chapter seventeen integrated marketing communications Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LEARNING OBJECTIVES LO 17-1 Identify the components of the communication process. LO 17-2 Explain the four steps in the AIDA model. LO 17-3 Describe the various integrative communication channels. LO 17-4 Explain the methods used to allocate the integrated marketing communications (IMC) budget. LO 17-5 Identify marketing metrics used to measure IMC success. 17-2 Integrated Marketing Communications Results Bing | Decode Jay-Z Case Study 17-3 Communicating with Consumers: The Communication Process Noise from the environment Sender (Firm) Transmitter encodes message Communications channel (Media) Receiver (Consumer) decodes message Feedback 17-4 • Senders first must gain the attention • A multichannel approach increases the likelihood the message will be received Courtesy Peapod Awareness 17-5 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 17-6 Desire I like it I want it blue jean images/Getty Images 17-7 Action Purchase is just one type of action… what other actions can IMC ask consumers to take? ©BananaStock/PunchStock 17-8 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 17-9 check yourself 1. What are the different steps in the communication process? 2. What is the AIDA model? 17-10 • 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 Office Linebacker 17-11 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 17-12 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 Courtesy Dole Food Company, Inc. Retailmenot.com Website 17-13 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 17-14 • Growing element of IMC • Includes e-mail and mcommerce • Good for multicultural groups • Database technology improves Courtesy Global Spec, Inc Direct Marketing 17-15 Blogs Social Media McGraw-Hill Companies, Inc. Marker Dierker, photographer. Online Marketing Websites 17-16 Websites What websites do you visit all the time? Why? 17-17 Blogs What can Southwest learn from their blog? Courtesy Southwest Airlines 17-18 Social Media Advantages to firms? Challenges? 17-19 check yourself 1. What are the different elements of an IMC program? 17-20 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 17-21 Setting and Allocating the IMC Budget Rule-of-thumb methods ©Brand X Pictures/PunchStock Objective-and-task method 17-22 Measuring Success Using Marketing Metrics Frequency Reach Gross rating points Web Tracking Digital Vision/Getty Images 17-23 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. 17-24 check yourself 1. Why is the objective-and-task method of setting an IMC budget better than the ruleof-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? 17-25