Chapter 18
AIDA model
Awareness, Interest, Desire, Action
available budget
Marketers forecast their sales and expenses, excluding communication, during the budgeting period. The difference between the forecast sales and expenses plus desired profit is reserved for the communication budget. That is, the communication budget is the money available after operating costs and profits have been budgeted.
Setting and Allocating the IMC Budget
Objective-and-task method Rule-of-thumb methods
Integrated Marketing Communications
Represents the promotion dimension of the six Ps; encompasses a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media—in combination to provide clarity, consistency, and maximum communicative impact.
return on marketing investment (ROMI)
The amount of profit divided by the value of the investment. In the case of an advertisement, the ROI is (the sales revenue generated by the ad - the ad's cost) / the ad's cost (gross margin-marketing expenditure / marketing expenditure) x 100
lagged effect
a delayed response to a marketing communication campaign
percentage of sales
communication budget is a fixed percentage of forecasted sales
competitive parity
communication budget is set so that the firms share of communication expenses = its share of the mkt
interest
communication to increase consumers interest level once they are aware of the company or product exists
rule of thumb methods
competitive parity, percentage of sales, available budget
objective-and-task method
determines the budget required to undertake specific tasks to accomplish communication objectives
Measuring Success Using Marketing Metrics
firm decided how to set its budget for mktg communications & its campaigns using various mktg metrics.
desire
firm has piqued the interest of its target mkt, the goal of subsequent IMC messages should move the consumer from i like it to i want it
channels of an IMC strategy
interactive offline: personal selling sales promo direct mktg passive offline: advertising public relations sales promo direct mktg interactive online: direct mktg online mktg passive online: direct mktg
communication process
noise from the environment -> firm -> transmitter encodes message -> communications channel (media) -> receiver (consumer) decodes message -> feedback
awareness
the potential customer comes to know about the product but lacks details
action
ultimate goal of any form of mktg communications is to drive the receiver to action
rule-of-thumb method
use prior sales and communication activities to determine the present communication budget
