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1 Chapter seventeen integrated marketing communications 1
2 Integrated Marketing Communications LO 17-1 Identify the components of the communication process. LO 17-2 Explain the four steps in the AIDA model. LO 17-3 Describe the various integrative communication channels. LO 17-4 Explain the methods used to allocate the integrated marketing communications (IMC) budget. LO 17-5 Identify marketing metrics used to measure IMC success. 2
3 Coca-Cola 3
4 Communicating with Consumers: The Communication Process Noise from the environment Sender (Firm) Transmitter encodes message Communications channel (Media) Receiver (Consumer) decodes message Feedback 4
5 How Consumers Perceive Communication Receivers decode messages differently Stockdisc/Getty Images Senders adjust messages according to the medium and receivers traits 5
6 The AIDA Model Awareness Think Interest Desire Feel Action Do 6
7 Courtesy Peapod Awareness Senders first must gain the attention An omnichannel approach increases the likelihood the message will be received 7
8 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 8
9 Desire I like it I want it blue jean images/getty Images 9
10 Action Purchase is just one type of action what other actions can IMC ask consumers to take? BananaStock/PunchStock 10
11 The Lagged Effect Advertising does not always have an immediate impact Multiple exposures are often necessary image100/punchstock It is difficult to determine which exposure led to purchase 11
12 check yourself 1.What are the different steps in the communication process? 2.What is the AIDA model? 12
13 Offline Elements of an Integrated Marketing Communication Strategy Interactive Personal selling Sales promotions (e.g., contests) Direct marketing (e.g., telemarketing) Direct marketing (e.g., mobile marketing) Online marketing (e.g., blogs, social media Advertising Sales promotions (e.g., coupons) Public relations Direct marketing (e.g., catalogs) Direct marketing (e.g., marketing) Online Passive 13
14 Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc. Advertising Most visible element of IMC Extremely effective at creating awareness and generating interest 14
15 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 15
16 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 longterm objectives Courtesy Dole Food Company, Inc. Retailmenot.com 16
17 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 17
18 Courtesy Global Spec, Inc Direct Marketing Growing element of IMC Includes and m- commerce Good for multicultural groups Database technology improves 18
19 McGraw-Hill Companies, Inc. Marker Dierker, photographer. Online Marketing Websites Blogs Social Media 19
20 Websites What websites do you visit all the time? Why? 20
21 Blogs What can Southwest learn from their blog? Courtesy Southwest Airlines 21
22 Social Media Advantages to firms? Challenges? 22
23 check yourself 1.What are the different elements of an IMC program? 23
24 Planning for and Measuring IMC Success Understand the outcome they hope to achieve Short-term or longterm Should be explicitly defined and measured Lawrence Lawry/Getty Images 24
25 Brand X Pictures/PunchStock Setting and Allocating the IMC Budget Objective-and-task method Rule-of-thumb methods 25
26 Rule of Thumb Methods Method Definition Limitations Competitive parity Percentageof-sales Available budget The communication budget is set so that the firm s share of communication expenses equals its share of the market. The communication budget is a fixed percentage of forecasted sales. Marketers forecast their sales and expenses, excluding communication, during the budgeting period. The difference between the forecast sales and expenses plus desired profit is reserved for the communication budget. That is, the communication budget is the money available after operating costs and profits have been budgeted. Does not allow firms to exploit the unique opportunities or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time. Assumes the same percentage used in the past, or by competitors, is still appropriate for the firm. Does not take into account new plans (e.g., to introduce a new line of products in the current year). Assumes communication expenses do not stimulate sales and profit. 26
27 Measuring Success Using Marketing Metrics Frequency Reach Gross rating points Web Tracking Digital Vision/Getty Images 27
28 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. 28
29 check yourself 1.Why is the objective-and-task method of setting an IMC budget better than the ruleof-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? 29
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