CHAPTER 18 INTEGRATED MARKETING COMMUNICATION S 18 1

CHAPTER 18 INTEGRATED MARKETING COMMUNICATION S 18 -1

Integrated Marketing Communications LEARNING OBJECTIVES LO 1 Identify the components of the communication process. LO 2 Explain the four steps in the AIDA model. LO 3 LO 4 LO 5 Describe the various integrative communication channels. Explain the various ways used to allocate the integrated marketing communications (IMC) budget. Identify marketing metrics used to measure IMC success. 18 -2

Communicating with Consumers: The Communication Process Noise from the environment Sender (Firm) Transmitter encodes message Communications channel (Media) Receiver (Consumer) decodes message Feedback 18 -3

The AIDA Model Awareness Think Interest Desire Action Feel Do 18 -4

Awareness § A multichannel approach increases the likelihood the message will be received Courtesy Peapod § Senders first must gain the attention 18 -5

Interest § After awareness comes persuasion § The customer must want to further investigate the product/service © 2010 Dell Inc All Rights Reserved 18 -6

Desire I like it I want it blue jean images/Getty Images 18 -7

Action Purchase is just one type of action… what other actions can IMC ask consumers to take? ©Banana. Stock/Punch. Stock 18 -8

The Lagged Effect § Advertising does not always have an immediate impact § Multiple exposures are often necessary ©image 100/Punch. Stock § It is difficult to determine which exposure led to purchase 18 -9

CHECK YOURSELF 1. What are the different steps in the communication process? 2. What is the AIDA model? 18 -10

Elements of an Integrated Marketing Communication Strategy Interactive • Personal selling • Direct marketing (e. g. , mobile marketing) • Sales promotions (e. g. , contests) • Online marketing (e. g. , blogs, social media Online Offline • Direct marketing (e. g. , telemarketing) • Advertising • Sales promotions (e. g. , coupons) • Direct marketing (e. g. , e-mail marketing) • Public relations • Direct marketing (e. g. , catalogs) Passive 18 -11

CHECK YOURSELF 1. What are the different elements of an IMC program? 18 -12

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 18 -13

Setting and Allocating the IMC Budget Rule-of-thumb methods ©Brand X Pictures/Punch. Stock Objective-and-task method 18 -14

Rule of Thumb Methods 18 -15

Measuring Success Using Marketing Metrics Frequency Reach Gross rating points Web Tracking Digital Vision/Getty Images 18 -16

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. 18 -17

CHECK YOURSELF 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? 18 -18