CU-SEM-III-MBA-Integrated Marketing Communication-Second Darft-converted

Answers 1 -d, 2 – a, 3 -b 8.10 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning 101 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 9. PLANNING FOR MARKETING COMMUNICATION (MARCOM) Structure 9.0 Learning Objective 9.1 Introduction 9.2 DAGMAR approach for setting ad objectives 9.3 Budgeting for marcom-Factors influencing budget 9.4 Theoretical approach to budgeting viz. Marginal analysis and Sales response curve 9.5 Method to determine marcom budget. 9.6Summary 9.7 Keywords 9.8 Learning Activities 9.9 Unit End Questions 9.10 References 9.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • State the DAGMAR approach • Describe Theoretical approach to budgeting • Describe Factors influencing budget • Describe Method to determine marcom budget. 9.1 INTRODUCTION A company's marcom budget is the amount of money set aside for advertising campaigns over a set period of time. Various factors affect it, including the type of goods advertised, the size of the market, the geographic distribution of consumers within the market, and the sales volume in comparison to the sales volume of competitors. Advertisement, according to marketers, aids in rising consumer demand for a commodity. The amount of money spent on an ad campaign should be proportional to the amount of revenue it produces. The cost of an advertisement varies depending on where the product is in its life cycle. A new product, for 102 CU IDOL SELF LEARNING MATERIAL (SLM)

example, could require a greater portion of the advertising budget because the advertising must raise awareness of the product and attract potential consumers to purchase it. 9.2 DAGMAR APPROACH FOR SETTING AD OBJECTIVES I. DAGMAR APPROACH DAGMAR stands for Defining Advertising Goals for Measured Advertising Results in its full form. It's essentially a method for establishing promotional objectives and measuring the effectiveness of those objectives. According to the DAGMAR model, advertising's ultimate goal is to guide a customer across four stages of understanding: Unawareness to Awareness— A customer must first be aware of a brand or company; He or she must have a thorough understanding of the product and its benefits. He or she must have the mental disposition or belief to purchase the brand; Finally, he or she takes action and purchases the items, which will be detailed as follows: Awareness It is important to be aware of the presence of a product or organisation, since this is the first step before purchasing behaviour can be predicted. It is important not to overlook the target audience's awareness once it has been established. If there is a lack of attention, the audience may become distracted by competing messages, resulting in a drop in awareness of the focus product or organisation. Comprehension It's possible that knowledge alone won't be enough to prompt a purchase. It is important to have knowledge of the product or the organisation. This can be accomplished by presenting detailed details on main brand characteristics. It may be appropriate to equate the product to other mineral water products and offer an additional usage advantage, such as environmental claims, in order to convince consumers to try a particular brand of water. Take, for example, the advertisement for Ganga mineral water, which featured Govinda and relied on the purity factor. They compared the water's purity to that of the Ganga. Conviction The following move is to develop a sense of conviction. Buyers are pushed to a place where they are persuaded that a particular product in the class should be tried at the next opportunity by generating curiosity and choice. To do this, the audience's perceptions of the product must 103 CU IDOL SELF LEARNING MATERIAL (SLM)

be shaped, which is often accomplished by messages that illustrate the product's dominance over a competitor or through discussing the benefits of using the product. Many advertisements, such as Thumbs Up, portrayed social approval as a \"grown-up\" reward. It almost seemed as though those who chose other beverages were children. As a result of their advertisements and personal marketing activities, Tupperware, Aqua Guard, and AVON have become household names in Indian cities. A communication task is involved in an advertisement goal, which is intended to raise awareness, impart knowledge, establish attitudes, or elicit action. The communication role in the DAGMAR method is focused on a basic communication process model, as shown below. Figure 9.1- DAGMAR Approach Communication Process in DAGMAR Approach According to the model, a person must go through a series of mental steps before accepting a product. The person will be unaware of the product or offer in the market at some stage. The advertisement activity's initial communication goal is to raise customer awareness of the product or bid. The target group learns more about the product or offer in the second phase of the communication process, which is understanding of the product or offer. What are its distinguishing features and appeals, as well as related imagery and feelings? What distinguishes it from its competitors? Who is going to benefit from it? The third step, which occurs between comprehension and final action, is the attitude (or conviction) step. The buyer makes an overt step during this process, such as trying a brand for the first time, visiting a showroom, or requesting information. The contact mechanism as a whole is a little more 104 CU IDOL SELF LEARNING MATERIAL (SLM)

complicated. And although it can vary slightly depending on the circumstances, the basic definition revolves around what is stated in the preceding paragraphs. The DAGMAR method emphasises advertising's communication function. The approach's second key principle is that the advertisement target must be precise. It should be a written, observable assignment with a beginning point, a target audience, and a deadline. Case: Assume you're a dealer or distributor looking to market a reputable company's goods. You don't have to be concerned with the brand's logo or perception. You're simply concerned that consumers would refuse to purchase from you. Instead, go to a nearby competitor who sells the same goods as you. What would you do in such a situation? What should be the aim of your advertising? Is it essential to have a marketing strategy? What will be the components of such a marketing strategy? What should the financial plan be? Let's talk about some of the issues surrounding your promotion/advertising operation. To begin, you must differentiate between ads and your marketing goals. And DAGMAR is designed to help you set promotional targets and plans, not marketing goals. II. MEASURABLE OBJECTIVE IN DAGMAR APPROACH When we speak about calculations, surveys, questionnaires, and other such stuff, the DAGMAR solution seems impractical. After all, who wants to participate in a survey? However, since the strategy emphasises the importance of goals, we'll need some kind of calculation to see how successful the advertisement or promotional campaign was. When we think of an advertising plan, we must keep in mind that it must have a measurable goal. For example, the number of phone calls received before and after the ad was released or the number of referrals from yellow pages may be used as a calculation for a yellow page advertisement. Many advertisers are happily surprised by orders/offers obtained from phone calls that are later discovered to be from yellow pages advertisements. Now the question is, would they have earned such orders/offers if they hadn't advertised in the yellow pages? This is a different type of advertising used in the yellow pages. The marketer's observable goal must be written down, made explicit, and unmistakable. Goals like \"improve store picture\" or \"increase store awareness\" are too broad and don't lead anywhere. A Conceivable Benchmark When we talk about measurement, we're talking about both the present and the future. The marketer must first understand where they are now, both qualitatively and quantitatively. The 105 CU IDOL SELF LEARNING MATERIAL (SLM)

company's current status is the starting point for determining a target and choosing a campaign to achieve it. If they already have a large number of visitors, getting more customers into their shop cannot be the best goal. As a result, marketers should conduct an objective assessment of their current situation before focusing on the target. If a marketer is aware that a large number of consumers are visiting their shop, they are likely to have some knowledge of their purchasing habits. (It's unfortunate if you don't.) They know how to advertise in order to turn tourists to customers based on this information. Well-Defined Target Audience The target audience is maybe the first marketing lesson a marketer can master. A commodity will not be purchased by all. Not everyone requires the product; on the other hand, some needs are dormant and must be reawakened. As a result, determine the target demographic for the marketer's advertising campaign. This would most likely be the consumer segment as well. If the advertisers are selling luxury car accessories, for example, they can target buyers who are trendy, sophisticated, or own premium vehicles. Fixed time period The promotional campaign does not run indefinitely without a set of goals to reach in the future. The marketer should set aside a set amount of time, such as six months or a year, to achieve certain objectives. There should also be time set aside to test the campaign and make any necessary adjustments. A date should be set for the campaign to be reviewed when it arrives. 9.3 BUDGETING FOR MARCOM-FACTORS INFLUENCING BUDGET • Who is the client? Creating a consumer profile is the best way to figure out the answer to this issue. What are their ages? What are their working locations? Is it a man, a woman, or both? What are their attitudes and beliefs? Be as descriptive as possible. Knowing who your audience is will help you select the right message and media to achieve your objectives. • What kind of media does the target audience consume? Marketers nowadays have a plethora of media options to choose from. However, you are unable to meet a senior citizen using the same media as you might use to reach a teenager. As a result, it's important to understand who your true target audience is. 106 CU IDOL SELF LEARNING MATERIAL (SLM)

• What kind of appeal is needed to convince the target market to purchase? Is it better to be emotional or rational? Using the incorrect one would not result in the desired sales, regardless of how much money is spent on making and broadcasting it. • What is the age of your company or product? An unknown company would have to invest far more on ads than one that is well-known by its consumers. • What is the essence of your product or service? Often word-of-mouth is more effective than a full-page advertisement in the newspaper. The answer is dependent on the company's goods or services. • What is your expected profit margin? Even after your company has grown, you may still want to spend a lot of money on ads to keep your product in front of your target market's mind. 9.4 THEORETICAL APPROACH TO BUDGETING VIZ. MARGINAL ANALYSIS AND SALES RESPONSE CURVE In one of our previous blogs, we discussed the Marcom method with a real-life example. It consists of two parties (sender and receiver), four functions (encoding, decoding, response, and feedback), and two communication tools (encoding, decoding, response, and feedback) (message and media). Noise is described as something that distorts the intended message. To ensure that the target audience receives a clear message, marketers must be well-versed in all aspects of the marketing process. A well-integrated Marcom process allows the message to break through the noise and clutter, resulting in increased market share, revenue, and brand loyalty. All marketing efforts are integrated in a successful programme. Additional Features of Marcom Budget Mix Each Marcom tool is unique and has its pros and cons. Let us now understand these tools and their characteristics. • Advertising - Consider how Coca-Cola or Nike commercials deliver the same message regardless of where the target audience resides. It's best for geographically dispersed target markets or highlighting a particular product feature. 107 CU IDOL SELF LEARNING MATERIAL (SLM)

• Sales promotion - Contests, promotions, lucky draws, vouchers, and deals give target markets the opportunity to engage with the brand right away. It encourag es them to use a product and benefit from its features. • Events - Consumers go to events with a particular goal in mind, such as learning something new, networking, meeting new people, and so on. It's a great place for advertisers to easily meet their target audience. • Public relations - Public relations enables marketers to reach potential markets who are unaware of the brand, business, or product due to a lack of mass media exposure. • Online and Social Media - It might be educational or entertaining. Marketers can quickly distribute content for web and social media and adjust it in response to feedback. • Mobile marketing - It is time-sensitive, location-specific, and aids in the purchasing decision-making process. • Email marketing - To keep recipients interested, mails can be customised for them, branded content can be shared, and a call to action can be included. • Personal selling - This is beneficial in the later stages of the purchasing process as well as in B2B circumstances where relationships are essential. It allows for the development of buyer conviction and the elicitation of a response. Factors to consider while selecting Marcom mix To create the most appropriate Marcom, businesses must consider factors such as the type of product market, consumer willingness, and product life cycle stage. • Type of Product Market - B2C marketers invest more in ads, while B2B marketers invest more in personal selling, or relationship building. In consumer - driven markets, a well-trained sales team will increase wallet share in existing accounts and persuade dealers to stock more. • Customer willingness - Advertising, internet, social media, and public relations both aid in raising product awareness and understanding among customers. Personal selling and customised emails aid in the conversion of potential buyers, while sales promotion tactics aid in the completion of a transaction. 108 CU IDOL SELF LEARNING MATERIAL (SLM)

• Product Life Cycle - At various points of the product life cycle, the cost- effectiveness of marcom software varies. In the early stages of a product's life cycle, advertising, social media, and events are most effective. Email and online marketing aid in the distribution of products during the growth stage. Personal sale becomes increasingly important as a company matures. In the decline stage, sales marketing strategies are beneficial. MEASURING MARCOM ROI Every Marcom strategy must be evaluated for its efficacy. Customers are surveyed by certain advertisers to see if they remember the post, when they are likely to recall it, how they feel about it, and how their attitude toward the brand changed before and after the Marcom campaign. However, surveys and questionnaires aren't the only way to assess the efficacy of Marcom. Since the Marcom mix uses a number of content assets to reach the target audience, such as PDFs, videos, photographs, GIFs, and PPTs, determining the ROI of Marcom is critical in order to determine what is resonating with the target audience. Here are the different metrics that are measured for the Marcom mix for the target audience: • Views - The number of views for a content asset. • Time spent - The amount of time spent on a content piece. • Downloads - The number of times a content piece is downloaded. • Page-level analytics - The time spent on each page of PDFs, MS Word documents, PPTs. • Frame-level analytics - The viewership statistics for every frame of a video. Data aggregators can also see analytics like discovery, participation, number of interactions, content popularity, and engagement. BUDGETING APPROACHES Theoretical methods to determining a promotional budget are seldom used. They can never be seen in smaller businesses. Instead, a variety of approaches that have been established 109 CU IDOL SELF LEARNING MATERIAL (SLM)

through practise and experience are used. This segment examines some of the more conventional budgeting approaches, as well as their relative benefits and drawbacks. To begin, you must comprehend two points: (1) Many companies use several methods, and (2) budgeting techniques differ depending on the size and complexity of the company. Top-down methods work since a discretionary number is set (usually at the executive level), and the funds are then distributed to different agencies. These budgets are largely predetermined and lack a theoretical foundation. The affordable approach, arbitrary distribution, percentage of revenue, competitive parity, and return on investment are all top- down approaches (ROI). The firm calculates the amount to be spent in different areas such as development and operations using the affordable method (also known as the \"everything you can afford method\"). The remainder is then allocated to advertisement and promotion, based on the sum it can afford. Since no rules for calculating the effects of different budgets are created, the role to be performed by the advertising/promotions feature is not considered, and the risk of under- or overspending is high. This approach is popular among small businesses, as strange as it may seem. Unfortunately, it's also used in big businesses, particularly those who aren't marketing-driven and don't understand the value of advertisement and promotion. The reasoning behind this strategy is based on the belief that \"we can't be harmed by this process.\" That is, we would not have financial issues if we know what we can afford and do not go over it. While this is correct in a purely accounting context, it does not represent sound marketing decision making. This strategy also fails to distribute sufficient funds to get the product off the ground and into the market. According to the S-shaped sales response model, the company is in range A. Alternatively, the company may be overspending by working in range C. This approach is likely to result in budget cuts at a time when the economy is challenging and revenue and/or profits are falling. Arbitrary Allocation Arguably, arbitrary allocation is a weaker approach for creating a budget than the affordable method, in which practically no theoretical basis is considered and the budgetary sum is often set by fiat. That is, management determines the budget solely on the basis of what is deemed appropriate. Melvin Salveson claimed in a discussion of how managers set advertising budgets that these decisions could be based \"as much on the managers' psychological profile as they do on economic criteria.\" Though Salveson was referring to larger companies, the 110 CU IDOL SELF LEARNING MATERIAL (SLM)

strategy is often used by small businesses and non-profits. The method of random allocation has no apparent advantages. There has been no systematic thought, no budgeting for goals, and the concept and intent of advertisement and promotion have been largely overlooked. There is no valid reason for this strategy to continue to be used, aside from the fact that the boss thinks some money can be spent on ads and marketing and so chooses a number. Budgets are still set this way, and our goal in addressing it is to emphasise that it is used rather than suggested. Percentage of Sales The percentage-of-sales process, in which the advertisement and promotion budget is focused on product sales, is perhaps the most widely used method for budgeting (especially in large companies). Management calculates the sum by multiplying a fixed percentage of the unit product cost by the number of units produced, or by assigning a fixed amount of the unit product cost to advertising and multiplying this amount by the number of units sold. As a base, a percentage of expected future revenue is used in a variant of the percentage-of-sales process. A straight percentage of expected revenue or a unit cost forecast are often used in this process. Sales are forecasted for the coming year using the straight-percentage process, which is based on the marketing manager's estimates. The budget is not dependent on last year's revenue, which is a benefit of using projected sales as a base. Instead of relying on historical statistics, management must factor the impact of market shifts on revenue into next year's forecast. The budget that results will more accurately represent current circumstances and will be more acceptable. reveals that the amount assigned differs depending on the sector. Some companies spend a relatively small percentage of their budget (for example, 0.7 percent on timber and wood products), while others spend a much larger proportion of their budget (12.0 percent in the games and toy industry). The amount of money spent varies significantly depending on the company's overall revenue figure. As a consequence, in the construction machinery industry, a lower percentage of sales may result in substantially more advertising dollars being spent. The percentage-of-sales approach has a range of benefits, according to proponents. It is financially sound and holds ad spending within fair bounds because it is based on previous year's revenue or what the company plans to sell in the coming year. As a result, there will be enough funds to cover this budget, with revenue increases contributing to budget increases and sales cuts leading to advertising reductions. The percentage-of-sales approach is straightforward, easy, and straightforward to enforce. The calculations to arrive at a budget, 111 CU IDOL SELF LEARNING MATERIAL (SLM)

regardless of which basis is used—past or potential sales—are not difficult. Finally, this budgeting method is fairly consistent. While the budget can adjust as revenues rise and fall, as long as the adjustments aren't dramatic, the manager would have a good idea of the budget's parameters. Competitive Parity If you asked marketing executives if they ever base their promotional and promotion budgets on what their rivals spend, they would almost certainly say no. However, if you looked at these companies' advertisement budgets as a percentage of revenues and in terms of the media to which they are allocated, you'd find no difference in the percentage-of-sales statistics for businesses within a particular sector. Such outcomes do not occur by chance. Competitive advertisement budgets can be found in companies that provide competitive advertising information, trade groups, and other advertising industry periodicals. Larger organisations frequently use resources like Competitive Media Reporting, which estimates the ads of the top 1,000 companies across 10 media and in total. Smaller businesses also use a clipping service to remove competitors' advertising from local print media, allowing them to calculate the total cost of the ads inserted. Managers create budget amounts using the competitive parity approach by matching the competition's percentage-of-sales expenses. The point is that this method of budgeting takes advantage of the industry's collective wisdom. It also considers the rivalry, resulting in market stability through the reduction of marketing warfare. Companies are less likely to take an aggressive stance to win market share if they know their rivals are unable to match their advertising spending rises. This reduces the amount of money spent on advertising that is odd or unrealistic. Return on Investment (ROI) Sales determine the level of advertisement appropriations in the percentage-of-sales process. However, advertisement results in revenue. In both the marginal analysis and the Shaped curve approaches, incremental advertisement and marketing expenditures result in revenue increases. The word \"investment\" is crucial here. Advertising and promotions, including plant and equipment, are called investments in the ROI budgeting process. As a result, the discretionary appropriation (investment) yields predictable results. Advertisement and promotion, like other facets of the firm's efforts, are supposed to yield a certain return. Step-by-Step Approaches The main problem with top- down methods is that they contribute to fixed budget appropriations that are frequently unrelated to goals and the tactics that would be used to achieve them. Evaluate the firm's communications priorities and budget what is considered appropriate to achieve these targets 112 CU IDOL SELF LEARNING MATERIAL (SLM)

for a more efficient budgeting approach. The promotional planning model, as previously mentioned, depicts the budget decision as an interactive process, with communications goals on one side and promotional mix alternatives on the other. The aim is to set aside money so that these promotional combination tactics can be introduced in order to meet the specified goals. Objective and Task Method It is important that goal-setting and budgeting occur concurrently rather than sequentially. It's impossible to create a budget without having clear goals in mind, and setting goals without considering the amount of money available makes little sense. A business, for example, might want to raise awareness among X percent of its target market. To achieve this aim, a small budget will be needed, and the company must be willing to invest it. A three-step build-up technique is used in the goal and mission process of budgeting: (1) specifying the contact goals that must be met, (2) identifying the particular strategies and tasks that will be required to achieve them, and (3) calculating the costs associated with the implementation of these methods and tasks the overall budget is calculated by adding these costs together. Pay-out Planning To encourage higher levels of awareness and eventual trial, a new product's first months usually necessitate higher-than-normal advertisement and promotion budgets. After analysing more than 40 years of Nielsen data, James O. Peckham calculated that the average advertising-to-sales ratio needed to successfully launch a new product is 1.5:2.0.35. This assumes that a new entrant can invest roughly twice as much as the target market share. For example, brand 101 gained a 12.6 percent market share in the food industry by investing 34 percent of total advertising dollars in this segment. Similarly, in the toiletry industry, brand 401 received 30% of advertisement dollars and gained 19.5 percent of revenue. Quantitative Models Attempts to use mathematical methods to budget have had mixed results. To calculate the relative contribution of the advertisement budget to revenue, most of these approaches use computer simulation models involving statistical techniques such as multiple regression analysis. The acceptance of these approaches has been limited due to problems associated with them. The next move is to distribute the budget after it has been appropriated. The 113 CU IDOL SELF LEARNING MATERIAL (SLM)

allocation decision entails deciding the markets, goods, and/or promotional elements will obtain what percentage of the funds appropriated. 9.5 METHOD TO DETERMINE MARCOM BUDGET. Setting an advertising budget is difficult because advertisers are unable to measure the benefits of an advertisement or calculate the exact revenue it has made. Businesses, on the other hand, often apply the thumb rule (such as the advertisement/sales ratio). The following are a few examples of traditional methods: STEPS IN MARCOM MODEL The steps involved in Marcom are: 1. Identify the target audience 2. Set communication objectives 3. Design the communications 4. Select communication channels 5. Establish the communication budget We explain each step in Marcom below: 1. Identify the Target Audience The target audience for a company's goods may include potential customers, current consumers, influencers, organisations, or the general public. The message, mode, location, and type of communication are all determined by the target audience's makeup. A short guide on how to classify a target group can be found here. 2. Set Marcom Objectives What do companies expect to achieve from the Marcom process, Potential Marcom objectives include: • Increased awareness - Making the target group aware of the brand or product's presence. • Build brand loyalty - Getting the target group to know or remember the brand so they can buy it. 114 CU IDOL SELF LEARNING MATERIAL (SLM)

• Understand the product - Assisting the target group in comprehending the product and how it addresses a consumer need. • Conviction - Creating a positive image of the commodity in the minds of the target market. 3. Design Communications Designing Marcom requires answering three key questions: • What to communicate? Consumers expect four types of rewards from using a product, according to John C Maloney, Research & Development Manager at Leo Burnett Company: reasoning, sensory, social, and ego fulfilment. As a result, the message should emphasise the product's or brand's efficiency, economy, and value in meeting their needs. • How to communicate? An innovative approach should be used to translate the central message into concrete communication. In a Super Bowl commercial for Snickers, for example, the tagline read, \"You're not you when you're hungry.\" By demonstrating how a human can be changed by eating a Snickers candy bar, the ad helped it become the world's leading sweet snack. • Who should communicate? Some businesses choose celebrities to deliver their messages, while others prefer regular people to add authenticity and conquer customer scepticism. 5. Select communication channels Choosing the best Marcom channel may be a personal or non-personal experience. When the goods are costly or dangerous, personal influence will help (such as stock recommendations). People often ask their friends for suggestions for a good hotel, lawyer, doctor, accountant, or financial consultant. They do it because they believe in the advice. A celebrity endorsing a product can act as a personal Marcom channel. Organic growth can be sparked by positive word of mouth. Online marketing, social media, customised microsites, email marketing, and other personal marketing platforms are examples. Ad, promotional campaigns, festivals, and public relations are non-personal Marcom outlets that are used to spread the word. Companies fund events and charity shows in order to reach out to a diverse audience. Personal and non-personal integration the use of marcom channels aids in the maximisation of the message. Opinion leaders and influencers are the first to receive the post, which they then 115 CU IDOL SELF LEARNING MATERIAL (SLM)

pass on to communities and groups in the target audience through non-personal networks. Integrated brand communication aids in the development of a product's momentum as well as informing customers and demographic segments that are not reached by traditional media. 5. Establish Marcom budget The budget for Marcom varies from company to company. A B2C business like Snickers may allocate 35 percent of its sales to Marcom, while a heavy industry company may only allocate 5% of its sales to Marcom. The Marcom budget can be defined in one of four ways: i) Affordability method: After allocating all other costs in his budget, a marketer uses this approach to assign the remaining funds to ads. Small businesses with minimal capital, as well as firms whose management places no emphasis on marketing efforts, use this form of budgeting. ii) Competitive parity method: Companies also assess their advertising budget by comparing it to that of competitors. The company's advertising budget could be comparable to that of a rival, either in terms of rupees or percent-of-sales. It is founded on the idea that if an organisation uses this approach, it is using the industry's collective expertise to determine its advertising budget. Companies must be cautious when allocating advertisement budgets based on rivals' expenditures or budgets because their goals and resources might be completely different. iii) Objective and task method: One of the logical approaches to determining advertisement budget is to use the objective and mission process. This approach requires advertisers to build their advertising budget by (a) specifying their particular advertising goal, (b) deciding the tasks that must be completed to meet those goals, and (c) calculating the cost of completing those tasks. The advertisement budget is determined by the sum of all of these expenses. The main drawback to this approach is that advertisers are unable to reliably measure or calculate the effort needed to achieve a target. For example, determining the advertising budget for Packaged Mass Consumption Goods items is difficult because response rates to ads for soaps, detergents, and toothpastes are difficult to quantify. iv)Percentage of sales method: 116 CU IDOL SELF LEARNING MATERIAL (SLM)

Companies also use the percent of sales approach to calculate their advertising budgets. The formula for the percentage of revenue method is (Spending on ads in rupees/Sales in rupees) x 100. This approach can be established by looking at previous revenue data and budget allocations. Allocating the budget along similar lines with no significant adjustments would imply a repeat of previous results. However, in order to achieve the expected revenue figure, it might be necessary to raise or decrease the budget. Forecasting a product's sales for the current year is critical, and knowing the business situation and anticipating competitor strategies are essential. • Affordable method - Setting the budget that a company can afford. • Percentage of sales method - Setting budgets based on a percentage of sales. • Competitive parity method - This depends on how much a competitor is spending for their Marcom and base the budgets on it. • Objective and task method - It includes setting the objectives, identifying the task involved, and evaluating the costs for it. Marcom: Conclusion Marcom can help a company create brand equity by shaping consumer perceptions, driving sales, and influencing shareholder value. Marketers must consider any consumer touch point, as well as how a brand places itself, the marketing mix, and its timing. A well-thought-out Marcom strategy will aid in the development of brand equity and increase sales impact. 9.6 SUMMARY • Advertising is a paid type of non-personal contact about any product, service, or concept, with the aim of informing potential consumers about certain goods and services, as well as how to access and use them. • Many ads are often intended to increase consumption of such products and services by establishing and reinforcing brand awareness and brand loyalty. • Advertisements often contain both insightful and persuasive messages for this reason. The unique selling proposition (USP) of a product is emphasised in its marketing. 117 CU IDOL SELF LEARNING MATERIAL (SLM)

• DAGMAR stands for Defining Advertising Goals for Measured Advertising Results in its full form. It's essentially a method for establishing promotional objectives and measuring the effectiveness of those objectives. • There are many forms of advertising: Product Promotion, Institutional Promotion, Consumer Promotion, and Industrial Promotion Advertising on a national and local level, as well as commercial and non-commercial advertising, Advertising that is both rational and emotional 9.7 KEYWORDS • Advertising Creativity: Ability to come up with unique and effective ideas • Big Idea: Idea that is creative and that clicks with audiences • Brand Comprehension: Know facts and attributes of the brand • Psychographic Segmentation: Segments audience on the basis of life-styles, values and attitudes • DAGMAR - Defining Advertising Goals for Measured Advertising Results. It is basically an approach to setting up advertising goals and using those goals to measure the advertising performance • ROI- Return on Investment. Getting return of the amount that you have spent or invested 9.8 LEARNING ACTIVITIES 1. Apply Dagmar Approach to Britannia Company and brief it. ___________________________________________________________________________ ___________________________________________________________________________ 2. Apply Budgeting for Marcom to any company of your choice and brief it. ___________________________________________________________________________ ___________________________________________________________________________ 9.9 UNIT END QUESTIONS A. Descriptive Questions 118 Short Answers CU IDOL SELF LEARNING MATERIAL (SLM)

1. What is Comprehension in DAGMAR approach? 2. What is Conviction in DAGMAR approach? 3. Write a note on top-down approach 4. Write a short note on Competitive Parity 5. Write a note on percentage of sale method. Long Answers 1. Explain DAGMAR Approach. 2. Explain Budgeting for MARCOM 3. Theoretical approach to Budgeting 4. Method to Determine Marcom Objective B. Multi-Choice Questions 1. The full form of DAGMAR is a. Defining Advertising Goals for Measured Advertising Results b. Defining Advertising Goals for Measured Advertising Returns c. Defining Advertising Goals for Monetary Advertising Returns d. None of these 2. DAGMAR is defining advertising goals for measured advertising ____________ a. Research b. Results c. Reference d. Response 3. Are the main target audience, on whom the marketing efforts are mainly focused? a. Primary Market b. Secondary Market c. Main Market d. Business Market 4. Awareness of the existence of a product or organization is necessary and it is the first step before the purchase behaviour can be expected. a. Comprehensive 119 CU IDOL SELF LEARNING MATERIAL (SLM)

b. Conviction c. Awareness d. Action 5. The budget is determined by management solely on the basis of what is felt to be necessary. a. Arbitrary Allocation b. Competitive Parity c. Percentage of Sale d. None of these Answers 1 -a, 2 –b, 3 - a, 4 –c, 5 -b 9.10 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning 120 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 10. DEVELOPING THE INTEGRATED MARKETING COMMUNICATION PROGRAMME Structure 10.0 Learning Objective 10.1 Introduction 10.2 Planning and development of creative marcom 10.3 Creative strategies in advertising 10.4 Sales promotion 10.5 Publicity 10.6 Event Sponsorships 10.7 Summary 10.8 Keywords 10.9 Learning Activities 10.10 Unit End Questions 10.11 References 10.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • Outline the Planning and development of creative marcom • Explain Sales Process • List down Creative strategies in advertising • Describe Publicity & Event Sponsorships 10.1 INTRODUCTION Marketers are constantly looking for fresh and more convenient ways to communicate with their clients. Interactive media, such as the mobile phone and the Internet, are significant additions. To reach consumers and sell their goods and services through some system of resellers, most businesses around the world rely on conventional promotion mix elements such as advertisement, personal selling, and sales promotion. These conventional promotions 121 CU IDOL SELF LEARNING MATERIAL (SLM)

mix components, they claim, are successful in raising brand awareness and knowledge, as well as in building brand image. Some marketers tried reaching out to consumers one-on-one using these techniques to see whether they could elicit an immediate behavioural reaction from them, and now direct marketing is an increasingly growing discipline of marketing. To distribute goods, direct marketing may or may not use middlemen. The promotion aspect of direct marketing is its main focus. 10.2 PLANNING AND DEVELOPMENT OF CREATIVE MARCOM The Creative Challenge Many who work in advertising's creative department are often faced with a difficult task. They must combine all of the information from the study, creative briefs, strategy statements, communications goals, and other sources to create an advertisement message. It is their responsibility to write copy, design layouts and diagrams, or create advertisements that effectively convey the campaign's central theme. They must bring the advertisement message into a way that will engage the audience's imagination and make the commercials unforgettable, rather than merely stating the features or benefits of a product or service. Since every marketing situation is different and each campaign or advertising can need a different creative strategy, the creative team's task is difficult. There are several guidelines for producing successful ads, but no one-size-fits-all solution. When it comes to making advertisements, many creatives stick to tried and true formulas because they are healthy. Clients are also put off by advertisement that is too different. “Very few clients understand that the reason their work is so bad is that they commandeered and ordered it to be that way,” says Bill Tragos, former chair of TBWA, the advertising agency known for its excellent creative work for Absolut vodka, Evian, and several other clients. I believe that the customer is responsible for at least half of an agency's good work.” Creative Personnel In novels, movies, and TV shows, the picture of the imaginative advertising individual is often that of a freewheeling, freethinking, quirky personality. Since creative personnel's educational backgrounds are often in non-business fields like art, literature, music, humanities, or journalism, their preferences and viewpoints vary from those of managers with a business education or history. In their approach to a problem, creative people are more abstract and less formal, ordered, or traditional, relying on intuition rather than logic. 122 CU IDOL SELF LEARNING MATERIAL (SLM)

Arthur Kover, for example, performed a study of advertisement copywriters and discovered that they operate without reference to any formal communication theories. Those polled in his research, on the other hand, had similar informal, implicit theories that guided their ad development. These ideas are focused on figuring out how to cut through the clutter of advertising, open customers' minds, and communicate with them in order to deliver the message. The Creative Process Young’s model of the creative process contains five steps: Immersion- Gathering raw material and information through background research and immersing yourself in the problem. Digestion- Taking the information, working it over, and wrestling with it in the mind. Incubation- Putting the problems out of your conscious mind and turning the information over to the subconscious to do the work. Illumination. The birth of an idea—the “Eureka! I have it!” phenomenon. Reality or verification- Studying the idea to see if it still looks good or solves the problem; then shaping the idea to practical usefulness. Account Planning Many agencies now use account preparation to help with the creative process, which entails conducting research and collecting all relevant information about a client's product or service, brand, and target audience customers. Account preparation started in the United Kingdom in the 1960s and 1970s and has since spread to agencies in the United States, Europe, and Asia. Inputs to the Creative Process Preparation, Incubation, Illumination Background Information Only the naivest creative person or team will take on a project without first knowing everything they can about the client's product or service, the target market, the competition, and any other relevant background details. The creative specialist should also be aware of general market patterns, conditions, and technologies, as well as research into particular advertising methods or strategies that may be effective. Context information can be obtained in a variety of ways by the artistic professional. Sandra Moriarty has identified several informal fact-gathering techniques: 123 CU IDOL SELF LEARNING MATERIAL (SLM)

• Reading books, trade magazines, general interest journals, statistical studies, and other materials related to the product or industry. • Gathering input from everyone involved with the product, including designers, developers, salespeople, and customers. • Paying attention to what others are doing. Store visits, shopping visits, restaurant visits, and even visits to the agency cafeteria can all be educational. Listening to the customer is especially important because he or she often has the most knowledge of the product and market. • Using and familiarising yourself with the product or service. The more you use something, the more you learn about it and what you can tell about it. • Working in the client's company and learning about it to get a deeper understanding of the people you're trying to meet. Product/Service-Specific Research Creative people receive product/service-specific preplanning feedback in addition to general context research and preplanning input. Specific research on the product or service, the target audience, or a combination of the two are common sources of this information. Product- related preplanning input includes quantitative and qualitative customer research such as attitude surveys, market structure and positioning studies such as perceptual mapping and lifestyle research, focus group interviews, and demographic and psychographic profiles of consumers of a specific product, service, or brand. Qualitative Research Input Many organisations, especially those with large research departments, have their own research programmes and techniques for assisting in the creation of creative strategy and providing feedback to the creative process. Qualitative research approaches such as in-depth interviews or focus groups, in addition to the various quantitative research studies, may provide the creative team with useful information at the early stages of the creative process. Focus groups are a form of market research in which consumers (usually 10 to 12 people) from a target market are led through a conversation about a specific subject. Focus groups will reveal why and how customers use a product or service, what factors influence their decision to buy a specific brand, what they like and don't like about different products or services, and any unique requirements they may have that aren't being met. A focus group 124 CU IDOL SELF LEARNING MATERIAL (SLM)

session may also involve a discussion of different forms of ad appeals to use or a comparison of different companies' ads. Inputs to the Creative Process: Revision and Verification The verification and revision stage of the creative process examines the ideas produced during the illumination stage, rejects the ones that aren't suitable, refines and polishes the ones that are left, and gives them final expression. Driven focus groups to assess innovative concepts, ideas, or themes; message communication studies; portfolio tests; and assessment measures such as viewer reaction profiles are all used at this level. Advertising Campaigns The majority of advertisements are part of a series of messages that make up an IMC, or advertising campaign, which is a collection of interconnected and organised marketing outreach campaigns centred around a particular concept or idea that occurs in various media over a set period of time. Determining the campaign's unifying theme is an important step in the creative process since it sets the stage for the individual advertisements and other marketing messages that will be used. Since it is the core message that will be conveyed in all ads and other promotional events, a marketing theme should be a strong idea. Copy Platform The written copy platform lays out the foundations of the innovative approach. This document can be referred to as a creative platform or work plan, a creative brief, a creative outline, or a creative contract by different agencies. The copy platform is normally prepared by the account representative or manager assigned to the account. It could be written by someone from the analysis department or the strategic account planning department in larger agencies. Creative employees, as well as members from media and analysis, from the organisation team or community assigned to the account, have feedback. The copy platform is eventually approved by the client's advertising manager and/or marketing and brand managers. The Search for the Major Selling Idea Determining the core concept that will become the marketing campaign's main selling idea is an integral aspect of creative planning. According to A. Jerome Jeweller’s book Creative Strategy in Advertising. 125 CU IDOL SELF LEARNING MATERIAL (SLM)

The most powerful single thing you can claim about your product or service should emerge as the big selling concept. This should be the claim that appeals to the target audience the most broadly and meaningfully. Once you've decided on a message, make sure you can live with it; make sure it's solid enough to be the focus of any ad and commercial in the campaign. It's difficult to trace the source of a big idea's inspiration, or to teach advertising professionals how to do so. Several methods, on the other hand, will help the creative team find a major selling concept and create successful advertising. The following are some of the most well- known approaches: • Making use of a one-of-a-kind selling proposition. • Developing a brand picture • Recognizing the drama that already exists. • Placement. Unique Selling Proposition Rosser Reeves, former chair of the Ted Bates agency, introduced the idea of the unique selling proposition (USP), which he describes in his influential book Reality in Advertising. Special selling propositions have three characteristics, according to Reeves: 1. Every commercial must make a customer proposition. It's not just terms, product puffery, or storefront ads. “Buy this product and you will get this benefit,” each advertisement must state to each reader. 2. The proposition must be something that the competition can't or won't provide. Either the brand or the argument must be distinct. 3. The proposition must be compelling enough to attract tens of millions of new consumers to your brand. Creating a Brand Image It's difficult to identify or establish a specific feature or advantage to use as the main selling point in many product and service categories because rival brands are so similar. On a practical or performance basis, many of the packaged-goods items that account for the majority of advertising dollars spent in the United States are difficult to distinguish. The image advertising-driven creative strategy for selling these goods is based on the creation of a solid, memorable brand identity. 126 CU IDOL SELF LEARNING MATERIAL (SLM)

Finding the Inherent Drama Another method for evaluating the big selling concept is to look for the product's intrinsic drama or feature that entices customers to buy it. The inherent drama approach reflects Leo Burnett's advertising philosophy, as founder of the Chicago-based Leo Burnett agency. Inherent drama, according to Burnett, is “often difficult to find but always there, and once found, it is the most compelling and convincing of all advertisement appeals.” 34 He believed that ads should be built around consumer benefits, with a focus on the dramatic aspect in presenting those benefits. Positioning In the early 1970s, Jack Trout and Al Ries introduced the idea of positioning as a foundation for advertising strategy, and it has since become a common basis for creative growth. The basic concept is that advertisement is used to create or \"place\" a product or service in the minds of customers. Positioning is performed with both businesses and labels. Appeals and Execution Styles The technique used to draw consumers' interest and/or affect their feelings about a product, service, or cause is referred to as advertising appeal. “Something that moves people, appeals to their desires or needs, and piques their interest” is another definition of an advertising appeal. 1 The creative execution style refers to how a specific appeal is transformed into a consumer-facing advertisement message. Informational/rational appeals Informational marketing focuses on the consumer's realistic, functional, or utilitarian need for the product or service, emphasising product or service features and/or the advantages or reasons for buying or using a specific brand. The emphasis in these communications is on truth, learning, and persuasion reasoning. 3 Advertisers who use rational-based appeals are usually attempting to persuade customers that their product or service has a specific attribute(s) or offers a specific value that meets their needs. 10.3 CREATIVE STRATEGIES IN ADVERTISING Advertising Campaigns The majority of advertisements are part of a series of messages that make up an IMC, or advertising campaign, which is a collection of interconnected and organised marketing 127 CU IDOL SELF LEARNING MATERIAL (SLM)

outreach campaigns centred around a particular concept or idea that occurs in various media over a set period of time. Determining the campaign's unifying theme is an important step in the creative process since it sets the stage for the individual advertisements and other marketing messages that will be used. Since it is the core message that will be conveyed in all ads and other promotional events, a marketing theme should be a strong idea. Copy Platform The written copy platform lays out the foundations of the innovative approach. This document can be referred to as a creative platform or work plan, a creative brief, a creative outline, or a creative contract by different agencies. The copy platform is normally prepared by the account representative or manager assigned to the account. It could be written by someone from the analysis department or the strategic account planning department in larger agencies. Creative employees, as well as members from media and analysis, from the organisation team or community assigned to the account, have feedback. The copy platform is eventually approved by the client's advertising manager and/or marketing and brand managers. The Search for the Major Selling Idea Determining the core concept that will become the marketing campaign's main selling idea is an integral aspect of creative planning. According to A. Jerome Jeweller’s book Creative Strategy in Advertising. The most powerful single thing you can claim about your product or service should emerge as the big selling concept. This should be the claim that appeals to the target audience the most broadly and meaningfully. Once you've decided on a message, make sure you can live with it; make sure it's solid enough to be the focus of any ad and commercial in the campaign. It's difficult to trace the source of a big idea's inspiration, or to teach advertising professionals how to do so. Several methods, on the other hand, will help the creative team find a major selling concept and create successful advertising. The following are some of the most well- known approaches: • Making use of a one-of-a-kind selling proposition. • Developing a brand picture • Recognizing the drama that already exists. • Placement. 128 CU IDOL SELF LEARNING MATERIAL (SLM)

Unique Selling Proposition Rosser Reeves, former chair of the Ted Bates agency, introduced the idea of the unique selling proposition (USP), which he describes in his influential book Reality in Advertising. Special selling propositions have three characteristics, according to Reeves: 1. Every commercial must make a customer proposition. It's not just terms, product puffery, or storefront ads. “Buy this product and you will get this benefit,” each advertisement must state to each reader. 2. The proposition must be something that the competition can't or won't provide. Either the brand or the argument must be distinct. 3. The proposition must be compelling enough to attract tens of millions of new consumers to your brand. Creating a Brand Image It's difficult to identify or establish a specific feature or advantage to use as the main selling point in many product and service categories because rival brands are so similar. On a practical or performance basis, many of the packaged-goods items that account for the majority of advertising dollars spent in the United States are difficult to distinguish. The image advertising-driven creative strategy for selling these goods is based on the creation of a solid, memorable brand identity. Finding the Inherent Drama Another method for evaluating the big selling concept is to look for the product's intrinsic drama or feature that entices customers to buy it. The inherent drama approach reflects Leo Burnett's advertising philosophy, as founder of the Chicago-based Leo Burnett agency. Inherent drama, according to Burnett, is “often difficult to find but always there, and once found, it is the most compelling and convincing of all advertisement appeals.” 34 He believed that ads should be built around consumer benefits, with a focus on the dramatic aspect in presenting those benefits. Positioning In the early 1970s, Jack Trout and Al Ries introduced the idea of positioning as a foundation for advertising strategy, and it has since become a common basis for creative growth. 35 The basic concept is that advertisement is used to create or \"place\" a product or service in the minds of customers. Positioning is performed with both businesses and labels. 129 CU IDOL SELF LEARNING MATERIAL (SLM)

Appeals and Execution Styles The technique used to draw consumers' interest and/or affect their feelings about a product, service, or cause is referred to as advertising appeal. “Something that moves people, appeals to their desires or needs, and piques their interest” is another definition of an advertising appeal. 1 The creative execution style refers to how a specific appeal is transformed into a consumer-facing advertisement message. Informational/rational appeals Informational marketing focuses on the consumer's realistic, functional, or utilitarian need for the product or service, emphasising product or service features and/or the advantages or reasons for buying or using a specific brand. The emphasis in these communications is on truth, learning, and persuasion reasoning. 3 Advertisers who use rational-based appeals are usually attempting to persuade customers that their product or service has a specific attribute(s) or offers a specific value that meets their needs. 10.4 SALES PROMOTION Manufacturers and retailers both announce sales promotions. Consumers, resellers, or both may benefit from manufacturer-advertised promotions. Manufacturers can also disclose sales incentives for their sales staff. Consumer-targeted sales promotions can also come from retailers. The main goal of retailer-created promotions is to improve store traffic rather than to market a particular item. Market promotions revealed by manufacturers are based on a \"pull\" strategy, whereas retailer promotions are based on a \"push\" strategy. When sales promotions are combined with ads and \"pull-push\" tactics, they are more successful. TYPES OF SALES PROMOTIONS 1. Consumer Promotions Market promotional promotions are sales promotions aimed at end consumers. Consumer promotions are typically of the \"same for less\" or \"more for the same\" variety, which can take the form of a straight price reduction or added value. 'Interest promotions,' such as free samples, free premiums, competitions, and sweepstakes, may or may not require the purchase of anything. Such advertisements are designed to pique customer interest in goods, services, programmes, and special events. Free premiums, free samples, coupons, and patronage awards are examples of \"market franchise-building\" promotions, which strengthen consumer brand preference while still 130 CU IDOL SELF LEARNING MATERIAL (SLM)

including a product-related selling message. Price discounts, price bundles, premiums unrelated to the purchased product, competitions and sweepstakes, and ad refund deals are examples of \"non-franchise building\" promotions. The following are a few examples of widely used consumer promotions: Customers pay a certain amount less than the normal price of a good or service if they buy it within a certain time frame (also known as cents-off). This can result in a short-term sales boost, act as an opportunity to pursue a new product, and help with off-season product sales. Bonus-Pack: With the regular pack, an extra quantity of the purchased product is included for free. The manufacturer will create a larger-sized pack with more merchandise, but the price will be proportionately lower. \"Buy two, get one free\" is a variant of this bid. Low-bulk pieces or ready-to-wear skirts, as well as accessories, are usually excluded from these deals. There are a few instances where a consumer receives a 14-inch TV for free while purchasing a 21-inch TV. Samples: A sample is an offer of a small quantity of a product or service for free or at a low cost. One of the marketer's main concerns is getting the product into the hands of the customer, which is also the path to success in certain product categories and some services. The main goal of sampling is to get people to try a product for the first time and give them a first-hand experience with it. When a product is fresh and not a market leader, sampling is perhaps the most effective way to get people to try it. Premiums: A premium (gift) is a monetary incentive paid to a customer for doing a specific action, such as buying a product or service. The premium can be provided for free or at a significant discount from the normal market price. Premium items include getting a printer for free with the purchase of a device or getting a Swiss knife for a fraction of the retail price when a buyer buys a microwave oven. Rebate bid, also known as a refund or rebate, refers to a sum of money refunded to consumers after they send the necessary proof-of-purchase to the seller. Part of the price paid by the customer is \"refunded\" by the manufacturer via mail. Frequent-User Compensation: These are programmes designed to reward customers who buy a product or service on a regular basis, such as frequent-flier rewards for airline passengers. The aim is to promote repeat transactions or visits to a specific retail location. To promote store loyalty, local supermarket or general stores use this strategy on a daily basis with their regular customers. Typically, such programmes last for a long time to give consumers the opportunity to react positively. 131 CU IDOL SELF LEARNING MATERIAL (SLM)

Coupons: Coupons are certificates issued by distributors or retailers that entitle the bearer to a stated discount or claim on a specific item. Coupons have an expiration date and cannot be used after that date. A coupon is a flexible method that can be used to achieve a variety of sales marketing goals. Consumer contests, sweepstakes, and games: These promotions are known to elicit a lot of interest, excitement, and enthusiasm from customers. Individuals compete based on their ability to think critically or creatively. Participants have the chance to win cash, jewellery, flights, or merchandise. The contest entries are judged by a jury of judges, and the best one or more entries are declared winners. The names of participants in a sweepstakes are drawn at random. A game will give you a digit, a commodity, or a brand name. The prize is awarded to the customer who completes the task during the promotion period. Exchange or Buy-Back Offers: In India, certain consumer durables are not replaced for a long time after purchase. Companies or their registered dealers give buy-back or swap deals to allow those customers to substitute their old goods with new ones. The producer or dealer pays a fair price for the old product and replaces it with a new one. This latest product is often available in convenient interest-free instalments. Displays at the Point of Purchase: This category includes product demonstrations and displays in stores, as well as related information. \"Come get it, we have it,\" the message is simple. \"Jo Dikhta Hai Woh Bikta Hai,\" as the Hindi proverb goes (whatever is displayed, gets sold). Retailers often receive such displays from manufacturers. Retailers prefer POP materials that are appealing, insightful, and have a strong effect. Customer curiosity is piqued, store traffic is increased, and unplanned transactions are often made. Trade Promotions Resellers are the object of trade promotions (distributors, dealers, wholesalers, and retailers). Producers' \"drive\" policy includes trade sales promotions. The goals of trade sales promotions vary from those of consumer promotions. Producers understand the value of retailer help. They are the last point of touch in the distribution chain, and they have more power over consumers. Before making a purchase, consumers often seek advice from retailers, and retailers may also influence product selection. The following are the key goals of trade promotions: 1. Build strong relations with channel members. 2. To stimulate in-store merchandising support, such as arranging displays, shelf space, feature advertising etc. 3. Gain distribution of new products. 132 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Gain support for existing brands. 5. Manipulate levels of inventory held by wholesalers and retailers. Trade Allowances: Trade allowances are financial benefits offered to resellers in order to encourage them to make a purchase. A trade allowance may be provided in a number of ways, including: Buying Allowances: A supplier gives a reseller a certain sum of money or a discount in exchange for buying a certain minimum quantity of product within a certain time frame. Payment may be made in the form of a producer's check or a reduced invoice. Free Goods: A reseller must purchase a certain number of product cases, and for each case purchased, a certain amount of free product is given. \"One pack containing one dozen of product free with the purchase of 12 packs,\" for example, may be the deal. Slotting Allowances (also known as stocking allowances or introductory allowances) are payments made to retailers in order for them to stock new items. Retailers explain this by referring to the costs they incur by stocking too many new goods every year, as well as the risks associated with new products, according to William L. Wilkie, Debra M. Desrochers, and Gregory T. Gundlach. This form of allowance is unpopular among many businesses. Producers occasionally provide retailers with the ability to restock. This sale comes right after another form of offering, and it provides discounts on new purchases. If retailers' inventory levels are very low or nearly depleted after the first promotion, producers can give this second incentive to restore retailer inventory levels to normal. Allowances for Advertising: The seller pays the distributor or retailer a certain sum of money to advertise the producer's product. This sum may be a fixed amount in rupees or a percentage of gross purchase for a set period of time. Display Allowance: If the party decides to set up a POP display or run an in-store promotional programme as defined by the marketer, the retailer will receive a direct payment of money or free merchandise for each item purchased. Before the allowance is issued, the marketer allows the retailer to sign an agreement describing the operation to be performed. Manufacturers often use trade competitions and special offers to entice dealers and salespeople to increase their support and commitment in order to meet sales goals and other 133 CU IDOL SELF LEARNING MATERIAL (SLM)

objectives. Prizes may involve televisions, stereos, and trips to exotic locations, among other things. These competitions and promotions are often given to manufacturers, suppliers, wholesalers, and retailers' salespeople. These incentives consist of cash payments to salespeople who are specifically hired to market the producer's product. Push money, also known as SPIFF, is a form of cash payment. The retailer offers to share a portion of the media expenses for selling his goods with the distributor. This offer is normally dependent on the number of products purchased. Only after the dealer Cooperative Advertising can provide evidence that the advertisements were published can payment be made. The majority of these advertisements appear in newspapers. A dealer loader is a bonus that a marketer offers to customers in exchange for purchasing a certain quantity of a commodity. A dealer loader could be a bonus for retailers who simply purchase a certain quantity of a commodity, or it could be a prerequisite to display the item for the duration of the promotion, after which the item is offered to retailers as a bonus. Manufacturers provide training on their own products to sales staff from wholesalers and retailers at their (wholesaler's or retailer's) site. According to Michele Marchetti and Andy Cohen, Microsoft has introduced a training programme for value-added resellers called \"Helping Clients Succeed.\" The three-day workshop was created to assist resellers in gaining a deeper understanding of Microsoft software. 10.5 PUBLICITY Publicity is an essential tool in a public relations campaign, and the words are sometimes used interchangeably. The production of news about a business, commodity, service, or individual in print or broadcast media is referred to as publicity. 'Public relations' is a well- planned, long-term strategy for disseminating positive information about an organisation and its operations. Publicity is typically a short-term affair that is not necessarily under the control of the company because it is not paid for by the company and hence may not be favourable. Publicity, whether positive or negative, often comes from outlets other than the business. Everyone claims that publicity comes from unbiased outlets with no financial ties to the business and is thus highly reliable. Consumers believe that knowledge obtained by public relations is more objective. All other advertising elements are under the control of the corporation and are regarded as less trustworthy. Publicity is a potent tool that has the ability to make or break a product or even a business. There was a significant decrease in revenue after press stories of unsafe levels of pesticides in Coke and Pepsi. Consumers of all ages were deeply worried and offended in significant numbers. These soft drink producers had no 134 CU IDOL SELF LEARNING MATERIAL (SLM)

influence over the negative publicity because TV news channels welcomed viewers from different parts of society, especially younger groups and parents, to participate in discussions. Consumers believe that the medium in which advertisements appear validates the facts. Publicity may be beneficial to businesses. Apple Computers' iPod has become a best seller due to a high degree of positive publicity. Marketers prefer to have as much influence as possible over the timing, location, and quality of their publicity. Some businesses do this by issuing a video press release. This is a marketing storey produced by public relations experts for broadcast on news channels. High reputation, news relevance, important word-of-mouth communications from interpersonal outlets, and the feeling of getting media endorsement are all advantages of publicity. The timing of a news release is almost entirely up to the media, it is not always covered the way the provider intends it, and there could be mistakes due to omissions and inaccuracy. 10.6 EVENT SPONSORSHIPS Event sponsorship serves as a promotional tool as well as a public relations tool. The distinction between sponsorship and event sponsorship is blurred. Corporate sponsorship of charities and worthwhile causes is a common way for businesses to improve their public image. Many sporting events, such as the Olympics, World Cups, international cricket matches, and other major events, have corporate sponsors as part of MPR. The Indian cricket team is sponsored by Sahara India. Many businesses that sell cigarettes, liquors, automobiles, soft drinks, airlines, and high-tech devices, among other things, sponsor activities. Soft drink companies, for example, often organise their own activities. Such activities garner a lot of attention from target markets and bring a company's or brand's name in front of customers. Companies are increasingly discovering that event sponsorship is an important public relations method. 10.7 SUMMARY • Direct marketing employs a variety of direct-response media, including print, television, the Internet, and cellular phones, to carry out communications and achieve its goals. • Public relations are a deliberate, organised, and sustained attempt to create and preserve reciprocal understanding between an organisation and the public. • Publicity is an essential tool in public relations, and the words are interchangeable. 135 CU IDOL SELF LEARNING MATERIAL (SLM)

• Publicity refers to the dissemination of information about an organisation, commodity, service, or individual through print or broadcast media. • Corporate advertising seeks to improve and preserve a company's or institution's reputation. • The aim of organisations and brands is to increase mutual trust. 10.8 KEYWORDS • Corporate Advertising: Aims to build company’s image • USP: Unique selling Preposition • Infomercials: Direct response marketing on cable and satellite • Public Relations: Deliberate effort to maintain long-term relations with public • Publicity: Unpaid form of promotions mainly through other sources 10.9 LEARNING ACTIVITIES 1. Case Study Pizza Hut has a sense of occasion, of being there at the right time. Be it a heart-shaped pizza on Valentine's Day or a special promotion during the Cricket World Cup, Pizza Hut is on the ball - with eye catching promotions. In the summer of 2000 in New Delhi, Pizza Hut launched its innovative Pizza Pooch menu as well as a Birthday Party package exclusively for kids in the 6 - 10 years age group. Senior marketing manager, Tricon Restaurants International said, \"There is a specific reason to cater to this segment. Though, at this age children are under their parents' guidance, they perceive themselves to be teenagers and have the ability to choose or demand a particular brand of their own choice.\" The $ 20 billion Tricon Restaurants that owns Pizza Hut, Taco Bell and Kentucky Fried Chicken (KFC) has nearly 29,000 outlets globally. The largest number of Pizza Hut outlets is in Paris, followed by Moscow and Hong Kong. Pizza Hut started operations in India nearly seven years ago with just a single outlet. It has realised the cultural differences in India and importance of religion in the consumption pattern of certain sub-cultures. Today it has spread in several cities and it also has a 100 per cent vegetarian restaurant in Ahmedabad. Innovative promotional activities and a popular logo have helped Pizza Hut expanding. The senior marketing manager said, \"Our focus is not just on offering a great pizza but also on providing 136 CU IDOL SELF LEARNING MATERIAL (SLM)

excitement and good customer service.\" The manager further emphasised on the customer focused operations and intensive research done to find customer needs and satisfaction. Besides, Pizza Hut conducted in-house research on psychographics of Indian consumer that led to the use of cartoon characters in campaigns. The Indian Market Research Bureau (IMRB) also carries out regular surprise checks at different outlets to monitor the quality of service. Moreover, a regular test, CHAMPS (Cleanliness, Hospitality, Accuracy of order, Maintenance, Product quality and Speed of service) is conducted inhouse. The company says that its Pizza Pooch birthday package is full of fun and excitement. What is unique in the package is the nominal price of 125 per child that offers much more than only goodies in the main menu. The birthday party includes a well-decorated area within the Pizza Hut outlet with several gifts for the children. Moreover, the party is conducted by a trained host with lots of games, prizes and a special gift for the birthday child. Pizza Hut, better known as a family restaurant, takes the onus of relieving parents of the cumbersome job of clearing up the mess after the kiddies have enjoyed themselves thoroughly. The Pizza Pooch menu, on the other hand, includes a wholesome delicious meal and a gift for the child. The menu has been intricately designed with pictorial games. A free set of crayons is provided to keep the children occupied while their parents dine. The campaigns created by HTA are eye-catching with cartoon characters on the mailers, hoardings and print advertisements where the cartoon characters are aimed at matching varying moods of kids. The birthday party concept is not entirely original - local fast food major Nirula's has been doing it for years as does KFC. Questions 1. Do you think Pizza Hut promotion is successful? Give your reasons. 2. Suggest one alternative promotion to attract girls to Pizza Hut. Why do you think this would be successful? ___________________________________________________________________________ 10.10 UNIT END QUESTIONS A. Descriptive Questions 137 Short Answers 1. What are advertising campaigns? 2. What is copy Platform? 3. What is USP? 4. What is Event Sponsorship? CU IDOL SELF LEARNING MATERIAL (SLM)

5. What are consumer promotions? Long Answers 1. Brief about planning & Development of Creative Marcom. 2. Describe Creative strategies in Advertisement. 3. Describe Sales Promotion 4. Describe Trade Promotion 5. Describe Event Sponsorship B. Multi Choice Questions 1. In general, the single-voice, or synergy principle, involves selecting a specific __________________________ for a brand. a. positioning statement b. marketing mix c. pricing strategy d. advertising budget 2. _________ can be defined as the way by which organizations attempt to inform, convince and remind customers indirectly or directly about the brands and products they offer. a. Marketing communications b. Marketing plans c. Marketing strategies d. None of these 3. Which of the following strategies is usually followed by B2C companies with respect to promotion strategy? a. Push strategy b. Pull strategy c. Blocking strategy 138 CU IDOL SELF LEARNING MATERIAL (SLM)

d.Integrated strategy 4. IMC Stands for a. Integrated Marketing Corporation b. Integrated Marketing Company c. International Manufacturing capacity d. Integrated Marketing Communications 5. The concept of ______________ suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. a. Public relations b. Integrated market planning c. Integrated marketing communications d. Global cultural imperatives Answers 1 - a, 2 –a, 3 -b, 4 –d, 5 -c 10.11 REFERENCES • Advertising Management, Jayshree Jethwaney & Shruti Jain, Oxford University Press • Advertising & Promotions: An IMC perspective, Kruti Shah and Alan D’Souza, Tata McGraw Hill • Advertising Management, Aakar, Batra and Myers, Prentice • Advertising & Promotions, S H Kazmi and Satish K Batra, Excel • Advertising; Principles and Practice, Wells, Moriarty and Burnett, Pearson • Advertising & Promotion: An IMC approach, Terence A. Shimp Pub., Cengage Learning 139 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 11. CREATIVE STRATEGY IN IMPLEMENTATION AND EVALUATION OF MARCOM Structure 11.0 Learning Objective 11.1 Introduction 11.2 Types of appeals and execution styles 11.3 Media planning and selection decisions- steps involved and information needed for media planning 11.4 Measuring the effectiveness of all Promotional tools and IMC. 11.5 Summary 11.6 Keywords 11.7 Learning Activities 11.8 Unit End Questions 11.9 References 11.0 LEARNING OBJECTIVE After studying this unit, you will be able to: • Explain the Types of appeals and execution styles • Describe Media planning and selection decisions • Describe effectiveness of all Promotional tools and IMC. • List down steps involved in media planning 11.1 INTRODUCTION For an innovative marketing communication strategy, a new perspective must be introduced. In a rapidly evolving international climate, the marketplace is becoming an increasingly dynamic arena of competitors' activities. In these sophisticated and cluttered market environments, businesses strive to be understood. They make every effort to communicate their operations, goods, and services in a simple and concise manner. It's important to make sure that whatever is conveyed gets to its intended audience in a straightforward and 140 CU IDOL SELF LEARNING MATERIAL (SLM)

consistent manner. Marketers use communication as a one-of-a-kind tactic to convince customers to behave in a certain way. The aim of communications is to influence individuals, groups, and organisations to promote exchanges by informing and persuading one or more audiences to embrace a company's goods and/or services, either directly or indirectly. Indirectly, organisations influence exchanges by sharing relevant information about their operations and products/services to interested parties such as current and prospective investors, regulatory agencies, financial institutions, and society in general. Marketing communications assist a business in justifying its presence and maintaining productive and stable relationships with various groups. The current view of marketing communications is that it is an ongoing dialogue between the organisation and its audiences, and that any form of brand contact with consumers is significant because it communicates something that can boost or weaken the company's image. 11.2 TYPES OF APPEALS AND EXECUTION STYLES Emotional appeals include: Personal Appeal- Love, joy, self-esteem, satisfaction, safety, and family well-being are all important emotions to consider. Social Appeal- Individual needs for acknowledgement, respect, participation, association, and rank are emphasised. Fear Appeal- Individual needs are prioritised based on concerns of losing one's wellbeing, protection, or attractiveness. Humour Appeal- It has been shown that “humour” sells because an entertaining humorous message improves focus, association, and memory retrieval. Female appeal, music appeal, scarcity appeal, brand appeal, adventure appeal, endorsement, romance appeal, and other types of appeals are also popular. The next step in using a particular appeal is to evaluate the promotional executional types. This is crucial to get correct, and it must correspond to the form of appeal. Executional styles include: Lifestyle: Shows \"how\" the product or service will \"fit\" seamlessly into the consumer's lifestyle or improve their comfort or quality of life—one of the most common and important current strategies. Since they have the product illustrated, this format may be correlated with 141 CU IDOL SELF LEARNING MATERIAL (SLM)

personal appeal, allowing the viewer to want the lifestyle they see others in the commercial enjoying. If a customer can't \"see\" and \"feel\" the value of a product or service, they won't buy it. Lifestyle “shows” the customer “how” to use the product and generates a desire for it. (For example, a lovely new collection of lawn furniture being enjoyed by a family). Slice-of-Life: Another common style, which is typically associated with social appeal, portrays people in everyday situations having a good time because of a product or service. This approach aims to elicit a sense of attachment to an offering by demonstrating how “they” could experience a slice of good life if they participated in the offering. (For example, a commercial depicting a luxury cruise.) Spokesman/Testimonial/Endorsement: Having celebrities or experts clarify a product is a common way for customers to gain trust in a brand. However, confidence must be earned authentically, rather than by the use of a paid spokesperson who is not affiliated with the company. Consumers are smarter than ever before, and loyalty and confidence can only be won, not bought. Fantasy: Creating a fantasy about a product and what it can do for a customer often coincides with a psychological appeal—the desire to associate with something larger than oneself. (For example, the status of owning a sports car and the fantasy of impressing a beautiful woman with it.) Humorous: To engage a customer in something amusing and memorable, it aligns directly with the humour appeal. For better success, more than 30% of commercials use humour. Other execution styles include musical, scientific, mood/image. Overall, being creative is necessary, but before being creative in the right direction, one must first decide the campaign's intent and target audience. Following that, a creative direction will be provided by an acceptable form of advertisement appeal and execution style. The most amusing message in the world does not have the desired impact if it fails to elicit the appropriate emotional awareness of a need and appeal in the individual who “sees” the advertising. 142 CU IDOL SELF LEARNING MATERIAL (SLM)

11.3 MEDIA PLANNING AND SELECTION DECISIONS- STEPS INVOLVED AND INFORMATION NEEDED FOR MEDIA PLANNING Media planning is an empirical framework for making media decisions that explains the process of getting the message to the target audience at the right time and in the right place, using the appropriate media vehicle. As we all know, media planners collaborate closely with the creative community. The course of media strategy is often determined by the imaginative execution. Media preparation, on the other hand, influences artistic execution. The term \"media strategy\" comes from the term \"advertising plan.\" The marketing strategy, in turn, is derived from the advertising plan. The marketing strategy takes into account the entire marketing landscape and establishes marketing goals. We create marketing campaigns to achieve these goals. There is a strategy for putting these tactics into effect. The promotional strategy is laid out in the advertising plan, which is derived from the marketing strategy. In addition, we set promotional goals in terms of revenue and communications. The advertising strategy is created by the advertising campaign in order to achieve these goals. Advertising strategy, or message strategy, is what determines what to say. Art directors carry out this policy by choosing appropriate output values. It's referred to as \"creative strategy\" or \"execution.\" The entire advertising strategy must be implemented within a set budget – the advertising budget. The promotional campaign informs our media strategy. It establishes the media's goals. Media techniques are used to achieve the goals. We must choose media vehicles as well as a media schedule. The set of decisions involved in transmitting the promotional message to potential customers is known as media preparation. It is the method of delivering a marketing message to a target audience through the use of the appropriate medium at the appropriate time and place. The planning should concentrate on: i. Whom to reach, ii. When and where to reach, iii. The total target group, 143 CU IDOL SELF LEARNING MATERIAL (SLM)

iv. The frequency of exposure, v. The affordable cost involvement. After all of the above problems have been resolved, decisions are made to formulate the media strategy. The coordination of three levels of strategy creation – a) Marketing Strategy, b) Advertising Strategy, and c) Media Strategy – is needed for media planning. The advertisement strategy and media strategy are created based on the marketing strategy. Factor 1. Nature of Product: The marketed product may be either an industrial/technical or a consumer product. Relevant trade journals/magazines are best for advertising industrial/technical goods. Television, newspapers, outdoor advertisements, and other forms of mass media may be used to help market consumer goods. Similarly, goods for farmers, such as fertilisers and seeds, can be sold on television, radio, and in murals. Factor 2. Nature of Customers: The type or number of customers for whom advertisement is to be done must be considered when creating an acceptable media strategy. Different customers have different age groups, sexes, income levels, personalities, educational levels, attitudes, and so on. Consumer classes may be classified as men, women, children, young, elderly, professionals, businessmen, high- income, middle-income, low-income, literate, illiterate, etc. based on consumer characteristics. Some of the consumer traits affecting media selection are described below: (a) Age – Television is the most effective medium for sharing messages about children's goods. Advertisements can be seen on cartoon channels on television. If the target audience is young, television, magazines, and the internet are appropriate. If your target audience is over the age of 50, newspapers and television are good options. (b) Level of Education – If the target audience is well-educated, ads should be shown in magazines, national newspapers, the internet, and television, among other places. If the target audience is less educated, such as in rural areas, local newspapers printed in local languages, television, and other media are appropriate. If your target audience is illiterate, print media isn't the best option. Broadcast media is a successful option in this case. 144 CU IDOL SELF LEARNING MATERIAL (SLM)

(c) Number of Customers – If the number of target customers is large, mass media such as television and newspapers would be appropriate. Direct mail-media and tele-advertising (advertising over the phone) are appropriate if the number of target customers is small. Factor 3. Distribution of Product: If the product is to be sold locally or regionally, local newspapers, cable networks, and other media with local coverage and scope should be considered. If the product is sold on a national level, national dailies (newspapers) and national-level television channels would be appropriate. If the product is to be marketed on a global scale, then media with a scope and distribution in other countries, such as the internet, magazines with international circulation, and television networks with international coverage such as the BBC and CNN, should be considered. Factor 4. Advertising Objectives: Any advertising campaign's main goal is to elicit a favourable response from customers, but the precise goals will vary. If the aim of an advertisement campaign is to get a quick result, fast media such as newspapers, banners, and pamphlets would be considered. Magazines, television, and neon signboards would be considered if the aim of ads is to create corporate credibility and brand equity. Factor 5. Nature of Message: Newspaper is appropriate for advertising messages that are informative in nature. If the goal of an ad message is to convince consumers, and potential customers need emotional appeal, logical appeal, and product demonstration, then television is an appropriate medium for advertising. If the aim of the advertisement is to warn potential customers about sale- promotion schemes, discount deals, trade offers, or festival offers, it can be advertised using posters, banners, newspaper inserts, and newspapers, among other methods. Factor 6. Size of Ad-Budget: If the advertising budget is larger, more expensive media such as television and national newspapers may be chosen. If your advertising budget is restricted, low-cost media such as posters, banners, cable networks, local newspapers, and pamphlets will suffice. Factor 7. Media Used by Competitors: Advertisers must understand the media used by rivals and market leaders when preparing media. If an advertiser fails to accept a competitor's media move, the advertiser's market 145 CU IDOL SELF LEARNING MATERIAL (SLM)

share will be seized by the competition. If the market leader uses television as a medium, the advertiser can do the same. The advertiser must keep a close eye on rivals' media campaigns and ad budgets. However, competitors' tactics should not be blindly pursued, since it is likely that the competitor's decision is incorrect. Factor 8. Media Availability: It's likely that the ideal ad space in print media has already been reserved by another advertiser and is hence unavailable. If an advertiser wishes to place an ad on the front page of a newspaper or the cover page of a magazine, but the space has already been reserved by another advertiser, the advertiser would be unable to do so. As a result, the advertiser would need to prepare for another medium or alter the timing of his advertising. Similarly, if an advertisement is to be shown on television during a specific programme, it is likely that other advertisers have booked/sponsored it. As a result, media availability must be factored into media preparation. Factor 9. Media Reach and Coverage: Such media should be chosen because they have a broad scope and can reach our target audience. If an advertiser has two options for media at the same price, the one with the most exposure and coverage of our target audience will be chosen. The cumulative circulation/viewership of media in a given period of time is referred to as media reach (say, one day). If an advertisement is broadcast on television, the expected audience size of the television programme in which the advertisement is broadcast for a given period of time is referred to as its scope. It counts the number of people who have been exposed to this media at least once in a given period of time. If an advertisement is placed in a newspaper, for example, the number of copies distributed in a given period of time (say, a day) is referred to as its scope. The number of target consumers exposed to media by an advertiser in a given time span is referred to as media attention. It is probable that a media's scope is high, but its coverage for advertisers is weak, i.e., the media has a large circulation, but it is not well-liked by the advertiser's target customers. As a result, such media is of no use to the advertiser. The advertiser should choose a medium with a broad scope and coverage. Advertisers also use a variety of media to improve representation of target consumers (media-mix). Factor 10. Media Frequency: 146 CU IDOL SELF LEARNING MATERIAL (SLM)

The average number of times the viewer is subjected to a media vehicle in a given period of time is referred to as media frequency. It is preferable to have a higher media frequency. The more often an advertisement is broadcast, the more likely it is to leave a lasting impact on consumers' minds. In the case of print media, newspaper frequency is low since the recipient is not exposed to the same newspaper for an extended period of time. He will receive a new newspaper the next day, and the existing newspaper will be discarded the same day. In the case of a magazine, the media-frequency is higher because the same magazine may be opened several times by the viewer because he will receive the next issue of the magazine after a month, a fortnight, or a week. A higher frequency would give the target audience a stronger perception. As a result, media with a higher frequency should be chosen. Factor 11. Media Image: In contrast to other media vehicles, some media vehicles have a better picture. Advertisement's contact importance is enhanced by media-image. Since editorial boards with a good reputation and well-established media have a stronger public image, ads placed in those media have more credibility and confidence. As a result, media with a positive picture should be chosen. The perception of the media has an effect on the image of the product and the advertiser. As a result, we should avoid choosing media with a negative picture. Factor 12. Media Discount: Occasionally, certain media deliver enticing discount schemes. These discount mechanisms are taken into account by advertisers when choosing media because they lower their media costs. Some marketers use only one channel or one class of media on a daily basis in order to qualify for media discounts given to regular consumers. Factor 13. Language: The advertiser chooses a medium that communicates in a language that our target consumers are familiar with. For example, if an advertisement is placed in an English newspaper for consumers who are less educated, the advertisement would be of little benefit. 147 CU IDOL SELF LEARNING MATERIAL (SLM)

11.4 MEASURING THE EFFECTIVENESS OF ALL PROMOTIONAL TOOLS AND IMC Measuring for the sake of numbers loses the point entirely. If you want to get a good picture of what's going on, you need to figure out what the best items to test are first. Marketers usually go through a process of defining primary success metrics to accomplish this (often called KPIs). A key performance indicator (KPI) is a metric that shows how far a company has progressed toward its goals. The KPI is not the same as the company's actual target or objective; rather, it is a measurable indicator that allows managers to see how well they are doing against the goal. Consider the following scenario: you are a track coach who needs to collect data on your sprinters. The athletes' foot sizes, how many cups of sweat they create during a daily workout, how hard their hearts beat during a sprint, and so on could all be measured. Will any of those measurements be considered KPIs? Maybe not. You might decide that the best and average running times of sprinters are the most important performance indicators (or something else). In a company, KPIs can be determined for many different levels of the organization. These are described below: KPIs at the business level show how well the company is doing in terms of total sales, profitability, customer loyalty, market share, and percentage growth in the customer base. KPIs at the departmental level keep track of results. It may be brand recognition, the amount of qualified new leads produced, the cost per lead generated, or the conversion rate: the percentage of leads converted into customers for the marketing department. KPIs that monitor the impact and efficacy of a team's activities are called team-level KPIs. For example, a digital marketing team might monitor KPIs like email marketing click rates, the number of Web site visits, or SEO sales conversion rate: the percentage of people who visit the site through a search engine and make a purchase. KPIs at the campaign level monitor the effectiveness of individual campaigns. It's simple to see which strategies are most effective with target audiences by monitoring common metrics across different campaigns, and then using the knowledge to optimise techniques and repeat successful approaches. KPIs at the campaign level are somewhat dependent on the campaign design; for example, campaigns usually monitor the \"open\" rate, which is the number of 148 CU IDOL SELF LEARNING MATERIAL (SLM)

people who open an email message after it has been delivered. The open rate does not exist if a campaign does not use email. However, marketers can monitor certain \"common denominator\" campaign indicators through IMC activities to assess impact and success. For virtually any campaign, metrics such as cost per impression, impressions per campaign, and conversion rate can be monitored. Person marketing strategies and tools are measured using marketing tactic-level KPIs. Content-marketing KPIs, for example, monitor the effectiveness of individual pieces of content used on a website and in IMC campaigns. These metrics, such as the number of page views per article and the number of social media shares, provide advertisers insight into which types of content are most common with target consumers and which content pieces receive little attention. Depending about what they're trying to do and the tactics they're using to get there, different businesses choose different sets of KPIs. At any given stage, it's critical to keep the total number of KPIs to a minimum and focus on the ones that are most relevant and reflective of success. Managers have difficulty prioritising and homing in on what is most critical when so many items are calculated. A business can monitor a variety of other metrics to inform its operations in addition to KPIs, which represent key, strategic indicators of progress. Defining the Metric Every marketing metric or KPI requires some type of measurement, and it should be based on legitimate data. When marketers define a KPI, they should also define what data will be used to calculate the KPI, as well as the source of that data. At times, different people or teams might have different assumptions about how to calculate the metric, so it is wise to clarify this during the definitional stage. It isn’t uncommon for people to identify KPIs and then discover that they don’t have ready access to the information needed for measurement. This can be a good motivator for defining a process to obtain that information. Or it can be a cue that perhaps a different KPI based on more readily available information would be a better option. When to Measure When to quantify depends on what advertisers and managers have access to monitor and maintain. If generating a KPI report requires a lot of manual labour, or managers are spending hours per day or week collecting and reporting metrics, it could cut into valuable work time—and it's a good idea to look into alternatives. Fortunately, CRM and other 149 CU IDOL SELF LEARNING MATERIAL (SLM)

programmes that incorporate KPI dashboard reports into their daily operations are readily accessible. In these cases, systems calculate KPIs automatically, making them simple to track over time and change course as required. Managers should typically review KPIs at least once a quarter to assess progress and learn what is working and what needs to be improved. 11.5 SUMMARY • One of the four main components of a company's marketing mix is marketing contact. Sender, receiver, encoding, decoding, post, media, response, input, and noise are the nine elements that make up the communication process strategy. “Promotion is the coordination of a seller's efforts to create knowledge and persuasion networks in order to promote the selling of goods/services or the acceptance of an idea.” • Promotion fulfils three important functions: it informs, persuades, and reminds potential customers about the business and its goods. A company's promotional mix is a combination of advertisement, personal selling, sales promotion, public relations, and direct-marketing techniques used to achieve its marketing goals. 11.6 KEYWORDS • Communication: It means to give or exchange information. • Integrated Marketing Communication: It is a management function designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force. • Promotion: It is the co-ordination of seller’s aim to set up channels of information and persuasion to facilitate the sales of goods/services or acceptance of an idea. • Promotional Mix: It involves several different types of communication to support marketing goals which include Advertising, Personal selling, Publicity, and Sales promotions. • Public Relations: It is a management function that involves monitoring and evaluating public attitudes and maintaining mutual relations and understanding between an organization and its public. 150 CU IDOL SELF LEARNING MATERIAL (SLM)