lOMoARcPSD|480616

IMC-Lecture-Notes - Lecture notes All

Integrated Marketing Communications (University of Technology Sydney)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by An Nguyen ([email protected])
 lOMoARcPSD|480616

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

The marketing management process

1. Situation analysis
2. Objectives (marketing and communications)
3. Select the target market
4. Develop the marketing mix
5. Implement, evaluate and control

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

Integrated marketing communications

- A marketing communications planning concept
- Recognises the value of a comprehensive plan
- A plan that evaluates the strategic roles of several communications disciplines;
o Advertising
o Direct marketing
o Sales promotion

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

o Public relations
- Combines the disciplines to provide:
o Clarity
o Consistency
o Maximum communications impact
Model of the IMC planning process

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

IMC in the Marketing Process – Lecture 2

Advertising
- Any paid form of non-personal communication about an organisation, product,
service, or idea by an identified sponsor (e.g. Business firms, individuals, non-profit
organisations)
Advertising to consumer markets
- National advertising
o Done on a nationwide basis or in most regions of the country
- Retail/local advertising
o Encourage consumers to:
 Shop at a specific store
 Use a local service
 Patronise a particular establishment
- Primary versus selective-demand advertising
o Primary-demand – stimulates demand for the general product class or entire
industry
o Selective-demand – creates demand for a specific company’s brands
Advertising to business and professional markets
- Business-to-business advertising
o Targets individuals who buy or influence the purchase of industrial goods or
services for their companies
- Professional advertising
o Targets professionals, encouraging them to use a company’s product in their
business operations
- Trade advertising
o Targets marketing channel members, encouraging them to stock, promote,
and resell the manufacturer’s branded products to their customers

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)

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Marketing and promotions process model

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

a. Marketing strategy and analysis

o Opportunity analysis
 Favourable demand trends
 Customer needs and/or wants not being satisfied
 Where a firm could compete effectively
o Competitive analysis
 Other brand competition (direct) or other product competition
(indirect)
 Search for a competitive advantage
 Reactions of competitors to a company’s marketing and promotional
strategy
o Target market selection
 After evaluating marketing opportunities for products/services in
various markets, a company selects one or more as a target market
for which it will develop a marketing program
 Selecting target markets has implications for advertising and
promotional strategy and tactics
b. Target marketing process
1. Identify markets with unfulfilled needs
2. Determine market segmentation
3. Select market to target
4. Position through marketing strategies
c. Marketing planning program development
o Involves combining the various elements of the marketing mix into a cohesive
and effective marketing program
o All elements of the marketing mix must be consistent with one another and
must contribute to the overall IMC program
o Product decisions, pricing decisions, distribution decisions
o Promotional decisions
d. Pro
moti
on to

trade and target market (ie ultimate consumer)

o The marketing and promotions process model ends with promotion to:

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Target market (end or ultimate consumer – consumers or businesses),

and/or,
 Trade (resellers/channel members)

What is an IMC plan?

- Provides the framework for developing, implementing, and controlling the
organisation’s integrated marketing communications programs and activities

Participants in the IMC process

- Advertiser
- Ad agencies
o Creative agency or media agency
- Media
o Traditional or digital
o Paid, owner or earned
- Potential customer

 Advertiser/client

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

- 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

Typical full-service agency

organisation chart

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

- 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

Perspectives on Consumer Behaviour – Lecture 3

Consumer behaviour
- The process and activities people engage in when searching for, selecting,
purchasing, using, evaluating, and disposing of products and services so as to satisfy
their needs and desires

Consumer decision making

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Decision making, i.e. the consumer buying decision process

- Problem recognition
o Occurs when a buyer becomes aware of a difference between a desired state
and an actual condition
o May occur rapidly or slowly
- Information search
o Internal search – buyers search their memories for information about
products that might solve their problem
o External search – buyers seek information from outside sources
- Evaluation of alternatives
o Evoked set (or consideration set) – a group of brands that the buyer views as
alternatives for possible purchase
o Evaluative criteria – objective and subjective traits important to the buyer
o Framing the alternatives – marketers describe the alternatives and their
attributes in a certain manner, to make a particular characteristic appear
more important (especially to a consumer) and facilitate its recall from
memory

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

o Typical emotions that may portray each motivation

Informational motives Typical emotional state
Problem removal Anger  relief
Problem avoidance Fear  relaxation
Incomplete satisfaction Disappointment  optimism
Mixed approach – avoidance Guilt  peace of mind
Normal depletion Mild annoyance  convenience

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Transformational motives Typical emotional state

Sensory gratification Dull  elated
Intellectual stimulation Bored  excited
Social approval Apprehensive  flattered
- Perception
o The process through which we notice, attend to and interpret the objects,
messages and events – the stimuli – that we encounter in the world around
us
o The process by which an individual receives, selects, organises, and interprets
information to create a meaningful picture of the world
- Attitudes
o Learned predispositions to respond in a consistently favourable or
unfavourable manner with respect to an object
o It is a summary construct that represents an individual’s enduring evaluation
of, feelings about, and behavioural tendencies toward an object or idea
o ‘object’ – a brand, a company, another person, a retail store, an ad, etc.
- Integration
o The way product knowledge, meanings, and beliefs are combined to evaluate
two or more alternatives
o Analysis of this integration process focuses on decision rules (the strategies
used to decide among alternatives)
o Formal decision rules – deliberate evaluation of alternatives, attribute by
attribute
o Informal decision rules – heuristics are simplified rules; price-based
heuristics; buy least expensive brand or buy most expensive brand if you
believe high price equals high quality
 Promotion-based heuristics; choose the brand which gives me a deal
or reward of don’t choose the brand with a freebie because
something must be wrong with it
- Learning
o Consumer learning is the process by which individuals acquire the purchase
and consumption knowledge and experience they apply to future related
behaviour
o Behavioural learning theory:
 Classical conditioning

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Operant conditioning

o Cognitive learning theory:

 Cognitive processes like perception, formation of beliefs about
brands, attitude development and change, and integration are
important to understand decision-making regarding brand/product
purchases

External influences on consumer behaviour

- Culture
-

Subculture
- Social class
- Reference group
- Situational determinants

The target marketing process

1. Identify markets with unfulfilled needs
2. Determine market segmentation
3. Select market to target
4. Position through marketing strategies

Bases for segmentation

- Consumer
o Geographic
o Demographic
o Psychographic
o Behaviouristic
- Business
o Geographic
o Demographic
o Product type

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

o Buying situation (see below)

Profiling target audience

- Name
- Age
- Location
- Life status
- Occupation
- Income
- Connection with product

Lecture 4 – The Communication Process

The communications process

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

- The sender, or source, of a communication is the person or organisation that has

information to share. The source may be an individual or a non-personal entity, such
as the corporation or organisation itself
- The goal of the source is to put thoughts, ideas, or information into a symbolic form
that can be understood by the receiver

Basic model of communication

- Source: person or organisation that has information to share with another person or
group of people
- Encoding: putting thoughts, ideas, or information into a symbolic form
- Message: contains the information or meaning the source hopes to convey

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:

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Human communicators
- Verbal
o Vocabulary
o Grammar
o Inflection
- Nonverbal
o Gestures
o Facial expression
o Body language

Source attributes and receiver processing modes

Factors to consider when using celebrities

- Overshadowing the product
- Overexposure
- Audience receptivity
- Risk to the advertiser

Basic model of communication

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

- Channel: facilitates communication between sender and receiver

o Non-personal channel or mass media
 Lacks direct, interpersonal contact between the sender and receiver
o Personal channel – direct communication between two or more persons
 Word-of-mouth (WOM): informal communication among consumers
about products and services
 Buzz marketing: generating positive word-of-mouth discussion
- Receiver: person with whom the sender shares thoughts or information
- Decoding: transforming the sender’s message into thought
o Heavily influenced by the receiver’s field of experience
 Field of experience: the experiences, perceptions, attitudes, and
values a person brings to the communication situation
- Noise: unplanned distortion in the communication process
o Occurs because the fields of experience of the sender and receiver don’t
overlap
- Response: receiver’s set of
reactions after seeing,
hearing, or reading the
message
- Feedback: receiver’s
response that is
communicated back to
the sender

Models of the response process

What is the symbolic meaning of

this Levi ad?

The Model

The Clothes

The Setting

The Statement

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Examples of types of advertising and other forms of promotion relevant to various steps that
lead consumers to purchase/action

Methods of obtaining feedback in the response hierarchy

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Alternative response models

- Foote, Cone and Belding Grid

Developing promotional strategies

- Ad options based on the FCB grid
o Rational versus emotional appeals
o Increasing involvement levels
o Evaluation of a think-type product on the basis of feelings

Rossiter and Percy grid

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

A model of cognitive response

Elaboration
likelihood model
(ELM)

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

A framework for studying how advertising works

Lecture 5 – Objectives and Budgeting

Value of objectives
- Communications
o Objectives facilitate coordination of the various groups

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

- Planning and decision making

o Objectives guide decision making and development of the integrated
marketing communications plan
- Measurement and evaluation of results
o Objectives provide a benchmark to measure success or failure

Objectives should be SMARTT:

- Specific – clear, precise, directional
- Measurable – quantified measurement statement
- Achievable
- Realistic – appropriate in light of situation analysis
- Time-dependent – timeframe for achievement
- Targeted – defines the target market

Marketing vs. communications objectives

Sales-oriented objectives
- Aim to increase sales
- Require economic justification
- Required to produce quantifiable results
- Based on the
achievement of
sales results

Factors influencing sales

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Problems with sales objectives

- Successful implementation requires all marketing elements to work together
- Advertising has carryover effect
o Carryover effect: monies spent on advertising do not have immediate impact
on sales
- It is difficult to determine precise relationship between advertising and sales
- Do not offer much guidance for planning and developing promotional program

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)

Advertising and movement toward action

Communications effects pyramid

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Problems with communications objectives

- Translating sales goals into communications objectives
o Promotional planners have difficulty estimating what constitutes adequate
levels of awareness, knowledge, liking, preference, or conviction
o No formulas or guidelines

5 communication effects – Rossiter and Percy

Defining advertising goals for measured advertising results (DAGMAR)

- Communications effects are the logical basis for advertising goals and objectives to
measure success or failure
- Communications task
o Performed by and attributed to advertising rather than marketing factors,
includes following stages
 Awareness, comprehension, conviction, and action

Balancing objectives and budgets

Establishing a budget

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Sales response models

Top-down vs. bottom-up budgeting

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Establishing the promotional budget

- Managerial approaches:
o Top-down approaches:
 Affordable
 Arbitrary
 Percentage-sales
 Competitive parity
 ROI
o Build-up approaches
 Objective task
 Payout planning
 Quantitative models

Budgeting approaches: top-down approaches

- Affordable method:
o Firm determines the amount to be spent in various areas
- Arbitrary allocation:
o Budget is determined by management solely on the basis of what is felt to be
- Percentage-of-sales method:
o Advertising and promotions budget is based on sales of the product
- Competitive parity method:
o Budget amounts are established by matching the competition’s percentage-
of-sales expenditures
o Clipping service: clips competitors’ ads from local print media
- ROI budgeting method
o Advertising and promotions are considered investments, and are expected to
earn a certain return

Budgeting approaches: bottom-up approaches

- Objective task:
o Establish objectives; determine specific tasks; estimate costs associated with
tasks
- Payout planning:
o Determines the investment value of the advertising and promotion
appropriation; projects the revenues a product will generate, as well as the
costs it will incur
- Qualitative models:
o Employ computer simulation models involving statistical techniques
o Computer simulation
models: help
determine the relative
contribution of the
advertising budget to
sales

Factors considered in budget setting

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Factors influencing Australian promotional budgets

Lecture 6 – Creative Strategy

Advertising Creativity
 The ability to generate fresh, unique, and appropriate ideas that can be used as
solutions to communications

Planning Creative Strategy

 D’Arcy Masius Benton & Bowles’s – University Advertising Standards

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Perpetual Debate

Creative versus Hard-sell Advertising

Wallas’ Model of the Creative Process

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Young’s Model of the Creative Process

Inputs to the Creative Process

 Preparation, incubations, illumination

 Verification, Revision, Refining

Successful, Long-Running Campaigns

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Criteria for Effective Slogans

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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)

Creative Brief Outline

 Basic problem or issue the advertising must address
 Advertising and communications objectives
 Target audience
 Major selling idea or key benefits to communicate
 Creative strategy statement
 Supporting information and requirements

Appeals and Execution Style

 Advertising Appeals
o The approach used to attract the attention of consumers; and/or
o To influence consumer feelings toward the product, service or cause
 Execution Style
o The way a particular appeal is turned into an advertising message
o The way the message is presented to the consumer

Informational/Rational Appeals
 Focus on the consumer’s practical, functional, or utilitarian need for the product or
service

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Additional Types of Appeals

 Reminder advertising
o Builds brand awareness and/or helps keep brand name in front of consumers
 Teaser advertising
o Builds curiosity, interest, and/or excitement about a product or brand by
talking about it but not actually showing it
 User-generated content (UGC)
o Created by consumers rather than by the company and/or its agency

Ad Execution Techniques
 Straight-sell or factual message
 Science/technical evidence
 Demonstration
 Comparison
 Testimonial
 Animation
 Personality
 Fantasy
 Dramatization
 Humour

The Three Phases of Production for Commercials

Print Ad Components

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 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

 Format - Arrangement of the elements on the printed page

 Size - Expressed in columns, column inches or portions of a page
 Colour - Black and white, or two-, three-, or four-colour printing
 White Space - Marginal and intermediate space on the page that remains unprinted

Criteria for Valuating Creative Approaches

 Is the creative approach consistent with the brand's marketing and advertising
objectives?
 Is the creative approach consistent with the creative strategy and objectives? Does it
communicate what it is supposed to?
 Is the creative approach appropriate for the target audience?
 Does the creative approach communicate a clear and convincing message to the
customer?
 Does the creative execution overwhelm the message?
 Is the creative approach appropriate for the media environment in which it is likely
to be seen?
 Is the advertisement truthful and tasteful?
Lecture 7 – Media Planning & Strategy

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Media Strategy
 Media Selection Decisions
o Where to advertise
 Media Scheduling Decisions
o How long/often to advertise

Media Terms and Concepts

 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 organise a media plan
 Media strategies  plans of action designed to attain the media objectives
 Medium  general category of available delivery systems
 Media vehicle  specific carrier within a medium category
 Reach  measure of the number of different audience members exposed at least
once to a media vehicle in a given period of time
 Coverage potential audience that might receiver the message through a vehicle
 Frequency  number of times the receiver is exposed to the media vehicle in a
specified period

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

The Job of Media Planning

 The job of media planning is to deliver the advertising message:
o To the right target audience
o At the right time and place
o In the right quantity
o At an effective cost

Developing the Media Plan

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Problems in Media Planning

 Insufficient information
o Periodic studies, ratings periods, etc.
o Inconsistent terminologies
o Time pressures
o Difficulty measuring effectiveness

Developing the Media Plan

Internal and External Factors Influencing Media Strategies

 Internal factors
o Size of the media budget
o Managerial and administrative capabilities
o Organisation of the agency
 External factors
o Rising costs of media
o Changes in technology
o Competitive factors

Criteria Considered in the Development of Media Plans

i. The media mix
ii. Target market coverage
iii. Geographic coverage
iv. Scheduling
v. Reach and frequency
vi. Recency
vii. Creative aspects and mood
viii. Flexibility
ix. Budget considerations

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

ii. Target Market Coverage

 Matches the most appropriate media to a market
 Goal – Extend media coverage to members of the target audience while minimising
waste coverage
o Waste coverage: Media coverage that reaches people who are not potential
buyers and/or users

iii. Geographic Coverage

iv. Scheduling
 Timing promotional efforts such that they coincide with the highest potential
buying times
 Methods
o Continuity: Regular pattern of advertising without gaps or non-advertising
periods
o Flighting: Involves intermittent periods of advertising and non-advertising
o Pulsing: Maintains continuity, but promotional efforts are stepped up at
times
 Three Scheduling Methods

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Media Schedule – Example

 Characteristics of Scheduling Methods

v. Reach and Frequency

 Reach  the number of different audience members exposed at least once to a
media vehicle in a given period of time
 Frequency  the number of times the receiver is exposed to the media vehicle in
a specified period
 Representation of Reach and Frequency

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 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

 Factors Important in Determining Frequency Levels

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 What we’re willing and able to spend vs what we need to achieve our objectives

Evaluation and Follow-Up

Lecture 8 – Advertising (Broadcast, Print and Support)

Main Issues
 Broadcast Media
o TV
o Radio
 Print Media
o Newspaper
o Magazines
 Support Media

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

The Promotional/IMC Mix

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 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

Out-of-Home Advertising Media

Alternative Out-of-Home Media

 Aerial Advertising
 Mobile Billboards
 In-Store Media

Types of Transit Advertising

 Inside cards
 Outside posters
 Station, platform and terminal posters

Outdoor Advertising
 Advantages:

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

o Wide coverage of local markets

o Frequency and Geographic flexibility
o Creativity
o Ability to create awareness
o Efficiency and effectiveness
o Production capabilities
o Timeliness
 Disadvantages
o Waste coverage
o Limited message capabilities
o Wearout
o Cost
o Measurement problems
o Image problems

Transit Advertising
 Advantages
o Exposure
o Frequency
o Cost
 Disadvantages
o Reach
o Mood of the audience

Promotional Products Marketing

The advertising or promotional medium or method that uses promotional products,
such as ad specialties, premiums, business gifts, awards, prizes, or commemoratives.
 Advantages of Promotional Products Marketing
o Selectivity
o Flexibility
o Frequency
o Cost
o Goodwill
o High recall
o Supplementing other media
 Disadvantages of Promotional Products Marketing
o Image
o Saturation
o Lead time
o Reach

Yellow Pages
 Advantages
o Wide availability
o Action-oriented ads
o Cost

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

o High frequency of exposure

o Non-intrusive
 Disadvantages
o Highly fragmented markets
o Timeliness
o Lack of creativity
o Long lead times
o Clutter
o Size requirements

Movie Theatre Advertising

 Advantages
o Exposure
o Emotional attachment
o Cost
o Attention
o Clutter
o Proximity
o Segmentation
o Integration
 Disadvantages
o Irritation
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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Lecture 9 – Direct Marketing, Internet & Interactive Media and

Sales Promotion
Main Issues
 Direct Marketing
 Internet & Interactive Marketing
 Sales Promotion

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:

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Direct Marketing Media

 Direct mail
 Catalogues
 Broadcast media
 TV Spots
 Infomercials
 Home shopping
 Print media
 Telemarketing
 Electronic Teleshopping

Growth of Direct Marketing

 Consumer Credit Cards
o Billions of credit cards issued
 Direct Marketing Syndicates
o List development
o Statement insets
o Catalogues
o Sweepstakes
 Changing Structure of Society & Market
o Money-rich
o Time-poor
 Technical Advances
o Cheaper communications
o Rapid package delivery systems
 Miscellaneous factors

Australian eMarketing Code of Practice (September 2006)

The Code provides detail on the following key areas relating to the sending of commercial
electronic messages in an email and mobile marketing environment in Australia:
 Obtaining and maintaining consent;
 Keeping records of consent;
 Obligations in relation to viral marketing campaigns;
 Inclusion of accurate information about senders/message authorisers;
 Provision and operation of a functional unsubscribe facility;
 Sending commercial electronic messages about age sensitive material;
The objectives of the Code are to:
 Reduce the incidence of unsolicited commercial electronic messages received by
consumers;
 Provide a plain English application of the provisions of the Spam Act 2003 to current
eMarketing practices, and
 Promote best practice use of commercial electronic messaging in compliance with
the Spam Act 2003

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 http://www.adma.com.au/assets/Uploads/Comply-Documents/ADMA-Code-of-
Practice3.pdf

Direct Marketing Objectives

 To seek a behavioural response
 To build an image
 To maintain customer satisfaction
 To inform and/or educate customers in an attempt to lead to future actions

Advantages of Direct Marketing

 Selective reach
 Segmentation capability
 Frequency potential
 Testing
 Timing
 Personalisation
 Costs
 Measurement of effectiveness

Disadvantages of Direct Marketing

 Image Factors
 Accuracy
 Content Support
 Rising Costs
 Do Not Contact Lists

The Internet and Interactive Media

Allows for a 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
 80% of Australians use the internet every month
 The average Aussie is online for over 40 hours a month across over 50 individual
sessions
 There are more mobile contracts than people in this country (i.e. 23 million)
 10 million Australians visit Facebook each month and they spend on average 7 hours
a month of the site

Reasons for Rapid Adoption of the Internet

 Increased desire for information
 Speed and convenience
 Ability to control the flow of information being received
 Ability to conduct e-commerce
o E- commerce: Direct selling of goods and service on the internet
 Ability to target customers effectively
 Increased accountability of businesses

Internet Communications Objectives

 Create awareness

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Generate interest
 Disseminate information
 Create an image
 Create a strong brand
 Stimulate trial
 Create buzz
 Gain consideration

Owned, Paid, Earned Media

 Owned media  a media channel that a brand owns such as their website, mobile
site, blog or twitter account
 Paid media  the most traditional style of advertising, paid media is when a brand
pays to leverage a channel such as display ads, paid search or sponsorships
 Earned media  is when consumers become the media talking (WOM). Earned
media is often the result of well-executed and well-coordinated owned and paid
media.

Advertising on the Internet – Web 1.0

 Banner ads
o Create awareness or recognition
o Used to seek entry into contests and sweepstakes
o Fulfill direct-marketing objectives
 Sponsorships: Form of advertising
o Regular sponsorship – company pays to sponsor a section of a site
o Content sponsorship – sponsor not only provides money in return for name
associate but also participates in providing the content itself
 Pop-ups
o Ads that appear when certain sites are accessed
 Pop-unders
o Ads that appear underneath the webpage and become visible only when user
leaves the site
 Interstitials
o Ads that appear on screen while waiting for a site’s content to download

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Web 2.0 Is a Multifaceted Version of the Internet

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Types of New Media

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

Marketer’s Reasons for Using Social Media

 Driving traffic to one’s site
 Communicating with customers
 Gaining brand exposure

The Big Four:

1) Facebook
o Allows advertising that targets subsets of Facebook users
 Based on demographic and geographic date and interests and
activities
o Used to:

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Create and push content

 Help manage reputation
2) Twitter
o Enables users to send and receive text-based messages up to 140 characters
o Benefits:
 Best channel for direct communication with customers
 Easy and cost-effective way to gain brand exposure
 Good ability to drive traffic directly to a site
o Used to:
 Respond to customer complaints and/or inquiries
 Re-tweet important information
 Monitor the market for opportunities or threats
3) Google+
o Allows users to:
 Develop own profile
 Control profile appearance across the entire Google network
o Allows for the development of a community
o Facilitates communication with customers
o Offers excellent brand exposure
4) YouTube
o Hosts content for information and entertainment
o Users can upload and share their own videos and those placed by others
o Used as an advertising medium or search platform by marketers

Additional Social Media

 Instagram
o Online photo-sharing and social networking site
o Allows users to post and edit pictures and share them on a variety of social
networks
 Pinterest
o Pinboard-style photo sharing website
o Allows users to create and manage theme-based images
 LinkedIn
o Used by marketers to connect to customers with specific interests that may
be related to their brand

Podcasting, RSS, and Blogs

 Podcasting
o Uses the internet to distribute audio/video files
 Really Simple Syndication (RSS)
o Specification that used XML to organise and format web-based content in a
standard way
 Blog
o Web-based publication consisting primarily of periodic articles
o Presented in reverse chronological order

Other 2.0 Media Forms

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Augmented reality apps

 QR codes: Barcodes used in print ads
 Near field communication (NFC)
o Delivers content through an embedded chip that allows wireless
communications just by touching the material
o Copy of a real world environment whose elements are augmented
(supplemented) by computer sensory input QR codes add after ads that when
scanned provide additional content or take scanner to website; take out print
(appear in other places as well)
o May replace QR codes

Mobile
 Has significant impact on companies’ IMC programs
 Rapid growth and adoption by consumers is making marketers realise their potential
in a marketing context

Audience Measures and Measures of Effectiveness

 Internet-specific measures
o Allows measures to be taken in real time
o Includes audience measures specific to the Internet and interactive industry
 Traditional measures
o Recall and retention
o Surveys
o Sales
o Tracking
o ROI

Examples of Internet Metrics

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Reasons for the Increase in Sales Promotion

 Growing power of retailers and declining brand loyalty
 Increased promotional sensitivity
 Brand proliferation
 Fragmentation of the consumer market

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Short-term focus and increased accountability

 Competition and clutter
 Growth of digital marketing

Consumer-Oriented Promotion
 Samples
 Coupons
 Premiums
 Contexts/sweepstakes
 Refunds/rebates
 Bonus packs
 Price-offs
 Loyalty programs
 Event marketing

Objectives of Consumer-Oriented Sales Promotion

 Obtaining trial and repurchase
 Increasing consumption of an established brand
 Defending current customers
 Targeting a specific market segment
 Enhancing integrated marketing communications
 Building brand equity

Trade-Oriented Sales Promotion

 Contests and dealer incentives
 Trade allowances
 Point-of-purchase displays
 Training programs
 Trade shows
 Cooperative advertising

Objectives of Trade-Oriented Sales Promotions

 Obtain distribution for new products
 Maintain trade support for established brands
 Encourage retailers to display established brands
 Build retail inventories

Lecture 10 – Public Relations/Publicity and Personal Selling

Main Issues
 Public Relations
 Publicity
 Personal Selling

Promotional Mix

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Public Relations and Publicity

Is a management function which manages and controls a program of action to earn public
understanding & acceptance

Role of PR

Public Relations Audiences

 Employees of the firm
 Stockholders and investors
 Community members
 Suppliers and customers
 Print and broadcast media
 Educators
 Civic and business organisations
 Governments
 Financial groups

Public Relations are Either:

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 Proactive  Product releases, statement releases, feature articles

 Reactive  responding to defects, failures, product tampering, etc.

Rumours and Urban Myths

 Commercial rumours
 Troublesome because they can spread quickly and state something undesirable
 E.g. Coca Cola, McDonald’s

Marketing Public Relations (MPR) Functions

 Building marketplace excitement before media advertising breaks
 Improving ROI
 Creating advertising news where this is no product news
 Introduce a product with little to no advertising
 Providing a value-added customer service
 Building brand-to-customer bonds
 Influencing the influential (i.e. providing information to opinion leaders)
 Defending products at risk and giving customers a reason to buy

Public Relations Tools

 Press releases
 Press conferences
 Exclusives
 Interviews
 Community involvement
 The internet

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

Advantages and Disadvantages of Public Relations:

 Advantages:
o Credibility
o Cost
o Avoidance of clutter
o Lead generation
o Ability to reach specific groups
o Image building
 Disadvantages:
o Not completing the communication process
o Co-ordination with marketing effort

Criteria for Measuring the Effectiveness of PR

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Publicity
Non-personal communications regarding an organisation, product, service, or idea that is
not directly paid for or run under identified sponsorship

Advantages and Disadvantages of Public Relations:

 Advantages:
o Substantial Credibility
o News Value
o Significant Word-of-Mouth
o Perception of Endorsement by media
 Disadvantages:
o Lack of Control
o Timing
o Inaccuracy, omission, or distortion may result

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

Personal Selling Responsibilities

o Locating prospective customers
o Determining customers’ needs and wants
o Recommending a way to satisfy them
o Demonstrating capabilities of the product
o Closing the sale
o Following up and servicing the account

Advantages and Disadvantages of Public Relations:

 Advantages:
o Two-way interaction with prospect
o Message can be tailored to recipient
o Prospect isn’t likely to be distracted
o Seller involved in purchase decision
o Source of research information

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

 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

Synergistic Effect of IMC

o Synergy: Where the total effect is greater than the sum of its parts
o 1+1 = 3

Lecture 11 – Campaign Effectiveness & Issues in Advertising

Main Issues
 Advertising Research
 Campaign Evaluation
 International Advertising
 Advertising Ethics

Marketing Research
 Information to aid decision making
 Advertising research is a specialised form of marketing research conducted to
improve the efficiency of advertising

The Research Process

1. Definition of the problem
2. Research design formulation
3. Field work or data collection
4. Data preparation and analysis
5. Report preparation and presentation

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

o Internet Usage – Nielsen

o Single Source Survey – Roy Morgan Research
o Roy Morgan and AC Nielsen conduct TV research but are not recognised as
the “currency” in Australia

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

o Field Methods
 Recall tests
 Association measures
 Single-sources systems
 Inquiry tests
 Recognition tests
 Tracking studies

Attitudes to Advertising – Results

International Advertising
The Major International Advertising Decisions

The International Environment

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

The Big Question…

 Should the global marketer offer the same product, marketing, and advertising
throughout the world?
OR
 Should the global marketer adapt the product, marketing, and advertising to each of
several societies throughout the world?

Advantages of Global Marketing

 Economies of scale in product, distribution
 Lower costs with less in planning and control
 Lower advertising and production costs
 Ability to exploit good ideas worldwide
 Ability to introduce products quickly, worldwide
 Consistent international brand, company identity
 Simplification or coordination and control

When is Globalisation Appropriate?

 Brands can be adopted for a visual appeal, avoiding the problems of trying to
translate words into dozens of languages
 Brands that are promoted with image campaigns that play to universal appeals such
as sex or wealth
 High-tech products and new products coming into the world for the first time, not
steeped in cultural heritage of the country
 Products with a nationalistic flavour if the country has a reputation in the field
 Products that appeal to a market segment with universally similar tests, interests,
needs and values

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

Foreign Local Agencies

 Staffed with local talent who understand local attitudes, culture, media and
conditions
 Especially effective for launching consumer products in a single, new geographic area
 Poses some problems if a product is to be launched in multiple, local, foreign
markets

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Advertising Ethics
Ethics  Moral principles and values that govern the actions and decisions of an individual
or group

Why Ethical Advertising?

 Not to hurt sentiments of the society
 Maintain a code of conduct
 Avoid misrepresentation
 Adhere with social norms
 Social acceptance
 Helps in image building

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

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Issues Attracting Complaint

 Portrayal of people
 Portrayal of sex/sexuality/nudity
 Violence
 Health & Safety
 Use of language
 Concern for children

Media Attracting Complaint

 Television
 Print
 Outdoor
 Radio
 Cinema
 Pay TV
 Multimedia

Fostering Ethical Marketing Communications

Foster ethical marketing communications behaviour by:
1) Act in a way that you would want others to act toward you – Golden Rule test
2) Take only actions that would be viewed as proper by professional colleagues –
professional ethic test
3) “Would I feel comfortable explaining this action on TV to the general public?” – TV
test

David Ogilvy’s Golden Rule Do not run ads that would wouldn’t want your mother to see

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

Integrated Marketing Communications

 A marketing communications planning concept
 Recognises the value of a comprehensive plan
 A plan that evaluates the strategic roles of several communications disciplines:
o Advertising
o Direct marketing
o Sales promotion
o Public relations
 Combines the disciplines to provide:
o Clarity
o Consistency
o Maximum communications impact

Advertising  Any paid form of non-personal communication about an organisation,

product, service or idea by an identified sponsor
Direct Marketing  Whereby organisations communicate directly with target customers to
generate a response and/or a transaction
Interactive/Internet Marketing  Allows for a back-and-forth flow of information whereby
users can participate in & modify the form and content of the information they receive in
real time
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
Publicity  Non-personal communications regarding an organisation, product, service or
idea that is not directly paid for or run under identified sponsorship
Public Relations  Is a management function which manages and controls a program of
action to earn public understanding and acceptance
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

IMC Planning Model

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

The IMC Plan

 Provides the framework for developing, implementing, and controlling the
organisation’s integrated marketing communications programs and activities
 Structure
o Introduction
o Situation Analysis:
 Market
 Environment
 Company
 Customer
 Competitor
 SWOT Analysis
o Objectives
o Budget
o Target Audience
o Communication Strategy
o Creative Strategy
o Media Planning
o Media Strategy
o Campaign Research & Evaluation
o Conclusion
o Appendix

Participants in the Advertising Process

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

The Communications Process

Models of the Response Process

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Advertising and Movement Toward Action

Top-Down versus Bottom-Up Budgeting

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

Advertising Creativity  The ability to generate fresh, unique and appropriate ideas that can
be used as solutions to communications problems

Copy Platform Outline

1) Basic Problem or issue the advertising must address
2) Advertising and communications objectives
3) Target audience
4) Major selling idea or key benefits to communicate
5) Creative strategy statement (campaign theme, appeal, execution technique)
6) Supporting information and requirements

Criteria Considered in the Development of Media Plans

 The media mix
 Target market coverage
 Geographic coverage
 Scheduling
 Reach versus frequency
 Creative aspects and mood
 Flexibility
 Budget considerations

The Promotional Mix

Advertising
 Broadcast Media
 Print Media
 Support Media

Ad Testing Factors
 What to test
o Source factors
o Message variables
o Media strategies

Downloaded by An Nguyen ([email protected])

 lOMoARcPSD|480616

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

International Advertising: The Big Question…

 Should the global marketer offer the same product, marketing and advertising
throughout the world?
OR
 Should the global marketer adapt the product, marketing and advertising to each of
several societies throughout the world?

Self-Regulation
 Self-Regulation by…
o Advertisers and agencies
o Trade/industry associations
o Media
o Advertising standards bureau

Downloaded by An Nguyen ([email protected])