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MBA 3rd Sem.

Unit- 2 Integrated Marketing Communication

Lecture No: - 9

TYPES OF ADVERTISEMENT

1. Social Media Advertising: -

Social media advertising is a popular choice for small businesses, because the cost is
relatively affordable and you can be highly selective with the audience you target. For
example, if you own a retail store, you can use ad targeting options to narrow the audience
so that only people of a certain demographic living within a certain mile radius of your store
are served your social ads. There are a few different social media platforms you can select
from for social advertising, including:

• Facebook: Facebook is a great advertising choice for most small businesses, because
of the widespread adoption of the platform and the relatively low cost of their
ads. Almost 70 percent of American adults use Facebook, and among those who use it,
nearly 75 percent log in to the service at least once per day. There are different ad units
to choose from on Facebook, including video ads, customer offers, carousel images,
lead generation, page likes, event responses and more. You can learn more about
Facebook advertising on the Facebook Business site.

• Instagram: Instagram ads are a great option for small businesses with a highly visual
brand that appeals to younger audiences, since 60 percent of Instagram’s one-billion
users are under the age of 30. Instagram includes many of the same targeting
parameters offered by Facebook and their ad units include image ads, video ads,
Stories ads and carousel ads. You can also include clear call-to-action buttons to drive
traffic to your website.

• LinkedIn: LinkedIn advertising tends to be a bit more expensive compared to other


social networks, but it’s a great option for small businesses with a business-to-business
(B2B) sales model, since you can target professionals in specific industries and with
certain job titles through LinkedIn ads. There are more than 560 active professional
users on LinkedIn.

2. Pay-Per-Click Advertising: -

Pay-per-click (PPC) advertising is a type of online advertising where advertisers pay a fee
every time a user clicks on one of their ads, usually through a search engine. Advertisers bid
on ad placements within the search engine, meaning they set a maximum price they’re

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

willing to pay for a user to click on their ads. If a person sees your ad but doesn’t click on it,
you aren’t charged anything. The most common platforms for PPC advertising are Google
Ads and Bing Ads. PPC advertising is a form of search engine marketing (SEM). It can be a
great option for small businesses with limited budgets and according to Word
Stream, businesses make $2 in revenue on average for every $1 they spend on Google Ads.

3. Mobile Advertising: -

Mobile advertising is a type of digital advertising in which ads are served only on mobile
devices, including smartphones and tablets. Mobile advertising can include:

• Mobile display ads

• Mobile search ads

• Mobile videos

• Mobile app ads, which are meant to drive downloads of a brand’s app

• Social media ads served on mobile devices only

Having a mobile advertising strategy can pay off for your small business. Eighty-four percent
of adult customers under the age of 30 are most likely to shop online using a mobile device.

4. Print Advertising: -

Print advertising used to be the primary advertising method for small businesses before the
advent of digital advertising. Now, print ad revenues are shrinking and as a small business
owner you may find the cost is much higher than the cost of digital and social advertising.
It’s also more difficult to measure the success of your print advertising campaigns, since it’s
almost impossible to prove how many people who saw your ads in print went on to make a
purchase at your store or become a client of your business. But, for some local businesses or
businesses that target older, less digitally engaged audiences, print advertising can still be a
good choice for your ad spend. Print advertising includes newspaper ads, magazine ads and
ads in brochures and flyers.

5. Broadcast Advertising: -

Broadcast advertising includes mass-market media like TV and radio. While broadcast
advertising, especially TV ads, can be cost prohibitive for small businesses, if you have local
TV and radio stations near you, the cost might be more affordable and the audience could
be highly relevant to your local business. The cost of broadcast ads depends on a number of

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

factors, including the length of the ads (longer TV and radio ads will cost more to air), the
frequency they play and the time of day they’re aired. You’ll also need to factor in the cost
of producing the ads, since professional TV ads can be quite expensive to produce.

6. Out-of-Home Advertising: -

Out-of-home or outdoor advertising refers to any advertising that reaches people when
they’re outside of their homes. This includes billboard ads, digital signage, transit ads (i.e.
bus shelters, train ads, subway stop ads, etc.), street furniture ads and ads in sports venues.
Out-of-home advertising can be quite expensive, so be sure it fits with your advertising
budget.

7. Direct Mail Advertising: -

Direct mail advertising involves all forms of ads that are delivered to a person’s home
through the mail. This includes, brochures, catalogues, sales letters and newsletters. While
direct mail is a less popular advertising method for small business than digital advertising, it
can be successful if you develop a creative, visually appealing direct mail campaign. Direct
mail ads enable you to deliver your message one-on-one to local consumers.

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References: -

• Philip Kotler (1987) Marketing: An Introduction. Prentice-Hall; International


Editions.
• Ramaswamy, V.S., 2002, Marketing Management, Macmilan India, New Delhi.

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Lecture No: -10

VALUE OF OBJECTIVES

Values/ Advantages of Objectives: -

The main advantages of objective may be explained as follows: -

It has been clearly defined that the organisation how the manager should behave in the
organisation. Proper planning helps the executives to coordinate in the correct sense of
direction towards the effective results. The main source of objective is to supervise in
proper manner. If there is no proper maintenance these will be problem in the creation
of the work.

1. Proper Planning: -

The main advantage of planning is in proper way. It encourages the proper planning. The
Basic ideas and fundamental theories of planning to achieve the basic thing, in the
organisation. These ideas are making the people to work in the proper planning. Some
objectives are basically aimed on individual focus.

2. Single Motivation:
The main objectives providing motivation to the people in the organisation. All the
individuals are directly motivated by their own subordinates from the High level to lower
level, he feels motivated. He feels, that he will complete his duties and will also be
rewarded suitably towards the job performance.

3. Direct Coordination:
The efforts of voluntary coordination may put into a detailed plan of an organisation. In
the workforce, the freedom has been given to employee they can work in replace of other
towards voluntary coordination.

4. Control Process is Standard:


Control of human efforts is standard in the organisation. Controlling processes
maintaining the standard performance so as to obtain the organisational goal effectively
in the organisation. Without such standard, meaningful control cannot exist. Standard for
control is mainly helpful in finance and thought promotional strategy.

5. Integration:

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It is set to link between the organisation and groups. So as the different department like
production, marketing, Finance, account, auditing and personnel brings them all
enterprise together in the organisation.

6. Decentralization of Authority:
Decentralization is the clear-cut objectives also facilitate the authority. The manager can
assign the duties to perform to the subordinates at the lower level. Then the subordinate’s
requisite the authority to carry out the performed duties.

References: -

• Kotler P, Armstrong G,2008, Principles of Marketing, 9th Edition, Prentice Hall, New
Delhi
• Gandhi J.C, 1985, Marketing –A Managerial Introduction, Tata McGraw-Hill, New
Delhi

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

Lecture No: -11

DETERMINING IMC OBJECTIVES, DAGMAR APPROACH

Integrated marketing communications (IMC) sounds like a complicated theory, but it’s
quite simple. Put plainly, it's a style of communication that incorporates all of a brand’s
messaging into one unified tone. IMC takes a company’s various promotions and ensures
that they follow a distinct, unified style which results in marketing efforts that are
consistently recognizable to customers. IMC has four primary objectives: creating brand
awareness, generating product interest, increasing the desire for products and prompting
action in the form of a sale.

1. ATTENTION AND AWARENESS


One of the main objectives of IMC is building attention and awareness for your brand.
A consistent brand voice helps build stronger relationships with consumers. Strong
relationships translate into customer loyalty. IMC helps people recognize your brand
across media.

2. INTEREST
Another objective of integrated marketing communications is to generate interest in
your products by informing customers of what differentiates your product or service
from your competitors. You can also communicate information about the product to
your would-be customers.

3. DESIRE
The next objective of IMC is cultivating the desire in your customers to make a
purchase. In creating desire, you are trying to move your customers from liking your
brand to deciding to make a purchase.

4. ACTION
After forging relationships with your customers, gaining their trust and piquing their
interest in your products, your last objective of IMC is prompting the customer to take
action on a purchase. One way to incite action is to reduce the consumer’s purchase
risk.

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DAGMAR Approach: -

DAGMAR Approach: Definition, Advantages, Examples


DAGMAR is a marketing expression that stands for “Defining Advertising Goals
for Measured Advertising Results”. It is a marketing tool to compute the results of an
advertising campaign. DAGMAR attempts to guide customers through ACCA model.
According to this approach, every purchase encounters four steps; Awareness,
Comprehension, Conviction, and Action. DAGMAR method is an established technique of
creating effective advertising.

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DAGMAR is an advertising model proposed by Russell Colley in 1961. Russell Colley


advocated that effective advertising seeks to communicate rather than to sell. Advertisers
discover whether their message conveyed enough information and understanding of a
product to their consumers and also its respective benefits from clear objectives.

The DAGMAR Model: -

1. AWARENESS: -

▪ Awareness of the existence of a product or a service is needful before the purchase


behaviour is expected. The fundamental task of advertising activity is to improve the
consumer awareness of the product.
▪ Once the consumer awareness has been provided to the target audience, it should
not be forsaken. The target audience tends to get distracted by other competing
messages if they are ignored.
▪ Awareness has to be created, developed, refined and maintained according to the
characteristics of the market and the scenario of the organization at any given point
of time.
▪ The objective is to create awareness about the product amongst the target audience.

2. COMPREHENSION: -

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▪ Awareness on its own is not sufficient to stimulate a purchase. Information and


understanding about the product and the organisation are essential. This can be
achieved by providing information about the brand features.
▪ Example: In an attempt to persuade people to budge for a new toothpaste brand, it
may be necessary to compare the product with other toothpaste brands, and provide
an additional usage benefit, such as more effective than other toothpaste because it
contains salt or that this particular toothpaste is a vegetarian toothpaste, which will, in
turn, attract more customers.

3. CONVICTION
▪ Conviction is the next step where the customer evaluates different products and plans
to buy the product. At this stage, a sense of conviction is established, and by creating
interests and preferences, customers are convinced that a certain product should be
tried at the next purchase.
▪ At this step, the job of the advertising activity is to mould the audience’s beliefs and
persuade them to buy it. This is often achieved through messages that convey the
superiority of the products over the others by flaunting the rewards or incentives for
using the product.
▪ Example: Thumbs up featured the incentive of social acceptance as “grown up”. It
implied that those who preferred other soft drinks were kids.
▪ The objective is to create a positive mental disposition to buy a product.

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4. ACTION
▪ This is the final step which involves the final purchase of the product. The objective is
to motivate the customer to buy the product.

Advantages of DAGMAR Approach: -

A major contribution of Colley’s DAGMAR approach was a specification of what


constitutes a good objective.

EXAMPLE OF DAGMAR APPROACH: -

Let’s suppose that an ABC company wants to evaluate the effectiveness of marketing
campaign for its latest product launched. The company starts evaluating the commercial
that is designed to persuade potential consumers through the four stages of the buying
process:

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1. In the AWARENESS stage, company ABC spreads awareness among the consumers
about its new product launched in the market.
2. In the COMPREHENSION stage, company ABC portrays to its consumers the features
and distinctiveness of the new product and reminds the consumers of the company
ABC’s logo and brand name.
3. In the CONVICTION stage, company ABC attaches the consumer emotionally to the
new product so that the consumer establishes an emotional preference for the
company ABC’s brand.
4. In the ACTION stage, company ABC makes sales.

References: -

• Gandhi J.C, 1985, Marketing –A Managerial Introduction, Tata McGraw-Hill, New


Delhi.
• www.unilorin.edu.ng/.../product%20classification%20strategy.pdf.
• http://www.mbanotesworld.in/2008/04/classification-of-product.html.

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Lecture No: -12

ESTABLISHING AND ALLOCATING PROMOTIONAL BUDGET

Budget setting can either be done by following top-down approach or by following a


bottom-up approach which are both pretty self-explanatory by the following figure:-

Top-down approach: -

1. Affordable method: the management first allocated the required funds to the
production and research departments and then the rest of the fund is allocated to
promotion with the argument that this is all they can afford

2. Arbitrary allocation: the budget is determined by management solely on the basis


of what is felt to be necessary and is dependent on the psychological profile of the
manager as much as it is based on economic reasoning

3. Percentage of sales method: the budget is allocated as a percentage of the sales


dollars or as a product of the number of units sold and fixed amount of unit production
cost

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4. Competitive parity: managers establish budget amounts by matching the


competition’s percentage-of-sales expenditures. The argument is that setting budgets in
this fashion takes advantage of the collective wisdom of the industry

5. ROI – Advertising budgets are seen as an invested and allocated with a view of getting
something back in return

Build up approach:

1. Objective and tasks method: It is a step-by-step approach with the following


elements occurring in hierarchy – identifying objectives -> Determining tasks required ->
Estimating expenditures -> Monitoring -> Revaluating objectives

2. Pay-out planning: The basic idea is to project the revenues the product will
generate, as well as the costs it will incur, over two to three years. Based on an expected
rate of return, the pay-out plan will assist in determining how much advertising and
promotions expenditure will be necessary when the return might be expected

3. Quantitative models: these methods employ computer simulation models


involving statistical techniques such as multiple regression analysis to determine the
relative contribution of the advertising budget to sales

Allocating the budget:

After the organization has decided on the budget it has set up for promotional activities,
the next thing to do is to allocate it among the different channels of promotion to get an
effective result. Different factors that need to be taken into consideration while allocating
budgets are listed below

1. Allocating to IMC elements: With an increase in the number of ways a company


can use to reach its prospective customers, the organizations have started leveraging on
the various combinations of different promotion channels wherein the emphasis on
direct marketing has seen an increase at the cost of other channels.
2. Client/agency policy: some predefined notions of the client/advertising agency
also effect the distribution of the promotional budget between different channels.
3. Market size: as a thumb rule, a larger market would require more effort to reach
the prospective buyers and thus would require higher allocation to ATL promotion
4. Market potential
5. Market share goals

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6. Economies of scale in advertising: Larger advertisers get better positioning in


the newspapers, better rates, co-operation of middlemen and favorable publicity and
these benefits are known as economies of scale.

References: -

• Gandhi J.C, 1985, Marketing –A Managerial Introduction, Tata McGraw-Hill, New


Delhi
• www.unilorin.edu.ng/.../product%20classification%20strategy.pdf
• http://www.mbanotesworld.in/2008/04/classification-of-product.html

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Lecture No: -13

TYPES AND ROLE OF AD AGENCY

“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in
desired shape, finally stitch the cloth and deliver it to the customer.”

Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it
should be delivered and hands it over to the client. Advertising agencies are mostly not
dependent on any organizations.

A firm engaged in providing services of advertisement for clients to create awareness and
market for them is known as advertising agency.
According to American Association of Advertising Agency an advertising agency is one –
i. Which is an independent organization.
ii. Which is composed of creative and business people.
iii. Who develop, prepare and place advertisements in media.
iv. Which is for sellers seeking to find customers for their goods and services.

Role of Advertising Agencies:-


1. Creating an advertise on the basis of information gathered about product
2. Doing research on the company and the product and reactions of the customers.
3. Planning for type of media to be used, when and where to be used, and for how much
time to be used.
4. Taking the feedbacks from the clients as well as the customers and then deciding the
further line of action
All companies can do this work by themselves. They can make ads, print or advertise them
on televisions or other media places; they can manage the accounts also. Then why do
they need advertising agencies? The reasons behind hiring the advertising agencies by the
companies are:

• The agencies are expert in this field. They have a team of different people for
different functions like copywriters, art directors, planners, etc.
• The agencies make optimum use of these people, their experience and their
knowledge.
• They work with an objective and are very professionals.
• Hiring them leads in saving the costs up to some extent.

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Economic role of Advertising: -

a. Value of Products:
The advertised products are not always the best products in the market. There are some
unadvertised products also present which are good enough. But advertising helps
increase value for the products by showing the positive image of the product which in
turn helps convincing customers to buy it. Advertising educates consumers about the uses
of the products hence increasing its value in minds of the consumers. For e.g. mobile
phones were first considered as necessity but nowadays the cell phones come with
number of features which makes them mode of convenience for consumers.

b. Effect on Prices:
Some advertised products do cost more than unadvertised products but the vice versa is
also true. But if there is more competition in the market for those products, the prices
have to come down, for e.g., canned juices from various brands. Thus some professional
like chartered accountants and doctors are not allowed to advertise.

c. Effect on consumer demand and choices:


Even if the product is heavily advertised, it does not mean that the demand or say
consumption rates will also increase. The product has to be different with better quality,

d. Effect on business cycle:


Advertising no doubt helps in employing more number of people. It increases the pay rolls
of people working in this field.

Social role of Advertising: -

There are some positive and some negative aspects of advertising on the social ground.
They are as follows.

a. Deception in Advertising:
The relation between the buyers and sellers is maintained if the buyers are satisfied with
what they saw in advertise and what they got after buying that product.

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b. The Subliminal Advertising:


Capturing the Minds of the consumers is the main intention of these ads. The ads are
made in such a way that the consumers don’t even realizes that the ad has made an
impact on their minds and this results in buying the product which they don’t even need.

c. Effect on Our Value System:


The advertisers use puffing tactics, endorsements from celebrities, and play emotionally,
which makes ads so powerful that the consumers like helpless preys buy those products.

Types of Advertising Agencies


There are basically 5 types of advertising agencies.

1. Full-service Agencies: -
➢ Large size agencies.
➢ Deals with all stages of advertisement.
➢ Different expert people for different departments.
➢ Starts work from gathering data and analyzing and ends on payment of bills to the
media people.

2. Interactive Agencies: -
➢ Modernized modes of communication are used.
➢ Uses online advertisements, sending personal messages on mobile phones, etc.
➢ The ads produced are very interactive, having very new concepts, and very
innovative.

3. Creative Boutiques: -

➢ Very creative and innovative ads.


➢ No other function is performed other than creating actual ads.
➢ Small sized agencies with their own copywriters, directors, and creative people.

4. Media Buying Agencies: -


➢ Buys place for advertise and sells it to the advertisers.
➢ Sells time in which advertisement will be placed.

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➢ Schedules slots at different television channels and radio stations.


➢ Finally supervises or checks whether the ad has been telecasted at opted time and
place or not.

5. In-House Agencies: -
➢ As good as the full-service agencies.
➢ Big organization prefers these type of agencies which are in built and work only for
them.
➢ These agencies work as per the requirements of the organizations.

There are some specialized agencies which work for some special advertisements.
These types of agencies need people of special knowledge in that field. For example,
advertisements showing social messages, finance advertisements, medicine related
ads, etc.

References: -

• www.unilorin.edu.ng/.../product%20classification%20strategy.pdf
• http://www.mbanotesworld.in/2008/04/classification-of-product.html

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

Lecture No: -14

AD-AGENCY SELECTION PROCESS, AGENCY REMUNERATION

Advertising Agency – Selection Basis: With Factors to be Considered while Selecting an


Advertising Agency
An advertising agency may be a full-service agency or a part-service agency. Each has a
different outlook and advertising activities.

1. Full-Service Agency or Part-Time Agency:


The full-service agency is involved completely in the advertising functions. It has a large
number of expert employees. The organisation is typically useful for performing
advertising activities. It looks upon customers as key clients. It communicates with the
prospective purchasers.
2. Compatibility:
The selection of an advertising agency depends on the compatibility of the agency. The
needs of the company determine the fitness of the agency.
3. Agency Team:
The agency team includes management specialists, market researchers, copywriters,
media experts, production managers and art directors. The attitude, thinking, experience
and personalities of the team members have positive effects on the selection process.
4. Agency Stability:
An agency which has been long in existence generally performs efficiently and effectively.
5. Services:
The services rendered by the agency are evaluated with a view to choosing the best
advertising agency.
6. Creativity:
Creativity is the main element in advertising. If the advertising agency is capable of great
creative effects, it is selected for the purpose. Style, clarity, impact, memorability and
action – these are taken into account while evaluating creativity.
7. Problem-Solving Approach:
The agency which has a problem-solving approach is considered to be superior and useful.
The importance of choosing the right agency cannot be ignored.

Factors to be Considered while Selecting an Advertising Agency: -

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There are numerous factors which have to be considered by the client before selecting an
advertising agency for his products/brand’s campaign.
1. The Requirement of the Client:
Different clients have different requirements and they want tailor made advertisements
for their brand. The agency which is capable of handling their requirements should be
chosen by them for advertisement campaign.
2. Past Experience of the Client:
Generally, clients keep up with the agency for years if it has been working with them
without any major problems right from the stages of development till implementation of
the campaigns.
3. Reputation of the Agency:
Some agencies have global fame e.g., Leo Burnett, DDB Needham, Ogilvy and Mather,
Mudra Communication are very reputed for their creative skills and professionalism.
4. Compensation to the Agency:
The client have to see the budget they have for the campaign at any point of time.
Organisations which can afford a good budget select National and even international
agencies but the ones with lesser budget generally stick to smaller; or local agencies.
5. Creative Skills:
Some clients do not want to use in-house agencies because they feel that in-house
agencies will not have specialized skill people. Also the creative people do not want to
work in small in-house agencies. To take advantage of their creative design, clients go for
outside agencies.
6. Top Management’s or Promoter’s Interest:
Media planning and buying, agency appointment are major decisions taken by the top
management of any company in consultation with the advertising department.

Ad-Agency Remuneration/ Compensation: -

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A. Commissions from Media

The traditional method of compensating agencies is through a commission system, where


the agency receives a specified commission from the media on any advertising time or
space it purchases for its client. This system provides a simple method of determining
payments.

B. Fee, Cost, and Incentive-Based Systems

• Fee Arrangement

There are two basic types of fee arrangement systems. In the straight or fixed-fee method,
the agency charges a basic monthly fee for all of its services and credits to the client any
media commissions earned. Agency and client agree on the specific work to be done and
the amount the agency will be paid for it. Sometimes agencies are compensated through
a fee–commission combination, in which the media commissions received by the agency
are credited against the fee.

• Cost-Plus Agreement

Under a cost-plus system, the client agrees to pay the agency a fee based on the costs of
its work plus some agreed-on profit margin (often a percentage of total costs). This system
requires that the agency keep detailed records of the costs it incurs in working on the
client’s account. Direct costs (personnel time and out-of-pocket expenses) plus an
allocation for overhead and a markup for profits determine the amount the agency bills
the client.

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• Incentive-Based Compensation

Many clients are demanding more accountability from their agencies and tying agency
compensation to performance through some type of incentive-based system. Recently a
new variation of this system has emerged in the form of value-based compensation
whereby agencies are compensated above their basic costs, if they achieve or exceed
results as measured by agreed-upon metrics.

• Percentage Charges

Another way to compensate an agency is by adding a markup of percentage charges to


various services the agency purchases from outside providers. These may include market
research, artwork, printing, photography, and other services or materials. Markups
usually range from 17.65 to 20 percent and are added to the client’s overall bill.

References: -

• Philip Kotler (1987) Marketing: An Introduction. Prentice-Hall; International


Editions.
• Ramaswamy, V.S., 2002, Marketing Management, MacMillan India, New Delhi.

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Lecture No: -15

AD CLIENT-AGENCY RELATIONSHIP

Client agency relationship in advertising

The client-agency relationship starts when a client appoints an advertising agency for
making his ad. It continues till the ad agency provides satisfactory services to him. Such a
relation should always be cordial. There should be a mutual trust, confidence and
understanding between the two parties. It is so, since, the primary objective of both sides
is same, i.e. to make a successful advertising campaign.

Suggestions for a client and advertising agency to maintain their relations:

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1. There should be a mutual understanding between client and agency.


Misunderstanding or confusion, if any, between the two parties, should be
resolved quickly through direct talks.
2. The agency should work sincerely and honestly to bring a success to the client's ad
campaign.
3. Both parties should properly follow the terms and conditions of the contract.
4. Good communication must be there between client and agency. Hence, regular
meetings between them shall be arranged.
5. Both should take necessary efforts to maintain their relations friendly.

Guidelines for the client to preserve relationship with advertising agency:

1. Treat the ad agency with courtesy at all times and never hurt its ego.

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2. Provide all possible information about the product to be advertised and the
organisation. A well-informed ad agency will make better ads.
3. Don't unnecessarily bargain for the fees charged by the ad agency as this may
affect the quality of work.
4. Motivate the agency to do a good impactful work.
5. Don't change the ad agency without a proper reason. If not satisfied, always first
communicate your expectations and then wait for necessary changes to reflect.
6. Give sufficient time to the agency to work on and develop an ad campaign. The
client should not pressurize it to work quickly. He should avoid giving deadlines.
7. Reduce disputes to a minimum.
8. Finalize in advance the charges for a particular ad campaign.

Advice to the advertising agency to maintain good relationship with client:

Dr. Pramod Gupta, Professor-MBA Department-MITRC 54


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1. The advertising agency should do a smart and hard work to bring success to the
client's ad campaign.
2. It should make a good advertising plan and must implement it efficiently and
effectively. However, first it must get the approval from the client.
3. It is the duty of the account executive of the agency to keep his customer happy
and satisfied.
4. It should not charge client unreasonably high rates.
5. It should not make ads for client's competitor.
6. It should get all the information from the market that will help to create better ads.
7. Discuss the ad fees with the client in advance to avoid disputes.
8. Disclose to the client the names of the team members (employees) that are
working on his ad campaign.
9. Inform the client about changes, if any, happening within the agency.
10. Never hurt client's ego. Agency should always provide timely services to him and
try its best to satisfy him.

References: -
• www.unilorin.edu.ng/.../product%20classification%20strategy.pdf
• http://www.mbanotesworld.in/2008/04/classification-of-product.html

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Lecture No: -16

CREATIVITY AND ADVERTISEMENT

Creativity is the soul of advertising and branding. It is what gives life to messages about
products and services that may otherwise be boring or insignificant in the hearts and
minds of target customers.

Dr. Pramod Gupta, Professor-MBA Department-MITRC 56


MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

Dr. Pramod Gupta, Professor-MBA Department-MITRC 57


MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

References: -

• Philip Kotler (1987) Marketing: An Introduction. Prentice-Hall; International


Editions.
• Ramaswamy, V.S., 2002, Marketing Management, Macmilan India, New Delhi.

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

Lecture No: -17

PLANNING CREATIVE STRATEGY- CREATIVE CHALLENGES

What is a creative strategy?

A creative strategy is an intentional and strategic approach a company takes in


developing and implementing steps that will ensure and support your long-term business
growth. Your creative strategy serves as a call to action for teams and provides the
guiding principles for developing the content.

Developing a successful creative marketing strategy

Marketing teams don’t have time or budget to waste. To achieve success, considerable
thought must be put into what and how you do it. We suggest you heed this advice:

• Make it goal-oriented and focused. Your creative strategy should answer


the why, what, and how you will achieve a defined goal.

• Be mindful of time. Include a timeline in your strategy so each team member stays
on track and avoids any last-minute problems.
• Share it with relevant stakeholders. Achieving your marketing goal requires a high
level of collaboration, which means each stakeholder must see and understand how
it aligns with their work, such as brand strategy.

6 must-haves for your creative strategy: -

Now that you have a solid idea of what your creative strategy will help you achieve, let’s
dive into what it should include, and how to execute it.

1. Clearly define your goals

Understanding what you are trying to achieve is fundamental to writing an effective


strategy.

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

Before diving into action, take some time to write down what your main goals are. This
will inform all of the subsequent steps you’ll take, including budget and resource
allocation, and messaging.

For example, if your goal is to increase online engagement with customers, your strategy
will look very different than if your goal is to boost lead generation by 20%.

2. Write a creative strategy statement

A creative strategy statement is one or two statements that describe the purpose of your
initiative or campaign, the value proposition, and the target audience.

The statement should answer the question, “How can we get customers to buy our
products or services over those of a competitor?”

3. Choose your KPIs

Choosing the right key performance indicators an important step in developing your
creative strategy, as they will indicate success or failure.

Again, your KPIs will depend on what your goals are. For example, if your goal is to increase
online engagement with your customers, some of your KPIs might be the number of
impressions for social media posts, the number of likes/comments, and how many
mentions you receive in customers’ posts.

4. Determine on your messaging and marketing channels

In this step, you need to decide what you are going to say, how you want to say it, how
you will position it within the greater context of your brand.

5. Set a budget

Creating an accurate budget is an integral part of your creative strategy.

To do this, you must first understand the scope of your initiative, including:

• What kinds of deliverables you will produce

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• How much you will rely on paid marketing vs. organic marketing
• The cost of paid services (including running online ads, paying vendors, and possibly
buying new software)
• The length of time you will need such services

6. Create a timeline

A timeline helps you build a realistic budget, as well as enabling stakeholder alignment.

References: -

• Philip Kotler (1987) Marketing: An Introduction. Prentice-Hall; International


Editions.
• Ramaswamy, V.S., 2002, Marketing Management, Macmilan India, New Delhi.

Dr. Pramod Gupta, Professor-MBA Department-MITRC 61


MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

Lecture No: -18

TAKING CREATIVE RISKS, CREATIVE PERSONNEL

7 things to consider when taking creative risks

Including how to generate creative ideas, and how to sell bold creative ideas.

1. Break the initial barrier, make sure the client and the creative agency are
working as a team:

“If the client is using the agency in the right way, if they welcome you into their business,
therefore a barrier is broke there already and you are part of the team, you are seen as
less of a provider and more part of a solution” - Hermeti Balarin

2. Trust between the creative agency and client is essential in order to make
authentic, award-winning campaigns:

“It’s really difficult for agencies alone to go all the way, it has to be met in the middle.
Clients have to already be willing to use you in the best way possible, which is to let you
in. Don’t keep the agency at arm’s length. It’s about building trust.” - Hermeti Balarin

3. Learn how to pitch creative ideas that you believe in:

“I try not to present anything that I don’t want to make. So I wouldn’t put the safe option
there. I’m always terrified of putting anything there for comparison's sake that is less
good. Go with your best, and deal with whatever happens after that.” - Hermeti Balarin

4. Speak up, be heard

“Everybody has a voice now, and you can’t temper to all of them, so you have to just own
yours.” Lily Fletcher

“Work with your clients to find their voice. So they can speak about almost anything. It is
a magical place to be. Suddenly you have a genuine way to respond, interject or be part
of a conversation, as long as it’s true to your personality people will love you for it. It’s not
easy to get to that place, but it’s amazing when you are there.” - Hermeti Balarin

5. Audiences can see inauthenticity a mile off, especially when brands


connect directly with them on social media:

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MBA 3rd Sem. Unit- 2 Integrated Marketing Communication

“I think that’s what gets called out really quickly, is when it’s bullshit. People smell it
and see it from a mile off, and are like ‘this is a stunt you’re trying to get me here’ and
that gets called out." - Lily Fletcher

6. When taking a risk with bold creative work, you can’t please them all:

“If you are going to a party and trying to please everybody you’ll end up not pleasing
anyone.” - Hermeti Balarin

7. Brands have a unique power to connect with audiences and promote


creativity for social good:

“There’s a lot of talk about greenwashing brands and brands aligning to the biggest issues
of our time.

References: -

• Philip Kotler (1987) Marketing: An Introduction. Prentice-Hall; International Editions.


• Ramaswamy, V.S., 2002, Marketing Management, Macmillan India, New Delhi.

Dr. Pramod Gupta, Professor-MBA Department-MITRC 63

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