IMC Test Notes
IMC Test Notes
Chapter 1
IMC is a strategic marketing process specifically designed to ensure that all messaging and
communication strategies are unified across all channels and centred around the customer
The IMC process emphasizes identifying and assessing customer prospects, tailoring messaging to
customers and prospects that are both serviceable and profitable, and evaluating the success of
these efforts to minimize waste and transform marketing from an expense into a profit-centre.
IMC objectives
Companies have a variety of general objectives for their marketing communication programs:
Persuading customers to choose certain products and brands, shop in particular stores, go to certain
websites, attend events, and other specific behaviors; and
Inducing action (eg: purchase behavior) from customers that is more immediate than delayed in
nature.
Is marketing = selling??
The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the
customer.
Exchange
In order for an exchange to occur, there must be:
1. Two parties and each party must ...
2. have something of value to the other party,
3. be capable of communication and delivery,
4. be free to accept/reject the offer, and there must be
5. an agreement to terms.
Marcom tools
IMC Skeptics: in the final analysis, the key to successfully implementing IMC is the managers must
closely link their efforts with outside suppliers of marcom services (such as ad agencies), and both
parties must be committed to assuring that all communication tools are carefully and finely
integrated.
The integration of multiple communication tools and media yield more positive communication
results than the tools used individually
SWOT analysis
Marcom outcomes
Enhancing brand equity <-------> affecting behaviour
Program evaluation
Measuring results
Providing feedback
Taking corrective action
Chapter 2
Branding
Brand: A name, term, sign, symbol, or design intended to identify the goods and services of one
seller or groups of sellers and differentiate them from those of competition.
Brand equity: The goodwill that an established brand has built up over its existence.
Associations: are the particular thoughts and feelings that consumers have linked in memory with a
particular brand.
Achieving brand awareness is the initial challenge for new brands. Maintaining high levels of brand
awareness is the tasked faced by all established brands
Brand recognition: reflects a relatively superficial level of awareness
Brand recall: deeper form of brand awareness
Brand recognition
Unaware of brand
brand concept management: the analysis, planning, implementation and control of a brand concept
throughout the life of the brand
Brand image represents the associations that are activated in memory when people think about a
particular brand.
Five personality dimensions that describe most brands:
sincerity
o down to earth
o wholesome
o honest
o cheerful
excitement
o daring
o spirited
o imaginative
o up-to-date
competence
o reliable
o intelligent
o successful
sophistication
o upper class
o charming
o luxury
ruggedness
o tough
o outdoorsy
Chapter 3
Brand naming
Brand: A company’s unique designation or trademark, which distinguishes its offering from the other
product category entries.
Packaging
Packaging structure: communicates meaning about a brand via its various symbolic
components:color, design, shape, size, physical materials, and information labelling
o The use of colour in packaging
o Design and shape cues in packaging
o Physical materials in packaging
Evaluating the package: the VIEW Model
o V- visibility
o I- information
o E- Emotional appeal
o W- Workability
Designing a package
1. Specify brand-positioning objectives
o How brand is to be positioned in the customers mind
2. Conduct a product category analysis
o What the packaging must convey
3. Perform a competitive analysis
o Know competitor then differentiate from them
4. Identify salient brand attributes or benefits
o The packaging must not be too cluttered and must feature what is important to the
consumer
5. Determine communication priorities
o Establish visual and verbal priorities for the package
o Intellectual property
Patents: ideas, inventions
o 20 years renewable
Copyrights: form an idea
o Must be a tangible medium
Trademarks: Product ID
o 10 year renewable
Chapter 5
The market segmentation process and targeting audiences can be considered the starting points for
all marcom decisions
Market targeting
Develop measures of segment attractiveness
Select the target segment(s)
Market positioning
Develop positioning for each target segment
Develop marketing mix for each target segment
Psychographic segmentation
Psychographics: Describe aspects of consumers’ psychological make-ups and lifestyles as they
relate to buying behaviour in a particular product category
o Attitudes
o Values
o Motivations
Types of psychographic profiles
Customised psychographic profiles
o Are typically customized to the client’s specific product category
o Contain questionnaire items related to the unique characteristics of the product
category
General purpose of psychographic profiles
o Can be purchased as “off-the-shelf” psychographic data from services that develop
psychographic profiles of people independently of any particular product or service
Geodemographic Segmentation
Geodemographics
o Consumers who reside within geographic clusters such as zip codes or neighborhoods
and also share demographic and lifestyle similarities
Typical clusters (PRIZM NE)
o PRIZM – Potential Rating Index by ZIP Markets, NE – new evolution of Nielson Claritas’s
original segmentation system
Small pond
Country Clusters
Suburban pioneers
City roots
Demographic Segmentation
Major demographic aspects
o Age structure of the population
o Change in the household composition
o Ethnic population development
Demographic trends
World population growth’
Changing age structure
Market targeting
The 5 Criteria for effective segmentation
1. Measurable
2. 2. Substantial
3. 3. Accessible
4. 4. Differentiable
5. 5. Actionable
Categories of brand positioning
Functional needs:
o Positioning communicates that the brand’s benefits are capable of solving consumers’
consumption-related problems
Symbolic needs:
o Positioning attempts to associate brand ownership with a desired group, role, or self-
image
Experimental needs:
o Positioning promotes brand’s extraordinary sensory value, or rich potential for cognitive
stimulation
Attribute positioning
Product related
Non-product related
Chapter 6
Forms of meaning
Denotative (exact) versus Connotative (implied) meaning
Structural versus contextual meaning
o Structural (only a sign to sign relationship)
o Contextual (description of signs
The Hedonic, Experiential Model (HEM): consumer behaviour is driven by emotions, pursuit of fun,
fantasies and feelings
The HEM model probably better explains how consumers process information when they are
carefree and happy and confronted with positive outcomes.
The HEM viewpoint recognizes that people often consume products for the sheer fun of it or in the
pursuit of amusement, fantasies, or sensory stimulation.
Chapter 8
Why setting Marcom (advertising) objectives is important
Expression of management consensus
Guides the budgeting, message, and
media aspects of advertising strategy
Provide standards against with
results can be measured
Marcom Objectives
Who
What (most difficult objective)
Where
When
How often
The Hierarchy of marcom effects
Advancing consumers unawareness to awareness
Creating an expectation
Encouraging trial purchases
Forming beliefs and attitudes
Reinforcing beliefs and attitudes
Accomplishing Brand loyalty
B2C: companies that market their brands to final consumers undertake most advertising
B2B: companies that market to other companies rather than directly to consumers
1. Informing
o Publicize the brand
2. Influencing (Persuading)
o Primary demand: creating a demand for the entire product category
o Secondary demand: the demand for a company’s brand
3. Reminding and Increasing Salience
o Enriching the memory trace for a brand such that the brand comes to mind
o in relevant choice situations
4. Adding Value
o Innovating
o Improving quality
o Altering consumer perception
5. Assisting Other Company Efforts
o Assist sales representatives
The role of advertising agencies
Advertising function alternatives
o In-house operation
Necessities employing an advertising staff and absorbing the operation costs
Unprofitable unless a company does a large amount of continual advertising
o Purchase services as needed (a la carte)
Advantages
Use services only when they are needed
Availability of high-calibre creative talent
Potential cost efficiencies
Disadvantages
Specialists approach client problems in a stereotyped fashion
Lack of cost accountability
Financial instability of smaller boutiques
o Use full- service advertising agency
Advantages:
In-depth knowledge and skills
Obtaining negotiating muscle with the media
Coordinating advertising and marketing efforts
Disadvantages
Some control is lost
Larger clients are favoured over small clients
Occasionally inefficient in media buying
Use full- service advertising agency
Creative services
o Develop advertising copy and campaigns
o Copywriters, production staff, graphic/digital artists, and the creative directors
Media services
o Selecting the best advertising media
o Media planners develop overall media strategy
o Media buyers procure the selected media
Research services
o Study clients’ customers’ buying habits, purchase preferences, and responsiveness
(account/market planners)
o Focus groups, mall intercepts, online studies, acquisition of syndicated research data
Account manager
o Link the agency with the client
o Act as liaisons so that the client does not need to interact directly with several different
service departments and specialists
o Any other agency personnel needed?
Agency compensation
Commissions from media: for adverts aired or printed
Based on fee system (most common is labour based fee system)
Earning compensation based on outcomes (or performance) : newest form of compensation
Ad-Investment Considerations
The case for investing
o the belief that advertising can increase profitability by increasing sales volume, enabling
higher selling prices, and thus increasing revenue beyond the incremental advertising
expense.
The case for disinvesting
o Firms often choose to reduce advertising expenses either when a brand is performing
well or during economic recession. The belief is that an expense reduction, with all else
held constant, will result in increased profits.
Chapter 10
Advertising plan: Provides the framework for systematic execution of advertising strategies
(analogous to marketing plan: analysis, planning, implementation, control of marketing programs)
Advertising strategy: An advertising message that communicates the brand’s primary benefits or
how it can solve a consumer’s problem
5 steps of advertising strategy
Step 1: Specify the key fact
o A Single- minded statement from the customer’s point of view that identifies why
consumers are or are not purchasing the brand
Step 2: state the marketing problem
o State the problem from the marketer’s point of view
Step 3: state communication objective
o What effect the advertising is intended to have on the target market and how it should
persuade consumers
Step 4: implement the creative message strategy
o “creative platform”
Define the target market
Identify the primary competition
Choose the promise
Offer reasons why
Step 5: establish mandatory corporate/divisional requirements
o It reminds the advertiser to include the corporate slogan or logo, headlines, claim
substantiation, any other regulatory requirements, etc.
Universal Values
1. Self- direction
2. Stimulation
3. Hedonism
4. Achievement
5. Power
6. Security
7. Conformity
8. Tradition
9. Benevolence
10. Universalism