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Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin

An Introduction to Integrated

Marketing Communications

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The Modern World of Marketing

• Rapidly changing media environment

• Mass media losing viewers, readers, listeners

• Digital media targets narrow audience

• Consumers not content to be passive message recipients

• Information now obtained from a myriad of sources

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The Growth of Advertising and Promotion

• Integral part of social and economic systems• Carefully prepared messages delivered

to carefully targeted audiences

• Six-fold increase between 1980 and 2010

• New marketing channels• Search, display, video, content

• Social media

• Mobile marketing

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What is Marketing?

The activity, set of institutions, and processes for…

creating, communicating, delivering, and exchanging offerings that have…

value for customers, clients, partners, and society at large

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The Marketing Revolution

Shift from traditional media ads to other forms

of promotion/nontraditional media

Internet and social media changing how

companies interact with consumers

Power shift: manufacturers to retailers

Database marketing

Greater ad agency accountability

Changes in how ad agencies are compensated

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What is IMC?

• As defined by the AAAA, Integrated Mktg Communication:

• “recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact."

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Promotion: 1 of 4 P’s

• Personal Selling

• Mass Selling

• Advertising

• National

• Retail/Local

• Primary Demand vs Selective Demand

• B2B

• Professional

• Trade

• Publicity

• Sales Promotion

• Internal

• External

• Direct Marketing

• Here’s where it gets fuzzy:

• Interactive

• Guerrilla

• Event

• Etc.1-8

Media Integration

Paid

EarnedOwned

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Growing Importance of IMC

• Value of IMC

• Avoids duplication of marketing efforts

• Synergy among promotional tools

• More efficient and effective marketing

• Rapidly changing environment

• Consumer behavior

• Technology

• Media consumption behavior

• Proliferation of media

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Integration

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Touch Points: Control vs. Impact

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The Nature of Communication

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Source Encoding

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Forms of Encoding

GraphicVerbal Musical Animation

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An Image Can Convey More Than Words

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Marketers Embrace Buzz Marketing –Due to Source Credibility

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Field of Experience Overlap

ReceiverExperience

SenderExperience

Different Worlds

ReceiverExperienceSender

Experience

Moderate Commonality

ReceiverExperienceSender

Experience

High CommonalityReceiver

Experience

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The Response Process

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Alternative Response Hierarchies

High Low

Hig

hLow

Topical Involvement

Perceiv

ed

pro

du

ct

dif

feren

tiati

on

Learningmodel

Low involvementmodel

Dissonance/attribution model

Cognitive

Affective

Conative

Conative

Affective

Cognitive

Cognitive

Conative

Affective

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The FCB Planning Model

1InformativeThe Thinker

3HabitualThe Doer

Thinking Feeling

Low

In

volv

em

ent

2Affective

The Feeler

4SatisfactionThe Reactor

Hig

h

Involv

em

ent

FCBBreakdown

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FCB Planning Model, Product Categories

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FCB Model, Promotional Methods

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Developing Promotional Strategies

• Ad options based on the FCB grid

• Rational versus emotional appeals

• Increasing involvement levels

• Evaluation of a think-type product on the basis of feelings

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A Model of Cognitive Response

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Cognitive Response Categories

Counterarguments Support arguments

Source derogation Source bolstering

Thoughts about

the ad itself

Affect attitude

toward the ad

Product/Message Thoughts

Source-Oriented Thoughts

Ad Execution Thoughts

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Elaboration Likelihood Model (ELM)

Focuses on the way consumers respond to persuasive

messages, based on the amount and nature of elaboration

or processing of information

Peripheral route –ability and motivation to process a message is low; receiver focuses more on peripheral cues than on message content

Central route –ability and motivation to process a message is high and close attention is paid to message content

Routes to Attitude Change

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Peripheral Cues

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Branding

Brand Identity

vs.

Brand Equity

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Market Channels

Sets of interdependent organizations involved in the process of making a product or service available for use

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Channels and Image

• Channels can impact communication objectives

• Image

• Store displays

• Point-of-purchase merchandising

• Shelf footage

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Source Attractiveness

Resemblance

between the

source and

recipient of the

message

Similarity

Knowledge of the

source through

repeated or

prolonged

exposure

Familiarity

Affection for the

source resulting

from physical

appearance,

behavior, or

personal traits

Likeability

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Source Attributes & Receiver Processing Modes

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Experts Lend Authority to an Appeal

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Limitations of Credible Sources

• High- and low-credibility sources

• Equally effective when arguing for a position opposing their own best interest

• Sleeper effect

• Persuasiveness increases over time

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Top Celebrity Endorsers

• Top male endorsers

• Tiger Woods

• Phil Mickelson

• LeBron James

• Michael Jordan

• Top female endorses

• Maria Sharapova

• Jennifer Lopez

• Jessica Simpson

• Venus/Serena Williams

• Michele Wie

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Advertising Risks of Using Celebrities

The celebrity’s behavior may pose a risk to the company

The celebrity may overshadow the product being endorsed

The celebrity may be overexposed, reducing his or her credibility

The target audience may not be receptive to celebrity endorsers

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Kelly Ripa: The “Do-it-All” Woman

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Q-Score = Star Power

• Q-Score Formula

• The percent of those who say “one of my favorites”

• Divided by the percent who have heard of him/her

Lance Armstrong

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Applying Likability: Decorative Models

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Source Power

Perceived control

Perceived concern

Perceived scrutiny

Compliance

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Tim Tebow, Quarterback and Outspoken Christian

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Virginia Rommety, President & CEO, IBM

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Zac Brown, Emmy Award-winning Alt-Country Artist

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Open Ended Message

• Allows or requires the receiver to draw the conclusion

• Pros/Cons?• Examples?

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Two-Sided Appeal

• Presents two points of view and then presents arguments support preferred view

• Pros/Cons?• Examples?

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Refutation Message

• Presents two points of view and then presents arguments to counter the opposing view

• Pros/Cons?• Examples?

“Some say that…”1-48

Comparative Message

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Recall and Order of Presentation

Recall

Beginning Middle End

Order of Presentation

• Primacy effect vs. Recency effect1-50

Differences in Information Processing

Self-PacedMedia

• Newspapers

• Magazines

• Direct Mail

• Internet

• Radio

• Television

Externally Paced Media

vs.

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Context and Environment

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Commercial Clutter is a Problem

• Message can be lost in the clutter

• Worse yet, can become PART of the clutter if poorly planned

• “Half the money I spend on advertising

is wasted; the trouble is I don't know

which half. ”

» Jay Wanamaker

• “We may not now, or ever, know

definitively how advertising works…

…but we do know it works in some

definable ways well enough to make

more effective advertising.”

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How Advertising Works:

What Do We Really Know?

• Reviews 250+ articles / books

• 7 types of models & findings

– Example: FCB Grid

– Affect, Cognition, and Behavior

• 5 generalizations about how advertising

works

• Directions for future research

Generalization 1

• Behavior, affect, and cognition are the

three intermediate advertising effects,

and the omission of any one can lead to

overestimation of the effect of the others

Demonstrated in the evolution of

models from simple (C) to more

complex ([C][A][B]).

Generalization 2

• Short-term advertising elasticities are

small and decrease during the product

life cycle.

Lower than sales promotions

Weaker than product usage (E) effects

Greater for new brands

Generalization 3

• In mature, frequently purchased packaged goods markets, returns to advertising diminish fast. A small frequency, therefore (1-3 per purchase cycle), is sufficient for advertising an established brand.

Diminishing returns

First exposure is most influential.

Generalization 4

• The concept of a space of intermediate

effects is supported, but a hierarchy

(sequence) is not.

Significance of intermediate effects (C,

A, and E) depends on context.

Hierarchy framework does not allow for

interactions between effects.

Generalization 5

• Cognitive bias interferes with affect

measurement.

Affect is often more important than

cognition.

Cognitive bias understates the role of

affect and misreports reality.

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Advertising's Role in Markets: What

Do We Know and Where Do We Go

from Here?

• 9 misconceptions about advertising.

• Advertising is essential for free markets.

• Where do we go from here?

Misconception 1: Advertising is a powerful

force in shaping consumer preferences.

• Some advertisements are.

• Potential is there.

• Most advertising is lost in the noise (or worse, adds to the noise).

• Even success is quickly imitated.

This is the nature of a free, competitive market.

Misconception 2: Even if advertising does

not work immediately, repetition will ensure

its ultimate effectiveness.

• Consumers haven’t seen it, they need

more time, etc.

• “Escalation of commitment”

In current environment, if advertising

doesn’t work in a reasonably short time

it is unlikely to ever work.

Misconception 3:

Advertisements take time to wear in.

• “Wearin” = improvement of

effectiveness during first few weeks.

• “Wearout” = decline in effectiveness as

campaign ages.

“Wearin” is short or nonexistent and

“wearout” starts right away.

Misconception 4: The effects of advertising

last for years and even decades.

• While we DO remember old ads, old

research used inappropriate data and

analytics.

Effects of advertising are rather fleeting.

Misconception 5: Even if advertising seems

ineffective, stopping would be dangerous.

• Argue that suspension could be

disastrous.

• Or that competitors’ ads would be more

effective.

Argument is not tested.

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Misconception 6:

Weight (or intensity or frequency) is critical.

• The most expensive item in the ad budget is the advertising buy expressed as weight.

Big changes in weight may not result in even small changes in effectiveness.

Changes in target segments, media, message, and especially creative content result in biggest change in effects.

Ad response is highest for product improvement or new products.

Misconception 7:

Advertising is highly profitable.

• Spurious correlation between

advertising intensity and market share.

Because of the competitive activity,

much advertising cancels out.

Beware over-advertising: adding to

costs more than to profits.

Misconception 8: Logic or argument is the

most effective advertising appeal.

• Consumers like to think of themselves

as rational decision makers who make

good if not wise decisions.

Emotional ads are more interesting,

more easily remembered, more prone to

lead to action, and less likely to arouse

consumers’ defenses.

Misconception 9: Advertising is amoral in its

practice, corrupts people’s values, or is

unnecessary for free markets.

As a relatively weak market force (see

misconceptions 1-8), advertising

probably has little effect on values.

Essential for free markets: the means

by which an innovative firm can

communicate its brands competitive

superiority to consumers.

Where do We Go from Here? Effects on mental processes

• Multiple routes to persuasion

ELM (central vs. peripheral processing)

• Power of emotional appeals.

• Consistency of cues enhances

persuasion.

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Focus on multiple senses

• Buyology: fMRI research found visual

images are weakest route to persuasion

• Visuals are most effective if combined

with sounds and smell for a more

complete experience of the product.

– Nokia ringtone

– Honeydew Melon in Samsung packaging

– Marlboro red coloring on objects

Neuromarketing gets to the

root of advertising effects

• https://www.youtube.com/watch?v=M6U

zQU5Ye3U

Hierarchy of Effects

• Cognition

• Affect

• Behavior

• Consider focus based on purchase

involvement: which should come first?

How quickly should the next effect be

introduced?

Order of effects?

• High Involvement:

New House

– How is it shopped

for?

– How is it sold by the

industry?

• Low Involvement:

Kettle Corn

– How is it shopped

for?

– How is it sold by the

industry?

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Consumer Behavior

The process and activities people engagein when searching for, selecting, purchasing,

using, evaluating, and disposing ofproducts and services

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Promotional Messaging:

• Use our knowledge of our target consumer’s behaviors to:

• Influence behaviors

• Short term – sales orientation

• Change or shape attitudes

• Long term – branding and positioning

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The Nature of Consumer Behavior

Overall Conceptual Model of Consumer Behavior

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Consumer Decision Making

Decision Stage Psychological Process

LearningPost-purchase evaluation

Problem recognition Motivation

Information search Perception

Alternative evaluation Attitude formation

Purchase decision Integration

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External Influences on Consumer Behavior

Culture

Subculture

Social Class

Reference Group

Situational determinants

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Reference Groups

• A group whose perspectives or values are being used as the basis for one’s…

• Judgments

• Opinions

• Actions

• Types of reference groups

• Associative

• Aspirational

• Disassociative

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Reference Group Influences on the

Consumption ProcessConsumption Situation Determinants of Reference Group Influence

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Communications within Groups and

Opinion Leadership

Mass Communication Information Flows

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The Nature of Perception

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Evaluation of Alternatives

All Available Brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand I

Brand M

Brand F

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Ways to Change Attitudes

Change perceptions or beliefs about a competing brand

Add a new attribute to the attitude formation mix

Change perceptions of the value of an attribute

Change beliefs about an important attribute

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Adding Attributes Changes Attitudes

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How Consumers Learn

Conditioning

Based on

conditioning

through

association or

reinforcement/

punishment

Thinking

Based on

intellectual

evaluation and

problem

solving

Modeling

Based on

emulation

(copying) of

behavior of

others

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Classical Conditioning Process (Association)

Unconditioned stimulus

(lollipop)

Conditioned stimulus

(Mariah’s Lollipop Bling)

Unconditioned response

(sweetness)

Conditioned stimulus

(sweetness)

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Lollipop Bling Uses Classical Conditioning

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Instrumental Conditioning Process

Behavior (consumer uses product or

service)

Positive or negative consequences occur from use of product, leading to reward or

punishment

Increase or decrease in probability of repeat behavior (purchase)

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Shaping

Shaping is the reinforcement of

successive acts that lead to a desired

behavior pattern

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The Shaping Process

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Situational Characteristics and

Consumption Behavior

The five key dimensions or characteristics are

1. Physical surroundings: atmospherics, servicescape

2. Social surroundings: others present in the situation

3. Temporal perspectives: effect of time

4. Task definition: the main reason for purchase

5. Antecedent states: moods, momentary conditions

Situations can be described on a number of dimensions

which determine their influence on consumer behavior.

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Situational Characteristics and

Consumption Behavior

Components of physical surroundings:

1. Colors

2. Aromas

3. Music

4. Crowding

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