IMC Summary shortened - Advertising: An Integrated Marketing Communication Perspective PDF

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Download IMC Summary shortened - Advertising: An Integrated Marketing Communication Perspective PDF

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Integrated Marketing Communications  strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication. The goal is to generate short-term financial returns and create long-term brand and shareholder value          

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IMC  traditional tools of marketing integrated  coordinating the promotional methods, in order to achieve synergies Consistent message and image Don’t reach a lot of segments using traditional methods; therefore there is a need for IMC. Change in technologies  rise of the internet, time spent on internet vs. traditional media Various promotional mix elements have to be viewed as component parts of an integrated marketing communications program Advertisers/clients are key participants Marketing communication specialist organisations provide services in specific areas In house vs. outside agency Media specialist companies  media planning and buying of media = more complicated Advertising agencies lose accounts  not providing correct service levels, changes in top management, performance of client’s product or service. o Poaching of customers Problem recognition occurs when the consumers actual and ideal states are different o Out of stock o Dissatisfaction’ o New needs/wants o Related products or purchases o Marketer induced problem recognition o New product Neuroscience  physiological response to advertising (how does consumer respond to stimuli) o Helps determine store layouts etc. Social class  different social classes have different purchasing behaviour o Kinds of products/services purchased differs, with luxury items being purchased by more upper classes Subliminal advertising  could manipulate us without even knowing it is o Below the conscious threshold, thus it is hard for the consumer to ignore the message Communications is a major barrier o Cultural differences  symbols, colours and conditioning. o Back translation  translate then translate back to English to see if the message makes sense Commercial wear out  where commercial loses effectiveness after being viewed various times. o Humorous messages wear out faster

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o Avoid wear out by creating commercials that don’t offend/irritate consumers o Complex messages engage Objectives are necessary to effectively plan Communications objectives must be o Concrete and measurable o Specific target audience o Establish a benchmark o Realistic and attainable o Time specific Promotions / advertising is an investment rather than an expense. Competitors will reduce budget, therefore less clutter in the market place o Negotiate discounts Problem with establishing relationship between advertising and sales o Poor quality o Price is to high  not fault of advertising Metadata  computerised marketing information Interactive/Internet marketing

Sales promotion

Publicity/Public Relations

Direct Marketing

Advertising

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The Promotional Mix

Personal Selling

Advertising  any paid form of non personal communication about an organization, product service or an idea by an identified sponsor o Non personal = mass media Direct Marketing  organizations communicate directly with target customers to generate a response and/or transaction. o Database marketing, direct selling, telemarketing, direct response (think real insurance ads  want customers to pick up phone) o Direct Response Marketing  a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer. o Buying direct from business’ website Interactive/Internet Marketing o Interactive Media  allow for a back and forth flow of information whereby users can participate in and modify the form and content of the info received

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Sales Promotion  those marketing activities that provide extra value or incentives to the sales force, the distributors or the ultimate consumer and can stimulate immediate sales. o Consumer Oriented Sales promotion  Targets ultimate user of a product or service and includes couponing, sampling, rebates etc.  immediate purchase o Trade Oriented Sales Promotion  Targets wholesalers, distributors and retailers with price deals, sales contests and trade shows. o Sales Promotion Publicity/ Public Relations o Publicity  non-personal communications regarding an organization, product, service, or idea not directly paid for or sponsored by a company.  News releases/press conferences. Advantage  credibility o Public Relations  evaluates public attitudes, identifies the policies and procedures within the public interest and executes a program of action to earn public understanding and acceptance. Personal Selling  form of p 2 p communications, which the seller attempts to assist/persuade people to buy their crap. o Marketer can modify message accordingly

  Integrated marketing communications plan  provides the framework for developing, implementing and controlling the IMC program Marketing Objectives  refer to what is accomplished by the overall marketing program. Often stated in terms of sales, market share or profitability Communication Objectives  what the firm seeks to accomplish with its promotional program o Often stated in terms of the nature of the message or desired communication effects

Structure of an IMC plan

o Intro o Situation analysis  SWOT, PESTEL, MARKET, COMPANY, CUSTOMER, COMPETITOR o Objectives  communication, marketing o Budget o Target Audience o Communication Strategy o Creative Strategy o Media planning  what type o Media strategy  when / how often o Campaign research & evaluation o Conclusion Participants in the advertising process

Advertiser   

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Advertising Agency

Media

Potential Customer

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 while offering marketers an environment for reaching audiences with print or broadcast messages. Potential Customer  YOU

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Standard learning model / Learn  feel  do o Information/knowledge is learned about the brand, development of feelings, purchase  Most useful when decision process is highly involved Dissonance/attribution hierarchy/ do  feel  learn o Customers do then develop feelings as a result of ‘doing’ then learn or process information that supports this behaviour  Occurs when alternatives are similar in quality but are complex and have hidden attributes Low involvement hierarchy/ learn  do  feel o Low involvement in purchase decision  Minimal differences amongst alternatives

Advertising and Movement Towards Action. 

Promotional planners need to know how decisions about each independent variable influence the stages of the response hierarchy so that they don’t enhance one stage at the expense of another.

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Top Down Budgeting  top management sets the budget  promotional budget is then set to stay within this limit

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Affordable Method: o Firm determines the amount to be spent across various business areas, and then allocates what’s left to advertising and promotion. Arbitrary Allocation: o Budget is determined by management solely on the basis of what is thought to be necessary. Percentage of Sales: o Advertising and promotions budget is based on sales of the product. Bottom up Budgeting  objectives are decided upon then budget is allocated according to the tasks which need to be performed and their related costs.

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Creat ive

Strategy  determining what the advertisement will say/communicate  Creative Tactics  how the advertising message will be implemented to execute the creative strategy  Advertising Creativity  the ability to generate fresh, unique and relevant ideas that can be used as solutions to communications problems  Creative brief outline o Basic problem or issue advertising must address o Advertising and communications objectives o Target audience o Major selling idea or key benefits to communicate o Creative strategy statement (campaign theme, appeal, and execution techniques to be used) o Supporting information requirements Developing Media Objectives

Media Planning:

· Series of decisions involved in delivering the promotional message to the prospective users of the product or brand.

Media Objectives:

· Objectives formulated to organize a media plan.

Media Strategies:

· Plans of action designed to attain the media objectives.

Medium:

· General category of available delivery systems, which includes broadcast media (like TV and radio), print media (newspaper and magazines), direct marketing, outdoor advertising, and other support media.

Media vehicle:

· Specific carrier within a medium category. · E.g. Time and Newsweek are print vehicles;

Reach:

· Measure of the no. of different audience members exposed at least once to the media vehicle in a given period of time.

Coverage:

· Potential audience that might receive the message through a vehicle. · Relates to potential audience; reach refers to the actual audience delivered.

Frequency:

· No. of times the receiver is exposed to the media vehicle in a specified period.

Scheduling  Continuity  continuous pattern of advertising  Flighting  less regular schedule with intermittent periods of advertising and non advertising  Pulsing  combination of the two. Continuity is maintained but during certain efforts promotion is stepped up

TO WHOM SHALL WE ADVERTISE? WHERE TO PROMOTE?  BDI = Brand Development Index  helps to factor the rate of product usage by geographic area into the decision process  i.e. it calculates whether there is sales potential for a brand within a given market.  CDI = Category Development Index  helps determine product category performance  Helps determine potential new markets to allocate spending, and which markets are failing

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High BDI

Low BDI

High CDI

High market share Good market potential

Low market share Good market potential

Low CDI

High market share Monitor for sales decline

Low market share Low market potential

Example of media objectives: Create awareness in the target market through the following: o Use broadcast media to provide coverage of 80% of the target market over a 6-month period. o Reach 60% of the target audience at least three times over the same six-month period. o 1 000,000 app downloads across the campaign period

Trade-offs need to be made, if the cost of waste coverage is exceeded by the benefits gained from using certain media, then it is a benefit . Geographic coverage  weighting certain regions as more important than others when developing media strategy, Thus the company would spend more promotional efforts in markets which are more receptive to their products.  E.g. selling snow stuff, would advertise more in the mountain areas Reach vs. Frequency  Because of budgetary constraints, trade-offs need to be made for reach and frequency.  Is the message to be heard by more people (reach) or fewer people more, but more often (frequency)? Factors important in determining frequency levels • Marketing factors o Brand history /share/loyalty o Purchase cycles o Usage cycle o Competitive share of voice o Target group • Message factors o Message complexity /uniqueness o New versus continuing campaigns o Image versus product sell o Message variation o wear out o Advertising units • Media factors o Clutter o Editorial environment o Attentiveness o Scheduling o Number of media used o Repeat exposure 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

Flexibility to address the following: • Market opportunities / threats • Availability of media • Changes in media or media vehicles 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 the audience delivered used to compare media vehicles

Evaluation and follow-up • How well did these strategies achieve the media objectives? o Leads to…. • How well did the media plan contribute to attaining the overall marketing and communications objectives? o Leads to... • Use again or analyze flaws

Broadcast Media  TELEVISION AND RADIO  Advantages of television  Creativity and impact o Combination of sight and sound provides endless opportunities o Demonstrating how products/services are used  Coverage and cost effectiveness o Reach large audiences in mass markets and achieve cost efficiency  Captivity and attention o Viewers cannot avoid all advertisements  Selectivity and flexibility o Some selectivity is possible  variations in programing  E.g. Saturday morning TV for children, sports programming.  Geographic selectivity, through spot ads in local areas  Disadvantages of Television  Costs  Lack of selectivity o Advertisers seeking a specific market, often find coverage extends beyond the target market.  Reducing cost effectiveness  Fleeting message o Only last 30 sec and leave nothing tangible for the viewer  Clutter o Clutter  non-program material that appears in a broadcast environment  Limited viewer attention o Zipping  fast forwarding through commercials as they playback a recorded program o Zapping  changing channels to avoid ads  Distrust and negative evaluation

Common Television Scheduling

Advantages of Radio  Cost and Efficiency  Receptivity o Radio advertisements considered more personally relevant.  Selectivity o High degree of selectivity through program formats (specialised stations) o Appeals to hard to reach audiences  Flexibility o Can change the message almost up until it goes to air  Mental Imagery o Image transfer  images of TV commercial are implanted into radio spot. (Uses same audio as TV.) o Create mental imagery of products  Integrated Marketing Opportunities o Can be used in combination with other media Disadvantages of Radio  Creative Limitations o Cannot show/demonstrate the product  Fragmentation o High fragmentation due to high number of stations  Chaotic buying procedures  Limited listener attention  Competition from digital media  Limited research data  Clutter  Cash for comment issues Role of Magazines and Newspapers  Allows presentation of detailed information that can be processed at the reader’s own pace.  Don’t offer same creative options as they do on radio/tv Advantages of Magazines  Selectivity o Geographic selectivity o Demographic selectivity  Reproduction quality  Creative flexibility o Gatefolds  use of a third fold out page to make a larger spread o Bleed pages  ads which go all the way to the edge of the page o Inserts  fragrances  Permanence / long life span  Prestige  Consumer receptivity and engagement o Ability to engage readers and hold their attention  Services

Disadvantages of Magazines  Costs  Limited reach and frequency o Many people read magazines, however numbers reading any individual publication tend to be low. o Only comes out once a month  Long lead time  Clutter and competition Advantages of Newspapers  Market penetration o High market coverage  40% of households read newspapers daily – could be up to 60% in certain areas  Flexibility  Geographic selectivity o National, regional and local newspapers  Reader involvement and acceptance  Services offered Disadvantages of newspapers  Poor reproduction o ads are poor quality  Short lifespan o Repeat exposure unlikely  daily newspapers discarded after a day  Lack of selectivity o Demographic/lifestyle  Clutter Support media • Reach target audience that primary media may not have effectively reached • Reinforce or support primary media messages o Alternative media support media o Below –the- line media  support media whose costs are not assigned directly to advertising and/or promotional budgets o Non measured media  support media o Non traditional media  newer media i.e. internet / interactive media (blogs, podcasts) Traditional support media • Out of home  outdoor advertising; digital outdoor (video networks; digital billboards) • Alternative out of home media  aerial advertising (blimps; airplanes pulling banners/skywriting); mobile billboards • In-store media  ads, aisle displays, store leaflets; cart signage, in store TV • Transit advertising inside cards; outside posters; stations; platform and terminal posters

Advantages of outdoor advertising  Wide coverage of local markets  Frequency and geographic flexibility  Creativity  Ability to create awareness  Efficiency and effectiveness  Production capabilities  Timeliness Disadvantages of outdoor advertising  Waste coverage  Limited message capabilities  Wear out  Cost  Measurement problems  Image problems  Advantages of transit advertising  Exposure  Frequency  Cost Disadvantages of Transit Advertising  Reach o People who do not use public transport  Mood of the audience  Transit advertising-> inside card; outside posters; stations, platform and terminal posters Promotional products marketing • Promotional products marketing  promotional medium or method that uses the following promotional products

o Ad specialties o Premiums o Business gifts o Awards o Prizes o Commemoratives Advantages of promotional product marketing • Selectivity • Flexibility • Frequency • Cost • Goodwill • High recall • Supplementing other media Disadvantages of promotional products marketing  Image  Saturation  Lead time  Reach Other traditional support media  yellow pages advertising  Is declining due toy increased preference for online directories  Yellow pages are referred to as a directional medium o Directional medium: ads do not create awareness or demand for products or services but provides the location Other traditional support media Advantages of Cinema Advertising • Exposure • Emotional attachment • Cost  low absolute costs per exposure • Attention • Lack of Clutter • Proximity • Segmentation • Integration Disadvantages of Cinema Advertising • Irritation • Cost Non-traditional support media  Branded entertainment  product placement; product integration; advertisement; content sponsorship; ad-supported video on demand (VOD)  Guerrilla marketing  (stealth; street; buzz; ambush; viral) aerial advertising (blips; airplanes pulling banners/ sky writing); mobile billboards  Miscellaneous other  video ads; parking lot; gas station ads [get awareness and attention; can be cost efficient; and targeted but can cause irritation/ interruption and wear out]

Advantages of Branded Entertainment • Exposure • Frequency • Support for other media • Source association • Cost • Recall • Bypassing regulations • Acceptance and targeting Disadvantages of branded entertainment  High absolute cost  Time of exposure  Limited appeal  Lack of control  Public reaction  C...