Download Interactive Marketing

MARKETING
Real People, Real Choices
Fourth Edition
CHAPTER 12
Connecting with the Customer:
Integrated Marketing Communications
and Interactive Marketing
How Many Can You Answer?
• Name the tiger that says, “They’re
grrrrrreat!”
• Name one or more products for which
Tiger Woods is a spokesperson.
• What character is featured in Energizer
battery ads?
• At Burger King, you can have it “ ___,”
whereas at Hardee’s the burgers are
_____.
12-2
Functions of Marketing Communications
• Inform
– “A tree fell in the forest. Did it make a sound?”
• Persuade
– Prefer one brand over another
• Remind
– Consumers have short memories
• Build relationships
– Retaining old customers is cheaper than getting
new customers
• Continuous communication to build relationships
12-3
The Communication Model
• The sender (business) encodes the idea
into a message
• Uses a medium to communicate the
message
• The receiver (consumer) decodes the
message back to the idea
• Noise as interference in the encoding
and decoding of message
• Feedback from receiver (consumer)
12-4
Traditional / Non-traditional Forms
• The Promotion Mix
– Advertising
– Sales promotion
– Special events
– Salespeople
– PR
– Direct Marketing/Mail
– Billboards
– Posters, brochures,
flyers
– Train transfers/bus
transfers
• Product Placements
– Movies and TV
shows
– Books, Plays, Works
of Art (Andy Warhol)
• Viral Marketing
• Guerilla Marketing
• Infomercials
• Corporate gifts
• Other non-traditional
forms
12-5
Mar Com Matrix
Factor
Advertising
PR
Events
DR
SP
Placements
Intensity of
effect
Low
Mod
High
High
High
High
Effect
duration
Short
Mod
Mod
Short
Short
Mod
Control
Total
Low
High
High
High
Mod
Ability to
target
High
Low
Mod
Very high
Mod
Low
Customizabilty of message
Mod
Low
Low-high
High
Low-high
Mod
Credibility
Low
High
Mod
Low
Mod
High
Closes sale
Low
Low
Low
Mod
High
Mod
Greatest
application
Broad,,large
TA
Credibil
ity is
vital
Image
Unique
consumer
needs
Encourag
e Trial
Discourage
attributions
12-6
Role of IMC
• Promotion is communication by
marketers that informs, persuades,
reminds, and builds relationships with
potential buyers of a product to
influence an opinion or elicit a response
• IMC is a plan for optimal use of the
elements of promotion
12-7
Putting It All Together
• Integrated Marketing Communications
(IMC) is “a strategic business process
used to plan, develop, execute, and
evaluate unified, coordinated,
measurable, persuasive brand
communication programs over time with
consumers, customers, prospects, and
other targeted, relevant external and
internal audiences.”
12-8
Appeals
• Personal appeals allow for direct
interaction between a company
representative and a customer
• Mass appeals seek to reach many
prospective customers at the same time
12-9
New Appeals
• Guerrilla marketing
– “ambush” consumers in unexpected places
• Viral marketing
– Customers act as selling agents against
some consideration
• Buzz (word of mouth generated by customers
which is considered authentic) and hype
(propaganda planted by companies; not seen
as authentic)
12-10
Advertising
• Non-personal communication from an
identified sponsor using the mass media
can:
– convey rich and dynamic images
– establish and reinforce brand identity
– communicate factual information
– remind customer to buy
• Credibility issues
12-11
Sales Promotion
• Programs that build interest or
encourage purchase of a product
through the use of an incentive in a
specified time period
– coupons
– contests
– rebates
– premiums
12-12
Publicity and Public Relations
• Portray an organization and its products
positively by influencing the perceptions
of various publics
– writing press releases
– holding special events
– conducting and publishing consumer
surveys
– putting a positive spin on negative
news
12-13
Characteristics of an IMC Program
•
•
•
•
•
•
Creates a single unified voice
Begins with the customer
Seeks to develop relationships
Involves 2-way communication
Focuses on stakeholders
Generates a continuous stream of
communication
• Measures results based on actual
feedback
12-14
Step 2: Establish Promotion Objectives
• Objectives will change depending on where
consumers are on the path to loyalty
• Possible objectives
– create awareness (repetitive ads, slogans, jingles)
– inform the market (detailed copy, infomercials,
brochures, website)
– create desire (status and sex appeals, celebrity
endorsements, product placement)
– encourage trial (sales promotions like discounts,
free samples, etc.)
– build loyalty (direct mail, website)
12-15
Step 3: Determine Total Promotion Budget
• Top-down budgeting techniques
– percentage-of-sales method
• During periods of slow sales, you may risk
reducing your advertising
– competitive parity
• Specific initiatives are ignored
• Bottom-up budgeting technique
– objective-task method
• Sometimes difficult to accurately estimate costs
12-16
Push vs. Pull strategy
• Push
– Pushing consumers to buy (hard-sell
approaches)
– Pushing the channel to sell (discounting,
rebates and other price-offs)
• Pull
– Relying on the power of the brand name to
bring in the customers (image advertising
and some sales promotions, PR,
placements, etc.)
12-17
Effects of Time and the PLC
• Introduction phase: push strategy; mix
relies heavily on advertising, sales
promotions, and public relations
• Growth phase: heavy advertising with
emphasis on differentiation
• Maturity phase: emphasis on sales
promotions to encourage brand switching
• Decline phase: dramatic reductions in
promotional spending
12-18
Step 4: Designing the Promotion Mix
• Which elements of promotion will be
used?
• What message is to be communicated?
– Type of appeal?
• What communication channels should
be employed?
12-19
The AIDA Model
•
•
•
•
Attention
Interest
Desire
Action
12-20
Step 5: Evaluate the Effectiveness
• Is the plan working?
– Measure response to sales promotions
– Measure brand awareness, recall, and
image before and after ad campaign
– Analyze and compare sales performances
by territory and sales force
– Clip articles appearing in media
12-21
Interactive Marketing
• Attention Economy
– The amount of information seems infinite;
our ability to get it is limited by the time we
can spend looking
– Interactive media are in the business of
making wanted information easily
accessible
• Customized marketing communications yield
a measurable response in the form of a
purchase or request for more information
12-22
Levels of Interactive Response
• First-order response: product offer
directly yields a transaction
• Second-order response: product offer
results in some form of customer
feedback but it isn’t a transaction
– request for more information
– request NOT to receive more
information
12-23
Database Marketing
• Critical to interactive marketers as they
seek to track responses to messages
and develop a dialogue with customers
• Allows the organization to learn
customer preferences, fine-tune and
test offerings, build relationships
12-24
Database Marketing
•
•
•
•
•
•
Is interactive
Builds relationships
Locates new customers
Stimulates cross-selling
Is measurable
Is trackable
12-25