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

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CHAPTER 12Connecting with the CustomerIntegrate
d Marketing Communications and Interactive
Marketing
M A R K E T I N G
Real People, Real Choices Fourth Edition
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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
• 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

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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)

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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

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Mar Com Matrix
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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 unified, coordinated,
  measurable, persuasive brand communication
  programs over time with consumers, customers,
  prospects, and other targeted, relevant external
  and internal audiences.

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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

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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)

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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
• Credibility issues

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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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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

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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)

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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

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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.)

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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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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?

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The AIDA Model

• Attention
• Interest
• Desire
• Action

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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

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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

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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, build
  relationships

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Database Marketing

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