PART ONE Communications Background and Theories 01 New marketing communications 02 Branding 03 Customer relationship management 04 Customer psychology and buyer behaviour 05 Customer communications theory 06 Marketing communications research 07 Media buying and planning; 08 Marketing communications agencies; 09 International marketing communications; 10 The marketing communications plan; 11 The changing communications environment PART TWO Communications Tools 12 Selling, sales management and key account management; 13 Advertising online and offline 14 Publicity and public relations – online and offline; 15 Sponsorship – online and offline 16 Sales promotions – online and offline; 17 Direct mail – online and offline; 18 Exhibitions – online and offline ; 19 Merchandising and point of sale; 20 Packaging; 21 Websites and social media
i Marketing Communications ii THIS PAGE IS INTENTIONALLY LEFT BLANK iii FIFTH EDITION Marketing Communications Integrating offline and online with social media PR Smith & Ze Zook iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept respon sibility for any errors or omissions, however caused No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or any of the authors First published by Kogan Page Limited in 1993 Second edition published in 1998 Third edition published in 2002 Fourth edition published in 2004 Fifth edition published in 2011 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be repro duced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road London N1 9JN United Kingdom www.koganpage.com 1518 Walnut Street, Suite 1100 Philadelphia PA 19102 USA 4737/23 Ansari Road Daryaganj New Delhi 110002 India © P R Smith 1993, 1998, 2002, 2004, 2011 The right of P R Smith and Z Zook to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 ISBN 978 7494 6193 E-ISBN 978 7494 6194 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Smith, P R (Paul Russell), 1957Marketing communications : integrating offline and online with social media / Paul R Smith, Ze Zook – 5th ed p cm Includes index ISBN 978-0-7494-6193-5 – ISBN 978-0-7494-6194-2 1. Communication in marketing. I. Zook, Ze. II. Title HF5415.123.S65 2011 658.8′02–dc22 2010045798 Typeset by Graphicraft Ltd, Hong Kong Print production managed by Jellyfish Printed and bound in Great Britain by Ashford Colour Press v Dedicated to the memory of Chris Berry Chris had the courage of his convictions and was champion of the underdog He was generous in every conceivable way – the kindest man I ever knew A genius in writing, teaching and marketing, a gentleman and a true friend There’ll never again be anyone quite like Christopher Granville Berry Pa u l S m ith vi THIS PAGE IS INTENTIONALLY LEFT BLANK vii CO N T E N T S Foreword xii Acknowledgements xiii About the authors xv How to use this book xvi PA R T O N E Communications Background and Theories 01 New marketing communications The revolution has started Marketing utopia has arrived 10 The ladder of engagement 17 The race is on 22 References and further reading 28 Further information 29 02 Branding 31 Introduction to branding 32 Brand components 37 The branding process 41 Brand summary and the challenges ahead 55 Conclusion 58 References and further reading 58 03 Customer relationship management 61 Introduction to CRM 62 CRM components required 68 CRM creation and maintenance 80 CRM summary and challenges 84 References and further reading 86 Further information 87 04 Customer psychology and buyer behaviour 89 Introduction to understanding customer buying behaviour 90 Models of buyer behaviour 97 The intervening psychological variables 103 Summary and conclusion 112 Appendix 4.1: Hofacker’s online information processing 114 Appendix 4.2: The post-PC customer 115 viii Contents References and further reading 116 Further information 117 05 Customer communications theory 119 Introduction to communications theory 120 Communications models 123 Future communications models 131 References and further reading 134 Further information 135 06 Marketing communications research 137 Introduction to market research 138 Types of research 141 The market research process 151 In conclusion 158 References and further reading 158 Further information 159 07 Media buying and planning 161 Introduction – the challenge of the media mix 162 Which medium? 168 Which media and which vehicle? 170 Summary 179 References and further reading 179 Further information 180 08 Marketing communications agencies 181 Agency types 182 Agency structure 184 Agency remuneration 187 Agency relationships – selection and retention 189 References and further reading 202 Further information 203 09 International marketing communications 205 The globalization of markets 206 International difficulties 210 International mistakes 214 Strategic global options 215 In conclusion 222 References and further reading 222 Contents 10 The marketing communications plan 225 Outline marketing communications plan: the SOSTAC® planning system 226 Situation analysis 229 Objectives 233 Strategy 235 Tactics 237 Action 237 Control 240 References and further reading 244 Further information 244 11 The changing communications environment 245 Introduction 246 Politics (regulations and laws) 246 Economics 251 Social change 253 Technology 256 Summary 259 References and further reading 260 Further information 261 PA R T T WO Communications Tools 263 12 Selling, sales management and key account management 265 Introduction 266 Managing the sales force 270 Extending the sales force 273 Advantages and disadvantages 278 Summary 278 References and further reading 279 Further information 279 13 Advertising online and offline 281 Introduction 282 New advertising 283 Managing an advertising campaign 289 Case study 13.1: T-Mobile 300 Case study 13.2: HEA drug education 304 Advantages and disadvantages 308 References and further reading 308 Further information 309 ix 472 Index selection process overview 189 structure of 184–87, 184 traffic department 187 Ahonen, T 209 AIDA communication model 234, 269, 417 see also objectives Allen, Brady & Marsh (ABM) advertising agency 188, 193, 201, 255 Allen, J 64, 84 Amazon 8, 33, 35, 39, 47, 53, 228, 276 ratings and reviews for customer engagement 19 Ambler, T 243 American Express 78, 257, 343, 344, 347 Anderson, C 36, 37 Anning, P 248, 249 Apple 5, 21, 39, 167, 286 apps 5, 13, 92, 162, 166–67, 195, 282, 284 as new ads/media 167, 283, 286–87 The Art of War 229 see also Sun Tzu Atkinson, S 84 August, A 66 awareness trial reinforcement (ATR) model 98, 98, 299 B2B 70, 72, 127, 383 buyers 93, 451 markets 126 selling 267 B2C 127, 383 BA (British Airways) 77, 193, 199, 226 Balancing the Selling Equation 266 Bashford, S 190 BBC (British Broadcasting Corporation) 9, 22, 124, 167, 213, 246, 249, 286, 446 Becht, B 221 Beck, S Beenstock, S 57 Bell, R 33 Berners-Lee, T 132, 133, 258 Bernstein, D 51 Berry, C 106, 236 Berry, J 122 Bird, D 383, 387 Bird, J 359 Blackwell, R D 99 blogs/blogosphere 11, 128, 313, 328 Bogle, N 194 Bolger, A 331 Bond, C 363 Boshoff, A 351 Bossidy, L 7, 454 Boston Matrix 55 Bové, J 55 Bradshaw, P 284 Bradt, G 156 Braganza, A 65 brand awareness, overemphasizing importance of 95 brand components 37–41 emotional connection 38 equity 38–39 essence 39 experience 39 identity 39 personality 39 positioning 39–40 promise 40 rational and emotional appeals 38 role 40 values 40 vision 40–41 brand names 17, 20–22, 34, 50, 54, 90, 141, 167, 191, 211, 276, 286, 329, 432 development of 45–46 mistakes in 214 negative meanings of 37, 46, 214 Branding 50 see also Murphy, J branding 31–59 see also brand components; branding process and brands and brand summary/challenges ahead 53–58 company benefits from 32–34 and definition of brand 32, 37–38 power of 32–37 see also brands branding process (and) 41–55, 41, 42 see also brand maintenance; brands and logos aspects that drive brand behaviour 43 brand name development 45–46 brand policing 49–51 brief for 44–45 cost-effective high-impact brand moments 44 critical brand moments/ touchpoints 44 developing understanding of customer 43 emotions that drive brand behaviour 43–44 logos 46–48, 47, 51, 52 long-term profitable customers 43 mobilizing staff/channelling partners 49 motivating and training staff 48–49 personality, values, associations and promise 44 brands (and) 32–37 the anti-brand 55–56 boosting balance sheets, profits, relationships and sales 33–34 as bridge between marketing, finance and boardroom 57–58 corporate and sub- 51 creation of sustainable competitive advantage 32 customer experience/ engagement 53–54 disadvantages of weak 35 extensions and portfolio 54–55 investment in brand asset 51 maintenance of 49–54 see also customer engagement policing 49–51 promotions 359 reduction of perceived risk 35 reviewing 51–52 rise of own 56 roll-out/delivery of 48–49 satisfying aspirations 35 saving customers’ time 34–35 self-destruction 36–37 angry customers 36 bad marketing 36 Index global niches 37 internet business dynamics 37 short-term sales vs long-term brand building 56 strong survival of 58 Branson, R 45 Braun, T 40 Brinker, S 133 British Advertisers, Incorporated Society of (ISBA) 190 British Petroleum (BP) 38, 334, 429 and environmental crises 315, 331, 333 British Rate and Data (BRAD) 171, 177, 187 Brogan, C 15 Brøndmo, H 254 Broom, G 120 Brown, P 215 Brown, S 316 Browne, Sir J 38 Bryson York, E 285 budgets 227–29 allocating between customer retention and acquisition 228 between on and offline marketing 228 to social media 228–29 setting 227–28 Burnett, L 186 Butler, J 69 buying/buyer behaviour (and) 89–117 attitudes 110 buying situations 96 communication tools 110, 111 the complex burger buyer 90–91 customer reasoning/brain science 94–96 decision-making units 92 group influence 110 Hofacker’s online information processing 114 identifying customers 91–92 key questions for 90 learning 105–07 see also main entry models of 97–103 black-box 100–101, 101 buying process 97–99, 97, 98 complex 102–03, 102 linear additive 101 personal-variable 101 response hierarchy 99–100, 100 threshold 101–02 trade-off 102 motivation 107–10, 109 see also Maslow, A and the invisible badge 109 perception 103–05 the post-PC customer 115 privacy 96 the rational–emotional dichotomy 93–94 reasons for buying 93 time 96 trust 96–97 buying processes extensive problem solving (EPS) 96 limited problem solving (LPS) 96 routinized response behaviour (RRB) 96 Buzan, T 270 Byron, D 258, 461 Cadbury/Cadbury Schweppes 38, 200, 288, 315, 360, 362, 363 Caldicott, S 25, 26 case studies (for) advertising 300–307 HEA drug education 304–07, 305, 306, 307 T-mobile 300–304, 301, 302, 303 direct mail: Acronis automated marketing campaign 392, 397, 393, 394, 395, 396 exhibitions: Sedgwick at RIMS Monte Carlo 410–12 merchandising: Thomson Tours 422–23 packaging: brand range development in India 438–41, 439, 440 publicity: Virgin Mobile’s new tariff 334, 336, 335, 337 473 sales promotions Muzu.TV film soundtrack promotion 374–75, 375 rap anti-knife campaign 371–74, 372, 373 V&A digital art promotion 370–71 social media Minime – social networking app 464–67, 464, 465, 466 using social media/UGC movies 461–64, 462, 463 sponsorship: TSB’s Roy of the Rovers 352–53 websites American Greetings e-cards 454–57, 455, 456 Times Online microsite 452–54, 453 Castling, J 366 Center, A 120 Chaffey, D 53, 66, 70, 72, 77, 206, 364, 383, 384, 386, 444, 446, 448 Charan, R 454 Charan, R Chisholm, S 318 Chisnall, P 103, 104 Christensen, C 26, 155–56 churning/churn rate 68, 71, 76–77, 193, 300 Clifton, R 33 Coca-Cola 32–36, 38, 44, 46, 107, 155–56, 185–86, 214–17, 233, 256, 283–84, 299, 345–46, 349, 351, 360, 361, 363, 430–31, 433 sponsorships 342 Colitt, R 349 Collins, S 151, 152 colour blocking 420–21 and Lüscher colour test 431 perception and meaning of 46–47, 48, 104, 207, 211, 255, 384, 392, 430, 431–32 Colvin, G 316 Commission Junction 276–77 Commonsense Direct Marketing 383 see also Bird, D 474 Index communications environment, the changing (and) 245–61 advertising – press and print 250 advertising – television 250–51 breach of privacy regulations, costs of 248–49 codes of practice: selfregulation 248–49 direct marketing 251 economic effects on markets/ communications 252 economics 261–53 laws and regulations 246–51 see also EC directives; EU directives and legislation macro-political effects 251 recession-induced pyschological change 252–53 social change 253–56 see also main entry technology 256–58, 258 and semantic web 257–58 communications models 123–34, 123 adoption 129, 129 and diffusion of innovations 129–31, 130 accelerating 131 future 131–34 linear funnel 131–32 multi-step linear 126–27, 126, 127 and the semantic web 132–33 single-step 123–24, 124 two-step linear 125–26, 125 communications theory (and) 119–35 see also communications models message source credibility 121–22 need for new marketing communications skills see marketing communication skills non-verbal and non-symbolic communications 120–21 opinion formers, leaders and connectors 122–23 symbolic and semiotic communications 121 Considine, R 67 consumer franchise-building (CFB) promotions 359 control/control systems (and) 240, 242–43, 240, 241 monitoring scores 242 return on investment 243 social media monitoring 242–43 Coopere, G 111 corporate social responsibility (CSR) 313, 318, 333, 338 Court, D 131, 132, 416 cultural differences see also globalization and international difficulties/ mistakes festivals and celebrations 212 gestures and behaviour 207–08, 211–12 meaning of colour 211 between US and the world 212 Cummins, J 365, 367 customer engagement 17–22, 53–54 through collaborative cocreation (and) 19–22, 22 brand names 20 ideas 19 products and services 20–22 TV ads 19–20 through identifying engaged customers 17–18 and the ladder of engagement 18–19, 18 see also main entry customer feedback and complaints 74 customer experience management (CEM) 62, 68–69 customer relationship management (CRM) 9, 61–87, 85 architecture (IT and human) 68–69 boosts profits and sales 63 and building a profile with data/ fields 72–73, 72 challenges for 84 costs/timescales for 74, 82–83 creates database asset 63 development of credibility and trust for 79–80, 79 data analytics 70 data mining 71–72, 74 database 69–70 controlling 83–84 management of 82 detailed contact strategies for 75–77 defectors’ process/ churn 76–77 marketing automation 77 defining 62 failure of 84–86 and dominance trap 84–85 reasons for 85–86 general processes for 74–75 and measuring customer satisfaction 83–84, 85 and personalization 77–78 philosophy of 87, 87 power of 62 predictive analytics for 73–74 profiling 70–71 resources required for 83–84 strengthens brands 63 success of 86–88 system creation, development, testing and rollout 81–82, 81 writing brief for 80–81 and scope creep 81 using SOS 3Ms in 81 customer service 6–7 customer surveys 6–7 see also surveys National Customer Satisfaction Index (UK) customer retention programmes 383 Cuthbertson, C 33 Cutlip, S 120 DAGMAR (defining advertising goals for measuring advertising results) 99, 148–49, 234 Dahlstrom, P 151, 152 Darwin, C Data Protection Registrar 248 data security disasters 249 data/database mining 71–74, 153 Davis, S 44, 57 decision-making units 229, 256 Index definition of brand 35 CRM 62 diffusion 129 gestalt 104 mashable 134 semantic web (BernersLee) 258 sponsorship 343 Dichter, E 108, 426, 429, 432 digital body language 257 and joined-up marketing 269 reports 269 direct mail/e-mail 379–99 see also case studies advantages/disadvantages of 398 advantages over advertising/ sales management 391–92 availability of lists and databases for 381–82 campaign management for see direct mail campaign management co-branded 385 cost-effectiveness (per order) of 382–83 and customer retention and acquisition 385 integrated systems for 382 and mobile messaging 385 opt-in see also e-mail, opt-in profiling technology for 380–81, 380 tailor-made technology for 380 direct mail campaign management (and) 386– budgeting 388–89, 390 creative mailing tactics 387 integrating systems 387 objectives of 386 situation analysis 386 strategy for 386 testing 390–91, 391 timing 387–88, 389 Doctoroff, T 218 dominance trap 64–65 Doyle, P 57 Drucker, P 4, 27 Dudley, J W 212, 410 Dulux 98–99, 416, 444, 445–46 Dunkley, C 156 Dwight, M 254 Earls, M 6, 65 EC directives see also legislation Electronic Commerce Regulations (2002) 247 Economist 9, 35, 43, 50, 56 Edison, T 25, 26 Edwards, A 18 Egan, J 93 Ehrenberg, A 98, 299, 431 and awareness trial reinforcement (ATR) model 98, 98 Einstein, A 25 e-mail, opt-in (and) 383–85 see also direct mail/e-mail co-branded 385 cold e-mail campaign 385 creative execution 384 relevance of offers 383–84 response mechanism 384 response rates for 384 targeting 384 testing – split and multivariate 384 third-party e-newsletters 385 e-mail see direct mail/e-mail eMarketing eXcellence 66, 385, 448 see also Chaffey, D and Smith, P R Engebretson, D 406 Engel, J 99, 121, 236 Enterprise Risk Management Framework (2004) 252 ethics 83, 246, 249–50, 254–55, 313, 316 EU directives see also legislation Privacy and Electronic Communications Regulations (PECR) 247 Telecommunications Data Protection Directive 248 Unfair Commercial Practices Directive (2005) 247 European Interactive Advertising Association (EIAA) 165 Execution: The discipline of getting things done see also Bossidy, L and Charan, R exhibition(s) 401–13 see also case studies 475 12 reasons for poor performance at 410 advantages and disadvantages of 412 costs of 408–09 daily checklist for 407 design strategy for 404–05 experimental non-attendance at 410 finalizing action plan for 406–07 and percentage of sales 409 post-show evaluation of 408 and post-show follow-up 407–08 pre-show promotional tactics for 405–06 press coverage for 409–10 prioritizing objectives for 402–03 and prospective buyers 406 return on investment for 409 selection checklist for 403–04 strategy for 403 training staff for 406 value analysis 408 Farey-Jones, D 184 Farrell, D 264 Farrell, S 41 Fast Food Nation 55 see also Schlosser, E Fauconnier, C 43 feedback 6, 10, 36, 47, 57, 68, 78, 80, 123–24, 126–27, 131, 141, 152, 156, 226, 243, 270, 292, 285, 286, 454 Fehle, F 57 Ferraro, G P 207–08, 212 figures adoption model 129 affiliate network programme 277 affiliate programme, inhouse 277 agencies – articles by Len Weinrich 197, 198 anti-knife campaign 372, 373 awareness questionnaire 148 awareness trial reinforcement (ATR) model 98 back-up and recovery guide for SMBs 394 476 Index bar codes 433 black box model, enlarged 101 black box model 101 brand development process 41 brand development process (complete) 42 brand development process including research 41 business traveller segments and communications mixes 233 buying process for highinvolvement purchase, model of 97 Cadbury’s drum-playing gorilla 287 checklist for exhibitions 407 choosing an agency – assessment form 196 collaborative co-creation 19 collaborative co-creation: products 20 communication process (based on Schramm’s 1955 model) 124 communications model, advanced web 128 communications model, multi-step (a) 126 communications model, multi-step (b) 127 communications model, one-step 124 communications model, simple 123 communications model, simple web 128 communications model, two-step with opinion leaders 125 communications model, two-step with opinion leaders and opinion formers 125 communications objectives 291 communication tool – action plan for (mailshot) 239 communication tools, tactical timings of different 238 communications tools 24, 112 concepts for shower gel packs 146 constant change 259 control systems 240 cost per order/cost per customer acquisition 241 CRM development process 81 data loss and loss of time for IT managers 393 design tweaks (Heinz beans) 428 diffusion of innovations 130 diffusion of innovations: chasm between the segments 130 direct mail budgeting worksheet 390 direct mail variables, impact of 391 drug education 305 drug education: campaign press ad 307 drug education: media schedule 306 eating experiences and occasions 145 e-mail – contact workflow strategy 396 e-mail – invitation to a webinar 395 hand-held torch of learning (NUT) 52 hours spent per week using media 164 Hovis commercial 293, 294, 295, 297 Howard and Sheth model, complete 102 Howard and Sheth model, simplified version of 102 ladder of loyalty 67 lifestyle data from the TGI 147 mailing schedule example 389 Maslow’s hierarchy of needs 109 media planning process 298 media source by generation 163 Muzu.TV film soundtrack promotion 375 network of trusted professionals 14 new release – Wall Street Journal 330 on the air 22 optimum shelf stocking printout 420 original logotype vs new identity 439 packaging: Boro Plus Antiseptic Cream 440 packaging: Boro Plus Healthy Skin 440 packaging design 436 packaging design process 437 Paddy Power ad 288 photography 10 Downing Street image 321 Admiral Lord Nelson 322 Archaos fish diet 323 Dom Pedro 320 ‘Don’t forget planes’ campaign 321 Friends of the Earth rainforest-free lunches 322 Jarvis Cocker’s blue beard 320 PR mix 314 promotion sales 359 proposed media schedule for an Orange campaign 176 Prudential logo 47 publicity stunts fuel poverty stunt at Royal Courts of Justice 324 Mortascreen 326, 327 Razorlight at the Science Museum 324 real-world presentation 12 recognisable product shape 430 repositioning European newspaper 235 repositioning from traditional medical product to beauty product 439 repositioning: perceptual map of Lucozade’s classic repositioning 230 response hierarchy models 100 Shanks logo 47 Shell logo and its redesigns 52 speed of adoption of new ideas 258 strategic ladder of engagement 18 Index structure of large advertising agency 184 T-Mobile’s Life for Sharing 301, 302, 303 tailor-made products 380 Times Online microsite timetable 453 Virgin Mobile campaign 335 Virgin Mobile campaign timescale 337 virtual-world presentation 12 Financial Times 5, 121, 312, 331 Fisbhein, M 99, 101 Fischer, B 139 Fletcher, W 8, 33 Ford, H 26, 155 Forsyth, J 92, 95, 96 Fournier, S 57, 65 Foxall, G 100, 112 Fradette, M 25 Frank, O 92 Frank, R 55 Freud, S 107 further information see addresses and resources (for) Galante, N 92, 95, 96 Garrahan, M 349 Garvey, D 26 Geertz, C 208 Ghai, S 254 Gladwell, M 122, 131 global marketing and advertising strategies 216–22 using agencies 220–21 central and decentralized strategy and production 217–18 central strategy with central and local production 218 and central production, advantages and disadvantages of 218–20 and local production 218 and successful central communications 221–22 globalization (and) below-surface similarities and differences 209–10 elite global players 209 forces driving 208–09 global marketing and advertising strategies 216–19 see also main entry of markets 206–10 opportunity 206 Godin, S 67, 235 Goldstein, D 253 Google 9–12, 104, 166, 188, 312, 313 Alert 258, 333, 457 Earth/Maps 10, 11–12 News 258, 317, 318 Voice 133 as world’s first $100 billion brand 34 Gordon, W 144, 149 Gouzeta, R 93 Grande, C Gray, R 152, 155 Great Moments of Sportsmanship 21 Greenfield, S 25, 27 Griffin, C 124 Guild, T 92, 95, 96 Guinness 37, 38, 54, 123, 129, 190, 434 Gwyer, M 255 Hall, C 20 Hamilton, B 64 Hampp, A 285 Hancock, M 267 Handbook of Consumer Motivations 108 see also Dichter, E Hart, N 313 Harvey-Jones, J 209 Heinz 105, 360, 366, 428–29, 428 Hendler, J 132 Henkle, K M 50 The Hidden Persuaders 55 see also Packard, V Hochman, L 62 Hofacker, C 99, 114 Hoffman, D Holloway, P 364–65, 369 Hoover 359, 360–61, 366 How to Understand and Manage Public Relations 313 see also White, J Howard, J A 99, 102–03 Hyslop, R 363, 366 477 IBM 45, 46, 48, 50, 63, 127, 130, 216, 256, 266, 331 and Linux 21 Independent 332 Independent on Sunday 325 The Innovator’s Dilemma 156 see also Christensen, C international difficulties and mistakes 210–15, 222 competition 213 cost structures 213 and the global web 215 international mistakes 214–15 in language and literacy 210, 211, 213 legal restrictions 213 the media 212–13 negative meanings of brand names 214 original national identity 212 product mistakes 215 strapline mistakes 214 International Financial Reporting Standards 34, 247 international marketing and advertising strategies 216–19 central strategy with central and local production 218–19 advantages of 218–19 disadvantages of 219 central strategy and production/ local production 217–18 decentralized strategy and production 218 global 216–17 international marketing communications 205–23 see cultural differences; globalization and international difficulties and mistakes strategic global options for see global marketing and advertising strategies Interviewer Quality Control Scheme (IQCS) 154 Jacobson, T 54 Jaworski, D 162 Jefkins, F 348 Jenkinson, A John, R 267 478 Index Johnson, B 192 Joint Industry Council for Radio Audience Research (JICRAR) 176 Jones, H 95, 288 Kanter, B 228 Kanter, R 52, 154, 231, 213, 216, 217 Kao, J 23, 25 Kapferer, J 38, 93 Katz, E 125 Kaunk, L L 95 Keegan, V 250 Keegan, W J 216 Keen, A 254 Keller, E 122 Kelman, H 121 Kellogg’s 38, 46, 48, 58, 363 Kemp, M 185, 186 Kennedy, J 21, 104, 167, 285, 286 key account management (KAM) 266, 267–69, 269 10 steps towards developing 268 alternative approach to 269 key points for advertising 308 agencies 202 branding 58 buying/buyer behaviour 113 changing communications environment 259 communications theory 134 customer relationship management (CRM) 85 direct mail 398 exhibitions 412 international marketing communications 222 market research 158 marketing communications plan 243 media planning 179 merchandising 423 packaging 441 publicity and public relations 338 sales promotions 376 selling; sales and key account management 279 social media 468 sponsorship 353 websites 468 Kievman, N 258, 461 Kim, P 185, 186 Kimmel, M 111, 142 Kinnear, T 121, 236 Kipling, R 43, 220 Klein, N 48, 55, 313, 315, 350 Knapp, K 54 Knave, M 144 Kohler, E 284 Kollatt, D T 99 Kotler, P 74, 123, 128, 155, 226, 364 Kramer, R 213, 216, 217 Krigsman, M 64 Krugman, P 257 ladder of engagement 18–19, 18, 166, 457 Laing, R D 158 Lanier, X 18 Larkin, J 315 Lassila, O 132 laughter as antidote to stress 140 Lazarsfeld, P 125 Le Pla, F J 44 Learmonth, M 166, 199, 282 learning 52, 90, 103, 112, 127, 243, 457 cognitive 107 and collaboration 69 connectionist theories of 105–06 and e-learning 130–31, 465, 467 stimulus-response theories of 106–07 legislation Bribery Act (2011) 278 Business Protection from Misleading Marketing Regulations (2008) 247 Communications Act (2003) 247 Consumer Protection (Distance Selling) Regulations (2000) 247 Consumer Protection from Unfair Tading Regulations (2008) 247 Control of Misleading Advertisements Regulations (1988) 247, 250 Data Protection Act (1998) 247 Data Protection and Privacy Regulations (1999) 247 Digital Economy Act (2010) 247 Enterprise Act (2002) 247 German environmental 434 London Olympic Games and Paralympic Games Act (2006) 248 Olympic Symbol etc (Protection) Act (1995) 248 Sale of Goods Act (1979) 247 Telecommunications Act (2003) 250 Trade Descriptions Act (1968) 247 Trade Marks Act (1994) 247 Trading Schemes Regulations (1997) 275 Levine, R Levitt, T 210 Levy, A 253 Lewis, M 429 Lilley, A 13 Lindstrom, M 40, 48, 150, 253 logos 46–48, 47, 51, 52, 437 Luckett, T 332 Luxury Fever 55 see also Frank, R McDonald, M 268 McDonald’s 46, 90, 91, 106, 107, 220, 331, 351, 361 McGovern, G 7, 139, 448, 450 McKenna, R 133, 282 McKinsey 25, 36, 43, 67, 131, 132, 271 see also surveys MacNamara, B 252 Madden, T 57 Mahoney, M 64, 65 Majaro, S 217, 220 market research (and) 137–60 see also research agency selection 154–55 briefs 153–54 defining necessary information for 151–52, 153 information overload 139–40 marketing intelligence and information system 157–58 Index new ideas 155–56 online vs offline research 152–53 prioritization of information 140 problems for 156–57 relevant information for 138–39 research proposal 154 Target Group Index (TGI) 146–47, 147 types of research 141–51, 142–43, 145, 146 concept 144–45 focus groups 144 geodemographics 147 home audits 149 neuroscience 150 opinion-forming panels 150 qualitative 142, 144 quantitative 145–46 retail audits 149 using secondary data sources 151 social media audits 149–50 test marketing 147–48 tracking studies 148, 148–49 Marketer 106 marketing see also affiliate marketing automation (MA) 77 cause-related 315 field 274 guerrilla 353 joined-up 4, 451–52 multi-level 275 objectives 291 permission-based 249 tele- 274–75 viral 325, 327–28 Marketing Breakthrough 361 Marketing Business 418 marketing communications plan (and) 225–44 3Ms 226–27 see also main entry action 237–38, 239 budgeting for 227–29 see also budgets control/control systems 240–43, 240, 241 see also main entry objectives 233–35 see also main entry situation analysis 229–33 see also main entry SOSTAC® planning system for 226–29 see also SOSTAC® strategy 235–37 tactics 237, 238 marketing communication skills 133–34 agile project management 133 analytical pattern skills 133 experimental curiosity and rigour 133–34 mashable software fluency 134 systems thinking 134 marketing intelligence and information system (MIIS) 156–58, 246 Marketing Magazine: weekly brand awareness results 149 Marketing Week 381 Markiewicz, P 162 Markoff, J 133 Marsden, P 122, 131, 150 Marsh, P 193 Maslow, A 90, 108, 110, 272 hierarchy of needs 109, 110, 272 Mason, R 167 Mathur, S 270 Mead, G 212 media jargon/vocabulary 177–79 burst 178 continuous patterns 178 cost per thousand (CPT) 177–78 cover and reach 177 drip 178 environment 179 flighting patterns 178 frequency 177 impacts 178 opportunities to see (OTSs) 177 position 178–79 pulsing 178 TV rating points (TVRs) 178 media planning (and) 161–71, 176, 176–80 see also media jargon/vocabulary 479 ambient media 168 apps as new media 167 audience size, type and state of mind 169 booking space/airtime 171 changing media consumption 162–3, 165–66, 163, 164 choice of medium 168–70 costs of production, space and per thousand 169–70 the internet 168 lead times and ease of buying 170 media buying 170, 171 media characteristics 172–75 the message 170 mixed media 166–67 print 168 research/research bureaux 171, 176–77 shift in vision and philosophy 166 merchandising 415–24 see also case studies advantages and disadvantages of 423 distributor empathy required for 417 measuring effectiveness of 421–22 point of sale materials 416, 417 retail strategies for 419–21 colour blocking 420–21 merchandise ranges 420, 420 POS displays/retail sales promotions 421 sound, scents and mindshare 421 store image and layout 419–20 new technology/techniques for 418–19 tools for 417–19 Metcalf, B 13 Mexican wave 14, 110 Meyer, E 299 Microsoft 46, 50, 104, 127, 131, 148, 150, 215 Millman, T 269 mindshare 277–78, 421 Mitchell, A 350 mobile messaging 162, 385 480 Index models AIDA 234, 269, 417 awareness trial reinforcement (ATR) 98, 98, 299 of buying/buyer behaviour 97–103 communications 123–34, 123 Mole, J 210 Monty, S 17 Moog, C 121 Moore, A 209 Morris, K 48 Mose, M 40 motivation 107–10, 109 see also Maslow, A and the invisible badge 109 Murphy, D 250 Murphy, J 50 Murray, R 155 National Semiconductor 4–5, 444, 445 Neff, J 416 Nicholas, R 434 Nielsen 18, 130, 157, 162, 163, 189 new marketing communications (and) 3–30 accelerated change and hyper-competition 7–9 communication tools 23, 24 customer service/customer surveys 6–7 customer engagement 17–22 see also main entry innovations and customer needs 26–27 opportunities missed 27 opportunity and social media 27–28 morphing with experiences 5–6 see also social media and marketing’s antithesis race is on 22 relevance and creativity 23, 25–26 revolution in 4–10 and the colouring department 4–5 social media 6, 9–17 see also main entry virtual reality 12–13, 12 see also main entry winning customers 22–23 New Media Age 78 New York Sales and Marketing Association 270 New York Times 133 Nike 5, 38, 46, 78, 349, 350–51 No Logo: Taking aim at the brand bullies 55–56, 313 see also Klein, N Nurden, R 140 Oakes, S 106 objectives 233–35, 235 communications 234–35 AIDA and DAGMAR 234 marketing 233–34, 291 SMART 233, 290–91 Observer 348 O’Dea, A 20 Office of Fair Trading (OFT) 247 Ogilvy, D 35, 120, 168 Ohmae, K 25, 236, 246 Ohnemus, I 57 Olins, W 35, 51 Oliver, B 418 Olsen, K 26 opinion formers (OF) and leaders 125–26 Orwell, G 52 packaging 425–42 see also case studies advantages and disadvantages of 441 convenience of 427 communication functions of 427–28 corporate identity/ endorsements 429 design development and change 428–29, 428 design process see packaging design process and brief designer’s tools 429–35 colour/colour codes 431–32 graphics 432–34, 433 materials 434 shape 430–31, 430 smell 434–35 size 431 environmentally friendly 434 importance of 426 as opportunity 426 as protection 426–27 and overpackaging 428 packaging design process and brief 107, 435–38, 436, 437 contact names 438 measurement 436 minutes 436 money 436 objectives 435 situation/background 435 strategy for 435 Packard, V 55, 91, 108 Parker, L 44 Patel, K 166 Patterson, M 25 Pavlov, I 105 and his dog 90, 106, 359 Penn, D 94–95 Pepsi 107, 351, 360, 363 PEST (political, economic, social, technological) analysis 158, 229, 246, 259 Peters, T 38 Pike, K 208 Pilditch, J 428, 429, 430, 431, 432, 433 Pohl, M 248 point of sale (POS) 416, 417, 421, 423 and EPOS 421, 433 privacy, invasion of 83, 211 Procter & Gamble (P&G) 21, 51, 127, 128, 131, 148, 150, 185, 243, 252 Public Relations, Institute of (IPR) 312 Public Relations Consultants Association (PRCA) 251 public relations (PR) (and) 312–38 advantages/disadvantages of 328–34, 338 higher credibility 329 lack of control 329, 331–34, 330 no media cost 329 control by measuring media relations 333–34 crisis management for 332 marketing 312 Index mix 313, 314, 316–17 as more than communications 313–16, 314 new releases 317–18 online newsroom 318 photography 319–20, 320, 321 see also publicity press conferences/ interviews 318 product and corporate 312–13 publicity 317 see also main entry syndicated radio and down-theline-interviews 319 video news releases 318–19 publicity 323–28 see also case studies advantages and disadvantages of 338 via blogs, Facebook and Twitter 328 controlled integration of 332 stunts 323, 325, 323, 324, 326, 327 uncontrollable 331–32 and reducing lack of control 331–32 through viral marketing 326–28 Pulford, A 106, 236 Raphel, M 67 recency, frequency, monetary value (RFM) analysis 72, 72 Reed, D 13 references/further reading for 28–29 agencies 202 advertising 308–09 branding 58–59 buyer behaviour 116–17 changing communications environment 260 communications theory 134–35 customer relationship management (CRM) 86 direct mail 399 exhibitions 413 international marketing communications 222–23 market research 158–59 marketing communications plan 244 media planning 179 merchandising 424 packaging 442 publicity and public relations 339 sales promotions 377 selling, sales management and key account management 279 sponsorship 354 websites and social media 468 Reichheld, F 64, 84, 127, 228, 242, 243 research (on) 41 children growing old younger (Milward Brown) 253 consumer research and trend identification (Ogilvy & Mather) 290 CRM (Forrester Research, 2009) 66 decoding drunken messages (University of Bath) 124 media 171, 176–77 poor performance at exhibitions (Dudley, 1990) 410 qualitative research 145 sales of batteries 91–92 salesperson’s time spent in selling 267 use of response-handling mechanisms (Euro RSCG Direct) 387 research companies Burke (BASES test) 141 Nielsen (QUARTZ model) 141 Research International (MICROTEST) 141 Reynolds, J 33 Rich, F R 312 Richards, J 132 Riezebos, R 55 Rijkens, R 209, 217, 218 risk management 248, 252, 253, 410–11 Roberts, K 22, 23, 56, 93, 96, 105, 292 Robles, P 459 Rogers, D 333 Rogers, E 129, 130 Ronay, A 33 481 Rose, B 134 Rothery, G 5, 48, 150 Royer, L 23 RSS feeds 11, 67, 134, 313, 333, 451 Saatchi, M 221 Saatchi & Saatchi 23, 56, 182–83, 300, 302, 304 M&C Saatchi 193 Saatchi Worldwide 93, 105 sales force management (and) 269–79 see also affiliate marketing and marketing 7P approach to selling skills 271 advantages and disadvantages 278 control 272 distributors’ sales assistants 277–78 integrating sales force with communications mix 269 motivation 271–72 multi-level marketing 275 own sales force 274 recruiting 270 time 273 training 270–71 types of sales force/ people 270, 273–74 Sales Promotion (ISP), Institute of 251 sales promotions 357–77 see also case studies action and checklist for 368–69 advantages and disadvantages of 358–59, 376 control and measurement for 369–70 creative 361–62 damaging/ineffective 359–61, 359 integrated 364 joint 363 managing 364–70 objectives of 365, 366, 367 researching for 364–65 short-term tactical approach for 368 social-media-driven 363–64 482 Index strategy/strategic approach for 365–68 virtual gifts 362–63 Sandler, D 351 Sarnoff, D 13, 26 Schafter, P 127 Schifman, I G 95 Schlegelmilch, B B 216 Schlossberg, H 351 Schlosser, E 55 Fast Food Nation 55 Schrum, R 258, 461 scope creep 81, 448 search engine optimization (SEO) 11, 457, 459 search engine results page (SERP) 459 segmentation 229–33, 235 use pdfs and analysis 232–33 B2B (industrial) 232, 233 B2C (consumer) 231 criteria for 230–31 and decision-making units 231 global 231 selling, sales management and key account management see digital body language; key account management (KAM); sales force management and selling selling 266–67 consultative 267 functions of 267 semantic web 12–13, 132–33, 256, 257, 258 Seybold, P 445 Shani, D 351 Shavers, T 254 Shaw, R 98 Sherman, N 162 Sheth, J N 99, 102–03 The Silent Salesman 428 see also Pilditch, J Singel, R 317 Singer, M 151, 152 situation analysis 229–33 see also segmentation; target marketing Skinner, Dr and his rats 106, 358 Smallbone, D 120 SMART 233, 290–91 Smith, D 254, 362 Smith, P R 4, 53, 54, 66, 70, 72, 77, 106, 186, 206, 236, 259, 364, 383, 384, 385, 444, 446, 448 social change (and) 253–56 ageing populations 254, 255 demographics 255–56 ethics 254–55 see also main entry social media 6, 9–17, 457– see also case studies; Google and social media sites advantages/disadvantages of 457 and benefits of business online 460–61 blogs 10 cultural and organizational shift of 14–15 development of listening systems 15 development of knowledge assets 15 integration into business processes, ten steps for 457–58 marketing benefits of 27–28 mistakes 459–60 optimization (SMO) 459 process, ten steps for 15–17 social media optimization (SMO) 457, 459–61 as new SEO 459–61 social media sites Facebook 10 passim; 152, 166, 167, 194, 312 passim; 457 Flickr passim; 149, 319 passim; 457, 461 LinkedIn 11 passim; 312 passim Myspace 10, 133, 313 Twitter 10 passim; 128, 149, 167, 194, 313 passim; 370, 457 YouTube 9, passim; 149, 162, 182, 325, 457, 461 social networks 13–14, 14 and group behaviour 13–14 Metcalf network 13 online 36 Reed network 13 Sarnoff network 13 Solis, B 242, 457 Sorrell, Sir M 182, 199, 252, 282 SOSTAC® 45, 81, 226–29, 153 plus 3Ms 81, 153, 345, 364, 386 Spitznagel, M 253 sponsorship 341–55 see also case studies and SOSTAC® advantages and disadvantages of 349–51, 353 and ambush marketing 350–51 agreements for 347 budgets 349 definition of 343 monitoring, measuring and evaluation for 348–49 new and old tools for 343–45 objectives of 345–46 pilot scheme for 347 and roll-out 348 strategy for 346–47 tactical plans for 347 target audiences for 345 unusual types of 344–45 standard industrial classification (SIC) codes 72 Stengel, J 185, 199 Stone, M 64, 133 Strategic Marketing Communications 236 strategy for marketing communications 235–37 Sun Tzu 229 surveys (on) 6–7 addiction to internet information (Reuter) 140 benefits from social media (McKinsey 2009) 27 brands and subjectivity (Milward Brown Optimor BrandZ 2010) 32, 34 CRM (Standish Group and Gartner Group, 1980) 66 National Readership Survey (NRS) 177 sales executives at Fortune 1000 companies (McKinsey) 267 trust in global companies (survey for World Economic Forum) 315 sustainable competitive advantage (SCA) 8–9 SWOT analysis 158, 229, 246 Index tables 20 ways to develop credibility, boost online trust and drive repeat visits 79 customer sensitivity quotient 85 key account management (KAM), stages of 268 market research process 153 media characteristics, summary of 172–75 pre-pitch agency initiatives 192 pros and cons of different working relationships 183 sales promotions: linking objective to mechanics 367 sales promotions: matching promotion with objectives 366 types of research or information available 142–43 using RFM analysis 72 Taleb, N 253 Target Group Index (TGI) 141, 171, 230 target marketing 229–30, 235 see also segmentation Taylor, D 55 Tesco 76, 95–96, 113, 257 Computers for Schools 359 Direct 450 and dunnhumby 113 e-mail contact strategies 451 Fresh & Easy 95 Thomaselli, R 342, 347 Tipping Point 122, 131 see also Gladwell, M Toffler, A 256 Topalian, A 435 trademarks 8, 40, 46, 350, 351, 447 applications for 247 Tranfield, D 65 UK Affiliates 276 understanding agencies – agency relationships see agencies Unilever 5, 51, 55, 84, 104, 127, 131, 166, 199 unique selling propositions (USPs) 191, 271, 275, 289, 369, 419, 426, 435 United Kingdom (UK) Patent Office: trademark division 447 Trade & Investment 449 United Protection of Traders Association 381 user-generated content (UGC) 36, 447, 457 and pods4jobs 21 systems 20–22 values, attitudes and lifestyles (VALs) 231 Veblen, T 109 Virgin 21, 35, 39, 40, 51, 55 virtual reality (and) 10, 12–13, 12, 313 customer service avatars 12 massively multiplayer online games (MMOGs) 12 Second Life 12, 313 virtual press conference in 318 Wii games 12 Walker, R 109 Wall Street Journal 329 Warden, J 431 Warner, H M 26 Warshaw, M 121, 236 Watson, T 26 Web 2.0 10, 36, 356 Web 3.0 (semantic web) 12–13, 132–33, 256, 257, 258 Webber, A L 194 websites (and) 443–69 see also case studies and social media advantages and disadvantages of 467 converting visitors to customers (by/with) 449–52, 456–57 contact strategy 451 digital body language/ joined-up marketing 451–52 incentives 449 price lining 449 483 reducing anxiety 451 relevant landing pages 452 simplified processes 449–51 try and buy options 449 customer satisfaction 444 successful social media 457–61 visitor satisfaction with 444–48 customer engagement 447 high quality content 444 navigation 447–48 scenario planning and personas 444–46 sizzle 446–47 their top tasks 448 Weinrich, L 195, 197, 198 Welch, J 8, 25 Whatmough, D 286 White, D 193 White, J 313 Wilde, O 112 Williams, H 194 Williams, K C 101, 104, 105, 110 Williams, T G 432 Wilson, K 269 Wing, R L 229 Wojcik, P 267 Wollfall, A 332 Woodburn, D 268 Woodcock, N 64 Woods, A 450 Woods, S 257, 269 word of mouth 127–28 web (WOMWeb) 62, 68 World Assembly of PR Associations 312 and ‘Mexican Statement’ 312 The World Is Not for Sale 55 see also Bové, J Wright, H 66, 81 Yahoo 187, 199, 243, 246, 313, 317 Yang Gang 199 Yeong, C L 33 Young, L 206, 207 Young, M 67 Yu, H-y 33 Zeisser, M 362, 363 484 THIS PAGE IS INTENTIONALLY LEFT BLANK 485 THIS PAGE IS INTENTIONALLY LEFT BLANK 486 THIS PAGE IS INTENTIONALLY LEFT BLANK [...]... sponsors such as Sainsbury’s and The Prince’s Trust He has also worked with PR Smith for over 20 years on projects ranging from an award-winning, innovative, 3 screen PR Training video to the Chartered Institute of Marketing s online eLearning programmes developed with PR Smith s eLearning company to writing and researching innovative marketing projects Having started as a video/digital media producer and. .. Nightmare on Banking Street 28 Social media cultural shift 14 The social media process 15 The ladder of engagement 17 Customer engagement creates stronger brands and more advocates 17 References and further reading 28 Further information 29 4 Part 1 Communications Background and Theories The revolution has started A new marketing era, long overdue, was heralded in when social media emerged as a real... of creative marketing that delivers results offline or online at www Facebook.com/PRSmithMarketing What’s new in this 5th edition? Emerging creative marketing talent, Ze Zook, has co-authored this edition, which incorporates new chapters on Branding, Relationship Marketing and of course, Social Media (and websites) In Part 2, the ten communications tools all have online and social media integrated with. .. Marketers who understand and influence customer engagement better than their competitors are more likely to develop stronger brands and more loyal customers Engaged customers are more likely to become brand zealots Therefore it is important to identify engaged customers and start a brand ambassador programme to further strengthen the relationship and energize their word of mouth The ideal customer, or most... conferences, workshops, webinars or virtual events, his presentations are engaging, entertaining and carefully structured to embed immediate improvements Visit www.PRSmith.org or www.Facebook.com/PRSmithMarketing Ze Zook Ze Zook is an up and coming integrated market ing author, lecturer and consultant specializing in the creative industries He has worked with ballet, film and music, working with sponsors... or Google? Social media has arrived and customers love it Social media gives customers control Marketing has been democratized courtesy of the internet and social media And within the mass of customers lie the new opinion formers and opinion leaders: bloggers and twitterers Marketers have a choice: join the conversation or fail to communicate Old mass communications interruption models like TV advertising... higher levels of involvement ‘Joined-up marketing brings the old ‘outbound marketing (eg advertising, direct mail, telemarketing, etc, sending out messages) together with inbound marketing (where social media brings conversations to the organization) Integrating inbound and outbound with online and offline communications delivers higher impact and more cost-effective ‘joined-up marketing Marketing communications. .. videos) and Flickr photos: these are social media tools And customers, not companies, are controlling the flow of marketing information as they shut out interruption marketing and use, instead, social media to find products, ratings and reviews 9 Outbound marketing (the old interruption marketing model of advertising, direct mail and telesales) has suffered as audiences switch channels or fast-forward through... with experiences 5 The customer service time bomb 6 Accelerated change and hyper-competition 7 Social media 9 Marketing utopia has arrived 10 The race is on 22 Cut through the clutter 22 Be there, be relevant and be creative 23 Open and integrate your new toolkit 23 Why social media works 10 The creative age is here 23 How social media works 10 Enter the boardroom 27 Social networks 13... blogs, micro-blogs (Twitter), forums, social networks and online news media Not everything comes down to ROI ‘What’s the ROI for putting on your pants every morning? But it’s still important to your business.’ Scott Monty, Digital Communications Manager, Ford 17 Social media is not for the pure mercenary busi ness They are for organizations that are truly customer orientated Social media, for them,