This document discusses integrated marketing communications (IMC). It begins by outlining the learning objectives which are to identify the communication process, explain the AIDA model, describe integrative communication channels, explain IMC budget allocation, and identify metrics. It then provides an overview of the key components of IMC including the communication process, the AIDA model of awareness, interest, desire and action, and various communication channels such as advertising, public relations, sales promotions, personal selling, and direct marketing. It stresses that an effective IMC strategy utilizes multiple channels in an integrated way.

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CHAPTER
Integrated Marketing
Communications
18
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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L E A R N I N G O B J E C T I V E S
Identify the components of the communication
process.
Explain the four steps in the AIDA model.
Describe the various integrative communication
channels.
Explain the various ways used to allocate the
integrated marketing communications (IMC)
budget.
Identify marketing metrics used to measure IMC
success.
Integrated Marketing Communications
LO1
LO2
LO3
LO4
LO5

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Coca-Cola
©2006-2012 The Coca-Cola Company.

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Integrated Marketing Communications
Results

5. 18-5
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Communicating with Consumers:
The Communication Process
Noise from the environment
Feedback
Receiver
(Consumer)
decodes
message
Sender
(Firm)
Transmitter
encodes
message
Communications
channel
(Media)

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How Consumers Perceive Communication
Receivers decode
messages differently
Senders adjust messages
according to the medium
and receivers’ traits
©Stockdisc/Getty Images

7. 18-7
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Decoding the Message
How does the
advertiser help the
receiver decode this
as a breakfast food
Courtesy HJ Heinz Company

8. 18-8
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The AIDA Model
Awareness
Interest
Desire
Action
Think
Feel
Do

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AIDA Model
Where is this ad in the
AIDA model?
©2008 KCWW Reprinted with Permission

10. 18-10
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Awareness
 Senders first must
gain the attention
 A multichannel
approach increases
the likelihood the
message will be
received
CourtesyPeapod

11. 18-11
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Interest
 After awareness
comes persuasion
 The customer must
want to further
investigate the
product/service
©2010 Dell Inc All Rights Reserved
©2010 Dell Inc All Rights Reserved

12. 18-12
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Desire
I like it I want it
blue jean images/Getty Images

13. 18-13
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Action
Purchase is just one type
of action… what other
actions can IMC ask
consumers to take?
©BananaStock/PunchStock

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The Lagged Effect
 Advertising does not
always have an
immediate impact
 Multiple exposures
are often necessary
 It is difficult to
determine which
exposure led to
purchase
©image100/PunchStock

15. 18-15
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1. What are the different steps in the
communication process?
2. What is the AIDA model?
CHECK YOURSELF

16. 18-16
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Elements of an Integrated Marketing
Communication Strategy
• Personal selling
• Sales promotions
(e.g., contests)
• Direct marketing
(e.g., telemarketing)
• Advertising
• Sales promotions
(e.g., coupons)
• Public relations
• Direct marketing
(e.g., catalogs)
• Direct marketing
(e.g., mobile marketing)
• Online marketing
(e.g., blogs, social media)
• Direct marketing
(e.g., e-mail marketing)
Interactive
Passive
Online
Offline

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Advertising
 Most visible element of
IMC
 Extremely effective at
creating awareness and
generating interest
CourtesyNationalFluidMilkProcessorPromotionBoard;
Agency:LoweWorldwide,Inc.

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Public Relations (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
Courtesy Citirx Online, LLC

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Sales Promotions
 Can be aimed at both end
user consumers or
channel members
 Used in conjunction with
other forms of IMC
 Can be used for both
short-term and long-term
objectives
Retailmenot.com Website
Courtesy Dole Food Company, Inc.

20. 18-20
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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
Royalty-Free/CORBIS

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Direct Marketing
 Growing element of IMC
 Includes e-mail and m-
commerce
 Good for multicultural
groups
 Database technology
improves
CourtesyGlobalSpec,Inc

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adidas
Anthony Saint James/Getty Images

23. 18-23
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Online Marketing
Websites
Blogs
Social Media
McGraw-HillCompanies,Inc.MarkerDierker,photographer.

24. 18-24
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Websites
What websites do
you visit all the time?
Why?

25. 18-25
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Blogs
What can
Southwest
learn from
their blog?
Courtesy Southwest Airlines

26. 18-26
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Social Media
Advantages
to firms?
Challenges?

27. 18-27
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1. What are the different elements of an IMC
program?
CHECK YOURSELF

28. 18-28
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Planning for and Measuring IMC Success
Understand the outcome
they hope to achieve
Short-term or long-term
Should be explicitly defined
and measured
Lawrence Lawry/Getty Images

29. 18-29
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Setting and Allocating the IMC Budget
Objective-and-task
method
Rule-of-thumb methods
©BrandXPictures/PunchStock

30. 18-30
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Rule of Thumb Methods

31. 18-31
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Measuring Success
Using Marketing Metrics
Frequency
Reach
Gross rating points
Web Tracking
Digital Vision/Getty Images

32. 18-32
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Search Engine Marketing
Clicks
Impressions
Click through rate
Return on investment (ROI)
Transit, an upscale sneaker store in New York City
modeled after vintage New York City subway trains.

33. 18-33
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Transit
Click through results
What does the data tell you?

34. 18-34
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Transit IMC goals and results

35. 18-35
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Swiped ID Theft in America

36. 18-36
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1. Why is the objective-and-task method of
setting an IMC budget better than the rule-of-
thumb methods?
2. How do firms use GRP to evaluate the
effectiveness of traditional media?
3. How would a firm evaluate the effectiveness
of its Google advertising?
CHECK YOURSELF

37. 18-37
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Return to slide
Clicks, as in mouse clicks, are used to assess
the effectiveness of advertising expenditures.
Glossary

38. 18-38
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Return to slide
The click through rate (CTR) is the number of
clicks divided by the number of impressions.
Glossary

39. 18-39
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Return to slide
The frequency of exposure is how often the
audience is exposed to a communication within
a specified period of time.
Glossary

40. 18-40
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Return to slide
Gross rating points (GRP) represents reach
multiplied by frequency.
Glossary

41. 18-41
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Return to slide
The number of impressions is the number of
times an ad appears in front of a user.
Glossary

42. 18-42
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Return to slide
The objective-and-task method determines the
budget required to undertake specific tasks to
accomplish communication objectives.
Glossary

43. 18-43
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Return to slide
Online couponing is a promotional Web
technique in which consumers print a coupon
directly from a site and then redeem the coupon
in a store.
Glossary

44. 18-44
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Return to slide
Online referring is when consumers fill out an
interest or order form and are referred to an
offline dealer or firm that offers the product or
service of interest.
Glossary

45. 18-45
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Return to slide
Reach is the percentage of the target population
exposed to a specific marketing communication
at least once.
Glossary

46. 18-46
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Return to slide
The return on investment (ROI) is the difference
of the sales revenue and the advertising cost
divided by the advertising cost.
Glossary

47. 18-47
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Return to slide
Rule-of-thumb methods use prior sales and
communication activities to determine the
present communication budget.
Glossary

48. 18-48
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Return to slide
Social media is media content distributed
through social interactions.
Glossary

49. 18-49
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Return to slide
Web tracking software indicates how much time
viewers spend on particular Web pages and the
number of pages they view.
Glossary