CHAPTER 12 Connecting with the Customer: Integrated Marketing Communications and Interactive Marketi

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CHAPTER 12Connecting with the Customer
Integrated Marketing Communications and
Interactive Marketing
M A R K E T I N G
Real People, Real Choices Fourth Edition
Michael R. Solomon Greg W. Marshall
Elnora W. Stuart
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Chapter Objectives_1

• Understand the role of marketing communication
• Understand the communication model
• List and describe the elements of the promotion
  mix
• Explain guerrilla marketing, viral marketing,
  buzz, and hype

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Chapter Objectives_2

• Explain integrated marketing communications and
  its characteristics
• Explain the stages in developing the IMC plan
• Explain the current trend toward interactive
  promotion strategies
• Explain why database marketing is increasingly
  popular and how databases are developed and
  managed

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How many can you answer?

• Name the tiger that says, Theyre 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
  Hardees the burgers are _____.

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Functions of Marketing Communications
Inform
Persuade
Build relationships
Remind
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Traditional Forms of Communications
Marketing Communications
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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

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Putting It All Together

• Integrated Marketing Communications (IMC) is a
  strategic business process used to plan, develop,
  execute, and evaluate coordinated, measurable,
  persuasive brand communication programs over time
  with consumers, customers, prospects, and other
  targeted, relevant external and internal
  audiences.

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Figure 12.2 Communications Model
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Message Source

• Marketers hire celebrities as spokespersons to
  add excitement to the source of the message

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An Opportunity to Communicate
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Figure 12.3 Control Continuum
Advertising
Sales Promotion
Public Relations
Personal Selling
Word of Mouth
High Low
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Advertising That Gets Attention
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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
• New appeals
• Guerrilla marketing
• Viral marketing
• Buzz and hype

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Skechers

• This ad creates a feeling of excitement

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KitchenAid

• Product giveaways can stimulate purchase

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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

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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

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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

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Guerrilla Marketing

• Discover gave away orange hats to those
  celebrating New Years Eve at Times Square
• The hats got national television coverage as
  Regis Philbin interviewed participants

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Table 12.2 Buzz versus Hype
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Yahoo Buzz
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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

Video Sonys Metreon facility
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Ad Space on Blimps

• Some promotional components are not integrated
  with the ad campaign

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Figure 12.4 Developing the Promotional Mix
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Step 1 Identify the Target
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Step 2 Establish Promotion Objectives

• Possible objectives
• create awareness
• inform the market
• create desire
• encourage trial
• build loyalty

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Figure 12.5 Up the Promotional Road
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Step 3 Determine/Allocate Promotion Budget

• Top-down budgeting techniques
• percentage-of-sales method
• competitive parity
• Bottom-up budgeting technique
• objective-task method

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Allocate Budget to Specific Promotion Mix

• Organizational factors
• Market potential
• Market size

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Pull Strategies

• Pull strategies seek to create consumer demand by
  convincing retailers to carry the product

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Step 4 Designing the Promotion Mix

• Which elements of promotion will be used?
• What message is to be communicated?
• Type of appeal?
• Structure of appeal?
• What communication channels should be employed?
• What role will advertising, sales promotion,
  public relations, and selling play?

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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

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Altoids
This campaign made it a hit with young people
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The AIDA Model
Action
Desire
Interest
Attention
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Communication Channels

• People wearing logo clothing is a communication
  channel for products

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Step 5 Evaluate 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

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Interactive Marketing
Customized Marketing Communications
Attention Economy
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Recommendation Agents

• Websites can use recommendation agents to suggest
  new purchases based on history

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Email Communications

• By using HTML email, firms can send customers
  emails that look like their Web sites

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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 isnt a
  transaction
• request for more information
• request NOT to receive more information

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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, and
  build relationships

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Database Marketing

• Successful strategies rely on a customer database

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Database Marketing

• Is interactive
• Builds relationships
• Locates new customers
• Stimulates cross-selling
• Is measurable
• Is trackable

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Issues for Discussion

• Some people say there is nothing new about IMC.
  What do you think?
• Guerrilla marketing, viral marketing, and hype
  are new methods companies use to get their
  messages to consumers. Are they effective? Are
  they fads?
• Why do you think marketers and ad agencies resist
  the changes necessary to use IMC?
• Do you feel that the use of databases is an
  invasion of individual privacy? How can we
  benefit from databases while protecting
  individual rights?