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Expert answer:Marketing Seminar: Week 7-Discussion Question-"I l - colle writers

Expert answer:Marketing Seminar: Week 7-Discussion Question-“I l

Solved by verified expert:Discussion Question (week 7): Please read the attached pdf files: “Ch12 Promotional Strategy and New Media”, “Ch13 Advertising, Sales Promotion, and Public Relations”, and “Ch14 Personal Selling and Direct Marketing”, which are Chapter12, Chapter13, and Chapter 14 from the text book and they are 81 pages long in total. After you read the attached files, please use the knowledge try to answer the Discussion Question pasted blow. Question:↓ Privacy is becoming a big issue (United States DoJ vs. Apple), especially as people use the Internet for many transactions, and all their activities being monitored and recorded and published in different social networks. Please share your thoughts about this ethical issue in online marketing. Which app on your phone is your favorite in terms of getting information or tips for shopping or other consumption activities? Explain what makes your favorite app so valuable to you… *Your answer should be no less than a one-page single-spaced document. **Please make sure the originality and quality of your work. ***There will be a subsequent assignment one or two days later related to responding to three other students’ answers. For the subsequent assignment, I will check your availability first and invite you to do it if you are available. ****I will also attach the question description for convenience. Thank you!
ch12_promotional_strategy_and_new_media.pdf

ch13_advertising__sales_promotion__and_public_relations.pdf

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ch14_personal_selling_and_direct_marketing.pdf

discussion_question_7.docx

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CHAPTER 12
Promotional
Strategy and
New Media
LEARNING OBJECTIVES
LO 12-1 Explain integrated marketing communications (IMC) concepts
and their role in marketing management.
LO 12-2 Identify the elements of the promotion mix and the pros and cons
of each element.
LO 12-3 Connect communication models to real-world challenges in
promotional strategy.
LO 12-4 Describe in detail the marketing manager’s role in promotional
strategy.
LO 12-5 Explain key concepts of interactive communications.
Integrated marketing communications (IMC) is the strategic approach companies
use to communicate to their target customers. As we have discussed throughout
the book, massive changes are taking place in marketing and marketing managers
must adapt to those changes; however, nowhere are those changes more evident
than in marketing communications. In this chapter we first examine the complex
concept of IMC. Then we discuss the new wave of interactive communication
tools that have changed—and will continue to change—the customer relationship
through the ways companies communicate with customers.
ESSENTIALS OF PROMOTION
AND INTEGRATED MARKETING
COMMUNICATIONS IMC
Marketing managers communicate with customers through promotion. Promotion
involves several forms of communication to inform, persuade, or remind. This
communication is accomplished through specific elements of the promotion
mix—advertising, sales promotion, public relations (PR), personal selling, direct
marketing, and interactive marketing. Exhibit 12.1 sketches out these elements,
also called the marketing communications mix. The first three—advertising, sales
promotion, and PR—tend to be relatively less personal in nature than the next
two—personal selling and direct marketing. The larger an audience a communication tool must reach, the less personal it will be. New media (interactive marketing), the last element in the mix, shares some elements of both.
EXHIBIT 12.1
LO 12-1
Explain integrated marketing communications (IMC)
concepts and their role in
marketing management.
Definitions of Elements of the Promotion Mix
Advertising
Paid form of relatively less personal marketing communications, often through a
mass medium to one or more target markets. Example media include television,
radio, magazines, newspapers, and outdoors.
Sales Promotion
Provides an inducement for an end-user consumer to buy your product or for a
salesperson or someone else in the channel to sell it. Designed to augment other
forms of promotion; rarely used alone. Example sales promotion tools for customers
are coupons, rebates, and sweepstakes. Inducements for channel members often
involve special monies or prizes for pushing a particular offering.
Public Relations (PR)
Systematic approach to influencing attitudes, opinions, and behaviors of customers
and others. Often executed through publicity, which is an unpaid and relatively
less personal form of marketing communications usually through news stories and
mentions at public events.
Personal Selling
One-to-one personal communication with a customer by a salesperson, either
in person or through another manner that provides two-way dialogue (phone,
messaging, e-mail).
Direct Marketing
An interactive marketing system that uses one or more advertising media to effect a
measurable response and/or transaction at any location. Direct marketing involves
personal communication with a customer by means other than a salesperson. Most
often this involves receiving materials in the mail, but increasingly it could include
targeted e-mails as well.
Interactive Marketing
An Internet-driven relationship between companies, their brands, and customers.
Interactive marketing enables customers to control information flow and
encourages customer-company interaction as well as a higher level of customer
service. The company’s website is the most common interactive marketing tool,
but the increased use of mobile devices (phones, tablet computers, laptops) has
created other interactive marketing opportunities (apps).
Promotional Strategy and New Media
CHAPTER 12
361
The promotion mix is vital to marketing planning. The development of promotion mix strategies, or simply promotional strategies, involves
decisions about which combination of elements in
the promotion mix is likely to best communicate the
offering to the marketplace. The mix is designed to
achieve an acceptable ROI for the marketer, given
the product and target markets involved. For ongoing planning purposes, much of marketing communications operates on a campaign-to-campaign
basis. A promotional campaign for a particular
product or product line tracks the effectiveness and
efficiency of promotional strategies as it allocates
expenditures to a specific creative execution over a
given time period.
Sometimes several media vehicles are used within
Nike1 utilizes a variety of outlets to reach customers and add value to
one campaign. For example, a co-promotion between
their experience.
Nike shoes and Apple’s iPhone uses both TV and the
web to drive sales. Called Nike Plus, the project uses the iPhone as a tool for monitoring a runner’s pace and style. Customers can go to a website that gives them
more information as well as a sense of community and the opportunity to buy more
products! The purpose of the TV commercial is to drive traffic to the website.1
When Cinco de Mayo was falling on a Sunday in 2013, Dos Equis recognized an
opportunity. In order to get a Dos Equis in consumers’ hands sooner, the company created the Dos de Mayo campaign. Dos Equis utilized its famed spokesman,
“The most interesting man in the world,” to create consumer awareness of this
event. It began with an online video asking fans to mobilize and create word-ofmouth buzz. Second, an online infographic was released that displayed interesting Cinco de Mayo and Dos Equis facts referring readers to go to the company’s
Dos de Mayo website as well as its own hashtag for social media. Finally, Dos
Equis threw a Dos de Mayo party in Los Angeles. The company, along with Maxim,
held a sweepstakes in which fans won a chance to attend the sponsored party.
In its campaign creation, not only has Dos Equis targeted its consumers using its
beloved spokesman, but it also found social media outlets to engage its fans and
to reach its ultimate goal of large-scale consumer buzz.2
The Rise of IMC
Electronic marketing channels, sophisticated research, customer database management, and integrated customer relationship management (CRM) systems allow
for accurate management of customer relationships and communication with customers, creating less and less dependency on traditional promotion through mass
media. At the same time, various traditional media outlets are now quite fragmented; we have literally thousands of cable and satellite dish television channels,
hundreds of specialty magazines, micro-specialty genres in radio programming,
and instant access to news, information, and entertainment online. How do we do
promotion within today’s environment? IMC is the strategic approach to communicating the brand and company message to targeted customers in ways that are
clear, concise, and consistent and yet are customizable as needed to maximize the
impact on a particular audience.3
Think of the difference in IMC versus more traditional promotion mix strategies as shown in Exhibit 12.2. A traditional promotion mix decision is effectively
a separate assessment of whether to invest in promoting the offering through one
or more of the elements of the promotion mix. In contrast, an integrated decision
is a holistic and interrelated decision process that is connected to the overall brand
message; it is fully customizable to different customer groups.
362
PART FIVE
Communicate the Value Offering through the Elements of Integrated Marketing Communications
EXHIBIT 12.2
Traditional Promotion Mix vs. IMC Decision Making
Advertising
Direct Marketing
and Interactive
Marketing
Sales
Promotion
Public
Relations
Personal
Selling
Promotion
Mix
Decision
Advertising
Integrated
Marketing
Communications
VS.
Personal
Selling
Direct Marketing
and Interactive
Marketing
Sales
Promotion
Public
Relations
IMC Decision Making
An IMC approach means integration of communication elements. Exhibit 12.2 highlights the holistic decision process. Each element impacts the others, and the
whole becomes more than the sum of the parts. A strong focus on a unified branding message and theme occurs throughout the process. In traditional methods the
elements are developed separately; and while they do combine later to provide a
promotional mix strategy, they are not necessarily viewed holistically as central
to the brand. Because an IMC approach is an inherently more strategic approach
to communicating with customers, managers who use it are much more likely to
consistently communicate the right brand messages to the right customers at the
right time through the right media.
Companies find that old strategies connecting customers to the company can
still be successful. In a significant update to its traditional home party, Tupperware has created the TupperClub, which brings friends together for a social evening. Gone are the burping containers and money saving recipes; in their place
are dinner and conversation. What is interesting is that the TupperClub concept is
moving “uptown,” becoming more accepted among the wealthy.4
LO 12-2
Identify the elements of the
promotion mix and the pros
and cons of each element.
Social commerce has become the next level of word-of-mouth marketing. Companies are rewarding brand advocates, who go online to recommend products
and services with cash, discounts, and other offers. The boutique jewelry brand
Stella & Dot is taking the direct selling model to the next level. Stella & Dot
“stylists” promote and sell the products in at-home trunk shows, but also give
guests access to their personalized social commerce platform, where products
can be purchased at any time. The stylists are able to promote their site to friends
via Facebook, Twitter, and Pinterest. In return, the stylist earns up to 30 percent
commission for sales generated. UK managing director Kathleen Mitchell says, “it’s
essential to have these third-party advocates for our selling model. We have independent stylists who run their own business, but they sell through e-commerce
platforms . . . If you don’t involve the consumer and create a truly social enterprise,
your business will be on one side and your customers on another because everyone is engaging in this way.”5
Promotional Strategy and New Media
CHAPTER 12
363
IMC and the Promotion Mix
What kinds of decisions are involved in developing and executing IMC strategy? Consider
Exhibit 12.3, which compares the impact of marketing management factors in an IMC approach
with those of a personal selling approach. As you
can see, a gamut of critical issues from buyer information needs to purchase size to the configuration
of the marketing mix elements all influence the
decision about where to invest promotional budget dollars. In fact, in many marketing-planning
situations, the promotional budget is the lion’s
share of the overall marketing budget—typically
surpassing packaging, distribution, and other
Entertainment companies like Cirque du Soleil recognize the importance
of strong IMC. Here Cirque du Soleil presents an interactive website for its
marketing elements by a wide margin.
show “Movi Kanti Revo.”
The allocation of the promotional marketing
budget across the various elements of the promotion mix is a complex decision. Each promotional form has its own individual
pros and cons, as Exhibit 12.4 shows. Again, within the IMC approach, it is the
integration of the elements—not just each individual element—and the resulting
synergies of the branding message that make the strongest sustainable impact on
customers.
Push and Pull Strategies
Two fundamental approaches to promotional strategy are push and pull strategies. These are depicted in Exhibit 12.5. The specific promotion mix elements
selected for investment will vary depending on the relative degree of push or
pull desired.
In a push strategy, the focus is on the channel of distribution, and in getting
the offering into the channel. Members of the channel are targeted for promotion and are depended on to then push the offering into the hands of end users.
A push strategy typically relies on a combination of personal selling and sales
promotion directed toward channel members.6 In a pull strategy, the focus shifts
EXHIBIT 12.3
Illustrative Factors Influencing IMC Strategy
Advertising/sales
promotion-driven
Large
Personal sellingdriven
Balanced
number and dispersion of buyers
Small
Buyers’ information needs
Low
High
Size and importance of purchase
Small
Large
Postpurchase contact required
Little
Much
Product complexity
Low
High
Distribution
Channel
Direct
Pricing
Preset
Negotiated
Source: Reprinted from David W. Cravens and Nigel F. Piercy, Strategic Marketing, 10th ed., 2013.
Copyright © 2013 The McGraw-Hill Companies, Inc.
364
PART FIVE
Communicate the Value Offering through the Elements of Integrated Marketing Communications
EXHIBIT 12.4
Promotion
Mix Element
Selected Pros and Cons of Individual Promotion Mix Elements
Pros
Cons
Advertising
• Many media choices
• Efficiently reaches large numbers of
customers
• Great creative flexibility

Sales Promotion
• Stimulates purchase directly through
incentive to buy
• Serves as an effective accompaniment
to other promotion forms
• Can lead customers to continually wait
for the next coupon, rebate, etc.
• Brand may be impacted by price-cutting
image
Public Relations
• Unpaid communication seen as more
credible than paid forms
• Association of offering with quality
media outlet enhances brand

Personal Selling
• Strong two-way communication of
• Very expensive cost per customer
ideas
contact
• Directly eases customer confusion and • Salesperson may go “off message” from
persuades purchase
brand to secure the sale
Direct Marketing
and Interactive
Marketing
• Message customization without high
• Spam and other unwanted
costs of personal selling
correspondence when targeting is
• Strong relationship building, especially
poorly executed
• Reliance on CRM and database
when customer can control the
marketing requires constant updating
interaction
Shotgun approach reaches many
outside the target
• Oversaturation of ads lessens impact
• High production costs
Low control of how the message turns
out
• Highly labor intensive cost of mounting
PR campaigns
to stimulating demand for an offering directly from the end user. Advertising,
consumer-directed sales promotion, PR, or direct and interactive marketing can
be combined in various ways to target end users, creating demand that results in
the channel making an offering available for purchase. In practice, push and pull
strategies are rarely used mutually exclusively.7 Rather, a promotional strategy is
developed that strikes the best balance of investment of promotional funds in both
push and pull strategies that make sense for the product and market involved.
EXHIBIT 12.5
Push and Pull Promotional Strategies
Provider
Push the
offering through
personal selling
and sales
promotion
Channel
Members
Channel
members do
their own
advertising and
selling to users
End
User
Provider
Demand by end
users trickles up
through the
channel, pulling
product from the
provider
Channel
Members
Provider creates
demand by end
users through
promoting
directly to them
End
User
Promotional Strategy and New Media
CHAPTER 12
365
Internal Marketing and IMC
A final critical aspect of IMC is internal marketing. Internal marketing is the application of marketing concepts and strategies inside an organization. A great deal
of research has shown that if members of an organization aren’t knowledgeable
about its offerings, don’t understand who the customers are, and can’t effectively
articulate the branding message, successful marketing management is very difficult. The firm’s employees are potentially its best and most trusted brand and
message ambassadors. Properly armed, they can articulate what the firm and its
offerings stand for in ways that nobody else can.8
Great brand marketers today pay a lot of attention to ensuring that everybody
in the firm has pride of ownership in its brand, products, and services. From
Southwest Airlines to Caterpillar to Apple, companies that do great marketing are
placing a high priority on enabling each and every employee to communicate the
marketing message. Most firms successful in internal marketing enlist the help
of the human resources department to communicate the brand messages to all
employees, beginning with employee orientation programs and continuing when
new products are introduced or new markets are entered.
Looking Ahead
Taken together the three chapters on integrated marketing communications
provide a managerially relevant overview of issues involved in promotion mix
decision making. In the remainder of this chapter, you will learn about two
models—the communication process model and a hierarchy of effects model—in
promotional strategy development, as well as the marketing manager’s role in
promotional strategy. Then we examine the vital importance of interactive communications. Chapter 13 looks at the promotional mix elements that deliver the
message to large groups of people and includes an introduction to advertising,
sales promotion, and PR, while Chapter 14 details those tools that take a more
personal approach and covers personal selling and direct marketing.
Perhaps more than any other area of marketing management, IMC promotion
as a topic is incredibly broad in its strategy yet specialized in its tactics. Each of
the elements of the promotion mix is often a separate course of study in college,
and sometimes even more than one course. Your task as a student of marketing
management is to not only gain an understanding of the process of promotional
strategy decision making, but to know the promotional tools and decision options
available for marketing planning in practice. An appropriate place to begin is by
introducing a general model of communication.
COMMUNICATION PROCESS MODEL
Communication is the process of exchanging information and conveying meaning from one party to another. Before we begin further discussion of the promotion mix elements, it is important to step back and consider the overall process
of communication. Exhibit 12.6 is a general model of the communication process
based on research in communication theory. Because communication is an integral
aspect of a marketer’s charge in any organization, it is important to understand
the fundamentals of the process. To achieve the desired effect, the marketing manager must consider all of the communication elements in developing the firm’s
promotional strategies.
The general communication process model identifies the elements in the process
of communicating any type of message—marketing or otherwise—from a sender
through a process of encoding the message, transmitting the message through
a channel, decoding the message, receipt of the message by an intended target
(hopefully), and the potential for a response by the target through a feedback loop.
Surrounding the entire communication process is noise, or other messages and
366
PART FIVE
Communicate the Value Offering through the Elements of Integrated Marketing Communications
EXHIBIT 12.6
General Communication Process Model
Noise
Sender
Encoding
Process
Message
Transmission
Decoding
Process
Receiver
Noise
Feedback
Loop
distractions that reduce the impact and effectiveness of the communication process on the intended target.
Let’s translate …
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