A relationship where the client pays a monthly retainer fee to an agency for creative Chapter 14 One to Many to Many to Many Traditional and New Media AOR Agency of Record relationship services Promotion Integrated marketing communication IMC and evaluate coordinated measurable persuasive brand communication programs over time to targeted audiences Multichannel promotional strategy promotion and public relations activities with online buzz building activities The coordination of a marketer s communication efforts to influence attitudes or behavior A strategic business process that marketers use to plan develop execute A marketing communication strategy where they combine traditional advertising sales 3 Models of Marketing Communication I The One to Many Model Advertising Sales Promotion Public Relations II The One to One Model Database Marketing Direct Marketing Personal Selling III The Many to Many Model Buzz Building Social Media Communication model The process whereby meaning is transferred from a source to a receiver The process of translating an idea into a form of communication that will convey meaning The communication in physical form that goes from a sender to a receiver A communication vehicle through which a message is transmitted to a target audience The organization or individual that intercepts and interprets the message The process by which a receiver assigns meaning to the message E ncoding Source An organization or individual that sends a message Celebrity endorsements Jessica Simpson WW Message M edium Receiver Decoding Noise Feedback Promotion mix relations personal selling and direct marketing Anything that interferes with effective communication Receivers reactions to the message The major elements of marketer controlled communication including advertising sales promotion public Control Continuum Pros Cons 1 Advertising Chapter 14 One to Many to Many to Many Traditional and New Media The marketer has control over what the message will say when it will appear and who is likely to see it Provides incentives to retailers to support one s products Builds excitement for retailers and consumers Encourages immediate purchase and trial of new products Price oriented promotions cater to price sensitive consumers Promotion Sales Price oriented promotions cater to price sensitive consumers Relatively low cost Public Relations Personal Selling Direct Marketing Direct contact with the customer gives the salesperson the opportunity to be flexible and modify the sales message to coincide with the customer s needs The salesperson can get immediate feedback from the customer Targets specific groups of potential customers with different offers Marketers can easily measure the results Provides extensive product information and multiple offers within a single appeal Provides a way for a company to collect feedback about the effectiveness of its messages in an internal database Relates to television radio magazines and newspapers A Comparison of Elements of the Traditional Promotion Mix Nonpersonal communication from an identified sponsor using the mass media distinctive brand identity bond with customers and boost sales Mass communication Advertising Because of the high cost to produce and distribute it may not be an efficient means of communicating with some target audiences Short term emphasis on immediate sales rather than a focus on building brand loyalty The number of competing promotions may make it hard to break through the promotional clutter If marketers use too many price related sales promotion activities consumers perception of a fair price for the brand may be lowered Lack of control over the message that is eventually transmitted and no guarantee that the message will ever reach the target It is difficult to measure the effectiveness of PR efforts High cost per contact with customer Difficult to ensure consistency of message when it is delivered by many different company representatives Consumers may have a negative opinion of some types of direct marketing Costs more per contact than mass appeals Sales promotion Consumer sales promotion includes programs such as contests coupons or other incentives that marketers design to build interest in or encourage purchase of a product during a specified period intends to stimulate immediate action purchase rather than build long term loyalty Public relations Public relations communication activities that seek to create and maintain a positive image of an firm and its products include efforts to present negative company news in the most positive way so that this information will have less damaging consequences try to influence feelings opinions or beliefs for the long term Personal selling Direct interaction between a company representative and a customer that can occur in person by phone or even over an interactive computer link Direct marketing Efforts to gain a direct response from individual consumers Groundswell traditional institutions like corporations A social trend in which people use technology to get the things they need from each other rather than from The many to many communication model relies on consumers talking to one another Buzz marketing is key Buzz word of mouth communication that customers view as authentic Technology has magnifies the importance of buzz viral marketing along to other consumers brand ambassadors other consumers for a brand they care a great deal about social media or brand evangelists Marketing activities that aim to increase brand awareness or sales by consumers passing a message Loyal customers of a brand recruited to communicate and be salespeople with Internet based platforms that allow users to create their own content and share it with others who access 2 Sites used to connect people with other similar people Facebook Twitter Online highly engaging digital environments where avatars live and interact with other avatars in real time Chapter 14 One to Many to Many to Many Traditional and New Media these sites social networks virtual worlds Avatars Graphic representations of users of virtual worlds virtual goods Digital products bought and sold in virtual worlds that don t exist in the real world product review sites Social media sites that enable people to post stories about their experiences with products and services geospatial platforms Digital applications that integrate sophisticated GPS technology to enable users to alert friends of their exact whereabouts via their mobile