Marketing communications integrating offline and online with social media 5th edition

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Marketing
Communications


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THIS PAGE IS INTENTIONALLY LEFT BLANK


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FIFTH EDITION

Marketing
Communications
Integrating offline and
online with social media
PR Smith & Ze Zook


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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 0 7494 6193 5

E-ISBN  978 0 7494 6194 2
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


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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


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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 

3

The revolution has started  4
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

1


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


x

Contents

14

Publicity and public relations – online and offline 311
Introduction  312
New and old PR tools  317
Advantages and disadvantages of PR  328
Case study 14.1: Virgin Mobile’s new tariff  334
Case study 14.2: Meet the Stars in a Muzu.TV intimate environment  337
Advantages and disadvantages summary  338
References and further reading  339
Further information  339

15

Sponsorship – online and offline 341
Introduction  342
New and old sponsorship tools  343
Managing a sponsorship programme  345
Advantages and disadvantages of sponsorship  349
Case study 15.1: TSB’s Roy of the Rovers  352
Advantages and disadvantages summary  353
References and further reading  354
Further information  355

16

Sales promotions – online and offline 357
Introduction  358
New sales promotions  361
Managing a sales promotion  364
Case study 16.1: The V&A digital art promotion  370

Case study 16.2: Rap anti-knife campaign  371
Case study 16.3: Muzu.TV film soundtrack promotion  374
Advantages and disadvantages  376
References and further reading  377
Further information  377

17

Direct mail – online and offline 379
Introduction to direct mail (and e-mail)  380
Opt-in e-mail and mobile messaging  383
Managing a direct mail campaign  386
Case study 17.1: Acronis automated marketing campaign  392
Advantages and disadvantages  398
References and further reading  399
Further information  399

18

Exhibitions – online and offline 401
Introduction  402
Managing exhibitions  402
12 reasons for poor performance  410


Contents

Case study 18.1: Sedgwick at RIMS Monte Carlo  410
Advantages and disadvantages  412
References and further reading  413

Further information  413

19

Merchandising and point of sale  415
Introduction  416
Merchandising tools  417
Retail strategies  419
Measuring merchandising effectiveness  421
Case study 19.1: Thomson Tours  422
Advantages and disadvantages  423
References and further reading  424
Further information  424

20

Packaging  425
Introduction  426
The designer’s tools  429
The packaging design process  435
Case study 20.1: Brand range development in India  438
Advantages and disadvantages  441
References and further reading  442
Further information  442

21

Websites and social media  443
Successful websites  444
Case study 21.1: Times Online microsite – Brian Clough, The Damned

United  452
Case study 21.2: American Greetings e-cards – the LiveBall system  454
Successful social media  457
Case study 21.3: Using social media (and UGC movies) to help 11- to
15-year-olds to stop smoking  461
Case study 21.4: Minime – a new social networking app to reduce cancer
from sun bed abuse  464
Advantages and disadvantages  467
Conclusion  468
References and further reading  468
Further information  469
Index  471

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xii

F o r ewo r d

M

arketing, and Marketing Communications in
particular, has changed forever. And it has all
happened since the last edition of this book – the
4th edition – written way back in 2005. What’s
changed? Two things essentially: first, Social Media
arrived and changed the communications model,
the budget allocation, workflows and even the definition of media, communications and customer
experience as they morphed together.

Second, marketing standards have slipped backwards as customer service got sloppier; whether due
to arduous automated telephone queuing systems,
sloppy websites or de-motivated staff suffering incessant corporate culls.
The good news is that marketers are now effectively presented with a major opportunity to be
outstanding by just doing the basics right. In fact,
they can become world-class players if they layer
on top some creativity, disciplined processes and
constant improvement.
Marketers have also got the opportunity of
getting back into the boardroom as social media
positions marketing at the centre of the business;
listening to customers, extending the brand ex­
perience and reaching out and collaborating with
stakeholders in previously entirely unimaginable
ways, compared with just a few years ago. Social
Media – if fully integrated – draws marketers
into Product Portfolio Planning; New Product
Development; Customer Engagement; Customer
Relationship Management; Lifetime Values.

In fact, social media has created a new Marketing
Utopia – listening and engaging and effectively inviting customers to shape the future of the business
(explored in Chapter 1). This requires new skills,
which have been explored throughout the book.
This 5th edition also has a subtle theme of creativity
integrated throughout. Creativity – with structured
processes and workflows behind it, combined with
Social Media – can deliver significant results. Do
alert us about any examples 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 the offline communications
tools. In addition to the complete set of new mini
cases, KAM (Key Account Management) has been
added to the Sales Management chapter, Rational
Emotional dichotomy to the Advertising chapter,
and New Laws/ Regulations and emerging ethics in
the Changing Communications Environment.
There is also a swathe of online support materials
including video clips on www.PRSmith.org.


xiii

A c k now l ed g ements

S

pecial thanks to Jonathon Taylor, co-author on previous editions.

Kristina Allen, ion interactive

Peter ‘Magic’ Johnston, MediaZoo Studios

Warren Allot, Photographer

Nigel Jones, Herdman Jones Associates Ltd

Zaid Al-Zaidy, Saint Digital

Isobel Kerr-Newell, SweeneyVesty

Jeremy Baker

Gary Leyden, Vrising

Riccardo Benzo, Managing Expectations

Chris Lake, Econsultancy

Michael Bland, Author

mailto:

Sarah Botterill, European Interactive Advertising
Association

Mike Langford, BT

Adrian Brady, Eulogy

Jez Lysaght, HD&M Creative

JoAnna Brandi, The Customer Care Coach®

Toby Marsden, Survival International

Alan Briefel, StratCom
Scott Brinker, ion international

Steve Martin, M&C Saatchi Sport &
Entertainment

Ged Carroll, Ruder Finn

Ian Maynard, Northstar Research Partners

Dr Dave Chaffey, Smart Insights

Davy McDonald, davymac.com

Mary Pat Clark, Pew Research Center

Paul McFarland, Goldhawk

Alistair Clay, Plan UK

Gerry McGovern, Gerry McGovern

Amelia Collins, Photographer

Sharon McLaughlin, McLaughlin Gibson

Communications

Keith Curley, Muzu.TV
Jenny Ellery, Saatchi mailto:
& Saatchi

Basil Long, Kroner Consultants

Claire Mitchell, Natural History Museum
Ian Morton, Happy Tuesdays

Annie Fong, Mischief PR

Jorian Murray, DDB London

Stuart Fowkes, Oxfam

Orson Nava, Director/ Content Producer

Rob Gotlieb, Muzu.TV

Julia O’Brien, Moonshine Media

Jonathan Grant, Grenadier Advertising

Brian O’Neill, Freshideas.ie Ltd

Gavin Grimes, McBoom

Paul O’Sullivan, Dublin Institute of Technology

Craig Hannah Econsultancy

Marie Page, Musicademy.com

Dr Hansen, Hansen

Hina Patel, Creating Results From Vision Ltd

Chloe Haynes, Cadbury

Alexandra Phelan, Paddy Power

Neil Hegarty, BMP Optimum

Ben Queenborough, Photographer

John Horsley, Ace-A-metric.com

Suresh Raj, Borkowski

/>
Martin Hutchins, Cambridge Professional
Academy

Charles Randall, SAS Solutions
Mark Read, Photographer
Josh Rex, This Is Open

xiv

Acknowledgements

Kevin Roberts, Saatchi & Saatchi

Rex Sweetman, Muscutt Sweetman

Dennis Sandler, PACE University

Dr Peter Tan, World Financial Group

Heather Sewell, ICE

Jamie Tosh, Kick4change

Adam Sharp, CleverTouch

Jon Twomey, Student Support Group

Joel Simon, Flickerpix Animations Ltd

Neil Verlander, Friends of the Earth

Graeme Slattery, Slattery Communications

Gian Walker, Network Co-op Ltd

Merlin Stone, The Customer Framework

Steve Wellington, Havavision Records

Ze’s particular thanks: I dedicate this work to my
wife, Revital and daughter, Nessa, for their patience
and understanding and to my mother and father for
their acceptance and nourishment of my being.

Paul’s particular thanks to Aran, Cian and Lily and the
ever patient, lovely, Beverley. And lastly, a very special
thanks to Owen Palmer (RIP) who gave me my first
break in UK Academia and never ceased to inspire
and encourage me even long after he had retired.


xv

A bo u t t h e au t h o r s
PR Smith

Paul is a marketing consultant, best-selling business
author and inspirational speaker. Paul has helped
hundreds of businesses to boost their results with
better marketing, including innovative start-ups such
as ‘short game golf’ in China and established blue
chip companies like IBM in the United States. He
integrates social media with all marketing activities.
He manages the social media for a start-up renewable
energy company who have achieved market capitalization of over US $500 million in 18 months. He
also advises UK Trade & Investment and Business
Links. Paul’s books, DVDs and renowned SOSTAC®

Planning system are used in over 60 countries. The
Chartered Institute of Marketing (CIM) describe
Paul’s best-selling Marketing Communications as
a “Marketing Major”. His eMarketing eXcellence
book is CIM’s recommended text. His Great Answers
To Tough Marketing Questions is translated into
seven languages and his Strategic Marketing Com­
munications breaks new ground. A Fellow of CIM,
Paul’s own personal passion is his social media
campaign to get sportsmanship back on the agenda
with an inspirational book and blog called www.
GreatMomentsOfSportsmanship.com. Paul enjoys
public speaking, and whether 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 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 photographer, Ze developed a unique creative

perspective on integrated marketing. He helps creative businesses to fulfil both their missions and their
business goals, and he has written on media and
digital marketing for Cambridge Marketing College.
His consultancy, lecturing and writing, harness
creativity in a fast-changing digital age. Visit http://
www.linkedin.com/in/zzook.


xvi

How to Use t h is B oo k

T

his book should not be read from cover to cover
but rather it should be used as a reference when
addressing a particular aspect of marketing communications. The integrated nature of the subject
does, however, refer the reader to other chapters
and sections that are relevant to the particular area
of interest. The anecdotal style, examples, case studies,
questions, key points and sections have been carefully structured so that the reader can dip into an
area of interest, absorb the information and crossrefer if required. This allows the reader to extract
specific answers quickly and easily. This book is
designed to entertain as well as inform and so it is
hoped that when dipping into a particular area, the
reader will be lured into reading more.
Part 1 (see Figure 0.1) introduces new marketing
communications (largely driven by social media),
branding, customer relationship management, buyer
behaviour and communications theory. Part 1 continues to build a background to marketing communications by looking at what information market

research can and cannot provide, how to work with
agencies and consultancies of all types, understanding the media, moving with the changing business
environment, international marketing and ultimately
shows how to write a marketing communications
plan using the simple SOSTAC® Planning System.
Part 2 covers specific marketing communication
tools that marketing professionals have to manage
at some time or other. These include selling and sales
management (and Key Account Management), adver­
tising, PR, sponsorship, sales promotion, direct mail,
exhibitions (all online and offline), packaging, and
finally, websites that work and social media that
wins.
The case studies at the end of each chapter in Part 2
have been carefully selected to show a range of different types and sizes of organizations using various
communications tools across a range of different
industries and markets. Materials are drawn from
both small organizations with small budgets and
larger businesses with multi-billion dollar budgets.
This book should prove useful to anyone interested, or working, in marketing.

The reader will discover that all of the communication tools can and should integrate with each
other, as shown in Figure 0.2 and explained at the
end of Chapter 1.
It is therefore sometimes difficult to separate and
categorize an activity as being one type of tool or
another. For example, direct marketing and sales
promotions should probably be called ‘direct promotions’ since they both more than likely involve
each other. The chapters are not listed in order of
importance. Selling and sales management is not

always included in a marketing communications
budget but the sales force is a potent form of communication and generally they (or the sales manager)
report to the marketing manager. In fact it has been
put to the top of the list because all the other chapters
thereafter tend to lead into each other.
The successful application of the marketing communications mix is helped by an understanding of
communication theory and buyer behaviour theory.
Marketing research can provide some practical and
specific answers to the questions that the theories
generate. This provides the building blocks for the
marketing communications plan, which draws upon
an understanding of how agencies operate and how
different media work. The details of the plan are
worked out within the sometimes complex, but
always integrated, web of the marketing commun­
ications mix (see Figure 0.2). The changing marketing communications environment and international
opportunities/threats constantly affect the whole
marketing communications mix. The world has
moved on since the 4th edition.
Different organizations allocate the same communication tools to different departments/budgets,
eg exhibitions may be seen to be part of public relations, although the sales team will man the stand
and benefit from extra sales. Sponsorship is con­
sidered by some to be an extension of advertising,
while others consider it to be part of PR. And no
one is too sure about whose budget covers the website. Regardless of classifications, ownership and
responsibilities, each tool must integrate with many
others.


How to Use this Book

We are always looking to update the material within
the book and our readers are invited to contact us
with any ideas, suggestions and contributions to the
next edition. As our subject of marketing communications is ever changing, we are keen to keep the
content fresh and lively. Please post your examples
of excellent marketing communications to us at
www.Facebook.com/PRSmithMarketing.

xvii

All lecturers who use this fifth edition can
obtain instructor support materials from
Kogan Page. Visit />resources/books/marketingcommunications

and use the password MC0389.

F i g u re 0.1   Part One: Background to the communications process

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How to Use this Book

xviii

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1

Part One
Communications
Background and
Theories