Upload
c-alexis-brown
View
6
Download
0
Embed Size (px)
DESCRIPTION
Catching The Buzz Promotional Strategy
Citation preview
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
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 Reminds Persuades Builds relationships
8
Tailoring Marketing Communicationto Consumers (cont’d)
• Integrated marketing communication (IMC):
• A 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.
9
Figure 12.2: The Communication Model
10
The Communication Model
• Encoding: process of translating an idea into a
form of communication
• Source: organization or individual sending
the message
FRAM.COM
11
The Communication Model
•Message: communication in physical form
•Medium: communication vehicle used to reach members of a
target audience
FRAM.COM
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
•Feedback: receiver’s reactions to the message
Marketing Communication Strategy
& Promotion Mix
15
Marketing CommunicationStrategy and Promotion Mix
• Promotion mix: communication elements the marketer controls
16
Marketing CommunicationStrategy and Promotion Mix
• Promotion mix:AdvertisingSales promotionPublic relationsPersonal sellingDirect marketing
17
Figure 12.3: Control Continuum
APPEALS
19
Mass Appeals
•Advertising: • Non-personal
communication • from an identified
sponsor • using mass media
20
Mass Appeals (cont’d)
•Sales promotion: • contests, coupons, & other incentives • designed to build interest • or encourage product purchase • during a specified period
21
Mass Appeals (cont’d)
•Public relations: • communication activities • that create/maintain a positive image • of a firm and its products
22
Personal Appeals
•Personal selling: • direct interaction • between a company representative • and a customer
23
Personal Appeals
•Direct marketing: • efforts to gain a direct response • from individual consumers
24
Buzz Appeals
•Buzz:
• everyday people • who help marketing efforts • by talking about a product or a
company • to others
25
Buzz Appeals
•Buzz marketing: • high-profile entertainment or
news • that gets people to talk • about the brand
26
Buzz Appeals
•Viral marketing: • entertaining or informative messages
• designed to be passed along
27
Buzz Appeals (cont’d)
• Word of mouth (WOM) marketing:
• activities that give people a reason
• to talk about the product
28
Buzz Appeals (cont’d)
•Guerrilla marketing: • activities that • “ambush” consumers • with promotional content • where not expected
29
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 company’s products.
SPALDING.COM
IMC
31
Integrated Marketing Communication (IMC)
•marketing communication programs
•create and maintain •long-term relationships •with customers •by satisfying their needs.
32
Integrated Marketing Communication (IMC)
• IMC unifies • all marketing communication tools
• to send a consistent, persuasive message.
33
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.
34
Characteristics of IMC (cont’d)
• Focuses on stakeholders, not just customers.
• Generates a continuous stream of communication.
• Measures results based on actual feedback.
IMC & Database marketing
36
IMC and Database Marketing
• Database marketing: • creation of ongoing relationship
with a set of customers • who have identifiable interest
in a product
37
IMC and Database Marketing
• Customers’ responses = ongoing communication process.
Is interactiveBuilds relationshipsLocates new customersStimulates cross-sellingIs measurableYields trackable responses
38
Developing the IMC plan (Figure 12.4)
39
Developing the IMC Plan
• Step 1: Identify target audiences
40
Developing the IMC Plan
• Step 2: Establish communication objectives Create awareness Inform the market Create desire Encourage purchase and trial Build loyalty
41
Figure 12.5: The Hierarchy of Effects – Step 2
42
• Step 3: Determine and allocate the marketing communication budgetDetermine total promotion budgetTop-down budgeting techniquesPercentage-of-salesCompetitive-parityBottom-upObjective-task
43
• 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
44
• 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
45
• 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
46
Step 5: Evaluate the effectiveness of the communication program
Are communication objectives adequately translated into marketing communication that is reaching the right target
market?
47
The end
48
Real People, Real Choices
• General Motors R* Works (Vince O’Brien)• Needed marketing plan supporting Chevy’s
commitment to skiing while increasing sales at local dealershipsOption 1: continue ski promotion but better qualify test-
drive trafficOption 2: offer season passes to local ski mountain as
purchase incentive for designated SUVOption 3: scrap ski relationship and look for another
platform to promote Chevy’s products
49
Discussion
• With an IMC program, firms need to coordinate all marketing communication activities.What inherent problems do you see in ensuring this
coordination?
50
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
51
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?
52
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?
53
Discussion
• Some people argue there’s really nothing new about IMC.What do you think? Why?Why is the IMC plan superior to conventional
advertising?
54
Real People, Real Choices
• General Motors R* Works (Vince O’Brien)• 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 it’s all smooth going from here!
SKICHEVY.COM
55
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?
56
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?