Monday, November 19, 2012

Ch. 16 -Integrated Marketing Communications

     
     When it comes to sales promotion, long-standing companies like Dom Perignon rely heavily on their already established reputation rather than on traditional advertising techniques like television, radio, or billboards. Luxury brand companies rarely give things away for free for fear that offering discounts or free items with a luxury purchase could place the company in a position where they look as if they need to give something away in order to make a sale. Dom Perignon is a company with a projected image of elegance and prestige. Giving away promotional products could potentially compromise the integrity of a company that has worked very hard to maintain a prestigious image. Centuries of marketing Dom Perignon has put them in a unique position where word of mouth precedes non-verbal promotion or advertising. The average consumer can only name a handful of luxury champagnes and Dom Perignon very often tops the list. This kind of favorable publicity is something that can only be achieved through many years of promotion and advertising, that of which has changed greatly throughout the time that Dom Perignon has been in operation. No amount of advertising money can buy this kind of long-lasting promotion.
      While many people do purchase individual bottles of Dom Perignon for personal, non-business use, the company makes most of their money selling cases of Dom Perignon to restaurants, bars, wine shops and nightclubs. This kind of personal selling by wine and spirits representatives turns an otherwise personal product into a business product purchased by the buyer. These representatives are able to offer the buyer a sales promotion, namely discounts on over-seas tax, to encourage the buyer to purchase a certain amount of cases to sell in store.
      As mentioned earlier, interpersonal communication is the driving force in the marketing of Dom Perignon. With the exception of very few print ads, mass communication is almost never used when attempting to sell or promote the product. Representatives can often influence current and potential buyers based solely on the companies reputation and thereby putting the seller in the position on the sender. The buyer, or receiver, can then give the appropriate feedback to the sender based on his or her positive or negative experience with the champagne. Because Dom Perignon is a very expensive champagne, buyers and consumers often have to go through an extensive thought process when deciding whether or not to buy a single bottle or an entire case. Typically, because Dom Perignon is such a mature company, consumers need little more than to be reminded that the champagne still exists. In terms of the AIDA concept, Dom Perignon is mostly concerned with the action that they take in terms of promotion. Little attention needs to be drawn to Dom Perignon, many consumers have an interest in it, and avid champagne drinkers certainly have a desire for it. It is up to the marketer or promoter to make sure that the consumer takes the final step and purchases a bottle or case.  

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