Chapter 12
Chapter 12
Chapter 12:
Integrated Marketing Communications
and Media Choices
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
After you have finished this chapter, you should be able to:
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Marketing Framework
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12-1
What Media Decisions Are Made
in Advertising Promotional Campaigns?
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Decisions
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How Much to Spend
(1 of 3)
• Percentage of sales method
• Percentage is determined by prior years’ sales or industry norms.
• Percentage is then adjusted depending upon this year’s goals.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How Much to Spend
(2 of 3)
• Competitive parity
method
• Determine what
competitors are spending
• In some industries, ad
spending is proportional to
income
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How Much to Spend
(3 of 3)
• Strategic advertising goal method
• Set a strategic goal (awareness, attitude change, etc.).
• Then work backward to determine amount needed to reach goal.
• View advertising as an investment that will return sales and profits.
• Need to understand reach and frequency
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reach, Frequency, and GRPs
(1 of 2)
• Reach
• The share of your target that has seen your ad at least once
• Frequency
• The average number of times target saw the ad (within set duration)
• GRPs: Reach times Frequency
• Ad reached 25% of target an average of 3 times—the ad delivered 75
gross rating points.
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reach, Frequency, and GRPs
(2 of 2)
• For reach, the goal is to expose as many of the target
customers as possible.
• Find the most cost-efficient media
Frequency depends on the goal.
• Awareness and memory—a few exposures
• Persuasion may take more
• Readily understood ads wear out quickly
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When to Schedule
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Types of Schedules
• Continuous
• Regular ad exposure; not necessarily predictable
• Need to avoid overexposure and overspending
• Occasional
• Called flighting or pulsing; pops up from time to time
• Seasonal
• Advertising pre-season for a given product
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 1
• When would you recommend advertising
1. Your school?
2. Oil changes?
Dawn Iacobucci, Marketing Management, 6th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Discussion Activity 1 Debrief
• When would you recommend advertising
1. Your school?
• Answer: A seasonal approach makes sense for a school: fall, for seniors looking at
applying to colleges; prior to semester changes; etc.
2. Oil changes?
• Answer: Approach would depend on goals: continuous could make sense in large
urban areas, but may result in overspending; occasional makes sense because
people may need to be reminded; seasonal could remind people to get oil changes
before bad weather, before summer vacations, etc.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12-2
Integrated Marketing Communications
Across Media
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Which Media
(1 of 2)
(slide 1 of 7)
• The choice of media outlet is difficult because …
• There are many media outlets.
• e.g., More television stations, more radio stations via XM, and the Internet
• Audiences are fragmented across the many media and use technology
to zip past ads.
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Which Media
(2 of 2)
(slide 1 of 7)
• Integrated marketing communication
• When advertising across media
• Consider the company’s overarching strategy.
• Ensure a consistent message across all communications.
• e.g., trade advertising, personal selling, direct marketing, and product placements
• Ensure consistent message across other marketing mix elements.
• e.g., product design, pricing, and channels
• Play to each media’s strength.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which Media
Relative (slide
Strengths
3 of 7) of Media
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which Media
Media Comparisons
(slide 4 of 7)
(1 of 2)
• TV ads
• Most expensive; yield the largest reach; yield a broad not targeted reach;
cable allows some targeting; frequency is expensive
• Magazines
• Have broad appeal or can be targeted
• Require long lead times for production; have good reproduction quality
• Nonintrusive; viewers can ignore ads
• Radio and newspapers
• Purchased nationally, but can be purchased for local markets
• Less expensive than TV, but also deliver smaller audiences
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Media Comparisons
(1 of 2)
• Billboards
• Relatively inexpensive
• Good for local coverage
• Online and direct mail
• Can be customized
• Online ads inexpensive and can be targeted; Internet penetration isn’t
100%
• Direct mail relatively inexpensive and targeted; not efficient (junk mail)
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Relative Strengths on Ad Content
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Discussion Activity 2
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Discussion Activity 2 Debrief
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Beyond Advertising
• Personal selling
• Is an essential communication vehicle
• Accounts for approximately 14 million jobs
• About 10% of workforce
• Is especially important for expensive, complicated products
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Designing a Sales Force
• Questions to consider…
1. How many salespeople do I need?
• More with an aggressive launch or to protect territories
2. Where do I deploy them?
3. How do I compensate them?
• Salary and commission
• Proportion determined by tradition and competition
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Advertising vs. Personal Selling Choices
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Marketing Communications Budget
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Pull vs. Push Strategies
• Pull strategies
• Direct promotional efforts to consumers
• Rely on advertising and sales promotions
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
(1 of 3)
• Purpose
• Provide information and build brand attributes
• Reach out to the company’s constituency
• Customers, suppliers, stockholders, government, employees, general community
• Convey a positive image and educate a constituency about the company
• Generate goodwill on behalf of the company
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
Public Relations
(slide 2 3)
(2 of of 3)
• PR tasks
• Issue press kits
• Press releases for newsworthy occurrences (e.g., product launch), company
information, bios, and history
• Maintain company information on website
• Arrange events (e.g., speaking engagements), sponsorships, and
community philanthropy
• Counter criticisms (recovery mode)
• Enhance and strengthen brand and corporate image (proactive mode)
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public Relations
Public Relations
(slide 3 3)
(3 of of 3)
• Publicity
• A communication tool the company does not pay for
• PR can issue press releases, but there is no guarantee that they will
be picked up
• Can be negative or positive because companies cannot directly
control it
• Has the appearance of objectivity
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Group Activity
• Form groups of 3-6 participants.
• Think of and describe an example of negative publicity that you
think a company handled well.
• Think of and describe an example of positive publicity and the
potential benefits of this publicity.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Group Activity Debrief
• Think of and describe an example of negative publicity that you
think the company handled well.
• Answer: Examples will vary, but may include Coke Classic, Cincinnati
Zoo gorilla, Facebook. Ways to handle bad publicity include:
• Act quickly and consistently with authenticity
• Monitor message tone and refrain from placing blame
• Commit to positive follow-up
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Event Sponsorship
• Occurs in sports and cultural or artistic endeavors
• Brands draw from event’s positive valence and energy
• e.g., sponsoring NASCAR racing
• Not clear if it is cost-effective
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sales Promotion
• Activate purchase interest and influence short-term sales
• Can entice customers to switch brands
• Forms
• Coupons, rebates, promotional pricing, trade-ins, loyalty programs, trials,
contests, etc.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
IMC Choices Depend on Goals
• When deciding which promotional method to choose,
consider…
• The target audience
• The company’s goals (e.g., awareness, information, preferences,
purchase trial, and repeat purchase)
• Additional issues
• Should we schedule continuously, occasionally, or seasonally?
• What is the consumer’s purchase cycle?
• What is the level of saturation desired?
• What life cycle stage is the product in?
• What can we afford?
• What is best for our target?
• What do we want the target to know?
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Example IMC Schedule
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12-3
How Is the Effectiveness
of Advertising Media Measured?
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assessing Media Effectiveness
• If goal is awareness, reach matters.
• Measure viewership, readership, circulation numbers, traffic indices, etc.
• If goal is attitudinal, use surveys.
• It can be difficult to assess ROMI because customers may not
remember where they saw the ad.
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scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assessing
Media Media Effectiveness
Effectiveness Considerations
(slide 2 of 3)
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Knowledge Check Activity
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