Chapter 18 PowerPoint

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C H A P T E R

Integrated Marketing Communications

18

Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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L E A R N I N G O B J E C T I V E S

Identify the components of the communication process.

Explain the four steps in the AIDA model.

Describe the various integrative communication channels.

Explain the various ways used to allocate the integrated marketing communications (IMC) budget.

Identify marketing metrics used to measure IMC success.

Integrated Marketing Communications

LO1

LO2

LO3

LO4

LO5

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Coca-Cola

©2006-2012 The Coca-Cola Company.

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Integrated Marketing Communications

Custom

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Results Comm

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channel

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Communicating with Consumers: The Communication Process

Noise from the environment

Feedback

Receiver(Consumer)

decodes message

Sender(Firm)

Transmitterencodesmessage

Communicationschannel(Media)

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How Consumers Perceive Communication

Receivers decode messages differently

Senders adjust messages according to the medium and receivers’ traits

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Decoding the Message

How does the advertiser help the receiver decode this as a breakfast food

Courtesy HJ Heinz Company

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The AIDA Model

Awareness

Interest

Desire

Action

Think

Feel

Do

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AIDA Model

Where is this ad in the AIDA model?

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Awareness

Senders first must gain the attention

A multichannel approach increases the likelihood the message will be received C

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Interest

After awareness comes persuasion

The customer must want to further investigate the product/service

©2010 Dell Inc All Rights Reserved

©2010 Dell Inc All Rights Reserved

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Desire

I like it I want it

blue jean images/Getty Images

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Action

Purchase is just one type of action… what other actions can IMC ask consumers to take?

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The Lagged Effect

Advertising does not always have an immediate impact

Multiple exposures are often necessary

It is difficult to determine which exposure led to purchase

©image100/PunchStock

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1. What are the different steps in the communication process?

2. What is the AIDA model?

CHECK YOURSELF

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Elements of an Integrated Marketing Communication Strategy

• Personal selling

• Sales promotions (e.g., contests)

• Direct marketing (e.g., telemarketing)

• Advertising

• Sales promotions (e.g., coupons)

• Public relations

• Direct marketing (e.g., catalogs)

• Direct marketing (e.g., mobile marketing)

• Online marketing (e.g., blogs, social media)

• Direct marketing (e.g., e-mail marketing)

Interactive

Passive

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Off

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Advertising

Most visible element of IMC

Extremely effective at creating awareness and generating interest

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Public Relations (PR)

“Free” media attention

Importance of PR has grown as cost of other media has increased

Consumers becoming more skeptical about marketing, PR becoming more important

Courtesy Citirx Online, LLC

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Sales Promotions

Can be aimed at both end user consumers or channel members

Used in conjunction with other forms of IMC

Can be used for both short-term and long-term objectives

Retailmenot.com Website

Courtesy Dole Food Company, Inc.

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Personal Selling

Some products require the help of a salesperson

More expensive than other forms of promotion

Salespeople can add significant value, which makes the expense worth it

Royalty-Free/CORBIS

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Direct Marketing

Growing element of IMC

Includes e-mail and m-commerce

Good for multicultural groups

Database technology improves

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adidas

Anthony Saint James/Getty Images

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Online Marketing

Websites

Blogs

Social Media

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Websites

What websites do you visit all the time?

Why?

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Blogs

What can Southwest learn from their blog?

Courtesy Southwest Airlines

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Social Media

Advantages to firms? Challenges?

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1. What are the different elements of an IMC program?

CHECK YOURSELF

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Planning for and Measuring IMC Success

Understand the outcome they hope to achieve

Short-term or long-term

Should be explicitly defined and measured

Lawrence Lawry/Getty Images

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Setting and Allocating the IMC Budget

Objective-and-task method

Rule-of-thumb methods

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Rule of Thumb Methods

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Measuring Success Using Marketing Metrics

Frequency

Reach

Gross rating points

Web Tracking

Digital Vision/Getty Images

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Search Engine Marketing

Clicks

Impressions

Click through rate

Return on investment (ROI)

Transit, an upscale sneaker store in New York City modeled after vintage New York City subway trains.

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TransitClick through results

What does the data tell you?

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Transit IMC goals and results

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Swiped ID Theft in America

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1. Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?

2. How do firms use GRP to evaluate the effectiveness of traditional media?

3. How would a firm evaluate the effectiveness of its Google advertising?

CHECK YOURSELF

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Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures.

Glossary

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The click through rate (CTR) is the number of clicks divided by the number of impressions.

Glossary

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The frequency of exposure is how often the audience is exposed to a communication within a specified period of time.

Glossary

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Gross rating points (GRP) represents reach multiplied by frequency.

Glossary

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The number of impressions is the number of times an ad appears in front of a user.

Glossary

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The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.

Glossary

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Online couponing is a promotional Web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store.

Glossary

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Online referring is when consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest.

Glossary

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Reach is the percentage of the target population exposed to a specific marketing communication at least once.

Glossary

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The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost.

Glossary

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Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget.

Glossary

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Social media is media content distributed through social interactions.

Glossary

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Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view.

Glossary