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UMGC has modified this work and it is available under the original license.
business to one agency, hire a separate firm to handle its public relations, and have still another
conduct sales promotions.
Most major agencies today practice the integrated marketing approach in some way, often by
starting new divisions to handle areas they didn’t tackle before, or buying (or allying with) smaller,
specialized shops that are already experts. The client is ultimately accountable for managing its
agencies in a way that supports its overall communications vision. For example, SS+K worked with
msnbc.com’s search agency 360i to support the integrated branding campaign. (You’ll learn more
about the way they worked together soon.) Marketers are the people most conscientious about
coordinating all of the messages that customers receive, but they rely on their agencies to be vigilant
about this as well. So, let’s summarize what an integrated perspective emphasizes:
Use, and especially coordination, of all promotional tools available to support a communications
strategy. These include sales promotions, public relations, personal selling, and direct marketing, as
well as advertisements.
Identification of the tools over and above traditional advertising at your disposal. These might
include placing branded billboards in videogames, dressing actors in costumes and having them take
to the streets as “brand ambassadors,” or perhaps sending IMs to kids on their cell phones.
Creation of a coordinated promotional plan. Such a plan starts by specifying communications
objectives and then details how to reach each of these.
Maximization of resources. Especially for small businesses, maximize available resources even when
they are scarce. Repurposing ads and utilizing connections are strategies that maximize resources.
SS+K Spotlight
All of us are better than each of us.
The point of strategic communication is to use the best tools available to effect the desired change in the
marketplace. SS+K, like some other agencies, no longer draws hard-and-fast distinctions among functions
such as advertising, promotions, direct marketing, and digital and public relations. SS+K’s goal is to
achieve synergy among all the efforts that emanate from the msnbc.com brand—to choose the best tools
for the job, not the ones that are most expected or familiar.
Compared to the “silos” that pervade some agencies, agency creative director Marty Cooke sees more
value in combining disciplines than isolating them:
“The basic core idea of SS+K…is to get the different disciplines of communications, writers, art directors,
designers, planners, strategy people, researchers, public relations guys, public affairs guys, digital people,
direct mail people, whoever else you need, around the table, the biggest brains you can get and let the
sparks fly. And that’s been kind of the magic of this place ever since we started it, and it’s worked out very
well.”—Marty Cooke, Agency Creative Director
9.1 Integrated Marketing Communications: United We Stand L E A R N I N G O B J E C T I V E S
After studying this section, students should be able to do the following:
1. Describe the integrated marketing communications perspective.
2. List the various forms of marketing programs that are united by integrated marketing communications.
The punk band Paramore is getting noticed; the group from a small town in Tennessee sold more
than 350,000 copies of its recent second album “Riot!” and it’s packed the house on the Vans
Warped Tour. Part of the band’s appeal is the cult following for lead singer Hayley Williams (and
legions of young girls imitating her shaggy blonde and orange hairstyle). But the group’s success is
also due to a new business model in the music industry, where musicians work with their label to
coordinate a marketing campaign that includes album sales, concert tickets, and merchandise. This
model is called multiple rights or“360” deals; the biggest to date is Madonna’s recent $120 million
package with the concert promoter Live Nation. Lordi, a Finnish metal band, has its own soft drink
and credit card, and the Pussycat Dolls opened a Dolls-themed nightclub in Las Vegas. [1] Welcome to
the new look of integrated and cross-channel marketing.
Integrated marketing communications unites all forms of marketing programs aimed at a target
audience, including magazine ads, TV commercials, coupons, an opportunity to win a sweepstakes, a
display at the store, and a visit from a company sales rep. There’s good reason to integrate: by
coordinating the messages across all the communication tools, a company will speak to its customers
and potential customers in a single, unified voice. This unified voice creates a more powerful and
memorable message than disjointed efforts produce.
Dig Deeper
When Unilever introduced its All Small & Mighty detergent, it used a traditional ad campaign (TV and
print) to make the point that the new detergent is concentrated, packed in a smaller bottle to create a
smaller ecofootprint while delivering the same results. In addition, Unilever handed out samples from a
bus; it made the bus noticeable by draping it in laundry. Anyone who spotted the bus could also send a
text message to enter a sweepstakes. Unilever also projected “videoscapes” onto buildings and did a
product placement on The Ellen DeGeneres Show, in which the studio audience did their laundry. [2]
Campaigns that utilize multiple media platforms make a lot of sense, especially in today’s media
environment. The simple truth is that consumers increasingly rely on a greater mix of media for news,
entertainment, and product information. According to a late 2007 survey, 55 percent of consumers who
watch TV watch some type of video on devices other than their TV sets, including their computers, mobile
phones, and digital media players (e.g., iPod). Not surprisingly, video watching on these alternative
devices is more popular among younger consumers (66 percent) than older ones (36 percent). [3]
Audio Spotlight
Joe Kessler http://app.wistia.com/embed/medias/b837825e42
Joe Kessler, SS+K partner and director of the agency’s L.A. office, speaks about the evolution of
integrated marketing—how it was practiced in the past (referred to as IMC) and the mistakes that
agencies continue to make now.
Creating integrated marketing communications requires deciding what kind of campaign the client
needs and identifying the best tools to deliver on those objectives. The integrated program will
include anything from advertising, consumer sales promotion, and trade promotions to public
relations, personal selling, direct marketing, and more. The messaging works across platforms, and
is also referred to as cross-platform marketing. Let’s look at each of these in turn. K E Y T A K E A W A Y
Traditional agencies tend to focus on what they do well, but customers touch clients’ products in many
ways. An integrated perspective recognizes the value and efficiency of carefully planning and coordinating
all of the communications tools—from glitzy TV commercials to employees’ uniforms—that impact the
impression the client makes in the marketplace.
E X E R C I S E S
a. Describe the integrated marketing communications perspective and comment on its usefulness to
advertising professionals.
b. Explain how the SS+K advertising agency seems to differ from other advertising agencies with respect to
communications and media focus.
[1] Jeff Leeds, “The New Deal: Band as Brand,” New York Times Online, November 11,
2007,http://www.nytimes.com/2007/11/11/arts/music/11leed.html (accessed November 11, 2007).
[2] Sarah Heim, “The Spin Cycle,” Adweek, July 23, 2007, 22.
[3] Jack Loechner, “Over Half of Connected TV Viewers Also Watch on Alternative
Devices,”http://www.mediapost.com/publications/index.cfm?fa=Articles.show Article&art_aid=73291 (accessed
January 2, 2008).
9.2 Elements of the Promotional Mix: The Advertiser’s Trusty Tools
L E A R N I N G O B J E C T I V E S
After studying this section, students should be able to do the following:
1. List and describe each of the elements of the promotional mix.
2. Characterize the various forms of sales promotion.
3. Describe the purpose of public relations.
4. Characterize the tools used to implement PR objectives.
5. Discuss how personal selling can be used effectively in the promotional mix.
6. Discuss the value of direct marketing in the promotional mix.
7. Explain the concept of database marketing and how it can benefit advertisers.
8. Explain the benefits of using customer relationship management (CRM) in the marketplace.
We’ve already learned about the Four Ps that go into the marketing mix; these are the tools
marketers use to create a value proposition for their idea, product, or service in the marketplace.
When we drill down to the crucial P of Promotion (the reason you’re reading this book), you won’t be
surprised to learn of an equivalent set of tools that advertisers use (either singly or, more often, in
concert) to communicate the important elements of that value proposition. We call these tools
the promotional mix.
Sales Promotions
A sales promotion is activity intended to produce some short-term change in behavior. This can range
from a cents-off coupon that motivates a customer to buy a box of cereal today to a sales contest that
inspires an employee to sign up as many customers as he can by the end of the month.
When the Target Is Consumers
Sales promotions targeted to consumers encourage purchase or build interest in a product during a
specified time period. The key element of sales promotions is its limited-time nature. Consumer sales
promotion tools include the following:
Price or Value Discount Promotion Tools
Price or value discount promotion tools include coupons for packaged-goods products like deodorant.
These offer cents off the price and have an expiration date of a few months out, encouraging immediate
purchase. Similarly, pizza delivery companies located near colleges typically have special deals at the start
of the semester to entice new customers.
In addition to coupons companies place in newspapers, send by mail (or by mobile phone), or offer on a
Web site, a marketer may offer a temporary price reduction at the store or offer a rebate. Unlike a coupon,
which gives the discount immediately upon purchase, a rebate refunds part of the purchase price to the
consumer after the consumer fills out and returns a form along with a sales receipt to the company.
Bonus packs deliver more product without more cost, such as 20 percent more nuts in a canned nut mix,
or 33 percent more liquid soap for the same price. Some companies offer bonus packs twice a year as a
way to reward customers with special offers. Other companies time their bonus packs to economic cycles.
“Whenever there is a downturn in the economy, we do very well with bonus packs and opening price
shampoos like Suave, VO5 and Jheri Rhedding,” said Larry Vick, divisional merchandise manager for
ShopKo. During difficult economic times, people are careful with their money and like to buy products
that offer more of the good for the same amount of money. [1] Hint: With all of the economic woes
surrounding us, the coupon business is a pretty nice place to be right now.
Visibility‐Increasing Promotion Tools
A premium is a free item you receive if you purchase another item. Sexy Hair Concepts, for example,
offered free styling gel with purchase of their shampoo or conditioner during the “Girls Night Out” days at
Beauty Brands retail stores. In some cases, the premium may directly encourage future product sales,
such as the Campbell’s Soup Cookbook containing new recipes that just happen to call for additional soup
flavors.
Contests and sweepstakes offer the opportunity to win an exciting prize like a vacation to Hawaii or a
$1,000 shopping spree. The difference between the two is that a contest is a test of skill, whereas a
sweepstakes is simply based on luck. For example, a contest may ask consumers to bake a cake using the
brand as an ingredient, whereas a sweepstakes simply requires filling out the entry form.
By law, sweepstakes cannot be tied to a purchase, which means that any consumer can be eligible to win
the prize if they fill out the entry form. Therefore, it’s best to use sweepstakes to build awareness of your
brand, not to drive immediate sales. The sweepstakes should be cleverly tied to your brand. For example,
if your product is canned pineapple, a sweepstakes with the grand prize of a trip to Hawaii makes sense. If
your product is motor oil, a sweepstakes in which the grand prize is a chance to be on a NASCAR pit crew
team is more relevant and effective than winning a lunch date with Hannah Montana (Danica Patrick is
another story). Sweepstakes also offer an opportunity to generate publicity (discussed below) during a
time when you are not introducing new products.
Volume‐Increasing Promotion Tools
Sampling is a popular (though expensive) promotional tool. Food and beverage companies often provide
free samples to consumers to give them a chance to try a new product for free. More than one college
student has feasted for free by timing strategic visits to stores like Sam’s Club that provide tastes of new
food items. Sometimes the packets will be a smaller trial size, such as two packets of Celestial Seasonings
tea rather than a box; other times the sample will be full size, like a cup of Silk yogurt. In the example we
mentioned previously, Unilever handed out free samples of its new detergent. Sampling intends to
increase future sales volume by acquiring new customers for the product.
Loyalty programs reward consumers for their frequent, continuing purchase of a product. Frequent flyer
programs such as the United Airlines Mileage Plus program offer free miles to their customers with each
flight they purchase. The more miles they fly per year, the bigger the bonus mileage. For example,
customers who fly fifty thousand miles or more per year get double bonus miles (a hundred thousand
miles or the equivalent of four free airline tickets in the United States) for the miles they’ve purchased.
These loyalty programs offer additional perks, such as shorter lines, to their loyal customers. Restaurants
or coffee shops often have punch cards that reward customers with a free coffee or sandwich after the
purchase of nine coffees or sandwiches.
When the Target Is Trade Partners (Employees, Distributors, and Retailers)
As consumers we probably don’t see many of the more aggressive promotions that companies sponsor.
Trade promotions are for a company’s employees or for channel partners such as retailers or wholesale
distributors who help get the product in the hands of the ultimate customer.
Trade promotions fall into two main categories: discount promotions and industry
visibility. Discount promotions offer the trade partner a reduced cost on the product or help to defray the
partner’s advertising expenses. The goal is to encourage the partner to stock the item and bring attention
to it. Promotions that increase industry visibility, on the other hand, focus on creating enthusiasm and
excitement among salespeople and customers.
Discount Promotions
Merchandising allowances are price breaks the manufacturer offers to its channel partners when it
reimburses the retailer for in-store support of a product, such as a special off-shelf or end-of-aisle display
of the product. For example, when Volvo wanted to double the sales of its certified used vehicles, it offered
dealers a $200-per-vehicle cooperative advertising allowance.
Case allowances are a discount the manufacturer offers to the channel partner based on the volume of
products it buys during the deal period. The greater number of products the partner buys, the greater the
discount.
Visibility‐Increasing Promotions
Industry trade shows are events at which manufacturers showcase their products, often in elaborate,
attention-getting booths or through giveaway samples and product information. Distributors and retailers
learn more about a company’s products and can ask questions or experience the product directly. The
manufacturer, in turn, collects business cards and sales leads on potential partners. For example, to draw
customers into its booth at fluid industry shows, ITT (a company that manufactures fluid technology
systems) built a water fountain branded with ITT and placed a sixty-by-eighteen-foot, three-dimensional
banner at the entrance to the convention hall. [2]
Dig Deeper
The trade show industry generates billions of dollars a year and affects the economies of many other
sectors such as travel and hospitality. Some major trade shows dwarf the size of small cities when they’re
running; shows like MAGIC (menswear apparel) and CES (computers and technology) easily attract over
a hundred thousand attendees. In a typical (2009) show, CES features twenty-seven hundred exhibitors
spanning thirty product categories. Approximately twenty thousand new products will launch at this
event. [3] Trade shows are a major expenditure for companies; the typical mid- to large-size firm spends
well over half a million dollars each year to display at shows. That’s a lot of free T-shirts, tote bags, and
sore feet by the end of the day.
Despite the appeal of these shows where freebies, parties, and networking (and the occasional drunk
conventioneer) abound, there are alternatives to these massive schmoozefests. As travel costs continue to
escalate along with concerns about the sizeable carbon footprint that a hundred thousand people create
when they converge on convention sites like Las Vegas, some industries are starting to experiment with
virtual trade shows that you attend from your desktop. Both IBM and Cisco are proponents of this
alternative.
Some of these virtual shows are accessible via Web sites that give you access to hundreds of exhibitors, job
listings, and so on. Others are even more adventurous; they are held in virtual worlds where your avatar
can wander among aisles of exhibitors, look at new products, dialogue in real time with company
representatives, even taste the free hors d’oeuvres (well, maybe not quite yet). Startup companies like
Unisfair are moving aggressively into this virtual space.
One of the biggest advantages of a virtual trade show is that the exhibitors can track the behavior of
potential customers who visit the show. Since attendees are anonymous, they won’t be intimidated by
pushy salespeople, so they’re free to stay or leave when they choose. [4]
Check out Unisfair (http://www.unisfair.com) and sample some virtual trade show environments. What’s
your verdict—is this a viable substitute for that Vegas junket you’re hoping to glom onto?
Incentive programs, also known as push money, give salespeople or channel partners free trips, cash
bonuses, or other gifts as a reward when they sell the manufacturer’s product. For example, Revlon may
give incentives to manicurists to recommend Revlon products to their clients.
Promotional products are the “swag” that companies give out, stuff like free pens, polo shirts, coffee mugs,
and key chains emblazoned with a company’s logo. The purpose is to keep the brand top of mind by
keeping it visible in the channel partner’s daily life. The most effective promotional products are ones that
are attractive and convey a positive message about your product or services. They often keep a brand or
company top of mind because the logo is hard to miss when you use or wear the premium. To get an idea
of the mind-boggling array of swag that’s available out there, visit The Gifts & Premiums Manufacturers
Directory at http://www.globalsources.com/suppliers/Gift-Premium/3000000151985.htm. And you
thought scoring a free pen was a major coup!
Public Relations
The purpose of public relations (PR) is to build good relationships with the advertiser’s publics, namely
consumers, stockholders, legislators, and employees. We define PR as “communication that attempts to
earn public understanding and acceptance of the firm by stressing the practices, policies, and procedures
of an individual or the organization. This can be accomplished by identifying donations to charitable
organizations, sponsorship of esteemed causes or events, contributions to individual, community, or
societal well-being, and so on.” [5]
Although it’s difficult to agree on a definition (depending who in the industry you ask), public relations
frequently focuses on identifying and making public noteworthy information about clients, or creating
newsworthy events for the purposes of heightening their clients’ public profiles. Traditionally,
communications professionals have perceived public relations differently from advertising, which is
persuasive, controlled content paid for by an identified sponsor. To the contrary, PR messages are not
purchased and placed, or ultimately controlled, by clients. If news or information pieces originating with
PR sources ultimately make it into the public discourse, it is presumably because the items warrant
attention on their own merits and the original source of the information—the public relations
professional—is obscured.
Today, distinctions between the disciplines are less clear-cut: frequently, advertising agencies are
instrumental in trying to cultivate social networks and free, word-of-mouth exposure for their
clients. Guerrilla marketing, like events staged by public relations professionals that “ambush” consumers
with messages in places they’re not expecting to encounter them, can be effective ways of attracting highly
valued news coverage for clients. Advertising agencies initiate and exploit consumer-generated content
that is used for commercial purposes, thereby relinquishing control of the creative product in the process,
much as PR professionals do when they issue press releases for editors to reformulate for their audiences.
Some agencies take advantage of the relative anonymity of the Internet to develop positive chat and
“consumer” reviews about their clients’ products—the source of content promoting products is not always
clearly linked to an agency source, as public relations sources are seldom identified as the source of stories
featuring their clients.
Press Release
One core tool of public relations is the press release, which can be anywhere from a paragraph to several
pages long. The press release is a report of an event that the marketer (or the marketer’s PR agency)
writes and distributes to the media in hopes that they will write about or feature the event. Related to the
press release is the video news release (VNR), which describes the event via video rather than words. The
topics covered by press releases are wide ranging, but the common thread is that they are topical and
newsworthy, such as announcing a new product, new research, or timely helpful information to
consumers, such as romantic getaway ideas a travel company publishes ahead of Valentine’s Day.
Press releases always conclude with contact information for the marketer and sometimes the PR
company. This key piece is so that reporters can call for more information or an interview. A popular
disseminator of press releases is PR Newswire; go to http://www.prnewswire.com to see the latest news
releases.
Media Event
A company will often preannounce a forthcoming media event to garner attention for a product
introduction, new channel partner, or major change in strategy. The goal is to give the media time to
create background stories and bring reporters and news crews to the event to ensure the broadest possible
audience. For example, when Apple brought the iPhone to the United Kingdom, it told the press that
Steve Jobs, the company’s CEO, would be making an announcement at Apple’s London store in the heart
of the city’s main shopping district.
Publicity
Public relations often aims to generate publicity, which is unpaid communication about an organization
that appears in the media. The success of a PR campaign is measured in terms of impressions—the
number of times a company is mentioned in the media. For example, Ben & Jerry’s ice cream created the
world’s largest baked Alaska for Earth Day 2005. It placed a 1,140-pound, four-foot-tall dessert made
from Ben & Jerry’s Fossil Fuel flavor in front of the Capitol in Washington, D.C., to symbolize the
environmental damage that drilling in the wildlife preserve would cause. The program cost only $40,000
but generated more than thirty million media impressions. The publicity program reinforced Ben &
Jerry’s brand as a socially conscious, green company while bringing attention to its ice cream products. [6]
Dig Deeper
A publicity campaign for a late-night cartoon show backfired when it aroused fears of a terrorist attack
and temporarily shut down the city of Boston in 2007. To promote the Cartoon Network TV show Aqua
Teen Hunger Force (a surreal series about a talking milkshake, a box of fries, and a meatball), an agency
placed prominent blinking electronic signs with hanging wires and batteries on bridges and in other high-
profile spots in several U.S. cities. Most depicted a boxy cartoon character giving passersby the finger.
Bomb squads and other police personnel required to investigate the mysterious boxes cost the city of
Boston more than $500,000—and a lot of frayed nerves. [7] Can you identify other publicity stunts that
ended badly? Or (as the saying goes) is it true that “there’s no such thing as bad publicity” if the stunt calls
attention to the client?
Crisis Management
As the Cartoon Network found out, publicity can cut both ways. Sometimes negative events happen to the
company and the media reports these in great and glaring detail. Product defects, a serious accident at a
company facility, management malfeasance, or major layoffs can tarnish the reputation of the firm. A
company must be prepared to deal with such negative publicity.
Once the negative story is out there, there’s nothing you can do except minimize the damage. That calls
for crisis management. During such a time it’s important to present your side of the story as clearly as
possible and to demonstrate integrity as you correct any mistakes. The best way to do this is to have
a single spokesperson talk with the media. This may mean “locking the business down” by asking
everyone on the staff not to comment on the news story but to refer the question to the spokesperson so
that the message is consistent and accurate. The most trustworthy spokesperson for the company is
usually its CEO, because such high-level attention will show that the CEO stands behind the company.
When U.S. toy brand Mattel was forced to recall eighteen million toys after Chinese-made products were
shown to be potentially unsafe, Mattel’s CEO, Bob Eckert, explained what went wrong, apologized,
accepted responsibility, and took action. During the time of crisis, it’s crucial for the CEO or spokesperson
to be upfront, direct, and very proactive. In addition to holding a press conference, Eckert filmed a
separate online video apology. In his statements, he sympathized with parents, saying, “I’m a parent of
four kids as well.” Mattel also took out full-page ads in major newspapers: the New York Times, the Wall
Street Journal, and USA Today. Finally, Mattel’s Web site posted comprehensive recall details and
explained how to receive a free replacement toy of equal value. Posting a response on their Web site is a
faster way for companies to get the message out than might be possible through traditional media. [8]
Personal Selling
Personal selling involves direct interaction between a company representative and the customer. The
main advantage of personal selling is the ability to tailor the message to the customer in real time,
responding not only to their questions but also to their body language and tone. This type of direct contact
lets the salesperson address customer concerns, sometimes even when the customer hasn’t voiced them
aloud. Salespeople in fashion retail stores are ready (or at least they should be) with advice on how to
accessorize an outfit or to help in deciding among outfits. Personal selling is even more important in
products that are complex and require significant customer education or custom configuration. A sales
force is a key part of medical products sales, information technology and solutions sales, or other complex
products and services selling.
Team Selling
Personal selling can also be done through an outside network of sales reps. For example, Barefoot Parties
sells loungewear, accessories, and gifts for women through at-home parties held by its sales agents.
Agents get bonuses based on the amount of income the party generates in addition to a minimum base
commission of 20 percent from the party sales. [9]
Some products and services are so complex and intertwined that a team sales approach is needed, in
which the selling is handled by a team of salespeople, technical specialists, field engineers, and supply
chain specialists who coordinate the timetable from order to production to delivery. Telecommunications
equipment provider Lucent uses this kind of team approach, pairing supply chain executives with sales
reps on the sales team. Technical specialists work with the customer to design a cell phone network, for
example. In one case, Lucent created a CDMA (Code Division Multiple Access) cell phone network for a
customer in India. The network included over fifty switching centers, twenty-five hundred base stations,
and three hundred thousand circuit pack and cables. Such complexity demands a team sales approach.
Sales Force Automation (SFA)
Marketing information systems and CRM systems often include tools to help the sales
force. Sales force automation (SFA) includes a myriad of functions such as contact management, sales
quote automation, sales order information, and reporting functions. The tools use CRM and other data to
maximize the productivity and effectiveness of the sales force. For example, salespeople who use a service
like Salesforce (http://www.salesforce.com) can keep track of their sales leads and construct their call
schedules to be most efficient, while their managers can track their performance and identify bad and
good performers easily.
Downsides of Personal Selling
The disadvantages of personal selling are its high labor costs and the corollary: it’s difficult to reach large
numbers of people when you try to speak them to one-to-one. Also, the information communicated may
vary from the intended message. Sometimes salespeople, in an effort to “get the sale” or “go the extra
mile” for their potential customer, may bend the rules in a way that’s detrimental for the company, such
as by promising a delivery date that forces the company to pay extra in expediting costs or overtime in an
effort to meet the promised date. Worse, a company might suffer bad publicity as a result of a
salesperson’s unethical actions.
Direct Marketing
Direct marketing refers to sales communications delivered directly to individual customers through e-
mail, direct mail, and telemarketing. The goal is to use information about individuals in order to present
them with messages relevant to their needs and interests. The growth of consumer databases and
improvement of technology and methods (such as advanced modeling and segmentation strategies) has
led to increased use—and increased success—of direct marketing. For example, in the United States in
2006 direct marketing generated incremental sales of $1.93 trillion, which was 10 percent of the GDP.
Each dollar spent on direct marketing yields, on average, an ROI (return on investment) of $11.65,
compared to an ROI of $5.29 for traditional advertising.[10]
How does direct marketing fit into an integrated campaign? One application is to send a direct mail piece
(usually a letter or package) to a targeted list of customers inviting them to visit a Web site where they can
receive further information. For example, Pitney Bowes Mapinfo (a company that provides software and
services to help business executives make location-based decisions, such as site selection) mailed
executives one-half of a CD to drive the message that without the dimension of location, their analysis is
not complete. The mail piece gave executives a Web address from which they could download a free white
paper to learn more about location intelligence. Mapinfo combined the direct mail piece with banner ads
on business-publication Web sites (such as BusinessWeek [http://www.businessweek.com], Forbes
[http://www.forbes.com], CNNMoney [http://money.cnn.com], and MSNMoney
[http://moneycentral.msn.com]) to drive executives to the white paper. The result? Mapinfo received
more than three thousand white paper downloads, of which more than 70 percent were senior
management executives; more than thirteen hundred opt-ins to receive e-mail communications from
MapInfo; and more than two hundred registrations for Mapinfo’s webinar. [11]
In another example, Babcock & Jenkins, a direct-marketing agency, developed an integrated campaign for
Sun Microsystems. The campaign included direct mail, e-mail, telemarketing, and online marketing to
drive potential new Sun customers to a Web site where they could register to win prizes in a sweepstakes.
The campaign was a B2B (business-to-business) campaign in which Babcock & Jenkins helped Sun
deliver leads to its channel partners (namely the resellers who sell Sun systems). The campaign generated
120 percent more registrations than expected. The success was due in part to demographic profiling that
identified potential customers and why they buy, and then used an integrated campaign to reinforce the
messages and reach customers in different ways. “We use an approach we call connected strategy,” said
Denise Barnes, president of Babcock & Jenkins, “integrating direct mail, e-mail, telemarketing, banners,
newsletters, print, microsites, events, podcasts, webcasts and social media into one-to-one
communications for our clients.”[12]
Dig Deeper
One of the issues direct marketing raises is that of violating people’s privacy and of controlling a flood of
offers that can be sent en masse to consumers, defeating the purpose of targeted, individual
communications. The Direct Marketing Association (DMA) helps stem the tide of unwanted phone calls
and e-mail (spam) through initiatives like e-mail authentication and by giving consumers the option to
remove themselves from mailing lists (https://www.dmaconsumers.org/cgi/offmailing) or from
prescreened credit card offers (by calling 1-888-5optOut). What rights to privacy (and to not being
disturbed at dinnertime) do consumers have? What happens to direct marketers who violate those rights?
Database Marketing
Many sophisticated advertisers understand that it makes sense to keep track of their customers—and
perhaps even those who aren’t their customers (at least yet!). Database marketing is a system of
marketing that collects information from consumers and then uses it to build a long-term relationship
with a customer. Today this strategy underpins many promotional tools, especially those that have an
element of direct communications with the customer, such as personal sales and direct marketing.
Databases contain customer names, addresses, purchase profiles, psychographic and demographic details,
purchase patterns, media preferences, credit ratings, and other information that helps a company target
and create the right message and offer for each customer. This data can come from sources such as
internal sales data, online opt-in registrations, loyalty program data, contest forms, third-party database
sellers, and public government records (e.g., home sales).
Customer Relationship Management (CRM)
For this reason, database marketing has evolved to be calledcustomer relationship management (CRM).
CRM uses the specific information about individual customers to create more effective marketing
communications specific to them. For example, if you know that an individual customer has a ten-year-
old child, you can target her with offers relevant to children in that age group, Or, if you know that the
customer has bought Lunchables, you can send her a coupon to stimulate a repeat purchase or to cross-
sell a related product.
Loyalty Programs
Loyalty programs that reward customers for continuing to purchase from the company make extensive
use of CRM. For example, the retailer Brookstone uses its loyalty program to recognize customers who
have purchased from its store, catalog, or Web site before (using an e-mail address, phone number, or
membership number to recognize the customer). Brookstone records every sales transaction across every
channel (whether at the store, online, or through a catalog) and rewards the customer with credits based
on how much they have purchased from the company. Customers can apply these credits toward future
purchases; this cements their relationship with the company. [13]
Behavioral Targeting
For better or worse, technological advances make it easier and easier for marketers to track us and our
preferences very precisely. As we saw when we discussed target marketing, one hot trend is behavioral
targeting, which refers to presenting people with advertisements based on their Internet use. For
example, Microsoft combines personal data from the 263 million users of its free Hotmail e-mail service—
the biggest in the world—with information it gains from monitoring their searches. When you sign up for
Hotmail, the service asks you for personal information including your age, occupation, and address
(though you’re not required to answer). If you use Microsoft’s search engine it calls Live Search, the
company keeps a record of the words you search for and the results you clicked on. Microsoft’s behavioral
targeting system will allow its advertising clients to send different ads to each person surfing the Web. For
instance, if a twenty-five-year-old financial analyst living in a big city is comparing prices of cars online,
BMW could send her an ad for a Mini Cooper. But it could send a forty-five-year-old suburban
businessman with children who is doing the same search an ad for the X5 SUV. [14]
Going a step further, CBS recently announced that it is testing a system that customizes the ads you’ll see
on your cell phone based on your location. Its CBS Mobile unit is teaming up with the social networking
service Loopt, which allows its subscribers to track participating friends and family on their mobile
phones. [15] In the (near?) future, you might well find ads popping up on your cell phone from stores you
are literally walking past on the street. Yes, they are watching you…
Dig Deeper
A 2006 survey found that 57 percent of the consumers it polled say they are willing to provide
demographic information in exchange for a personalized online experience. And three-quarters of those
involved in an online social network felt that this process would improve their experience because it
would serve to introduce them to others who share their tastes and interests. However, a majority still
express concern about the security of their personal data online. [16]
How big a problem is this—and are consumers getting more or less concerned about potential invasions of
privacy as behavioral targeting strategies proliferate? How do you feel about sharing your online behavior
with advertisers?
K E Y T A K E A W A Y
Advertisers have many tools to include in the promotional mix they design for a client; these include sales
promotions, public relations, personal selling, and direct marketing. No one tool is perfect; each has
strengths and weaknesses, and often the tools are most effective when they’re combined. For example, an
ad campaign for a new movie can be paired with a sales promotion in partnership with a retailer—like
when Burger King featured its “Which Spidey Suits You?” scratch‐and‐win game pieces on specially marked
menu items.
E X E R C I S E S
a. List and describe each of the elements of the promotional mix.
b. Identify which of the sales promotion tools can be personalized and customized, which reward customers
for frequent patronage, and which reward distributors for sales performance.
c. Define public relations and demonstrate how marketers can use PR to meet communication objectives.
d. Explain the importance of “impressions” in gaining publicity.
e. Explain the role played by personal selling in the promotional mix.
f. Describe the role of direct marketing in increasing an organization’s promotion return on investment
(ROI).
g. Discuss how database marketing can be used to further promotional mix objectives.
[1] Liz Parks, “Value‐Priced Bonus Packs Revive Limp Hair Care Segment.” DSN Retailing Today, April 22, 2002, 19.
[2] Kate Maddox, “The Future Looks Bright, with Marketing Expanding and Online Exploding,” B to B, December 11,
2006, 28.
[3] International CES, http://www.cesweb.org/exhibitorDirectory/default.asp (accessed July 12, 2008).
[4] Janet Meiners, “Trade Shows Go Virtual,” Marketing Pilgrim, November 16,
2007,http://www.marketingpilgrim.com/2007/11/trade‐shows‐go‐virtual.html (accessed July 12,
2008); http://www.unisfair.com (accessed July 12, 2008).
[5] Quoted in Stephen J. Grove, Les Carlson, and Michael J. Dorsch, “Comparing the Application of Integrated
Marketing Communication (IMC) in Magazine Ads Across Product Type and Time,” Journal of Advertising 36, no. 1
(Spring 2007): 37.
[6] “Ben & Jerry’s: A Green Pioneer,” Advertising Age, June 11, 2007, S‐8.
[7] Suzanne Smalley and Raja Mishra, “Governor, Mayor Livid as Boston Ad Stunt Spurs Chaos,” Boston Globe,
January 31,
2007,http://www.boston.com/news/local/massachusetts/articles/2007/01/31/governor_mayor_livid_as_boston_
ad_stunt_spurs_chaos/ (accessed February 13, 2009).
[8] Donna Goodison, “Weathering Toy Recall Crisis,” Boston Herald, August 16, 2007, 32.
[9] Tim Parry, “Get in on the Party,” Merchant, January 1, 2007, n.p.
[10] Direct Marketing Association, The Power of Direct Marketing: ROI, Sales, Expenditures and Employment in the
US, 2006–2007 Edition (New York: DMA, 2006).
[11] “Pitney Bowes Intelligently Plots Strategy for MapInfo,” B to B, August 13, 2007, 28.
[12] Kate Maddox, “Babcock & Jenkins Focuses on Database‐Driven Marketing; Runner‐up Direct Agency of the
Year,” B to B, October 9, 2006, 30.
[13] Connie Robbins Gentry, “Personal Recognition: Multichannel Retailers Market One‐On‐One to Loyal
Shoppers,” Chain Store Age, January 2007, 78.
[14] Aaron O. Patrick, “Microsoft Ad Push Is All about You: ‘Behavioral Targeting’ Aims to Use Customer
Preferences to Hone Marketing Pitches,” Wall Street Journal, December 26, 2006, B3; Brian Steinberg, “Next Up on
Fox: Ads That Can Change Pitch,” Wall Street Journal, April 21, 2005, B1; Bob Tedeschi, “Every Click You Make,
They’ll Be Watching You,”New York Times Online, April 3,
2006,http://www.nytimes.com/2006/04/03/business/03ecom.html (February 10, 2009); David Kesmodel,
“Marketers Push Online Ads Based on Your Surfing Habits,” Wall Street Journal on the Web, April 5,
2005,http://online.wsj.com/article/0,,SB111202090636790858,00.html? mod=mm_hs_advertising (February 10,
2009).
[15] Laura M. Holson, “In CBS Test, Mobile Ads Find Users,” New York Times Online, February 6,
2008, http://www.nytimes.com/2008/02/06/technology/06mobile.html(accessed February 10, 2009).
[16] “Consumers Willing to Trade Off Privacy for Electronic Personalization,” Marketing
Daily, http://www.mediapost.com (accessed January 23, 2007).
9.3 Create the Promotional Plan L E A R N I N G O B J E C T I V E S
After studying this section, students should be able to do the following:
1. Create a promotional plan by following the suggested execution steps.
2. Describe how small businesses can use integrated or cross‐channel promotional planning to meet their
objectives.
Like a traditional advertising strategy, before you craft an integrated strategy, it’s important to be
clear about what you hope to achieve, how much you can afford to spend to achieve it, and what the
promotion will say.
What, Who, Where—and How Much?
We have to be able to answer these four basic questions before we move forward:
Objectives for the promotion: What measurable change do you wish to achieve?
Budget: How much do you intend to spend?
Messaging strategy: What do you plan to say? Who is the target of the message?
Media strategy: Which channels do you plan to use?
An integrated promotional plan needs to address these four questions. To see how this works in the real
world, let’s look at how Kellogg’s developed such a plan for its Special K cereal brand. First, the company
set sales objectives, which included targets for existing products as well as for new launches. Then,
Kellogg’s promotion team worked with its ad agency to define the messaging strategy. The focus was on
losing weight and maintaining that weight loss by using Special K products. Then, the question was how
to implement the strategy and how to allocate the client’s promotional budget to each part of the plan. The
team divided the campaign into a series of initiatives timed to different seasons, and it earmarked a
specific amount to spend on each initiative:
The campaign started with a “Special K Challenge” to lose six pounds in two weeks. This part of the
campaign drew in new customers to the brand. The campaign launched to coincide with New Year’s
resolutions to lose weight.
In spring, the agency launched a new campaign it called “Are You Beach Ready?” This campaign
featured a beach towel and bag as a premium.
The third campaign in the series began in the fall, this time with a “Drop a Jean Size!” theme, giving
customers a free pair of jeans in an instant-win sweepstakes when their weight loss goal was achieved.
In winter, Special K urged consumers to lose the pounds with a free-in-mail personal training DVD.
Throughout the year, coupons were put onto Special K packages. The coupons boosted multiple
purchases. Print ads in publications targeting women (fashion and parenting magazines) and TV
commercials during programs with high female viewership supported ongoing brand awareness.
The integrated campaign worked well: Special K saw growth across all of its product lines, with double-
digit growth for the brand for the year. Special K exceeded its targets for existing products as well as new
products. “Integration is the key to consumer engagement,” said Marta Cyhan, Kellogg’s VP-worldwide
promotions. “The goal of promotion is to build the brand while motivating consumer interaction.” [1]
Raisin’ Awareness: How the CRMB Executed Its Plan
Now that we’ve looked at all the elements in turn, let’s put it all together to see the execution of an
integrated marketing campaign. We’ll use the example of the California Raisin Marketing Board (CRMB),
whose goal is to promote California raisins.
Set the Objectives
The first step was to set the objectives for the campaign. The target audience was women with children at
home. The CRMB began with research, which showed that moms—and adults in general—were aware of
health-related issues but felt they were too busy to always eat healthy foods. The CRMB could capitalize
on this opportunity to promote raisins as a healthy, easy snack for moms and kids alike. With this
objective in mind, the CRMB set three specific goals for the campaign:
1. To create a personality for raisins that would appeal to the target audience
2. To generate excitement among trade partners (food service operators, manufacturers, supermarkets)
to offer raisins and raisin-based products
3. To raise awareness and demand for raisins among the target audience
The CRMB hired ad agency MeringCarson to design an ad campaign. MeringCarson developed different
concepts and then tested these concepts through focus group research. The research revealed that the
most effective campaign was one that spoke to the target audience as women, not just mothers. “One
campaign in particular featuring serene images of women consuming raisins as a part of their daily lives
struck a responsive chord,” said Greg Carson, partner and Creative Director of MeringCarson.
“Consumers loved the use of peaceful colors and imagery and the messages of health and empowerment
embodied in the ads.”
Define and Execute
With the concepts and copy strategy complete, CRMB next devised the integrated brand promotion plan,
which included print, online, PR, and sweepstakes.
The print campaign included ads in women’s magazines as well as trade publications aimed at
foodservice, industrial, and retail sectors.
The online campaign included the launch ofhttp://www.LoveYourRaisins.com using the same
artwork as the print ads and providing additional information (like recipes and nutrition facts) as well
as a free newsletter that provides timely seasonal recipes using raisins.
Sweepstakes included a back-to-school sweepstakes that consumers can enter
at http://www.LoveYourRaisins.com to win a three-night, two-day trip to a major theme park in
Florida or California for a family of four. Other sweepstakes included a weekend spa getaway at
Miramonte Resort and Spa, along with a free on-the-go bag featuring the advertising artwork and
filled with a plush California raisins character, California raisin samples, a compact mirror from the
spa, relaxation lotion, and a refrigerator magnet to keep raisins top of mind.
The public relations campaign featured Valerie Waters, a celebrity fitness trainer, who acted as a
spokesperson for California raisins during her satellite and radio media tour. Each sweepstakes was
announced by a press release. Press releases aimed at trade publications discussed the health benefits
of raisins and announced industry news such as CRMB’s sponsorship of new raisin pie categories in
the American Pie Council’s Crisco National Pie Championships. [2]
While registering for the sweepstakes, moms could get a premium such as a free California Raisin lunch
bag filled with a California Raisin plush toy; California Raisin snack packs, water bottle, and magnet; and
tips from Valerie Waters.
In Chapter 13 you will see msnbc.com’s fully integrated and launched campaign.
Integrated Campaigns for Small Businesses
How does a small business, say one that has less than six figures to spend on an ad campaign, advertise
successfully against competitors with $20 million to spend annually? The point is not how much you
spend, but how well you spend it on a set of well-coordinated marketing communications.
Pool Resources with Associations and Loyal Customers
One way to extend the reach of a small budget is to pool resources through a trade association. For
example, small whiskey distilleries pool their ad money through the Distilled Spirits Council of the United
States. Similarly, the California Raisin Board is an association of raisin growers throughout California;
we’ve already seen how effective this group is. Using word of mouth is another key strategy: loyal
customers become de facto brand ambassadors who spread the word to others. Third, develop Web
initiatives that allow people to interact with the brand. Small companies rely on creative ideas to generate
curiosity and conversation that will draw free publicity.
Go Small and Local
Another low-budget option is to sponsor local or niche events. Red Bull energy drink drove its growth by
sponsoring niche extreme sports that traditional big-budget corporate sponsors ignored. Finally,
companies that make products can consider conducting local tours of their factories or facilities as a way
to introduce new customers to their products, become a tourist destination, and build publicity around
that. K E Y T A K E A W A Y
A strategy requires several pieces: First, set objectives for the promotion—and be sure to specify
measurable changes you hope to achieve so you can determine how successful your strategy is. Second,
set a budget (be realistic). Third, devise a messaging strategy where you decide what you want to say and
to whom. Finally, identify your promotional mix, being sure it fits the target customer you’ve decided you
want to reach (don’t just pick the media you’re used to, or the ones that are “sexy,” if these aren’t the
best fit to your customer). Even small businesses can implement an IMC strategy, but they have to be
more creative when they harness local communications platforms to tell their story.
E X E R C I S E S
a. List and describe the integrated marketing communications planning steps used in the California
Raisins promotional plan.
b. Explain how small businesses can use integrated marketing communications planning to enhance their
promotional planning ability.
[1] Kathleen M. Joyce, “Motivating Out of the Box.” Promo, November 1, 2006, n.p.
[2] Kim Bedwell, “Consumer Marketing: California Raisins Launch New Campaign,” Agri Marketing 44, no. 9
(November–December 2006): 37.
9.4 Exercises T I E I T A L L T O G E T H E R
Now that you have read this chapter, you should be able to determine how to choose the best media
weapons to solve communication and advertising problems:
You can identify the integrated marketing communications (IMC) perspective and comment on its
usefulness.
You can list some ways advertising agencies use the integrated marketing communications approach.
You can describe SS+K partner Joe Kessler’s thoughts on the evolution of integrated marketing
communications and media choices in the marketplace.
You can identify and describe the tools of the promotional mix.
You can characterize the various forms of sales promotion and how they can be best used to solve
problems.
You can describe the purpose of public relations and characterize the tools used to implement PR
objectives.
You can discuss how personal selling can be used effectively in the promotional mix.
You can compare and contrast direct marketing and database marketing as means to enhance relations
between the company and its customers.
You can create an IMC promotional plan by following the execution steps described in the chapter.
U S E W H A T Y O U ’ V E L E A R N E D
1. You may not be a NASCAR fan, but this fast‐paced sport is hoping to catch your attention in the days
ahead. NASCAR is an aggressive marketing and promotion organization (see http://www.nascar.com) with
an ever‐expanding fan base. This expanding fan base is changing the face of NASCAR and its races. Some
say that a NASCAR event today is like going to a “celebrity night out.” Most NASCAR purists, on the other
hand, believe that NASCAR is all about cars, cars, and more cars. After seven years of research and design
experimentation, NASCAR has unveiled its “Car of Tomorrow” and believes that this speedy but safer car
will help advance the popularity of NASCAR even more in the next decade. Considering how NASCAR must
appeal to loyal fans and find new ones, design an integrated marketing communication (IMC) promotional
plan that would help to spread NASCAR’s message about its new car to its markets. Be sure to specify the
various elements of the promotional mix that you would recommend to NASCAR. Do research on NASCAR
and its rise in the sports world before designing your IMC plan.
2. Integrated marketing communications (IMC) help advertisers attack communication problems
from a variety of points of view. This multimedia approach has been applied to communication by
many advertising agencies over the past few years. One challenge for IMC planners, however, is
the U.S. Hispanic market. Broadly defined, the Hispanic market includes those of Spanish, South
American, Mexican, and Caribbean descent. As the number one minority in the United States,
Hispanics comprise a market that is diverse with respect to preferences and lifestyles. Many in this
market still speak Spanish (or native country dialect) as their primary language.
Investigate the Hispanic market by going tohttp://www.demographics.com or a favorite search
engine. After you have reviewed marketing and advertising efforts toward this target market,
propose an IMC promotional mix that you believe would be ideal for carrying a shopping mall’s
message to Hispanics. The basic message would be “Come to the Mall—We’re Here to Serve Your
Needs.” The shopping mall believes that as they attract Hispanics, sales and profits will increase.
Discuss your promotional mix plan with peers.
D I G I T A L N A T I V E S
When you think of Hershey’s, you think of chocolate, right? You might be surprised to know that industry
professionals see Hershey’s as a marketing and advertising machine. This is somewhat surprising, given
that Hershey’s shunned advertising of any kind for years. Today, however, Hershey’s has embraced a
multifaceted approach to its communications, marketing, and advertising. One of these facets is its
interactive Web site (see http://www.hersheys.com). After reviewing the basic structure of the Hershey’s
Web site, click on the “promotions” button on the opening page. Once you have done this, you will see all
the current Hershey’s promotions. Review each of these promotions. Take each highlighted promotion
and describe what you believe to be: (a) the primary market for the promotion, (b) the promotional mix
tools that would be most useful to the promotion, and (c) an assessment of Hershey’s chances of success
for the promotion. Discuss your findings with peers.
A D ‐ V I C E
1. Assume that you are a proponent of using integrated marketing communications to solve
communications problems. Prepare a short two‐page paper that could be used to support your position.
Next, looking at an integrated media approach from the perspective of someone who advocates a
traditional mass media approach for solving communication problems, attack the ideas you just
formulated. Summarize the arguments against integrated campaigns. Discuss your findings with peers.
2. Assume that you have just been given a $10 million budget to spend on sales promotional tools. The
purpose of your budget is to convince consumers to begin to use reusable grocery bags when shopping
for food. This environmental initiative is favored by most grocery chains. The bags (if purchased) would be
sold for one dollar at grocery stores. Outline your plan for changing consumer preferences in this area. Be
sure to consider all of the sales promotional alternatives as you formulate your plan. Designate how much
money should be spent for your designated tools. Share your ideas with peers.
3. Guerrilla marketing is becoming more popular as costs of promotions continue to increase. Public
relations (PR) specialists have learned to use this unique form of marketing because of its low cost and
highly creative nature. Your task is to design a guerrilla marketing effort that will introduce a new flavored
bottled water to the Asian market in San Francisco. Initial distributors would be convenience stores,
street vendors, and neighborhood vending machines. Be specific in what you would plan to do and how
much you think it might cost. Share your plan with peers.
4. Many universities and colleges have turned to database marketing to help target student populations.
Describe how your university could use database marketing to reach potential freshmen students. Be sure
to indicate how these students would be found and eventually reached by the university’s or college’s
efforts.
E T H I C A L D I L E M M A
The Direct Marketing Association (DMA) is an advocacy organization whose intent is to encourage the
ethical use of direct marketing to solve advertising and communication problems. The association’s task is
not easy, given the ethical tension between members of the industry and consumer advocacy groups.
Many of the complaints about invasion of privacy, high pressure tactics, and false information are directed
against the direct marketing industry. Visit the DMA Web site at http://www.the‐dma.org. Examine how
the DMA addresses ethics complaints and advocates for the industry. What ethical issues do you think
were adequately addressed by the DMA? What ethical issues do you think still need to be resolved? How
would you rate the organization’s effectiveness based on what you have seen and read? Discuss your
findings with your peers.
