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1.1 ETHICAL DIMENSION 12
Ethical Perspective
1. Advertisers: Should advertisers hire bloggers to post positive product experiences? Should
they require bloggers to indicate whether or not they have been paid to post their review?
2. Consumers: Should bloggers post whether or not an advertiser pays them? Does it make any
difference whether bloggers are being paid to post reviews to “neutral” product websites and
blogs?
1.2 KEY TERMS
promotion Various forms of communication to inform, persuade, or remind.
promotion mix The elements of promotion, including advertising, sales promotion, public
relations (PR), personal selling, direct marketing, and interactive marketing.
advertising Paid form of relatively less personal marketing communications often through a
mass medium to one or more target markets.
sales promotion An inducement for an end-user consumer to buy a product or for a salesperson
or someone else in the channel to sell it.
public relations (PR) Systematic approach to influencing attitudes, opinions, and behaviors of
customers and others.
personal selling A two-way communication process between salesperson and buyer with the
goal of securing, building, and maintaining long-term relationships with profitable customers.
direct and interactive marketing Personal communication with a customer by means other than
a salesperson.
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promotion mix strategies Decisions about which combination of elements in the promotion mix
is likely to best communicate the offering to the marketplace and achieve an acceptable ROI for
the marketer.
promotional campaign Promotional expenditures to a particular creative execution aimed at a
particular product or product line during a specified time period.
integrated marketing communications (IMC) A strategic approach to communicating the
brand and company message to targeted customers in ways that are clear, concise, and consistent
and yet are customizable as needed to maximize the impact on a particular audience.
pull strategy Promotional and distribution strategy in which the focus is on stimulating demand
for an offering directly from the end user.
push strategy Promotional and distribution strategy in which the focus is on stimulating demand
within the channel of distribution.
internal marketing The treating of employees as customers and developing systems and benefi
ts that satisfy their needs to promote internal service quality.
communication The process of exchanging information and conveying meaning from one party
to another.
sender The source of the message in communication.
corporate identity Consumers’ perceptions of a corporation that influences their attitudes and
responses toward products or services offered by it.
encoding process The process in communication in which the sender translates an idea to be
communicated into a symbolic message in preparation for transmittal to a receiver.
message transmission Placing a communication into some channel or medium so that it can
make its way to the intended receiver.
channel or medium The conduit by which an encoded message travels.
decoding process When a receiver interprets the meaning of the message’s symbols as encoded
by the sender.
selective perception Different meanings assigned to the same message by different receivers that
are based on an array of individual differences.
receiver The individual who is the target of the communication.
feedback loop Two-way communication in which a receiver can communicate reactions back to
the sender.
noise The distortion or interference that can occur at any stage of a communication process.
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AIDA model A model designed to illustrate the hierarchy of effects in the context of customer
response to marketing communications. It states that the effects build in this order: Attention (or
Awareness), Interest, Desire, and Action.
puffery Relatively minor embellishments of product claims to bolster the persuasive message.
promotional appeal The connection an offering establishes with customers includes rational
appeals, emotional appeals, and moral appeals.
rational appeal Promotional appeal that centers on the benefits an offering can provide to a
customer.
emotional appeal Promotional appeal that plays on human nature using a variety of human
emotions and aspirations in developing promotional messages.
moral appeal Promotional appeal that strikes a chord with a target customer’s sense of right and
wrong.
objective-and-task method Method of promotional budgeting that takes an investment approach
in that goals are set for the upcoming year and then promotional dollars are budgeted to support
the achievement of those goals.
percent-of-sales method Method of promotional budgeting that allocates funding for
promotional activities to certain products as a function of their forecasted sales revenues.
comparative-parity method Method of promotional budgeting that focuses on comparing
promotion expenditures across all key competitors in the market to determine a budget number.
all-you-can-afford method Method of promotional budgeting that sets the promotional budget
as whatever funds are left over after everything else that’s considered a necessity is paid for.
interactive marketing An Internet-driven relationship between companies, their brands, and
customers. Interactive marketing enables customers to control information flow and encourages
customer-company interaction as well as a higher level of customer service.
microsites More focused sites that deal with specific topics such as new product introductions or
targeted products within a large product portfolio.
banner ads Boxes containing graphics and text and have a hyperlink embedded in them.
search-related ads Advertisers pay based on the position of the ad on the search results page as
well as the number of click-throughs.
interstitials More graphic, visually interesting ads that move across the web page.
sponsorships Enable companies to subsidize some section of web page on the site.
M-Commerce Sales generated from a mobile device
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geo-location marketing The use of geographic data to drive marketing messaging and other
marketing decisions.
viral marketing A “marketing phenomenon that facilitates and encourages people to pass along
a marketing message.
1.3 APPLICATION QUESTIONS
1 Consider the concept of integrated marketing communications (IMC). Select any company
you like and do some investigating about their use of IMC in developing and executing their
promotional strategies. Look for evidence through their media and messages.
a. What evidence leads you to conclude they are or are not successfully practicing
an IMC approach? Be specific and connect the evidence to the discussion of IMC in the
chapter.
b. Is there evidence that the firm practices internal marketing? If so, please share
what you found that leads you to this conclusion. If not, speculate on how internal
marketing would be of value to the organization.
c. For this or any firm, what are the major advantages of taking an IMC approach?
What are the downsides of not practicing IMC?
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3. Think of a situation you’ve experienced in which some communication process you were
involved in did not go as well as it might have. Any kind of communication will work for the
example – it doesn’t have to be marketing communications. Using the Communication
Process Model (Exhibit 12.6) and accompanying discussion as a guide, systematically retrace
the steps of that communication experience through the elements of the model and identify
(a) where the problems occurred and (b) what could have been done differently at each
problem step to make the communication experience better.
4. Consider a major purchase you have made recently. Review the AIDA model (Exhibit 12.7)
and accompanying discussion.
a. Think back on the process that led up to your purchase and reconstruct the types
of promotion that you experienced during each stage of the AIDA model. Which of the
promotional forms was most effective in your situation, and why?
b. As you reconstruct this purchase experience and the promotional messages you
received during it, what other promotion mix elements that you did not experience at the
time might have been effective in convincing you to make the purchase? At what stage
of the AIDA model would they have been helpful, and in what ways do you believe they
might have impacted your decision process?
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5. The chapter discusses the role of the marketing manager in promotional strategy (Exhibit
12.9 and accompanying discussion). The trend today in both large and small firms is for
much of the promotion function to be outsourced.
a. Comment on this outsourcing trend. What are the major reasons for the trend?
What are the pros and cons? What is your personal view about outsourcing all or part of
promotion?
b. Assume now that you are working as a marketing manager for a firm that
outsources promotion to a creative agency. In what ways does this arrangement impact
your job? In particular, concentrate on how it impacts your marketing planning (being
mindful that promotion planning is a key element). How would you interact with the
agency as a manager representing your firm (assume you have responsibility for the
agency relationship with your company)? That is, what are the key things you should do
to ensure a productive relationship?
6. You are the marketing manager for the Toyota Highlander SUV and have been tasked with
creating an effective social media strategy, review the discussion about Interactive Marketing
and consider the following:
a. Develop a social media strategy targeted at Toyota Highlander buyers
incorporating all elements of interactive media.
b. Identify specific social media you would use in the strategy and develop a social
media campaign.
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MANAGEMENT DECISION CASE: Water is Life: Attracting Attention to a Cause through
Guerilla Tactics
Questions for Consideration:
1 What elements of the promotion mix do you think guerrilla marketing relies on the most to
be successful?
7. Doritos used a guerrilla marketing campaign in which product images were projected on the
sides of buildings while inviting viewers to text message their flavor preference. How do
such tactics fit within an overall integrated marketing communications approach to the
brand’s target audience? What other IMC approaches might best complement the Doritos
strategy
8. According to the AIDA model, buyers pass through different decision processes on their way
to making a decision. Assuming the cups in the dispenser contain a message to visit the
organization’s website, what are the promotional steps needed to take individuals through the
AIDA model to the point where people are willing to donate money or their time to the cause
promoted by Water is Life.
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1.4 SUGGESTED VIDEO
Las Vegas: Creating a Brand with IMC (10:08 minutes)
Description: Integrating different types of Marketing tactics to expose Las Vegas brand image.
Key players discuss their Promotional, Advertising, and PR strategies.
1. How should the Las Vegas Convention and Visitor Authority try to measure the success of its
Integrated Marketing Communications strategy?
2. Which element of the promotion mix do you think will have generate the largest number of
visitors to Las Vegas?
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