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Chapter 12
Catch the Buzz: Promotional
Strategy and Integrated
Marketing Communication
Chapter Objectives
 Understand the role of marketing
communication
 Understand the communication model
 List and describe the tradition elements
of the promotion mix
 Explain how WOM, buzz, guerilla, and
experiential marketing, and consumergenerated media provide alternatives to
traditional media forms
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Chapter Objectives
 Describe integrated marketing
communication (IMC) and its
characteristics
 Explain the important role of
database marketing in integrated
marketing communication
 Explain the stages in developing an
IMC plan
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Real People, Real Choices:
Decision Time at Tourism Vancouver
 How can Tourism Vancouver best continue to
play a lead role in the 2010 Olympic and
Paralympic Winter games?
– Option 1: Be the first agency to lead a specific
initiative in advance of and during the games
– Option 2: Form a tourism steering committee to
draft and implement a joint 2010 tourism strategy
– Option 3: Take action independent of the
consortium’s joint tourism strategy
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Talk to Your Customers!
 Promotion:
The coordination of
marketing communication
efforts to influence attitudes
or behavior
 Marketing communications
purpose:
–
–
–
–
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Inform
Remind
Persuade
Build relationships
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Talk to Your Customers!
 Integrated marketing communication
(IMC):
Process that marketers use 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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Marketing Communications Take
Many Forms
Beach’n
Billboard is
one of many
new firms that
offer marketers
unique ways of
reaching their
customers
See the ad gallery at Beach’n Billboard
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Figure 12.2
Communication Model
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The Communication Model
 Elements of the model:
– Source: Firm or person sending a message
– Encoding: Transmitting an idea into a form of
communication that conveys meaning
– Message: Communication in physical form
that goes from a sender to a receiver
– Medium: Communication vehicle through
which a message is transmitted
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Marketing Sources
Marketers often choose
celebrity endorsers as sources
to make their messages more
believable or their products
more attractive to the buyers
Q Scores can be helpful in
selecting the right endorser
Visit QScores.com
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The Communication Model
 Elements of the model (cont.):
– Receiver: Individual or organization that
intercepts and interprets the message
– Decoding: Process whereby a receiver
assigns meaning to a message
– Noise: Anything that interferes with effective
communication
– Feedback: Receiver’s reactions to the
message
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The Promotion Mix
 Promotion mix:
The major communication elements
that the marketer controls
– The extent of the marketer’s control over
different communication elements varies
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Mass Appeals
 Advertising:
Nonpersonal communication from an
identified sponsor using mass media
– Provides marketers with total control
– Rich and dynamic advertising images can
help to build or reinforce brand image
– May provide factual information or offer
reminders to consumers
– Lacks credibility with cynical consumers
– Extremely expensive
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Mass Appeals
 Sales promotion:
Contests, coupons, and other incentives
designed to build interest or encourage
product purchase during a specified period
–
–
–
–
–
–
Provides retailers with incentives to support a brand
Builds retailer and consumer excitement
Encourages immediate purchase and trial
Reaches price-sensitive consumers
Does not focus on building brand loyalty
Promotional clutter is hard to break through
Visit Coupons.com
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Mass Appeals
 Public relations:
Communication activities that create or
maintain a positive image of a firm and
its products
– Relatively low cost
– Highly credible
– Poor message control; no guarantee that
message will even reach the target
– Difficult to track the results
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Personal Appeals
 Personal selling:
Direct interaction between a company
representative and a customer
– Flexible; salespeople can modify the
message to match customer needs
– Immediate feedback is available to sales rep
– High cost per contact
– Difficult to ensure message consistency
between different sales
representatives
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Personal Appeals
 Direct marketing:
Efforts to gain a direct response from
individual consumers
– Easily target specific customers with different offers
– Easily measure results
– Can provide extensive information and multiple offers
with a single appeal
– Facilitates marketing database information collection
– Consumers dislike some forms of direct marketing
– Higher cost per contact than mass appeals
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Buzz Appeals
 Buzz:
– Word-of-mouth communication that
consumers view as authentic
 Buzz marketing:
– Using high-profile entertainment or news that
gets people to talk about the brand
 Viral marketing:
– Creating entertaining or informative
messages to be passed along
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Viral Marketing—Hits and Misses
Explore the Web sites shown below. Would
these Web sites interest you enough to share
the URLs with friends? Why or why not?
What must marketers do to ensure a successful
“buzz” campaign?
Cowabduction.com
SubserviantChicken.com
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Buzz Appeals
 Word-of-mouth (WOM) marketing:
– Activities that give people a reason to talk
about the product
 Guerrilla marketing:
– Activities that “ambush” consumers with
promotional content in places they are not
expecting to encounter this kind of activity
– Example: IBM’s corporate graffiti
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Buzz Appeals
 Experiential marketing:
– Marketing activities that attempt to give
customers an opportunity to actually interact
with a brand
 Consumer-generated media:
– The online consumer-generated comments,
opinions, and product-related stories
available to other consumers through digital
media
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Ethical Issues in Buzz Marketing
 Ethical problems in buzz marketing can
occur when:
– Activities are designed to deceive consumers
– Directing buzz marketing at children or teens
– Buzz marketing activities damage property
– Stealth marketing activities deliberately
deceive or lie on behalf of clients
– Shilling, infiltration, comment SPAM or SPAM
is used
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
It’s Debatable
Class Discussion Question
Can online reviews be trusted?
Are you as likely to believe online
consumer reviews now as you were in
the past?
Will online consumer reviews continue
to aid marketers, or will their influence
decline in the future?
Where do you stand?
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Integrated Marketing
Communication (IMC)
 With IMC, marketers plan and execute
communication programs that create
and maintain long-term relationships
with customers by satisfying needs
– IMC unifies all marketing communication
tools to send a consistent, persuasive
message
– IMC is becoming increasingly important
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Characteristics of IMC
 Marketers must understand that IMC:
– Begins with the customer
– Creates a single unified voice for firm
– Seeks to develop relationships with
customers through one-to-one marketing
– Relies on two-way communication
– Focuses on stakeholders and customers
– Generates continuous communication
– Focuses on changing behavior
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IMC and Database Marketing
 IMC efforts rely on marketing
databases
 Database marketing:
– The creation of an ongoing relationship with a
set of customers who have identifiable
interest in a product
– Customers’ responses become part of the
ongoing communication process
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Figure 12.4
Steps to Develop an IMC Plan
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Developing the IMC Plan
 Step 1: Identify target audiences
 Step 2: Establish the 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
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Developing the IMC Plan
 Step 3: Determine and allocate the
marketing communication budget
– Determine the total promotion budget
– Use one the following:
•
•
•
•
•
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Top-down budgeting techniques
Percentage-of-sales
Competitive-parity
Bottom-up budgeting techniques
Objective-task method
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Developing the IMC Plan
 Step 3: Determine and allocate the
marketing communication budget
– Decide on a push or pull strategy
• Push strategy: firm moves products through
the channel by convincing channel members
to offer them
• Pull strategy: firm moves products through the
channel by building desire among consumers,
convincing retailers to respond to demand
– Allocate budget to a specific promotion mix
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Developing the IMC Plan
 Step 4: Design the promotion mix
– Type of appeal
• AIDA model: communication goals of
attention, interest, desire, and action
– Structure of the appeal
• One-sided vs. two-sided
– Communication channel
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Using the AIDA Model
This ad uses a unique image to
grab the consumer’s attention
If an ad without copy is to be
effective, the brand name and
attributes of the product must
be well-known
Would this ad work well in the
United States as shown?
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Developing the IMC Plan
 Step 5: Evaluate the effectiveness of
the communication program
– Are communication objectives adequately
translated into marketing communication that
is reaching the right target market?
– Some activities (sales promotions) are easier
to evaluate than others (public relations)
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Real People, Real Choices:
Decision Made at Tourism Vancouver
 Walt chose option 1
– Implementation: Tourism Vancouver is
implementing plans to operate kiosks
throughout Vancouver that would service
visitors to the Olympics.
– Measuring success: Tourism Vancouver will
compare the results of various activities
against the objectives set for visitors, sales,
sponsorships, etc.
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
Keeping It Real: Fast-Forward to
Next Class Decision Time at BzzAgent
 Meet Joe Chernov, VP of
Communication at BzzAgent
 BzzAgent operates in the “word-ofmouth” marketing sector
 The decision to be made:
How should BzzAgent respond to the
negative publicity surrounding its
business activities?
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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permissionCopyright
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Printed
in theEducation,
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of America.
© 2009
Pearson
Inc.
Publishing as Prentice Hall
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall