18-1 CHAPTER INTEGRATED MARKETING COMMUNICATIONS 18 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

18-2 LEARNING OBJECTIVES 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 Communicating with Consumers: The Communication Process Noise from the environment Feedback Receiver (Consumer) decodes message Sender (Firm) Transmitter encodes message Communications channel (Media)

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

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

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

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

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

18-9 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

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

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

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

18-13 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

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

18-15 Rule of Thumb Methods

18-16 Measuring Success Using Marketing Metrics FrequencyReachGross rating pointsWeb Tracking Digital Vision/Getty Images

18-17 Search Engine Marketing ClicksImpressionsClick through rateReturn on investment (ROI) Transit, an upscale sneaker store in New York City modeled after vintage New York City subway trains.

18-18 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?

18-19 Return to slide Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures. Glossary

18-20 Return to slide The click through rate (CTR) is the number of clicks divided by the number of impressions. Glossary

18-21 Return to slide The frequency of exposure is how often the audience is exposed to a communication within a specified period of time. Glossary

18-22 Return to slide Gross rating points (GRP) represents reach multiplied by frequency. Glossary

18-23 Return to slide The number of impressions is the number of times an ad appears in front of a user. Glossary

18-24 Return to slide The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives. Glossary

18-25 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

18-26 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

18-27 Return to slide Reach is the percentage of the target population exposed to a specific marketing communication at least once. Glossary

18-28 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

18-29 Return to slide Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget. Glossary

18-30 Return to slide Social media is media content distributed through social interactions. Glossary

18-31 Return to slide Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view. Glossary