EXAM 4--CH. 17 (Integrated Marketing Communications)

Gross rating points

Reach x Frequency (TV, radio) -measure used for various media ads like print, radio, or tv Because of the lagged effect, marketers must not only expose the target audience to the message but also ensure that it has multiple opportunities to view it. This combined measure is GRP.

Attention

Senders first must gain the attention of the consumers by making them aware of the product, brand, introducing something new; A omnichannel approach increases the likelihood the message will be received

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

Lagged Effect

Sometimes consumers don't act immediately after receiving a marketing communication because of the _________________—a delayed response to a marketing communication campaign. -multiple exposures often necessary -It is difficult to determine which exposure led to purchase

Percentage of Sales

The IMC communication budget that is a fixed percentage of forecasted sales Does not take into account new plans; just goes based off of past

Competitive Parity

The IMC communication budget that is set so that the firm's share of communication expenses equals its share of the market -based on competition Market share will stay the same over time Does not allow firms to exploit the unique opportunities or problems they face

Available Budget

The IMC communication budget that is the money available after operating costs and profits have been budgeted

Integrated Marketing Communications

The goal of IMC is to ensure all the various marketing mix elements work together to deliver a consistent message. -takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible. Represents the Promotion P of the four Ps

Elements of Integrated Communication Strategy

The right message, to the right audience, at the right time... through the right medium 1. Electronic Media 2. Advertising 3. Personal Selling 4. Sales Promotion 5. PR 6. Direct Marketing Can be online or offline Interactive and passive

Action

The ultimate goal of IMC is to prompt _____________.

Communication Process Components

This is made up of: 1. the sender 2. the transmitter 3. encoding 4. communication channel 5. the receiver 6. noise 7. feedback loop

Advertainment

blurring the lines between advertising and entertainment Advertising that is focused on entertaining the end user Ads meant to be so captivating that people will gladly watch them. EX: Merger of entertainment programming with brand messaging, direct promotions, public relations, and advocacy Includes product placement...subtle Good in online and wireless format

Sales Promotion

can be used in a wide variety of situations to stimulate demand among either end users or other channel members Used in conjunction with other forms of IMC Can be used for both short-term and long-term objectives

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

Frequency

# of exposures at a given time -how often the audience is exposed to a communication within a specified period of time

Reach

% of target at least 1X Measure of consumers' exposure to marketing communications; the % of target population exposed to a specific marketing communication such as an ad at least once

Web Tracking

- Time on web pages - # pages viewed - Click Through Rate

Communication Process Step--SENDER

1. The message originates from _________ who must be clearly identified to the intended audience -introducing new products needs to be communicated to consumers by the FIRM

Communication Process Step--Transmitter

2. An agent or intermediary with which the sender works to develop the marketing communications EX: a firm's creative dept. or advertising agency

Interest

After awareness comes persuasion or increasing his or level of interest in the product; The customer must want to further investigate the 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

Direct Marketing

As advertising has declined as a percentage of the total communications budget, this has increased -allows marketers to personalize their message -enables marketers to communicate with an audience that is more likely to respond to their efforts Growing element of IMC Includes e-mail and mobile-commerce Good for multicultural groups Database technology improves

Rule-of-thumb methods

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

D

Compared to other IMC alternatives, _______________ is extremely effective for creating awareness and generating interest in a product. A. public relations B. personal selling C. sales promotion D. advertising

Online and Passive IMC Strategies

Direct marketing like email-marketing is an example

Measuring Success Using Marketing Metrics

Every communication may be measured in terms of: 1. Frequency 2. Reach 3. Gross rating points 4. Web Tracking

Online and Interactive IMC Strategies

Examples are direct marketing like mobile marketing and online marketing like blogs and social media

1. Communicating with Consumers

Focuses on how communications go from firm to consumer and then how marketing communications influence consumers

News Release or press release

Form of PR Announcement regarding changes in organization or the product line

PSA

Form of PR Many nonprofit organizations rely on the media to donate time for advertising for contributions and donors

News conference

Form of PR Meeting held for representatives of the media to announce major news events

Sponsorship

Form of PR Providing support for and associating organization's name with events, programs, people

Action examples other than purchase

Possible ________ include behavioral changes (don't drink and drive), attitude changes (that product is high quality), or physical actions (pick up the phone, log on to the website, volunteer)

B

Public relations are becoming a larger part of many companies' IMC efforts because: A. online couponing has declined. B. consumers have become more skeptical of marketing claims. C. Web tracking software has become more sophisticated. D. gross rating points have become marginalized.

Communication Process Step--Encoding

3. The process of converting the sender's ideas into a message, which could be verbal, visual, or both Transmitter does this

Communication Process Step--Communication Channel

4. The medium--print, broadcast, the internet--that carries the message EX: Coke could transmit thru TV, radio, and print ads

Communication Process Step--Receiver

5. The person who reads, hears, or sees and processes the info contained in the message or ad -this person then decodes the message--by interpreting the senders message

Communication Process Step--Noise

6. Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels

AIDA Model

ATTENTION INTEREST DESIRE ACTION

Planning for and Measuring IMC Success

How do firms determine whether their IMC strategy has worked? It depends on the IMC objective. If the objective is to create awareness for a new product, then the firm would measure increases in customer knowledge and awareness. If it were to generate sales, like an ad in the paper, then sales would be the objective measure. 1. Understand the outcome they hope to achieve before they begin 2. Short term or long term 3. Should be explicitly defined and measured

Offline and passive IMC Strategies

Include: -ads -sales promotions like coupons -PR -Direct marketing like catalogs

Offline and Interactive

Include: -personal selling -sales promotion like contests -direct marketing like telemarketing

How Consumers Perceive Communication

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. Senders adjust messages according to the medium and receivers' traits For example, a cigarette ad for smokers may arouse smokers and induce the desire for a cigarette. For former smokers it may induce a sense of loss. For non-smokers it may not illicit any emotion. Etc.

Ads

Most visible element of IMC Extremely effective at creating awareness and generating interest

Disadvantages of PR

No control over whether the media will use a story or when they may release it. It can be good or bad Once a story has been run, it isn't likely to run again.

Objective and task method

One of the methods used to allocate the IMC Budget PREFERRED METHOD; BEST WAY of Budgeting IMC An IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives -process entails setting objectives, choosing media, and determining costs 1. Set objectives 2. choose media 3. determine costs This is repeated for every product or service

Online Marketing

Websites Blogs Social Media