chapter sixteen integrated marketing communications McGraw-Hill/Irwin Copyright © 2013 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. 16-2 KFC AP Photo/Brian Bohannon/Kentucky Fried Chicken 16-3 Integrated Marketing Communications Customers IMC Communication channel Results 16-4 Communicating with Consumers: The Communication Process 16-5 How Consumers Perceive Communication Receivers decode messages differently Senders adjust messages according to the medium and receivers’ traits ©Stockdisc/Getty Images 16-6 Decoding the Message How does the advertiser help the receiver decode this as a breakfast food Courtesy HJ Heinz Company 16-7 The AIDA Model 16-8 AIDA Model Where is this ad in the AIDA model? ©2008 KCWW Reprinted with Permission 16-9 • Senders first must gain the attention of the consumers • A multichannel approach increases the likelihood the message will be received Courtesy Peapod Awareness 16-10 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 16-11 Desire I like it I want it blue jean images/Getty Images 16-12 Action Purchase is just one type of action… what other actions can IMC ask consumers to take? ©BananaStock/PunchStock 16-13 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 16-14 check yourself 1. What are the different steps in the communication process? 2. What is the AIDA model? 16-15 Elements of an Integrated Communication Strategy 16-16 • 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 16-17 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 16-18 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 longterm objectives Courtesy Dole Food Company, Inc. http://www.Retailmenot.com Website 16-19 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 16-20 • Growing element of IMC • Includes e-mail and mcommerce • Good for multicultural groups • Database technology improves Courtesy Global Spec, Inc Direct Marketing 16-21 Adidas Anthony Saint James/Getty Images 16-22 Online Marketing Websites Blogs Social Media ©Nokia 2008 16-23 Websites What websites do you visit all the time? Why? 16-24 Blogs What can Southwest learn from their blog? Courtesy Southwest Airlines 16-25 Social Media Advantages to firms? Challenges? 16-26 check yourself 1. What are the different elements of an IMC program? 16-27 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 16-28 Setting and Allocating the IMC Budget Rule-of-thumb methods ©Brand X Pictures/PunchStock Objective-and-task method 16-29 Rule of Thumb Methods 16-30 Measuring Success Using Marketing Metrics Frequency Reach Gross rating points Web Tracking Digital Vision/Getty Images 16-31 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. 16-32 Transit Click through results What does the data tell you? 16-33 Transit IMC goals and results 16-34 Swiped ID Theft in America 16-35 check yourself 1. Why is the objective-and-task method of setting an IMC budget better than the ruleof-thumb methods? 2. How would a firm evaluate the effectiveness of its Google advertising? 16-36