CHAPTER 18 INTEGRATED MARKETING COMMUNICATIONS Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18-1 Integrated Marketing Communications LEARNING OBJECTIVES LO1 LO2 LO3 LO4 LO5 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. 18-2 Coca-Cola Jochen Tack/Alamy 18-3 Integrated Marketing Communications Results http://www.youtube.com/watch?v=XNic4wf8AYg 18-4 Communicating with Consumers: The Communication Process Noise from the environment Sender (Firm) Transmitter encodes message Communications channel (Media) Receiver (Consumer) decodes message Feedback 18-5 How Consumers Perceive Communication Receivers decode messages differently Senders adjust messages according to the medium and receivers’ traits ©Stockdisc/Getty Images 18-6 Decoding the Message How does the advertiser help the receiver decode this as a breakfast food Courtesy HJ Heinz Company 18-7 The AIDA Model Awareness Interest Think Desire Action Feel Do 18-8 AIDA Model Where is this ad in the AIDA model? ©2008 KCWW Reprinted with Permission 18-9 Awareness A multichannel approach increases the likelihood the message will be received Courtesy Peapod Senders first must gain the attention 18-10 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 18-11 Desire I like it I want it blue jean images/Getty Images 18-12 Action Purchase is just one type of action… what other actions can IMC ask consumers to take? ©BananaStock/PunchStock 18-13 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 18-14 CHECK YOURSELF 1. What are the different steps in the communication process? 2. What is the AIDA model? 18-15 Elements of an Integrated Marketing Communication Strategy Interactive • Personal selling • Direct marketing (e.g., mobile marketing) • Sales promotions (e.g., contests) • Online marketing (e.g., blogs, social media Online Offline • Direct marketing (e.g., telemarketing) • Advertising • Sales promotions (e.g., coupons) • Direct marketing (e.g., e-mail marketing) • Public relations • Direct marketing (e.g., catalogs) Passive 18-16 Advertising Extremely effective at creating awareness and generating interest Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc. Most visible element of IMC Terry Tate Office Linebacker 18-17 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 18-18 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 Courtesy Dole Food Company, Inc. Retailmenot.com 18-19 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 18-20 Direct Marketing Growing element of IMC Good for multicultural groups Database technology improves Courtesy Global Spec, Inc Includes e-mail and mcommerce 18-21 Adidas Anthony Saint James/Getty Images 18-22 Websites Blogs Social Media McGraw-Hill Companies, Inc. Marker Dierker, photographer. Online Marketing 18-23 Websites What websites do you visit all the time? Why? 18-24 Blogs What can Southwest learn from their blog? Courtesy Southwest Airlines 18-25 Social Media Advantages to firms? Challenges? 18-26 CHECK YOURSELF 1. What are the different elements of an IMC program? 18-27 Planning for and Measuring IMC Success Understand the outcome they hope to achieve Short-term or long-term Should be explicitly defined and measured Lawrence Lawry/Getty Images 18-28 Setting and Allocating the IMC Budget Rule-of-thumb methods ©Brand X Pictures/PunchStock Objective-and-task method 18-29 Rule of Thumb Methods 18-30 Measuring Success Using Marketing Metrics Frequency Reach Gross rating points Web Tracking Digital Vision/Getty Images 18-31 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. 18-32 Transit Click through results What does the data tell you? 18-33 Transit IMC goals and results 18-34 Swiped ID Theft in America 18-35 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? 18-36