978-1259709074 Chapter 18 Part 1

Chapter 18 – Integrated Marketing Communications Marketing 6th

McGraw-Hill Education.

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Chapter 18

Integrated Marketing Communications

Tools for Instructors

• Brief Chapter Outline

• Learning Objectives

• Extended Chapter Outline with Teaching Tips

• Answers to End of Chapter Learning Aids

• Chapter Case Study

• Additional Teaching Tips

• Connect Activities

Brief Chapter Outline

Communicating with Consumers

Elements of an Integrated Marketing Communications Strategy

Planning for and Measuring IMC Success

Chapter Case Study: Taking IMC to The Max: Pepsi Max and Modern Communications

Learning Objectives

LO18-1 Identify the components of the communication process.

The communication process begins with a sender, which provides the message to a transmitter, who

develops or encodes the message for transmission through a communication channel. When a recipient

LO18-2 Explain the four steps in the AIDA model.

Awareness is the first “thinking” step, during which the consumer simply recognizes a brand or product.

During the interest step, the consumer starts to “feel” and become intrigued enough to explore the

LO18-3 Describe the various integrative communication channels.

Advertising has long been the primary channel for marketing communication and is still a constant

presence, but other media channels have become more and more prominent. For example, direct

marketing media options, particularly online options, have increased in recent years. Outbound direct

such as YouTube, Facebook, and Twitter.

Chapter 18 – Integrated Marketing Communications Marketing 6th

McGraw-Hill Education.

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verbal, visual, or both. The communication channel is the medium— print, broadcast, the Internet,

and so forth—that carries the message. The receiver is the person who reads, hears, or sees and

processes the information contained in the message and/or advertisement. The sender, of

course, hopes that the person receiving it will be the one for whom it was originally intended.

Noise is any interference that stems from competing messages, a lack of clarity in the message,

or a flaw in the medium, and it poses a problem for all communication channels. The feedback

loop allows the receiver to communicate with the sender and thereby informs the sender whether

the message was received and decoded properly. Feedback can take many forms: a customer’s

purchase of the item, a complaint, or compliment, the redemption of a coupon or rebate, a tweet

about the product on Twitter, and so forth.

2. What is the AIDA model?

Answer: The AIDA model suggests that Awareness leads to Interest, which lead to Desire, which

leads to Action. At each stage, the consumer makes judgments about whether to take the next

II. Channels Used in an Integrated Marketing Communications Strategy

A. Advertising

B. Public Relations

C. Sales Promotions

D. Personal Selling

E. Direct Marketing

F. Online Marketing

1. Websites

2. Blogs

3. Social Media

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

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

Answer: The different elements of an IMC program are advertising, public relations, sales

III. Planning for and Measuring IMC Success

A. Goals

B. Setting and Allocating the IMC Budget

C. Measuring Success Using Marketing Metrics

1. Traditional Media

2. Web-Based Media

Chapter 18 – Integrated Marketing Communications Marketing 6th

McGraw-Hill Education.

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D. Planning, Implementing, and Evaluating IMC Programs—an Illustration of Google Advertising

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. Why is the objective-and-task method of setting an IMC budget better than the rule–of–thumb

methods?

Answer: The objective-and-task method determines the budget required to undertake specific

2. How do firms use GRP to evaluate the effectiveness of traditional media?

Answer: When measuring IMC success, the firm should examine when and how often consumers

3. How would a firm evaluate the effectiveness of its Google advertising?

Answer: Using Google AdWords, a firm can assess the effectiveness of its advertising

keywords that potential customers used during their Internet searches.

Answers to End of Chapter Learning Aids

Marketing Digitally

1 Visit http://www.thephelpsgroup.com and click on the “Work” tab at the top. Compare the IMC

for the different companies. What were the goals of the integrated marketing campaign?

Which IMC channels were used in that particular campaign? How do those channels

contribute to the success of the IMC campaign in achieving its stated goals?

Students’ answers will vary depending on the companies they examine. The Phelps Group helps

companies develop IMC programs to “reach customers and prospects wherever they choose to

Marketing Applications

1 Assume that the contemporary apparel company rag & bone has embarked on a new IMC

strategy. It has chosen to advertise on TV during the NBC Nightly News and in print in Time

magazine. The message is designed to announce new styles for the season and uses a 17–

year-old woman as the model. Evaluate this strategy and, if appropriate, propose an

alternative.

To succeed, each element of an IMC strategy must have a well-defined purpose and support and extend

the message delivered by all the other elements. This question challenges students to determine which

elements of rag & bone’s IMC strategy might miss the mark.

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McGraw-Hill Education.

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2 Using the steps in the AIDA model, explain why a potential consumer in question 1 who views

rag & bone’s advertising may not be ready to go out and purchase a new pair of jeans.

The AIDA model includes four components: Awareness, Interest, Desire, and Action. Customers who

watch NBC Nightly News or read Time magazine may not have heard of heard of rag & bone, so the

3 Suppose a snack company introduces a new product called SumSeeds—sunflower seeds with

energy boosters like caffeine, taurine, lysine, and ginseng. How would you expect this

product’s IMC program to differ from that for regular sunflower seeds sold as snacks?

The IMC program for traditional sunflower seeds sold as snacks probably focuses on the convenience

factors (portable, small, no preparation) and health benefits of snacking on sunflower seeds. SumSeeds’

IMC campaign will likely tout these same benefits but also play up the energy-enhancing components.

4 Procter & Gamble sends new parents home from the hospital with a sample of Pampers

diapers, and it has started sending Fusion ProGlide razors to each young man in America on

his 18th birthday. What are the likely goals of such marketing tactics? How could Procter &

Gamble measure how well it has achieved these goals with its free giveaways?

Procter & Gamble is giving away products with the intention of having customers experience the

products. The goal of this tactic is to have customers use the product and then begin purchasing it on a

5 Suppose you saw your instructor for this course being interviewed on TV about the impact of

a big storm on an upcoming holiday’s sales. Is this interview part of your college’s IMC

program? If so, do you believe it benefits the college? How?

The interview likely is part of a larger IMC strategy to get the college more exposure in the marketplace by

arranging for the school’s faculty to act as experts on television, online, or in print media. Each time a

6 A hotel runs several advertisements in the student newspaper of a local university, promoting

its Sunday brunch menu. The ads increase the number of people visiting its restaurant, but

only slightly. Is the campaign necessarily a failure? What other goals might the hotel have for

this advertising campaign?

Students’ responses could focus on various factors, including increased sales of the Sunday brunch or

increased awareness among students that may enhance future business.

The short-term objective of the ad is to promote the new Sunday brunch to customers and have current

customers go to the Sunday brunch more often. The increase in sales, while slight, is still a sign that the

Chapter 18 – Integrated Marketing Communications Marketing 6th

McGraw-Hill Education.

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7 As an intern for Pepsi, you have been asked to help with developing an IMC budget. The

objective of the IMC strategy is to raise Diet Pepsi’s market share by 2 percent in the United

States in the next 18 months. Your manager explains, “It’s real simple; just increase the

budget 2 percent over last year’s.” Evaluate your manager’s strategy.

The manager’s strategy is not very strategic. Increasing the budget by 2 percent does not ensure that the

market share will increase by 2 percent as well. Diet Pepsi could probably move the needle on market

involve simply spending more money.

8 You were sitting in the school cafeteria yesterday, and a young man from your marketing

class, whom you don’t know well, asked if he could sit down. He then started telling you about

this very cool new Google app, “WordLens,” that allows you to translate signs into different

languages in real time using the camera on your smartphone. Although you recognize the

merit in the product, you later find out that he works for Google. Do you believe his action

constitutes an ethical IMC strategy? How will it affect your attitude toward Google and the

potential that you will purchase the product?

This scenario forces students to question to what degree the classmate’s behavior might violate their own

ethical standards. Using the ethical decision-making framework, students can determine an appropriate

course of action.

On the one hand, the student could just be excited about the product and want to share it with his

negatively impact how students feel about the brand.

Quiz Yourself

1 Home Depot hired an advertising agency to develop television ads for its grand opening in southern

Maine. The advertising agency represents which of the following components of the communication

process?

a. sender

b. transmitter

c. communication channel

d. receiver

e. feedback

2 Which of the following formulas is accurate for calculating gross rating points (GRP)?

a. Impressions multiplied by frequency

b. Reach multiplied by impressions

c. Reach multiplied by frequency

d. Reach divided by impressions