Chapter 17-Integrated Marketing Communications

The Communication Process

Sender: the company or organization that wants to deliver a message

ex. Nike launching a new sneaker campaign

Transmitter: The marketing team, ad agency, or spokesperson that encodes the message

Ex. Nike’s advertising agency creating TV ads and social media content

Channel: The medium used to send the message

ex. Instagram, TV commercials, billboards

Receiver: The audience or customer who decodes the message

ex. A consumer watching the Nike ad and understanding the brand’s message

Feedback: The response from the receiver back to the sender

ex. Consumers buying the sneakers or posting reactions on social media

Noise: Anything that distorts or interrupts the message

ex. A competing brand’s ad, spam emails, or misinterpretation of the Nike ad

AIDA Model “Think, Feel, Do”

Awareness: Customer becomes aware of a product

Interest: Customer wants to learn more

Desire: Customer develops a preference (I like it > I want it)

Action: Customer makes a purchase

ex. Apple iPhone launches campaign ads > website > desire > buy online

Advertising

Most visible element of an IMC strategy

Public Relations

“Free” or earned communication to build goodwill or manage reputation

Ex. Tesla press release about sustainability “producing zero-emission cars”

Public Reputation

Sales Promotion

Short-term incentives to encourage purchases

ex. “Buy one, get one free” shoes at Nike

Personal Selling

Direct interaction between salesperson and customer

ex. Car salesperson explaining features of a Tesla

Direct Marketing

Sending messages directly to individual customers to generate a response or transaction

ex. Email campaigns for Amazon deals

Online Marketing

Digital Strategies to reach consumers online

ex. Wesbites, blogs, social media

Rule of Thumb Budgeting

-simple, quick methods based on heuristics

Competitive party: Match competitors’ spending

ex. Pepsi spends $100M > Coca Cola spends $100M

Percentage of Sales: spend a % of past or expected sales (assume the same percentage used in the past, or by competitors, is still appropriate for the firm)

Ex. 5% of last year’s revenue allocated to marketing

Available Budget: Spend whatever money is left after other expenses

Objective and Task Budgeting

Set specific goals and determine costs needed to achieve them

ex. Increase Instagram followers by 10% > Budget $50,000 for influencer campaigns

Frequency

How often the target audience sees/ hears the message

ex. Ad seen 3 times per week

Reach

The % of the target audience exposed to the message at least once

ex. 50% of teens see the Nike ad

Gross Rating Points (GRPs)

Measure of advertising impact= Reach x Frequency

ex. 50% Reach x 3 frequency = 150 GRPs