Final Paper due Midnight Tuesday 8 pages/Send handshakes and will review profiles

Learning Objectives

After studying this chapter, you should be able to:

• Discuss branding in terms of the contributions of consumers and marketers.

• Identify message channels in terms of their control.

• Recall three aspects of promotions requiring decisions as part of the Promotions Mix.

• Discuss marketing messages in terms of strategy, structure, and creative approach.

• Demonstrate understanding of three issues affecting promotions decisions in today’s marketplace.

Josh Gosfield/Corbis6

The Marketing Mix: Promotion

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CHAPTER 6Section 6.1 Branding: The DNA of Promotions

Introduction

Most marketing activity leads to communication activity of one kind or another, ranging from traditional advertising to cutting-edge conversations via social media. We begin exploring that communication activity with the core concept of developing and communicating branding. Then we move to how promotional strate- gies are evolving under the influence of media convergence and increasing capacities for one-to-one conversations with customers and prospects. The chapter closes with a look at the implications of humanity-centric Marketing 3.0 and access to global markets for the Promotion aspect of the marketing mix.

Promotion joins Product, Place, and Price as a “P” in the marketing mix. Promotional strategy affects three decision areas:

1. Marketing mix strategies; 2. Achieving effective market segmentation, targeting, and positioning; and 3. Enhancing revenues and profitability.

The need for organization-wide coordination and for integration of consumers into the process is fundamental to understanding Promotion’s role in the marketing mix. As you learn about the role of promotions in marketing, keep in mind this need for cross-func- tional coordination.

6.1 Branding: The DNA of Promotions

Promotion is defined as the function of informing, persuading, and influencing con-sumers’ purchase decisions. With that in mind, our discussion of promotion must begin with how consumers experience being recipients of all that communication. Receiving attention from a marketing organization is a lot like being pursued by some- body who wants to get to know you. Promotions trigger social cues deeply embedded in human psychology. Branding is the result.

As individuals we quickly sense the personalities of others we meet based on the social cues they send us such as posture, appearance, and style. A brand does for a company what a personality does for an individual—it presents a unique (differentiated) identity that hopefully attracts and retains social relationships. A flawed personality repels rather than attracts; so does poor branding.

In the Marketing Era born out of the postwar proliferation of products and services in the 1950s, marketers began focusing on positioning their products and services. They hoped to make their offerings stand out from competitors. Branding—putting a unique identity on an offering (like branding cattle, the source of this term)—was their best hope for com- petitive differentiation. Just as DNA is the carrier of genetic information, branding carries the personality information consumers use to recognize the branded product, product line, organization, or concept. Branding is the DNA of Promotions. Branding is critical if a company wants its products to stand out among all the other products in an increasingly crowded marketplace.

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CHAPTER 6Section 6.1 Branding: The DNA of Promotions

To set themselves apart from the herd, brands need to tell a story. This story, termed the brand narrative, emerges from the ongoing dialogue that connects company and cus- tomer. While companies can implement a well-crafted brand strategy and maintain con- sistent brand communications, it is customers who create the brand narrative. Consumers interact with the brand through transactions and exposures and comment about their experiences through social networking and rating sites. Consumers ultimately control the brand narrative, using the information available to them in the marketplace.

Field Trip 6.1: Brand Narratives

Follow this link to read a “yellow paper” on brand narratives from DDB Worldwide Communications

Group Inc., one of the world’s most respected advertising agencies.

http://www.tribuddb.com/pdf/?d=2008&f=DDB_YP_BrandNarratives_0108

Positioning Strategy Customers may determine the brand narrative, but marketing communicators can influ- ence them as they do so. This influential activity consists of positioning products and ser- vices. Recall from Chapter 1 that positioning refers to the creation of an identity in the minds of the target market that conveys how one offering differs from com- petitors in ways meaningful to consumers.

Earlier in this book you also learned about the value prop- osition, a statement target- ing potential customers that describes why those customers should buy a specific product or use a service from a specific company. A company’s posi- tioning and branding are closely linked to its value proposition.

Positioning helps a company’s campaigns stake a claim to a specific value proposition. Branding is the related task of presenting the positioning through aspects of style—selecting specific images, phrases, colors, typefaces, music, and so on to convey a specific attitude, consistently across all campaigns and message chan- nels. Branding even extends to company cars, staff uniforms, and headquarters décor.

In January 2012 carmaker BMW of North America introduced new advertising reinforcing its positioning as the “ultimate driving machine.” The advertising tagline had been used

Brand positioning targets a specific value proposition. What market niche is BMW vying for with its “ultimate driving machine” slogan?

Bloomberg/Getty Images

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CHAPTER 6Section 6.1 Branding: The DNA of Promotions

continuously by BMW since 1975. The new campaign promoted the tagline to a company- wide slogan. As a value proposition, the phrase promises the joy and passion for driving pleasure that BMW has become known for (Levere, 2012).

Positioning requires sacrifice, since differentiated offerings have specific value for spe- cific market niches. Certain aspects are going to be more important than others to any given market segment. Some differentiating aspects on which positioning strategy can be built include:

• Image, • Innovation, • Customer service, • Functional performance, and • Selection.

Westin Hotels developed a campaign at the start of the summer travel season in 2011 when potential guests were coping with rising gas prices and a generally weak economy. Wes- tin’s marketers chose a specific positioning strategy that promised “We help our guests feel better when they leave than when they arrived.” Print ads conveyed the message with images that suggested elements of well-being rather than stating them directly, such as

showing an image of a woman asleep on a batch of balloons. The mass-media campaign included print, digital, and outdoor ads, complemented by a social media initiative (Elliot, 2011).

The goal of positioning, as shown by these exam- ples, is to move individuals to action—to recog- nize a need, to consider options, to buy, to join, or to recommend.

Marketers Position, but Customers Determine the Brand In his book Differentiate or Die, published in 2000, Jack Trout recognized that differentiation takes place in the mind of the consumer, writing, “If you understand how the mind works, you’ll understand positioning” (Garment, 2011). The consumer is the prime focus.

Organizations do what they can through market- ing communications to position a brand, but it is customers who determine whether the brand comes to life. Marketers are learning to adapt to this new environment in which they do not con- trol the message, but collaborate with the many voices of their customers to construct a brand nar- rative. Social media provides the tools, accelerat- ing the many conversations taking place between

Westin’s positioning strategy is to “help our guests feel better when they leave than when they arrived.” How does this Renewal Lounge play into that strategy?

PR Newswire

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CHAPTER 6Section 6.1 Branding: The DNA of Promotions

the brand and its consumers, and among consumer communities—including dissenters (Wong, 2011).

Brands must behave like people in order to connect with consumers, by listening and engaging through these social-media conversations. People have friends; the parallel in marketing is a brand’s advocates. These brand-loyal consumers lead the discussion around the products and services that stir their passions. Marketers collaborate with these opinion leaders to evaluate new product ideas, marketing messages, and even co-create new products. Godiva Chocolates taps the “chocoholic” female community to drive prod- uct development—leading in one case during the economic downturn to the creation of chocolate lollipops as an answer to the need for little luxuries at easy-to-splurge-on prices (O’Malley, 2011). Some companies hire opinion leaders (for example, bloggers) to be ambassadors for their brands to specific customer communities. However, the use of com- pensation such as free merchandise, advertising support, or actual payment doesn’t guar- antee that brand ambassadors will return the favor with positive brand communications.

Marketing communications has fundamentally changed under the impact of these cus- tomer communities. This co-authoring of the brand narrative tends to make traditional marketers nervous as they lose control of brand messaging. It shouldn’t, though. Rather, this collaboration should be celebrated, as it helps achieve marketing’s primary objective: customer orientation.

Authenticity will differ from brand to brand. What is considered true to Harley-Davidson’s image will not serve for Dyson. Can you think of any other brands with differing values?

Mags Out/TV Out/Associated Press Dyson Associated Press

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CHAPTER 6Section 6.1 Branding: The DNA of Promotions

Authenticity must be part of a brand’s DNA. The brands consumers trust are those that consistently live by their values, communicating an essence that is consistent, believable, and appealing. That means something very different for Harley-Davidson, where the brand community expects an archetypal outlaw, and Dyson, with its promise of “better living through better engineering” (Smith, 2011). Given the vibrant, always-on conversa- tion among consumers, losing credibility means losing a whole network of consumers.

For an example of a brand built on authenticity, consider the story of a young British entre- preneur who became a YouTube phenomenon by teaching women how to create specific looks with makeup. As a teen, Lauren Luke experimented with makeup to counter her lack of trendy clothes and bolster her self-confidence. She began selling makeup on eBay. Luke soon discovered that photographing the makeup applied to her face rather than in containers increased sales dramatically. But responding to customer queries became so time-consuming that she decided to make a video showing people how she used her products. Luke posted her first video under the name Panacea81 (on how to achieve the smoky eye makeup look) on YouTube in 2007. The video went viral, quickly passing 1 mil- lion hits. Other makeup-tutorial videos followed and within months she began making money from YouTube’s sponsored advertising model. Within a year Sephora offered Luke her own private label line of makeup. The authenticity of Luke’s story was essential to the success of her personal brand (Wong, 2011).

Field Trip 6.2: Lauren Luke Tells Her Story

Follow the link to view Lauren Luke telling her story in a video on YouTube.

http://www.youtube.com/watch?v=_-DmL_RSTAY

Managing the Brand If customers create the brand, what can organizations do to manage brands over which they do not have ultimate control?

Marketers can help consumers have positive experiences by satisfying their expectations of authenticity, transparency, consistency, and commitment to trustworthiness. The most successful brand conversations help consumers see that they share beliefs and passions with the companies that serve them. Brand narratives feed that feeling of shared values.

Marketing communications strive to generate interaction between brand advertising in traditional message channels and the ongoing consumer conversation about the brand in social media. Marketers must participate in the consumer conversations.

Just as important is consistently delivering an excellent consumer experience. Rose Cam- eron, chief strategy officer with EuroRSGC Chicago, said in an interview with Megan O’Malley of the Journal of Integrated Marketing Communications:

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CHAPTER 6Section 6.1 Branding: The DNA of Promotions

If what you design only lives in your outbound communications, but cus- tomers don’t experience it in your customer service level or product level or retail level, etc., you’re dead. If, on the other hand, your brand vision lives across all levels, you flourish. You can see this manifested by Apple . . . they’ve incorporated it in the DNA of the brand. (O’Malley, 2011, p. 14)

ConAgra dropped the ball in managing its Marie Callender’s frozen dinner brand when in 2011 it staged a special event designed to encourage food bloggers to praise the entrees. The company used a hidden camera to record reactions at the dinner, billed as a “delicious four-course meal in an intimate Italian restaurant,” as bloggers and journalists learned they had been served frozen food instead of chef-prepared creations. Bloggers were taken aback. Soon negative comments proliferated on Twitter and Facebook. ConAgra responded to the bloggers with apologies and offers to reimburse expenses for attending the dinner (Newman, 2011). ConAgra appears to be stuck in a traditional focus on seg- menting markets and developing products, rather than treating its consumers and advo- cates as partners in managing the brand.

Measuring Brand Performance Ideally, every promotion has performance measures built into its design. Pre-testing before launching the promotion provides feedback that allows marketers to make modifications to improve the campaign’s effectiveness. Post-testing measures the impact of the promo- tion and give insight into its contribution toward achieving marketing objectives. Mar- keting metrics such as pre- and post-testing, which can measure either communication effect or sales effect, are discussed in Chapter 9. Listening to the consumer conversation provides additional information that answers questions research may have failed to ask.

Tracking performance over time is an essential component of marketing management. By comparing how each iteration or evolution of the promotional program affects the brand narrative, marketers home in on the most effective appeals, message channels, and con- sumer communities. Marketers should gather and aggregate data in a manner that allows them to compare the relative impact of various mixes of promotional tools, execution choices, and situational factors.

Carrying out promotional campaigns is expensive and time-consuming. Measuring the return on that investment is crucial not just to justify that investment, but also to gain top leaders’ support for the cross-functional organizational collaboration required to execute promotional campaigns.

In summary, the implications of branding for marketers are many, but they can be under- stood in two main categories: the aspects under consumers’ control and those under mar- keter’s control. Customers experience the brand through many diverse points of contact, ranging from traditional advertising messages to conversations in which everyone from advocates to dissenters have their say. Marketers’ positioning strategy creates the identity consumers experience. Marketers’ measurement of brand performance (including listen- ing to consumer conversations) provides the feedback necessary to keep the brand narra- tive alive and aligned with its target market.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

Questions to Consider

“The chief function of Marketing Communications is the creation and perpetuation of deep meaning through narrative,” proposed Terry Smith in The Marketing Review (2011).

Do you agree?

Call to mind a brand about which you feel passionate. Describe what its brand narrative means to you.

6.2 Using Promotions to Strengthen Brands Consumers are receiving messages constantly; some are welcome, but most are easy to tune out. Marketers must break through all those messages if they are to achieve their communication objectives. Positioning strategy is the chief method by which marketers attempt to penetrate all that noise. Effective promotions position brands in ways that trig- ger emotional connection, stimulate conversation, and ultimately lead to a loyal bond between company and customer.

Therefore, it follows that the ultimate mission of promotions is to strengthen brands, to draw consumers into the brand narrative with companies that share their passions. Under that broad mission, there are usually more specific promotional objectives to be served.

Objectives of a Promotion Promotions strengthen brands by conveying messages to consumers, directly or indirectly, via marketing communications. Messages that are specific and highly focused are more effective than general statements. Marketers should choose a specific task to accomplish with each promotional campaign. Some common objectives, with examples, are included in Table 6.1.

Table 6.1: Promotional objectives

Promotional Objective Example

Provide information. Lauren Luke’s 2007 video campaign demonstrating makeup application.

Increase demand. National Livestock and Meat Board 1992 campaign “Beef. It’s what’s for dinner.”

Differentiate a product. Avis Rent a Car System’s 1962 campaign “Avis: We try harder.”

Highlight a product’s value. Microsoft’s 2008 campaign “I’m a PC.”

Stabilize sales. Las Vegas Visitors and Convention Bureau’s 2003 campaign “What happens in Vegas stays in Vegas.”

Marketers target a promotional objective for every marketing campaign.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

Consider how the objectives in Table 6.1 differ. Once, providing information was all advertis- ing was expected to do. Messages let consumers know what was available, supported with details about how to take possession of it. The directness of this approach is still useful when the authentic personality of a brand demands an atmosphere free of “advertising hype.”

Increasing demand is the objective of most pro- motions. The aim can be to stimulate primary demand for a general product category, as in “Beef. It’s what’s for dinner,” or it can be to encourage selective demand (also referred to as secondary demand) by increasing the appeal of a specific brand, like “Buy Heartland-Quality Omaha Steaks.” Creating primary demand works on consumer interest in an entire class of offer- ings, while selective demand leverages the dif- ferentiation of a product or service to make it stand out from others in its category. It is a com- mon marketing practice for groups of advertisers to pool funds to increase primary demand for a product category in which they share a common interest. The California Milk Marketing Board’s “Got Milk?” campaign presents an example.

Compare the ad from the Wisconsin Milk Market- ing Board promoting cheese consumption with the

ad for Perdue Farms’ chicken. The cheese ad is designed to create primary demand for the general category of cheese, with the hope that cheese purchased will come from Wisconsin producers (whose efforts are supported by a state check-off program where Wisconsin dairy farmers contribute funds to pro- mote Wisconsin-produced dairy products through the Wisconsin Milk Marketing Board, an orga- nization overseen by a 25-mem- ber board of Wisconsin dairy farmers). The Perdue Farms ad is designed to create selec- tive demand for Perdue Farms’ brand of chicken products.

Perdue Farms’ ad for chicken emphasizes its superiority over competing chicken products. How does this differ from the Wisconsin Milk Marketing Board’s ad?

Perdue Farms

The Wisconsin Milk Marketing Board’s ad for cheese focuses on creating demand for a general product category. Can you name other ads that work to stimulate primary demand?

Wisconsin Milk Marketing Board, Inc.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

Differentiating a product requires finding the value proposition that makes an emotional connection with potential customers. The advertiser must promise a specific benefit that no competitor can claim, in a way that compels potential customers to take action. The Avis “We Try Harder” campaign is credited with causing the company’s market share to grow from 11 percent in 1962 to 35 percent in 1966 and was so effective the slogan became the company’s motto, still in use (Avis-Cyprus, 2011). Differentiation can be conveyed in many ways besides advertising jingles, of course. Design elements, such as stationery, retail ambience, and website design all contribute to differentiating a product or service. Highlighting a product’s value differentiates it on the dimension of price, emphasizing the greater service utility provided when compared to competitors charging the same price.

Stabilizing sales is a helpful goal when demand for a product or service fluctuates. Sea- sons, usage cycles, and even weather events can cause changes in demand. Tourist desti- nations like Las Vegas run ads to fill hotel rooms during off-peak times of year.

Components of the Promotional Mix Message channels carry marketing communications. The choice of message channels to be used is a key component of the Promotions aspect of the marketing mix.

Promotional strategies will typically emphasize either personal selling (which can be face-to-face or via technology) or nonpersonal selling (through advertising, direct mar- keting, and other channels that lack the interactive person-to-person experience). Promo- tional strategies will use either push or pull techniques, stimulating end-users or channel intermediaries, as was discussed in Chapter 4.

Message channels are proliferating rapidly. Marketing organizations are starting to look at their Promotional Mix in terms of ownership, control, and desired outcome. The POES model (derived from “Paid, Owned, Earned, Shared”) was originally developed to describe online media but has proven applicable to offline media as well. This framework (depicted in Table 6.2) assigns each message channel to one of four quadrants based on whether it is controlled by the company/brand or by others over whom the company has no control—stakeholders including consumers, commentators, and others.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

Table 6.2: POES model of message channels

Message Channels

Brand-controlled PAID Advertising media Direct marketing Experiential marketing Sales promotions Trade allowances Product placement Sponsorships Public relations Brand ambassadors Guerilla marketing

OWNED Company website Company blog In-store marketing Personal selling

Stakeholder-controlled EARNED Media coverage Review sites

SHARED Buzz (word of mouth) Facebook Twitter Blogs Other social media

Some of the categories in the POES model need more explanation than others. Brief definitions follow in the list below; some message channels are discussed in more detail later in this chapter.

Paid message channels require investment, regardless of whether the content is created in-house or purchased from advertising agencies or other marketing service providers.

• Advertising media: Traditional paid vehicles by which promotional messages are communicated to the public, such as newspaper, radio, and television.

• Direct marketing: Promotional techniques that use impersonal media to persuade consumers to take direct action.

• Experiential marketing: Planned encounters that engage consumers’ senses to create lasting impressions online, in the physical world, or both.

• Sales promotions: Short-term offers using paid media to stimulate consumer pur- chases by offering reasons to buy in addition to service utility and price.

• Trade allowances: Like sales promotions, but directed to channel partners rather than end consumers.

• Product placement: An advertising technique to subtly promote products through appearances in film, television, or other media.

• Sponsorships: Cash and/or in-kind fee paid to a property (typically a celebrity) in return for endorsements and other exploitable commercial potential associated with that property.

• Public relations: Building good relations with an organization’s various pub- lics (customers, employees, investors, suppliers, etc.) through seeking favor- able publicity and other nonpaid forms of communication such as support of

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

arts, charitable causes, etc. Companies pay for public relations activity on their behalf, not to be confused with the resulting media coverage, which cannot be purchased.

• Brand ambassadors: Individuals who serve as the face of their client company at promotional events.

• Guerilla marketing: Unconventional marketing intended to get maximum results from minimal resources. The term “Guerilla Marketing” is a registered trademark of author Jay Levinson who popularized it through his several “Gue- rilla” books.

Owned message channels are distinguished from paid message channels by the likelihood they would exist even if not called for as a component of a specific marketing plan. The distinction between paid and owned media is somewhat fluid.

• Company website: The company’s online home for information about its offer- ings, organization, career opportunities, and more.

• Company blog: The company’s online journal consisting of chronological entries that typically include short articles and links to further resources.

• In-store marketing: Marketing dollars spent inside a retail store in the form of store design, merchandising, visual displays, or promotions.

• Personal selling: Personal contact by members of a company’s sales force intended to make sales or build customer relationships.

Earned message channels are similar to paid channels in that they exist for the purpose of communicating with consumers; however, coverage in earned channels cannot be purchased.

• Media coverage: Information presented in mass media about a company by reporters; may result from public relations activity.

• Review sites: Websites on which reviews can be posted about people, businesses, products, or services, such as Yelp and Angie’s List.

Shared message channels arise from consumers’ interest in engagement through dialogue in online communities.

• Buzz (word of mouth): Anything that creates excitement or stimulus, such as a recommendation by a satisfied customer; leverages consumers’ interest to gener- ate marketing messages.

• Facebook: A social networking website with more than 800 million active users in 2011 (Facebook, 2012).

• Twitter: Social networking website enabling its users to send and read other users’ messages of up to 140 characters, called tweets, with more than 100 million active users and an average number of tweets nearing 230 million reported in September 2011 (McMillan, 2011).

• Blogs: Online journals consisting of chronological entries on which an individual or group of users regularly post their opinions, information, photos, etc.

• Other social media: Similar to Facebook are other social networks such as Tribe .net, LinkedIn, Myspace, and so on.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

The categories in the POES model provide a useful framework for integrating marketing communication strategies across corporate functions such as sales, marketing, and public relations. A marketing plan can specify investment in Paid and Owned message channels. It can specify effort and invest- ment to be directed toward Earned and Shared message channels, including paying indi- viduals to pursue coverage. But a marketing plan cannot guaran- tee those messages will appear —stakeholders, not advertisers, control these channels.

Each message channel in the Promotional Mix represents a potential consumer touch- point—the basic building block of brand experience. The quality of the consumer experience at each touchpoint will influence consumers’ relationship with the brand, affecting subsequent actions. This fact challenges marketers to deliver compelling, consistent experiences through all message channels. Even an advertisement printed in a newspaper attempts to create an experience compelling enough that readers will remember its message.

Developing the optimal Promotional Mix to serve a specific objective is discussed a little later in this chapter; first we must examine trends influencing how various message chan- nels perform. Effective promotions require that the Promotional Mix be coordinated with the entire marketing mix—and vice versa.

On the Decline: Traditional Advertising Techniques As a message channel, traditional paid mass-media advertising is losing its relevance. Its nonpersonal nature, the difficulty of tracking results, and its high cost are all work- ing against the “old-school” advertising channels such as broadcast and cable television, radio, and magazines and newspapers.

The impersonal nature of mass media (and even targeted media, to some extent) detracts from its ability to engage the message recipient. It is less effective at stimulating action than more personal message channels. Technology that allows consumers to avoid adver- tising has proliferated, such as digital video recorders and advertising-free cable and sat- ellite media.

Traditional advertising was never a very effective option for businesses to reach other busi- ness buyers. Only limited advertising media options exist to reach businesspeople in even the largest industries. Personal selling has traditionally been the relied-on approach for

The social networking website Facebook is an example of a shared message channel that serves consumers’ interest in dialogue via online communities.

age fotostock/SuperStock

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

B2B marketing. Personal selling allows relationships to build in which the seller becomes knowledgeable about the buyer’s preferences, budget, and decision process. Personal sell- ing is no less expensive than advertising media, however; both require significant invest- ment. In the age of social media conversations, personal selling maintains its relevance, since salespeople are individuals who can credibly participate in social media. Traditional advertising has not held onto its relevance so well.

On the brand-controlled side of the Promotional Mix, media convergence now character- izes many message channels. The messages delivered in the past through newspapers, magazines, books, radio, and television are increasingly delivered to consumers through one digital delivery system—the Internet. At the same time media are converging onto the Internet, the screens on which those media are viewed are multiplying. Marketers are struggling to keep up with the latest menu of media channels, technology for access- ing them, and consumers’ behaviors and preferences regarding the brand messages they receive through them.

The best available screen theory explains consumer behavior in a media-convergent world. The ESPN Network began to research cross-media behavior in 2002 with a study on consumption of ESPN media platforms. In 2010 published results of ESPN’s research revealed that sports fans might watch ESPN on TV while preparing for work, listen to an ESPN radio program in the car on the way in, use ESPN.com online to keep up with sports news while at work, and bring up ESPN Mobile on a smartphone while out and about—choosing the best available screen depending on their location at any time. The advertiser who wants to reach those sports fans will need to follow them throughout the day, offering relevant messaging and building on each touchpoint (Enoch and Johnson, 2010). The lesson for marketers designing a Promotional Mix strategy? Be where targeted consumers are throughout the day—to the extent budgets allow.

Advertisers with deep pockets like ESPN’s aren’t leaving traditional advertising media behind—they’re following their target market from screen to screen. But companies with fewer resources or narrower target markets cannot do so. These companies must turn to other tactics—like direct marketing or greater collaboration with consumers.

On the Rise: Direct Marketing and Consumer-Generated Marketing As media convergence has left marketers uncertain how to best use mass-media channels, they have been turning their attention to direct marketing and consumer- generated marketing.

In Chapter 2 the shift from mass-market toward one-to-one campaigns was discussed. This shift, in response to the waning effectiveness of mass-media advertising, is bringing marketers back to the time-tested methodology of direct marketing.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

Direct marketing can take many forms, including direct mail, telephone sales, and e-mails. Like personal selling, direct marketing offers the potential for interaction between seller and prospective buyer. It can be easily customized to specific market niches and even individual recipients. The return on marketing investment is easier to judge, since direct marketing campaigns trigger specific responses that can be measured. Direct marketing requires sophisticated database technology to provide the customer or prospect data to address the campaign and to gather response data after they are delivered.

Use of direct marketing by mail and e-mail is increasing due to the availability of customer information systems, new printing technologies, and the increasing ability to customize content online and to interact with consumers there (Kerin, 2009). Sellers appreciate that direct marketing is more directly tied to sales results and provides more data for analysis, leading to better targeting of prospective customers over time.

Also drawing marketers’ attention are the new media in which consumers generate the message, through word of mouth (buzz) and social media. The term “social media” was coined in 2007 to refer to social networking sites. Since then, social media (meaning Web applications that encourage user-generated content) has become a respected (if not yet well-understood) marketing and communications channel (Wong, 2011). Consumer deci- sions have become increasingly influenced by their peers. Through review sites like Yelp, brand advocates enthuse about their favorites and disgruntled consumers share their peeves. Consumers are more likely to trust these voices than to trust advertisers, even as companies become more active on social networks.

How are marketers responding to this trend? Consider the following example from the travel industry, where hotels are turning to social media to connect with travelers. Their customers have increasingly moved to booking flights through online travel agencies. Once on those sites, purchasing a flight, it becomes irresistibly easy to book hotel rooms that the travel sites suggest as add-ons. Hotels are attempting to capture those travelers’ bookings, catching up with them at the point where a recommendation turns into booking a reservation.

Facebook pages for companies like Kimpton Hotels present a way to start a conversation with potential guests. By reaching out through social media, hotels make sure their book- ing engines are available where the customers are, rather than hoping the customer will look for them. The richness of social media lets hotels do more than just book a reserva- tion—they can engage in dialogue to find out the guest’s preference (for example, what to stock in the minibar). That kind of personal service helps hotels give customers more reasons to stay, thus building customer loyalty.

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

Field Trip 6.3: Social Media Encourages Dialogue

Visit Facebook to explore how hotels are using social media to lure travelers by catching them where they get recommendations from friends. As you browse, note how many posts and links come from individuals eager to get or give recommendations for travel accommodations, as opposed to compa- nies promoting their own offerings.

Kimpton Hotel and Restaurants:

http://www.facebook.com/Kimpton?sk=wall

Renaissance Hotels:

http://www.facebook.com/RenaissanceHotels?sk=wall

Social media must be seen as more than just an increasingly important message chan- nel: It’s a new genre of social communication. Consumers’ friends, peers, and even total strangers’ postings now influence consumers more than advertisers (Wong, 2011). The consumer-generated marketing content of these conversations, sometimes called buzz, is the latest twist in the message channel word of mouth. When people start sharing brand messages for their entertainment value, the buzz goes viral. Word-of-mouth is as old as the back fence and the corner store, wherever neighbors meet and talk. What’s different today is that social media now amplifies word-of-mouth so that it reaches peer communi- ties—and beyond—instantly.

Buzz marketing is popular among marketers as a message channel strategy, especially when young people are the target audience—the teens and 20-somethings who tend to be most skeptical of mass-media advertising (Kotler, 2006). To be “buzzable” a company’s offerings need to be:

• Exciting or innovative—real news gets buzz that advertising promises seldom attract,

• A personal experience—like travel or entertainment—that moves an individual emotionally, and

• Best of class—or the buzz will be negative.

The first campaign acknowledged in the marketing community as intentionally viral was Burger King’s use of the “Subservient Chicken” to promote its TenderCrisp chicken strips. The website featured a costumed chicken character responding to typed commands. The idea was to connect viewers’ actions to Burger King’s tagline, “Have it your way.” A “tell a friend” button on the site encouraged sharing. According to Burger King, the site received more than 46 million hits in the week following its launch in April 2004 (Kotler, 2006).

While some viral campaigns are created by marketers, like Burger King’s Subservient Chicken, others are generated by consumers who are brand-passionate. A viral marketing campaign emerged during Barack Obama’s run for president in 2007. A video created by Ben Relles and Rich Friedrich for BarelyPolitical.com (producers of political satire) fea- tured a sensuous young woman singing “I Got a Crush on Obama” in which she expressed her admiration for the candidate. Uploaded to YouTube in June 2007, the video drew thousands of views within hours. A series of “Obama Girl” videos followed. The clips

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CHAPTER 6Section 6.2 Using Promotions to Strengthen Brands

In the bigger picture of Promotional Mix strategies, what value does an uncontrollable message channel like buzz marketing have? Not only are marketers asking, “Where’s the ROMI?”; they’re worrying about what’s at stake when the public takes a message and runs with it.

The consensus is that buzz campaigns should tie the entertaining message to something of value that produces a measurable result, like use of a coupon. For example, Groupon often requires a minimum number of customers for the daily deals to be offered, a strategy intended to encourage people to share the offers with their friends through social media, and that produces tracking data when each groupon is redeemed.

Promotions strengthen brands while aiming at a specific tactical objective, such as provid- ing information, increasing demand, differentiating a product, highlighting its value, or stabilizing sales. Promotional strategies (which may be personal or nonpersonal, and may employ a push or pull tactic) require selecting a Promotional Mix, choosing from message channels in four categories. The Paid and Owned categories are brand-controlled, while the Earned and Shared categories are stakeholder-controlled. As marketers adjust to a world in which consumers trust their peers more than advertisers, their Promotional Mix

contributed to the perception that supporting Obama was hip. While the Obama campaign did use planned social media to reach out to youth, creating brand conversations that made them feel they were part of the political change, the campaign had no role in the creation of Obama Girl (Wong, 2011).

The stories of Burger King’s Subservient Chicken and Bare- lyPolitical.com’s Obama Girl are reminders that in the world of social media, successful mar- keters don’t just communicate messages—they provide value through entertainment (DeBi- ase, 2011).

The first viral marketing campaign was Burger King’s “Subservient Chicken.” The campaign transformed Burger King’s tagline “have it your way” into an engaging activity.

FilmMagic/Getty Images

Field Trip 6.4: Obama Girl Goes Viral

The Obama Girl video was named by Newsweek a top 10 meme of the decade and the Webby Awards a top Internet moment of all time. Obama Girl videos have been viewed over 120 million times.

http://www.youtube.com/watch?v=wKsoXHYICqU

http://obamagirl.com/story.html

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CHAPTER 6Section 6.3 Promotional Mix Decisions

selections are trending toward direct marketing and social media, while depending less on traditional advertising media. However, they are wrestling with two issues: how to measure results, and how to manage the loss of control inherent in the consumer-gener- ated conversations in Earned and Shared media channels.

Questions to Consider

“Obama Girl” was not controlled by the Obama campaign—in fact, candidate Obama told the Asso- ciated Press that the Obama Girl video had upset his daughters (Falcone, 2007). What issues about social media and marketing does this raise?

Are marketers better off using brand-controlled (Paid or Owned channels) to avoid the loss of control associated with stakeholder-controlled (Earned or Shared) channels?

6.3 Promotional Mix Decisions

Promotional Mix decisions involve (1) choosing the right message channel to reach target customers, and (2) developing the right message to send them. To do this, marketers need an understanding of communications—how messages get from a sender to a receiver and what occurs as a result.

Frameworks for Understanding Communications In the communication process senders encode messages in language, media carry the messages, and receivers decode the language of the messages. Consider the following text message exchange:

Joe: 2b,cafe 9.

Selena: I b l8.

Joe: NP.

Joe is telling Selena he’ll be at the café at 9; she responds that she’ll be tardy in joining him, and he replies “no problem.” The exchange has been encoded in the shorthand of text messaging and sent through the medium of wireless cell phone communications.

With the growth of interactive media channels, almost everyone now has the ability to create as well as to receive messages. Thus we interact in a transactional communication model. The transaction occurs when the receiver responds by encoding another message and sending it through media, and the original sender decodes its language, as in Joe and Selena’s exchange. This process is shown in Figure 6.1.

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CHAPTER 6Section 6.3 Promotional Mix Decisions

Figure 6.1: Transactional communications process

Sender’s field of experience

Sender ReceiverEncoding Message

Media

Noise

Decoding

ResponseFeedback

Receiver’s field of experience

The growth of interactive media channels has given almost everyone the ability to create as well as to receive messages, a feature of the transactional communication model.

Source: Adapted from Kerin, p. 337.

Several factors can keep the transaction from being as clearly understood as Joe and Sele- na’s text conversation. Extraneous noise factors can distort or block the message. Noise could be a typo in a text message or a badly printed page in a newspaper that makes an advertisement difficult to read. In spoken communication, noise can be actual background sounds or an individual’s accent or use of slang that makes it difficult for the hearer to decode what was said. Noise results in the receiver getting a different message from the one the sender intended—or receiving no message at all.

In addition to the unplanned distortion caused by noise, a lack of shared experience can hamper communication transactions. Marketing communicators must understand their target consumers’ field of experience. Each of us has a field of experience, made up of the attitudes, knowledge, perceptions, and values that we bring to a situation. Effective communication can only take place when sender and receiver share a field of experience that allows each to understand what the other is talking about. When an American men- tions wearing knickers to ski, a Briton will picture the skier wearing only underpants—an example of miscommunication through a lack of shared field of experience regarding the meaning of the word knickers.

For marketers to craft effective messages and place them in effective channels, they must understand the importance of the transactional communication model. In a Marketing 3.0 world, customers expect to have conversations with the companies they buy from. And with the increasing globalization of that 3.0 world, attention to the target audience’s field of experience grows more important.

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CHAPTER 6Section 6.3 Promotional Mix Decisions

Plans, Schedules, and Budgets With an understanding of the target audience’s field of experience and the transactional communication model, marketers have the information on which to base effective Promo- tional Mix decisions. Now we turn our attention to exactly what those decisions involve: plans, schedules, and budgets.

Plans are essential for effective action. Factors affecting the plan for the Promotional Mix include:

• Type of market: Small audience concentrated in one geographic area, or large mar- ket, scattered over large or distributed geographic area(s).

• Type of product offering: Convenience, shopping, specialty, or unsought (defined in Chapter 3).

• Seasonality: Offerings that experience cyclical changes in demand. • Stage in the Product Life Cycle (defined in Chapter 3): Introduction acquaints

consumers or intermediaries with a new offering; Growth calls for advertising to increase interest; Maturity requires messages that stress differentiating attributes; Decline sees a shift to sales promotions or reduced spending.

• Business model/channel strategy: B2C organizations tend to use pull strategies, while B2B tend to be push (defined in Chapter 4).

• Budget: The cost of paid and owned channels, plus the cost of monitoring and participating in shared and earned channels.

• Competitors: Businesses facing new or aggressive competitors respond by increas- ing promotional activity.

These factors will lead marketing decision-makers toward either a personal approach or a nonpersonal one. Personal selling tends to dominate when the number of buyers is small, their geography is reasonably concentrated, and the offering is complex or requires customization. Nonpersonal selling will dominate when a large number of buyers are so widely dispersed that they are difficult to service personally, and/or when the offering is standardized, with minimal need for service during or after the sale (Kurtz, 2010). Table 6.3 highlights unique features of several message channels.

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CHAPTER 6Section 6.3 Promotional Mix Decisions

Each message channel has its advantages and disadvantages; marketers make their selection based on promotional objectives.

A promotional objective can be achieved with many combinations of message channels. Planning a successful Promotional Mix schedule requires creativity and insight into the target market’s interest and purchasing behavior (Kerin, 2009).

Schedules must be developed for every activity in the promotional plan. A media plan will be developed for all paid advertising; this topic is discussed in more detail in Chap- ter 9. The media plan details the when, where, how much, and what (message content) intended for each media outlet. More schedules cover personal selling and public rela- tions activities, sales promotions, and direct marketing campaigns, if called for, in the Promotional Mix.

An organization can only execute what it can pay for, so budgets come into play for each activity in the Promotional Mix. A number of methods of budgeting have their propo- nents; the Task-Objective approach is one that emphasizes measurement of the productiv- ity of each promotional dollar (Kurtz, 2010). In this method (discussed in more detail in Chapter 9) marketers determine specific promotional objectives, and then determine the amount and type of spending needed to achieve them. Computer-based modeling helps planners explore “what-if” scenarios to estimate the effect of various levels of spending.

Measurement of results quantifies the program’s contribution to profitability, or ROMI. Typical measures include cost per impression, cost per response or click-through, and conversion rate (how many receivers of the message convert from prospect to customer). In the hyper-engaged world of Marketing 3.0, marketers must analyze and measure both outgoing and incoming communication. Campaigns that integrate some form of direct response make it much easier to quantify results, but marketers are still seeking ways to measure the contribution to profits from brand narratives generated in social media con- versations. Budgets are easier to justify when the effect of the spending can be quantified.

Table 6.3: Message channel advantages

Message Channel Advantages and Disadvantages

Advertising Expressive, dramatic, persuasive, but one-way and costly

Direct marketing Person to person, immediate, customizable

Guerilla marketing Reaches people who avoid sales and advertising; entertaining

Personal selling Builds relationships; more effective at later stages in buying process

Product placement Reaches people who avoid sales and advertising; believable, but costly

Public relations Relies on reporters’ interpretation; believable, but difficult to control timing or message

Sales and trade promotion Adds interest to message; rewards quick response

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CHAPTER 6Section 6.4 Crafting Marketing Messages

The Promotional Mix, when strategically designed, brings news of goods and services that improve lives to the people most likely to benefit from them. Accurate targeting keeps that news from cluttering the worlds of those who are not interested, and creativity in designing the message delivers the value of entertainment, as evidenced by campaigns that go viral.

None of this would take place without an understanding of communications applied to the Promotional Mix—or without marketers’ plans, schedules, and budgets.

Questions to Consider

With the increasing use of message channels controlled by stakeholders, including consumers and commentators, conventional measurement methodology becomes less and less relevant. How do you think stakeholders’ impact on the brand narrative through social media might be effectively measured?

6.4 Crafting Marketing Messages An effective marketing message does more than simply reach a receiver. It must gain the receiver’s attention, achieve an understanding shared by both sender and receiver, call the receiver’s attention to felt needs and desires, and suggest how they might be satisfied. That’s a tall order, and one that requires focus on first selecting an appropriate creative approach, then following up with excellent technical execution of the content that will fill message channels.

The Promotional Mix will indicate whether a “push” or “pull” tactic will be emphasized, with a goal of either creating a flow of demand through messages directed to intermedi- aries, or by advertising to consumers to stimulate them to seek out retailers selling the product or service. When “push” is the tactic, there may be little or no advertising to cre- ate. The marketing messages will likely take the form of talking points for salespeople to use in face-to-face conversation. When “pull” is the tactic, advertising more often carries the marketing message. It’s time to take a closer look at that process.

Marketing messages may be created in-house by an organization’s marketing department or developed by the organization’s advertising agency. The roles and processes in creating advertising messages will be much the same in either workflow.

Each message channel specified in the Promotional Mix requires content to fill it—and therefore planning, implementation, and evaluation. In Chapter 2, The Marketing Process, you learned about the campaign development process. Essential to that process is the creative brief—a document prepared by marketing planners that sets out the communica- tion objective, profiles the target audience, and conveys instructions for work to be done by the creative team. Market research results will be included in the brief, or in its absence, a description of research needed. The brief includes a schedule and deadlines for each step in the creative process. The brief puts a framework around the process that gives direction and supports an approvals process as creative work is completed.

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CHAPTER 6Section 6.4 Crafting Marketing Messages

Who are the people on the creative team? Roles are shifting dramatically under the influ- ence of media convergence and consumer collaboration. Traditional roles of account man- ager and account planner may evolve to new roles with titles like idea architect, data miner, and delivery wizard (Cassel et al., 2011). Working under these leaders’ direction, content producers such as writers, artists, videographers, and Web designers collaborate to produce messages.

In addition to the creative team, a marketing department or ad agency will include strategic planners, media planners, and a traffic controller whose respon- sibility is to assign work, moni- tor progress, and ensure that all the components of a market- ing campaign come together as planned. Researchers may be on staff, dedicated to profiling target markets, evaluating mar- keting campaigns’ effects, and feeding that information back to managers and planners.

It’s time for a closer look at the components that drive adver- tising strategy, the subset of the Promotional Mix that deals with paid media.

Advertising Strategies The creative brief will include a statement of advertising strategy that will sum up who is targeted, what benefit will lead the pitch, and why—the rationale that supports that claimed benefit. The advertising strategy gets its direction from the brand’s positioning and the value proposition marketing decision-makers have developed. The brief will also specify whether the marketing message will include a specific call to action—termed direct response advertising—or will focus on creating generalized goodwill for a prod- uct, service, idea, or organization—termed image advertising. Image advertising evokes a scene that associates pleasure with the offering. Image advertising works slowly over time, building brand equity. Campaigns like GE’s “We bring good things to life” or Intel Corporation’s “Intel Inside” are examples of image advertising.

Consider how three Volkswagen image-advertising TV spots that aired in 2000 targeted slightly different audiences. These commercials show how marketers use all the persua- sive tools of advertising, including evocative visuals, music, and storytelling, to bring positioning to life. Follow Field Trip 6.5 to view the ads on YouTube.

Roles on creative teams are shifting dramatically under Marketing 3.0 influences, but still operate within the framework of creative briefs.

iStockphoto/Thinkstock

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CHAPTER 6Section 6.4 Crafting Marketing Messages

Field Trip 6.5: Volkswagen Targets Niches With Image Advertising

Note how each spot addresses a different demographic, tied to the markets for which the cars are designed. The Golf is your first car, the Jetta is your “moving up” car, and the Passat is the car you need when you start a family.

Volkswagen Golf, “Pink Moon”

http://www.youtube.com/watch?v=BIOW9fLT9eY

Volkswagen Jetta, “Synchronicity”

http://www.youtube.com/watch?v=sRYJ-TMoaqA

Volkswagen Passat, “Palomita Blanca”

http://www.youtube.com/watch?v=lSscCgcFtM0

Companies seeking measurable short-term results deploy direct response advertising, which asks for the order with phrases like “Vote on Tuesday” or “Call in the next hour to receive an extra bonus.” Direct response advertising often makes use of sales promotional techniques, as described in Chapter 5. These techniques, which add short-term incentives to buy that are not part of the value proposition of the service rendered, give urgency to the call to action in direct response ads.

Developing the Creative Approach Ads sell by dramatizing a value proposition. Words and images bring the offering to life in a manner consistent with a company’s brand. With an audience and a value proposi- tion in mind, the creative team approaches the task of finding a “Big Idea”—a memorable narrative that dramatizes the value proposition.

As advertising professionals adapt to the Marketing 3.0 world of consumers engaged in creating their own brand narratives, more “Big Ideas” are coming from customers who relate the stories of their experiences with a brand. A creative revolution is taking place as marketers seek creative responses that keep their brands at the center of consumers’ hearts and minds. The fundamentals of developing a creative approach remain in place, but what creative advertising minds build on that foundation is taking bold new direc- tions (Hackley, 2010).

Even so, certain fundamentals of effective advertising remain. Advertising copy follows a precise structure, as formulaic as a sonnet or haiku. The structure is termed the AIDA for- mula, an acronym that describes four common requirements to sell a product or service. The seller must:

1. Get Attention, 2. Arouse Interest, 3. Create Desire, and 4. Motivate Action.

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CHAPTER 6Section 6.4 Crafting Marketing Messages

When advertising copy is destined for one-to-one marketing, opportunities for custom- ization are woven in. Data should drive increased relevancy in the copy and imagery for each recipient. Developing ads destined for multiple versions is a demanding specialty.

It is not uncommon for creative professionals to push the boundaries of the creative brief. A Big Idea might bubble up that dramatizes a different benefit than specified by the brief. A fresh idea for imagery or a headline might feel so promising the creative team goes back

Advertising copywriters generally begin by developing a concept, represented by either an image or a headline that will command the attention of a target market. They then write copy that includes points designed to provoke the four requirements of “AIDA” in the correct sequence.

Most ads contain both informational and persuasive elements. Common advertising cre- ative approaches include the following:

• Storytelling: Describes the experience of the product in use. • Number of reasons why: Presents the value proposition as a series of feature/ben-

efit statements, typically ranked in order of priority. • Question and answer: Similar to “Number of reasons why”; presents the value

proposition in a series of questions and answers; often scripted as a conversation. • Humor: Uses exaggerations or incongruities to blend entertainment with the sell-

ing message. • Fear: Suggests negative consequences that can be avoided through the value

proposition. • Sex appeal: Suggests increased attractiveness will be achieved through the value

proposition.

Field Trip 6.6: Classic Advertising Messages

Follow these links to view several popular television commercials. Can you identify the creative approach in each?

This 1982 campaign for Levi 501 jeans increased sales of denim jeans by some 600 percent (Hackley 2010, p. 13).

Levi’s laundrette: http://www.youtube.com/watch?v=wT4DR_ae_4o

Levi’s “best commercial ever” truck breakdown: http://www.youtube.com/ watch?v=zaqcthqw5Tg&NR=1

Old Spice: The Man Your Man Could Smell Like

http://www.youtube.com/watch?v=owGykVbfgUE

Allstate TV Ad: Mayhem Is Coming Teen Driver

http://www.youtube.com/watch?v=HR19XBym6v4

Centraal Beheer picknick

http://www.youtube.com/watch?v=MC4Wt2MPru8

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CHAPTER 6Section 6.4 Crafting Marketing Messages

to the planners to suggest the creative brief be altered to fit the idea. Like any creative process, developing great advertising must leave room for discovery.

The goal of every advertising message is engagement. Ads that entertain earn that engage- ment by delivering a small, pleasurable experience. “Advertainment” is a term coined for ads that entertain by relating a dramatic narrative or by engaging consumers in an interac- tion, such as a game. The goal with this type of content is to become widely talked about, shared, and viewed. Advertainment merges the marketing brand-controlled channels of advertising and sponsorship with the stakeholder-controlled channels of social media. Advertainment can be achieved with “old-style” advertisements that entertain so well that people want to share them, like commercials for Levi’s 501 jeans, or by interactive techniques like Burger King’s Subservient Chicken.

As the fall flu season com- menced in 2011, Kimberly-Clark introduced a facial tissue with ingredients that promise to soothe sore noses with a cool- ing sensation. The campaign tagline “softness worth shar- ing” extended a brand cam- paign from the previous fall designed to stimulate consumer engagement. Consumers visit- ing Kleenex.com could sign up to send a free packet of tissues to friends and family. About 1 million consumers did so. The initiative used emotional bonds to raise the product above com- modity status, by activating relationships (the sharing com- ponent) rather than self-interest (Newman, 2011).

Ads for Kleenex Cool Touch™ products were designed to create engagement by inviting consumers to visit Kleenex.com, where they could send a free packet of tissues to friends or family.

Associated Press

Field Trip 6.7: Kleenex’s “Softness Worth Sharing” Campaign

Visit YouTube to view a “softness worth sharing” ad that ran in Canada.

http://www.youtube.com/watch?v=k9SdpCDer7k

As you have learned, marketing messages more often support a pull strategy than a push. The messages will follow the AIDA structure designed to move recipients from unaware- ness to a measurable action. Any of a number of creative approaches may be used to com- municate the value proposition. The goal is to achieve engagement with potential buyers in the target market, in a manner consistent with the seller’s brand.

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CHAPTER 6

Questions to Consider

Leaf through a magazine looking at the ads, or watch TV commercials online where you can pause them for closer study. Can you identify the creative approach in each ad? Can you identify components of the AIDA formula in use?

6.5 Promotional Mix Issues in a Marketing 3.0 World

In the consumer-empowered world of Marketing 3.0, marketers no longer control all aspects of the Promotional Mix—only the paid and owned channels. Stakeholders —especially customers—control the earned and shared channels. They expect to be partners, turning their urge for meaningful engagement into collaboration with the com- panies they buy from (Prahad & Krishnan, 2008). This shift has affected the Promotions aspect of the marketing mix, demanding tighter cross-functional control, strategic use of consumer data, attention to social responsibility, and care in addressing foreign markets.

Integrated Marketing Communications The Promotions “P” has grown in complexity with marketers’ increasing emphasis on Integrated Marketing Communications (IMC), which focuses on managing customer relationships over time. IMC brings the customer’s viewpoint into the marketing process, integrating all management initiatives related to brand communications so that audiences encounter a consistent message across all channels. Industry leaders suggest the big- gest challenge facing marketers today is the alignment implicit in the IMC approach—of business units, geographies, brands, metrics, and marketing communications (Cassel et al., 2011).

Successful use of the IMC approach requires teamwork across every business function touched by promotion. In-house resources must work seamlessly with outside partners. But achieving a meaningful level of coordination among internal units, channel partners, and customers is not easy. “The biggest issue right now for clients is complexity,” said Rose Cameron, chief strategy officer with EuroRSGC Chicago, in an interview. “. . . You don’t just buy a page in a Condé Nast magazine, you buy into Condé Nast print, the website, a special event . . . it’s crazy! . . . How do you execute and manage across those different types of media?” (O’Malley, 2011). This complexity inherent in the IMC approach makes it difficult to attain. More on IMC appears in Chapter 9 on marketing management.

Practicing One-to-One Direct Marketing The growth of direct marketing parallels the move toward IMC: Both respond to changes in media channels, growth in customized products, and increasing use of database tech- nology to target campaigns to niche markets (Kotler, 2006).

Increasing technological power for data-driven marketing has given rise to customer ana- lytics—a decision-support tool that influences market segmentation and predictive ana- lytics. Direct marketers use analytics to understand customer behavior, to reach the right people with the right offer at just the right moment. Whether the promotional technique

Section 6.5 Promotional Mix Issues in a Marketing 3.0 World

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CHAPTER 6Section 6.5 Promotional Mix Issues in a Marketing 3.0 World

The FTC disagreed with Reebok’s claims that EasyTone/ shoes would improve the appearance of walkers’ legs and rears more than ordinary sneakers. Should marketers be held responsible for their claims?

Associated Press

involves direct mail, e-mail, television infomercials, online advertising, or some other channel, the goal is first asking for the order. The second goal is tracking what happens as a result, to improve strategies and generate better results with every cycle. But the need to acquire and track huge amounts of data poses a new challenge: developing effective data mining techniques to analyze and make predictions about consumer behavior, feed new product development, and create ongoing relationships with individuals. How to mine the data so it produces useful information and insights? Marketers are still working toward an effective answer. More on this topic appears in Chapter 7 on target marketing.

Social Responsibility As marketers increase their reliance on information technology, issues of social respon- sibility come into play. Privacy advocates suggest that devious marketers are intent on learning about consumers without their knowledge. They question the ethics of behav- ioral targeting, by which marketers capture consumers’ communication behaviors and then market to them based on those observations. Many marketing practitioners see this as merely the latest evolution of the database marketing that has been common practice for half a century. Professor emeritus Don Schultz characterized the two prevailing views of this ethical question in his article “The Bugaboo of Behaviors” in the summer 2011 issue of Marketing Management:

“It’s insidious snooping and invasion of personal activities,” say the pri- vacy advocates.

“It’s useful and helpful analysis to provide better coordinated and more relevant marketing for consumers,” say the practitioners.

The problem is that both are likely right. . . .

Schultz concludes that there is no need for surreptitious use of electronic data—that simple sta- tistical analysis of reliable data that consumers willingly pro- vide is enough to improve mar- keting returns (Schultz, 2011). Industry-developed guidelines call for adherence to a set of consumer privacy rules that includes honoring consumer requests to opt out of receiving marketing messages and/or dissemination of their contact information to other marketers (Kotler, 2006).

Marketers must accept responsi- bility for observing laws against false and deceptive promotional

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CHAPTER 6

practices. Reebok claimed its EasyTone shoe line would tone and strengthen customers’ legs 11 percent better and sculpt bottoms 28 percent better than regular walking shoes. The Federal Trade Commission’s (FTC’s) Bureau of Consumer Protection disagreed. Ree- bok settled with the FTC to avoid a protracted legal battle. Customers who bought the shoes will receive up to $25 million in refunds. (Elliott, 2011).

Consumers’ concerns about intrusive advertising, invasion of privacy, and the nuisance of spam are all valid. Marketers who engage in such practices risk damage to their brands, if not actual legal sanctions. Socially responsible marketing builds bonds of loyalty, not mistrust. More on socially responsible marketing appears in Chapter 10.

Going Global Globalization is widely viewed as an imperative driving business strategy today (Doug- las & Craig, 2011). But the trend toward direct and consumer-generated marketing tech- niques meets difficulty when exported beyond developed countries where a consumer culture dominates. These techniques, so effective with Marketing 3.0 consumers, are not well-supported globally. Delivering messages by Internet, mail, or telephone is not as reliable in developing countries. International mailing lists are increasingly hard to come by, due to international magazines ceasing print distribution, which reduces the num- ber of subscriber lists available. Some countries require mandatory opt-in to marketing messages. Systems for secure payment are not equally available around the globe (Kerin, 2009). In light of these factors, going global loses its luster.

The possibility of cultural missteps rises as the common ground between sellers and buy- ers is reduced. The lack of shared language and heritage makes it difficult for a creative team from one culture to create pitches that resonate with consumers in another culture. For example, the “OK” sign made with thumb and first finger in the United States trans- lates in Mediterranean countries as “zero” or “the worst” and in Tunisia as “I’ll kill you” (Kurtz, 2010). An ad featuring that familiar image would send a very different message in different countries. Furthermore, ethical issues like the quinoa conundrum discussed in Chapter 1 fuel consumer anxiety about the cultural effects of globalization. A backlash against brands may result.

So what is the bottom line? When it comes to global marketing strategies, expansion is good, but applying a one-size-fits-all creative approach is not. Leading strategists recom- mend a semi-global marketing strategy, integrating marketing communications activity in all parts of the world but respecting the different directions required in different parts of the globe (Douglas & Craig, 2011).

Section 6.5 Promotional Mix Issues in a Marketing 3.0 World

Field Trip 6.8: Globalization

Read an article on Ethical Globalization prepared by the Aspen Institute Center for Business Education, in which a corporate vice president of global communications with FedEx Corporation answers ques- tions on international development.

http://www.aspencbe.org/documents/Ethical%20Globalization%202008%20FINAL.pdf

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As this discussion has shown, the complexity of the Promotions “P” of the marketing mix in the Marketing 3.0 world demands an organization-wide IMC approach, more sophis- ticated use of consumer data, greater attention to social responsibility, and a semi-global strategy, rather than a one-size-fits-all approach, if foreign markets are involved.

Case Study: Barilla’s “Summer of Italy”

Questions to Consider

Of the issues raised regarding developing promotions in a Marketing 3.0 world, does one issue strike you as more important than the others? If yes, why?

Case Study: Barilla’s “Summer of Italy” Italian food company Barilla entered the U.S. market in 1996 and just three years later stood first in sales among leading brands. When the Atkins Diet counseled dieters to radi- cally cut their intake of carbohydrate-laden pasta, Barilla fought back by co-sponsoring a conference that brought the world’s top food and nutrition scientists to Rome to dis- cuss (and publicize) the benefits of the Mediterranean diet (Cox, 2011). Sales continued to improve year-over-year despite the Atkins trend.

Cut to summer 2011. Barilla launched its “Summer of Italy” campaign, an initiative that combined experiential marketing with sales promotion to emphasize its Italian roots to New Yorkers. (Almost all Barilla pasta sold in the United States is produced in U.S. plants.) Roving street teams, product sampling, and cultural events unfolded in New York City in a concentrated burst between July 27 and September 15, 2011 (Newman, 2011).

To kick off the campaign, Barilla brought its executive chef to offer cooking classes at Eataly, New York City’s home base for those passionate about all things Italian. Driving the Italian theme further, five Barilla-branded Fiat cars fanned out over the five boroughs from August 23 to September 12, visiting Italian “foodie” destinations such as gelato shops and pizzerias. At each stop, brand ambassadors passed out tickets to the upcoming Casa Barilla–branded Italian food festival in Central Park. Elsewhere in the city throughout the promotional period, brand ambassadors passed out pasta-dinner kits. For every meal that was given away, Barilla donated $1 to the Food Bank for New York City so New Yorkers in need could also share the table.

Barilla blended social media into the Promotions Mix with a sales promotion—a contest using Foursquare, the location-based social network. The first five people checking in at Barilla’s specified venues were rewarded with a pair of VIP vouchers to the grand finale of the promotion: Andrea Bocelli live in concert in Central Park. And to add a cause-related marketing angle, consumers were encouraged to upload photos to the “Share the Table Photo Wall” where every image brought a donation of $1 from Barilla to the hunger- relief program Feeding America (up to $80,000). The “Share the Table” website promised, “Every dollar raised will provide seven meals to those in need.”

Barilla partnered with food bloggers including “Feisty Foodie,” “John & Elana Talk About Food,” and “Veep Veep,” resulting in a number of posts mentioning Barilla’s Summer

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CHAPTER 6Case Study: Barilla’s “Summer of Italy”

of Italy. Brand ambassadors tweeted throughout the six-week promotion. Other sponsors of Casa Barilla included Fiat, LavAzza, Artemide, Kitch- enAid, San Benedetto, Food Bank for New York City, Feeding America, Cassina, Poltrona Frau, and Bolla (sharethetable.com).

The citywide promotion was designed to cul- minate in bringing consumers to Casa Barilla, a four-day celebration of Italian food and culture in a branded pavilion in Central Park running from September 13 to 16. Interactive cooking classes, food and culture workshops, and children’s activ- ities were offered. The Bocelli concert capped the event’s final evening, with Barilla as the exclu- sive food provider, of course (www.sharethetable. com). (Andrea Bocelli’s voice has provided the soundtrack for Barilla’s commercials for years; Cox, 2011). Rain, wind, and cold temperatures combined to make the outdoor concert uncom- fortable, always a risk of any outdoor promo- tional event.

The goal of Barilla’s Summer of Italy was to rein- force the Barilla brand’s equity through a celebra- tion of authentic food and culture, using ambas-

sadors in a one-to-one approach. Eight bloggers were selected as ambassadors based on their area of focus, audience reach, and regional proximity to the program. They were all provided with messaging and a brief program overview, and then encouraged to express their honest opinions in all of their posts (per FTC guidelines). Measurement of the brand ambassadors’ impact was based on media impressions and Twitter conversations. Bari- lla’s public relations firm tracked the content of their blog posts and which message points they touched on in each post. The firm also tracked the quality and quantity of the com- ments readers left on each post.

Barilla’s Summer of Italy Promotional Mix focused on contact with New Yorkers, blending Paid (sales promotion, experiential marketing, brand ambassadors, and guerilla market- ing) and Owned (company website and in-store marketing) channels with Earned (media coverage and buzz) and Shared (Facebook, Twitter, blogs, and other social media). No mass-media or one-to-one advertising channels were used.

Before the campaign, Barilla held a 28.1 percent share of the dry pasta market, according to data from Symphony IRI group. Marketing thought-leader Bryan Duffy, executive vice president for sales and marketing at Mktg Partners in New York (a firm specializing in experiential marketing), gave the campaign high marks for making an authentic emo- tional connection between Barilla and the lifestyle and culture of Italy, by providing good Italian food and music. Barilla is considering taking the campaign to the streets of other American cities in coming years (Newman, 2011).

Chef Edmondo Sarti from Academia Barilla demonstrates how to prepare an authentic Italian dish at Casa Barilla.

Getty Images Entertainment/Getty Images

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CHAPTER 6Case Study: Barilla’s “Summer of Italy”

Field Trip 6.9: Barilla’s Summer of Italy Online

The following websites contain additional information about Barilla’s Summer of Italy promotion.

What do you feel was the aim of this promotion? (For example—creating awareness, knowledge, lik- ing, preference, conviction, or purchase?) How did it strengthen the Barilla brand?

Website: http://www.sharethetable.com/summerofitaly.aspx

Facebook page: http://www.facebook.com/BarillaUS

Blog posts about Summer of Italy:

http://feistyfoodie.com/2011/08/01/barillas-spaghettata/

http://www.veepveep.com/2011/08/18/barilla-summer-of-italy-meal-for-a-meal/

http://www.johnandelana.com/blog/2011/9/14/casa-barilla-at-rumsey-playfield-in -central-park.html

Challenge Question

College students have always been an attractive target market to advertisers. Today, students are becoming part of the pitch as companies recruit advocates to buzz about their brands. In fall 2011 American Eagle clothing company sought volunteers to help students move into their dorms, reward- ing the volunteers with free t-shirts that read “A.E. Move-in Crew.” A New York Times article quoted a student saying, “When you know that the company is not just there to get your money, they’re actu- ally willing to help you as an individual, it makes you respect them more. I’m definitely going to give American Eagle a second thought when I go by next time” (Singer, 2011).

Did the company cross an ethical line in rewarding students for befriending others?

How does American Eagle’s campus marketing exemplify the concepts learned in this chapter?

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CHAPTER 6Post-Assessment

Post-Assessment

1. Which phrase BEST defines the term Promotion?

a. Influencing consumers’ purchase decisions with information and persuasion. b. Building good relations with products, ideas, or points of view. c. Stimulating desire for a generic product category through merchandising.

2. What is the overall organizational goal of including performance measurement techniques in promotions, such as pre-testing and post-testing a marketing campaign?

a. To gain insight into consumers’ beliefs and passions to reflect those values in brand promotions.

b. To justify investment and gain cross-functional organizational support. c. To gather information about the brand in an inexpensive and quick manner. d. To track performance once and change the promotional program once.

3. Which of the following is NOT a form of direct marketing?

a. Telephone sales b. Blog posts c. E-mail d. Postcards

4. Which of the following is NOT an aspect of the Promotions Mix that requires marketers’ decision-making?

a. Schedule b. Plan c. Budget d. Product Life Cycle stage

5. Which of the following is NOT a component of the AIDA formula for writing advertising copy?

a. Get Attention b. Motivate Action c. Create Desire d. Deliver Incentive

Answers 1. a. Influencing consumers’ purchase decisions with information and persuasion. The answer can be found in

Section 6.1.

2. b. To justify investment and gain cross-functional organizational support. The answer can be found in Section 6.1.

3. b. Blog posts. The answer can be found in Section 6.2.

4. d. Product Life Cycle stage. The answer can be found in Section 6.3.

5. d. Deliver Incentive. The answer can be found in Section 6.4.

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CHAPTER 6Critical Thinking Questions

Key Ideas to Remember

• Branding takes place through a collaboration of consumers and marketers. Con- sumers contribute to the brand narrative through social media conversations in which both positive and negative opinions are expressed. Marketers contribute positioning strategy expressed through promotional campaigns and measure- ment of brand performance, and join the conversation with consumers where they provide the feedback necessary to keep the brand narrative aligned with promotional objectives.

• The message channels in the Promotional Mix can be classified in terms of their ownership and control. Chief among the Paid, brand-controlled channels are advertising, direct marketing, and sales promotion. Owned, brand-controlled channels include company publications such as a website and blog, and per- sonal selling such as in-store and experiential marketing. Earned, stakeholder- controlled channels include media coverage, buzz/word of mouth, and review sites. Shared, stakeholder-controlled channels include social media platforms like Facebook, Twitter, and blogs.

• Plans, schedules, and budgets are three aspects of promotions requiring decisions as part of the Promotions Mix. With these decisions in place, a creative brief can be developed and the marketing creative team can do its work to fulfill promo- tional objectives.

• Marketing messages will support either a pull or push strategy; advertising tends to be used to pull while personal selling is more commonly used to push a mes- sage. Marketing messages usually follow the AIDA structure to move recipients toward a measurable action. The creative approach conveys the value proposi- tion identified as part of the promotional objective. Strategy, structure, and cre- ative approach are strategically planned to achieve engagement with the target market while supporting the brand narrative.

• Four issues affecting promotional decisions today include adoption of the IMC approach, more sophisticated use of consumer data, greater attention to social responsibility, and the need for a semi-global strategy that meaningfully inte- grates the brand’s narrative with the local culture when foreign markets will be approached.

Critical Thinking Questions

1. What is the difference between a brand narrative and a brand communication? 2. Choose two brands (products or services; for example, hotel chains) that you

have used repeatedly. Describe how each brand attracted you, what you associ- ate with the brand, and why you stick to it.

3. Explain how a review about a plumber posted on Angie’s List differs from a blog post about Barilla’s Summer of Italy on FeistyFoodie.com.

4. Demonstrate your understanding of the transactional communications process by writing a short script for a conversation between a seller and a buyer who is at the second stage of Buyer Readiness (Awareness).

5. You’ve been charged with creating a strategic Promotional Mix targeting 20-something males and females with the goal of increasing sales of high definition radio receivers. What would be your strategy for making message channel choices?

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CHAPTER 6

advertainment Term coined for advertis- ing that entertains, usually by relating a dramatic narrative or by engaging con- sumers in an interaction, such as a game.

advertising media Traditional paid vehicles by which promotional messages are communicated to the public, such as newspaper, radio, and television.

AIDA formula A structure that describes four states required to sell a product or service: Attention, Interest, Desire, and Action; the name is an acronym.

behavioral targeting Marketers’ record- ing of consumers’ online communication behaviors, in order to market to them based on those observations.

best available screen theory Consumers’ tendency in a media-convergent world to choose the best available screen for their location at the moment as they move through a day’s activities.

brand The combination of a unique design, sign, symbol, and/or words, strategically deployed to create an image that identifies a product, service, organiza- tion, or idea and differentiates it from its competitors.

brand ambassadors Individuals who serve as the face of their client company at promotional events.

brand narrative The ongoing dialogue connecting company and customer that encodes in story the values and experi- ences that compose the brand’s meaning.

buzz Anything that creates excitement or stimulus; a marketing technique that leverages consumers’ interest to generate marketing messages.

creative brief A document created by marketing planners and followed by cre- ative professionals to guide development of creative deliverables such as advertis- ing, websites, etc.

customer analytics The process by which customer data are used to inform key busi- ness decisions, influencing market seg- mentation and predictive analytics.

data mining Using sophisticated data search capabilities and statistical algo- rithms to discover patterns and correla- tions in large preexisting databases; a way to discover new meaning in existing data.

direct response advertising A form of marketing designed to solicit a direct response that is specific and quantifiable.

engagement The state of being attracted and interested; devoting mental resources to a task; in marketing usage, the degree and depth of consumer interaction with a marketer’s message.

Key Terms to Remember

6. Two campaigns mentioned in this chapter have as their objective strengthening a brand. Contrast the methodology used in Barilla’s Summer of Italy (see Case Study) promotion with American Eagle’s “Move-in Crew” (see Challenge Ques- tion) promotion.

7. The adult American population can be considered in generational cohorts that include Veterans, Baby Boomers, Gen Xers, and Millennials. Choose a cohort: Where do you think its members stand in the transition to Marketing 3.0 charac- teristics? Offer evidence and examples for your position.

Key Terms to Remember

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CHAPTER 6Key Terms to Remember

field of experience The attitudes, knowl- edge, perceptions, and values that indi- viduals or members of a group bring to a situation.

guerilla marketing Unconventional marketing intended to get maximum results from minimal resources by being unexpected or unconventional; frequently includes consumer interactivity. The term “Guerilla Marketing” is a registered trade- mark of author Jay Levinson who popu- larized it through his several “Guerilla” books.

image advertising A form of marketing designed to create generalized goodwill for a product, service, idea, or organiza- tion in the minds of consumers. This image aims to associate the advertised product and/or firm with certain lifestyles or values.

in-store marketing Marketing dollars spent inside a retail store in the form of store design, merchandising, visual dis- plays, or promotions.

Integrated Marketing Communications (IMC) An organizational focus on manag- ing customer relationships over time by linking all management initiatives related to brand communications so that audi- ences encounter a consistent message across all channels; increasingly seen as necessary to achieve desired results from promotional activity.

media convergence The process in which several media channels come together to operate synergistically; for example, reduc- ing the line between televisions, comput- ers, and mobile devices.

media coverage Information presented in mass media about a company by reporters; may result from public relations activity.

noise In communication theory, extrane- ous factors that distort or block a message as it is sent or received, such as back- ground sounds or printing errors.

nonpersonal selling Promotional tech- nique featuring communications through non-person-to-person channels.

personal selling Promotional technique featuring personal contact by mem- bers of a company’s sales force (which can be face-to-face or via technology) intended to make sales or build customer relationships.

POES model (Derived from “Paid, Owned, Earned, Shared”) A framework that assigns message channels to one of four quadrants based on ownership and control.

predictive analytics A variety of tech- niques from statistics, data mining, and game theory that analyze current and historical facts to make predictions about future events.

primary demand One possible objective of promotional communications, designed to stimulate desire for a general product category.

product placement An advertising tech- nique used to subtly promote products through appearances in film, television, or other media, or prominent display at consumer events.

promotion The function of informing, persuading, and influencing consumers’ purchase decisions through the use of message channels such as publicity and/or advertising; the advancement of a product, idea, or point of view through message channels.

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CHAPTER 6Key Terms to Remember

public relations Communication manage- ment that seeks to make use of publicity and other nonpaid forms of promotion to influence feelings, opinions, or beliefs held by buyers, prospects, or other stakeholders about the company, its products or ser- vices, and its activities.

selective demand One possible objective of promotional communications, designed to stimulate desire for a specific brand within a product category created through differentiation. Also called secondary demand.

sponsorships Cash and/or in-kind fee paid to a property (typically a celebrity) in return for endorsements and other exploit- able commercial potential associated with that property.

touchpoint The moment in which a con- sumer experiences an interaction with a brand, the quality of which will influence relationships, perceptions, and actions.

transactional communication model A model that sees communication as a nego- tiation of meaning in which two or more parties respond to their environment and each other.

word of mouth Recommendation by a sat- isfied customer to prospective customers of a good or service, considered one of the most effective forms of promotion.

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