Mc GrawHill Companies Inc Mc GrawHillIrwin Learning Objectives

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Learning Objectives LEARNING OBJECTIVES How do customers perceive marketing communications? Why are some media channels growing while others are shrinking? How should firms use marketing metrics to plan for and measure IMC success? Why are some governmental agencies and consumer groups concerned about certain innovative IMC strategies? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -2

Coke Zero How did Coke Zero deliver the “masculine” message? Coke Zero/NASCAR Commercial © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -3

Integrated Marketing Communications Communication channel © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -4

Communicating with Consumers: The Communication Process © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -5

How Consumers Perceive Communication Receivers decode messages differently Senders adjust messages according to the medium and receivers’ traits © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -6

Decoding the Message How does the advertiser help the receiver decode this as a breakfast food © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -7

The AIDA Model © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -8

AIDA Model Where is this ad in the AIDA model? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -9

Awareness Senders first must gain the attention of the consumers A multichannel approach increases the likelihood the message will be received © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -10

Interest After the customer is aware, they must be persuaded The customer must want to further investigate the product/service © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -11

Desire I like it © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin I want it 17 -12

Action Purchase is just one type of action…what other actions can IMC ask consumers to take? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -13

Lagged Effect © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Advertising does not always have an immediate impact Multiple exposures are often necessary It is difficult to determine which exposure led to purchase 17 -14

Check Yourself 1. 2. What are the different steps in the communication process? What is the AIDA model? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -15

Elements of an Integrated Communication Strategy © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -16

Advertising Most visible element of IMC Extremely effective at creating awareness and generating interest Terry Tate/Reebok Commercial © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -17

Personal Selling © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 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 17 -18

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 longterm objectives Retailmenot. com Website © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -19

Direct Marketing Growing element of IMC Includes e-mail and mcommerce Good for multicultural groups Database technology improves © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -20

Public Relations (PR) © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin “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 17 -21

Adidas © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -22

Electronic Media Websites Corporate blogs Social Marketing Online Games © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -23

Electronic Media - Websites What websites do you visit all the time? Why? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -24

Electronic Media – Corporate blogs What can Southwest learn from their blog? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -25

Electronic Media – Social Shopping Advantages to firms? Challenges? Shopstyle. com Website © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -26

Electronic Media Online Games and Community Building More interaction with the brand Learn about products © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -27

Check Yourself 1. What are the different elements of an IMC program? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -28

Planning and Measuring IMC Success © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Understand the outcome they hope to achieve before they begin Short-term or longterm Should be explicitly defined and measured 17 -29

Budget Objective-and-task method Rule-of-thumb methods © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -30

Rule of Thumb Methods © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -31

Measuring Success Frequency Reach Gross rating points Web Tracking © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -32

Online Measurements Web tracking software Online couponing Online referring © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -33

Search Engine Marketing Clicks Impressions Click through rate Return on investment (ROI) La Bodega is a small upscale sneaker store in downtown Seattle that targets well educated, hip, young men and women © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -34

La Bodega Click through results Clicks Cost Sales Revenue. Cost Sneaker Store 110 $10/day $35/day $25 250% Seattle Sneakers 40 $25/day $40/day $15 60% Keyword ROI What does the data tell you? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -35

La Bodega IMC goals and results Communication Objectives Questions Awareness What stores sell sneakers? Knowledge Which stores would you rate outstanding on the following characteristics Attitude On your next shopping trip for sneakers, which stores would you visit first? Visit Which of the following stores have you been to? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -36

Check Yourself 1. 2. What are three rule-of-thumb methods used for setting IMC budgets? How would a firm evaluate the effectiveness of its Google advertising? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -37

Legal and Ethical Issues in IMC Commercial Speech • Message with an economic motivation • Must be fact based • Examples: Advertising and direct marketing © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Non-Commercial Speech • Message with no economic motivation • Protected under the First Amendment • Example: PR 17 -38

Glossary Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -39

Glossary The click through rate (CTR) is the number of clicks divided by the number of impressions. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -40

Glossary The frequency of exposure is how often the audience is exposed to a communication within a specified period of time. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -41

Glossary Gross rating points (GRP) represents reach multiplied by frequency. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -42

Glossary The number of impressions is the number of times an ad appears in front of a user. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -43

Glossary The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -44

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. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -45

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. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -46

Glossary Reach is the percentage of the target population exposed to a specific marketing communication at least once. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -47

Glossary The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -48

Glossary Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -49

Glossary Social shopping is a communication channel in which consumers use the Internet to engage in the shopping process by engaging preferences, thoughts, and opinions among friends, family, and others. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -50

Glossary Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 17 -51