Integrated Marketing Communication &promotion Mix: 5/31/2019 Mmpis Saju, Vitbs 1

Integrated Marketing Communication &Promotion Mix
5/31/2019 MMPIS Saju,VITBS 1

• Ogilvy on Advertising ,David Ogilvy
• Confessions of an Advertising Man ,David Ogilvy and Alan Parker,
southbank publishing
• A Double Life ,Alyquee Padamsee,penguin
• Advertising Age
• Understanding Digital Marketing:Marketing strategies for
engaging digital generation , Calvin Jones and Dalmian Ryan,Kogan page
• Google Analytics
• One Click .Jeff Bezos and the Rise of Amazon.com,Richard
Brandt,Portfolio trade

Marketing communications
 Inform/persuade/remind
 3 hit theory
 Promotion mix/Marketing communications Tools
 Advertising/Sales promotion/events and exposure/
 Publicity &PR/Direct and Interactive marketing and or
ONLINE (All the Digital stuff)
 Word-of –mouth/Personal selling

Source:chlorophyl brand consulting website




Communication Process Model
 Wilbur Schramm (1954)
 Selective attention/distortion/retention

Steps in designing effective communication
 Identify target audience

 Determine objectives
 Design communication
 Message content /structure
 Select channels
 Personal /non personal (media)
 Opinion leaders
 Establish budgets
 Affordable/% of sales/competitive parity/objective and task
 Decide on media mix
 Measure results /manage IMC

Response Hierarchy Models
Copyright © 2009 Pearson Education, Inc. Publishing

5/31/2019 as Prentice
MMPIS Hall
Saju,VITBS 17-11 11
Top agencies
• O&M
• Mudra
• JWT
• McCann Erickson
• Lowe Lintas
• Leo Burnet
• Dentsu
• Rediffusion Y &R
• Contract
• RK Swamy /BBDO
• Grey P&G, VW
• Madison

• WPP is world’s largest agency-Grey, Burson-Marsteller, Hill & Knowlton,
JWT, Ogilvy Group, TNS, Young & Rubicam and Cohn & Wolfe
• Omnicom – BBDO ,DDB,TBWA world wide,Mudra,Tribal DDB
• Publicis group - Leo Burnet ,Sachi and Sachi
• Interpublic group - McCann Worldgroup, Lowe and Partners, and DraftFCB
• Dentsu

Type of ad agencies
• Full service
• Creative agencies
• Specialized agencies
• In -house agencies
• Digital agencies (Interactive, SEO, Social media etc)
• Fns
1.Creative – Generate creative ideas and generate actual ads from brief
Creative director, copy writer, art directors --
2.Account Services - Account manager, exec
3.Media buying –Media, Planning, buying, media research
4.Production-Producers or content architects coordinates with external
vendors (Photographers, TVC cinematographers, directors )
5. Consumer research /Insights /Branding (optional)

Advertising
 5 M’s of Advertising
 Mission
 Sales goals /ad objectives
 Informative/Persuasive/Reminder/Reinforcement
 Message
 Rational appeal/emotional appeal
 Central and peripheral route
 Structure /format/source
 generation-evaluation and selection-execution-
 Media
 Reach , frequency,I mpact- types -vehicles
 Money
 Stages in PLC/Mrkt share/frequency/
 Measurement
 Communications impact /sales impact
Developing an Ad campaign:
1)Message generation and evaluation2)creative development and execution3)legal

and social aspects

David Ogilvy –Father of Modern advertising (Rational appeal/central route to persuasion)

Amul –the longest running campaign theme in Indian ad world-peripheral route

AD- Message and Media
 Creative Brief:
 Positioning statement
 Key message
 Target market
 Objectives
 Key brand benefit/Brand promises/
 Media/back ground/
 Media Selection
 Reach/ Frequency/Impact
 Types: TV/PRINT/INTERNET/MOBILE/ OUT DOOR /RADIO/TRANSIT/YELLOW
PAGES/BROCHURES/NEWS LETTERS/MOBILE PHONE
 Selection : Target audience and media habits/product and message chs/cost
 Media schedule: Continuity/concentration/pulsing / flighting
 Measures of audience size: Circulation/Audience/effective audience/effective-ad
exposed audience
 timing

TAM (Television audience measurement)
(source:TAM website)
• A joint venture between Ac Nielsen and Kantar market research

• ISA (Indian Society of Advertisers), IBF (Indian Broadcast Foundation) and AAAI (Advertising
Agencies Association of India)
• Provide data to Advertisers & Marketers, Media Owners, Media Agencies and the Academia.
• TAM runs the central, industry authorized, TV Viewership cell for the media industry.
• TAM India’s panel is among the top 5 in the world with the largest sample size comprising of
36000+ respondents/individuals across 225 cities and towns covered by 9650 peoplemeters
in TV homes of Class I towns (all towns and cities with a population of 1 Lac+) and Semi Rural
Towns (Less than 1 Lac population) from the state of Maharashtra, Gujarat, MP, PHCHP,
Rajasthan & UP
• Calculation of Reach
Universe: 10 individuals.
For a single episode of prgrm:
if out of the above 10 people 6 saw atleast 1 minute of the programme then,
Reach:6 out of 10
Therefore, reach = 60%
• Gross Reach = Summation of all audiences who have been exposed to the vehicle
• Week 1 : 1000,Week 2 : 2000,Week 3 : 1500,Week 4 : 1200
Hence, Gross Reach = ?
1000+2000+1500+1200=5700
• TAM Media X press and ,X Pert Optimizer

Measurement
Evaluating Ad effectiveness:
 Communications effect research/consumer feed back/lab tests/
 Sales effect research
Sales impact of ads:share of expenditure/voice/market
 Sales promotion tactics:

 Consumer directed/Trade directed
 Customer Experience Management

 Communications/Identity/Product presence/Co-
branding/Environment/Internet/Social media and online communities

 Impressions = OTS= Exposure
 Impression= Reach X Average Frequency
 Gross Rating Points (GRP) % =Reach (%) x Avg Frequency (#)
 GRP (%) = Impression (#)/Defined Population (#)
 Target Rating points = Impression/Target
 Cost per Thousand Impression (CPM)= Ad cost/Impression

generated
 Share of Voice (%) = Brand advertising (Rs)/Total market

advertising (rs)

• #SingleAsAPringle
• Pringle’s Latest Digital
campaign
• Reach 7.5 million

• 300 mn online impressions
• 40,000 conversations

2017-18’s Popular Brand films/ads
• 1. United Colours of #UnitedbyHalf

Bennetton’s “Equal Halves “
• 2. Amazon’s “ApniDukaan”
• 3. FastTrack’s “Gear Up For
some Action”
• 4.Sweden on AirBnB
• 5. Vodafones “LookUp”

AD ethics – surrogate ads?

“Shockvertising”-UCB a pioneer of sorts

 Public Relations
• Press relations/Product publicity/Corporate communications
• Lobbying/Counseling
 Assist in new product launches
 Repositioning a mature product
 Building interest in a product category/defend image realted issues
Tools:
Publications
• Events
• Sponsorships
• News
• Speeches
• Public Service Activities
• Identity Media

Sales promotion
 Incentive type promotions to attract new triers,to reward loyal customers

and to increase repurchase rate of occasional users
 Often attract brand switchers
 A short measure to promote sales: yields faster response than adverting
 May not be capable of deepening brand loyalty as advtsng does
 Consumer promotion Vs trade promotion
 Consumer promotion
 Samples -Coupons- Cash refunds-price packs
 Premiums(gifts)-prizes (contests,sweepstakes)-free trials-patronage awards-
warranties-cross promotion-PoP displays -Demos
 Trade promotion
 Price off-allowance-free goods- trade shows-sales contests-specialty ads

Personal selling principles /process
 As customer problem solving-

customer oriented approach
 Mere order taking –sales
approach
 Presentation –AIDA/FABV apch
 Canned apch-formulated apch-
need satisfaction apch
 Psychological resistance/logical
resistance
 Art and Science of negotiation
Howard Raiffa (1982)-negotiation
strategy

Digital Marketing (Source: HBR)

Role of digital channels in Purchasing Decision

Digital marketing (Online /Mobile /Social media )
 Owned media - reach  Web 3.0 -user generated

beyond existing Web sites content
to create digital touch
points  Data base marketing /Data
mining
 Earned media - learn how  Search marketing
to listen and respond to
stakeholders  Display ads
 Experiential marketing
 Paid media - should serve
as a catalyst to drive
customer engagement

Digital Marketing
• Display Advertising
• Organic search
• Search Engine Marketing
• Social Media Marketing
• Mobile marketing

Search Engine marketing
• SEM (paid search vs SEO organic based on Page Rank algorithm)

• SEO has a long gestation period - SEM for immediate results
• Google AdWords - cost per click (keywords, locations, budgets, ad copies)
for Google and partner sites
• Based on Ad Rank for keywords in backend (auction based on bidding)
– Ad rank = CPC X Quality score(* determined by Google)
• Google network (large group of websites and other online products such
as e-mail programs and blogs that have partnered with Google to display
Ad words ads)
• Search Retargetting vs Site retargetting

• Which Key Words to bid? • “Cheap hotels”
• How much to bid • “Affordable hotels”
• Budget • “Budget hotels”
• CTR
• Prepare Search Ads • Misspellings and Typos
• Landing Pages • Negative Keywords
• Branded key Words
• Monitoring-Scripts and • Generic keywords
Ad Word Planner • “Goa Hotels”

• Content buying Vs audience buying
• RTB (Real Time Bidding)
• ROS (run of site) AD Inventory

• Search Ad Profit
= (Impressions x CTRx Conversion Rate x
Margin)- Search Ad Cost

Display advertising
• Consists of banner ads, Text ads, Image ads and videos
• Ad inventory purchase model
• Fixed cost
• CPM –Cost per Mille( per 1,000 impressions)
– Pay for number of times ads are loaded, ads are brought in lots of 1,000 impressions
wherein each impression implies loading one Ad on web page
• CPC – Cost per click or PPC pay per click
– Advertisers pay website only when users click on their Ad
• CPL- cost per lead
– Ad effectiveness in getting consumer data which is a”lead”
• Cost per action, acquisition or Pay per performance(CPA,PPF)
– Pays only when customers perform a pre-decided action (eg:sign up by clicking on Ad)
• Cost per conversion (CPC)= Total cost/No of conversion (leads/ sale)
• CPI – Cost per Install

• Tools used by Digital media planners
– Google anlytics (free),Target Group Index (TGI)by WPP consumer behaviour
data ,Google ad planner- digital media consumption trends, com Score – reach
traffic -time spent -Ad servers –campagin management
– Third party ad servers like Media mind /Google Double click can serve ads
across multiple websites
• Rich media vs Std display ad
– Interactive vs Click through
• Dwell time
– Valid metric for rich media
• Road block ( eg: home page takeover for a specific time) lead to higher Share of
Voice -- Hour based pricing -per day pricing eg :Mahindra’s 9 hr block
– sponsorship model
• E- mail ads
– Fixed, Cost per mailer, Cost per open-up, CPL
• Unduplicated audience reach
– com Score’s tool to find out Unique visitors but no cross media
measurement tool

Ad Networks Ad Exchanges
• - aggregates the supply of ad

spaces from variety of • Automate matching between
publishers and match it with advertisers and publishers using
a real time auction process
advertiser’s demand
• Decide the placement and pricing
- Use proprietary algorithms to of ads using the supply and
help clients optimally place demand of ad landscape
ads on various networks • Based on bidding, less
transparency and control
- More control over campaigns
- Eg: vCommission, iCubes • Demand side platforms
Wire, Optimize Google • Supply side platforms
AdSense, InMobi • Eg: Rubicon project, Google
AdWords

500 mn users- data on purchase
behaviour, interest
• #Freecharge
• #Samsung (e.g. age of
device)

Source: https://www.fancs.com/en/service/service2

• Contextual ads • Data in the next two slides
• Retargetting(Stalking?) from (Urban et al., 2012,
• Morphing Display (cognitive Marketing Science )
style and history- Urban et
al., 2012)

Dynamics- Delayed Impact of Advertising
• Zero Moment of Truth (Google)
• Dynamic effects were more for Search ads

than display ads
• Heat map of Auto search ads (Next slide)

Mobile marketing
• Native/Hybrid/Mobile web apps
• Mobile ad network ( AdMob –Google, Google Ad sense for mobile)
• Generic App for brands as longterm strategy vs app for a campaign
• Mobile sites
• Voice Ad campaigns
• QR codes
• Integrate TV ads with mobile with a toll free number (eg: Quicker)
• CTR (click through rate ) of mobile ads are higher 0.73 compared to CTR of
banner ad .10 or rich media.14
• Precise (granular ) targetting: Handset type –OS -time - averge mobile usage-
,location etc
• High Opportunity to see (OTC)-
• User involvement is high

Suitability of visually rich content for
mobile (Source: HBR)

Synergy Between Offline and Online
campaigns
• Coke’s Hong Kong experiment
• Consumer product companies should know

more about the offline/retail sales impact of
online ads

Virtual grocery store – Tesco

Inbound Marketing
• Driving Forces
• The Diminished influence of Advertising
• Rise of Consumer Search
• “Irrelevant or intrusive ads “

• A way to engage consumers by creating content including
blogs, podcasts, whitepapers and Search Engine Optimization
(SEO) so that a brand is found when consumers search for
information

• How do consumers find
me?
• What content should I
create to attract
consumers?
• How do I optimize my
website /platform for
engagement?

Social Media
• “A brand is no longer what we tell customer it
is- it is what consumer tells each other it is”
– Scott Cook, Co-Founder Intuit
– 20- 50 % of all purchases are primarily driven by W-o-M

recommendations (McKinsey Consulting)
– Research also shows that a person is three times more to
adopt a mobile app if a friend adopts it
– Probability of defection to another networks increase by
80 % if friends defect

Conversations on social media helps
• Understand customers • #Unitedbreaks Guitars

• Brand perceptions
– Sentiment analysis and text
mining
• Satisfaction & Future
behaviour
– Each additional Star on Trip
advisor helped Hotels
increase bookings by 8%

Buzzmarketing (Mark Hughes)
1. The taboo
2. The unusual
3. The outrageous
4. The hilarious
5. The remarkable
6. The secrets

Brand association map using social
conversion data- (Source :Nielsen)

Stage 1: Without objective
Stage 2: Tracking brand mentions
Stage 3: Identifying market risks and opportunities
Stage 4: Improving campaign efficiency
Stage 5: Measuring customer satisfaction
Stage 6: Responding to customer inquiry
Stage 7: Better understanding of customers
Being proactive and anticipating

Stage 8:
customer demands

Social media objectives
Monitor what is being said about the brand. Develop
Listen and Learn
a listening strategy.
Build relationships Open dialogues with stakeholders. Answer customer

and awareness questions candidly.
Promote products Get customers talking about products and services.

and services
Manage your Respond to comments and criticisms. Participate in

reputation forums and discussions.
Improve Seek out displeased customers and engage them

customer service directly to solve issues.

Categories of users
Creators
Critics
Collectors
Joiners
Spectators
Inactives

Tools
Blogs Social News Sites
Location-Based Social
Microblogs Networking Sites
Social Networks Review Sites

Virtual Worlds and Online
Media Sharing Sites Gaming

Why
• Extrinsic motivations
– Incentives and rewards
• Intrinsic motivations
– Social status- esteem- expert status
– Opinion leadership – Trip advisor
– Drive intrinsic motivations to share

Integrated Marketing Communication &promotion Mix: 5/31/2019 Mmpis Saju, Vitbs 1

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Integrated Marketing Communication &Promotion Mix

5/31/2019 MMPIS Saju,VITBS 1

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 Wilbur Schramm (1954)

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 Identify target audience

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Copyright © 2009 Pearson Education, Inc. Publishing

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1)Message generation and evaluation2)creative development and execution3)legal

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• A joint venture between Ac Nielsen and Kantar market research

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 Sales promotion tactics:

 Customer Experience Management

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 Cost per Thousand Impression (CPM)= Ad cost/Impression

 Share of Voice (%) = Brand advertising (Rs)/Total market

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• Reach 7.5 million

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• 1. United Colours of #UnitedbyHalf

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 Incentive type promotions to attract new triers,to reward loyal customers

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 As customer problem solving-

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 Owned media - reach  Web 3.0 -user generated

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• SEM (paid search vs SEO organic based on Page Rank algorithm)

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• ROS (run of site) AD Inventory

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• - aggregates the supply of ad

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• Zero Moment of Truth (Google)

• Dynamic effects were more for Search ads

• Heat map of Auto search ads (Next slide)

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