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Integrated Marketing Communication

Assignment 1
Submitted by: Meghala Selvaraj 1CR09MBA30 MBA IV Sem - Marketing

1. Explain differences amongst advertising, promotion, communication and IMC. Advertising and promotion are two marketing tools and they are both used in the modern marketing. At first sight it is very hard to see the exact difference between advertising and promotion. Both advertising and promotion use the same techniques and the gained results are basically the same. However, there are a few things that highlight the difference between advertising and promotion. These differences are the following:

amount of time spent ( advertising need more time for results, while promotions have instant effects ) impact on overall sales ( advertising can produce greater profits, promotion lower profits ) overall costs general purpose company type

The advertising techniques are often used by middle level and large level companies. The goals of these companies are the strengthening of their brand and the building of long term sales. The most popular types of advertising are the television and radio adverts, national or local press advertisements, large billboards and posters. The main power of advertising is creating strong brands and making long term sales. Beside the long term sales advertising also helps to improve short term and middle term sales too. Building and the strengthening of the consumer loyalty is the ultimate goal of advertising. After starting an advertising campaign we must wait a longer period of time before we can see any substantial results. This time period can be from months to even years. Because of this time frame and the high initial costs, advertising is suitable for large companies and corporations only. On contrary to advertising, promotion is more focused towards the short term results. Although promotion is also participating in the process of brand building this is not its goal. The only major goal of the promotion is to build the sales in the short time period. The most popular ways of promotion are the discount coupons in the local press, two for one special promotion, free product samples and other special events held in stores. The creation of promotions is very easy and they can result in very good short term gains. The cost of the promotion is significantly lower than advertising and because of this fact promotions are more suitable for small companies. The cost efficiency and the required time frame do not exclude medium companies or large companies to organize promotions. On the contrary, medium and large corporations also set up promotions; the everyday example is the daily or weekly product promotions in large national store chains.

Of course, there is a number of similarities in advertising and promotions. These two marketing tools are sometimes support each other and it is not rare that advertising campaigns use promotions too. During advertising campaigns, promotions are used to make the overall success of the campaign greater. Integrated Marketing Communications:A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. Normal Marketing: Normal flow is the way that elements are displayed in a Web page in most circumstances. Having a Internet marketing strategy gives you a measurable and definitive way to target your market and position your business so that those looking for what you have to offer are finding you easily. This is only the first level of the sales process, but it is vital to the success of your online business, but remember traffic marketing is not sales.

2. Explain the importance of IMC. Importance of IMC There have been many shifts in the advertising and media industry that have caused IMC to develop into a primary strategy for most advertisers 7 main shifts From media advertising to multiple forms of communication (including promotions, product placements, mailers...) From mass media to more specialized media, which are centered around specific target audiences. From a manufacturer-dominated market to a retailer-dominated market. The market control has transfered into the consumer's hands. From general-focus advertising and marketing to data-based marketing. From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before. From traditional compensation to performance-based compensation. This encourages people to do better because they are rewarded for the increase in sales or benefits they cause to the company. From limited Internet access to widespread Internet availability. This means that people can not only have access to what they want 24/7 but that advertisers can also target different people 24 hours a day.

3. Explain the media planning process in details.

Media Planning Process Situation analysis * Strategy & targets (business/brand/consumer) * Market situation and competition analysis * Marketing and media objectives

Objectives * Definition of communication objectives * cognitive-oriented objectives (awareness, recall) * affective-oriented objectives (interest, brand positioning, brand development, brand management) * cognitive-oriented objectives (purchase intentions, customer loyalty)

Target group analysis * target group identification: two-step segmentation process * definition of core target groups based on - demographic characteristics (age, gender) - psychographic characteristics (interests, buying habits) - socioeconomic characteristics (occupation, social status, income, buying power) - behavioural characteristics (buying behaviour, decision behaviour)

Strategic media planning * Campaign strategy (duration, timing, recency /burst strategy) * Media mix and budgeting * Advertising impact * Ad specials

Detail planning/Optimization

* Detail planning for each media channel * Availability * Dates of publication * Selection of time slots * Positioning within the magazine or commercial break

Purchasing * Booking (order management, production plans) * Job handling (artwork, tapes) * Rescheduling/Optimization

Completion * Controlling, documentation * Invoicing

Evaluation/Controlling * Campaign performance (expost analysis) * Planning, purchasing efficiency * Competition reporting

Negotiations/Discounts * Special conditions, performance optimization * Client-specific agreements Steps to Media Planning Every media plan begins with target audience. The target audience can be classified in terms of age, sex, income, education, occupation and other variables. The audience can also be classified as children teenagers, young adults, office goers, newly married couples, parents, grandparents, etc. i.e. DECIDING ON TARGET MARKETS The classification of the target audience helps the media planner to understand the media consumption habits, and accordingly choose the most appropriate media or media-mix The media planner can also select the most appropriate programme (in case of radio and TV) to insert advertisement. Matching media and market Advertisers must always attempt to match the profile of the target market with the demographic characteristics of a given mediums audience. Let us consider an example of cigarette advertising. The target market for this is men in the age group of 25 to 60 years. The

advertiser would consider placing ads in magazines having a predominantly male readership. Advertising in magazines having a predominantly female readership would be mostly wasteful for this product. It may be true that rarely does any magazine have a 100 percent male readership. Even so, when selecting a predominantly mens magazine, the advertiser would minimize wasteful expenditure, Some media, such as general interest consumer magazines and newspapers, network radio and television offer to an advertiser the means of transmitting ad messages to a cross-section of the consumer market. Against this, some other media, such as spot radio and television, special interest magazines, business publications, and some business newspapers offer the means of reaching selective group of audience. The selectivity offered by some media is useful for advertisers, for it enables them to reach a distinct target market with minimum waste. In fact, a great deal of information on the media about their demographic characteristics is provided by the media themselves. The objective of any media planner is to achieve the best possible matching of the media and the market. DECIDING ON MEDIA OBJECTIVES: The media planner has to decide on the media objectives. Media objectives often are stated in terms of reach, frequency, gross rating points and continuity. Media objectives You can contribute most to the media process in the definition of objectives (what you want the plan to accomplish). Before media planning can start, companies have to define the marketing objectives of the product/ idea proposed to be advertised. For example, if a professional camera manufacturer decides to launch an automatic camera to expand his market, his marketing objective would be to reach those segments of the population who are photo enthusiasts but do not want to be hassled by the intricacies of operation of professional cameras, the fun loving people who want to capture moments of joy and togetherness. The manufacturer may also target the existing professional camera users to consider a replacement in order to have the pleasure of an automatic camera, which obviously will be faster, having mastered the manual one. The marketing objective, hence, would be to extend distribution into new geographic markets or income groups as also the current users of cameras The following could be the media objectives

To reach photo enthusiasts of that age and income group who are the chief purchasers. To concentrate the greatest weight in urban areas where the target audience would normally be found and where new ideas gain a quicker response. To provide advertising support at a consistent level except when it needs extra weight during announcements and the holiday season, when such target buyers are planning to visit exotic places or to meet their kith and kin.

To select those media, which will help strengthen the creative strategy and help demonstrate convenience, ease of shooting and, of course, excellent results. The Hot Shot camera with theKhatak sound became an instant success with the photo enthusiasts in the late eighties in India. To reach target buyers through those media to gain greater frequency and lesser cost per opportunity

Media objectives are built around answers to five questions: who, when, where, how often, and in what way? MEDIA EVALUATION After the objectives are defined there is a need to evaluate each media in order to reach a conclusion about the type of media that will be most effective for the accomplishment of the objectives. The objects of the evaluation are:

To see which media are feasible. To pick the main medium. To prepare for the decision on how it should be used. To see whether there are suitable supporting media if required.

Creative suitability: There may be obvious reasons why a particular medium is especially suitable for the campaign or another is unsuitable, a coupon is to be included or the absence of colour is critical. Often the preference of the creative group is not backed up by concrete evidence but they have strong views nevertheless about the media to use and those not to use. The agency is not in the business of reaching consumers with exposures of advertisements (which tend to be the media departments natural criterion), but in the business of selling the product. So if the creative choice looks at all reasonable in media terms, it is usually sensible for the planning to accept it. Sometimes the creative choice is unreasonable and may have been reached without full consideration of the alternatives. An idea: Sometimes a media idea, or better an idea which involves media and creative content, is obviously right or simply a novelty, which is expected to attract attention and so work. A press advertisement in the shape of the product, using publications that have never before carried this type of advertising, a radio commercial announcing officially there is now no shortage of the product, a TV commercial that starts with silence and black screen, a poster

that looks like a shop window and so on. Sometimes a change is as good as an increased budget. Proven effectiveness: When there is evidence that a particular medium is the most efficient, the choice is obvious. The evidence may come from the tests on our own product or from a study of competitors activities. The advertiser often insists on using the same medium as before, even without testing its effectiveness. The best predictor of an advertising schedule is the schedule for the previous year. This is not always laziness. It is partly because the media scene is not very different from year to year: media change is dictated by a major shift in the market place, a new medium, a new definition of the target, or a new advertising idea. Advertisers resist change because it involves more risk than to continue with a proven, viable strategy. Availability and timing: The type of product or copy claim may prevent the use of a medium- this is most likely to rule out TV, on which, for example cigarettes are not advertised. The flexibility required by the advertiser, for example being able to cancel or change advertising at a few days notice, may also rule out a medium-for example it may make colour press impossible. Competition: We cant come off the box, thats where our competitors are. Look, theres no advertising for this product in womens magazines: lets dominate there. Of the two policies- match the competition or avoid it- the first is more common in media choice. This may be because the main purpose of the advertising is defensive- to reassure existing buyers and reassure existing buyers and diffuse competitors attacks. It may also be a fear of leaving him to dominate a medium. Or the medium normally chosen is simply the most suitable for that product group. Or the consumer and the trade have come to expect the advertising to be in that medium and look for it there, so it works best there.; on the same principle, shops often do better together in the High Street than scattered over the town. These arguments apply to large advertisers: McDougalls will not leave spillers to be the only large flour manufacturer on TV, nor Cadburys leave TV to Mars. But for the small budgets it could be inefficient to hit competition at knee-level. A small advertiser might do better to dominate a less used medium. CHOOSING AMONG MAJOR MEDIA TYPES:

The media planner has to know the capacity of the major media types to deliver reach, frequency, and impact. The major advertising media along with their costs, advantages, and limitations are to be well understood. Every media plan requires that specific media types be selected Doordarshan, Direct mail, satellite TV, newspapers, magazines, etc. Media planners must consider several variables before choosing among major types: Target audience media habits: This is the most important factor. Housewives watch more of television, whereas, working women go for magazines. Again television programmes have different viewers. For instance, world this week is viewed by teenagers and young adults. Therefore, it would be advisable to advertise during World this week such products which are of interest to teenagers and young adults. Radio and television are the most effective media for reaching teenagers. Products: Products that require demonstration can suit for television. For example, the demonstration of the use of a vacuum cleaner by Eureka Forbes. Financial advertising such as new issue of shares is good in newspapers. Women's dresses are best shown in color magazines, and Polaroid cameras a best demonstrated on television. Media types have different potentials for demonstration, visualization, explanation, believability, and color. Again there are media restrictions on certain products. For instance, alcoholic drinks and cigarettes cannot be advertised in press as well as on DD and AIR, hence these two options are totally ruled out. Message: The type of message dictates the type of media. For example, an ad that features technical information is best suited for specific magazines. Again, an ad from retailer announcing major sale on discount requires more of local newspapers. Cost Factor: Television is very expensive, whereas, radio is very economical. However, cost is not the only factor, even if it is calculated on the basis of cost per- person reached. The impact of the media is to be taken into account. SELECTING SPECIFIC MEDIA VEHICLES Once a decision is made on media types, specific media vehicles within each medium must be chosen. For instance, the media planner may take a decision to select only magazines. The question now appears in which magazines. There are several classes of magazines- General interest like Readers digest, Women Interest magazines like Femina, Savvy, Elle, Business

interest magazines like Business India, Business Today. If the decision is to select Business Interest Magazines- then the media planner may consider the following:

Business India Business World Fortune India Dalal Street Journal Business Today Advertising & Marketing

4. Explain the role of advertising agency in creating and designing an advertisement. Professionals at advertising agencies and other advertising organizations offer a number of functions including:

Account Management Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the account manager works closely with the client to develop an advertising strategy. For very large clients, such as large consumer products companies, an advertising agency may assign an account manager to work full-time with only one client and, possibly, with only one of the clients product lines. For smaller accounts an account manager may simultaneously manage several different, though non-competing, accounts. Creative Team The principle role of account managers is to manage the overall advertising campaign for a client, which often includes delegating selective tasks to specialists. For large accounts one task account managers routinely delegate involves generating ideas, designing concepts and creating the final advertisement, which generally becomes the responsibility of the agencys creative team. An agencys creative team consists of specialists in graphic design, film and audio production, copywriting, computer programming, and much more. Researchers Full-service advertising agencies employ market researchers who assess a clients market situation, including understanding customers and competitors, and also are used to test creative ideas. For instance, in the early stages of an advertising campaign researchers may run focus group sessions with selected members of the clients target market in order to get their reaction to several advertising concepts. Researchers are also used following the completion of an advertising campaign to measure whether the campaign reached its objectives. Media Planners Once an advertisement is created, it must be placed through an appropriate advertising media. Each advertising media, of which there are thousands, has its own unique methods for accepting advertisements, such as different advertising cost structures (i.e., what it costs marketers to place an ad), different requirements for accepting ad designs (e.g., size of ad), different ways placements can

be purchased (e.g., direct contact with media or through third-party seller), and different time schedules (i.e., when ad will be run). Understanding the nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates the best deals. 5. Explain the concept of IMC in with reference of rural market. Promotion strategies in Rural market Customized promotional media & messages need to be developed by the organizations to effectively target the rural market. The following strategies can be considered while developing promotional campaigns for the rural markets: 1. Think Global Act Local Rural population is diverse, but the commonalities of their ethos & simple living habits need to be understood for advertising to succeed. For that, the theme of the advertisement needs to revolve among universal themes, such as family-love. But the context, storyline, language & idioms should be such that the rural audience of different rural market segments can relate to. 2. Think in Local Idiom This is the need of the advertising professionals who can think like the rural people. The only we can have insights like Thanda matlab Coca Cola. There should be the use of language writers who understands the rural & regional pulse better. 3. Simplicity & Clarity All promotional messages targeted at rural audience need to be simple & clear, which can be easily understood, & they should not include any confusing elements. It is preferable that it has only a few propositions at a time. Bombarding rural consumers with too much, in less time can easily confuse them & leave them bewildered. Promotional message should highlight only the functional values of the product & explains how those values can make the consumers life even better & solve any of his problems. 4. Narrative Story Style The promotional message can be delivered in the form of an entertaining story with a message depicting how the brand delivers larger good to the family & society. The theme of the story line can be about how the product can solve the problems of the rural consumers. 5. Choice of Brand Ambassador Brand Ambassador for the rural markets need to be picked carefully as urban successes might not get replicated in the rural markets. That is why Govinda in the Mirinda as boosted the sales of the drink in the rural markets. An organization might spend a lot of money in hiring a brand ambassador only to find out later that it had little impact on the rural consumer.