Week Nine
Integrated
Marketing
Communications
Ajax Persaud Shirley Lichti
Dhruv Grewal Michael Levy
Copyright © 2012 McGraw-Hill Ryerson Limited

Chapter Objectives
L E A R N I N G O B J E C T I V E S
LO1 Outline the process that firms use to communicate with consumers
LO2 Explain the six tools of integrated marketing communication campaigns
LO3 List the steps in planning an integrated marketing communication campaign
LO4 Describe what appeals advertisers use to get customers’ attention
LO5 Identify how firms determine which media to use
LO6 Summarize how firms budget for and measure integrated marketing communications success
14-2

Chapter Roadmap
14-3

I’m Lovin’ It




New tagline introduced in
2003
Platform for global integrated marketing communications
Campaign is well-recognized and well-liked worldwide
Delivers a consistent message and lowers costs
LO1
14-4

Communicating with Consumers:
The Communication Process
LO1
14-5

Test Your Knowledge
Which of the following is NOT considered a form of feedback?
A)
B)
C)
D)
A customer’s purchase of an item
A complaint or compliment
The redemption of a coupon or rebate
A customer telling their friend about a purchase
14-6

How Consumers Perceive
Communication


Receivers decode messages differently
Senders adjust messages according to the medium and receivers’ traits
14-7

Decoding the Message
LO1
How does the advertiser help the receiver decode this as a breakfast food
14-8

Is It Deception to Disguise the Message Sender?



Marketers use websites to promote movies and
TV shows
Some sites do not identify that they are promotional tools
Is this deception?
LO1
14-9

Integrated Marketing Communication
Tools
LO2
14-10

Advertising


Most visible element of IMC
Extremely effective at creating awareness and generating interest
LO2
Terry Tate/Reebok
Commercial
14-11

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
LO2
14-12

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
LO2
14-13

Direct Marketing
LO2
14-14

Direct Marketing Characteristics
• Annual growth rates outstrip retail sales
• One of the fastest-growing forms of retailing with $51 billion in annual sales
• Four defining characteristics:
• targeted
• motivates an action
• measurable
• can provide information for a marketing database
LO2
14-15

Forms of Direct Marketing
Direct Mail targeted, printed communication sent to a prospective consumer’s mailbox
FedEx customer acquisition campaign direct mail cube
LO2
14-16

Forms of Direct Marketing
Catalogues
• hard copy and online
• welcomed in 80% of
Canadian homes
• E.g. Sears, Ikea, and
Business Depot
LO2
14-17

Forms of Direct Marketing
DRTV
• short television commercials and/or infomercials
• strong call to action via
1-800 number, mail or website
• For example, Canadian
Blood Services Save a
Life campaign
LO2
14-18

Forms of Direct Marketing
Kiosks
• Facilitate service delivery, e.g. airline ticket printing
• Sell services and products to consumers, e.g. Dell, Virgin Mobile,
Hallmark
LO2
14-19

Online Marketing
Websites
Blogs
Social Media
LO2
14-20

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
LO2
14-21

PR Toolkit
LO2
14-22

Sponsorship in Motion
What do sponsors do when top athletes change teams?
LO2
14-23

Test Your Knowledge
What is the key benefit of public relations versus other forms of marketing communications?
A)
B)
C)
D) it is “free” it is often more credible can reinforce the advertising these are all benefits of PR
14-24

Steps in Planning an IMC Campaign
LO3
1. Identify
Target
Audience
2. Set
Objectives
3. Determine the Budget
4. Convey the Message
5. Evaluate and Select
Media
6. Create
Communication
7. Assess
Impact
Marketing Magazine
Website
14-25

1. Identify Target Audience
Tone of
Message
Appeal
Inform
Persuade
Remind
Generate
Awareness or Trial
Mass or
Niche Media
Tracking
LO3
14-26

2. Set Objectives
LO3
• Pull strategy • Push strategy
• Nature of the market
• Nature of the product
• Stage in the product life cycle
14-27

Test Your Knowledge
Which of the following attempts to motivate the retailers to purchase one firm’s product, rather than the products of competitors?
A)
B)
C)
D) advertising plan informative advertising push strategy pull strategy
14-28

3. Determine Budget
Considerations
Role that advertising plays in their attempt to meet their overall promotional objectives
Expenditures vary over the course of the Product Life Cycle
Nature of the market and the product influence the size of the budget
LO3
14-29

Budgeting Methods
Objective-and-task method
Sets communication objectives first, then determines best tools and media to reach target markets
Competitive parity Match budgets of competitors
Percentage of sales Fixed percentage of forecast sales
Affordable budgeting Money available after accounting for operating costs and profits
LO3
14-30

Budgeting
LO3
14-31

Test Your Knowledge
In which budgeting method assumes communication expenses do not stimulate sales and profit?
A)
B)
C)
D) competitive parity objective and task affordable budgeting percentage-of-sales
14-32

4. Convey the Message
Unique selling proposition
Boost Mobile….Where you at?
Nokia….. Connecting People
LO4
14-33

The Appeal
LO4
Rational appeal Emotional appeal
14-34

The Appeal
LO4
Rational appeal Emotional appeal
14-35

5. Evaluate and Select Media
Media planning
Media mix
Media buy
LO5
14-36

Mass and Niche Media
LO5
Mass media reach large anonymous audience
Niche media reach a smaller more targeted audience
14-37

Choosing the Right Medium
LO5
14-38

Choosing the Right Medium
(continued)
LO5
14-39

Determine the Advertising Schedule
LO5
Continuous
Pulsing
Flighting
14-40

6. Create Communications
Creativity plays a major role in
The type of medium the execution determines the execution style stage
Creativity should not overshadow the message
The execution style must match the medium and objectives
Communications
LO5
14-41

Creative Elements
What appeal is being used in this ad?
Is the ad effective in delivering the selling message?
LO5
14-42

Test Your Knowledge
When employing a combination of media, why must advertisers maintain consistency across the execution styles?
A)
B)
C)
D)
To deliver a consistent and compelling message
To reduce costs on the advertising budget
To impact the largest part of their target audience
To increase exposure time
14-43

Managing Creative Elements
What to do if creative elements don’t deliver the selling message?
LO5
14-44

7. Assess Impact
Using Marketing Metrics
Pretesting
Tracking
Protesting
LO6
14-45

LO6
Results: Measuring IMC Success



Understand desired outcome at outset
Short-term or long-term
Should be explicitly defined and measured
Frequency
Reach
Gross rating points
Web Tracking
14-46

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.
LO6
14-47

Transit
Click through results
LO6
What does the data tell you?
14-48

Transit IMC goals and results
LO6
14-49