Marketing (4th Edition) by Grewal & Levy, McGraw-Hill - Irwin, 2014.

1. Principles of Marketing
MKT3010
Chapter 18
Integrated Marketing
Communications
Patricia Knowles, Ph.D.
Associate Professor
Clemson University
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2. 2
Principles of Marketing
MKT3010
2
Integrated Marketing Communications
These are the learning objectives guiding the chapter and will be explored in more detail in the
following slides.
Identify the components of the communication
process.
Explain the four steps in the AIDA model.
Describe the various integrative communication
channels.
Explain the various ways used to allocate the
integrated marketing communications (IMC) budget.
Identify marketing metrics used to measure IMC
success.
LO1
LO2
LO3
LO4
LO5

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Coca Cola
A great example of integrated marketing communication appeared during Super Bowl XLVI,
when the marketing giant Coca-Cola introduced its integrated marketing event through televised
advertising that also drove consumers to its social media marketing channels.
Principles of Marketing
MKT3010
©2006-2012 The Coca-Cola Company.

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Integrated Marketing Communications
Principles of Marketing
MKT3010
The goal of IMC is to ensure all the various marketing mix elements work together to deliver a
consistent message. Therefore, IMC takes the best of each communications medium and
combines it to achieve the most effective marketing communications campaign possible.
Results

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Communicating with Consumers: The
Communication Process
Principles of Marketing
MKT3010
New media options fragment communications and make it more difficult and complex to reach
the desired target audience. What media do you use on a daily basis? Which are new and/or
alternative media (compared to television, radio, public relations, etc.). Marketers must
understand how the communication process works and identify possible communication
breakdowns.
Noise from the environment
Feedback
Receiver
(Consumer)
decodes message
Sender
(Firm)
Transmitter
encodes
message
Communications
channel
(Media)

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How Consumers Perceive Communication
Principles of Marketing
MKT3010
Marketers must remember that they do not have control over the decoding process, because
each receiver decodes the message in his or her own way. Identify advertisements or brand
images that often result in different reactions from different consumers (e.g., ads for beer,
cigarettes, and personal care products). Why do these ads generate differing responses? For
example, a cigarette ad for smokers may arouse smokers and induce the desire for a cigarette.
For former smokers it may induce a sense of loss. For non-smokers it may not illicit any
emotion.
Receivers decode messages
differently
Senders adjust messages according
to the medium and receivers’ traits
©Stockdisc/Getty Images

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Decoding the Message
Principles of Marketing
MKT3010
How does this ad handle the challenges of decoding the fact that this is a breakfast food and not
a lunch/dinner which is what SmartOnes is known for.
How does the advertiser
help the receiver decode
this as a breakfast food
Courtesy HJ Heinz Company

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The AIDA Model
Principles of Marketing
MKT3010
The AIDA model provides a basis for understanding how marketing communications works.
Awareness
Interest
Desire
Action
Think
Feel
Do

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MKT3010
AIDA Model
Dogs and babies are very good at attracting awareness or advertisements.
Where is this ad in the
AIDA model?
©2008 KCWW Reprinted with Permission

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Awareness
The now-famous Joe Camel study, which found a majority of three-year-old children were aware
of Joe Camel, the spokes character for Camel cigarettes. The study’s authors suggested
awareness would lead to smoking. But, does awareness always translate to action? No! How
does the ad in the slide create awareness for Peapod?
CourtesyPeapod
• Senders first must gain the
attention
• A multichannel approach increases
the likelihood the message will be
received

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Interest
Principles of Marketing
MKT3010
What can IMC prompt consumers to do – other than to purchase the product? Behavioral
changes (don’t drink and drive), attitude changes (that product is high quality), or physical
actions (pick up the phone, log on to the Website, volunteer).
©2010 Dell Inc All Rights Reserved
©2010 Dell Inc All Rights Reserved
• After awareness comes
persuasion
• The customer must want to
further investigate the
product/service

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Desire
Principles of Marketing
MKT3010
After the firm has piqued the interest of its target market, the goal of subsequent IMC messages
should move the consumer from “I like it” to “I want it.”
I like it I want it
blue jean images/Getty Images

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Action
Think about products that you had IMC exposure to, but did not purchase immediately. Which
IMC exposure moved you to purchase?
Purchase is just one type of
action… what other actions can
IMC ask consumers to take?
©BananaStock/PunchStock

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The Lagged Effect
Principles of Marketing
MKT3010
Sometimes consumers don’t act immediately after receiving a marketing communication
because of the lagged effect —a delayed response to a marketing communication campaign.
©image100/PunchStock
• 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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Check Yourself
1. What are the different steps in the communication
process?
2. What is the AIDA model?

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Elements of an Integrated Marketing
Communication Strategy
Principles of Marketing
MKT3010
To get the right message to the right audience through the right medium, an IMC planner must
understand how each medium communicates and how to combine it with other media to
generate the most impact.
• Personal selling
• Sales promotions
(e.g., contests)
• Direct marketing
(e.g., telemarketing)
• Advertising
• Sales promotions
(e.g., coupons)
• Public relations
• Direct marketing
(e.g., catalogs)
• Direct marketing
(e.g., mobile marketing)
• Online marketing
(e.g., blogs, social media)
• Direct marketing
(e.g., e-mail marketing)
Interactive
Passive
Online
Offline

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MKT3010
Advertising
Chapter Nineteen covers advertising, the most visible element of IMC, in depth. Think about
how an advertisement has made you aware of or interested in a specific product.
“Advertainment” is advertising that is focused on entertaining the end user. One of the earliest
and best examples are Reebok’s Terry Tate ads. This YouTube link (always check before class)
will show the original ad which was aired on the 2003 Superbowl.
CourtesyNationalFluidMilkProcessorPromotionBoard;
Agency:LoweWorldwide,Inc.
• Most visible element of IMC
• Extremely effective at creating awareness and
generating interest

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Public Relations (PR)
Principles of Marketing
MKT3010
Do you view PR as credible, because they are not “advertisements,” or not credible, because
they come from the company?
Courtesy Citirx Online, LLC
• “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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MKT3010
Sales Promotions
Sales promotions can be used in a wide variety of situations to stimulate demand among either
end users or other channel members. There are many websites that distribute coupons. This
web link is for retailmenot.com, one of the more popular coupon sharing site.
Courtesy Dole Food Company, Inc.
• Can be aimed at both end user consumers or
channel members
• Used in conjunction with other forms of IMC
• Can be used for both short-term and long-
term objectives

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Principles of Marketing
MKT3010
Personal Selling
Think about what kind of purchases personal selling most appropriate is most appropriate for.
This form of IMC works best when the purchase is complicated, because the salesperson can
customize the communication to meet the needs of that specific buyer and purchase situation,
which other IMC elements cannot.
Royalty-Free/CORBIS
• 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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Direct Marketing
As advertising has declined as a percentage of the total communications budget, direct
marketing has increased. Direct marketing allows marketers to personalize their message. This
enables marketers to communicate with an audience that is more likely to respond to their
efforts. The text has some excellent examples of Meijer, Toys “R” Us and Best Buy using m-
commerce.
CourtesyGlobalSpec,Inc
• Growing element of IMC
• Includes e-mail and m-commerce
• Good for multicultural groups
• Database technology improves

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MKT3010
Adidas
The sponsorship of athletes can benefit and harm firms. With a popular athlete, firms stand to
gain a lot of sales, but when a star athlete becomes a liability, firms quickly distance themselves
and focus on another branding element.
Anthony Saint James/Getty Images

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MKT3010
Online Marketing
Firms that use text messaging to disseminate marketing communications may face a backlash
against the firm and the wireless provider if consumer phones are constantly flooded with such
messages. How would you like to receive advertising text messages?
Websites
Blogs
Social Media
McGraw-HillCompanies,Inc.MarkerDierker,photographer.

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MKT3010
Websites
Why do you love about the sites you visit all the time? Easy to use (good navigation)? Good
sales and specials (product decisions)? Fun (entertainment)?
What websites do you
visit all the time?
Why?

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MKT3010
Blogs
Southwest can learn what customers have to say… What they are interested in learning about
products, company culture, and new product launches. Many firms are still experimenting with
blogs; in 2006 Wal-Mart got in trouble for failing to disclose a blog written by two cross-country
travelers was sponsored by the retailer.
What can
Southwest learn
from their blog?
Courtesy Southwest Airlines

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MKT3010
Social Media
Social media is media content distributed through social interactions. Three major online
facilitators of social media are YouTube, Facebook, and Twitter.
Advantages
to firms?
Challenges?

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MKT3010
Check Yourself
1. What are the different elements of an IMC
program?

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MKT3010
Planning for and Measuring IMC Success
How do firms determine whether their IMC strategy has worked? Determining whether your IMC
“worked” or not depends on the IMC objective. If the objective is to create awareness for a new
product, then the firm would measure increases in customer knowledge and awareness. If it
were to generate sales, like an ad in the paper, then sales would be the objective measure.
Understand the outcome they hope to
achieve
Short-term or long-term
Should be explicitly defined and measured
Lawrence Lawry/Getty Images

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MKT3010
Setting and Allocating the IMC Budget
Many IMC elements require significant expenditures, and firms are reluctant to invest in
marketing communications without some guarantee of return.
Objective-and-Task Method
Rule-of-Thumb Methods
©BrandXPictures/PunchStock

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MKT3010
Rule of Thumb Methods

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MKT3010
Measuring Success Using Marketing Metrics
Every communication may be measured in terms of reach and frequency. Remind students that
because of the lagged effect, marketers must not only expose the target audience to the
message but also ensure that it has multiple opportunities to view it. This combined measure is
GRP.
Frequency
Reach
Gross Rating Points
Web Tracking
Digital Vision/Getty Images

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MKT3010
Search Engine Marketing
Think about what Transit would want to measure if they were buying Google adwords for
“sneaker store” and “NYC sneakers.”
Clicks
Impressions
Click Through Rate
Return on Investment (ROI)
Transit, an upscale sneaker store in New York City modeled after
vintage New York City subway trains.

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MKT3010
Transit: Click Through Results
He can see his total cost in column 3 and the sales from his adwords in column 4. The ROI in
column 6 is higher for “sneaker store” due to its lower cost even though the sales were a bit
lower.
What does the data tell you?

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Transit: IMC Goals and Results

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Check Yourself
1. Why is the objective-and-task method of setting
an IMC budget better than the rule-of-thumb
methods?
2. How do firms use GRP to evaluate the
effectiveness of traditional media?
3. How would a firm evaluate the effectiveness of
its Google advertising?

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Glossary
Principles of Marketing
MKT3010
Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures.
The click through rate (CTR) is the number of clicks divided by the number of impressions.
The frequency of exposure is how often the audience is exposed to a communication within a
specified period of time.
Gross rating points (GRP) represents reach multiplied by frequency.
The number of impressions is the number of times an ad appears in front of a user.
The objective-and-task method determines the budget required to undertake specific tasks to
accomplish communication objectives.
Online couponing is a promotional Web technique in which consumers print a coupon directly
from a site and then redeem the coupon in a store.
Online referring is when consumers fill out an interest or order form and are referred to an
offline dealer or firm that offers the product or service of interest.

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Glossary
Principles of Marketing
MKT3010
Reach is the percentage of the target population exposed to a specific marketing
communication at least once.
The return on investment (ROI) is the difference of the sales revenue and the advertising cost
divided by the advertising cost.
Rule-of-thumb methods use prior sales and communication activities to determine the present
communication budget.
Social media is media content distributed through social interactions.
Web tracking software indicates how much time viewers spend on particular Web pages and
the number of pages they view.