marketing chapter 17: integrated marketing communications

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To estimate reach, use the

# of impressions and the click-through rate (CTR)

CTR →

# of times a user clicks on an online ad / by # of impressions

Impressions →

# of times an ad appears in front of the user

in the case of an advertisement, the ROI =

(sales revenue generated by ad - ad's cost) / ad's cost

Personal selling →

2-way flow of communication between a buyer/seller designed to influence buyer's purchase decision

if they hope to reach the most users, marketers must be able to

adapt to/establish a presence on newly popular platforms quickly

Perhaps the most visible of the IMC channels

advertising

That is, the communication budget is the money available

after operating costs/profits have been budgeted

Transmitter →

agent/intermediary with which sender works to develop marketing communications

Feedback loop →

allows receiver to communicate with sender; informs sender whether the message was received/decoded properly

Return on marketing investment (ROMI) →

amount of profit / by value of the investment

Noise →

any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium

Web-tracking software → software used to

assess how much time viewers spend on web pages and the # of pages they view

disadvantage of %-of-sales:

assumes same % used in past/by competitors is still appropriate for the firm

AIDA:

awareness leads to interests, which lead to desire, which leads to action

rule-of-thumb methods → budgeting methods that

base IMC budget on either the firm's share of the market in relation to competition, a fixed % of forecasted sales, or what's left after other operating costs and forecasted sales have been budgeted

This integration of channels provides the firm with the

best means to reach the target audience with the desired message

By keeping track of who is visiting their fan pages, marketers can

better customize their material by getting to know the ppl visiting

The different forms of direct marketing demonstrate how this IMC format can vary on

both the interactivity and online-offline dimensions of the matrix

Free samples or POP displays are designed to

build short-term sales

contests and sweepstakes have become integral tactics of some firms' CRM programs as a means to

building customer loyalty

the sender must be

clearly identified to the intended audience

Percentage-of-sales →

communication budget is a fixed % of forecasted sales

available budget assumes

communication expenses don't stimulate sales/profit

rule-of-thumb methods include

competitive parity, %-of-sales, and available budget

The media chosen must be appropriate to

connect the sender with its desired recipients

Key consideration is what gets received; consumer must receive

consistent, comprehensible info that in turn makes them want to embrace the message/engage in activities that it recommends

3 elements in an IMC strategy:

consumer, channels through which the message is communicated, evaluation of the results of the communication

Aided recall → an awareness metric that occurs when

consumers recognize a name of a brand that's been presented to them

Reach → measure of

consumers' exposure to marketing communications

a new form of marketing communications

corporate blogs

The lagged effect →

delayed response to a marketing communications campaign

A firm must develop a communication strategy to

demonstrate the value of its product

Relevance → in the context of search engine marketing, it's a metric used to

determine how useful an ad is to the consumer doing the search

Objective-and-task method → an IMC budgeting method that

determines cost required to undertake specific tasks to accomplish communication objectives

Available budget → marketers forecast their sales and expenses, excluding communication, during the budgeting period;

difference between forecast sales and expenses + desired profit is reserved for communication budget

the IMC channel that's received the greatest increase in aggregate spending recently

direct marketing

As the marketer's repertoire of IMC channels has expanded, so too have the ways in which marketers can communicate with their customers, so,

direct marketing appears in all 4 boxes

Internet-based technologies have had a profound effect on

direct marketing initiatives

The proliferation of media has led many firms to shift their promotional dollars from advertising to

direct marketing, website development, and product placements

Action → the ultimate goal of any form of marketing communications is to

drive the receiver to action

Thus, social media help facilitate the consumer decision process by

encouraging need recognition, info search, alternative evaluation, purchase, and postpurchase reviews

High top-of-mind awareness means that the brand probably

enters the evoked set of brands

Such goals should be

explicitly defined and measured

competitive parity doesn't allow firms to

exploit unique opportunities/problems they confront in a market

reach is a % of the target population

exposed to a specific marketing communication, such as an ad, at least once

personal selling can take place in various settings:

face-to-face, via video-conferencing, on the phone, or over the Internet

Communicating with consumers → as the # of communication media has increased, the task of understanding how best to reach target consumers has become

far more complex

Sender →

firm from which an IMC message originates

Traditional media → when measuring IMC success, the firms should examine when and how often consumers have been exposed to various marketing communications; to gauge consumers' exposure to marketing communications,

firm uses measures of frequency and reach

Competitive parity → communication budget set so that the

firm's share of communication expenses = its share of the market

The sum of all the individual communication plan budgets becomes the

firm's total marketing communications budget

various communication disciplines:

general advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media

PR activities support the other promotional efforts by the firm by

generating free media attention

Marketing communications managers usually state their media objectives in terms of

gross rating points (GRP)

Manufacturers, retailers, and service providers build top-of-mind awareness by

having memorable names; repeatedly exposing their name to customers; using memorable symbols

Frequency → measure of

how often audience is exposed to a communication within a specified period of time

Integrated marketing communications (IMC) → encompasses a variety of communication disciplines

in combination to provide clarity, consistency, and max communicative impact

The goal of IMC is to use the channels

in conjunction so that the sum > the total of the individual channels

Research has shown that online product reviews

increase customer loyalty and provide a competitive advantage for sites that offer them

Interest → once the consumer is aware that the company or product exists, communication must work to

increase the consumer's interest level

SEM → an activity used in online searches to

increase the visibility of a firm by using paid searches to appear higher up in search results

What are considered social media also are morphing as

innovative firms create new methods of communicating with and selling to consumers

Novel social media allow users to

interact among themselves (form a community) and provide other like-minded consumers (members of their community) and marketers with their thought/evaluations of a firm's products/services

If there's a difference between the encoding and the decoding,

it's probably due to noise

Google provides a measure of relevance through

its ads system using a quality score

In general, a high quality score means that a

keyword will trigger ads in a higher position and at a lower cost-per-click

Many firms operate websites devoted to community building; these sites offer an opportunity for customers with similar interests to

learn about products/services that support their hobbies and share info with others

these goals can also be

long term in nature; increasing sales, market share, customer loyalty

Contains a variety of traditional and new forms of marketing communications initiatives: traditional direct marketing includes

mail and catalogs sent through the mail

Such measures become particularly challenging when

marketing efforts include creative and new forms of communication

Mobile marketing →

marketing through wireless handheld devices

Firms must invest in the marketing communications campaign with the idea that it

may not reach its full potential for some time

Measuring success using marketing metrics → once a firm has decided how to set its budget for marketing communications and its campaigns have been developed and implemented, it reaches the point that it must

measure the success of the campaigns using various marketing metrics

Brand awareness →

measures how many consumers in a market are familiar with the brand/what it stands for

Reaching the right audience is becoming more difficult, however, as the

media environment grows more complicated

How consumers perceive communication → each receiver may interpret the sender's message differently, and senders often adjust their message according to the

medium used and the receivers' level of knowledge about the product/service

The AIDA model → a common model of the series of

mental stages through which consumers move as a result of marketing communications

top-of-mind awareness occurs when consumers

mention a specific brand name 1st when asked about a product/service

Desire → after the firm has piqued the interest of its target market, the goal of subsequent IMC messages should

move the consumer from "I like it" to "I want it"

%-of-sales doesn't take into account

new plans

Setting and allocating IMC budget → because all the methods of setting a promotional budget have advantages/disadvantages,

no 1 method should be used in isolation

a problem for all communication channels

noise

Blogs (weblog) →

online diary with periodic posts that allows ppl to share their thoughts, opinions, and feelings with the entire world

To measure the program's effectiveness, conduct an

online survey using questions regarding the communication objectives

Social media →

online/mobile technologies that distribute content to facilitate interpersonal interactions, with the assistance of various firms that offer platforms, services, and tools to help consumers/firms build their connections

Public relations (PR) →

organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories/events, and maintaining positive relationships with the media

Advertising →

paid form of communication delivered through media from an identifiable source about an org, product/service, or idea designed to persuade the receiver to take some action now/in the future

Instead of consisting of separate marketing communications channels with no unified control, IMC programs regard each of the firm's marketing communications channels as

part of a whole, each of which offers a different means to connect with the target audience

Regardless of their measure or changes, goals constitute

part of the overall promotional plan; usually a subsection of firm's marketing plan

After being exposed to marketing communications, consumers go through several steps before actually buying or taking some other action; there's not always a direct link between a

particular form of marketing communications and a consumer's purchase

The individual channels of IMC can be viewed on 2 axes:

passive and interactive (from the consumer's perspective) and offline and online

the PR tactic is relatively

passive; customers don't have to take any action to receive it

Receiver →

person who reads, hears, or sees/processes the info contained in the message/ad

It isn't enough to let people know that the product exists; consumers must be

persuaded that it's a product worth investigating

Mass advertising can entice consumers into a conversation with marketers, though it doesn't necessarily require much action by consumer, which

places it on the passive end of the spectrum

Measuring the effect of a current campaign becomes more difficult because of the

possible lagged response to a previous 1

GRP → measure used for various media advertising:

print, radio, or television; GRP = reach * frequency

to determine the present communication budget, rule-of-thumb methods use

prior sales and communication activities

Decoding →

process by which receiver interprets sender's message

Encoding →

process of converting sender's ideas into a message; could be verbal, visual, or both

Channels used in an IMC strategy → for any communications campaign to succeed, the firm must deliver the right message to the right audience through the right media, with the ultimate goal of

profiting from long-term customer relationships rather than just short-term transactions

IMC represents the

promotion dimension of the 7 Ps

Customers can buy many products/services without the help of a salesperson, but salespeople simplify the buying process by

providing info/services that save customers time/effort

The cost of communicating directly with a potential customer compared with other forms of promotion is

quite high, but it's the best/most efficient way to sell certain products/services

The increased use of customer databases has enabled marketers to identity and track consumers over time and across purchase situations, which has contributed to the

rapid growth of direct marketing

The quality score looks at a variety of factors to measure how

relevant a keyword is to an ad's text and to a user's search query

The objective-and-task method process must be

repeated for each product/service

To evaluate the IMC program, compare the

results of the program with its objectives

In these online sites, consumers

review, communicate about, and aggregate info about products, prices, and promotions

Direct marketing →

sales/promotional techniques that communicate directly with target customers to generate a response/transaction

To reach new customers, use

search engine marketing (SEM)

The communication process →

sender (firm), transmitter encodes message, communications channel (media), receiver (consumer) decodes message

Awareness → even the best marketing communications can be wasted if the

sender doesn't gain the attention of the consumer 1st

Various rule-of-thumb methods can be used to

set budgets

after they have established the goals, marketers can

set the budget for the campaign and choose the marketing metrics to evaluate whether it's achieved its strategic objectives

objective-and-task method process entails

setting objectives, choosing media, and determining costs

These goals can be

short term; generating inquiries, increasing awareness, prompting trial

Any comparisons using the GRP require a

single medium

Sales promotions →

special incentives or excitement-building programs that encourage the purchase of a product/service, such as coupons, rebates, contests, free samples, and point-of-purchase (POP) displays

To create effective IMC programs, marketers must understand how marketing communications work; generally marketing communications move consumers

stepwise through a series of mental stages

Planning for and measuring IMC success → we begin by examining how marketers set

strategic goals before they implement any IMC campaign

Communications channel →

the medium (print, broadcast, Internet) that carries the message

If all competitors use the competitive parity method to set communication budgets,

their market shares will stay approximately the same over time

firms are steadily improving customers' potential experience with

their mobile interface

Direct marketing retailers try to target their customers carefully so

they'll be more receptive to their messages

Budgeting may take several rounds of negotiations among the various managers, who are each competing for resources for their own areas of responsibility,

to devise a final IMC budget

transmitter: marketing department or external agency receives the information and

transforms it for use in its role as the transmitter

Top-of-mind awareness → a prominent place in people's memories that

triggers a response w/out them having to put any thought into it; highest level of awareness

Goals → as with any strategic undertaking, firms need to

understand the outcome they hope to achieve before they begin

Social shopping →

using Internet to communicate about product preferences with other shoppers

This integration of channels enhances the

value story by offering a clear/consistent message

brand awareness is created through repeated exposures of the

various brand elements in the firm's communications to consumers

Assessing the effectiveness of any web-based communication efforts in an IMC campaign generally requires

web-tracking software

Online marketing → we now examine several electronic media vehicles:

websites, blogs, and social media

Each element of an integrated marketing communications (IMC) strategy must have a

well-defined purpose and support/extend the message delivered by all the other elements

The sender has little, if any, control over

what meaning any individual receiver will take from the message


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