Weems
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BUS360
MARKETINGMETHODS
Chapter15
IntegratedMarketing
Communications
Instructor
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Integrated Marketing Communications
Communication channel
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Integrated Marketing Communications
Represents the Promotion dimension of the four Ps;
encompasses various communication media to provide clarity,
consistency, and maximum impact. The communication
disciplines that are combined as an integrated program
include:
General advertising
Personal selling
Sales promotion
Public relations
Direct marketing
Electronic media
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Communicating with Consumers: The
Communication Process
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The Communications Process
Consists of the following components:
Sender Firm that originates the IMC
message. Generally originates from the
retailer. Must be clearly identified
to the intended audience
Transmitter Agent or intermediary that
helps sender develop marketing
communications. Can be an in house creative
department or an outside agency.
Encoding The process of converting senders ideas
into a message which can be verbal, visual or both.
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The Communications Process
Communication Channel Medium
used to carry the message
developed. Can be radio, television,
various print advertisers or internet.
Receiver Person, prospect, who reads,
hears or sees and processes message.
Decoding Process by which receiver
interprets senders message.
Noise The interference that stems form competing
messages or a flaw in the medium used.
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The AIDA Model
Common model
of the series of
mental stages
consumers
encounter
because of
marketing
communications.
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Attention/Awareness
Senders first must gain the attention of the consumers
A multichannel approach increases the likelihood the
message will be received
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Interest
After the consumer
knows the product
exists the
communication must
increase interest in the
product or service
causing the consumer
to want to further
investigate the
product/service
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Desire
I like it
I want it!
The message must then
create the desire to
purchase the product
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Action
Purchase is
just one type of
action
The communication
must then move the
consumer from the
point of desire to
actually making the
purchase.
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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
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Entrepreneurial Marketing:
Oxygen: The Network for Women
What type of TV program
do todays women want?
Oxygen is fun and
entertaining but
acknowledges womens
intelligence
Uses IMC to deliver a
consistent message about
Oxygen
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Elements of an Integrated
Communication Strategy
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Advertising
Most visible element of IMC
A paid form of
communication from an
identifiable source
Delivered through a
communication channel
Designed to persuade
receiver to take some action
now or in future
Extremely effective at
creating awareness and
generating interest
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Personal Selling
Two way flow of communication
between a buyer and seller
designed to influence buyers
purchase decision
Represents important component
of many IMC programs especially
business to business
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
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Sales Promotions
Special incentive or
excitement building programs
encouraging purchase of a
product or service
Can be aimed at both end user
consumers or channel
members
Used in conjunction with other
IMC promotion programs
Can be used for both shortterm and long-term objectives
Include coupons, rebates, contests, free samples, point
of purchase displays
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Direct Marketing
Easily
personalizable
Growth of databases has fueled
the growth of direct marketing
New technologies have opened
new direct marketing channels
Sales & promotional techniques
that deliver promotional
materials individually to potential
customers
Mediums used include
telephone, mail, program length
TV commercials, catalogues,
internet and e-mail
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Using M-Commerce for IMC
How can firms use the new capabilities of
mobile technology to deliver marketing
communications?
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Case in Point: Warner Brothers Studio 2.0
Challenge
Answer
Results
To use new capabilities of
Mobile technology.
Warner Brothers established
Studio 2.0 to create short-form
broadband and mobile content
for marketers. Enables
marketers to create
entertainment/advertising
content to be viewed online or
via a mobile device.
Anheuser Busch had signed on
and launched BudTV during the
2007 Super Bowl.
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Public Relations (PR)
Manages
the firms
communication to achieve a
variety of objectives
including
building/maintaining
positive image, heading off
unfavorable stories,
maintaining a positive
relationship with the media
Includes Cause Related
Marketing when a charity &
business form partnership
to market image, product or
service
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Elements of a Public Relations Toolkit
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Sponsorship in Motion
What do sponsors do when top athletes
change teams?
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Case Point: in David Beckham and
Adidas
Challenge
Answer
Results
Keeping the brand name
sponsorship consistent when top
athletes change teams.
Adidas already has a $10m
individual contract with David
Beckham. Now he is moving to LA
to play for the Galaxy, which it
already sponsors the Jerseys for.
Adidas has announced that it will
take on more of a sponsorship
role. The Adidas name and logo
will be featured more prominently
on team apparel.
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Electronic Media
Corporate blogs Periodic posts on a common web page
designed to create positive word of mouth, customer
loyalty and valuable feed back
Online Games These are
targeted to reach younger
consumers. They allow the
consumer to interact with
the site and possibly other
players.
Text Messaging Sending of text messages as a
marketing medium is rapidly growing since 94% of text
messages are read.
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Planning for and Measuring IMC Success
Goals
Each
IMC program must have
goals and objectives
Goals can be both short term
and long term
Short term goals address
generating inquiries,
increasing awareness,
prompting trial
Long term goals address
increasing sales, market
share and customer loyalty
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Planning for and Measuring IMC Success
Budget
Objective
and Task Method
Set objectives and determine
the budget required to
achieve the communication
objectives
Rule of Thumb Method Use
prior sales and
communication activities to
determine present
communication budget.
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Rule-of-Thumb Methods
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Measuring Success
Must consider when & how often consumers have been
exposed to various marketing communications. Requires
measuring:
Frequency How often audience is exposed
Reach Percentage of target population exposed
Gross Rating points Reach multiplied by frequency
Tracking methods include the following:
Web tracking software Time viewers spend on each page,
number pages viewed
Click through tracking How many time user click on banner ad
Online couponing How many coupons are printed & redeemed
Online referring What interestCompanies, Inc., McGraw-Hill/Irwin
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Online Measurements
Web tracking software
Click through tracking
How many time user click
on banner ad
Online couponing How many
coupons are printed and
redeemed
Online referring What interest forms are completed
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Legal and Ethical Issues in IMC
Commercial speech
Message with an
economic motivation
Must be fact based
Examples: Advertising
and direct marketing
Non-Commercial speech
Message with no
economic motivation
Protected under the First
Amendment
Example: PR
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Stealth & Viral Marketing
Stealth Marketing
A strategy used to attract
consumers using
promotional tactics that
deliver a message in an
unconventional way.
Viral Marketing
A marketing approach that
encourages people to pass
along a marketing message
to other potential
consumers.
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Ethical Dilemma: It Deception to
Disguise the Message Sender?
Marketers using websites
to promote movies and TV
shows
The sites do not identify
that they are promotional
tools
Is this deception?
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Chapter 15 Glossary
Advertising: A paid form of communication from an identifiable source, delivered
through a communication channel, and designed to persuade the receiver to take some
action, now or in the future.
Communication channel: The mediumprint, broadcast, the Internetthat carries the
message.
Direct marketing: Sales and promotional techniques that deliver promotional materials
individually to potential customers.
Frequency: Measure of how often the audience is exposed to a communication within a
specified period of time.
Gross rating points (GRP): Measure used for various media advertisingprint, radio,
or television; GRP = reach frequency.
Integrated marketing communications (IMC): Represents the promotion dimension of
the four Ps; encompasses a variety of communication disciplinesgeneral advertising,
personal selling, sales promotion, public relations, direct marketing, and electronic
mediain combination to provide clarity, consistency, and maximum communicative
impact.
Lagged effect: A delayed response to a marketing communication campaign.
Objective-and-task method: An IMC budgeting method that determines the cost
required to undertake specific tasks to accomplish communication objectives; process
entails setting objectives, choosing media, and determining costs.
Personal selling: The two-way flow of communication between a buyer and
a seller that is designed to influence the buyers purchase decision.
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Chapter 15 Glossary (Contd.)
Public relations (PR): The organizational function that manages the firms
communications to achieve a variety of objectives, including building and
maintaining a positive image, handling or heading off unfavorable stories or
events, and maintaining positive relationships with the media.
Reach: Measure of consumers exposure to marketing communications; the
percentage of the target population exposed to a specific marketing
communication, such as an advertisement, at least once.
Rule-of-thumb methods: Budgeting methods that bases the IMC budget on
either the firms share of the market in relation to competition, a fixed
percentage of forecasted sales, or what is left after other operating costs and
forecasted sales have been budgeted.
Sales promotions: Special incentives or excitement-building programs that
encourage the purchase of a product or service, such as coupons, rebates,
contests, free samples, and point-of-purchase displays.
Stealth marketing: A strategy to attract consumers using promotional tactics
that deliver a sales message in unconventional ways, often without the target
audience knowing that the message even has a selling intent.
Viral marketing: A marketing phenomenon that encourages people to pass
along a marketing message to other potential consumers.
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