Chapter 17: Integrated Marketing Communications (aka IMC)

Integrated Marketing Communications
Integrated Marketing Communications = IMC
represents the promotion dimension of the four P’s; encompasses a variety of communication disciplines– general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media–in combination to provide clarity, consistency, and maximum communicative impact
the firm form which an IMC message originates; the sender must be clearly identified to the intended audience
an agent or intermediary with which the sender works to develop the marketing communications; for example, a firms creative department or an advertising agency
the process of converting the senders ideas into a message, which could be verbal, visual, or both.
Communication Channel
the medium–print, broadcast, the internet–that carries the message.
The person who reads, hears, or sees and processes the information contained in the message or advertisement.
the process by the receiver interprets the senders message
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
Feedback Loop
allows the receiver to communications with the sender and thereby informs the sender whether the message was received and decoded properly
AIDI Model
a common model of the series of mental stages through which consumers move as a result of marketing communications:
awareness-> Interests-> Desire-> Action->
Brand Awareness
measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging or slogan) in the firms communications to consumers
Aided Recall
occurs when consumers recognize a name (e.g., of a brand) that has been presented to them.
Top-of-Mind awareness
a prominent place in peoples, memories that triggers a response without them having to put any thought into it.
Lagged affect
a delayed response to a marketing communication campaign.
a paid form of communication from an identifiable source delivered through a communication channel and designed to persuade the receiver to take some action, now or in the future.
public relations
the organizational function that manages the firm’s communications to achieve a variety of objectives, including building and maintining a positive image, handeling or heading off unfavorale stories or events, and maintaining positive relationships with the media.
sales promotions
special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.
personal selling
the two-way flow of communication between a buyer and a seller that is designed to influence the buyers purchase descision.
direct marketing
sales and promotional techniques that deliever promotional maerials individually.
mobile marketing
marketing through wireless handheld devices
social media
media content used for social interactions such as YouTube, Facebook, and Twitter.
object-and-task method
an IMC budgeting method that determines, the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives
rule-of-thumb methods
budgeting methods that base the IMC budgeting 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.
Measure of how often the audience is exposed to a communication within a specific period of time.
Measure of consumers’ exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once.
gross rating points= GRP
Measure used for various media advertising–print, radio, or telivision; GRP = reach x frequency.
search engine marketing = SEM
a type of web advertsing whereby companies pay for keywords that are used to catch consumers attention while brwsing a search engine.
the number of times an advertisement appears in front of the user
click through rate = CTR
the hnumber of times a user clicks on an online ad divided by the number of impressions.
in the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer.
return of investment = ROI
the amount of profit divided by the value of the investment. in the case of an advertisment, the ROI is (the sales revenue generated by the as – the ad’s cost) / the ad’s cost
How does IMC relate to the 4Ps?
represents the promotion dimension of the four P’s
What are the new communications realities? What does this mean in terms of shifting the communications model?
– More fragmentation because of technology
– Information technology
– Model shift
•Less broadcasting = broad marketing
•More narrowcasting = niche marketing
What is the purpose of Integrated Marketing Communications?
To deliver clear, consistent, and compelling messages
IMC encompasses what channels/components? What is entailed in each of these? What are the advantages/disadvantages of each of these? Which tools are associated with each of these channels?
it 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

– Advertising
•Paid & from an identifiable source
•Why you would want to buy our product vs. someone else’s
•Most visible element of IMC
•Generates awareness & interest (CIADI Model)
*Tools: broadcast, print, internet, outdoor

– Sales Promotion
•Special incentives
•Excitement-building programs
•End user or channel members
*Tools: Discounts, coupons, POP displays, demonstrations, premiums, contests, sweepstakes, rebates, sampling, pop-up stores, cross-promoting, specialty advertising

– Public Relations
•”Free” media attention
•Importance of PR has grown
*Tools: new releases, annual reports, brochures, PSAs, press kits, event sponsorship.

– Personal Selling
•Two-way flow of communication
•A person having a dialogue trying to get you to buy
•Buyer & seller
•Influence purchase decision
-Over the internet
-Video teleconferencing

– Direct Marketing
•Easily personalizable
•Growth of data
•New technologies
*Tools: Telephone, mail, catalogs, email, mobile marketing

– Online Marketing
•Content distributed through online & mobile technologies
•Interpersonal interactions
•Build connections
•Share information
•Clear call to action
*Tools: websites, blogs, social media

What and who is involved in the communications process? What does each entity entail?
sender-> transmitter encodes message->communications channel (media)-> reciever (consumer) decodes message

-Sender: The firm from which an IMC message originates; the sender must be clearly identified to the intended audience.

-Transmitter: An agent or intermediary with which the sender works to develop the marketing communications; for example, a firm’s creative department or advertising agency.

-Communications Channel: The medium—print, broadcast, the Internet—that carries the message.

-Receiver: The person who reads, hears, or sees and processes the information contained in the message or advertisement.

What is important for marketers to understand when it comes to how consumers perceive communications?
Each receiver decodes a message in his or her own way
What is the AIDA model and what does it suggest? What is entailed in each step of the mental stages?
awareness, Interest, Desire, Action
-A common model of the series of mental stages through which consumers move as a result of marketing communications; mental to actions
•A-AWARENESS: attention of the consumer
Top-of-mind awareness vs. Aided recall
•Aided recall: means with a little bit of help, you remember it.
Ex.) show you a logo
•Top-of-mind awareness: knowing something off the top of your head.
Ex.) Naming a hockey team off the top of your head.

•I-INTERESTS: Want to do a little more research

•D-DESIRE: Like the product of service and want it

•A-ACTION: Buy the product or service

What is the lagged effect? Why is it important to understand?
a delayed response to a marketing communication campaign.
The lagged effect is located between the DESIRE and ACTION mental stages.
When measuring success, what is important when setting strategic goals?
– Outcome hoping to achieve
– Short-term or long term
– Defined & measured
What are types of methods used to plan a marketing communications budget? What do they entail?
– Rule of thumb methods:
•Affordable method: the WORST; how much do we have to spend?
•Issue: Not seen as an investment, it’s seen as a cost
•Percentage-of-sales method: for all of our products, a percentage is set and that becomes the budget
•Issue: new products don’t have a lot of sales
•Competitive parity method: Do what the competition does.
•Issue: making assumptions that the competition knows better than you do about how much should be spent.

– Objective-and-task method:
(1) Set your objectives
(2) Which of the different tasks will best meet objectives
(3) How expensive are those tools
•Harder to do; take more time

How do marketing communications managers state their media objectives? What does this entail?
– Frequency: measuring how often the target audience is exposed to a message within a specified period of time.

– Reach: percentage of the target market that hears about the message at least once.

– Gross Rating Points: Frequency × Reach

How do marketers measure the success of search engine marketing? What does each entail?
– Impressions: how many times an online ad appears in front of a user
– Click through rate: an online measure of reach. The number of times a potential customer actually clicks on ad
– Relevance: how useful is the ad message based on what is put in the search engine
– Return on investment: Sales Revenue – Advertising Cost / Advertising Cost
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