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Chapter 14

Management and Organizational Studies 2320A/B Chapter 14: Chapter 14


Department
Management and Organizational Studies
Course Code
MOS 2320A/B
Professor
Ben Marcus
Chapter
14

This preview shows pages 1-2. to view the full 8 pages of the document.
INTEGRATED MARKETING COMMNICATIONS
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 digital
media) in combination to provide clarity, consistency and maximum
communicative impact
-
3 components:
Consumer/target market
Channels
Evaluation of results
-
COMMUNICATING WITH CONSUMERS
The Communication Process
Sender - the firm from which an IMC message originates, the sender must be clearly
identified to the intended audience
Deceptive advertising - a representation, omission, act, or practice in an
advertisement that is likely to mislead consumers acting reasonably under the
circumstances
Transmitter - an agent or intermediary with which the sender works to develop the
marketing communications
Ad agency, marketing department, etc.
-
Encoding - the process of converting the sender's ideas into a message, which could
be verbal, visual, or both
Communication channel - the medium that carries the message
Receiver - the person who reads, hears, or sees and processes the information
contained in the message or advertisements
Decoding - the process by which the receiver interprets the sender's message
Noise - any interference that stems from competing messages, a lack of clarity in the
message, or a flaw in the medium
Problem for all communication channels
-
Feedback loop - allows the receiver to communicate with the sender and thereby
informs the sender whether the message was received and decoded properly
How Consumers Perceive Communication
Each receiver decodes a message differently
Sender has little control over what meaning will be taken
-
Senders adjust messages according to the medium and receivers' traits
-
STEPS IN PLANNING AN IMC CAMPAIGN
*see exhibit 14.2
Identify Target Audience1.
Conduct research to identify and then use it to set tone and pick medium
-
Must remember the target audience might not be the current users of the
product
-
Come messages also may be directed at portions of audiences who are not part
of the target market but who participate in the purchase process
-
Set Objectives2.
Understand outcome they wish to achieve
-
Goals serve as a benchmark for success or failure
-
Can be short or long term
-
All marketing communications aim to achieve certain objectives: inform,
persuade, and remind customers
-
Setting objectives is a push strategy
-
Advertising to consumers is a pull strategy
-
Determine Budget3.
Should combine methods
-
Must consider role advertising plays in their attempt to meet objectives
-
Ad costs vary over product life cycle
-
Nature of market plays a role
-
Objective and task method - determines the cost required to undertake specific tasks
to accomplish communication objectives
Process entails setting objectives, choosing media, and determining costs
-
Limitations:
Difficult to identify the specific tasks that will achieve the objectives
-
Competitive parity method - the firm's share is the communication expenses is in line
with its market share
Often used by large companies
-
Limitations:
Prevents firm form exploiting unique opportunities or problems they
confront in a market
If all competitors use this method their market shares will stay the same
over time
-
Percentage of sales - based on a fixed percentage of forecasted sales
Limitations:
Assumes the percentage used in the past or by competitors is still
appropriate for the firm
Does not take into account new plans
-
Affordable budgeting - based on what is left over after other operating costs have
been covered
Often ends with underspending
-
Usually by small companies
-
Limitations:
Assumes communications expenses do not stimulate sales and profit
-
Convey Message4.
Message provides the target audience with reasons to respond in the desired
way
-
Unique selling proposition (USP) - a strategy of differentiating a product by
communicating its unique attributes
Often becomes the common theme or slogan in the entire advertising campaign
-
Should be unique to the brand, meaningful to the consumer, and sustainable
over time
-
Early theories of rhetoric say 3 main types of appeal
Logos/logical
Ethos/ethical
Pathos/emotional
-
Rational appeal - helps consumers make purchase decisions by offering factual
information and strong arguments built around relevant issues that encourage
consumers to evaluate the brand favorably on the basis of the key benefits it provides
Emotional appeal - aims to satisfy consumers' emotional desires rather than utilitarian
needs
Key is to create a bond between consumer and brand
-
Evaluate and Select Media5.
Media planning - the process of evaluation and selecting the media mix that will
deliver a clear, consistent, compelling message to the intended audience
Media mix - the combination of media use and the frequency of advertising in each
medium
Media buy - the purchase of airtime or print pages
Generally largest expense in marketing budget
-
Mass media - channels, such as national newspapers, magazines, radio, and television,
that are ideal for reaching large numbers of anonymous audience members
Niche media - channels that are focused and generally used to reach narrow
segments, often with unique demographic characteristics or interests
*see exhibit 14.6
Advertising schedule - the timing and duration of advertising
Continuous: runs steadily throughout the year and therefore is suited to
products that are consumed continually at relatively steady rates and that
require a steady level of persuasive or reminder advertising
-
Flighting: implemented in spurts, with period of heavy advertising followed by
periods of no advertising
Good for products whose demand fluctuates
-
Pulsing: combines the continuous and flighting schedules by maintaining a base
level of advertising but increasing advertising intensity during certain periods
-
Create Communication6.
Often the style of the ad will dictate the medium to use
-
When using different mediums need to maintain consistency across
-
Must be careful to not let creativity overshadow clarity
-
Ad must be able to:
Attract attention
Provide a reason for viewing
Accomplish what it set out to do
-
Assess Impact Using Marketing Metrics7.
Pretesting - assessments performed before an ad campaign is implemented to ensure
that the various elements are working in an integrated fashion and doing what they
are intended to do
Tracking - includes monitoring key indicators, such as daily or weekly sales volume,
while the advertisement is running to shed light on any problems with the message or
the medium
Post-testing - the evaluation of an IMC campaign's impact after it has been
implemented
Sales impact can be difficult because we don't know that the results were
completely due to the campaign
-
Frequency - measure of how often the target audience is exposed to a communication
within a specifed period of time
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
-
Gross rating points (GRP) - measure used for various advertising
If comparing, must be the same medium
-
𝐺𝑅𝑃 = 𝑟𝑒𝑎𝑐ℎ*𝑥*𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
Click through tracking - measures how many times users click on banner advertising
on websites
Search engine marketing - uses tools such as Google AdWords to increase the visibility
of websites in search engine results
𝐶𝑙𝑖𝑐𝑘*𝑡ℎ𝑟𝑜𝑢𝑔ℎ*𝑟𝑎𝑡𝑒 =𝑛𝑢𝑚𝑏𝑒𝑟*𝑜𝑓*𝑐𝑙𝑖𝑐𝑘𝑠 ÷ 𝑛𝑢𝑚𝑏𝑒𝑟*𝑜𝑓*𝑖𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠
𝑅𝑂𝐼 =𝑠𝑎𝑙𝑒𝑠*𝑟𝑒𝑣𝑒𝑛𝑢𝑒* − 𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔*𝑐𝑜𝑠𝑡
𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔*𝑐𝑜𝑠𝑡 *
INTEGRATED MARKETING COMMUNICATION TOOLS
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
-
Extremely effective for creating awareness of a product or service and
generating interest
-
Entices customers into a conversation with marketers
-
Must break through clutter
-
Personal Selling
The two-way flow of communication between a buyer and a seller that is
designed to influence the buyer's purchase decision
-
Especially important in B2B
-
High cost
-
Most efficient for certain products
-
Sales Promotions
Special incentives or excitement building programs that encourage the purchase
of a product or service
-
Coupons, rebates, contests, etc.
-
Designed to build short-term sales
-
Direct Marketing
Marketing that communicates directly with target customers to generate a
response or transaction
-
Personalization of message
-
Digital approaches have really enriched it
-
Four defining characteristics:
Targeted
Motivates an action
Measurable
Provides info for developing marketing database
-
Benefits to buyers and sellers
-
Increasing ability to track customers over time
-
Direct mail generates $12 for every $1 invested
-
To be effective:
Good contact list
Good offer
Relevant to consumers
-
Catalogues important for stores with no brick and mortar locations
-
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 unfavourable stories, and maintaining positive relationships with the
media
-
Passive
-
Media attention can be crucial to a company's success
-
Free placement
-
Cause-related marketing - commercial activity in which businesses and charities form
a partnership to market an image, product, or service for their mutual benefit
Event sponsorship - a popular PR tool, occurs when corporations support various
activities usually in the culture, sports, or entertainment sectors
Digital Media
Tools ranging from simple website content to far more interactive features such
as corporate blogs, online hames, text messaging, social media and mobile apps
-
Use websites to build brand image ad educate customers
Place to leave online product reviews - boosts loyalty
-
Corporate blogs new form of marketing communications
-
YouTube, Facebook, and Twitter most used social media outlets
Engage customers in a dialogue
-
Chapter 14
Wednesday, March 21, 2018
10:16 AM

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

INTEGRATED MARKETING COMMNICATIONS
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 digital
media) in combination to provide clarity, consistency and maximum
communicative impact
-
3 components:
Consumer/target market
Channels
Evaluation of results
-
COMMUNICATING WITH CONSUMERS
The Communication Process
Sender - the firm from which an IMC message originates, the sender must be clearly
identified to the intended audience
Deceptive advertising - a representation, omission, act, or practice in an
advertisement that is likely to mislead consumers acting reasonably under the
circumstances
Transmitter - an agent or intermediary with which the sender works to develop the
marketing communications
Ad agency, marketing department, etc.
-
Encoding - the process of converting the sender's ideas into a message, which could
be verbal, visual, or both
Communication channel - the medium that carries the message
Receiver - the person who reads, hears, or sees and processes the information
contained in the message or advertisements
Decoding - the process by which the receiver interprets the sender's message
Noise - any interference that stems from competing messages, a lack of clarity in the
message, or a flaw in the medium
Problem for all communication channels
-
Feedback loop - allows the receiver to communicate with the sender and thereby
informs the sender whether the message was received and decoded properly
How Consumers Perceive Communication
Each receiver decodes a message differently
Sender has little control over what meaning will be taken
-
Senders adjust messages according to the medium and receivers' traits
-
STEPS IN PLANNING AN IMC CAMPAIGN
*see exhibit 14.2
Identify Target Audience
1.
Conduct research to identify and then use it to set tone and pick medium
-
Must remember the target audience might not be the current users of the
product
-
Come messages also may be directed at portions of audiences who are not part
of the target market but who participate in the purchase process
-
Set Objectives
2.
Understand outcome they wish to achieve
-
Goals serve as a benchmark for success or failure
-
Can be short or long term
-
All marketing communications aim to achieve certain objectives: inform,
persuade, and remind customers
-
Setting objectives is a push strategy
-
Advertising to consumers is a pull strategy
-
Determine Budget
3.
Should combine methods
-
Must consider role advertising plays in their attempt to meet objectives
-
Ad costs vary over product life cycle
-
Nature of market plays a role
-
Objective and task method - determines the cost required to undertake specific tasks
to accomplish communication objectives
Process entails setting objectives, choosing media, and determining costs
-
Limitations:
Difficult to identify the specific tasks that will achieve the objectives
-
Competitive parity method - the firm's share is the communication expenses is in line
with its market share
Often used by large companies
-
Limitations:
Prevents firm form exploiting unique opportunities or problems they
confront in a market
If all competitors use this method their market shares will stay the same
over time
-
Percentage of sales - based on a fixed percentage of forecasted sales
Limitations:
Assumes the percentage used in the past or by competitors is still
appropriate for the firm
Does not take into account new plans
-
Affordable budgeting - based on what is left over after other operating costs have
been covered
Often ends with underspending
-
Usually by small companies
-
Limitations:
Assumes communications expenses do not stimulate sales and profit
-
Convey Message4.
Message provides the target audience with reasons to respond in the desired
way
-
Unique selling proposition (USP) - a strategy of differentiating a product by
communicating its unique attributes
Often becomes the common theme or slogan in the entire advertising campaign
-
Should be unique to the brand, meaningful to the consumer, and sustainable
over time
-
Early theories of rhetoric say 3 main types of appeal
Logos/logical
Ethos/ethical
Pathos/emotional
-
Rational appeal - helps consumers make purchase decisions by offering factual
information and strong arguments built around relevant issues that encourage
consumers to evaluate the brand favorably on the basis of the key benefits it provides
Emotional appeal - aims to satisfy consumers' emotional desires rather than utilitarian
needs
Key is to create a bond between consumer and brand
-
Evaluate and Select Media5.
Media planning - the process of evaluation and selecting the media mix that will
deliver a clear, consistent, compelling message to the intended audience
Media mix - the combination of media use and the frequency of advertising in each
medium
Media buy - the purchase of airtime or print pages
Generally largest expense in marketing budget
-
Mass media - channels, such as national newspapers, magazines, radio, and television,
that are ideal for reaching large numbers of anonymous audience members
Niche media - channels that are focused and generally used to reach narrow
segments, often with unique demographic characteristics or interests
*see exhibit 14.6
Advertising schedule - the timing and duration of advertising
Continuous: runs steadily throughout the year and therefore is suited to
products that are consumed continually at relatively steady rates and that
require a steady level of persuasive or reminder advertising
-
Flighting: implemented in spurts, with period of heavy advertising followed by
periods of no advertising
Good for products whose demand fluctuates
-
Pulsing: combines the continuous and flighting schedules by maintaining a base
level of advertising but increasing advertising intensity during certain periods
-
Create Communication6.
Often the style of the ad will dictate the medium to use
-
When using different mediums need to maintain consistency across
-
Must be careful to not let creativity overshadow clarity
-
Ad must be able to:
Attract attention
Provide a reason for viewing
Accomplish what it set out to do
-
Assess Impact Using Marketing Metrics7.
Pretesting - assessments performed before an ad campaign is implemented to ensure
that the various elements are working in an integrated fashion and doing what they
are intended to do
Tracking - includes monitoring key indicators, such as daily or weekly sales volume,
while the advertisement is running to shed light on any problems with the message or
the medium
Post-testing - the evaluation of an IMC campaign's impact after it has been
implemented
Sales impact can be difficult because we don't know that the results were
completely due to the campaign
-
Frequency - measure of how often the target audience is exposed to a communication
within a specifed period of time
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
-
Gross rating points (GRP) - measure used for various advertising
If comparing, must be the same medium
-
𝐺𝑅𝑃 = 𝑟𝑒𝑎𝑐ℎ*𝑥*𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
Click through tracking - measures how many times users click on banner advertising
on websites
Search engine marketing - uses tools such as Google AdWords to increase the visibility
of websites in search engine results
𝐶𝑙𝑖𝑐𝑘*𝑡ℎ𝑟𝑜𝑢𝑔ℎ*𝑟𝑎𝑡𝑒 =𝑛𝑢𝑚𝑏𝑒𝑟*𝑜𝑓*𝑐𝑙𝑖𝑐𝑘𝑠 ÷ 𝑛𝑢𝑚𝑏𝑒𝑟*𝑜𝑓*𝑖𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠
𝑅𝑂𝐼 =𝑠𝑎𝑙𝑒𝑠*𝑟𝑒𝑣𝑒𝑛𝑢𝑒* − 𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔*𝑐𝑜𝑠𝑡
𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔*𝑐𝑜𝑠𝑡 *
INTEGRATED MARKETING COMMUNICATION TOOLS
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
-
Extremely effective for creating awareness of a product or service and
generating interest
-
Entices customers into a conversation with marketers
-
Must break through clutter
-
Personal Selling
The two-way flow of communication between a buyer and a seller that is
designed to influence the buyer's purchase decision
-
Especially important in B2B
-
High cost
-
Most efficient for certain products
-
Sales Promotions
Special incentives or excitement building programs that encourage the purchase
of a product or service
-
Coupons, rebates, contests, etc.
-
Designed to build short-term sales
-
Direct Marketing
Marketing that communicates directly with target customers to generate a
response or transaction
-
Personalization of message
-
Digital approaches have really enriched it
-
Four defining characteristics:
Targeted
Motivates an action
Measurable
Provides info for developing marketing database
-
Benefits to buyers and sellers
-
Increasing ability to track customers over time
-
Direct mail generates $12 for every $1 invested
-
To be effective:
Good contact list
Good offer
Relevant to consumers
-
Catalogues important for stores with no brick and mortar locations
-
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 unfavourable stories, and maintaining positive relationships with the
media
-
Passive
-
Media attention can be crucial to a company's success
-
Free placement
-
Cause-related marketing - commercial activity in which businesses and charities form
a partnership to market an image, product, or service for their mutual benefit
Event sponsorship - a popular PR tool, occurs when corporations support various
activities usually in the culture, sports, or entertainment sectors
Digital Media
Tools ranging from simple website content to far more interactive features such
as corporate blogs, online hames, text messaging, social media and mobile apps
-
Use websites to build brand image ad educate customers
Place to leave online product reviews - boosts loyalty
-
Corporate blogs new form of marketing communications
-
YouTube, Facebook, and Twitter most used social media outlets
Engage customers in a dialogue
-
Chapter 14
Wednesday, March 21, 2018 10:16 AM
You're Reading a Preview

Unlock to view full version

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

INTEGRATED MARKETING COMMNICATIONS
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 digital
media) in combination to provide clarity, consistency and maximum
communicative impact
-
3 components:
Consumer/target market
Channels
Evaluation of results
-
COMMUNICATING WITH CONSUMERS
The Communication Process
Sender - the firm from which an IMC message originates, the sender must be clearly
identified to the intended audience
Deceptive advertising - a representation, omission, act, or practice in an
advertisement that is likely to mislead consumers acting reasonably under the
circumstances
Transmitter - an agent or intermediary with which the sender works to develop the
marketing communications
Ad agency, marketing department, etc.
-
Encoding - the process of converting the sender's ideas into a message, which could
be verbal, visual, or both
Communication channel - the medium that carries the message
Receiver - the person who reads, hears, or sees and processes the information
contained in the message or advertisements
Decoding - the process by which the receiver interprets the sender's message
Noise - any interference that stems from competing messages, a lack of clarity in the
message, or a flaw in the medium
Problem for all communication channels
-
Feedback loop - allows the receiver to communicate with the sender and thereby
informs the sender whether the message was received and decoded properly
How Consumers Perceive Communication
Each receiver decodes a message differently
Sender has little control over what meaning will be taken
-
Senders adjust messages according to the medium and receivers' traits
-
STEPS IN PLANNING AN IMC CAMPAIGN
*see exhibit 14.2
Identify Target Audience1.
Conduct research to identify and then use it to set tone and pick medium
-
Must remember the target audience might not be the current users of the
product
-
Come messages also may be directed at portions of audiences who are not part
of the target market but who participate in the purchase process
-
Set Objectives2.
Understand outcome they wish to achieve
-
Goals serve as a benchmark for success or failure
-
Can be short or long term
-
All marketing communications aim to achieve certain objectives: inform,
persuade, and remind customers
-
Setting objectives is a push strategy
-
Advertising to consumers is a pull strategy
-
Determine Budget3.
Should combine methods
-
Must consider role advertising plays in their attempt to meet objectives
-
Ad costs vary over product life cycle
-
Nature of market plays a role
-
Objective and task method - determines the cost required to undertake specific tasks
to accomplish communication objectives
Process entails setting objectives, choosing media, and determining costs
-
Limitations:
Difficult to identify the specific tasks that will achieve the objectives
-
Competitive parity method - the firm's share is the communication expenses is in line
with its market share
Often used by large companies
-
Limitations:
Prevents firm form exploiting unique opportunities or problems they
confront in a market
If all competitors use this method their market shares will stay the same
over time
-
Percentage of sales - based on a fixed percentage of forecasted sales
Limitations:
Assumes the percentage used in the past or by competitors is still
appropriate for the firm
Does not take into account new plans
-
Affordable budgeting - based on what is left over after other operating costs have
been covered
Often ends with underspending
-
Usually by small companies
-
Limitations:
Assumes communications expenses do not stimulate sales and profit
-
Convey Message
4.
Message provides the target audience with reasons to respond in the desired
way
-
Unique selling proposition (USP) - a strategy of differentiating a product by
communicating its unique attributes
Often becomes the common theme or slogan in the entire advertising campaign
-
Should be unique to the brand, meaningful to the consumer, and sustainable
over time
-
Early theories of rhetoric say 3 main types of appeal
Logos/logical
Ethos/ethical
Pathos/emotional
-
Rational appeal - helps consumers make purchase decisions by offering factual
information and strong arguments built around relevant issues that encourage
consumers to evaluate the brand favorably on the basis of the key benefits it provides
Emotional appeal - aims to satisfy consumers' emotional desires rather than utilitarian
needs
Key is to create a bond between consumer and brand
-
Evaluate and Select Media5.
Media planning - the process of evaluation and selecting the media mix that will
deliver a clear, consistent, compelling message to the intended audience
Media mix - the combination of media use and the frequency of advertising in each
medium
Media buy - the purchase of airtime or print pages
Generally largest expense in marketing budget
-
Mass media - channels, such as national newspapers, magazines, radio, and television,
that are ideal for reaching large numbers of anonymous audience members
Niche media - channels that are focused and generally used to reach narrow
segments, often with unique demographic characteristics or interests
*see exhibit 14.6
Advertising schedule - the timing and duration of advertising
Continuous: runs steadily throughout the year and therefore is suited to
products that are consumed continually at relatively steady rates and that
require a steady level of persuasive or reminder advertising
-
Flighting: implemented in spurts, with period of heavy advertising followed by
periods of no advertising
Good for products whose demand fluctuates
-
Pulsing: combines the continuous and flighting schedules by maintaining a base
level of advertising but increasing advertising intensity during certain periods
-
Create Communication6.
Often the style of the ad will dictate the medium to use
-
When using different mediums need to maintain consistency across
-
Must be careful to not let creativity overshadow clarity
-
Ad must be able to:
Attract attention
Provide a reason for viewing
Accomplish what it set out to do
-
Assess Impact Using Marketing Metrics7.
Pretesting - assessments performed before an ad campaign is implemented to ensure
that the various elements are working in an integrated fashion and doing what they
are intended to do
Tracking - includes monitoring key indicators, such as daily or weekly sales volume,
while the advertisement is running to shed light on any problems with the message or
the medium
Post-testing - the evaluation of an IMC campaign's impact after it has been
implemented
Sales impact can be difficult because we don't know that the results were
completely due to the campaign
-
Frequency - measure of how often the target audience is exposed to a communication
within a specifed period of time
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
-
Gross rating points (GRP) - measure used for various advertising
If comparing, must be the same medium
-
𝐺𝑅𝑃 = 𝑟𝑒𝑎𝑐ℎ*𝑥*𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦
Click through tracking - measures how many times users click on banner advertising
on websites
Search engine marketing - uses tools such as Google AdWords to increase the visibility
of websites in search engine results
𝐶𝑙𝑖𝑐𝑘*𝑡ℎ𝑟𝑜𝑢𝑔ℎ*𝑟𝑎𝑡𝑒 =𝑛𝑢𝑚𝑏𝑒𝑟*𝑜𝑓*𝑐𝑙𝑖𝑐𝑘𝑠 ÷ 𝑛𝑢𝑚𝑏𝑒𝑟*𝑜𝑓*𝑖𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠
𝑅𝑂𝐼 =𝑠𝑎𝑙𝑒𝑠*𝑟𝑒𝑣𝑒𝑛𝑢𝑒* − 𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔*𝑐𝑜𝑠𝑡
𝑎𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔*𝑐𝑜𝑠𝑡 *
INTEGRATED MARKETING COMMUNICATION TOOLS
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
-
Extremely effective for creating awareness of a product or service and
generating interest
-
Entices customers into a conversation with marketers
-
Must break through clutter
-
Personal Selling
The two-way flow of communication between a buyer and a seller that is
designed to influence the buyer's purchase decision
-
Especially important in B2B
-
High cost
-
Most efficient for certain products
-
Sales Promotions
Special incentives or excitement building programs that encourage the purchase
of a product or service
-
Coupons, rebates, contests, etc.
-
Designed to build short-term sales
-
Direct Marketing
Marketing that communicates directly with target customers to generate a
response or transaction
-
Personalization of message
-
Digital approaches have really enriched it
-
Four defining characteristics:
Targeted
Motivates an action
Measurable
Provides info for developing marketing database
-
Benefits to buyers and sellers
-
Increasing ability to track customers over time
-
Direct mail generates $12 for every $1 invested
-
To be effective:
Good contact list
Good offer
Relevant to consumers
-
Catalogues important for stores with no brick and mortar locations
-
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 unfavourable stories, and maintaining positive relationships with the
media
-
Passive
-
Media attention can be crucial to a company's success
-
Free placement
-
Cause-related marketing - commercial activity in which businesses and charities form
a partnership to market an image, product, or service for their mutual benefit
Event sponsorship - a popular PR tool, occurs when corporations support various
activities usually in the culture, sports, or entertainment sectors
Digital Media
Tools ranging from simple website content to far more interactive features such
as corporate blogs, online hames, text messaging, social media and mobile apps
-
Use websites to build brand image ad educate customers
Place to leave online product reviews - boosts loyalty
-
Corporate blogs new form of marketing communications
-
YouTube, Facebook, and Twitter most used social media outlets
Engage customers in a dialogue
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Chapter 14
Wednesday, March 21, 2018 10:16 AM
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