Download Grewal and Levy, 1e

Marketing
Chapter 17
Integrated Marketing
Communications
Dhruv Grewal
Michael Levy
McGraw-Hill/Irwin
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.
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Volvo
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Introducing the new S60
required a new way of
marketing
Consumers felt Volvo was
boring but safe
Using IMC Volvo was
able to demonstrate the
new style elements
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Integrated Marketing
Communications
Communication channel
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Communicating with Consumers: The
Communication Process
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Test Your Knowledge
Which of the
A)
B)
C)
D)
following is NOT considered a form of feedback?
A customer’s purchase of an item
A complaint or compliment
The redemption of a coupon or rebate
A customer telling their friend about a purchase
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How Consumers Perceive Communication
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Receivers decode messages
differently
Senders adjust messages
according to the medium and
receivers’ traits
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The AIDA Model
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Awareness
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Senders first must gain the
attention of the consumers
A multichannel approach
increases the likelihood the
message will be received
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Interest
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After the customer is aware,
they must be persuaded
The customer must want to
further investigate the
product/service
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Desire
I like it
I want it!
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Action
Purchase is
just one type of
action
Discussion question
What other actions
can IMC ask
consumers to take?
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Lagged Effect
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Advertising does not
always have an
immediate impact
Multiple exposures are
often necessary
It is difficult to determine
which exposure led to
purchase
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Entrepreneurial Marketing 17.1:
Oxygen: The Network for Women
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What type of TV program do
today’s women want?
Oxygen is fun and
entertaining but
acknowledges women’s
intelligence
Uses IMC to deliver a
consistent message about
Oxygen
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Elements of an Integrated
Communication Strategy
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Advertising
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Most visible element of IMC
Extremely effective at
creating awareness and
generating interest
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Test Your Knowledge
Since the 1990’s, advertising’s share of total promotional dollars
has __________.
A)
risen
B)
fallen
C)
remained the same
D)
fluctuated wildly
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Personal Selling
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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
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Sales Promotions
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Can be aimed at both end
user consumers or channel
members
Used in conjunction with other
forms of IMC
Can be used for both shortterm and long-term objectives
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Direct Marketing
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Easily personalizable
Growth of databases has
fueled the growth of direct
marketing
New technologies have
opened new direct marketing
channels
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Test Your Knowledge
What factor has enabled marketers to identify and track
consumers over time and across purchase situations,
contributing to the rapid growth of direct marketing?
A)
Online surveys
B)
The increased use of customer databases
C)
Infomercials
D)
Point-of-purchase displays
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Using M-Commerce for IMC
How can firms use the new capabilities of
mobile technology to deliver marketing
communications?
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Case in Point: Warner Brother’s Studio
2.0
Challenge
To use new capabilities of Mobile
technology.
Answer
Warner Brother’s established
Studio 2.0 to create short-form
broadband and mobile content for
marketers. Enables marketers to
create entertainment/advertising
content to be viewed online or via a
mobile device.
Results
Anheuser Busch had signed on and
launched BudTV during the 2007
Super Bowl.
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Public Relations (PR)
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“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
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PR Toolkit
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Test Your Knowledge
What is the key benefit of public relations versus other forms of
marketing communications?
A)
it is “free”
B)
it is often more credible
C)
can reinforce the advertising
D)
these are all benefits of PR
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Sponsorship in Motion
What do sponsor’s do when top athletes
change teams?
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Case in Point: David Beckham and
Adidas
Challenge
Answer
Results
Keeping the brand name
sponsorship consistent when top
athletes change teams.
Adidas already has a $10m
individual contract with David
Beckham. Now he is moving to LA to
play for the Galaxy, which it already
sponsors the jerseys for.
Adidas has announced that it will
take on more of a sponsorship role.
The Adidas name and logo will be
featured more prominently on team
apparel.
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Electronic Media
Corporate blogs
Online games
Text messaging
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Results-Driven Elements: Planning for
and Measuring IMC Success

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Understand the outcome they
hope to achieve before they
begin
Short-term or long-term
Should be explicitly defined
and measured
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Budget
Objective-and-task
method
Rule-of-thumb
methods
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Budget
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Test Your Knowledge
In which rule-of-thumb method assumes communication
expenses do not stimulate sales and profit?
A)
competitive parity
B)
frequency
C)
affordable budgeting
D)
percentage-of-sales
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Measuring Success
Frequency
Reach
Gross rating points
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Online Measurements
Web tracking
software
Online couponing
Online referring
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Legal and Ethical Issues in IMC
Commercial speech
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Message with an
economic motivation
Must be fact based
Examples: Advertising
and direct marketing
Non-Commercial speech
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Message with no
economic motivation
Protected under the First
Amendment
Example: PR
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Stealth Marketing
Stealth marketing
Viral marketing
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Ethical Dilemma 17.1: Is It Deception to
Disguise the Message Sender?

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Marketers using websites to
promote movies and TV
shows
The sites do not identify that
they are promotional tools
Is this deception?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Chapter 17 Glossary
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Advertising: 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.
Communication channel: The medium—print, broadcast, the Internet—that carries the
message.
Direct marketing: Sales and promotional techniques that deliver promotional materials
individually to potential customers.
Frequency: Measure of how often the audience is exposed to a communication within a
specified period of time.
Gross rating points (GRP): Measure used for various media advertising—print, radio,
or television; GRP = reach × frequency.
Integrated marketing communications (IMC): Represents the promotion dimension of
the four Ps; 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.
Lagged effect: A delayed response to a marketing communication campaign.
Objective-and-task method: 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.
Personal selling: The two-way flow of communication between a buyer
and a seller that is designed to influence the buyer’s purchase decision.
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Chapter 17 Glossary (continued)
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Public relations (PR): The organizational function that manages the firm’s
communications to achieve a variety of objectives, including building and
maintaining a positive image, handling or heading off unfavorable stories or
events, and maintaining positive relationships with the media.
Reach: 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.
Rule-of-thumb methods: Budgeting methods that bases 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.
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.
Stealth marketing: A strategy to attract consumers using promotional tactics
that deliver a sales message in unconventional ways, often without the target
audience knowing that the message even has a selling intent.
Viral marketing: A marketing phenomenon that encourages people to pass
along a marketing message to other potential consumers.