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Integrated Marketing Communication PDF
Integrated Marketing Communication PDF
SYLLABUS
MODULE 1
Role of IMC in marketing process, IMC planning model, Marketing and
promotion process model. Communication process, steps involved in developing
IMC programme, Effectiveness of marketing communications
Advertising: Purpose, Role, Functions, Types, Advertising Vs Marketing mix,
Advertising appeal in various stages of PLC
MODULE 2
Advertising Agency: Type of agencies, Services offered by various agencies,
Criteria for selecting the agencies and evaluation.
MODULE 3
Advertising objectives and Budgeting: Goal setting – DAGMAR approach,
various budgeting methods used.
MODULE 4
Media planning: Developing Media plan, Problems encountered, Media
Evaluation-Print, Broadcast media, Support media in advertising.
Media strategy: Creativity, Elements of creative strategies and its
implementation, Importance of Headline and body copy.
MODULE 5
Direct Marketing: Features, Functions, Growth, Advantages/Disadvantages, And
Direct Marketing Strategies.
Promotion: Meaning, Importance, tools used, Conventional/unconventional,
drawbacks, push pull strategies, Co-operative advertising, Integration with
advertising and publicity
INDEX
Contents Page No
MODULE I
Budget determination
• Setting a tentative objective for marketing communication
• Allocating tentative budget, deciding on the budget strategy
• Calculating the cost of promotion activities, percentage of sales revenue to
allocated towards promotional activities.
Promotion can be the co-ordination of all seller initiated efforts to set up channels
of information and persuasion in order to sell goods & services or promote an idea.
Promotional Mix:
Communication Process:
SENDER’S FIELD OF EXPERIENCE RECEIVER’S FIELD of
EXPERIENCE
SOURCE FACTORS
Source refers to person directly / indirectly involved in communicating the
marketing message.
ATTRIBUTES of source:
• Credibility Internalization
• Applying expertise
• Applying trustworthiness
• Using corporate leaders as spokespeople
MESSAGE FACTORS
Promotional managers should consider not only the content of the message but
also: - the structure of the information for presentation & the type of message
appeal
Message Structure:
• Message Structure:
– Order of presentation
– Conclusion Drawing
– Message Sidedness
– Refutation
– Verbal Vs Visual Message
media
Functions of Advertising
1. Advertising is a way of communicating information to the consumer.
2. It is the economical means by which manufacturer/marketer can communicate to
the audience.
3. Advertising is an inseparable part of free speech.
4. Advertising improves the economies of developing/developed nations.
5. Advertising is an essential and integral part of marketing mix.
Purpose of Advertising
• Facilitates communication with the consumers.
• Persuades prospective buyers to buy a product/service.
• Advertising contributes to the economic growth.
– Direct
– Indirect
The number and type of sponsors of the advertisement:
– Single sponsor ads
– Co-operative ads (Horizontal/Vertical)
Advantages Disadvantages
Aids attention and awareness Does not aid persuasion in general
May aid retention of the message May harm recall and comprehension
Creates a positive mood and enhances May harm complex copy registration
persuasion
May aid simple name and simple copy Does not aid source credibility
registration
May serve as a distractor and reduce May wear out faster
MODULE II
Advertising Agency
Types of Agencies
-Service Agency
Full-Services Agencies
• Full Range of Marketing, Communication and Promotion services
– Planning, creating, producing advertising
– Performing research
– Selecting and purchasing media
• Non-Advertising Services
– Strategic market planning
– Sales promotion
– Internet and interactive
– Public relations and publicity
– Production of trade show materials
– Package design
Agency Services
Account service
the link between agency and client
Managed by the account executive
Marketing services
Research department designs and executes research programs
Media department analyzes, selects and contracts media time and space
Creative services
Creation and execution of ads
Copywriters, artists, other specialists
Creative Boutiques
Agencies that specialize in the creative process of advertising
Agency Compensation
The Commission System
Agency usually receives 15 percent
Commissions are paid by the media
Commission system is controversial
System is becoming less common
Fee Arrangement
Fixed fee method
Fee-commission method
Cost-Plus Agreements
Incentive-Based Compensation
Percentage Charge
-House Agencies
Advertising agency set up within the company and is owned and operated
internally
Advantages
Disadvantages
Disadvantages
• Ineffective Decision Making
• Internal Conflicts
• Problems with fund allocation
• Lack of Authority
In-House Agencies
Advantages
• Cost savings
• More control
• Better coordination
Disadvantages
• Less experience
• Less objectivity
• Less flexibility
Reasons for Using an Outside Agency
Obtain services of highly skilled specialists
Artists
Writers
Media analysts
Researchers
Others with specific skills
Obtain an objective point of view
Free of internal policy constraints and biases
Broad range of experience, having worked with:
Diverse marketing problems
Various types of clients
Criteria for selecting an advertising agency
• What rates they charge
• What their previous track record is
• Where their expertise lies
• How big is the agency?
• How personal is the service
Agency Evaluation Process
Financial Audit –
Focuses on how the agency conducts its business and includes verification of costs,
expenses, number of personnel hours charged to an account and payments to
suppliers and media
Qualitative audit –
Focuses on the agency’s efforts in planning, developing, and implementing the
client’s advertising and promotion program and the results achieved.
– Contests/sweepstakes
– Refunds and rebates
Interactive Agencies
Agencies that specialize in the development and strategic use of various interactive
marketing tools.
Services include:
– Web sites
– Web banner ads
– Digitized content (audio, video, animation)
– CD-ROMs
– Kiosks
MODULE III
Advertising objectives and Budgeting
Goal Setting:
and Decisions
Types of Objectives
Marketing Objectives
IMC Objectives
Statements of what various aspects of the IMC program will accomplish based on
communication tasks required to deliver appropriate messages to the target
audience.
DAGMAR Approach
Define
Advertising
Goals for
Measuring
Advertising
Results
DAGMAR Difficulties
Legitimate Problems
The research and efforts cost more than the results are worth.
Budgeting Decisions
Budgeting decisions involve determining how much money will be spent on
advertising and promotion each year and how the monies will be allocated
Two major decisions
• Establishing the size of the budget
• Allocating the budget
Marginal Analysis
Sales are the result of advertising and promotion and nothing else.
Various budgeting methods used
There are two Approaches in Advertising Budgeting:
1. Top Down: Budget is fixed
2. Bottom Up: It is objective & task method
Top-down approach purely based on top management discretion Subjective and
judgmental in nature.
Bottom-up approach Based on advertising objectives to be achieved Objective and
data oriented in nature
Top-Down Budgeting
1. Top-Down Approaches
a. The Affordable Method
What we have to spare. What's left to spend?
This approach means that the advertising budget will be decided on the basis of
whatever money is left after all other fixed and unavoidable expenses have been
allocated. New entrepreneurs have no other option but to follow this method when
they are short of funds
b. Arbitrary Allocation Method
No system. Seemed like a good idea at the time.
c. Percentage of Sales Method
Set percentage of sales or amount per unit.
d. Competitive Parity Method
Match competitor or industry average spending.
This is the most controversial method and few executives admit that they use it
while preparing the budget. In this approach an advertiser bases his budget
decision primarily on the expenditures of competitors. That is they try to keep pace
with their competitor’s advertising budgets.
e. Return on Investment Method
Spending is treated as a capital investment.
2.
Bottom-
Up
Budgeti
ng
Organizationalcharecterstics
MODULE IV
Lack of information
Inconsistent terms
Serious time pressure
Measurement problems
Media Terminologies:
2. Since one exposure is usually ineffective, the central goal of productive media
planning should be to enhance frequency rather than reach.
4. Beyond three exposures within a brand purchase cycle or over a period of four
or even eight weeks, increasing frequency continues to build advertising
effectiveness at a decreasing rate but with no evidence of decline.
5. Although there are general principles with respect to frequency of exposure and
its relationship to advertising effectiveness, differential effects by brand are equally
important
7. The data strongly suggest that wear out is not a function of too much frequency.
It is more of a creative or copy problem.
Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive share of voice
Target group
Message complexity
Message uniqueness
New vs. continuing campaigns
Image versus product sell
Message variation
Wear out
Advertising units
Media Evaluation
Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat Exposures
Advantages
erage
Disadvantages
Radio Characteristics
Advantages
-segmented audience
Disadvantages
Print media:
Magazines Characteristics
Advantages
Disadvantages
Newspapers Characteristics
Advantages
Low cost
Disadvantages
-getting capabilities
ity
Support Media:
Outdoor Characteristics
Advantages
Disadvantages
Advantages
Disadvantages
Advantages
Disadvantages
measurement techniques
Creative Process
1. Rational Appeal
2. Emotional Appeal
MODULE V
Meaning
Promotion: Any form of communication a business or company uses to inform,
persuade, or remind people about products and to improve its image
Importance:
Developing & Managing an Advertising Program
Deciding on Media & Measuring Effectiveness
Sales Promotion
Public Relation
Principles of Personal Selling
Co-operative advertising
Agreement between a manufacturer and a member of distribution chain
(distributor, wholesaler, or retailer) under which the manufacturer shares a certain
percentage of the member's advertising and promotion costs, or contributes a fixed
sum.
Agreement between two or more marketers with complementary products (such as
cosmetics and toiletries) or different seasonal sales cycles (such as raincoats and
winter coats) to promote or sell each other's products with their own. Also called
cooperative marketing or co-marketing.
Integration with advertising and publicity
Advertising specialties are a good way for a company to increase awareness of its
name, phone number, and or brands. It can be a way to keep the company's name
or logo in front of the customer for hours every day (e.g., on a mouse pad, mug, or
pen). I know a very successful air conditioner/refrigerator/stove repairperson.
The advantage of publicity, besides the fact that it is free, is that it tends to more
credible than advertising. On the other hand, there is no guarantee that the media
will find the story newsworthy. Also, they might change the press release around
so that it does not help the organization in any way. One product that received an
incredible amount of publicity was Viagra. Sometimes, a film – especially one that
is controversial – can generate a great deal of publicity.
Public relation/ Publicity
Meaning
Recently in the marketing world, the terms “publicity” and “public relations” are
often thought of and discussed in the same breath. These terms are also often used
interchangeably. However, they shouldn’t be. They are in fact quite different – a
difference many people do not fully understand. KPS|3 would like to shed some
light on this mystery.
Publicity is simply just one arrow in the quiver that is public relations. Publicity is
the effort to garner media coverage or exposure about a brand, product, event, etc.
Its focus is narrow. Public relations, on the other hand, is the higher level
development of an over-arching strategy for furthering a marketing or
communications goal of an organization. It is often associated with the term
“reputation management.”
It is true that publicity is a tool that PR professionals can use, but it is only a single
tool. If your PR firm is limited to just creating publicity, then you do not truly have
a PR firm.
Other aspects of PR (beyond publicity) might include: community outreach,
corporate social responsibility programming and sponsorships, government
relations, grassroots communications and engagement efforts, “public”
presentations and other tools used to position the organization as thought leaders,
new media tactics, and many more.
Public Relations objective Include:
1. Press relations.
2. Product promotions.
3. Internal and external corporate communications.
4. Lobbying to promote, defeat, or circumvent legislation and regulations.
5. Advising management about public issues and company positions and
image.
Publicity:
The generation of information by a company to the news media; has a narrower
focus than public relations.
Public Relations Tools Are:
*Press release
*Video news releases (VNRs) „ Press conference
*Exclusives
*Interviews
*Community involvement - sponsor events „ Company newsletter
Strategies of Public Relations
Credibility
Low cost
Breaks through the clutter
Image building
PR Vs Publicity
Publicity is the act of getting ink. Publicity is getting unpaid media to pay attention
PR is the strategic crafting of your story. It's the focused examination of your
interactions and tactics and products and pricing that, when combined, determine
what and how people talk about you.
If you send out a boring press release, your publicity effort will probably fail, but
your PR already has.
A publicity firm will tell you stories of how they got a client ink. A PR firm will
talk about storytelling and being remarkable and spreading the word. They might
even suggest you don't bother getting ink or issuing press releases.
MODULE VI
Monitoring, Evaluation and Control
Measure Ad Effectiveness
Avoid costly mistakes
Evaluate alternative strategies
Increase efficiency of advertising in general
Reasons Not to Measure Effectiveness
Cost of measurement
Problems with research
Disagreement about what to test
Objections of creative personnel
Lack of time
Methods used for evaluation
Source factors
Message variables
Media strategies
Budget decisions
Pre-testing
Post-testing
Laboratory tests
Field tests
Testing guidelines
Appropriate tests
Pretest measurements
The pre tests are done before he campaign is implemented
Pretesting may occur at a number of points, from as early on as idea
generation or rough execution to testing the final version before
implemented.
Pretesting
1] Laboratory Methods
Consumer juries
Portfolio tests
Physiological measures
Theater tests
Rough tests
Concept tests
Reliability tests
Comprehension tests
Reaction tests
2] Field Methods
Dummy ad vehicles
On-air tests
1. Laboratory methods
Under this method people are brought to a particular location where they are
shown ads and /or commercials.
The major advantage of this is control. Changes in copy formats, colors etc.
can be done easily with inexpensive.
The major disadvantage of this is the lack of realitism
2. Field methods
Under field tests the testes of ad or commercial is tested under natural
viewing situations, complete with realism of noise, distractions and the
comforts of home.
The testing process
1. Concept generalization research (focus groups)
Portfolio tests,
Analysis of readability and
Dummy advertising vehicles.
The methods used in broad cast media include
Theater tests,
On air tests.
a. Portfolio tests
Problems with portfolio tests
Factors other than advertising and presentation may effect recall
Interest in the product or product category
The fact that respondents know they are participated in a test
Interviewer instructions
b. Readability tests
This method eliminates the interviewer bias
Avoids gross errors in understanding
Norms offer an attractive standers for comparison
c. Dummy advertising vehicles
Here the recall, readership, and interest-generating capabilities of the ad are
addressed
It provides more natural setting than portfolio tests
One of the disadvantage is testing effect is not eliminated, and product
interest still bias the results.
Pretesting finished broadcast ads
Methods used
Theater tests
On air- tests
And physiological measures
Theater tests
Participants vary from 250 to 600
In theater tests in addition to product/brand preference, the form may request other
information
before delivered and identified before large amounts of money spent on the
development.
The disadvantages of pretesting
The disadvantage is that mock-ups, story boards or animates may not
communicate nearly as an effectively the final product. The mood-enhancing
and /or emotional aspects of the message are very difficult to communicate
in this format.
Time delays- many marketers believe being first in the market offers them a
distinct advantage over competitors so that they forgo research to save time
and ensure this position.
Market testing of ads (post testing)
Posttest of print Ads
Inquiry tests (bingo cards)
Recognition tests
Recall tests
Inquiry tests
Used in both consumer and business to business market testing, these tests
are designed to measure advertising effectiveness on the basis of inquires
generated from ads appearing in various print media often referred as bingo
cards
The may take in the form of the number of coupons returned, phone calls
generated, direct enquires through reader cards.
Disadvantages: time constraints, lack of a need for product
Advantages: inexpensive to implement
Recognition tests
Disadvantages:
Limited samples
High costs
Security issues
May favor unemotional appeals because respondents are asked to verbalize
he message
Program content may influence the call
A prerecruited sample
Persuasive measures
A measure of commercial persuasive effectiveness is gathered by asking
consumers to choose a brand that they would want to win in drawing and then-
after expose they will ask again.
Diagnostics
The measure is designed to garner viewers’ evaluations of the ads, as well as how
creative is understood and how well the position is communicated rational and
emotional reactions to the ads are also examined
Test marketing
The markets are chosen are representative of the target market.
The various of factors are tested the effects of various budgets sizes, special
offers
The advantage is that realism
The disadvantage is that the cost and time, Fear of competitors may discover
and intervene in the research process
Single source tracking studies
Single source tracking methods track the behavior of consumers from the
television set to the super market.
Here the participants who are having a cable TV is selected and given a card,
to use when they are purchases is going.
Here the selected participants are divided in to two groups some will expose
the ad. And some other alternative ads are too sent to them.
Advantages: control and ability to measure directly the ad’s effects on sales.
MODULE VII
International, Internet, & Industrial Advertising
International Advertising
• Decisions involving advertising are those most often affected by cultural
differences among country markets.
• Consumers respond in terms of their culture, its style, feelings, value systems,
attitudes, beliefs, and perceptions.
• Advertising’s function is to interpret the qualities of products in terms of
consumer needs, wants, desires, and aspirations, the emotional appeals, symbols,
and persuasive approaches.
• Reconciling an international advertising campaign with the cultural uniqueness of
markets is the challenge confronting the international or global marketer.
Global environment in advertising:
1. Perform marketing research
2. Specify the goals of the communication
3. Develop the most effective message(s) for the market segments selected
4. Select effective media
5. Compose and secure a budget
6. Execute the campaign, and
7. Evaluate the campaign relative to the goals specified
Global Advertising and the Communications Process
The international communications process consists of the following seven steps:
1. An information source. An international marketing executive with a product
message to communicate.
2. Encoding. The message from the source converted into effective symbolism for
transmission to a receiver.
3. A message channel. The sales force and/or advertising media that convey the
encoded message to the intended receiver.
4. Decoding. The interpretation by the receiver of the symbolism transmitted from
the information source.
5. Receiver. Consumer action by those who receive the message and are the target
for the thought transmitted.
6. Feedback. Information about the effectiveness of the message that flows from
the receiver (the intended target) back to the information source for evaluation of
the effectiveness of the process.
7. Noise. Uncontrollable and unpredictable influences such as competitive
activities and confusion that detract from the process and affect any or all of the
other six steps.
International Communications Process
Legal Constraints
1. Advertising campaigns must comply with legal regulations around the world.
2. Comparative advertising is heavily regulated in other parts of the world.
each year more major marketers shift a larger portion of their promotional budget
to this medium.
Components:
1) Narrowly target an advertising message and,
2) Track user response to the advertiser’s message.
The Internet offers many advertising options with messages delivered through
websites or by email.
Advantages & Limitations:
Information available 24/7
Customers access at their convenience
Relatively cost effective
Target ability
Message can be timely
Ads can be interactive
Types:
Website Advertising - Advertising tied to a user’s visit to a website accounts for the
largest spending on Internet advertising. For marketers, website advertising offers
many options in terms.
Creative Types – Internet advertising allows for a large variety of creative types
including text-only, image-only, multimedia (e.g., video) and advanced interactive
(e.g., advertisement in the form of online games). Size – In addition to a large
number of creative types, Internet advertisements can be delivered in a number of
different sizes (measured in screen pixels) ranging from full screen to small square
The most popular Internet ad sizes include banner ads (468 x 60 pixels),
leaderboard (728 x 90 pixels) and skyscraper (160 x 600 pixels).
Placement – The delivery of an Internet advertisement can occur in many ways
including fixed placement in a certain website location (e.g., top of page),
processed placement where the ad is delivered based on user characteristics (e.g.,
entry of words in a search box, recognition of user via Internet tracking cookies),
or on a separate webpage where the user may not see the ad until they leave a site
or close their browser (e.g., pop-under).