Download Ch 12

Old and New Media:
From One-to-Many to Many-to-Many
Chapter Twelve
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
Chapter Objectives
 Understand the communication process


and the traditional promotion mix
Understand how marketers communicate
using an updated communication model
that incorporates buzz marketing
activities and new social media
Describe the steps in traditional and
multichannel promotional planning
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Real People, Real Choices:
Decision Time at Campfire

Should Campfire expand its staff and
operations to become the digital AOR for
their new client?
• Option 1: Yes, become the digital AOR and
hire new people capable of delivering
digital offerings
• Option 2: Partner with a smaller more
traditional agency and split the work as
necessary to handle the clients needs
• Option 3: Walk away and decline the offer
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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The Traditional Communication
Model: One-to-Many
 Promotion
The coordination of marketing
communication efforts to influence
attitudes or behavior
 Marketing communications purposes
include the following:
• Inform
• Remind
• Persuade
• Build relationships
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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The Traditional Communication
Model: One-to-Many
 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
• Touchpoints are varied
• A multichannel promotional strategy is
needed
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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The Traditional Communication
Model: One-to-Many
 Three models of marketing
communication include:
• One-to-many model
Relies
on traditional forms of mass
communication
• One-to-one model
Database
marketing, direct marketing,
personal selling are key
• Many-to-many model
Uses
buzz building and social media
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The Communication Model


The communication model explains how
organizations create and transmit messages
Elements of the model include:
• 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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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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-8
The Traditional Promotion Mix
 Promotion mix:
The major communication elements
that the marketer controls
• Advertising
• Sales promotion
• Public relations
• Personal selling
• Direct marketing
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-9
Mass Communication

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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12-10
Mass Communication

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
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Mass Communication

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 effectiveness of results
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Personal Communication

Personal selling:
Direct interaction between a company
representative and a customer
• Flexible; salespeople can modify the message
•
•
•
•
to match customer needs
Provides immediate feedback
High cost per contact
Difficult to ensure message consistency
between different salespeople
Salesperson credibility is linked to firm image
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Personal Communication

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 database information collection
Consumers dislike some direct marketing
Higher cost per contact than mass appeals
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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The Updated Communication
Model: Many-to-Many




Groundswell
A social trend in which people use
technology to get the things they need from
each other, rather than from traditional
institutions such as corporations
The many-to-many communication model
relies on consumers talking to one another
Buzz marketing is key
Technology magnifies the impact of buzz
marketing
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Ethical Problems in Buzz
Marketing
 Activities designed to deceive
consumers
 Buzz marketing targeted a kids or teens
 Buzz marketing that damages property
 Stealth marketing activities that
deliberately deceive or lie on behalf of
clients
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Buzz Marketing
 Viral marketing:
• Marketing activities that aim to increase
brand awareness or sales by
consumers passing a message along to
other consumers
 Brand ambassadors and evangelists:
• Loyal customers of a brand recruited to
communicate and be salespeople with
other consumers for a brand they care a
great deal about
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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New Social Media
 Social media
Internet-based platforms that allow
users to create their own content and
share it with others who access these
sites
• An important part of the Updated
communication model
• Takes many forms
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New Social Media
 Social networking sites connect people
with similar people based on profiles
 Opportunities for marketers include:
• Influencing journalists and opinion
leaders
• Creating brand communities
 Key social networking sites
• Facebook
• Twitter
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12-19
New Social Media
 Virtual worlds
Online, highly engaging digital
environments where avatars live and
interact with other avatars in real time
• Virtual goods are a booming industry
• Virtual worlds are also marketplaces
• Marketers use virtual worlds for
Building
customer relationships
Improving the brand image
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-20
New Social Media
 Product review sites
Social media sites that enable people to
post stories about their experiences
with products and services
• Marketers seek to create a connection
between consumers and the brand
• Both positive and negative information
is available
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-21
New Social Media
 Mobile apps and geospatial platforms
Digital applications that integrate
sophisticated GPS technology to
enable users to alert friends of their
exact whereabouts via their mobile
phones
• Foursquare is a popular site
• Marketers can reach customers on the
go to increase sales
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Promotional Planning in a
Web 2.0 World
 Step 1: Identify target audiences
 Step 2: Establish the communication
objectives to achieve the following
objectives:
• Create awareness
• Inform the market
• Create desire
• Encourage purchase and trial
• Build loyalty
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Promotional Planning in a
Web 2.0 World
 Step 3: Determine and allocate the
marketing communication budget
• Determine the total promotion budget
• Use one the following:
Top-down
budgeting techniques
Percentage-of-sales
Competitive-parity
Bottom-up budgeting techniques
Objective-task method
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Promotional Planning in a
Web 2.0 World
 Step 3: Determine and allocate the
marketing communication budget
• Decide on a push or pull strategy
Push
strategy
Pull strategy
• Allocate spending to specific promotion
activities
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-25
Promotional Planning in a
Web 2.0 World
 Step 4: Design the promotion mix
• Involves determining the:
Specific
promotional tools to be used
Message to be communicated
Communication channel
• Message communication goals:
Attention,
interest, desire, and action
(AIDA model)
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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Promotional Planning in a
Web 2.0 World
 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)
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-27
Multichannel Promotional
Strategies
 Multichannel promotional strategies:
• Combine traditional mass media with
online buzz building activities
• Offer important benefits:
Boost
effectiveness of using either
online or offline strategies alone
Strengthen brand awareness
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-28
Real People, Real Choices:
Decision Made at Campfire
 Mike chose option 3
• Why do you think Mike and his partners
declined to become the agent of record
for the potential client?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-29
Keeping It Real: Fast-Forward to
Next Class Decision Time at Brownstein
Group Brand Communication
 Meet Marc Brownstein, President and
CEO of Brownstein Group Brand
Communication
 The agency is an innovator in digital
advertising and social media
 The decision to be made:
How should the agency respond to
competitive attacks against a clients
new product?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
12-30
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photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.
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