MKT Chapter 18

Measuring success using marketing metrics:

Reach, frequency, gross rating points, web tracking

How do consumers perceive communication?

Receivers decod messages differently. Senders adjust messages according to the medium and receivers' traits.

Setting and allocating the IMC Budget:

Rule of thumb methods Objective-and-task method

Personal Selling: some products require the help of a:

Salesperson, which can add significatn value, which makes the expense worth it.

Awareness:

Senders first must gain the attention; get people thinking.

Objective-and-task method:

Set your budget through a process (most effective)

Who starts the Communication Process?

The sender

What is the goal of Integrated Marketing Communications (IMC)?

To ensure all the various marketing mix elements work together to dleiver a consistent message. It takes the best of each communications medieum and combines it to achieve the most effective marketing communication campaign possible.

Planning for and measuring IMC Success:

Understand: know what goal or outcome you're trying to achieve Focus: Short or long term goals Explicit: goal should be explicitly defined and measured

Direct marketing has increased as:

advertising has declined as a percentage of the total communications budget.

Sales promotions are used in:

conjunction with other forms of IMC and can be used for both short-term and long-term objectives.

Sales promotions are targeted towards:

consumers or channel members

Importance of PR has grown as:

cost of other media has increased and as consumers are becoming more skeptical about marketing.

Sender encodes:

creates meaning in the form of a message which is the actual communication.

No matter which communications channel we use, our customers will:

get the same results.

Feedback:

goes from the receiver right back to the sender

In order to get the right message to the right audience through the right medium, an IMC (integrated marketing communication) planner must understand:

how to combine it with other media to generate the most impact.

The AIDA model:

provides a basis for understanding how marketing communications works.

Many IMC elements require significant expenditures, and firms are reluctant to invest in marketing communications without:

some guarantee of return.

Top-of-mind awareness:

the highest level of awareness, occurs when consumers mention a specific brand name first when they are asked about a product or service.

Receiver:

the intended recipient of the message

Promotional clutter:

there are so many sale promotions out there, its hard to breakthrough and get noticed.

Rule of thumb methods:

using past information to set the budget; competitive parity - match competitors, percentage of sales

Goal of Interest?

want the consumer to want more information

Objective-and-task method steps:

1. Define your objectives - what is it that we hope to accomplish through this plan 2. Determine the tasks necessary for those objectives 3. Estimate the cost of those tasks

What are the five steps of the communication process?

1. Sender - transmitter 2. Sender encodes 3. Communication Channel 4. Reciever 5. Receiver decodes messages (noise, feedback loop)

Factors regarding the Laggard Effect:

Advertising does not always have an immediate impact. Multiple exposures are often necessary. It is difficule to determine which exposure let to purchase.

What are the different elements of an IMC program?

Advertising, sales promotion, public reations and personal selling, electronic media, direct markting.

Desire:

After the firm has piqed the interest of its target market, the goal of subsequent IMC messages should move the consumer from "I like it" to "I want it." (builds within the consumer) " Think some=thing to feel something"

Noise:

Anything that interfers with the communication

Receiver decodes message:

Assigns own meaning of message "what does this mean to me?"

The AIDA stands for:

Awareness, Interest, Desire, Action

What are examples of action in addition to purchasing?

Behavioral changes (don't drink and drive), Attitude changes (that product is high quality), or physical actions (pick up the phone, log onto the website, volunteer).

Sales Promotion Pros:

Builds excitement, encourages immediate purchase

Web Tracking:

Can evaluate IMC plan online as well.

Communication Channel:

Communication vehicle or media. Ex. Newspaper

Advertising cons:

Expensive, low credibility

Personal selling pros.:

Flexible and allows the sales rep to tailor their message to each consumer, immediate feedback, highest cost per contact

What is the goal of awareness?

Gain attention

Direct marketing cons:

Generally, consumers dislike it but its very affective for B2B

Goal of desire?

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

Elements of direct marketing:

Growing element of IMC, includes e-mail and mobile marketing, good for multicultural groups, database technololgy improves.

Sales promotion cons:

Promotional clutter, deos not encourage brand loyalty

Goal of Action?

Purchase, yet this isn't the only type of action.

Gross rating points (GRP):

Reach X Frequency

How to firms determine if their IMC strategy has worked?

It depends on the IMC objective. If the objective is to creat awareness for the new product, then the firm would measure increases in customer knowledge and awareness. If the goal wa to generate sales, like an ad in the paper, then sales would be the objective measure.

Personal selling cons:

Lack of consistency

Public Relations Cons:

Lack of control, very difficult to track the results

Frequency:

Looks at how often the audience is exposed. Multiply advertisements increase frequency.

Reach:

Looks at percentage of your target, exposed to a communication

Public Relations (PR) Pros:

Media relations, low cost, highly credible. "Free" media attention

Advertising Pros:

Most visible element of IMC. Extremely effective at creating awareness and generating interest. Has a wide reach, provides total control, works with all the stepes in the AIDA

Direct Marketing pros:

Very easy to measure the results, very targeted - choose a very specific target market.

Action:

Want consumer to do something. Go from think to feel to DO.

Types of online marketing:

Websites, blogs, social media

Aided recall:

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

How do firms use GRP (Gross Rating Points) to evaluate the effectiveness of traditional media?

When measuring IMC success, the firm should examine when and how often consumers have been exposed to various marketing communications. Marketing communications managers usually state their media objectives in terms of GRP, which represents reach multiplied by frequency (GRP = reach * frequency).

The Lagged Effect definition:

a delayed response to a marketing communication campaign.

Marketers must remember that they do not have control over the decoding process, because:

each receiver decodes the message in his or her own way

Social Media as sales promotion:

is media content distributed through social interactions (YouTube, Facebook, Twitter)

New media options fragment communications and make it more:

make it more difficult and complex to reach the desired target audience

Interest:

persuation which comes after awareness. The customer must want to further investigate the product/service. There are several awareness metrics, including aided recall and top-of -mind awareness.