Deck 15: Integrated Marketing Communications

Question 1

Describe the possible objectives of promotion and discuss the circumstances under which each objective might be used.

Answer 1

The following are the possible objectives of promotion and the circumstances where they can be used:
1) Creating awareness among people: It can be used when introducing a new product.
2) Stimulating demand of the product: It can be done while introducing an innovative product with a new use.
3) Retaining loyal customers: It can be used for retaining a constant flow of people, like mile cards for regular fliers.
4) Identifying prospects: It can be used for people who seek information through feedback forms or suggestion cards.
5) Reducing fluctuations in sales: It can be used for of seasonal sales, like providing additional discounts during off season.
6) Encouraging the trial use of a product: It can be used for checking out public reaction during the initial release of products, such as the beta version of computer software.

Question 2

Identify and briefly describe the four promotional methods an organization can use in its promotion mix.

Answer 2

The four promotional methods that can be used by an organization in its promotion mix are as follows:
Advertising : It is a paid non-personal communication about a business and its products through various media for increasing the customer base.
Sales promotion : It is the activity of adding incentive or value for the merchandise to the consumers, salespeople, or retailers.
Public relations : It is used for creating and maintaining a favourable relationship among the stakeholders of a firm.
Personal selling : It refers to paid personal communication for informing and persuading customers to purchase merchandise.

Question 3

What forms of interpersonal communication besides language can be used in personal selling?

Answer 3

The following are interpersonal communication types besides language:
1) Kinesic communication : It refers to communication thorough eyes, hands, legs, torso, or arms.
2) Proxemic communication : It refers to communication through variations in the physical distance during face-to face-interaction.
3) Tactile communication : It refers to communication done through physical touching.

Question 4

How do target market characteristics determine which promotional methods to include in a promotion mix? Assume a company is planning to promote a cereal to both adults and children. Along what major dimensions would these two promotional efforts have to differ from each other?

Question 5

How can a product's characteristics affect the composition of its promotion mix?

Question 6

A vital component of a successful marketing strategy is the company's plan for communication to its stakeholders. One segment of the communication plan is included in the marketing mix as the promotional element. A clear understanding of the role that promotion plays, as well as the various methods of promotion, is important in developing the promotional plan. The following questions should assist you in relating the information in this chapter to several decisions in your marketing plan.
Review the communication process in Figure 17.1. Identify the various players in the communication process for promotion of your product.

The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 7

Evaluate the following statement: "Appropriate advertising media are always available if a company can afford them."

Question 8

What does the term integrated marketing communications mean?

Question 9

Explain the difference between a pull policy and a push policy. Under what conditions should each policy be used?

Question 10

Frank Pepe's Pizzeria Napoletana Uses Positive Word of Mouth to Become a Premiere Pizzeria
Frank Pepe's Pizzeria Napoletana has opened one of the most recognizable pizzerias in the United States using word-of-mouth marketing. After returning from World War I, Frank Pepe initially began with making bread during the week and pizzas on the weekend. After seeing a demand for his product, he used his entrepreneurial spirit and focused solely on pizza. Frank Pepe founded Pepe's Pizzeria in 1925, with a heavy influence from his Italian culture, in New Haven, Connecticut.
Frank Pepe developed the New Haven-style thin crust pizza that earned him a reputation as being one of the country's premiere pizzerias. Many people began referring to Frank Pepe as "Old Reliable," which continued to generate positive feedback throughout different communities. Pepe's signature pizza, the White Clam Pizza, is one of its most notable recipes.
Since the beginning, Pepe's has been a family-run business. Frank's wife and children all worked in the original store and, after retiring, they passed the business to their children, who still have a stake in the business today. Through the transition between generations, Pepe's has always aimed to deliver a premium product that is consistent and meets customer standards. As people come into the store, Pepe's employees engage in personal selling by communicating various menu items.
Current CEO Ken Berry places a high emphasis upon delivering the promise and guarantee of quality within their product every day. As chief executive officer, he sees the challenge of delivering this promise as a duty that helps protect and build the brand, which the Pepe family initially built. He strives to retain brand equity and rely upon feedback from loyal customers as the company continues to grow.
Including the first and flagship store, there are currently seven pizzerias within Connecticut and New York. With each new store came the difficult task of maintaining the original experience for new, prospective, and loyal customers. When Pepe's began to consistently pursue expansion tactics, some customers appeared dismayed. There were protests and boycotts occurring on opening days, as other happy customers waited in long lines to test the reputation of the premiere pizza.
To ensure customer satisfaction at the new locations, Ken Berry discussed the critical nature of replicating every aspect of the original idea. Everything from the recipes being virtually unchanged to the layout and colors of the stores needed to be congruent to ensure success. He describes Pepe's as an experience that allows customers to step back in time with a handcrafted product.
Another aspect of developing demand for the company in new locations was the advertising tactics used. At times the company uses direct mail, which can be an effective form of advertising, and tries to engage with consumers on Twitter and Facebook to remain connected. As Pepe's has always done, it relies upon word of mouth to retain and gain new customers. It places emphasis upon the experience and listens to customer feedback on whether it is delivering a quality product. A major form of promotion comes in the form of free pizza, which is sales promotion. Generally, the week before a grand opening, Pepe's will offer free pizza for a week at that location to allow new ovens to be broken in, workers to understand Pepe's culture, and to showcase the confidence that Pepe's has in its product to the local community.
For the public relations side of the company, Pepe's has a donation request option on its website, where customers are welcome to fill out an application to receive primarily gift cards from the company. Pepe's also holds a good neighbor night, which allows an organization to hold a fundraiser at any of its location. Fifteen percent of proceeds made that night are given to the organization. While Pepe's loses out on some proceeds, these events create quality relationships in the community, as well as generate a potentially new customer base. Pepe's also donates gift cards to nonprofit organizations for fundraising purposes.
Throughout the years Pepe's has strived to deliver a promise to customers by staying true to the original product. It has maintained brand equity through its dedication and standards set by customers, family members, and all stakeholders associated with the product. For this company, it is clear that through positive word of mouth, integrated marketing does not always need to be a costly expense. 35
What are the various promotion elements that Pepe's uses to communicate with customers?

Question 11

In which ways can word-of-mouth communication influence the effectiveness of a promotion mix for a product?

Question 12

A vital component of a successful marketing strategy is the company's plan for communication to its stakeholders. One segment of the communication plan is included in the marketing mix as the promotional element. A clear understanding of the role that promotion plays, as well as the various methods of promotion, is important in developing the promotional plan. The following questions should assist you in relating the information in this chapter to several decisions in your marketing plan.
What are your objectives for promotion? Use Table 17.2 as a guide in answering this question.

The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 13

Which criticisms of promotion do you believe are the most valid? Why?

Question 14

Define communication and describe the communication process. Is it possible to communicate without using all the elements in the communication process? If so, which elements can be omitted?

Question 15

Should organizations be allowed to promote offensive, violent, sexual, or unhealthy products that can be legally sold and purchased? Support your answer.

Question 16

Frank Pepe's Pizzeria Napoletana Uses Positive Word of Mouth to Become a Premiere Pizzeria
Frank Pepe's Pizzeria Napoletana has opened one of the most recognizable pizzerias in the United States using word-of-mouth marketing. After returning from World War I, Frank Pepe initially began with making bread during the week and pizzas on the weekend. After seeing a demand for his product, he used his entrepreneurial spirit and focused solely on pizza. Frank Pepe founded Pepe's Pizzeria in 1925, with a heavy influence from his Italian culture, in New Haven, Connecticut.
Frank Pepe developed the New Haven-style thin crust pizza that earned him a reputation as being one of the country's premiere pizzerias. Many people began referring to Frank Pepe as "Old Reliable," which continued to generate positive feedback throughout different communities. Pepe's signature pizza, the White Clam Pizza, is one of its most notable recipes.
Since the beginning, Pepe's has been a family-run business. Frank's wife and children all worked in the original store and, after retiring, they passed the business to their children, who still have a stake in the business today. Through the transition between generations, Pepe's has always aimed to deliver a premium product that is consistent and meets customer standards. As people come into the store, Pepe's employees engage in personal selling by communicating various menu items.
Current CEO Ken Berry places a high emphasis upon delivering the promise and guarantee of quality within their product every day. As chief executive officer, he sees the challenge of delivering this promise as a duty that helps protect and build the brand, which the Pepe family initially built. He strives to retain brand equity and rely upon feedback from loyal customers as the company continues to grow.
Including the first and flagship store, there are currently seven pizzerias within Connecticut and New York. With each new store came the difficult task of maintaining the original experience for new, prospective, and loyal customers. When Pepe's began to consistently pursue expansion tactics, some customers appeared dismayed. There were protests and boycotts occurring on opening days, as other happy customers waited in long lines to test the reputation of the premiere pizza.
To ensure customer satisfaction at the new locations, Ken Berry discussed the critical nature of replicating every aspect of the original idea. Everything from the recipes being virtually unchanged to the layout and colors of the stores needed to be congruent to ensure success. He describes Pepe's as an experience that allows customers to step back in time with a handcrafted product.
Another aspect of developing demand for the company in new locations was the advertising tactics used. At times the company uses direct mail, which can be an effective form of advertising, and tries to engage with consumers on Twitter and Facebook to remain connected. As Pepe's has always done, it relies upon word of mouth to retain and gain new customers. It places emphasis upon the experience and listens to customer feedback on whether it is delivering a quality product. A major form of promotion comes in the form of free pizza, which is sales promotion. Generally, the week before a grand opening, Pepe's will offer free pizza for a week at that location to allow new ovens to be broken in, workers to understand Pepe's culture, and to showcase the confidence that Pepe's has in its product to the local community.
For the public relations side of the company, Pepe's has a donation request option on its website, where customers are welcome to fill out an application to receive primarily gift cards from the company. Pepe's also holds a good neighbor night, which allows an organization to hold a fundraiser at any of its location. Fifteen percent of proceeds made that night are given to the organization. While Pepe's loses out on some proceeds, these events create quality relationships in the community, as well as generate a potentially new customer base. Pepe's also donates gift cards to nonprofit organizations for fundraising purposes.
Throughout the years Pepe's has strived to deliver a promise to customers by staying true to the original product. It has maintained brand equity through its dedication and standards set by customers, family members, and all stakeholders associated with the product. For this company, it is clear that through positive word of mouth, integrated marketing does not always need to be a costly expense. 35
What role does word of mouth play in Pepe's integrated marketing communications?

Question 17

A vital component of a successful marketing strategy is the company's plan for communication to its stakeholders. One segment of the communication plan is included in the marketing mix as the promotional element. A clear understanding of the role that promotion plays, as well as the various methods of promotion, is important in developing the promotional plan. The following questions should assist you in relating the information in this chapter to several decisions in your marketing plan.
Which of the four elements of the promotional mix are most appropriate for accomplishing your objectives? Discuss the advantages and disadvantages of each.
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 18

Identify several causes of noise. How can a source reduce noise?

Question 19

Frank Pepe's Pizzeria Napoletana Uses Positive Word of Mouth to Become a Premiere Pizzeria
Frank Pepe's Pizzeria Napoletana has opened one of the most recognizable pizzerias in the United States using word-of-mouth marketing. After returning from World War I, Frank Pepe initially began with making bread during the week and pizzas on the weekend. After seeing a demand for his product, he used his entrepreneurial spirit and focused solely on pizza. Frank Pepe founded Pepe's Pizzeria in 1925, with a heavy influence from his Italian culture, in New Haven, Connecticut.
Frank Pepe developed the New Haven-style thin crust pizza that earned him a reputation as being one of the country's premiere pizzerias. Many people began referring to Frank Pepe as "Old Reliable," which continued to generate positive feedback throughout different communities. Pepe's signature pizza, the White Clam Pizza, is one of its most notable recipes.
Since the beginning, Pepe's has been a family-run business. Frank's wife and children all worked in the original store and, after retiring, they passed the business to their children, who still have a stake in the business today. Through the transition between generations, Pepe's has always aimed to deliver a premium product that is consistent and meets customer standards. As people come into the store, Pepe's employees engage in personal selling by communicating various menu items.
Current CEO Ken Berry places a high emphasis upon delivering the promise and guarantee of quality within their product every day. As chief executive officer, he sees the challenge of delivering this promise as a duty that helps protect and build the brand, which the Pepe family initially built. He strives to retain brand equity and rely upon feedback from loyal customers as the company continues to grow.
Including the first and flagship store, there are currently seven pizzerias within Connecticut and New York. With each new store came the difficult task of maintaining the original experience for new, prospective, and loyal customers. When Pepe's began to consistently pursue expansion tactics, some customers appeared dismayed. There were protests and boycotts occurring on opening days, as other happy customers waited in long lines to test the reputation of the premiere pizza.
To ensure customer satisfaction at the new locations, Ken Berry discussed the critical nature of replicating every aspect of the original idea. Everything from the recipes being virtually unchanged to the layout and colors of the stores needed to be congruent to ensure success. He describes Pepe's as an experience that allows customers to step back in time with a handcrafted product.
Another aspect of developing demand for the company in new locations was the advertising tactics used. At times the company uses direct mail, which can be an effective form of advertising, and tries to engage with consumers on Twitter and Facebook to remain connected. As Pepe's has always done, it relies upon word of mouth to retain and gain new customers. It places emphasis upon the experience and listens to customer feedback on whether it is delivering a quality product. A major form of promotion comes in the form of free pizza, which is sales promotion. Generally, the week before a grand opening, Pepe's will offer free pizza for a week at that location to allow new ovens to be broken in, workers to understand Pepe's culture, and to showcase the confidence that Pepe's has in its product to the local community.
For the public relations side of the company, Pepe's has a donation request option on its website, where customers are welcome to fill out an application to receive primarily gift cards from the company. Pepe's also holds a good neighbor night, which allows an organization to hold a fundraiser at any of its location. Fifteen percent of proceeds made that night are given to the organization. While Pepe's loses out on some proceeds, these events create quality relationships in the community, as well as generate a potentially new customer base. Pepe's also donates gift cards to nonprofit organizations for fundraising purposes.
Throughout the years Pepe's has strived to deliver a promise to customers by staying true to the original product. It has maintained brand equity through its dedication and standards set by customers, family members, and all stakeholders associated with the product. For this company, it is clear that through positive word of mouth, integrated marketing does not always need to be a costly expense. 35
Evaluate free pizza as a form of sales promotion in Pepe's success.

Question 20

A vital component of a successful marketing strategy is the company's plan for communication to its stakeholders. One segment of the communication plan is included in the marketing mix as the promotional element. A clear understanding of the role that promotion plays, as well as the various methods of promotion, is important in developing the promotional plan. The following questions should assist you in relating the information in this chapter to several decisions in your marketing plan.
What role should word-of-mouth communications, buzz marketing, or product placement play in your promotional plan?
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 21

What is the major task of promotion? Do firms ever use promotion to accomplish this task and fail? If so, give several examples.