978-1259637155 Chapter 13

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LEARNING OBJECTIVES

LO 13-2 Explain the hierarchy of effects (AIDA) model and its usefulness to promotional

strategy.

LO 13-4 Identify the key types of social media and their benefits to marketers in

communicating value to customers.

CHAPTER OUTLINE

I. ESSENTIALS OF PROMOTION

A. The Marketing Manager’s Role in Promotional

Strategy

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B. Push and Pull Strategies

C. Internal Marketing

II. HIERARCHY OF EFFECTS (AIDA) MODEL

A. Attention

B. Interest

C. Desire

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D. Action

III. THE ROLE OF DIGITAL MARKETING IN

COMMUNICATING VALUE

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A. Digital Advertising

i. Display Ads

ii. Search Ads

iii. Social Network Ads

iv. Native Ads

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B. E-Mail

C. Organizational Website

i. Dimensions of Website Interface

a. Context

b. Content

c. Community

d. Customization

e. Communication

f. Connection

g. Commerce

D. Microsites

E. Blogs

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F. Search Engine Optimization (SEO)

G. Mobile Marketing

i. Ads and Website Experiences Designed for

Mobile Devices

ii. Location-Based Targeting

iii. Text Messaging

iv. Branded Mobile Apps and In-App Based Ads

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IV. MANAGING SOCIAL MEDIA MARKETING: NOW

THE CUSTOMER IS INVOLVED IN THE DIALOGUE

A. Types of Social Media

i. Social Networks

a. Facebook

b. Twitter

c. Snapchat

d. LinkedIn

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ii. Viral Marketing

iii. Product and Service Review Sites

iv. Online Brand Communities

B. Assessing the Value of Social Media

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V. SUMMARY

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.

digital and social media marketing Promotion through the use of digital technologies such as

desktops, laptops, tablets, and smartphones that does not involve a salesperson, allowing

customers to connect directly with a company. Also known as 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.

promotion mix strategies Decisions about which combination of elements in the promotion mix

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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

control over.

earned media Digital marketing situation in which either a customer or a commercial entity

(such as a news media organization) chooses to act as a marketing communication channel for

the dissemination of information associated with the marketer’s organization at no cost.

digital advertising The creation and execution of an advertisement via any form of digital

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landing page A distinct type of page on an organization’s website designed for the sole purpose

of getting a customer to take an action that increases the expected value of the customer to the

geolocation marketing The use of geographic data to drive marketing messaging and other

marketing decisions.

branded mobile apps Mobil apps that display a brand’s name and logo prominently throughout

the various screens and features within the app.

in-app ads Ads displayed within apps created and controlled by companies other than the

advertiser (e.g., mobile game apps, social media apps, and nonbranded productivity apps).

social networks Groups of people connected through technology who join together based on

friendships, mutual interest, or some other characteristics.

viral marketing A marketing phenomenon that facilitates and encourages people to pass along a

marketing message.

APPLICATION QUESTIONS

1. This chapter discusses the role of the marketing manager in promotional strategy (Exhibit

13.3 and accompanying discussion). The trend today in both large and small firms is for

much of the promotion function to be outsourced.

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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?

the agency.

b. Assume you are 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 of marketing planning). 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?

2. Consider a major purchase you have made recently. Review the AIDA model (Exhibits 13.7

and 13.8) 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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3. Select a B2C company that you are familiar with, along with a product sold by that company.

Identify a particular consumer target market. Imagine you have been tasked with developing

a paid media strategy for the related product to that target.

1. Pick two of the digital ad options listed in the chapter. Explain the concept for each of

the two digital ads (they can be the same or different) and identify the content (text,

imagery, video, and other elements) of each digital ad and explain why the related

concept and content will be an effective match for communicating to your selected

consumer segment. In doing so, be sure to explain how you would use the capabilities

associated with each chosen ad option to effectively target the associated consumer

segment.

Some students will need a definition of an “ad concept”. Sometimes referred to as

“the big idea” Ad executive John O’Toole describes it as:

2. For each of the two selected digital ad options, specify the pricing model that you

believe is most appropriate for the type of ad (that is, cost-per-impression or cost-per-

click). If the pricing models discussed in the chapter do not seem to be appropriate for

the ad option selected, then explain why not and propose an alternative pricing model

(that is, what do you suggest is more appropriate in terms of compensation between

the advertiser and the communication channel).

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4. Consider the concept of a landing page and its use in assisting the completion of specific

desirable actions as well as its relationship with other forms of digital marketing

communication. Identify one landing page associated with a display ad as well as one landing

page associated with a search ad where the user is required to submit some information on

the landing page. In your response, make sure to identify the company that each landing page

is associated with.

a. What makes the ad tied to each landing page effective or ineffective in motivating an

individual to click on it?

b. Do the ad and the landing page seem well integrated together? If yes, what visual,

textual, and other elements support the connection between the ad and the related

landing page?

c. Put yourself in the shoes of someone who has a legitimate need for the products or

services offered by the organization responsible for each ad and associated landing

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page. Does the landing page do an effective job of motivating the user to fill out the

related form? Are there any particular aspects of the page that serve as potential

motivators or detractors for completing the form?

5. Select a specific branded product associated with a company and assume you are the

marketing manager in charge of mobile marketing strategy for the product.

a. Come up with a simple concept for a branded mobile app and explain how the

specific purpose of the app (or functionality provided by it) fits thematically with

your branded product and how it will help create value for customers.

b. Identify a specific mobile app or game (not associated with the brand) that would be a

good fit for the distribution of in-app ads. Explain what characteristics of the app

make it a good fit based on what is known (or assumed) about your branded product’s

target market.

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6. You are the marketing manager for the Tesla Model 3 and have been tasked with developing

an effective social media strategy. Review the discussion of social media and consider the

following:

a. Develop a concept for an online brand community for Tesla Model 3 enthusiasts.

Outline the specific features that the brand community will have as well as the value

of the specific features to the community members and to Tesla.

Brand communities allow customers and prospects to engage in meaningful

b. Identify specific social networking platforms that you would use in the development

of a social media strategy for Tesla, explain the reasons why you would use each of

the selected platforms, identify the specific ways that you would use each one, and

list the specific outcomes that you would use to determine the effectiveness of your

overall social media strategy across those platforms.

MANAGEMENT DECISION CASE:

How Oreo Uses Social Media to Market Milk’s Favorite Cookie

This case should help convince students that virtually any product (certainly any consumer

product) could benefit from the use of social media tools. Most of the largest companies have

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Questions for Consideration

1. How should Oreo’s success in social engagement be evaluated? What metrics would be most

useful? Consider both the usage-specific metrics that a social media provider might supply

as well as outcome-based measures. What are the pros and cons of relying on one of these

types of measures vs. the other?

Usage-specific metrics may be provided by the social media tools, by consultants or ad

2. While growing their social media presence, Oreo continues to advertise in traditional media.

Why is it important to ensure that messages are consistent among platforms? What specific

tactics could be used to ensure this consistency?

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3. Although most of Oreo’s social media efforts are directed towards adults, many Oreo lovers

are children. To what degree should Oreo also have a focus on marketing directly to

children? What are the risks and ethical considerations of such an approach? Are there

approaches to marketing Oreos to children that would stand up to ethical scrutiny? (Hint:

Among other issues, consider the trend toward childhood obesity.)

Marketing to children (for any product) must be done with care for both ethical and legal

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