CHAPTER 13

Integrated marketing
communications

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Integrated marketing
communication
LO Identify the components of the
13.1
communication process.
LO
13.2
Explain the four steps in the AIDA model.
LO Describe the various integrative
13.3
communication channels.
LO
13.4 Describe the steps in designing and
executing an advertising campaign.
LO
13.5 Identify three objectives of advertising.
continued
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Grewal, Marketing, 3e 13-2
 Integrated marketing
communications (cont.)
LO
13.6
Describe the different ways in which
advertisers appeal to consumers.
LO
13.7
Identify the various types of media.
LO
13.8
Describe the elements of a public relations
toolkit.
LO Identify the various types of sales
13.9
promotions.

continued
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 Integrated marketing
communications (cont.)

LO Explain the methods used to allocate

13.10
the integrated marketing
communications (IMC) budget.
LO
13.11
Identify marketing metrics used to
measure IMC success.

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Grewal, Marketing, 3e 13-4
Concept map

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Grewal, Marketing, 3e 13-5
Integrated marketing
communications
• IMC represents the P that stands for
promotion, encompassing a variety of
communication disciplines:
– advertising
– personal selling
– sales promotion
– public relations
– direct marketing
– online/social media.

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Grewal, Marketing, 3e 13-6
Communicating with
consumers

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Receivers decode
messages differently

Source: Medium.com
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Grewal, Marketing, 3e 13-8
Receivers decode
messages differently

Learn from Dove’s diversity campaign in 2017

https://www.youtube.com/watch?v=GJssvw1LQbI&ab_channel=Celebr
ityCentral
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Grewal, Marketing, 3e 13-9
Senders adjust messages
according to the medium
and receiver traits

Old Spice: repositioning an ‘old’ brand and use

humour in its ads to cater younger consumers
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Grewal, Marketing, 3e 13-10
 The AIDA model

Consumer’s
Decision Process
Need
recognition Awareness
Information
search Interest

Source: HubSpot Blog

Alternative Desire
evaluation

Purchase Action

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Grewal, Marketing, 3e 13-11
Awareness
• First, senders must gain consumers’
attention.
• A multichannel approach increases
the likelihood the message will be
received.

Need
recognition

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Grewal, Marketing, 3e 13-12
Interest
• After awareness comes
persuasion.
• The customer must be persuaded
to want to investigate the
product/service further.

Information
search

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Grewal, Marketing, 3e 13-13
Desire
• After the firm has piqued the interest
of its target market, the goal of
subsequent IMC messages should
be to move the consumer from ‘I like
it’ to ‘I want it’.

Alternative
evaluation

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Grewal, Marketing, 3e 13-14
Action
• The ultimate goal of marketing
communication is to drive the
receiver to action.
• Purchasing is just one type of
action…

Purchase

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Grewal, Marketing, 3e 13-15
The lagged effect
• Advertising does not always have
an immediate impact.

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Grewal, Marketing, 3e 13-16
 CHECK YOURSELF

What are the different steps in

the communication process?
What is the AIDA model?

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Grewal, Marketing, 3e 13-17
Elements of an integrated
marketing communication
strategy

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Grewal, Marketing, 3e 13-18
Advertising
• Most visible element of IMC
• Extremely effective at creating
awareness and generating interest
• A paid form of communication conveyed
via a medium (e.g. radio, TV) delivered
through communication channel and
designed to persuade
• Encourages the consumer to take action

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Grewal, Marketing, 3e 13-19
Steps in planning and
executing an ad campaign

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Grewal, Marketing, 3e 13-20
Identify Target Audience

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Grewal, Marketing, 3e 13-21
Step 1: identify target audience
• The success of a campaign depends
on how well the advertiser can identify
their target audience.
• Firms conduct research to:
– identify the target audience
– set the tone of the advertisement
– select which media to use.

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Grewal, Marketing, 3e 13-22
 Advertising Objectives

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Grewal, Marketing, 3e 13-23
Step 2: advertising objectives

Inform Persuade Remind

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Focus of advertisements
• Institutional advertisements
• Product-focused advertisements
• Public service advertisements

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What is the objective and
the focus of the ad?

Source: Cancer Council WA

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Grewal, Marketing, 3e 13-26
AIDA and Ad Objectives

Objectives

Inform

Persuade

Remind

Objectives Inform Persuade Remind

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Grewal, Marketing, 3e 13-27
 Determine the
advertising budget

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Grewal, Marketing, 3e 13-28
Step 3: determine the
advertising budget
• Considerations:
– the role that advertising plays in
meeting overall promotional
objectives
– expenditures vary over the course of
the product life cycle
– the nature of the market and the
product influence the size of the
budget
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Grewal, Marketing, 3e 13-29
 Convey the message

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Step 4: convey the message
• Unique selling proposition (USP)
must really be unique and
meaningful to the consumer
– Holden: Let’s go there
– Coke: Taste the feeling
– Nike: Just do it
– L’Oreal: Because you’re worth it
– BMW: Designed for driving pleasure

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Grewal, Marketing, 3e 13-31
The appeal

Informational appeals
vs.
Emotional appeals

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Grewal, Marketing, 3e 13-32
The appeal

https://www.youtube.com/watch?v=zBHSz8ted_c&ab_channel=ColgateAustralia%26NewZealand

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Grewal, Marketing, 3e 13-33
The appeal

https://www.youtube.com/watch?v=3YBhftZSlbM&ab_channel=onlineAuto

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Informational versus
emotional appeals

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Evaluate & select media

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Grewal, Marketing, 3e 13-36
Step 5: evaluate and
select media
• Media planning is the process of
evaluating and selecting the media mix that
will deliver a clear, consistent, compelling
message to the intended audience.
• The media mix is the combination of the
media used and the frequency of
advertising in each medium.
• Media buy is the actual purchase of air
time or print pages.
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Grewal, Marketing, 3e 13-37
 Mass and niche media
• Mass media channels include national
newspapers, magazines, radio and television as
a means to reach a large number of consumers.
• Niche media are more focused, targeting
unique demographics.

Source: Clegg Media

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Grewal, Marketing, 3e 13-38
Choosing the right medium

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Determine the advertising
schedule
• Continuous schedule: runs steadily
throughout the year
– suited to products that are consumed
continually
• Flighting: schedule where advertising is
implemented in spurts
– useful for seasonal products
• Pulsing: combines both by maintaining a
base level of advertising but with bursts of
increased activity
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Grewal, Marketing, 3e 13-40
 CHECK YOURSELF
What are the steps involved in planning
an ad campaign?
What are the differences between
informational, persuasive and reminder
advertising?
What are the pros and cons of the
different media types?
How can the effectiveness of advertising
be evaluated?

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Grewal, Marketing, 3e 13-41
Public relations
• Public relations (PR) is a relatively
passive tactic.
• The importance of PR has grown as
the cost of other media has
increased.
• As consumers grow more sceptical
about marketing, PR becomes more
relevant.

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Grewal, Marketing, 3e 13-42
 PR activities

Source: National Rugby League Ltd

Why do firms vie to support cultural, sports and entertainment sectors?

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Grewal, Marketing, 3e 13-43
Elements of a PR toolkit

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Grewal, Marketing, 3e 13-44
Sales promotions
• Can be aimed at both end-user
consumers or channel members
• Are used in conjunction with other
forms of IMC
• Can be used for both short- and
long-term objectives.

© ArliftAtoz2205/Shutterstock/DAL

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Grewal, Marketing, 3e 13-45
Types of sales promotion
Promotion Advantages Disadvantages
• Stimulates demand. • Has low redemption rates.
Coupons • Allows for direct tracing of sales. • Has high cost.
• Encourages trial.
Deals • May reduce perception of value.
• Reduces consumer risk.
• Builds goodwill. • Consumers buy for premium, not product.
Premiums • Increases perception of value. • Has to be carefully managed.
• Increases consumer
• Requires creativity.
Contests involvement.
• Must be monitored.
• Generates excitement.
• Increases involvement with the • Sales often decline after the sweepstakes
Sweepstakes product. is over.
• Encourages trial.
Samples • Has high cost to the firm.
• Offers direct involvement.
• Creates loyalty.
Loyalty programs • Has high cost to the firm.
• Encourages repurchase.
• Is difficult to get a good location in the
• Provides high visibility.
POP displays • Encourages brand trial.
store.
• Can be costly to the firm.
• Stimulates demand. • Is easily copied by competitors.
Rebates • Increases value perception. • May just advance future sales.
• Displays products non-
Product • Firm often has little control over display.
traditionally.
placement • Product can be overshadowed.
• Demonstrates product uses.

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 CHECK YOURSELF

What are the various forms of sales

promotions?
What factors should a firm consider
when evaluating a sales promotion?

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Grewal, Marketing, 3e 13-47
Personal selling
• A two-way flow of communication
between the buyer and seller
aimed to influence the buyer’s
purchase decision
• More expensive than other forms
of promotion but worth more than it
costs

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Grewal, Marketing, 3e 13-48
Personal selling and value

© Tyler Olson/Shutterstock
Sales personnel increase the overall value of product/service
offerings in a number of ways.

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Grewal, Marketing, 3e 13-49
 CHECK YOURSELF

Why is personal selling important to

an IMC strategy?

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Direct marketing
• Direct marketing communicates directly with
target customers to generate a response.
• The improvements in (and popularity of)
technology have made it a growing element
of IMC.
• Marketers have been able to build
databases due to consumers’ increased use
of credit and debit cards, loyalty programs
and online shopping.

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Grewal, Marketing, 3e 13-51
Online marketing

Websites

Blogs

Social media

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 CHECK YOURSELF

What are the different elements of

an IMC program?

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Case study

DMI offers an online course + certification package called DMI PRO that will
always make you gain cutting-edge digital marketing and professional skills with
continuously updated expert content.
How can DMI use Integrated Marketing Communications to its boost business—
1) to increase brand awareness and interest; 2) to trigger consumers’ desires; 3)
to increase enrollement?
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Grewal, Marketing, 3e 13-54
DMI – Case study
1. The target market
2. The objectives
3. What IMC activities can be done for this objective?

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Grewal, Marketing, 3e 13-55
Summing up
• The communication process involves a sender,
the message, a communication channel and a
receiver.
• AIDA is the basic model identifying the
components of capturing consumer interest.
• Advertising, direct marketing using technology,
PR and social media are all IMC channels.
• Designing an advertising campaign can take up
to seven steps, from the point of identification to
execution.
• Advertising aims to inform, persuade and remind
customers.
continued
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Grewal, Marketing, 3e 13-56
Summing up (cont.)
• Advertising appeals are either informational or
emotional.
• Firms can use mass or niche media to reach
their target market.
• A PR tool kit includes publications, video and
audio programs, public service
announcements, annual reports, media kits,
news releases and electronic media.
• Sales promotions are special incentives or
excitement-building programs that encourage
consumers to purchase.
continued
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