Marketing Final Exam Chapter Notes Chapter 18 Integrated Marketing Communications o The Promotion part of the 4 P s o 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 o IMC programs regard each element as a part of a whole o Three elements consumer channels through which message is communicated and evaluation of the results of the communications Communication process o Sender message originates from the sender who must be clearly identified to intended audience o Transmitter sender works with a creative dept in house or outsourced to develop marketing communications The department receives information and transforms it thus being the transmitter Encoding converting senders ideas into a message o Communication Channel the medium that carries the message o Receiver the person who reads hears or sees and processes the information contained Decoding refers to the process by which the receiver interprets the sender s o Noise any interference that stems from competing messages lack of clarity in message in the message advertisement message or flaw in communication o Feedback Loop allows the receiver to communicate with the sender and thereby informs sender whether message was received and decoded properly AIDA Model ex purchase of an item compliant compliment redemption of promo item tweet about product etc o Receivers decode messages differently o Senders adjust messages according to the medium and receiver traits o Most common model to understand the series of mental stages consumers go through o Awareness Brand awareness the potential customer s ability to recognize or recall that brand name as a particular type of retailer or product service Aided recall when customers indicate they know a brand when the name is presented to them Top of mind awareness highest level of awareness when a consumer mentions a specific brand name first when they are asked about a product service Isn t enough to let consumer know product exists consumers must be persuaded that it is something worth investigating Moving from I like it to I want it Ultimate goal of any communication is to drive the receiver to action o Delayed response to a marketing communication campaign It generally takes several exposures to an ad before a consumer fully processes its message Elements of an IMC Strategy o Interest o Desire o Action The Lagged Effect o Advertising entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media made by business firms nonprofit orgs gov t agencies and individuals who seek to inform persuade members of a particular target market or audience about their products services organizations or ideas Must break through a clutter of other messages to reach its intended audience Often relies on images o Public Relations 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 Relatively passive customers don t have to do anything to receive it o 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 Many are designed to provide short term sales o Personal Selling The two way flow of communication between buyer and a seller that is designed to influence the buyer s purchase decision o Direct Marketing Marketing that communicates directly with target customers to generate a response transaction Mobile marketing marketing through wireless handheld devices o Online Marketing Websites used to build brand image and educate about product services as well as where they can be purchased Blog weblog periodic posts on a common webpage Social media Media content distributed through social interactions Planning IMC Success o Goals the shit you do has to have a purpose basically o Setting and Allocating the IMC Budget Objective and task method Determines budget required to undertake specific tasks to accomplish communication objectives Marketing establishes set of communication objectives determines which media best reach the target market and how much it will cost to run the number and types of communications necessary to achieve objectives Rule of thumb method use prior sales and communication activities to determine the present communication budget o Measuring Success Traditional media Frequency how often audience is exposed to a communication within a specified time period Reach percentage of target population exposed to a specific marketing communication Gross rating points GRP represent reach times frequency Web based media Generally requires web tracking software o Search Engine Marketing a type of web advertising whereby companies pay for keywords that are used to catch consumers attention while browsing a search engine o Impressions the number of times an ad appears in front of a user o Click through rate CTR the number of times a user clicks on an ad divided by the number of impressions o Relevance how useful an ad message is to the consumer doing the search Chapter 19 Advertising a paid form of communication delivered through media from an identifiable source about an organization product service or idea designed to persuade the receiver to take some action now or in the future o Advertising vs promotion Advertising is not free Advertising must be carried by some medium Legally source of message must be known Is persuasive designed to get consumer to do something Steps in Planning Executing an Ad Campaign Step1 Identify a Target Audience Step 2 Set Advertising Objectives o Informative advertising a communication used to create and build brand awareness with the ultimate goal of moving the customer through the buying cycle to a purchase o Persuasive advertising communication used to motivate consumers to take action o Reminder advertising communication used to remind or prompt repurchases especially for products that have gained market acceptance are in maturity o Focus of Advertisements Product focused advertisements inform persuade or remind consumers about a specific product service Institutional advertisements inform