CHAPTER Day 21 BUS 222 Agenda • Questions? • Assignment is on its way will be due April 30 • Marketing plans Due May 10 – 5 min presentation on May 8 – Marketing plan guidelines and example.pdf • Next Quiz is April 23 – Chaps 15 & 16, 10 questions & 1 extra credit – 30 mins open book, open notes • Discussion on Integrated Marketing Communications 15-2 Remaining Schedule • Today • May 3 – Chap 17 Integrated Marketing Communications • • Apr 23 – Quiz 6 • Apr 26 – Chap 18 Advertising, Public relations and sales, promotion – Quiz 7 May 8 @ 10 AM – Marketing plan presentations • May 10 – Completed marketing plans due @ 3 PM • Apr 30 – Chap 18 Personal Selling and sales management – Assignment 7 due? 15-3 CHAPTER INTEGRATED MARKETING COMMUNICATIONS McGraw-Hill/Irwin 17 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Integrated Marketing Communications LEARNING OBJECTIVES LO1 Identify the components of the communication process. LO2 Explain the four steps in the AIDA model. LO3 Describe the various integrative communication channels. LO4 Explain the various ways used to allocate the IMC budget. LO5 Identify marketing metrics used to measure integrated marketing communications (IMC) success. 17-5 KFC AP Photo/Brian Bohannon/Kentucky Fried Chicken 17-6 Integrated Marketing Communications Customers IMC Communication channel Results 17-7 Communicating with Consumers: The Communication Process 17-8 How Consumers Perceive Communication Receivers decode messages differently Senders adjust messages according to the medium and receivers’ traits ©Stockdisc/Getty Images 17-9 Decoding the Message How does the advertiser help the receiver decode this as a breakfast food Courtesy HJ Heinz Company 17-10 The AIDA Model 17-11 AIDA Model Where is this ad in the AIDA model? ©2008 KCWW Reprinted with Permission 17-12 • Senders first must gain the attention of the consumers • A multichannel approach increases the likelihood the message will be received Courtesy Peapod Awareness 17-13 Interest • After the customer is aware, they must be persuaded • The customer must want to further investigate the product/service ©2010 Dell Inc All Rights Reserved ©2010 Dell Inc All Rights Reserved 17-14 Desire I like it I want it blue jean images/Getty Images 17-15 Action Purchase is just one type of action… what other actions can IMC ask consumers to take? ©BananaStock/PunchStock 17-16 The Lagged Effect ©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 17-17 Check Yourself 1. What are the different steps in the communication process? 2. What is the AIDA model? 17-18 Elements of an Integrated Communication Strategy 17-19 • Most visible element of IMC • Extremely effective at creating awareness and generating interest Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc Advertising Terry Tate/Reebok Commercial 17-20 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 17-21 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. http://www.Retailmenot.co m Website 17-22 Personal Selling 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 17-23 Direct Marketing Growing element of IMC Includes e-mail and m-commerce Good for multicultural groups Database technology improves Courtesy Global Spec, Inc • • • • 17-24 Adidas Anthony Saint James/Getty Images 17-25 Online Marketing Websites Blogs Social Media ©Nokia 2008 17-26 Websites What websites do you visit all the time? Why? 17-27 Blogs What can Southwest learn from their blog? Courtesy Southwest Airlines 17-28 Social Media Advantages to firms? Challenges? 17-29 Check Yourself 1. What are the different elements of an IMC program? 17-30 Planning and Measuring IMC Success • Understand the outcome they hope to achieve before they begin • Short-term or longterm • Should be explicitly defined and measured Lawrence Lawry/Getty Images 17-31 Setting and Allocating the IMC Budget Rule-of-thumb methods ©Brand X Pictures/PunchStock Objective-and-task method 17-32 Rule of Thumb Methods 17-33 Measuring Success Using Marketing Metrics Frequency Reach Gross rating points= Reach x Frequency Web Tracking Digital Vision/Getty Images 17-34 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. 17-35 Transit Click through results What does the data tell you? 17-36 Transit IMC goals and results 17-37 Swiped ID Theft in America 17-38 Check Yourself 1. Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods? 2. How would a firm evaluate the effectiveness of its Google advertising? 17-39