Ch. 17: Integrated Marketing Communications

Personal Selling

- The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. - important in business-to-business setting - MOST expensive form of promotion - best and most efficient way to sell certain products and services

lagged effect

- a delayed response to a marketing communication campaign - takes repeat exposure Ex. Toyota's "Prius Goes Plural" campaign: promotes the addition of a family-sized Pruis; the car wasn't released until 6 months after; therefore, the company doesn't know if this form of communication led customers to actually purchase the car

offline passive

- advertising - sales promotions (coupons) - public relations - direct marketing (catalogs)

Awareness

- all about grabbing the potential customer's attention Ex. Evian Baby Me; Roller Baby commercial

Interest

- consumers must be persuaded that a product is worth investigating - educating and persuading Ex. Stouffer's focusing on "real food" ingredients that led to meals good enough to make a teenager put down her phone to join family dinner

online passive

- direct marketing (email marketing)

online interactive

- direct marketing (mobile marketing) - online marketing (blogs, social media)

Competitive Pay

- firm's share of communication expenses = its share of the market Limitations: - does not allow firms to exploit the opportunities they confront in a market - firms' market shares will stay the same over time

Traditional Direct Marketing

- mail and catalogs sent through the mail

Available Budget

- marketers forecast their sales and expenses excluding communication - the communication budget is the money available after operating costs and profits have been budgeted Limitations: - assumes communication expenses do not stimulate sales and profit

AIDA (think, feel, do) model

- model of the series of mental stages a consumer moves through as a result of marketing communications Awareness -> Interests -> Desire -> Action

offline interactive

- personal selling - sales promotions (contests) - direct marketing (telemarketing)

Direct Marketing

- sales and promotional techniques that deliver promotional materials individually - has received the greatest increase

Percentage-of-Sales

- the communication budget is a fixed percentage of forecasted sales Limitations: - assumes the same percentage used in the past is still appropriate for the firm - does not take into account new plans

Goals

- the outcome firms hope to achieve before they begin any IMC campaign - should be explicitly defined and measured - should correspond to firm's promotional plan

Desire

- to go from "I like it" to "I want it" Ex. Lucy Hale appearing on Good Morning America to talk about how great her upcoming album is; Cosmetics: Kylie Jenner & Rihanna

Objective-and-Task method

-determines the budget required to undertake specific tasks to accomplish communication objectives - bottom-up method 1. establish objectives 2. determine specific tasks 3. estimate costs associated with tasks - must be repeated for each product or service

Advertising

-most visible element of IMC -extremely effective at creating awareness and generating interest Ex. Domestic Violence live poster

integrative communication channels

1. Advertising 2. Public Relations 3. Sales Promotions 4. Personal Selling 5. Direct Marketing 6. Online Marketing

In the AIDA model, the "do" stage is the ________________ stage.

Action

In the AIDA model, the "think" stage is the ________________ stage.

Awareness

Integrated Marketing Communications

Customers Results Communication Channel Ex. Dark Knight: Viral Marketing Campaign, Bing & Jay-Z

In the AIDA model, the "feel" stage is the ________________ stage.

Desire

Action

Ex. Stouffer's will hand out coupons to help push customers to make a purchase; Be member of club/email

Frequency

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

Mobile Marketing

marketing through wireless handheld devices

Relevance

metric used to determine how useful an advertisement is to the consumer

top-of-mind awareness

occurs when consumers mention a specific brand name first when they are asked about a product or service

Blogs

periodic posts on a common web page - can communicate trends, announce special events, create positive word of mouth, allow company to directly respond to customers' comments

click-through rate (CTR)

the number of times a user clicks on an online ad divided by the number of impressions

Impressions

the number of times an advertisement appears in front of the user

Public Relations

the organizational function that: - evaluates public attitudes - identifies areas within the organization the public may be interested in - executes a program of action to earn public understanding and acceptance - "free" media attention - becoming more important as consumers become more skeptical about marketing; more credible source

Reach

the percentage of the target market that will be exposed to a specific marketing communication

Rule-of-Thumb Methods

use prior sales and communication activities to determine the present communication budget - competitive pay - percentage-of-sales - available budget

web tracking software

used to assess how much time viewers spend on particular web pages and the number of pages they view

Websites

used to build brand image, educate customers about their products or services and where they can be purchased

social shopping

using the internet to communicate about product preferences with other shoppers

Online Marketing

websites, blogs, social media

Social Media

Media content used for social interactions - three most popular: YouTube, Facebook, and Twitter

Gross Rating Points (GRPs)

Reach x Frequency - measure used for various media advertising (print, radio, or tv)

Sales Promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service Ex. coupons (most popular), rebates, contests, free samples, and point-of-purchase displays

return on marketing investment (ROMI)

The amount of profit divided by the value of the investment. Ex. advertisement, the ROI is (the sales revenue generated by the ad - the ad's cost) / the ad's cost (Gross Margin - Market Expenditure) / Marketing Expenditure (ALL x 100)

brand awareness

a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service

search engine marketing (SEM)

a type of web advertising whereby companies pay for keywords that are used to catch consumers' attention while browsing a search engine

aided recall

consumers indicate they know the brand when the name is presented to them