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Select three (3) key points from the case and expand upon each of these points. What challenge is Domino’s management facing?There are a variety of promotion techniques Dominos could utilize to enhance their market share within the pizza category. If you were a Marketing Manager for Dominos which two (2) promotional techniques would you recommend to senior management? What is the rationale behind your recommendations?The authors discuss a variety of mobile advertising platforms. Discuss two (2) mobile advertising platforms used by Dominos. How successful have these two (2) platforms been for Dominos? Provide two (2) recommendations to improve the success level.
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PA RT FO UR
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Chapter 13
DE LI V E R A ND CO M M UN I C ATE TH E VA L U E PRO PO SI TI O N
Promotion I: Advertising
and Sales Promotion
Objective Outline
13.1 Understand the communication
process and the traditional
promotion mix. pp. 412–418
COMMUNICATION MODELS IN A
DIGITAL WORLD THAT IS “ALWAYS
ON” p. 412
13.2 Describe the steps in traditional and multichannel promotion
planning. pp. 418–424
13.3 Tell what advertising is,
describe the major types of
advertising, discuss some
of the major criticisms of
advertising, and describe
the process of developing
Gcampaign
an advertising
and how marketers
evaluate
U
advertising. pp. 424–444
N
N
,
Check out the Chapter 13 Study Map
on page 450.
G
E
Sara Bamossy N
S
A Decision Maker at the Pitch
N Agency
SSara Bamossy is Chief Strategy Officer of Pitch,Ia full-service advertising agency in Los Angeles. She brings a broad range of
brand and retail experience on global clients including
Toyota, P&G, Burger King, Netflix, Waldorf Astoria, and Nestlé. Sara’s
S
specialty is a deep understanding of a wide range of consumer groups and she has been consulted by publications such
E on Millennials and Boomers. Sara’s strategic thinking has inspired camas Advertising Age and Forbes for her expertise
Courtesy of Sara Bamossy, Pitch
Sara’s Info
SALES PROMOTION p. 445
ADVERTISING p. 424
OVERVIEW OF PROMOTION
PLANNING p. 418
paigns that have earned numerous industry awards including the Effies and Cannes Lions. She graduated summa cum
laude from UCLA with a BA in Marketing and Communications. She also completed the distinguished EPWL program at
Stanford’s Graduate School of Business. Sara’s personal metric for a well-lived life is a passport full of stamps. She loves
travel, as well as coming home again to approach everything with fresh eyes and new ideas.
What I do when I’m not working:
Yoga, Netflix, reading on the beach
First job out of school:
In high school I worked at the Gallup Poll
doing market research surveys … and the
rest is history.
Career high:
1
4
1
7
A job-related mistake I wish I hadn’t
T
made:
Leaving a specific S
role that wasn’t right
for me sooner; I knew in my heart and in
my mind it wasn’t right after three months
and I muscled on for too long.
Business book I’m reading now:
Yes Please by Amy Poehler.
My hero:
It would be amazing to be reincarnated as
a superhuman combination of JK Rowling,
Gwen Stefani, and Tina Fey.
My motto to live by:
What drives me:
The thrill of solving a complicated problem.
My management style:
Chameleon Coach. I prefer strengthsbased management style that best fits
each individual’s needs.
Don’t do this when interviewing
with me:
Tell me that you view the role as just a
short-term stop on your career path.
My pet peeve:
Wasting time (see also: being unprepared,
making excuses, finger pointing)
If you don’t have a clear goal in life, you are
destined to work for someone who does.
Marketing: Real People, Real Choices, Ninth Edition, by Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart. Published by Pearson.
Copyright © 2018 by Pearson Education, Inc.
ISBN 1-323-75008-8
As someone who loves my job it’s hard to
pick! I still remember the first time I was
sent to Japan to test drive prototype cars
as a young strategist leading a vehicle
launch…. it was a pinch-myself-to-makesure-this-is-real career moment.
410
13.4 Explain what sales promotion
is and describe the different
types of consumer and B2B
sales promotion activities.
pp. 445–450
Here’s my problem…
Real People, Real Choices
After a series of enormously successful business deci“mascots” many companies use. Clearly, during the time of his reign The King
sions across promotions, operations, and menu innova  |  *            ‘
tion, Burger King was posting U.S. sales gains when competitors were failing
driver. Some people thought he had nothing to do with where they’re going to
or stagnant. By mid-2015 Burger King was outperforming McDonald’s and
eat lunch today.
Wendy’s by significant margins in sales. However, the brand was lagging its
Š       ‘               #
main competitors in imagery. In the third quarter we turned our attention to
<  ’“    { *   ‘    ~ X ~ “ refining our advertising strategy and optimizing communications. McDonald or Wendy), customers can easily misattribute its mass communicaMass communications for quick-serve restaurants (QSRs) must drive tions to similar products—so you wind up advertising for the competition. The traffic quickly, often to promote specific menu items with immediate and King was like a giant sponge that sucked up earned media coverage (exposure ambitious sales gains. We needed to find a way to develop and implement as a result of natural publicity rather than paid advertising) and kept Burger long-range brand planning within the business reality of this fast-moving inKing in the pop-culture spotlight. That kind of exposure is hard to replicate. Bring back The King as an instantly recognizable dustry. My role was to create a strategy that would enable Burger King to tell icon. The King still had high awareness even after several years a consistent brand story with the flexibility to support a wide range of new and away from the spotlight. Using The King boosts brand attribution, core menu items across all day parts. BK has always been known and loved for especially for promotions. As an icon, he has the potential to drive “Have it Your Way,” flame-grilling, and the Whopper. As the brand evolved, The G ‚“            ‘   | King was introduced to bring a younger audience and later he was retired in U Option culture moments. Using a brand icon is one of the fastest ways to optimize favor of a broader reaching “Taste is King” campaign. The question became, N media impact because he brings an instant branding kick. what’s next for BK marketing? On the other hand, brand spokespeople (even imagined ones) need to As CSO (Chief Strategy Officer) of Pitch, I partnered with Burger King N be very carefully crafted and follow strictly adhered-to guidelines or they can North America on an action plan to get us to the ultimate strategy, with inputs from data mining, consumer research, and competitive analysis. Along the way , become gimmicks. By the end of his reign in 2011, the use of The King in messaging was no longer directly tied to business and brand needs. A percepwe reached a key decision point for the Burger King brand: Should we bring tion existed that The King had become overexposed by the time he retired. To back The King or find a new road? Should Burger King’s new long-range stratG take full advantage of The King’s earned media potential, the brand must be egy take advantage of latent equity in a past icon? E willing to make and act on decisions very quickly to take full advantage of a constantly churning Internet news cycle. That would mean resuscitating a new  N and improved King who would be able to rule over a kingdom that’s shaped by Leave The King in the past where he belongs. The N unpredictable social media trends rather than the predictable television camQSR landscape, the economy, and consumer attitudes toward fast paigns of days past. food had all evolved since Burger King stopped using The King in I Now put yourself in Sara’s shoes. 2011. The rise of fast casual dining options (like Chipotle), health S Option macro trends (clean eating, organic), and fast meal behavior changes (i.e., Starbucks and meal replacement bars) all impacted the fast-food E You Choose industry. Also, even at the height of his popularity, The King was a bit tricky as Which Option would you choose, and why? a company spokesman. When depictions were not carefully crafted, he became Option 1 Option 2 “creepy” and relevant to a narrow audience of Millennial men. His edgy per- 1 sona differentiated him among this group, because as a brand icon he was a See what option Sara chose in MyMarketingLab™ part of pop culture and a departure from the typical overly wholesome 4 Sara considered her Options 1 2 MyMarketingLab™ 1 7 T S ISBN 1-323-75008-8 Improve Your Grade! Over 10 million students improved their results using the Pearson MyLabs. Visit mymktlab.com for simulations, tutorials, and end-of-chapter problems. 411 Marketing: Real People, Real Choices, Ninth Edition, by Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart. Published by Pearson. Copyright © 2018 by Pearson Education, Inc. 412 PA RT FO UR | DE LI V E R A ND CO M M UN I C ATE TH E VA L U E PRO PO SI TI O N Chapter 13 13.1 OBJECTIVE Understand the communication process and the traditional promotion mix. (pp. 412–418) Communication Models in a Digital World That Is “Always On” Test your advertising memory:* 1. Which fast-food chain encourages you to “Live Más”? 2. What product advertises that you can “Go Commando?” 3. What hair product brand says “Because you’re worth it”? 4. What pet food “Tastes so good, cats ask for it by name?” 5. Which credit card says, “There are some things money can’t buy. For everything else, there’s …” G Did you get them all right? You owe your knowledge about these and a thousand U efforts of people who specialize in marketing communication. other trivia questions to the Of course today, these slogans N are “old school” as marketers have followed consumers onto Facebook and Twitter and into virtual worlds to talk with their customers. N So far, we’ve talked about creating, managing, pricing, and delivering products. But , it’s not enough just to produce great products—successful marketing plans must also provide effective marketing communication strategies. As we said in Chapter 1, promotion is the coordination of marketing communication efforts to influence attitudes or behavior. G This function is the last of the famous four Ps of the marketing mix, and it plays a vital role—whether the goal isEto sell hamburgers, insurance, ringtones, or healthy diets. Of course, virtually everything N an organization says and does is a form of marketing communication. The ads it creates, the packages it designs, the uniforms its employees wear, N and what other consumers say about their experiences with the brand contribute to the I have of the company and its products. Today, what both thoughts and feelings people the company and others S say in the digital world plays an increasingly important role in the marketing communication process. Just what do we mean by communication? Today, E messages assume many forms: quirky TV commercials, innovative websites, viral videos, blogs, Internet advertising, mobile apps, social media sites, sophisticated magazine ads, funky T-shirts, blimps1blinking messages over football stadiums—even do-it-yourself, customer-made advertising on the Super Bowl broadcast. Some marketing communica4 tions push specific products (like the Apple iPad) or actions (like donating blood), whereas 1 others try to create or reinforce an image that represents the entire organization (like General Electric or the Catholic Church). 7 Marketing communication in general performs one or more of four roles: T S 1. It informs consumers about new goods and services. 2. It reminds consumers to continue using certain brands. 3. It persuades consumers to choose one brand over others. 4. It builds relationships with customers. Today, marketing experts believe a successful promotion strategy should coordinate diverse forms of marketing communication to deliver a consistent message. Integrated marketing communication (IMC) is the process that marketers use “to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences.”1 The IMC approach argues that consumers come in contact with a company or a brand in many different ways before, * Answers: (1) Taco Bell, (2) Cottonelle toilet paper, (3) L’Oréal hair products, (4) Meow Mix cat food, (5) MasterCard. Marketing: Real People, Real Choices, Ninth Edition, by Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart. Published by Pearson. Copyright © 2018 by Pearson Education, Inc. ISBN 1-323-75008-8 integrated marketing communication (IMC) A strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences. C H AP T ER 1 3 | ƒ        >

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after, and during a purchase. Consumers see these points of contact—a TV commercial,
a company website, a coupon, an opportunity to win a sweepstakes, or a display in a
store—as a whole, as a single company that speaks to them in different places and different ways.
To achieve their marketing communication goals, marketers must selectively use
some or all of these to deliver a consistent message to their customers in a multichannel
promotion strategy where they combine traditional marketing communication activities
(advertising, sales promotion, public relations, and direct marketing) with social media
and other online buzz-building activities. That’s a lot different from most traditional marketing communication programs of the past that made little effort to coordinate the varying messages consumers received. When a TV advertising campaign runs independently
of a sweepstakes, which in turn has no relation to a NASCAR racing sponsorship, consumers often get conflicting messages that leave them confused and unsure of the brand’s identity. We’ll talk more about multichannel strategies later in this chapter.
G
To better understand marketing communications today, let’s look at the three different
UThe first, the traditional
models of marketing communication, as shown in
Figure 13.1.
communication model, is a “one-to-many” view in which a single
Nmarketer develops and
sends messages to many, perhaps even millions of, consumers at once. The one-to-many
N
approach involves traditional forms of marketing communication, such as advertising,
,
including traditional mass media (TV, radio, magazines, and newspapers);
out-of-home,
such as billboards; and Internet advertising, such as banners and pop-ups. This model also
I. The One-to-Many Model
Advertising
Sales Promotion
Public Relations
G
E
N
N
Marketer
Market
I
S
E
multichannel promotion strategy
A marketing communication strategy where they
combine traditional advertising, sales promotion,
and public relations activities with online buzzbuilding activities.
Snapshot |
Three Models of Marketing
Communication
Figure 13.1
Marketers today make use of the traditional
one-to-many communication model and
the updated many-to-many communication
model as well as talking one to one with
consumers and business customers.
Consumers
II. The One-to-One Model
Database Marketing
Direct Marketing
Personal Selling
1
4
1
7
Marketer
T
S
Consumers
ISBN 1-323-75008-8
413
III. The Many-to-Many Model
Buzz Building
Social Media
Marketer
Consumers
Marketing: Real People, Real Choices, Ninth Edition, by Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart. Published by Pearson.
Copyright © 2018 by Pearson Education, Inc.
414
PA RT FO UR
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DE LI V E R A ND CO M M UN I C ATE TH E VA L U E PRO PO SI TI O N
word-of-mouth communication
When consumers provide information about
products to other consumers.
benefits from consumer sales promotions, such as coupons, samples, rebates, or contests, and
press releases and special events that public relations professionals organize.
We also need to expand our traditional communication model to include the one-toone model, where marketers speak to consumers and business customers individually. The
one-to-one forms of marketing communication include personal selling, trade sales promotion
activities used to support personal selling, and a variety of database marketing activities that
include direct marketing.
In today’s “always on” world that we discussed in Chapter 1, the importance of the
updated “many-to-many” model of marketing communication increases exponentially.
This newer perspective recognizes the huge impact of social media and its use in word-ofmouth communication, where consumers look to each other for information and recommendations. Many of us are more likely to choose a new restaurant based on users’ reviews
we read on Yelp than because we saw a cool commercial for the place on TV.
In the updated model, marketers add new tools to their communications toolbox,
G
including buzz-building activities that use viral and evangelical marketing techniques as well
U such as brand communities, product review sites, and social
as new social media platforms,
networking sites where consumers
talk to lots of other consumers. The odds are you’re using
N
many of these platforms already. In this chapter and the following one, we’ll examine each
N
of these three different ways to communicate with our customers.
,
The Communication Model
communication model
The process whereby meaning is transferred
from a source to a receiver.
Figure 13.2
Of course, promotion strategies
G can succeed only if we are able to get customers to understand what we’re trying to say. The communication model in
Figure 13.2 is a good way
E
to understand the basics of how any kind of message works—from you telling your friends
N in Key West to that little green gecko telling millions of conabout your great spring break
sumers to buy GEICO insurance.
In this perspective, a source transmits a message through
N
some medium to a receiver who (we hope) listens and understands the message. Marketers
I
need to understand the function and importance of each of the elements of the model.
Process | Communication Model
S
E
The communication model explains how organizations create and transmit messages from the marketer (the source) to the consumer
(the receiver) who (we hope) understands what the marketer intends to say.
Source
• Company
• Individual
(encoding)
1
4
Message
1
• Advertising
•Public relations
7
•Sales promotion
T
•Salesperson pitch
•Communication
S
from other
consumers
Medium
• Magazines
• Newspapers
•Television
•Radio
•Billboards
•Direct mail
•Word of
mouth
Receiver
(decoding)
• Consumer
Noise
• Competing messages
• Purchase data
•Product awareness
•Brand loyalty
Marketing: Real People, Real Choices, Ninth Edition, by Michael R. Solomon, Greg W. Marshall, and Elnora W. Stuart. Published by Pearson.
Copyright © 2018 by Pearson Education, Inc.
ISBN 1-323-75008-8
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415
The Source Encodes
Let’s start to explore this basic model from a good place: the beginning. First, there is a person or organization—the source—that has
an idea it wants to communicate to a receiver, such as potential
customers. To do this, the source must translate the idea into a
physically perceivable form (like a TV commercial) that conveys
the desired meaning. This encoding process means the source may
translate the idea into different forms to convey the desired meaning. We may just use words, music, a celebrity (Ashton Kutcher
for Nikon cameras or Sofia Vergara for Cover Girl Cosmetics2), an
unknown actor, an actual customer or even that animated gecko to
speak to consumers.
G
The message is the actual content of that physically perceivable form
U
of communication that goes from the source to a receiver. The mesN
sage may be in the form of advertising, public relations, sales promotion, a salesperson’s pitch, a direct marketing infomercial, a Facebook
N …
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