INTEGRATED

MARKETING
COMMUNICATIONS
13/10/2012 The new life
Agenda
Industry analysis
IMC
Insights
Careers
Agency Remuneration
What next
Industry Analysis
2011
Cricket world cup
Anna Hazare crusade
Kolaveri Di

Reach of Indian media
146 million tv viewing households, 623
channels
82,000 newspapers with readership of 181.91
million
132 million indian internet users

Indian Media and Entertainment landscape
Industry size and growth
Segment Revenues 2011 Growth% Advertising
revenue
Print 208.8 8.3 139.4
TV 329 10.8 116.1
Film 92.9 11.5
Digital advertising 15.4 54 15.4
Music 9 4.7
Outdoor 17.8 7.6 17.8
Radio 11.5 15 11.5
Animation and VFX 31 31.2
Gaming 13 30
Total 728 11.7 300
Indian Media Business-3, Vanita Kohli Khanolkar 2010
Rs Billion
Media size
Bennett Coleman-
43.62 b
Zee 23.25 b
Star India - 16 b
Network 18 14.26 b
Sony - 14b
Sun 14.90 b
HT Media 14.53
Dainik Bhaskar 10.78
b
NDTV 10.70
Deccan Chronicle
10.67
Growth drivers - 12-13%

Major Players
4 large groups
WPP: Ogilvy, J. Walter Thompson, 141 Worldwide,
Y&R, Grey Global
$16 b 2012
Publicis: Publicis, Leo Burnett, Saatchi &
Saatchi
$7.7 b 2012
Interpublic: Lowe Worldwide, McCann Erickson,
Momentum
$7 b 2012
Omnicom Group: DDB Mudra, BBDO Worldwide,
TBWA
$13.9 b 2012
Sir Martin Sorrell
Jew, Think British, Act
Yeddish
Worked with Mark
McCormack, IMG
WPP in 1985
Invested in small media
companies till he did hostile
takeover of JWT(97)and
Ogilvy(99)
Net worth $ 200 m
Knighted in Millennium
Powerlist
Concepts
Marketing is the process of planning and
executing the conception, pricing,
promotion, and distribution of ideas, goods
and services to create exchanges that
satisfy individual and organisational
objectives

IMC: Integrated Marketing
Communications
Definition of Integrated
Marketing Communications
A concept of marketing communications planning that
recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communication
disciplines and combines these disciplines to provide clarity,
consistency and maximum communications impact.

The Marketing & IMC Mixes
Marketing Mix:

Product or Service
Pricing
Distribution
Promotion
Promotional Mix:

Advertising
Direct Marketing
Interactive/internet
marketing/Mobile
Sales Promotion
Publicity/Public
Relations
Personal Selling

Any paid form of nonpersonal communication
about an organization, product, service, idea
or cause by an identified sponsor.
Advertising
Disadvantages of advertising
High costs of producing and
media
Credibility problems and
consumer skepticism
Clutter
Difficulty in determining
effectiveness


Advantages of advertising
Advertiser controls the
message
Cost effective way to
communicate with large
audiences
Effective way to create brand
images and symbolic
appeals
Often can be effective way to
strike responsive chord with
consumers
THE PRIMARY FUNCTION OF ADVERTISING IS TO CONVERT PRODUCTS INTO BRANDS
Advertising objectives
Increase sales, increase turnover, increase
footfalls

Increase awareness, increase recall, improve
imagery, increase intention of purchase
Classifications of Advertising
Advertising to Consumer Markets
National advertising
Retail/local advertising
Advertising to increase demand
Primary demand for the product category
Selective demand for a specific brand
Business & professional advertising
Business-to-business advertising
Professional advertising
Trade advertising
A system of marketing by which
organizations communicate directly
with target customers to generate a
response and/or a transaction.
Direct Marketing

Disadvantages of direct marketing
Lack of customer receptivity and very
low response rates
Clutter (too many messages)
Image problems particularly with
telemarketing

Advantages of direct marketing
Changes in society have made
consumers more receptive to direct-
marketing
Allows marketers to be very selective
and target specific segments of
customers
Messages can be customized for
specific customers.
Effectiveness easier to measure
Direct Marketing
Direct marketing methods
Direct mail
Catalogs
Telemarketing
Direct response ads
Direct selling
Internet
SMS
Direct person-to-person communication
whereby a seller attempts to assist
and/or persuade perspective buyers to
to purchase a product or service.
Personal Selling
Disadvantages of personal selling
High costs per contact
Expensive way to reach large
audiences
Difficult to have consistent and
uniform message delivered to all
customers

Advantages of personal selling
Direct contact between buyer and
seller allows for more flexibility
Can tailor sales message to
specific needs of customers
Allows for more direct and
immediate feedback
Sales efforts can be targeted to
specific markets and customers
who are best prospects.
Coordinating the promotional mix
elements to develop a controlled,
integrated program of effective
marketing communications.
Promotional Management
Considerations for developing the
promotional program include:
Type of product- urban/metro
Buyers decision process impulsive/
Planned/ shopping
Stage of product life cycle
Channels of distribution
Public Relations
Tools used by Public Relations
Publicity
Special publications-Teller, Harmony
Community activity participation Orange
Fund-raising ICICI credit cards
Special event sponsorship- Manikchand FF
Public affairs activities Kala Ghoda festival
BPL
The management function which evaluates public
attitudes, identifies the policies and procedures of
an individual or organization with the public interest,
and executes a program of action to earn public
understanding and acceptance.
Marketing activities that provide extra
value or incentives to the sales force,
distributors, or ultimate consumers and
can stimulate immediate sales, eg
premiums
Sales Promotion
Trade-oriented
Targeted toward marketing
intermediaries such as retailers,
wholesalers, or distributors
Promotion allowances
Merchandise allowances
Price deals
Sales contests
Trade shows
Consumer-oriented
Targeted to the ultimate users
of a product or service
Coupons
Sampling
Premiums
Rebates
Contests
Sweepstakes
POP materials
Information Flow
Push Versus Pull
Push Policy
Producer
Retailer
Consumer
Wholesaler
Pull Policy
Producer
Wholesaler
Retailer
Consumer
"Push" Techniques
Point of sale displays, racks, stands
Trade deals, special displays
Dealer premiums, prizes, gifts
Cooperative advertising deals
Advertising materials, mats, inserts
Push money or "spiffs"
Collaterals, catalogs, manuals
Trade shows, conventions, meetings
"Pull" Techniques
Sampling, free trial
Coupons
Premiums or gifts
Contests, sweepstakes
Price-off deals
Refunds/rebates
Frequency/loyalty programs
Point-of-purchase advertising
Large ad agencies in India as per
billings -
No. Agency
1
Ogilvy india
2
JWT India
3
McCann Erickson India
4
Mudra Communications
5
Lowe India
6
Leo Burnett India
7
Rediffusion DYR
8
Draftfcb Ulka
9
Grey Worldwide
10
R K Swamy BBDO
Bombay Ad Club
Creative Strategy: Planning and
Development
The triangle of delight

Creative
Media
Client Service
Advertising
Responsibilities of an CSE
Brief
Strategy/Insights
Creative
Media
Financials
Collection Monitor
Research
Brief
Understand the product
Manage the information
Learnings from
research
Select the key benefit
Excite the creative team
Advertising Creativity
CREATIVE STRATEGY:
Determining what the advertising
message will say or communicate



CREATIVE TACTICS:
Determining how the message strategy will be executed

ADVERTISING CREATIVITY
Two perspectives on advertising creativity




Advertising Creativity:
the ability to generate fresh, unique and
appropriate ideas that can be used as solutions to communication problems.
Suits

Its not creative unless
it sells
Poets

Artistic/aesthetic value
and originality
Advertising Objectives
Informative announce,
create awareness,
educate consumers,
tackle benefit barriers,
building positive imagery

Persuasive- create
preference, induce
trials/purchase, shift
loyalties, create cognitive
dissonance

Reminder- maintain TOM
awareness,
How does an advertising agency
function?
Science of
marketing
management
meets the art of
creative
90% perspiration
10% ideation
How does advertising work?
Consumers pay most attention to
messages which are relevant to their own
circumstances and point of view
Messages act as signposts
Consumers do things if the message
motivates them to shift from their current
views
ESP vs. USP
Selling Proposition- Unique/
Emotional
Each advertisement makes a proposition to
the customer
It must be one the competition cannot or does
not offer
It must be strong enough to pull over new
customers to the brand
Three characteristics of a unique selling proposition:
An ad that uses a unique selling proposition
Creating a Brand Image
Used when competing brands are so similar it is
difficult to find or create a unique attribute
The creativity strategy used to sell these
products is based on a strong, memorable
identity for the brand through image
advertising
Frequently used for products such as soft
drinks, perfume, liquor, clothing, airlines.
Players in Advertising
Advertisers
Media
Advertising agencies
Suppliers
Processors
Film production houses &
Consumer
www.afaqs.com

Creative Process
Preparation
Gathering information
Incubation
Setting problem aside
Illumination
Seeing the solution
Verification
Refining the idea
Inputs To The Creative
Process
General Preplanning Input:
Books, periodicals, trade publications, clipping
services, journals, magazines, etc.
Trends, developments in marketplace
Product Specific Preplanning Input
Qualitative and quantitative studies
Problem detection studies
Focus groups
Ethnographic studies

Preparation/Incubation/Illumination

Asking
Questions
Inputs to the Creative Process
Reading and
analysis
Product
research
Listening
to others
Trying the
product
Working with
the client
CREATIVE
PROCESS
Verification and Revision of
Ideas
Objectives:
Evaluate ideas generated
Reject inappropriate ideas
Refine remaining ideas
Give them final expression
Techniques used:
Directed focus groups
Message communication studies
Portfolio tests
Viewer reaction profiles
Use of Storyboards and Animatics
Consumer Insight:


An insight
is


The effect
it has


A deeply felt human
truth that links our
lives to our brand
Instant attention
Touched a nerve
Hit a hot-button
Struck a chord
A new angle on old
subject
Long term connection
The brand understands
helps me
True and new
+
Insights
Everyone feels he/she looks very good in a particular angle,
which only one photographer has figured out as yet. They use
old photographs forever.
No body is as good looking as their profile photo nor as bad as
the license photo
Women always spare a last look in the mirror
Car drivers look down upon three-wheelers, three wheelers look
down upon 2 wheelers, and so on
When it comes to a dish, we always check others before
touching yours
People communicate strangely in different situations train, bus,
lift, road
Regional behaviours are real. Parsis will swear, Lucknowis will
always stand for nazakat and Maharashtrians for their lack of it
People who are not really perceived as good looking use
lesser cosmetics. And vice versa
INSIGHT BASED COMMUNICATION STRATEGY
Target Audience
Current Belief
Desired Belief
Current Do
Desired Do
Proposition
Support
ADVERTISING STRATEGY
Yes Mothers
Kids
I want to give him his favorite
Icecreams/chocolates,

but they mess up the
teeth
(Brushing is the only dental hygiene habit)
I can give now him
ice cream/chocholates
AVOID
Shift!
Pepsodent kills germs
even hours after brushing
Superior germicheck formula
Advertising Campaigns
Advertising Campaign

A set of interrelated and coordinated integrated marketing communication
activities that center on a particular theme or idea that appears in different
media across a specified time period.
Campaign Theme
The central message that will be communicated in all of the various IMC
activities

Idea The power of an ideaAn idea can change your life

BMW The Ultimate Driving Machine

Alto Lets Go

Successful Campaigns
Nike
Just do it
Dominos Pizza
Hungry Kya?
Asian Paints
Kyonki Har ghar kuch kehta hai
Coca Cola
Thanda matlab Coca Cola
Intel
Intel inside
Hutch
Wherever you go our network follows
Vodafone
' Power to you
Pepsi
Change the game
Top Ten Advertising Slogans of the Century
1. DeBeers
2. Nike
3. Coca-Cola
4. Miller Lite
5. Avis
6. Maxwell House
7. Wheaties
8. Clairol
9. Morton Salt
10. Wendys

Diamonds are forever
Just do it
The pause that
refreshes
Taste great, less filling
We try harder
Good to the last drop
Breakfast of
Champions
Does she or doesnt
she
When it rains it pours
Wheres the beef?
Company or Brand Campaign Theme
Mortons
Copy Platform Outline
1. Basic problem or issue the advertising must
address.
2. Advertising and communications objectives.
3. Target audience.
4. Major selling idea or key benefits to
communicate.
5. Creative strategy statement (campaign
theme, appeal, execution technique).
6. Supporting information and requirements.
Creative Strategy:
Implementation and
Evaluation
Appeals and Execution Style
Advertising Appeal
The approach used to attract the attention of
consumers and/or
To influence consumer feelings toward the
product, service or cause
Creative Execution Style
The way a particular appeal is turned into an
advertising message
The way the message is presented to the
consumer
Advertising Appeals
Informational/Rational Appeals Emotional Appeals


Two Broad Categories of Appeals

Focuses on the consumers practical, functional,or

utilitarian need for the product or service

Emphasizes the features or benefits

Messages emphasize facts and logic

Relate to consumers social and/or

psychological needs for purchasing a product
or service

Many advertisers believe consumers

emotions work better at selling brands that do
not differ markedly from competing brands
Rational Appeals
Feature appeals
Focus on the dominant traits of the product
Competitive appeals
Makes comparisons to other brands
Favorable price appeals
Makes price offer the dominant point
News appeals
News or announcement about the product
Product/service popularity appeals
Stresses the brands popularity
Informational/Rational Appeals
Comfort
Convenience
Economy
Health
Quality
Dependability
Durability
Performance
Efficiency


Rational Motives
Emotional Appeals

Achievement /
Accomplishment
Actualization
Affection
Ambition
Arousal / stimulation
Comfort
Excitement
Fear
Happiness
Joy
Love
Nostalgia
Pleasure
Pride
Safety
Security
Self-esteem
Sentiment
Sorrow/grief
Personal States or Feelings
Emotional Appeals

Acceptance
Approval
Affiliation / belonging
Embarrassment
Involvement
Recognition
Rejection
Respect
Status
Sophistication
Social-Based Feelings
Transformational Advertising
The ads create feelings, images, meanings, and beliefs about
the product or service that may be activated when consumers
use it
Transformational ads have two characteristics:
The ad must make the experience of using the product richer,
warmer, more exciting and/or enjoyable than that obtained solely
from an objective description of the advertised brand
It must connect the experience of the ad so tightly with the
experience of using the brand that the consumer cant remember
the brand without recalling the experience generated by the ad
A transformational ad is one which associates the experience of using the advertised brand with a unique
set of psychological characteristics which would not typically be associated with the brand experience to the
same degree without exposure to the advertisement
Other Types of Appeals
Reminder Advertising the objective is to build
and/or maintain awareness and keep the name of
the company and/or brand in front of the customer.
Often used by well known brands and market leaders that
are well-established in the market.

Teaser advertising goal is to create curiosity,
interest, and/or excitement about a product, brand
or topic by mentioning it but not actually showing it.
Often used for new products/models and for movies.
Advertising Execution
Techniques
Straight-sell or factual
message
Science / technical evidence
Demonstration
Comparison
Slice of life
Testimonial
Animation
Personality Symbol
Fantasy
Dramatization
Humor
Combinations
Creative execution: The way an advertising appeal is presented.
This ad uses a straight sell execution of a product
popularity appeal
Source: Courtesy Neutrogena Corporation
Creative Tactics: Print Advertising
Headline
Words in the leading position of the ad. Attract readers
attention/interest and encourage them to read the rest of the ad
Direct Headlines straightforward and informative about the product or
service
Indirect Headlines provoke curiosity or interest by use of questions,
provocations, challenges, how-to
Subheads
Smaller than the main headline, larger than the copy. Used to break
up large amounts of copy and highlight key sales points
Body copy
The main text portion of a print ad, used to present the relevant
information. Content depends on appeal and execution style
Creative Tactics: Print Ad Components
Visual Elements
Must attract attention
Communicate idea or image
Work in synergistic fashion with headline and copy
Illustrations such as drawings or photos
Identification marks such as trademarks, logos, brand name
Layout or Format
The physical arrangement of the various elements of a print
ad including headline, subheads, body copy, illustrations, and
identifying marks
Decisions include size, color, white space

Elements of a Print ad
Headline
Visual
Body Copy
Identification Marks


Insert Savin ad
from 6/e
acetates here
T9-6
Creative Tactics: Print Ad Layout

Size
Expressed in columns, column inches or
portions of a page
Color
Black & white or two-, three-, or four-color
printing
White Space
Marginal and intermediate space on the
page that remains unprinted
Advertising Creative
What is Advertising Creative?
Advertising Creative
Advertising Creative is the art of
communicating something to make your target
audience think what you have to tell them.
A common frame of reference with the reader
or the viewer.
First identify the potential target audience.
Precisely
The Target Audience
Whom are you talking to?
Never people who want to buy a new car!
people who want to buy a new car to show off;
people who want to buy a new car to drive longer
distances;
people who want to buy a new car for a daughter
who just got her licence.
People dont buy a car for just transportation
People also buy cars to make statements
about themselves.
People are looking for style, economy,
reliability, safety and a whole lot of other
things.
Common frame of reference
The unstated motivation of the target
audience.
Use any tool; research, gut feel etc.
How to hook the audience who is in that frame
of mind. (Remember, a common frame of
reference!)
The Creative Idea
Something that has a bearing on the frame of
mind of your audience.
Something your audience is able to
understand quickly.
Capable of supporting your message.
Were only No. 2
Were only No. 2; we try harder for AVIS Rent-
a car, created by DDB.
A target audience composed of customers who
wanted a better deal, but were suspicious of tall
service claims.
We try harder made perfect sense to them. It
said everything better rates, better service,
better satisfaction, better I-got-a-steal-feel!
There are only two kinds of ads.
One where there is something to say.
And two where there is nothing to say!
With this thumb rule, any ad can be made
memorable.
For the first kind all youve got to do is figure
out how to say what has to be said.
For the second kind, use showmanship!
Concern about the look and feel of the ad.
Creative Tactics: Television
Video what is seen on the screen. Includes
decisions regarding visual, sequencing,
setting, lighting, talent, etc.
Audio voices, music, sound effects
Voiceover delivery of the message
Music
Well known songs
Jingles

Components of a TV Commercial
Creative Tactics: Television
Planning and Production
The elements of a TV commercial are brought together in a
Script which is used to provide a detailed description of the
video and audio content

Three Phases of Production

1. Preproduction
All work before actual shooting, recording
2. Production
Period of filming, taping, or recording
3. Postproduction
Work after commercial is filmed or recorded
Creative Tactics: Television
Preproduction Tasks
Select a director
Choose production company
Bidding
Cost and timing
Production timetable
Set construction
Location
Agency, client approval
Casting
Wardrobes
Production Meeting
Creative Tactics: Television
Production Tasks
Location versus set shoots
Night/weekend shoots
Talent arrangements
Creative Tactics: Television
Postproduction Tasks
Editing
Processing
Sound effects
Audio/video mixing
Opticals
Client/agency approval
Duplicating
Release/shipping
Evaluation and Approval of Creative Work
Consistent with brands marketing objectives?
Consistent with brands advertising objectives?
Consistent with creative strategy, objectives?
Does it communicate what its suppose to?
Approach appropriate to target audience?
Communicate clear, convincing message?
Does execution overwhelm the message?
Appropriate to the media environment?
Is the advertisement truthful and tasteful?
Guidelines for Evaluating Creative Output
Hamara Bajaj
Fear of Honda
Kinetic popularity
Strengths from indianness
Countrywide appeal
New
No relevance in terms of customer
No relevance in terms of products
No relevance in terms of environment

But, the core of the thought was Indian
The new commercial was focussed on
CHANGING INDIA, UNCHANGING INDIANNESS
Careers
Creative
Copy writing
Reading
Lateral thought process
Art direction/graphics
Art appreciation
Music, painting, singing, sports, films


Account management
Business manager, single point contact
Strategic thought process - linear/lateral
Reading
Lateral thought process
Art direction/graphics
Art appreciation
Music, painting, singing, sports
No role for postman, dolls, toyboy looking for some
cool fun


Media
Media Planning - Strategic, technology comfort,
statistical mind
Media buyer - Previous sales/media sales experience,
smart, good negotiation skills
Media Operations - Detailing, meticulous

Overall
Good communicator
Expressive
Thinking of your own
hatela/hateli
Classy
Art appreciator
Job scene
Amazing, challenging
9 to 5

SWOT of Indian Ad Industry
Strengths
-Large world class Talent Pool India
is winning a slew of awards on world
stage
-Strong robust education system B-
schools, art schools


Weakness
- Credibility with clients not up to the
mark
- Inability to compete with global
corporations - Shallow pockets,
inability to attract talent
- Lack strong research practices
- Lack of matrices to study
effectiveness
- Lack of scale
Opportunities
-Indias ad to GDP ratio is still
nascent
- The advent of outsourcing in
advertising
- The blossoming economy and
increased competition


Threats
-Globalization means clients will
increasingly look for global agencies
- Consolidation in media will lead to
lower bargaining power

Media Planning and Strategy
McGraw-Hill/I rwin
2004 TheMcGraw-Hill Companies, I nc., All Rights Reserved.
Media Terminology
Media Planning - A series of decisions involving the
delivery of messages to audiences.
Media Objectives - Goals to be attained by the media
strategy and program.
Media Strategy - Decisions on how the media
objectives can be attained.
Media - The various categories of delivery systems,
including broadcast and print media.
Broadcast Media - Either radio or television network or
local station broadcasts.
Media Terminology
Print Media - Publications such as newspapers and
magazines.
Media Vehicle - The specific message carrier, such as
the Washington Post or 60 Minutes.
Coverage - The potential audience that might receive
the message through the the vehicle.
Reach - The actual number of individual audience
members reached at least once by the vehicle in a
given period of time.
Frequency - The number of times the receiver is
exposed to vehicle in a specific time period.
Problems in Media Planning
Lack of information
Inconsistent terms
Serious time pressure
Measurement problems
Media Use Decision
Print
Media Use Decision
Broadcast
Media Use Decision
Other Media
Creative Strategy Plan
Developing the Media Plan
Setting Media Objectives
Selecting Media Within Class
Selecting Broad Media Classes
Determining Media Strategy
Marketing Strategy Plan Situation Analysis
Developing the Media Plan
Analyze the Market
Establish Media Objectives
Develop Media Strategy
Implement Media Strategy
Evaluate Performance
Where to Promote?
Brand and Category Analysis
Percentage of brand to total U.S. sales in
market
Percentage of total U.S. population in
market
BDI =
X 100
Brand Development Index
Percentage of brand sales to total all
India brand sales in market
Percentage of total Indian population in
market
Brand Development Index
Maggi
sales in
Assam
tonnes

Maggi
sales
all India
tonnes
Population
of Assam

Population
of India
million
BDI
350 2800 35 1400
(12.5%) (2.5%) 12.5/2.5x100=500
Where to Promote?
Brand and Category Analysis
Percentage of product category
total sales in market
Percentage of total Indian.
population in market
CDI = X 100
Category Development Index
Category Development Index
Noodles
ales in
Assam
tonnes

Noodle
sales
all India
tonnes
Population
of Assam

Population
of India
million
BDI
450 4500 35 1400
(10%) (2.5%) 10/2.5x100=400
Brand and Category Analysis
High market share
Good market potential
High market share
Poor market potential
Low market share
Good market potential
H
i
g
h

C
D
I

L
o
w

C
D
I

Low market share
Poor market potential
High BDI Low BDI
Brand and Category Analysis
The market usually represents good sales
potential for both the product and the brand.
The category isnt selling well but the brand
is; may be a good market in which to
advertise but should be monitored for sales
decline.
The product category shows high potential
but the brand isnt doing well; the reason
should be determined.
H
i
g
h

C
D
I

L
o
w

C
D
I

Both the product category and the brand are
doing poorly; not likely to be a good place to
advertise.
High BDI Low BDI
Media Planning Criteria
Considerations
The media mix
Target market coverage
Geographic coverage
Scheduling
Reach versus frequency
Creative aspects and mood
Flexibility
Budget considerations
Target Audience Coverage
Population excluding target market
Target market
Media coverage
Media overexposure
Coverage
Exceeding
Market
Partial
Market
Coverage
Full
Market
Coverage
Target
Market
Proportion
Three Scheduling Methods
Continuity
Pulsing
Flighting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach and Frequency
Reach of Two Programs Reach of One Program
Unduplicated Reach of Both Duplicated Reach of Both
Total market audience reached
Total market audience reached
Total reached with both shows Total reach less duplicate
Weight metrics
How much advertising volume is required to
achieve advertising objectives

Gross ratings (GRP)
Target ratings (TRP)
Effective ratings(ERP)
GRP
Gross weight that a particular advertising
campaign has delivered
(Duplicated audience)
GRPs= Reach x Frequency

TRP
Adjust vehicle ratings to reflect just those
individuals who match the advertisers target
audience
TRPs are non wasted weights
ERP
An advertising schedule is effective only if it
does not reach members of the target
audience too few or too many times during the
media scheduling period(typically, one month)
Graph of Effective Reach
Effects of Reach and
Frequency
1. One exposure of an ad to a target group within a purchase cycle
has little or no effect in most circumstances.

2. Since one exposure is usually ineffective, the central goal of
productive media planning should be to enhance frequency
rather than reach.

3. The evidence suggests strongly that an exposure frequency of
two within a purchase cycle is an effective level.

4. Beyond three exposures within a brand purchase cycle or over a
period of four or even eight weeks, increasing frequency
continues to build advertising effectiveness at a decreasing
rate but with no evidence of decline.
Effects of reach and frequency
5. Although there are general principles with respect to
frequency of exposure and its relationship to advertising
effectiveness, differential effects by brand are equally
important

6. Frequency response principles or generalizations do not
vary by medium.

7. The data strongly suggest that wearout is not a function
of too much frequency. It is more of a creative or copy
problem.

Alternative plans - Rs 1.2 Cr
Plan
A:100%
TV
Plan B:
67% TV,
33% radio
Plan C:
TV(50%),
magazines(
50%)
Plan D:
TV(67%),
Outdoor(33
%)
Reach%
(1+ exposures)
69 79 91 87
Effective reach
(3+ exposures)
29 48 53 61
Frequency 2.8 5.5 3.2 6.7
GRPs 193 435 291 583
ERPs 81 264 170 409
Cost/GRP 62,176 27,586 41,237 20,583
Cost/ERP 148,148 45,455 70,588 29,340
Shimp, IMC, 2007, Cengage
Is D the best? How critical is visual consumption of proposition? Not necessary that D is best.

It is better to be vaguely right than precisely wrong
Effects of Reach and
Frequency
1. One exposure of an ad to a target group within a purchase cycle
has little or no effect in most circumstances.

2. Since one exposure is usually ineffective, the central goal of
productive media planning should be to enhance frequency
rather than reach.

3. The evidence suggests strongly that an exposure frequency of
two within a purchase cycle is an effective level.

4. Beyond three exposures within a brand purchase cycle or over a
period of four or even eight weeks, increasing frequency
continues to build advertising effectiveness at a decreasing
rate but with no evidence of decline.
Effects of reach and frequency
5. Although there are general principles with respect to
frequency of exposure and its relationship to advertising
effectiveness, differential effects by brand are equally
important

6. Frequency response principles or generalizations do not
vary by medium.

7. The data strongly suggest that wearout is not a function
of too much frequency. It is more of a creative or copy
problem.

Marketing Factors Important to
Determining Frequency
Brand history
Brand share
Brand loyalty
Purchase cycles
Usage cycle
Competitive share of voice
Target group
Message or Creative Factors Important
to
Determining Frequency
Message complexity
Message uniqueness
New vs. continuing campaigns
Image versus product sell
Message variation
Wearout
Advertising units
Media Factors Important to
Determining Frequency
Clutter
Editorial environment
Attentiveness
Scheduling
Number of media used
Repeat Exposures
Determining Relative Cost of
Media
Cost of ad space
(absolute cost)
Circulation
CPM = X 1,000
Cost per thousand (CPM)
Determining Relative Cost of
Media
CPRP =
Cost of commercial time
Program rating
Cost per rating point (CPRP)
Television Characteristics
Advantages

Mass coverage
High reach
Impact of sight, sound,
and motion
High prestige
Low cost per exposure
Attention getting
Favorable image
Disadvantages

Low selectivity
Short message life
High absolute cost
High production costs
Clutter
Radio Characteristics
Advantages

Local coverage
Low cost
High frequency
Flexible
Low production costs
Well-segmented audiences
Disadvantages

Audio only
Clutter
Low attention getting
Fleeting message
Magazines Characteristics
Advantages

Segmentation potential
Quality reproduction
High information content
Longevity
Multiple readers
Disadvantages

Long lead time for ad
placement
Visual only
Lack of flexibility
Newspapers Characteristics
Advantages

High coverage
Low cost
Short lead time for
placing ads
Ads can placed in
interest sections
Timely (current ads)
Reader controls
exposure
Can be used for
coupons
Disadvantages

Short life
Clutter
Low attention-getting
capabilities
Poor reproduction
quality
Selective reader
exposure
Outdoor Characteristics
Advantages

Location specific
High resolution
Easily noticed
Lowest price per person
Disadvantages

Short exposure time
requires short ad
Poor image
Local restrictions
Direct Mail Characteristics
Advantages

High selectivity
Reader controls exposure
High information content
Opportunities for repeat
exposures
Disadvantages

High cost/contact
Poor image (junk mail)
Clutter
Social Media/Digital media/SEO/SEM/Mobile Media
Advantages

Inexpensive(pay per impression)
User selects product information
Consumers can purchase
effectively
User attention and involvement
Interactive relationship
Flexible message platform
Disadvantages

Limited creative capabilities
Technology limitations
Valid measurement techniques
Limited reach
Agency Remuneration
Agency Remuneration
Agency compensation has dropped from 15%
of total communication spend in the 80s to
below 6-7% today
Mainly due to undercutting as a result of
competition
Diverse revenue models


Commissions from media (15%)
Reduced commission system(<15%)
Labor-based fee system
Outcome-based
Remuneration Models
Commission Model
15% of media spend is paid back by media owner to agency
Earliest form of remuneration
Slowly being phased out
Yet, still popular in India, especially with PSUs

Issues
Remuneration is commensurate to ad spend
Tendency of ad agencies to propose TV led campaigns, on account of higher
revenue
No performance based incentive
Does not take into account actual work hours put in
Makes small spenders unattractive to agencies
Divergence of media and advent of BTL, ambient media, etc
Prone to last minute cuts, thus makes revenues for agency uncertain
Difficult to staff, given irregular nature of ad spending
The divergence of media as a separate function
Payment by Results (PBR)
Three approaches
Retainer + PBR
Lower retainer but with possibility of additional pay
Pure PBR
Purely performance based remuneration
Retainer + Bonus
Fixed retainer, plus bonus payments at the discretion of client based
on years performance
Major hindrances
What to measure
Decoupling the effect of other marketing action
Time lapse in measurement
Difficulty in budgeting for client and revenue estimation for
agency


What next???
In the next 12-18 months larger agencies likely to lose portions of business
going to more innovative interactive firms.
Firms like WPP and Publicis looking at purchasing these firms as a growth
strategy

DDB Mudra- an Indian full-service communications agency is launching a
slew of specialist marketing units, hiring in hordes and planning big
acquisitions over the next few months
The new developments haven't exactly made Mudra recession-proof, but
ensured the agency has systems in place in case clients decide to cut ad spends
and push towards non-traditional media.
DDB Mudra (Influence and behavioral change),
DDB Mudra Max (Integrated engagement and experience),
Ignite Mudra (Partnerships for entrepreneurs),
Water(Brand strategy and architecture)
Gutenberg Networks India (Maatra) pre media production, web, broadcast, print
Tribal DDB(digital)
RAPP Data led multi channel engagement
DDB Health & Lifestyle
Agency Push
Networking
Brochures
Affiliation and Accreditation
Publishing relevant research
Maintaining agency portfolios
Awards shelf
Websites
One to one contact
Agency credentials presentations
Self promotion ads
Not particularly common
No readily available examples from India
What does it offer?
Career
fulfilling
challenging
money
growth
Lifestyle -
9 to 5 job
joy
family life
travel and hotels
glamour
What do you need to have in you?
Information comfort
Knowledge attitude
Leadership skills
Love people
Relationship builder
Good presentation skills
Personality
Thought worker


Future shock
Specialisation will be the
order of the day
In medium to long term,
successful Client Service
personnel will shift to
consultancy, internet start-
ups, or specialised media
like DM, Event
Management, Rural
marketing, TV or Radio
Future shock
Advertisers will buy strategy,
creative and media from
specialists
They will have an Advertising co-
ordinator
Large agencies will try to
specialise in any one of these
fields
Small agencies will be advertising
even smaller brands

Future shock
Businesses will be
more vulnerable and
will work towards
reducing risks
Research will only
continue to grow,
with the virgin
territory of the
internet
So, is client service an
endangered species?
99% India believes in
inertia
IT will change the way
advertising operates
If you do enough
things poorly, you
will go out of
business
BILL
GATES
Business@The Speed of
Thought
Information flow is the lifeblood
The internet changes everything
Manage knowledge to improve strategic
thoughts
Bring insights to business operations
Expect the unexpected
Art of survival
Resolve
Discipline
Know more
Adapt
Pass the baton
with a smile

OGILVY ON ADVERTISING
If each of us hires
people who are smaller
than we are then we will
become a company of
dwarfs.
But if each of us hires
people who are bigger
than we are, we shall
become a company of
giants.

THANK
YOU