ppt chapter 18

Principles of MarketingMKT3010

Chapter 18 Integrated Marketing

Communications

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

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Integrated Marketing Communications These are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

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.

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Coca ColaA great example of integrated marketing communication appeared during Super Bowl XLVI, when the marketing giant Coca-Cola introduced its integrated marketing event through televised advertising that also drove consumers to its social media marketing channels.


©2006-2012 The Coca-Cola Company.

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Integrated Marketing Communications


The goal of IMC is to ensure all the various marketing mix elements work together to deliver a consistent message. Therefore, IMC takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible.

Customers

Results Communication channel

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Communicating with Consumers: The Communication Process


New media options fragment communications and make it more difficult and complex to reach the desired target audience. What media do you use on a daily basis? Which are new and/or alternative media (compared to television, radio, public relations, etc.). Marketers must understand how the communication process works and identify possible communication breakdowns.

Noise from the environment

Feedback

Receiver(Consumer)

decodes message

Sender(Firm)

Transmitterencodesmessage

Communicationschannel(Media)

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How Consumers Perceive Communication


Marketers must remember that they do not have control over the decoding process, because each receiver decodes the message in his or her own way. Identify advertisements or brand images that often result in different reactions from different consumers (e.g., ads for beer, cigarettes, and personal care products). Why do these ads generate differing responses? For example, a cigarette ad for smokers may arouse smokers and induce the desire for a cigarette. For former smokers it may induce a sense of loss. For non-smokers it may not illicit any emotion.

Receivers decode messages differently

Senders adjust messages according to the medium and receivers’ traits

©Stockdisc/Getty Images

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Decoding the Message


How does this ad handle the challenges of decoding the fact that this is a breakfast food and not a lunch/dinner which is what SmartOnes is known for.

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

Courtesy HJ Heinz Company

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The AIDA Model


The AIDA model provides a basis for understanding how marketing communications works.

Awareness

Interest

Desire

Action

Think

Feel

Do

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AIDA Model Dogs and babies are very good at attracting awareness or advertisements.

Where is this ad in the AIDA model?

©2008 KCWW Reprinted with Permission


Awareness The now-famous Joe Camel study, which found a majority of three-year-old children were aware of Joe Camel, the spokes character for Camel cigarettes. The study’s authors suggested awareness would lead to smoking. But, does awareness always translate to action? No! How does the ad in the slide create awareness for Peapod?

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• Senders first must gain the attention

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

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Interest


What can IMC prompt consumers to do – other than to purchase the product? Behavioral changes (don’t drink and drive), attitude changes (that product is high quality), or physical actions (pick up the phone, log on to the Website, volunteer).

©2010 Dell Inc All Rights Reserved

©2010 Dell Inc All Rights Reserved

• After awareness comes persuasion

• The customer must want to further investigate the product/service

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Desire


After the firm has piqued the interest of its target market, the goal of subsequent IMC messages should move the consumer from “I like it” to “I want it.”

I like it I want it

blue jean images/Getty Images


Action Think about products that you had IMC exposure to, but did not purchase immediately. Which IMC exposure moved you to purchase?

Purchase is just one type of action… what other actions can

IMC ask consumers to take?

©BananaStock/PunchStock

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The Lagged Effect


Sometimes consumers don’t act immediately after receiving a marketing communication because of the lagged effect —a delayed response to a marketing communication campaign.

©image100/PunchStock

• Advertising does not always have an immediate impact

• Multiple exposures are often necessary

• It is difficult to determine which exposure led to purchase


Check Yourself

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

2. What is the AIDA model?

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Elements of an Integrated Marketing Communication Strategy


To get the right message to the right audience through the right medium, an IMC planner must understand how each medium communicates and how to combine it with other media to generate the most impact.

• 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)

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Advertising Chapter Nineteen covers advertising, the most visible element of IMC, in depth. Think about how an advertisement has made you aware of or interested in a specific product. “Advertainment” is advertising that is focused on entertaining the end user. One of the earliest and best examples are Reebok’s Terry Tate ads. This YouTube link (always check before class) will show the original ad which was aired on the 2003 Superbowl.

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• Most visible element of IMC

• Extremely effective at creating awareness and generating interest

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Public Relations (PR)


Do you view PR as credible, because they are not “advertisements,” or not credible, because they come from the company?

Courtesy Citirx Online, LLC

• “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


Sales Promotions Sales promotions can be used in a wide variety of situations to stimulate demand among either end users or other channel members. There are many websites that distribute coupons. This web link is for retailmenot.com, one of the more popular coupon sharing site.

Courtesy Dole Food Company, Inc.

• 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


Personal Selling Think about what kind of purchases personal selling most appropriate is most appropriate for. This form of IMC works best when the purchase is complicated, because the salesperson can customize the communication to meet the needs of that specific buyer and purchase situation, which other IMC elements cannot.

Royalty-Free/CORBIS

• 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


Direct Marketing As advertising has declined as a percentage of the total communications budget, direct marketing has increased. Direct marketing allows marketers to personalize their message. This enables marketers to communicate with an audience that is more likely to respond to their efforts. The text has some excellent examples of Meijer, Toys “R” Us and Best Buy using m-commerce.

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• Growing element of IMC

• Includes e-mail and m-commerce

• Good for multicultural groups

• Database technology improves


AdidasThe sponsorship of athletes can benefit and harm firms. With a popular athlete, firms stand to gain a lot of sales, but when a star athlete becomes a liability, firms quickly distance themselves and focus on another branding element.

Anthony Saint James/Getty Images


Online Marketing Firms that use text messaging to disseminate marketing communications may face a backlash against the firm and the wireless provider if consumer phones are constantly flooded with such messages. How would you like to receive advertising text messages?

Websites

Blogs

Social Media

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WebsitesWhy do you love about the sites you visit all the time? Easy to use (good navigation)? Good sales and specials (product decisions)? Fun (entertainment)?

What websites do you visit all the time?

Why?


Blogs Southwest can learn what customers have to say… What they are interested in learning about products, company culture, and new product launches. Many firms are still experimenting with blogs; in 2006 Wal-Mart got in trouble for failing to disclose a blog written by two cross-country travelers was sponsored by the retailer.

What can Southwest learn from their blog?

Courtesy Southwest Airlines


Social Media Social media is media content distributed through social interactions. Three major online facilitators of social media are YouTube, Facebook, and Twitter.

Advantages to firms? Challenges?


Check Yourself

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


Planning for and Measuring IMC Success How do firms determine whether their IMC strategy has worked? Determining whether your IMC “worked” or not depends on the IMC objective. If the objective is to create awareness for a new product, then the firm would measure increases in customer knowledge and awareness. If it were to generate sales, like an ad in the paper, then sales would be the objective measure.

Understand the outcome they hope to achieve

Short-term or long-term

Should be explicitly defined and measured

Lawrence Lawry/Getty Images


Setting and Allocating the IMC BudgetMany IMC elements require significant expenditures, and firms are reluctant to invest in marketing communications without some guarantee of return.

Objective-and-Task Method

Rule-of-Thumb Methods

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Rule of Thumb Methods


Measuring Success Using Marketing MetricsEvery communication may be measured in terms of reach and frequency. Remind students that because of the lagged effect, marketers must not only expose the target audience to the message but also ensure that it has multiple opportunities to view it. This combined measure is GRP.

Frequency

Reach

Gross Rating Points

Web TrackingDigital Vision/Getty Images


Search Engine MarketingThink about what Transit would want to measure if they were buying Google adwords for “sneaker store” and “NYC sneakers.”

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.


Transit: Click Through Results He can see his total cost in column 3 and the sales from his adwords in column 4. The ROI in column 6 is higher for “sneaker store” due to its lower cost even though the sales were a bit lower.

What does the data tell you?


Transit: IMC Goals and Results


Check Yourself

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?

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Glossary


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

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

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

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

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

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

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.

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.

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Glossary


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

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

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

Social media is media content distributed through social interactions.

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

ppt chapter 18

Marketing

marketing giant

marketing metrics

integrated marketing

various marketing mix

imc prompt consumers

communications medium

goal of imc

imc exposure