INTR TO INTEGRATED STRATEGIC COMM
INTR TO INTEGRATED STRATEGIC COMM ISC 161
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This 13 page Class Notes was uploaded by Nya Heller III on Friday October 23, 2015. The Class Notes belongs to ISC 161 at University of Kentucky taught by Beth Barnes in Fall. Since its upload, it has received 40 views. For similar materials see /class/228114/isc-161-university-of-kentucky in Communication Studies at University of Kentucky.
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Date Created: 10/23/15
ISC 161 Final Review Ch 3 budgeting portion of Ch 7 Ch 18 22 Regulation The BBB s Better Business Bureau system of self regulation 0 National Advertising Division NAD Only reviews national ads Acts as investigating arm Benefits Relatively inexpensive Relatively quick Uses ad experts Levels the playing field National Advertising Review Board NAE Handles appeals from the NAD 0 Issues of 0 Product performance claims 0 Product superiority claims 0 Scientifictechnical claims 0 NOT questions of taste Broad membership 0 Advertisers 0 Advertising agencies 0 Public 0 Children s Advertising Review Unit CARU 0 Reviews ads directed to children in all media 0 Reviews online material targeted to children Most forms of ISC are heavily regulated Public Relations and Political Advertising are major exceptions Central Hudson Test four part test used by the courts designed to determine restrictions on commercial speech Federal Trade C 39 39 FTC r I quot 39 for controlling and regulating advertising 0 Protects both and 39 39 from quot quot ive behavior and unfair and deceptive practices The majority of advertising cases that the FTC handles concern deception and fraud and involve knowledge of a false claim 0 Consent Order an agreement to stop the practice or advertising in question 0 FTC can issue a cease and desist order which requires the advertiser to stop the specific claim within 30 days and prohibits them from engaging in the practice until after the hearing The Lanham Act a federal law that prohibits a company to register a trademark for its exclusive use o It was amended to encompass false advertising and prohibits any false description or representation including words or other symbols tending falsely to describe or represent the same Budgeting Top down Approaches 0 Percentage of sale most common method set percentage of sales as budget can find industry wide standards on percentages 0 Com etitive arit look at competition to see what they are spending and use that as your budget 0 Return on investment ROI Build up Approaches o Ob39ective and task method best method set objectives determine tasks needed to achieve objectives cost out tasks total costs 0 Payout planning new brand often have to spend more than you re making shows what investment needs to be over time and when it will break even and make profit Economies of scale the more you re producingbuying the cheaper it is per unit Zero based budgeting determine split for different communication elements based on what needs to be accomplished Contribution margin price minus cost to make and distribute the product Price Expenses 0 Any increase in spending on communication decreases profit unless there s an equal or greater sales increase to offset the spending 0 Available to spend on marketing communications and to provide profit Campaign Evaluation Pre testing measures taken before the campaign is implemented 0 can happen as early on as idea generation to rough execution to testing the final version before implementing it Post testing occurs after the ad or commercial has been in the field 0 designed to determine if the campaign is accomplishing the objectives sought and o serve as input into the next period s situation analysis Laboratory tests people are brought to a particular location where they are shown ads andor commercials lots more control less realistic o The major advantage of the lab setting is the control it affords the researcher they can isolate the contribution of each factor 0 Major disadvantage is the lack of realism testing bias people are more likely to scrutinize ads when in a lab than at home Field tests tests of the ad or commercial under natural viewing situations complete with the realism of noise distractions and the comforts of home They take into account the effects of repetition program content and even the presence of competitive messages Disadvantage the lack of control it may be impossible to isolate causes of viewers evaluations also take more money and time Physiological Measures less common method of pretesting in lab setting which measure physiological responses Pupil Dilation dilation expresses stronger interest in ad Galvanic skin response electro dermal response may present a picture of attention 0 Eye tracking demonstrates which areas ofthe ads are attracting the most attention by showing the exact spot the viewer is focusing on 0 Brain waves measures degree of brain activity and can distinguish between activity in the left logic and right emotional sides of the brain Measurements for Post tests Persuasion Choosing first choice product in list before and after exposure to ad SaHence Before and after brand recall brand name awareness Diagnostics Designed to garner viewers evaluation of the ads Positive and negative views Linkability to brands Emotional and rational reactions to ads are examined Taught something about brand didn t know etc Why Test 0 To avoid expensive mistakes Evaluate alternative strategies Increase efficiency of efforts See if objectives are met Finished Work Testing Portfolio Tests expose respondents to portfolio of ads measure recall Dummy Vehicle Tests ads are placed in dummy magazines distributed to random sample of homes recall readership and interest generation of ads are assessed Theater Tests people are invited to view pilots of proposed shows tests based on commercials and product choices before and after On Air Tests commercials inserted into actual TV programs measured with day after recall scores Mailing Tests Guidelines for Effective Testing Check based on communication objectives Use pre tests and post tests Use multiple measures Decide which measures are most important before you begin testing Ethics be able to talk about how you would act in a situation using one of these 5 perspectives explain why your choice is ethical Ethical Perspectives o Utilitarian the ends justify the means Consequences of actionspolicies on those affected 0 Rights Based in people s civil political and economic rights Assumes people are rational and able to make their own decisions 0 Fairness treating everyone equally Fairness consistency of treatment Do actions affect all fairly quotTreat people the same unless there are morally relevant differences between themquot 0 Common Good How society as a whole will be affected Individual good derives from common good Members ofa society are linked by values and goals 0 Virtue Emphasis on virtues such as honesty courage faithfulness integrity Will it help to promote core virtues ISC Industries Client Organization 0 Centralized System managers for major strategic communications areas work on all brands o Decentralized system product managers for each brand strategic communication support underneath Proctor amp Gamble Reasons to Use an Outside Agency 0 Skills can hire better people 0 Objectivity can take a more objective un biased look at product 0 Clout can negotiate better media prices Full Service Agency Account services research media creative managementfinance Types of Agency Compensation 0 Commission system Fixed fees Fee commission combination Cost plus Incentive based if agency exceeds objectives they get a bonus if not they pay money back Sales commission based Percentage mark ups Reasons for Account Changes Social Issues Unrealistic demands Personality conflicts Personnel changes Spin Doctoring having an influence on news content being able to put a positive spin on eventssituations Major Social Criticisms of Advertising Advertising to children in general Pro Ads teach kids to be thoughtful consumers Saying quotmaterialismquot is necessarily bad is a value judgment Aduts make poor purchasing decisions too Because of kids Internet savvy they have more info than ever before more than most adults Con Kids don t understand the intent of ads Younger children pay the most attention to ads Ads encourage kids to eat junk food and sugared drinks Ads promote materialism and defining sef by products Political advertising Pro Poitica ads attract votes Poitica ads create enthusiasm Poitica ads encourage people to vote Poitica ads provide a forum for issues Con Poitica ads turn potential voters off especially negative ads Poitica ads polarize the public Poitica ads trivialize issues Product placement Pro Compensates for ad skipping technology Delivers message when viewer s guard is down Helps develop the brand s image Less obtrusive More realistic Con Audiences can t avoid placements embedded in entertainment content Less regulation of placement than of advertising Placement can alter narrative creativity 0 Sex in advertising Pro Sex related benefits are powerful motivators Sex can be relevant to the product promoted Con Research shows the more sexual content teens see in media the more likely they are to be sexually active Sex appeal ads objectify the people portrayed Sex appeal ads contribute to problems with body image and eating disorders 0 DTC pharmaceutical advertising Pro Increases awareness of options Better education for consumers Better discussions between doctors and patients Empowers consumers Improves health literacy Con Hurts the doctor patient relationship Information quality is limited Adversely affects the elderly and those in poor health Raises drug prices 0 Stereotyping Pro Stereotypes can be positive as well as negative Act as quotnoise filters to help people understand differences among groups Con Stereotyping reduces people to simplistic elements Stereotypes affect how we perceive individuals Power Status and Norms 0 When non target viewers see ads directed as less powerful groups their tendency is to assess the ads based on the targeted group s quotdeviation from normality o Targeting lower SES groups is always seen as less ethical that targeting higher SES groups 0 quotReading Strategies of non target members Don t read the ad because it s not for them Read the ad but can t decode it as intended Read the ad to learn more about the intended target or to criticize because its not for them Advertising and the Economy 0 Market Power Advertising changes tastes Creates brand loyalty Causes higher prices Deters new entries Leads to more concentrated markets International ISC Global marketing same marketing plan in all countries Local marketing customized plan for each countrylocality Environmental Considerations Economic environment 0 Stage of development 0 Standard of living 0 Wealth distribution 0 Exchange rates Cultural Environment 0 Language 0 Lifestyles o Norms and customs 0 Ethics and moral standards Demographic environment 0 Population 0 Household size 0 Age distribution 0 Education levels 0 Occupations Politicallegalenvironment 0 Laws and regulations 0 Government policies 0 Political stability Benefits of Global Marketing Economies of scale the more you re producingbuying the cheaper it is per unit Lower production costs Export good ideas introduce products quickly Consistent image Simplified coordination and control Drawbacks to Global Marketing Cultural differences Market differences Media issues Consumer issues Legal restrictions When does globalization work Primarily visual messages Image oriented campaigns High tech products Products for market segments with universal tastes and needs For the cumulative essay question which is worth 20 points review the integrated communication planning model this is posted on Blackboard and is the model we have referred to frequently throughout the semester I will be giving you a brief description of a product and its current marketing challenge and then asking you to make some recommendations on developing a program for the brand The more steps from the planning model you can apply the better you will do in terms of points ON OTHER PAGE Final Essay Question LOOK AT PLANNING PROCESS SHEET ON BLACKBOARD Walk through Planning Process don t have to go into great detail 0 Be given a brand focus on present competitive or emerging 0 Start by doing background research who main competitors are 0 Look at database if you have access to it if not do customer research find out about users 0 Then make decision about customer type Product potential Behavioral Objective tria usage complete switch 0 Show you know what brand networks and brand contacts are what customers know about brand what in their brand network where are they getting that info brand contacts marketing tools what you can do Specific contact points where and how you want to advertise sales promotion pr etc communication mix 0 Business building comm and long term brand building Estimate Return on customer investment Implement plan actual ROCI o Recycle information The ISC Flaming Process ISC Flaming Systematic assessment of where you are and where you want to be If multiple agencies are involved in implementation makes sure that everyone is aware of and shares the campaign s goals Note The planning process model is posted as a separate PP on Blackboard Brand Business Review Update of where the brand is now 39 quot 39 391 with Competitive framework Newpending product improvements Distribution changes Legislativeenvironmental pressures lJlUleleb Step 1 Behavioral Databases Means of developing customer understanding Demographics Psychographics Behaviorusage Geography Step 1 Behavioral Databases Customer aggregation groupings based on behavior Present customers Competitive customers Emerging users Step 2 Valuation Purchase dynamicsshare of requirements What s currently happening how much of this segment s business are we getting now What could be happening how much could we be getting Valuation Income ows how much money do I get from this person Behavioral Objectives What we want to happen Present customers Retain Growmigrate Competitive customers Trial usage Total switch Special usage Behavioral Objectives Emerging users Trial usage Total program Step 3 CreatingDelivering Communications Brand Knowledge What people know brand network Where the informationperceptions come from brand contacts Communication Model Encoding Decoding Field of experience Communication model FCB Grid Involvement How much does it matter to you Depends on Needs importance interest values Differentiation source of info content of info Purchaseuse occasion Communications Objectives Messages Information Incentives Rewards for behavior Marketing Tools Product Pricing Distribution Communications Communication Contact Points Direct marketing Advertising Sales promotion Public relations Event marketing Social media Etc Elaboration Likelihood Model Step 4 Allocation of Resources Timeframe Businessbuilding shortterm usually 1 year or less Brandbuilding longerterm Businessbuilding communications Sales promotion Event marketing Some direct response Brandbuilding communications Advertising Public relations Some direct response Some sales promotion Step 4 Allocation of Resources Forecast Estimated Return on Customer Investment How much will I get back in return for what I spend Step 5 Evaluation Measurement of Incremental Returns Actual Return on Customer Investment Then what you learned this time gets cycled back to re ne planning for next time Setting Objectives Objectives are your goals for the integrated strategic communications campaign Why set objectives Makes it easier to coordinate campaign elements Provides guidance for planning and decisionmaking Gives a framework for measuring results and campaign evaluation Marketing objectives vs Communication objectives Marketing objectives ales Market share Pro tability Return on investment Communication objectives Awareness Preference Purchase intent Characteristics of Good Objectives Measurable Speci c time period Speci c target audience How Awareness direct mailings outbound telemarketing exhibits at bar association shows and industry seminars Knowledge telemarketing seminars Liking Preference and Conviction salesperson calls seminars Purchase personal selling Objectives and the Planning Process Likely to have different objectives for current users competitive users and emerging users Within groups may have different objectives based on behavior 7 loyals vs occasionals heavy users vs light etc Objectives and the Planning Process Ultimately objectives need to deal with either behavior reinforcement or behavior change Communication objectives will lead to marketing objectives