IMC Notes - 1
IMC Notes - 1
IMC Lectures
Introduction – Lecture 1
Advertising and the marketing process
What is marketing
- Satisfying needs and wants through the exchange process
- Activity and processes for creating, communicating and delivering value for end-
users
- Exchange: involves both parties in an exchange of ‘value’ and a way to communicate
- Value: customer’s perception of benefits versus costs (acquiring and consuming)
- The set of activities whereby businesses and other organisations create transfers of
value (exchanges) between themselves and their customers
Marketing mix
- Product, price, place and promotion
- To develop an effective marketing mix, marketers must:
o Be knowledgeable about the issues and options of each element of the mix
o Know how to combine the elements to form an effective marketing program
o Analyse the market and use the data to develop the marketing strategy and
mix
The marketing and promotional mixes
- Product or service
- Pricing policy
- Distribution (place) method
- Promotional mix
o Advertising
o Direct marketing
o Interactive/internet marketing
o Sales promotion
o Publicity/public relations
o Personal selling
o Public relations
- Combines the disciplines to provide:
o Clarity
o Consistency
o Maximum communications impact
Model of the IMC planning process
Direct marketing
- Whereby organisations communicate directly with target customers to generate a
response and/or a transaction
- E.g. telemarketing, direct selling, direct response ads – direct mail, direct response
TV, direct response radio etc.
- Direct mail – letters, flyers, brochures, catalogues etc.
Interactive/internet marketing
- Allows for back-and-forth flow of information whereby users can participate in and
modify the form and content of the information they receive in real time
- Users can receive information and images, make enquiries, respond to questions,
make purchases
- Interactive media – internet, social media, mobiles, kiosks, CD-ROMs
Sales promotion
- Those marketing activities that provide extra value or incentive to the sales force,
distributors, or the ultimate consumer and can stimulate immediate sales
- Consumer-oriented (eg discounts, point-of-purchase materials)
- Trade-oriented (eg sales contests, price deals)
Publicity
- Non-personal communications regarding an organisation, product, service or idea
that is not directly paid for or run under identified sponsorship
- Comes in the form of a news story, editorial, or announcement about an
organisation and/or its products and services
Public relations
- A management function which manages and controls a program of action to earn
public understanding and acceptance
- It encompasses a wide variety of communication efforts to foster goodwill and gain
public understanding
- Used to build rapport with the various publics (e.g. employees, customers,
stockholders, voters, competitors or the general population)
Personal selling
- A form of person-to-person communication in which a seller attempts to assist
and/or persuade prospective buyers to purchase the company’s product/service or
act on an idea
Integrated marketing communications
- Integrated marketing communication is a strategic business process used to plan,
develop, execute and evaluate coordinated, measurable, persuasive brand
communications programs over time with consumers, customers, prospects,
employees, associates and other targeted relevant external and internal audiences.
- The goal is to generate both short-term financial returns and build long-term brand
and shareholder value.
- A concept of marketing communications planning that recognises the added value of
a comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines—for example, general advertising, direct response, sales
promotion, and public relations—and combines these disciplines to provide clarity,
consistency, and maximum communications impact.
IMC audience contact tools
Touch points
- Refers to each and every opportunity the customer has to see or hear about the
company and/or its brands or have an encounter or experience with it
Advertiser/client
- Organisations with the products, services, or causes to be marketed and for which
advertising agencies and other marketing promotional firms provide services
Advertising agency
- A firm that specialises in the creation, production, and/or placement of advertising
messages and may provide other services that facilitate the marketing
communications process
In-house agencies
- Advantages:
o Cost savings
o More control
o Better coordination
- Disadvantages
o Less experience
o Less objectivity
o Less flexibility
Reasons for using an agency
- Obtains services of highly skilled specialists
o Artists
o Writers
o Media analysts
o Researchers
o Others with specific skills
- Obtain an objective point of view
o Free of internal policy constraints and biases
o Broad range of experience, having worked with diverse marketing problems
and various types of clients
Other agencies and services – creative boutiques
- Provide only creative services
- Other functions provided by the internal client department
- Full-service agencies may subcontract with creative boutiques
Other agencies and services – media buying services
- Specialise in buying media, especially broadcast time
- Agencies and clients develop media strategy
- Media buying organisations implement the strategy and buy time and space
Why agencies lose clients
- Poor performance or service
- Poor communication
- Unrealistic demands by the client
- Personality conflicts
- Personnel changes
- Changes in size of the client or agency
- Changes in the client’s corporate and/or marketing strategy
- Conflicts of interest
- Declining sales
- Conflicting compensation philosophies
- Changes in policies
- Disagreements over marketing and/or creative strategy
- Lack of integrated marketing capabilities
How agencies gain clients
- Referrals
- Solicitations
- Presentations
- Public relations
- Image and reputation
Media
- Organisation whose function is to provide information/entertainment to subscribers,
viewers, or readers while offering marketers an environment for reaching audiences
with print or broadcast messages
Media spending in Australia
Potential customer
o Evaluative criteria:
Criteria – dimensions or attributes of a product or service to compare
various alternatives
Objective criteria – price, warranty, colour, size
Subjective criteria – style, appearance, image
Consequences – outcomes that result from using a product or service
Functional consequences – concrete and tangible
Psychological consequences – abstract, intangible
- Purchase
o Choosing the product or brand to be bought, based on the outcome of the
evaluation stage
o The choice of seller, terms of sale, price, delivery and warranties may affect
the final product selection
- Post-purchase evaluation
o Cognitive dissonance – a buyer’s doubts shortly after a purchase about
whether the decision was the right one
o Buyers are most likely to seek reassurance after the purchase of an
expensive, high-involvement product
Psychological processes
- Motivation
o Maslow’s hierarchy of needs
Operant conditioning
Subculture
- Social class
- Reference group
- Situational determinants
Persuasion mix
- Helps marketers see how each controllable element interacts with the consumer’s
response process
Decisions evaluated
with the persuasion
matrix
Encoding
- There are many forms of message encoding:
Human communicators
- Verbal
o Vocabulary
o Grammar
o Inflection
- Nonverbal
o Gestures
o Facial expression
o Body language
The Model
The Clothes
The Setting
The Statement
Examples of types of advertising and other forms of promotion relevant to various steps that
lead consumers to purchase/action
Elaboration
likelihood model
(ELM)
Sales-oriented objectives
- Aim to increase sales
- Require economic justification
- Required to produce quantifiable results
- Based on the
achievement of
sales results
Communications objectives
- Provide relevant information
- Create favourable predispositions toward the brand
- Set using models wherein consumers pass through 3 stages:
o Cognitive
o Affective
o Conative (behavioural)
Establishing a budget
Perpetual Debate
Advertising Campaign
Set of interrelated and coordinated marketing communications activities that centre
on a single theme or idea
o Appear in different media sources across a specified time period
Campaign theme
o Central message communicated in all the advertising and promotional
activities
o Expressed through a slogan or tagline
Slogan
o Summation line that briefly expresses the company or brand’s positioning
and the message it is trying to deliver to the target audience
Some strategies for coming up with the major selling idea (“the big idea”)
Determining the central theme that will become the major selling idea of the
campaign is an important part of creative strategy. Some approaches to develop the
major selling idea are:
o The unique selling proposition (Reeves)
o Creating a brand image (Ogilvy)
o Finding the inherent drama (Burnett)
o Positioning (Trout and Ries)
Informational/Rational Appeals
Focus on the consumer’s practical, functional, or utilitarian need for the product or
service
Emphasize:
o Features of a product or service and/or the benefits
o Reasons for owning or using a particular brand
o Feature appeal – focuses on the dominant traits of the product or service
Rational appeals
o Feature appeals
Focus on the dominant traits of the product
o Competitive appeals
Makes comparisons to other brands
o Favourable price appeals
Makes price offer the dominant point
o News appeals
News or announcement about the product
o Product/service popularity appeals
Stresses the brand’s popularity
Emotional Appeals
Relate to the customers’ social and psychological needs for purchasing a product or
service
Create favourable effect on consumers’ evaluations of a brand
Generate large profit gains
Personal states or feelings:
o Achievement/accomplishment
o Actualisation
o Ambition
o Excitement
o Fear
o Happiness
o Pride
o Nostalgia
o Love
o Security
o Sorrow/grief
o Sentiment
o Joy
o Arousal/stimulation
Social based feelings
o Acceptance
o Approval
o Affiliation/belonging
o Embarrassment
o Rejection
o Respect
o Status
Transformational Ads
Ad Execution Techniques
Straight-sell or factual message
Science/technical evidence
Demonstration
Comparison
Testimonial
Animation
Personality
Fantasy
Dramatization
Humour
Print Ad Components
Headline
o Words in the leading position of the ad
Subheads
o Smaller than the headline, larger than the copy
Illustration
o Visual elements such as drawings or photos
Body copy
o The main text portion of a print ad
Logo
o Visual symbol of the product or brand
Ad Layout
Media Strategy
Media Selection Decisions
o Where to advertise
Media Scheduling Decisions
o How long/often to advertise
Media Plan
Guides media selection
Aims to find a combination of media to communicate a message:
o In the most effective manner
o To the largest number of potential customers
o At the lowest cost
i. Media Mix
Adds more versatility to the media strategies
Increases coverage, reach and frequency levels
Improves the likelihood of achieving overall communications and marketing goals
Ratings Points
o Program rating potential reach in the broadcast industry
o Gross ratings points (GRPs) GRP = Reach x Frequency
o Target ratings points (TRPs) Number of people in the primary target
audience the media buy will reach, and the number of times Does
not include waste coverage
Effective Reach
o Represents the percentage of audience reached at each effective
frequency increment
o Based on assumption that one exposure to an ad may not be enough to
convey the desired message
Graph of effective reach
vi. Recency
Recency Planning
o Focusing on short interval reach at minimum frequency levels as close to
the purchase decision as possible
o Has continuous schedule over a one week period
o Targets less to gain exposure to reach as many potential consumers as
possible
vii. Creative Aspects and Mood
Creative aspects
o Effective implementation of creativity requires appropriate medium
o Required media and creative departments to work together to achieve
the greatest impact with the audience
Mood
o Appropriate media should be used to create a mood that enhances the
creativity of a message
viii. Flexibility
Helps in dealing with:
o Market opportunities
o Market threats
o Availability of media
o Changes in media or media vehicles
ix. Budget Considerations
Absolute cost actual total cost required to place the message
Relative cost relationship between price paid for advertising time or space and
the size of audience delivered
o Used to compare media vehicles
Determining Relative Costs of Media
What we’re willing and able to spend vs what we need to achieve our objectives
Advertising
Any paid form of nonpersonal communication about an organisation, product,
service or idea by an identified sponsor
Examples:
o Broadcast media
o Print media
o Support media
1. Broadcast Media
Radio and TV Similarities
Television
Advantages of Television
o Excellent creativity and impact
o High coverage and more cost-effectiveness
o High captivity and attention
o Selectivity and flexibility
Limitations of Television
o Costs
o Lack of selectivity
o Fleeting message
o Clutter
o Limited viewer attention
Zipping: Occurs when viewers fast-forward through
commercials as they play back a previously recorded program
Zapping: Changing channels to avoid commercials
Common Television Dayparts
Radio
Advantages of Radio
o Cost and efficiency
o Receptivity
o Selectivity
o Flexibility
o Mental imagery
Image transfer: Images of a TV commercial are implanted into a
radio spot
o Integrated marketing opportunities
Limitations of Radio
o Creative limitations
o Fragmentation
o Chaotic buying procedures
o Limited research data
o Limited listener attention
o Competition from digital media
o Clutter
2. Print Media
Role of Magazines and Newspapers
Reader sets the pace
Not intrusive
High involvement
High readership
Selective audience
Magazines
Advantages of Magazines
o Selectivity
o Reproduction quality
o Creative flexibility
o Permanence
o Prestige
o Consumer receptivity and engagement
o Services
Disadvantages of Magazines
o Costs
o Limited reach and frequency
o Long lead time
o Clutter and competition
Newspaper
Advantages of Newspapers
o Market penetration
o Flexibility
o Geographic selectivity
o Reader involvement and acceptance
o Services offered
Disadvantages of Newspapers
o Poor reproduction
o Short life span
o Lack of selectivity
o Clutter
3. Support Media
Uses a variety of non-traditional channels to deliver communications and to
promote products and services
Role:
o Reach target audience that primary media may not have effectively
reached
o Reinforce or support primary media messages
o Includes: outdoor advertising; aerial advertising; mobile billboards; in-
store media; transit advertising; promotional products; yellow pages;
cinema advertising; product placement; inflight advertising
Other Terms for Support Media
o Alternative media
o Below-the-line media
o Non-measured media
o Non-traditional media
Outdoor Advertising
Advantages:
Transit Advertising
Advantages
o Exposure
o Frequency
o Cost
Disadvantages
o Reach
o Mood of the audience
Yellow Pages
Advantages
o Wide availability
o Action-oriented ads
o Cost
Inflight Advertising
Advantages:
o Desirable audience
o Captured audience
o Cost
o Segmentation capabilities
Disadvantages:
o Irritation
o Limited availability
o Lack of attention
o Wearout
Branded Entertainment
A form of advertising that blends marketing and entertainment through
television, film, music, talent and technology
Product placements, product integration, advertainment, content
sponsorship, ad-supported video on demand
Advantages:
o Exposure
o Frequency
o Support for other media
o Source association
o Cost
o Recall
o Bypassing regulations
o Acceptance and targeting
Disadvantages
o High absolute cost
o Time of exposure
o Limited appeal
o Lack of control
o Public reaction
o Competition
o Negative placements
o Clutter
Promotional Mix
Direct Marketing
Whereby organisations communicate directly with target customers to generate a
response and/or a transaction
Interactive system of marketing which uses one or more advertising media to effect a
measurable response and/or
transaction at any location
Direct marketing combines with:
http://www.adma.com.au/assets/Uploads/Comply-Documents/ADMA-Code-of-
Practice3.pdf
Generate interest
Disseminate information
Create an image
Create a strong brand
Stimulate trial
Create buzz
Gain consideration
Paid Searches
Higher a site appears on a search page the more visitors it will receive
Organic search results appear due to their relevance to the search terms
Pay-per-click placing ads on webpages that display results from search engine
queries
Search engine optimization (SEO) improving the volume of traffic to a site by a
search engine through unpaid results
Behavioural Targeting
Based on advertisers’ target consumers by tracking their website surfing behaviours
Retargeting
o Ads follow a web user and are displayed on every participating subsequent
websites the user visits
Contextual Advertising
Ads are determined by the content on the webpage
Native advertising:
o Advertisers gains attention by providing valuable content in the context of
the user’s experience
o Controversial
o May be deceptive
Rich Media
Interactive digit media that exhibit dynamic motion
Online commercials
o Advertisements that appear on the net
o Pre-rolls: commercials that appear before the content that the user is seeking
Video-on-demand
o Video clips of various entertainment that can be availed on demand from the
internet
Webisodes
o Short featured films created by the advertiser
Social Media
Allow the creation and exchange of user-generated content
Social networking sites: Platforms for networks or social relations
o Allow sharing interests, activities, backgrounds, or real-life connections
Motivations for using social media:
o To share ideas, activities and events
o Community involvement
o To gain information
o Entertainment
o Remuneration
Mobile
Has significant impact on companies’ IMC programs
Rapid growth and adoption by consumers is making marketers realise their potential
in a marketing context
Internet Advantages
Targeting marketing
Message tailoring
Interactive capabilities
Information access
Sales potential
Creativity
Exposure
Speed
Complement to IMC
Internet Disadvantages
Measurement problems
Clutter
Potential for deception
Privacy
Poor reach
Irritation
Sales Promotion
Those marketing activities that provide extra value or incentive to the sales force,
distributors, or the ultimate consumer and can stimulate immediate sales
Consumer-Oriented Promotion
Samples
Coupons
Premiums
Contexts/sweepstakes
Refunds/rebates
Bonus packs
Price-offs
Loyalty programs
Event marketing
Promotional Mix
Role of PR
Community Sponsorships
Event sponsorships e.g. athletic events, concerts, festivals and fairs
Cause-related sponsorship supporting causes and raising funds for charity
o Example: Movember
Publicity
Non-personal communications regarding an organisation, product, service, or idea that is
not directly paid for or run under identified sponsorship
Personal Selling
A form of person-to-person communication in which a seller attempts to assist and/or
persuade prospective buyers to purchase the company’s product/service or act of an idea
Disadvantages:
o Messages may be inconsistent
o Possible management-sale force conflict
o Cost is often extremely high
o The reach may be very limited
o Potential ethical problems
Marketing Research
Information to aid decision making
Advertising research is a specialised form of marketing research conducted to
improve the efficiency of advertising
Industry Currency
“Industry currency” means that a given source is widely regarded as the most
authoritative for a particular type of research
For example:
o TV Usage – OZTAM Australia
o Radio Usage – Nielsen
Measuring Effectiveness
Reasons to measure effectiveness:
o Avoid costly mistakes
o Evaluate alternative strategies
o Increase efficiency of advertising in general
o Determining if objectives are achieved
Reasons not to measure effectiveness
o Cost of measurement
o Problems with research
o Disagreement about what to test
o Creative objections
o Lack of time
Testing Factors
What to test
o Source factors
o Message variables
o Media strategies
o Budget decisions
When to test
o Pretesting
o Post-testing
Where to test
o Laboratory tests
o Field test
Testing Methods
Pretesting
o Laboratory Methods
Consumer juries
Portfolio tests
Psychological measures
Theatre tests
Rough tests
Concept tests
Reliability tests
Comprehension tests
Reaction tests
o Field Methods
Dummy ad vehicles
On-air tests
Post-tests
o Field Methods
Recall tests
Association measures
Single-sources systems
Inquiry tests
Recognition tests
Tracking studies
International Advertising
The Major International Advertising Decisions
Economic Environment
Stage of economic development
Economic infrastructure
Standing of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates
Cultural Environment
Languages
Lifestyles
Values
Norms and customs
Ethics and moral standards
Taboos
Demographic Environment
Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education levels
Employment rates
Income levels
Political/Legal Environment
Government policies
Laws and regulations
Political stability
Nationalism
Attitudes towards multinationals
International Advertising
The U.S. accounts for over half of world advertising expenditures
Advertising expenditures outside the U.S. are growing more rapidly than inside
Every country in the world has advertising of one form or another
The more affluent the country, the more is spent on advertising
International Ad Agencies
Many large, American general agencies operate internationally
Foreign billings account for over a third of total billings by the top 10 American
agencies
Large multinational companies often deal with large, international agencies
Overseas offices are usually staffed with multilingual, multinational personnel
Advertising Ethics
Ethics Moral principles and values that govern the actions and decisions of an individual
or group
Advertising
Ethical Issues
Untruthful or deceptive
Taste and decency
Bait and switch
Sexual appeals
Advertising to children
Stereotyping
Making people buy things they don’t need
Self-Regulation of Advertising
Advertising is regulated through self-regulation
David Ogilvy’s Golden Rule Do not run ads that would wouldn’t want your mother to see
Lecture 12 – Revision
The Marketing & Promotional Mixes
Product or service
Pricing policy
Distribution (place) method
Promotional mix
o Advertising
o Direct marketing
o Interactive/internet marketing
o Sales promotion
o Publicity/public relations
o Personal selling
Advertiser Organisations with the products, services or causes to be marketed and for
which advertising agencies and other marketing promotional firms provide services
Advertising Agency A firm that specialises in the creation, production, and/or placement
of advertising messages and may provide other services that facilitate the marketing
communications process
Media Organisation whose function is to provide information/entertainment to
subscribers, viewers or readers which offering marketers an environment for reaching
audiences with print or broadcast messages
Advertising Creativity The ability to generate fresh, unique and appropriate ideas that can
be used as solutions to communications problems
Advertising
Broadcast Media
Print Media
Support Media
Ad Testing Factors
What to test
o Source factors
o Message variables
o Media strategies
o Budget decisions
Where to test
o Laboratory tests
o Field tests
How to test
o Testing guidelines
o Appropriate tests
When to test
o Pretesting
Laboratory Methods
Consumer juries
Portfolio tests
Psychological Measures
Theatre tests
Rough tests
Concept tests
Reliability tests
Comprehension tests
Reaction tests
Field Methods
Dummy ad variables
On-air tests
o Post-testing
Field Methods
Recall tests
Association measures
Single-source systems
Inquiry tests
Recognition tests
Tracking studies
Self-Regulation
Self-Regulation by…
o Advertisers and agencies
o Trade/industry associations
o Media
o Advertising standards bureau