SMG MK 323 Study Guide - Final Guide: Search Engine Marketing, Integrated Marketing Communications, Public Service Announcement
30 Apr 2018
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MK323 Final Study Guide
MK12: Integrated Marketing Communications I (IMC)
Chapter 18
IMC: the Promotion of 4Ps, concept of designing marketing activities-advertising, personal selling, sales promotion, publiic
relations, direct marketing, and online marketing including social media- in combination to provide clarity, consistency and
maximum communicative impact
• Regard each of the firms marketing communications element as part of a whole, each offers a different means to
connect with the target audience with the desired message
• IMC objectives: increasing awareness, prompting trial, increasing repeat, sales, customer loyalty
3 elements: the consumer, the channels through which the message is communicated, and the evaluation of the result
Communicating with consumers: how consumers perceive the message
The Communication processes
• The sender: be clearly identified to the intended
audience
• The transmitter: sender works with a creative
department to highlight the product
o Encoding: oetig the sede’s ideas into
a message (visual or verbal) (sender says)
• The communication channel: medium-print,
broadcast, the internet, TV, radio
• The receiver: person who reads, hears, or sees and
processes the information contained the
message/advertisement
o Decoding: eeie itepets the sede’s
message (Receivers hear)
• Noise: any interference the stems from competing the messages, lack of clarity in the message, or a flaw in the medium
adetise i espape that taget aket does’t ead
• Feedback Loop: allow receiver to communicate with the sender and thereby informs the sender whether the message was
received and decoded properly (customer purchase of the item, complaint or compliment, redemption of a coupon or rebate, a
teet…
How consumers perceive communication
• Receivers decode messages differently: receivers decode a message in his or her own way depending on their level of
knowledge and attitude toward the brand
• Seders adjust essages accordig to the ediu ad receivers’ traits: marketers make adjustments to their messages and
media depending on whether they want to communicate with suppliers, shareholders, customers, or the general public, as we
as specific segments of those groups
The AIDA model
• Awareness (think)
o Brand awareness: Strength of the link between the brand name and type of merchandise or service if the minds of
customers
o Aided Recall: consumers indicate they know the brand when the name is presented
o Top of mind awareness: consumers mention a specific brand name first when asked about a product or service
(highest level of awareness)
• Interest (feel): messages include attributes of interest
• Desire (feel): I like it to I want it
• Action (do): search for the product to make purchase
o The Lagged Effect: a delayed response to a marketing communications campaign
Elements of an integrated marketing communications strategy
• Advertising: most visible element of IMC, extremely effective and generating interest
o Placement of announcements and persuasive messages in time or space purchased in any of the mass media by
business firms, nonprofit organizations, government, agencies, and individuals who seek to inform and/or persuade
members of a particular target market or audience about their products, services organizations or ideas
• Public Relation: organizational function that manages the fi’s ouiatios to ahiee a aiet of ojeties, iludig
building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive
relationships with the media.
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o Free media attention
• Sales Promotions: special incentives or excitement-
building programs that encourage the purchase of a
product or service (coupons, rebates, contests, free
samples, point of purchase (POP) displays
o Use in conjunction with other advertising or
personal selling programs
o Can be aimed at both end user consumers or
channel member, part of push or pull strategies
o Both short term and long term objectives
o CRM- build customer loyalty
• Personal selling: two-way flow of communication between a
ue ad a selle to ifluee the ue’s puhase deisio,
most efficient to sell
o Some products require the help of a salesperson, more
expensive than other forms
o Salespeople can add significant value, makes the
expense worth it
o Face to face, video teleconferencing, on the
telephone, over the internet
• Direct marketing: communicates directly with target customers
to generate a response or transaction
o Tradition: mail and catalog through the mail
o E-mail and mobile marketing, inform customers of ne
merchandise and special promotions, confirm the
receipt of an order, indicate when an order has been
shipped
o can see customer information on the database, easily focus on direct marketing efforts appropriately (Database
mining)
o growing element, good for niche markets
o Mobile Marketing: marketing through wireless handheld devices
• Online Marketing
o Websites: sell on internet, community building, reviews
o Blogs: periodic posts on a common webpage, communicate trends, special events, positive word of mouth, connect
ustoes foig a ouit, allo the opa to espod dietl to ustoe’ oet, deelop log te
relationship with the company
o Social media: media content distributed through social interactions (youtube, facebook, twitter)
▪ Aggregate information about products, prices, and promotions
• Form a community, like-minded consumers
• 4E Framework for social media
Planning for and measuring IMC success
• Goals: understand the outcome they hope to achieve before they begin
o Short term: increase awareness, prompting trials
o Long term: increase repeat, sales, customer loyalty
• Setting and allocating the IMC budget
o Objective-and-task method: determines the budget required to undertake specific tasks to accomplish communication
objectives
▪ Set objective: Establish a set of communication objectives
▪ Choose media: Determine which media best reach the target market
▪ Determine cost: how much it will cost to run the number and types of communications necessary to achieve
the objectives
▪ The sum of all the individual communication plan budgets becomes the firms total marketing communications
budget
o Rule of thumb methods: use prior sales and communication activities to determine the present communication budget
▪ Competitive parity: the ouiatio udget is set so that the fi’s shae of ouiatio epeses
equals its share of the market
• Does’t allo fi to exploit unique opportunities or problems, market share will stay the same
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▪ Percentage of sales: fixed percentage of forecasted sales. Doesnt take into account of new plans, assume the
same used in the past of by competitors
▪ Available budget: forecast sales and expenses, excluding communications. Difference between the forecast
sales and expenses plus desired profit is reserved for the communication budget. (money available after
opering costs and profits have been budgeted)
• Assumes communication expenses do not stimulate sales and profit
Measuring success using marketing metrics
• Traditional media
o Frequency: number of times reached target consumers are exposed to an ad within certain time
o Reach: the % of the target population exposed to a specific marketing communication at least once within a certain
time period
o Cost Per Thousand (CPM)
▪ Typically, CPMs fall between $15-150. Media with CPMs >$!50 may need to be re-evaluated
▪ Evaluate based on % readers in target market
o Gross rating points (GRP)= reach x frequency
• Web-based media
o Web tracking softwares: how much time viewers spend on particulat webpages, the number of pages they view, how
a ties uses lik ae ads, hih esites the ae fo… to ustoize page gettig to ko isitos
Planning, implementing, and evaluating IMC programs-an illustration of google advertising
• Social shopping: use of the internet to communicate about product preferences with other shoppers (CRM, matching new
ehadise ith ustoes’ past puhase ehaios ad little pesoal uggets ifoatio, eail ustoes, eouage
usage of blogs)
• Search engine marketing (SEM): to reach customers, Google Adworks allow advertisers to show up in the sponsored links
section, determine the best kewords
o Estimate reaches: use the number of impressions (# times ad appears in front of the user) and click through rate (CTR)
▪ CTR=click/impressions
o Relevance: how useful an ad message is to the consumer doing the search
o Return on marketing investment (ROMI) =((gross margin-marketing expidenture)/marketing expidenture ) x100
Chapter 19: Advertising, public relations, and sales
promotion
Advertising:
• paid form of communication
• from an identifiable source about an
organization, product, service, or idea
• must be carried by some medium-TV,
adio, pit, the e, tshit, sidealks,…
• to persuade the receiver to take some
action now or in the future
• most visible form of marketing
communication
• overlap
o external overlap: similar readers
between 2 medias
o internal overlap: those read >1 issue
of the same media
Steps in Planning and executing an Ad Campaign
4 Views of Advertising Response
Impact
Number of Exposures
Learning Curve with
wear-out effect
Linear
Threshold Effect
Diminishing
Returns
What do each of these patterns mean?
Which one are we using in Core ?
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Imc objectives: increasing awareness, prompting trial, increasing repeat, sales, customer loyalty. 3 elements: the consumer, the channels through which the message is communicated, and the evaluation of the result. Communicating with consumers: how consumers perceive the message. The sender: be clearly identified to the intended audience. The transmitter: sender works with a creative department to highlight the product: encoding: (cid:272)o(cid:374)(cid:448)e(cid:396)ti(cid:374)g the se(cid:374)de(cid:396)"s ideas into a message (visual or verbal) (sender says) The communication channel: medium-print, broadcast, the internet, tv, radio. Feedback loop: allow receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly (customer purchase of the item, complaint or compliment, redemption of a coupon or rebate, a t(cid:449)eet (cid:895) How consumers perceive communication: receivers decode messages differently: receivers decode a message in his or her own way depending on their level of knowledge and attitude toward the brand.
