Case Study & Essay
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chap017_slides.pptxINTEGRATED MARKETING COMMUNICATIONS
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McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER
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Chapter 17 – Integrated Marketing Communications
Integrated Marketing Communications
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.
LEARNING OBJECTIVES
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These are the learning objectives for this chapter.
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Integrated Marketing Communications
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The goal of IMC is to ensure all the various marketing mix elements work together to deliver a consistent message. Therefore, IMC takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible.
IMC
Customers
Results
Communication channel
Awareness
Senders first must gain the attention of the consumers
A multichannel approach increases the likelihood the message will be received
Courtesy Peapod
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Discuss the now-famous Joe Camel study, which found a majority of three-year-old children were aware of Joe Camel, the spokes character for Camel cigarettes. The study’s authors suggested awareness would lead to smoking. Discuss whether awareness always translates to action; be sure to include the two intervening steps, interest and desire. Finally, note that in follow-up studies, preschoolers indicated they understood that cigarettes were adult products, and many were adamant that they would not smoke.
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
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Ask students: Other than purchase, what can IMC prompt consumers to do?
Possible answers include behavioral changes (don’t drink and drive), attitude changes (that product is high quality), or physical actions (pick up the phone, log on to the Website, volunteer).
Desire
blue jean images/Getty Images
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After the firm has piqued the interest of its target market, the goal of subsequent IMC messages should move the consumer from “I like it” to “I want it.”
I like it
I want it
Action
©BananaStock/PunchStock
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Ask students: provide examples of products that they had IMC exposure to, but did not purchase immediately. Then ask students: which IMC exposure moved you to purchase?
Purchase is just one type of action… what other actions can IMC ask consumers to take?
What are the different steps in the communication process?
What is the AIDA model?
Check Yourself
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The sender, the transmitter, encoding, the communication channel, the receiver, noise, feedback loop
Awareness, interest, desire, action
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Advertising
Most visible element of IMC
Extremely effective at creating awareness and generating interest
Terry Tate/Reebok Commercial
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc
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Chapter Eighteen covers advertising, the most visible element of IMC, in depth.
Ask students: Think about how an advertisement has made you aware of or interested in a specific product.
You can use students’ chosen advertisements as the basis for subsequent discussions.
Ask students what “advertainment” might be? It is advertising that is focused on entertaining the end user. One of the earliest and best examples are Reebok’s Terry Tate ads. This YouTube link (always check before class) will show the original ad which was aired on the 2003 Superbowl.
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
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Ask students: Do you view PR as credible, because they are not “advertisements,” or not credible, because they come from the company?
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
Retailmenot.com Website
Courtesy Dole Food Company, Inc.
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Chapter Eighteen covers sales promotion in detail. Remind students that sales promotions can be used in a wide variety of situations to stimulate demand among either end users or other channel members. There are many websites that distribute coupons. This web link is for retailmenot.com, one of the more popular coupon sharing site. Ask students how retailers feel about this. The positive is that they are able to reach price sensitive customers who would otherwise not find them. The problem is that some of these coupons are profitable because the target frequent and large receipt buyers and they are not the kind of person who is downloading from the site.
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
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Chapter Nineteen covers personal selling, the most costly form of IMC, in detail.
Ask students: For what kind of purchases is personal selling most appropriate? Their answers should note that this form of IMC works best when the purchase is complicated, because the salesperson can customize the communication to meet the needs of that specific buyer and purchase situation, which other IMC elements cannot.
Direct Marketing
Growing element of IMC
Includes e-mail and m-commerce
Good for multicultural groups
Database technology improves
Courtesy Global Spec, Inc
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As advertising has declined as a percentage of the total communications budget, direct marketing has increased. Ask students: What characteristics of direct marketing might explain this increased popularity? Direct marketing allows marketers to personalize their message. This enables marketers to communicate with an audience that is more likely to respond to their efforts. The text has some excellent examples of Meijer, Toys “R” Us and Best Buy using m-commerce
Online Marketing
©Nokia 2008
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These will be covered on the next several slides
Ask students: What problems might firms that use text messaging to disseminate marketing communications face?
Answer: There may be a backlash against the firm and the wireless provider if consumer phones are constantly flooded with such messages.
Ask students: How would you like to receive advertising text messages?
Answer: A lot of folks do not want such messages. However, the instant-messaging generation is likely to be much more tolerant about it.
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Websites
Blogs
Social Media
What are the different elements of an IMC program?
Check Yourself
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1. Advertising, sales promotion, public relations and personal selling, electronic media, direct marketing.
Planning and Measuring IMC Success
Understand the outcome they hope to achieve before they begin
Short-term or long-term
Should be explicitly defined and measured
Lawrence Lawry/Getty Images
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Ask students: How do firms determine whether their IMC strategy has worked?
Answer: It depends on the IMC objective. If the objective is to create awareness for a new product, then the firm would measure increases in customer knowledge and awareness. If it were to generate sales, like an ad in the paper, then sales would be the objective measure.
Setting and Allocating the IMC Budget
©Brand X Pictures/PunchStock
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Many IMC elements require significant expenditures, and firms are reluctant to invest in marketing communications without some guarantee of return.
Objective-and-task method
Rule-of-thumb methods
Measuring Success Using Marketing Metrics
Digital Vision/Getty Images
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Every communication may be measured in terms of reach and frequency. Remind students that because of the lagged effect, marketers must not only expose the target audience to the message but also ensure that it has multiple opportunities to view it. This combined measure is GRP.
Frequency
Reach
Gross rating points
Web Tracking
Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?
How would a firm evaluate the effectiveness of its Google advertising?
Check Yourself
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The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.
Return on investment (ROI)
