV
Option 3: scrap ski relationship and look for another
platform to promote Chevys products
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Discussion
With an IMC program, firms need to
coordinate all marketing communication
activities.
What inherent problems do you see in ensuring this
coordination?
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Group Activity/Discussion
Traditional promotion elements include
advertising, sales promotion, public relations,
personal selling and direct marketing.
--Which do you feel is most effective for each of
the following clients?
1. a cellular phone service provider
2. a hotel
3. a university
4. the manufacturer of a new soft drink
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Discussion
Some say buzz marketing is just a craze
that will fade in a year or two.
--Is it here to stay?
--Do you think buzz is effective? Why or why not?
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Discussion
Consumers are concerned that databases
invade privacy.
--Do you feel this is a valid concern?
--How can marketers use databases effectively and
protect individuals rights?
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Discussion
Some people argue theres really nothing
new about IMC.
What do you think? Why?
Why is the IMC plan superior to conventional
advertising?
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Real People, Real Choices
General Motors R* Works (Vince OBrien)
Vince chose option 2: offer season passes
to local ski mountain as purchase
incentive for designated SUV.
Chevrolet has completed its sixth year of
this Ski Chevy promotional program, and
its all smooth going from here!
SKICHEVY.COM
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Marketing in Action Case:
You Make the Call
What is the decision facing American
Express?
What factors are important in
understanding this decision situation?
What are the alternatives?
What decision(s) do you recommend?
What are some ways to implement your
recommendation?
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Keeping It Real: Fast-Forward to Next
Class, Decision Time at BzzAgent
Meet Joe Chernov, director of PR at
BzzAgent, Inc.
Buzz marketers accused of perpetrating
large scale deception upon consumers
The decision: What public relations
strategy to use to respond to the criticism?