1. chapter integrated marketing communications sixteen Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. LEARNING OBJECTIVES LO1Identify the components of the communication process. LO2Explain the four steps in the AIDA model. LO3Describe the various integrative communication channels. LO4Explain the various ways used to allocate the IMC budget. LO5Identify marketing metrics used to measure integrated marketing communications (IMC) success. Integrated Marketing Communications 16-2

3. KFC AP Photo/Brian Bohannon/Kentucky Fried Chicken 16-3

4. Integrated Marketing Communications IMC CustomersResults Communication channel 16-4

5. Communicating with Consumers: The Communication Process 16-5

6. How Consumers Perceive Communication Receivers decode messages differently Senders adjust messages according to the medium and receivers’ traits ©Stockdisc/Getty Images 16-6

7. Decoding the Message How does the advertiser help the receiver decode this as a breakfast food Courtesy HJ Heinz Company 16-7

8. The AIDA Model 16-8

9. AIDA Model Where is this ad in the AIDA model? ©2008 KCWW Reprinted with Permission 16-9

10. Awareness Senders first must gain the attention of the consumers A multichannel approach increases the likelihood the message will be received Courtesy Peapod 16-10

11. Interest After the customer is aware, they must be persuaded The customer must want to further investigate the product/service ©2010 Dell Inc All Rights Reserved 16-11

12. Desire I like itI want it blue jean images/Getty Images 16-12

13. Action Purchase is just one type of action… what other actions can IMC ask consumers to take? ©BananaStock/PunchStock 16-13

14. 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 16-14

15. check yourself 1.What are the different steps in the communication process? 2.What is the AIDA model? 16-15

16. Elements of an Integrated Communication Strategy 16-16

17. Advertising Most visible element of IMC Extremely effective at creating awareness and generating interest Terry Tate/Reebok Commercial Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc 16-17

18. 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 16-18

19. 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 http://www.Retailmenot.comhttp://www.Retailmenot.com Website Courtesy Dole Food Company, Inc. 16-19

20. 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 16-20

21. Direct Marketing Growing element of IMC Includes e-mail and m- commerce Good for multicultural groups Database technology improves Courtesy Global Spec, Inc 16-21

22. Adidas Anthony Saint James/Getty Images 16-22

23. Online Marketing Websites Blogs Social Media ©Nokia 2008 16-23

24. Websites What websites do you visit all the time? Why? 16-24

25. Blogs What can Southwest learn from their blog? Courtesy Southwest Airlines 16-25

26. Social Media Advantages to firms? Challenges? 16-26

27. check yourself 1.What are the different elements of an IMC program? 16-27

28. Planning and Measuring IMC Success Understand the outcome they hope to achieve before they begin Short-term or long- term Should be explicitly defined and measured Lawrence Lawry/Getty Images 16-28

29. Setting and Allocating the IMC Budget Objective-and-task method Rule-of-thumb methods ©Brand X Pictures/PunchStock 16-29

30. Rule of Thumb Methods 16-30

31. Measuring Success Using Marketing Metrics FrequencyReachGross rating pointsWeb Tracking Digital Vision/Getty Images 16-31

32. 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. 16-32

33. Transit Click through results What does the data tell you? 16-33

34. Transit IMC goals and results 16-34

35. Swiped ID Theft in America 16-35

36. check yourself 1.Why is the objective-and-task method of setting an IMC budget better than the rule- of-thumb methods? 2.How would a firm evaluate the effectiveness of its Google advertising? 16-36

37. Return to slide Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures. Glossary 16-37

38. Return to slide The click through rate (CTR) is the number of clicks divided by the number of impressions. Glossary 16-38

39. Return to slide The frequency of exposure is how often the audience is exposed to a communication within a specified period of time. Glossary 16-39

40. Return to slide Gross rating points (GRP) represents reach multiplied by frequency. Glossary 16-40

41. Return to slide The number of impressions is the number of times an ad appears in front of a user. Glossary 16-41

42. Return to slide The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives. Glossary 16-42

43. 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 16-43

44. 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 16-44

45. Return to slide Reach is the percentage of the target population exposed to a specific marketing communication at least once. Glossary 16-45

46. 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 16-46

47. Return to slide Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget. Glossary 16-47

48. Return to slide Social media is media content distributed through social interactions. Glossary 16-48

49. Return to slide Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view. Glossary 16-49