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18-1© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
C H A P T E R
Integrated Marketing Communications
18
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
18-2© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
L E A R N I N G O B J E C T I V E S
Identify the components of the communication process.
Explain the four steps in the AIDA model.
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.
Integrated Marketing Communications
LO1
LO2
LO3
LO4
LO5
18-3© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Coca-Cola
©2006-2012 The Coca-Cola Company.
18-4© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Integrated Marketing Communications
Custom
ers
Results Comm
unication
channel
18-5© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Communicating with Consumers: The Communication Process
Noise from the environment
Feedback
Receiver(Consumer)
decodes message
Sender(Firm)
Transmitterencodesmessage
Communicationschannel(Media)
18-6© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
How Consumers Perceive Communication
Receivers decode messages differently
Senders adjust messages according to the medium and receivers’ traits
©Stockdisc/Getty Images
18-7© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Decoding the Message
How does the advertiser help the receiver decode this as a breakfast food
Courtesy HJ Heinz Company
18-8© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The AIDA Model
Awareness
Interest
Desire
Action
Think
Feel
Do
18-9© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
AIDA Model
Where is this ad in the AIDA model?
©2008 KCWW Reprinted with Permission
18-10© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Awareness
Senders first must gain the attention
A multichannel approach increases the likelihood the message will be received C
ourt
esy
Pe
apo
d
18-11© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Interest
After awareness comes persuasion
The customer must want to further investigate the product/service
©2010 Dell Inc All Rights Reserved
©2010 Dell Inc All Rights Reserved
18-12© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Desire
I like it I want it
blue jean images/Getty Images
18-13© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Action
Purchase is just one type of action… what other actions can IMC ask consumers to take?
©BananaStock/PunchStock
18-14© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Lagged Effect
Advertising does not always have an immediate impact
Multiple exposures are often necessary
It is difficult to determine which exposure led to purchase
©image100/PunchStock
18-15© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. What are the different steps in the communication process?
2. What is the AIDA model?
CHECK YOURSELF
18-16© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Elements of an Integrated Marketing Communication Strategy
• Personal selling
• Sales promotions (e.g., contests)
• Direct marketing (e.g., telemarketing)
• Advertising
• Sales promotions (e.g., coupons)
• Public relations
• Direct marketing (e.g., catalogs)
• Direct marketing (e.g., mobile marketing)
• Online marketing (e.g., blogs, social media)
• Direct marketing (e.g., e-mail marketing)
Interactive
Passive
On
line
Off
lin
e
18-17© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Advertising
Most visible element of IMC
Extremely effective at creating awareness and generating interest
Cou
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18-18© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
18-19© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.
18-20© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
18-21© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Direct Marketing
Growing element of IMC
Includes e-mail and m-commerce
Good for multicultural groups
Database technology improves
Cou
rte
sy G
loba
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ec,
Inc
18-22© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
adidas
Anthony Saint James/Getty Images
18-23© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Online Marketing
Websites
Blogs
Social Media
McG
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c. M
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Die
rke
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togr
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.
18-24© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Websites
What websites do you visit all the time?
Why?
18-25© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Blogs
What can Southwest learn from their blog?
Courtesy Southwest Airlines
18-26© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Social Media
Advantages to firms? Challenges?
18-27© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. What are the different elements of an IMC program?
CHECK YOURSELF
18-28© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
18-29© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Setting and Allocating the IMC Budget
Objective-and-task method
Rule-of-thumb methods
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18-30© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Rule of Thumb Methods
18-31© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Measuring Success Using Marketing Metrics
Frequency
Reach
Gross rating points
Web Tracking
Digital Vision/Getty Images
18-32© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.
18-33© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
TransitClick through results
What does the data tell you?
18-34© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Transit IMC goals and results
18-35© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Swiped ID Theft in America
18-36© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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?
CHECK YOURSELF
18-37© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures.
Glossary
18-38© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
The click through rate (CTR) is the number of clicks divided by the number of impressions.
Glossary
18-39© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
The frequency of exposure is how often the audience is exposed to a communication within a specified period of time.
Glossary
18-40© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Gross rating points (GRP) represents reach multiplied by frequency.
Glossary
18-41© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
The number of impressions is the number of times an ad appears in front of a user.
Glossary
18-42© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.
Glossary
18-43© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
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.
Glossary
18-44© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
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.
Glossary
18-45© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Reach is the percentage of the target population exposed to a specific marketing communication at least once.
Glossary
18-46© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost.
Glossary
18-47© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget.
Glossary
18-48© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Social media is media content distributed through social interactions.
Glossary
18-49© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view.
Glossary