integrated marketing communications sixteen integrated marketing communications Chapter 16 – Integrated Marketing Communications McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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. These are the learning objectives for this chapter. 16-2

Integrated Marketing Communications IMC Customers Results Communication channel 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. 16-3

Communicating with Consumers: The Communication Process New media options fragment communications and make it more difficult and complex to reach the desired target audience. Ask students: What media do you use on a daily basis? This should lead to a discussion of new and alternative media. Marketers must understand how the communication process works and identify possible communication breakdowns. Group activity: Play the game of telephone. Start with a short message, verbally pass it around the room, and see what emerges. Sample phrase: I caught the train heading for Richmond but went to Richland instead. 16-4

The AIDA Model The AIDA model provides a basis for understanding how marketing communications works. Ask students to pick a product. The decision to buy this product must be somewhat complex. Then walk them through AIDA using the accompanying slides. 16-5

Elements of an Integrated Communication Strategy To get the right message to the right audience through the right medium, an IMC planner must understand how each medium communicates and how to combine it with other media to generate the most impact. 16-6

Terry Tate/Reebok Commercial Advertising Most visible element of IMC Extremely effective at creating awareness and generating interest Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc 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. Terry Tate/Reebok Commercial 16-7

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 Ask students: Do you view PR as credible, because they are not “advertisements,” or not credible, because they come from the company? Courtesy Citirx Online, LLC 16-8

Retailmenot.com Website 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 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. Courtesy Dole Food Company, Inc. Retailmenot.com Website 16-9

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 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. Royalty-Free/CORBIS 16-10

Direct Marketing Growing element of IMC Includes e-mail and m-commerce Good for multicultural groups Database technology improves 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 Courtesy Global Spec, Inc 16-11

Online Marketing Websites Blogs Social Media 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. ©Nokia 2008 16-12

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 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. Lawrence Lawry/Getty Images 16-13

Setting and Allocating the IMC Budget Objective-and-task method Rule-of-thumb methods Many IMC elements require significant expenditures, and firms are reluctant to invest in marketing communications without some guarantee of return. ©Brand X Pictures/PunchStock 16-14

Measuring Success Using Marketing Metrics Frequency Reach Gross rating points Web Tracking 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. Digital Vision/Getty Images 16-15

Search Engine Marketing Clicks Impressions Click through rate Return on investment (ROI) Ask students what Transit would want to measure if they were buying Google adwords for “sneaker store” and “NYC sneakers”. The metrics are on the following slide Transit, an upscale sneaker store in New York City modeled after vintage New York City subway trains. 16-16

Glossary Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures. Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures. 16-17

Glossary The click through rate (CTR) is the number of clicks divided by the number of impressions. The click through rate (CTR) is the number of clicks divided by the number of impressions. 16-18

Glossary The frequency of exposure is how often the audience is exposed to a communication within a specified period of time. The frequency of exposure is how often the audience is exposed to a communication within a specified period of time. 16-19

Glossary Gross rating points (GRP) represents reach multiplied by frequency. Gross rating points (GRP) represents reach multiplied by frequency. 16-20

Glossary The number of impressions is the number of times an ad appears in front of a user. The number of impressions is the number of times an ad appears in front of a user. 16-21

Glossary The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives. The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives. 16-22

Glossary Online couponing is a promotional Web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store. Online couponing is a promotional Web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store. 16-23

Glossary Online referring is when consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest. Online referring is when consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest. 16-24

Glossary Reach is the percentage of the target population exposed to a specific marketing communication at least once. Reach is the percentage of the target population exposed to a specific marketing communication at least once. 16-25

Glossary The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost. The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost. 16-26

Glossary Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget. Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget. 16-27

Glossary Social media is media content distributed through social interactions. Social media is media content distributed through social interactions. 16-28

Glossary Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view. Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view. 16-29