Marketing Management

Chapter 18 Integrated Marketing

Communications

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Learning Objectives

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Learning Objective 18.1 Identify the components of the

communication process.

Learning Objective 18.2 Explain the four steps in theAIDA

model.

Learning Objective 18.3 Describe the various integrative

communication channels.

Learning Objective 18.4 Explain the methods used to

allocate the integrated marketing communications

(IMC) budget.

Learning Objective 18.5 Identify marketing metrics used

to measure IMC success.

Pepsi

“Say It With Pepsi” campaign integrated television

advertising, digital advertising, and

communications created by packaging.

By adding emojis to product labels, Pepsi is

connecting its retail efforts with digital marketing.

“Say It With Pepsi”

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Integrated Marketing Communications

Results of the

communication

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Communicating with Consumers:

Exhibit 18.1: The Communication Process

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image description © McGraw-Hill Education

© McGraw-Hill Education

How Consumers Perceive Communication

Receivers decode

messages differently.

Senders adjust

messages according to

the medium and

receivers’ traits.

6 ©imago

stock&people/Newscom

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Exhibit 18.2: The AIDA

Model

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image description © McGraw-Hill Education

The AIDA Model:

Awareness

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Senders first must gain the attention of the

consumer.

Awareness metrics include:

•Aided recall

•Top-of-mind awareness

The AIDA Model:

Interest

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After awareness comes interest.

The customer must want to further investigate the

product/service.

Interest can also be sparked by a little controversy

(Ethical and Social Dilemma 18.1: The Need to

Take Risks in IMC).

The AIDA Model:

Desire

I like it

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I want it

The AIDA Model:

Action

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The ultimate goal of any form of communications is

to drive the receiver to action.

But purchase is just one type of action.

What other actions can IMC ask consumers to

take?

The Lagged Effect

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Marketing communications do not always have an

immediate impact.

Multiple exposures are often necessary.

It is difficult to determine which exposure led to

purchase.

PROGRESS CHECK (1 of 3)

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1.What are the different steps in the

communication process?

2.What is the AIDAmodel?

Channels Used in an IMC Strategy

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image description © McGraw-Hill Education

Advertising

Most visible element of an IMC strategy.

Extremely effective at creating awareness and

generating interest.

Terry Tate commercial

https://www.youtube.com/watch?v=Zo

SCRHVuBkY

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Public Relations (PR)

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“Free” media attention.

Importance of PR has grown as the cost of other

media has increased.

As consumers are becoming more skeptical about

marketing, PR is becoming more important.

Sales Promotions

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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.

Personal Selling

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A two-way communication between the buyer and

seller to influence buying decisions.

Some products require the help of a salesperson.

More expensive than other forms of promotion.

Salespeople can add significant value, which can

make the expense worth it.

Direct Marketing

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Communicating directly with target customers to

generate a response or transaction.

Growing element of IMC.

Improvements in database technology have

contributed to the rapid growth.

Ability to carefully target consumers.

Includes e-mail and mobile marketing.

Examples of Mobile Marketing Campaigns

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Online Marketing

Websites

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Blogs

Social

Media

Online Marketing: Websites

What websites

do you visit all

the time?

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Why?

Online Marketing: Blogs

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Blogs can:

• communicate trends

• announce special events

• create positive word-of-mouth

• connect customers

• allow the company to respond to customers

• encourage customers to develop a long-term relationship with the

company.

Blogs are becoming more interactive as the communication

between bloggers and customers has increased.

Blogs can be linked to other social media.

Online Marketing: Social Media

Advantages

to firms?

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Challenges?

PROGRESS CHECK (2 of 3)

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1.What are the different elements of an IMC

program?

Planning for and Measuring IMC Success:

Goals

Understand the

outcome the firm hopes

to achieve

Short-term or long-term

Should be explicitly

defined and measured

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Examples of Marketing Goals and the

Related Campaigns

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Planning for and Measuring IMC Success:

Setting and Allocating the IMC Budget

Rule-of-thumb

methods

Objective-and-task

method

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Exhibit 18.6: Rule-of-Thumb Methods (1 of 2)

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Method Definition Limitations

Competitive

parity

The communication budget is set

so that the firm’s share of

communication expenses equals

its share of the market.

Does not allow firms to exploit the

unique opportunities or problems they

confront in a market. If all competitors

use this method to set communication

budgets, their market shares will stay

approximately the same over time.

Percentage

-of-sales

The communication budget is a

fixed percentage of forecasted

sales.

Assumes the same percentage used in

the past, or by competitors, is still

appropriate for the firm. Does not take

into account new plans (e.g., to

introduce a new line of products in the

current year).

Exhibit 18.6: Rule-of-Thumb Methods (2 of 2)

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Method Definition Limitations

Available

budget

Marketers forecast their sales

and expenses, excluding

communication, during the

budgeting period. The difference

between the forecast sales and

expenses plus desired profit is

reserved for the communication

budget. That is, the

communication budget is the

money available after operating

costs and profits have been

budgeted.

Assumes communication expenses do

not stimulate sales and profit.

Planning for and Measuring IMC Success:

Measuring Success Using Marketing Metrics

Reach

Frequency

Gross rating points

Web tracking

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Planning, Implementing, and Evaluating IMC

Programs—An Illustration of Google

Advertising

Transit is an upscale sneaker store in New York City modeled after

vintage New York City subway trains.

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Social Shopping

SEM

Relevance Impressions

Click- through Rate

Return on Investment

(ROMI)

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Exhibit 18.8: Transit ROMI

Assessment

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1. Keyword 2. Clicks

3. Marketing

Expenditure 4. Sales

5. Gross Margin

= Sales X Gross

Margin % = Sales

X 50 %

6. Gross Margin

($) (Col. 5) –

Marketing

Expenditure

(Col 3) 7. ROMI = (Col.

6/Col. 3) X 100

Sneaker store

110 $10/day $70/day $35/day $25 250%

New York City

sneakers 40

$25/day $80/day $40/day $15 60%

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Exhibit 18.9: Transit IMC Goals and

Results

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Communication

Objective

Question Before

Campaign

Six Months

After

One Year

After

Awareness (%

mentioning store)

What stores sell

sneakers?

38% 46% 52%

Knowledge (5 giving

outstanding rating for

sales assistance)

Which stores would

you rate outstanding

on the following

characteristics?

9 17 24

Attitude (% first choice) On your next

shopping trip for

sneakers, which

store would you visit

first?

13 15 19

Visit (% visited store) Which of the

following stores

have you been to?

8 15 19

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PROGRESS CHECK (3 of 3)

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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?

Marketing Chapter 18

The End