Compare the views of Don Shultz (1996) and Geoff Ramsey from Emarketer (2006) ?on marketing communications integration and identify similarities and
Discussion 1 Questions Based on Module 1 Readings
1. Compare the views of Don Shultz (1996) and Geoff Ramsey from Emarketer (2006) on marketing communications integration and identify similarities and differences of MarCom integration approaches discussed. Illustrate your view with real-world examples by brands (e.g. show a brand that has evolved its MarCom integration strategy and support your arguments with links to their campaigns). 2. Analyze the Marketing Communications mix (mailed coupons, emails, social media, TV advertising, etc.) utilized by Birchbox, a cosmetics subscription service, and discuss its weaknesses and strengths. Based on your analysis, propose an innovative marketing communications campaign for similar subscription services (e.g. MeUndies, Blue Apron, etc.)
Discussion 1 Questions
Based on Module 1 Readings
1. Compare the views of Don Shultz (1996) and Geoff Ramsey from Emarketer (2006)
on marketing communications integration and identify similarities and
differences of MarCom integration approaches discussed. Illustrate your view with
real-world examples by brands (e.g. show a brand that has evolved its MarCom
integration strategy and support your arguments with links to their campaigns).
2. Analyze the Marketing Communications mix (mailed coupons, emails, social media,
TV advertising, etc.) utilized by Birchbox, a cosmetics subscription service, and discuss
its weaknesses and strengths. Based on your analysis, propose an innovative
marketing communications campaign for similar subscription services (e.g. MeUndies,
Blue Apron, etc.).
,
eMarketer's Geoff Ramsey on Marketing's Adaptation to the Digital Age May 4, 2016
Geoff Ramsey Chief Innovation Officer eMarketer
Consumers' media choices have exploded, making marketers' jobs much more difficult, and the changes are only going to accelerate, according to eMarketer cofounder Geoff Ramsey.
Ramsey, who will be speaking at eMarketer's upcoming halfday event, Attention! London on June 7 (http://attentionlondon.emarketer.com/), spoke with Sean Creamer about the evolving challenge of capturing consumers' attention in the fragmenting media world.
eMarketer: Can you describe the marketing scene back when you first entered the space?
Geoff Ramsey: I spent 17 years working for various New York ad agencies starting in the ’80s. Back then there were way fewer choices. You had maybe 100 channels on television. You had X many print publications, but how many were really relevant to your target audience? You had whatever local radio stations there were, and lots of billboard choices. But the internet didn’t exist. And so it was a lot simpler to take a broad demographic group like men 25 to 54, and through a few buys on television, supplemented with some print or radio, you could reach 50% or more of your target audience.
eMarketer: How would you characterize the changes the media world has gone through?
Ramsey: In the fragmented world that we live in now, with the internet and mobile, video, social and digital, good luck trying to reach 50% of your target with any one channel or subchannel. Even with mobile, it’s not a single channel because 80% of the time spent on the mobile channel is with apps, and there are hardly any ads on apps. The other 20% is spent on the mobile web.
“If you look at mobile app time spent … 70% to 80% of the time spent on mobile apps goes to like five apps.” Plus, all the research suggests that if you look at mobile app time spent, depending on which research source you look at, 70% to 80% of the time spent on mobile apps goes to like five apps. Unless you’re Facebook, Pandora or Google Maps, you’re going to have a really hard time as a marketer getting, first of all, somebody to download your app, and second, to actually go back and use it again and again.
It’s hard to get enough scale, given the number of choices with all the media fragmentation, to pull together a big enough audience across not only the web but offline channels as well.
eMarketer: How have marketers evolved in this fragmented landscape?
Ramsey: Marketers need to be both specialists who understand specific devices, usage situations and channels, whether it be search, email, desktop, etc., and generalists who can pull together all of these different channels and devices to be able to engage with consumers in the right context with the right message at the right time. That is hard to do across all of these moving pieces. It’s why marketing attribution is so hard and why getting the scale needed when targeting certain individuals is difficult.
eMarketer: Considering this need for fluidity between channels, how has this affected media buying over time?
Ramsey: What we are seeing in terms of attention is a massive shift from buying media based on some broad, predefined demographic, to audience buying where we’re being more agnostic about where that likely target happens to be across all of these different channels and devices, and finding that audience wherever they happen to be. This is one reason why media buying is only going to get more fragmented and more complicated.
“We’re moving from an app world to a bot world where … bots will become our own personal digital assistants.” We’re moving from an app world to a bot world where some people are saying that we’re going to be largely interacting or engaging with brands through messaging services that will increasingly get smarter and smarter about who we are and will become our own personal digital assistants. If you combine that with the innovations we’re seeing in artificial intelligence and voice recognition, in a shorter amount of time than most people think—I’m talking about two or maybe three years out—we’re going to be seeing some massive shifts in how you need to reach people and engage with them and get them to buy your stuff.
eMarketer: When did you first realize that a brand’s audience was no longer a silent player in the marketing ecosystem?
Ramsey: It has been such a slow and subtle transformation, beginning with the commercialization of the internet and then the rapid acceleration of twoway communication that was enabled by the mobile phone that goes wherever you are.
Television began the push mentality—you have this broad demographic out there and you push your message out to as many people as you can. But there is no feedback channel for them to have any say or to interact with your brand other than if they happen to make a purchase.
What the internet, mobile, bots and all of these other things do is actually make it not just a twoway conversation—they actually tilt the power significantly toward the consumer. Digital channels enable them to seamlessly jump from one channel or medium to another. In addition to ad blocking, they can simply choose to tune you out. One example of that is banner blindness. Another example is: With mobile, we can keep scrolling.
“Attention can only be gained by doing two things extraordinarily well. One is you have to manage your data well.” eMarketer: How can marketers work to grab attention in a fragmented arena?
Ramsey: To me, attention can only be gained by doing two things extraordinarily well. One is you have to manage your data well. That means going back to all of the different devices and channels and somehow rounding up all of the data to follow the customer’s journey throughout the purchase cycle, from before they’ve even heard of you—awareness—right through to interest, consideration and purchase, and then afterpurchase loyalty, reinforcing brand loyalty, etc. The only way you’re going to be able to do that in this day and age is to effectively manage your data.
eMarketer: Seeing as data for these functions exists across various data repositories, how can marketers round up this data?
Ramsey: The answer to that brings us to No. 2, which is breaking down the silos in your organization, which in turn means two things. The first is technologically integrating your marketing stack, as many of our reports suggest. And on the human side, from an HR perspective, breaking down the human silos that we have in our hierarchies where, for example, I am the head of search marketing, and somebody else is the head of video, and a third person is the social media monitoring person.
Somehow we have to integrate our people and integrate our data. That way we can effectively follow consumers throughout that journey and then serve up appropriate messages in the right context on whatever screen they’re on, to deliver the right message at the right time that’s appropriate for that person’s journey on that path to consumption.
For more insights from Geoff Ramsey, join eMarketer at our upcoming halfday event (http://attentionlondon.emarketer.com/), Attention! London on June 7, where he will be presenting.
©2017 eMarketer Inc. All rights reserved. www.emarketer.com
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LEARNING OBJECTIVES
To understand the marketing process and the role of advertising and promotion in an organization’s integrated marketing program.
To understand the concept of target marketing in an integrated marketing communications program.
To recognize the role of market segmentation and its use in an integrated marketing communications program.
To understand the use of positioning and repositioning strategies.
To know the various decision areas under each element of the marketing mix and how they influence and interact with advertising and promotional strategy.
LO1
LO2
LO3
LO4
LO5
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One would think that a cohort that consists of 80 million persons with a spending power of $172 billion would be the ideal target mar- ket for American companies. Yet the millennials generation—those born between 1982 and 2000 and also known as gen Y—is proving to be one of the most difficult of any segment for market- ers to reach in decades. Marketers have referred to this group as “the cheapest ever,” “stingy,” and/ or “disinterested”—among other not so endearing terms—when describing their buying behaviors. It seems they just don’t want to buy. At the same time, the cohort is just too large in size and has too much buying power to ignore: They are expected to spend over $10 trillion in their lifetimes. As a result, a number of companies, rather than ignoring them, are attempting to better understand them in an attempt to develop marketing programs that might attract their interest.
Unfortunately, millennials are not that easily understood. Maybe they don’t buy because much of their life has been spent in a bad economy. Jobs have been hard to come by, salaries are not increasing, and housing is expensive. As a result, many (even after graduating from college) live at home with their parents, take mass transit, carpool, or walk to work and don’t have a lot of dispos- able income. Perhaps they suffer from information overload, as almost all of them are socially con- nected, the vast majority multitask frequently, and they are the most educated, mobile, and tech- savvy generation in history. Or maybe what they are interested in purchasing is different from previous generations—travel spending has increased over recent years, while new car purchases have been less than expected. Many would prefer to pay for enhanced cell phone services rather than make a car payment. There is no doubt that their media habits are more complex, making it easier to reach them but harder to get their attention. Or maybe
the media contribute to their consumer behaviors by making it easier to communicate with others, sharing many things such as product evaluations in their discussions.
Since World War II, the U.S. economy has been driven by automobile and home sales. Now it seems that millennials are not interested in either—at least when it comes to buying. Rather, they have become a “sharing economy” in which everything from clothing to homes to automobiles is shared rather than purchased. Companies like car2go and Zipcar—the world’s largest car-sharing company with over 700,000 members—are grow- ing at a rapid pace. So fast, in fact, that Avis (the car rental conglomerate) purchased Zipcar for $500 million in 2013. Also expanding is Airbnb, a place for travelers to share bedrooms and other household accommodations, and there has been a proliferation of websites for selling one’s no longer used clothing.
One company trying to understand millennials is General Motors (GM). GM’s research has shown that new vehicle purchases in the 21- to 34-year- old age group are down 35 percent from 1985. The percentage of teens and twenty-somethings with driver’s licenses has also decreased. While some of this can be attributed to the economy, all of it cannot. Because of their high connectivity and educational status (higher-educated persons tend to have greater buying power) GM believes that millennials still provide strong market poten- tial, but automakers just haven’t figured them out yet. Rather than impose the values of the older generations, GM is trying to adapt by reaching them on their own terms. Chevrolet has partnered with RelayRides, a company that allows members to rent out their vehicles to other users. GM has also introduced a number of new “concept cars” designed specifically for millennials by emphasiz- ing higher gas mileage and high-tech features,
The Role of IMC in the Marketing Process 2
REACHING MILLENNIALS—A TRUE MARKETING CHALLENGE
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42 Chapter 2 THE ROLE OF IMC IN THE MARKETING PROCESS
while downplaying horsepower and torque attri- butes. The key to capturing millennials according to 31-year-old John McFarland—GM’s “youth emis- sary,” is to “give them exactly what they want and nothing more.” Dodge is trying exactly that with its new Dodge Dart. After poor introductory sales, Dodge has established an online promotion that “combines crowdsourcing and pizzazz with mil- lennial appeal” in which one can register to buy a Dart and have friends sponsor the components they want in the car.
Another seeking to do business with gen Y is Wawanesa, an insurance company that has been around since 1896 but is far less known than com- petitors like State Farm, Allstate, and GEICO. Wawanesa recently discovered that millennials don’t want to take the time to complete insurance forms the traditional way—on paper. (Allstate apparently found this out earlier, which led to the founding of E surance.) To respond to this threat, Wawanesa increased its web presence, offering online quotes and allowing customers to pay bills and even file claims online. In addition, the company increased its marketing efforts targeted to this cohort. GEICO now advertises a mobile app to allow access to one’s insurance account.
Offering a strong online presence is not the only strategy that must be undertaken to reach millennials, however. As noted by Erin Mulligan Nelson in Advertising Age magazine, if companies think all they have to do to reach this cohort is to employ social media, they are going to miss the mark. Nelson contends that to reach millen- nials, marketers must employ media that provide
content about the brand—blogs, websites, and applications—even strangers providing testimoni- als. Millenials want to be informed, and want to be heard, often valuing their mobile phones over other tangible good items. If successful, compa- nies will also find them to be highly loyal, and willing to tell others of their product and service experiences. Emma Bazilian, reporting on a study of 1,000 consumers between the ages of 18 and 34, agrees that social media may be the best way to reach millennials, but also believes that traditional media are still important. The study conducted by MPA and GfK MRI found that while Facebook is the most used social site, 93 percent of those surveyed said they read magazines and that contests and coupons are also a big influence on their purchase decisions, as is word of mouth—particularly from their friends.
So while millennials may be different, maybe the ways in which we reach them may not be as complicated as it seems to be. Only time will tell.
Sources: Dale Buss, “Dodge Dart Lowers Barrier to Entry for Millennials with Online Registry,” www.BrandChannel. com , January 21, 2013; Andrew Martin, “Car Sharing Catches on as Zipcar Sells to Avis,” www.nytimes.com , January 2, 2013, pp. 1–5; Sheila Shayon, “Campbell’s Go Soup Targets Millennials, Still ‘Mmm Mmm Good,’” www.brandchannel. com , August 29, 2012; Erin Mulligan Nelson, “Millennials Want to Party with Your Brand but on Their Own Terms,” www.advertisingage.com , August 2, 2012; Emma Bazilian, “Study: Millennials Engage with Magazines via Social Media,” www.adweek.com , August 23, 2012, p. 1; Jordan Weissmann, “How Do You Sell a Car to a Millennial?” www. theatlantic.com , April 4, 2012, pp. 1–10.
Marketers know that to be successful they most understand their buyers and
potential buyers and develop specific strategies to best reach them. These include
the identification of market opportunities, market segmentation, target marketing and
positioning, and marketing program development. As can be seen in the lead-in to
this chapter, this is often a challenging task.
In this chapter, we take a closer look at how marketing strategies influence the
role of promotion and how promotional decisions must be coordinated with other
areas of the marketing mix. In turn, all elements of the marketing mix must be
consistent in a strategic plan that results in an integrated marketing communications
program. We use the model in Figure 2–1 as a framework for analyzing how promo-
tion fits into an organization’s marketing strategy and programs.
This model consists of four major components: the organization’s marketing strat-
egy and analysis, the target marketing process, the marketing planning program
development (which includes the promotional mix), and the target market. As the
model shows, the marketing process begins with the development of a marketing
strategy and analysis in which the company decides the product or service areas and
particular markets where it wants to compete. The company must then coordinate
the various elements of the marketing mix into a cohesive marketing program that
will reach the target market effectively. Note that a firm’s promotion program is
directed not only to the final buyer but also to the channel or “trade” members that
distribute its products to the ultimate consumer. These channel members must be
YTC 02–01
Marketing to Millennials youtube.com/10ebelch
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Chapter 2 THE ROLE OF IMC IN THE MARKETING PROCESS 43
convinced there is a demand for the company’s products so they will carry them and
will aggressively merchandise and promote them to consumers. Promotions play an
important role in the marketing program for building and maintaining demand not
only among final consumers but among the trade as well.
As noted in Chapter 1, all elements of the marketing mix—price, product, distri-
bution, and promotions—must be integrated to provide consistency and maximum
communications impact. Development of a marketing plan is instrumental in achiev-
ing this goal.
As Figure 2–1 shows, development of a marketing program requires an in-depth
analysis of the market. This analysis may make extensive use of marketing research
as an input into the planning process. This input, in turn, provides the basis for the
development of marketing strategies in regard to product, pricing, distribution, and
promotion decisions. Each of these steps requires a detailed analysis, since this plan
serves as the road map to follow in achieving marketing goals. Once the detailed
market analysis has been completed and marketing objectives have been established,
each element in the marketing mix must contribute to a comprehensive integrated
marketing program. Of course, the promotional program element (the focus of this
text) must be combined with all other program elements in such a way as to achieve
maximum impact.
MARKETING STRATEGY AND ANALYSIS
Any organization that wants to exchange its products or services in the marketplace
successfully should have a strategic marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organization’s overall
corporate strategy and serves as a guide for specific marketing programs and policies.
LO 02-1
FIGURE 2–1
Marketing and Promotions Process Model
Marketing Strategy and
Analysis Target Marketing
Process Marketing Planning
Program Development Target Market
Promotion to trade
Purchase
Promotion to final buyer
Opportunity analysis
Identifying markets
Market segmentation
Selecting a target market
Positioning through
marketing strategies
Competitive analysis
Target marketing
Product decisions
Pricing decisions
Channel-of- distribution decisions
Promotional decisions • Advertising • Direct marketing • Interactive marketing • Sales promotion • Publicity and public relations • Personal selling
Ultimate consumer • Consumers • Businesses
Resellers
Digital/ interactive
C H
A P
T E
R 2
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44 Chapter 2 THE ROLE OF IMC IN THE MARKETING PROCESS
As we noted earlier, marketing strategy is based on a situation analysis—a detailed
assessment of the current marketing conditions facing the company, its product lines,
or its individual brands. From this situation analysis, a firm develops an understand-
ing of the market and the various opportunities it offers, the competition, and the
market segments or target markets the company wishes to pursue. We examine each step of the marketing strategy and planning in this chapter.
Opportunity Analysis A careful analysis of the marketplace should lead to alternative market opportuni-
ties for existing product lines in current or new markets, new products for current
markets, or new products for new markets. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs
and opportunities are not being satisfied, and where it can compete effectively. The
Manischewitz company—you may have heard the ad slogan “Man-O-Manischewitz!
What a wine!”—a marketer of kosher foods, has revived its decades-old slogan to
take advantage of a new marketing opportunity. Based on research that showed
that four out of five buyers of kosher foods are not traditional Jewish consumers,
Manischewitz has increased its marketing efforts in an attempt to capture more
of the mainstream market. Knowing that there has been an increase in interest in
ethnic foods and health consciousness and that, as a result of the recession, more
consumers are eating meals at home, the company hopes to reach more consum-
ers ( Exhibit 2–1 ). The company’s new IMC program includes a multimillion-dollar
advertising budget, web programs, in-store promotions, a “Cook Off,” and public
relations activities designed to promote its kosher food line. 1
A company usually identifies market opportunities by carefully examining the
marketplace and noting demand trends and competition in various market segments.
A market can rarely be viewed as one large homogeneous group of customers;
rather, it consists of many heterogeneous groups, or segments. In recent years, many
companies have recognized the importance of tailoring their marketing to meet the
needs and demand trends of different market segments.
For example, different market segments in the per-
sonal computer (PC) industry include the home, govern-
ment, education, science, and business markets. These
segments can be even further divided. The business
market consists of both small companies and large cor-
porations; the education market can range from elemen-
tary schools to colleges and universities. A company
that is marketing its products in the auto industry must
decide in which particular market segment or segments
it wishes to compete. This decision depends on the
amount and nature of competition the brand will face
in a particular market. Many auto companies are now
competing in the hybrid car market, offering a variety
of models ( Exhibit 2–2 ). A competitive analysis is an
important part of marketing strategy development and
warrants f
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