Integrated marketing communications13/10/2012The new life

AgendaIndustry analysisIMCInsightsCareersAgency RemunerationWhat next

Industry Analysis

2011Cricket world cupAnna Hazare crusadeKolaveri Di

Reach of Indian media146 million tv viewing households, 623 channels82,000 newspapers with readership of 181.91 million132 million indian internet users

Indian Media and Entertainment landscapeIndustry size and growthIndian Media Business-3, Vanita Kohli Khanolkar 2010Rs Billion

SegmentRevenues 2011Growth%Advertising revenuePrint208.88.3139.4TV32910.8116.1Film92.911.5Digital advertising15.45415.4Music94.7Outdoor17.87.617.8Radio11.51511.5Animation and VFX3131.2Gaming1330Total72811.7300

Media sizeBennett Coleman- 43.62 bZee 23.25 bStar India - 16 bNetwork 18 14.26 bSony - 14bSun 14.90 bHT Media 14.53Dainik Bhaskar 10.78 bNDTV 10.70Deccan Chronicle 10.67

Growth drivers - 12-13%

Major Players4 large groupsWPP: Ogilvy, J. Walter Thompson, 141 Worldwide, Y&R, Grey Global$16 b 2012Publicis: Publicis, Leo Burnett, Saatchi & Saatchi $7.7 b 2012Interpublic: Lowe Worldwide, McCann Erickson, Momentum$7 b 2012Omnicom Group: DDB Mudra, BBDO Worldwide, TBWA $13.9 b 2012

Sir Martin SorrellJew, Think British, Act YeddishWorked with Mark McCormack, IMGWPP in 1985Invested in small media companies till he did hostile takeover of JWT(97)and Ogilvy(99)Net worth $ 200 mKnighted in Millennium Powerlist

ConceptsMarketing 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 IntegratedMarketing CommunicationsA 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 MixesMarketing Mix:

Product or ServicePricing DistributionPromotionPromotional Mix:

AdvertisingDirect MarketingInteractive/internet marketing/MobileSales PromotionPublicity/Public RelationsPersonal Selling

Any paid form of nonpersonal communication about an organization, product, service, idea or cause by an identified sponsor.AdvertisingDisadvantages of advertisingHigh costs of producing and media Credibility problems and consumer skepticismClutterDifficulty in determining effectiveness

Advantages of advertisingAdvertiser controls the messageCost effective way to communicate with large audiencesEffective way to create brand images and symbolic appealsOften can be effective way to strike responsive chord with consumersTHE PRIMARY FUNCTION OF ADVERTISING IS TO CONVERT PRODUCTS INTO BRANDS

Advertising objectivesIncrease sales, increase turnover, increase footfalls

Increase awareness, increase recall, improve imagery, increase intention of purchase

Classifications of Advertising Advertising to Consumer MarketsNational advertisingRetail/local advertisingAdvertising to increase demandPrimary demand for the product categorySelective demand for a specific brandBusiness & professional advertisingBusiness-to-business advertisingProfessional advertisingTrade 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 marketingLack of customer receptivity and very low response ratesClutter (too many messages)Image problems particularly with telemarketing

Advantages of direct marketingChanges in society have made consumers more receptive to direct-marketingAllows marketers to be very selective and target specific segments of customersMessages can be customized for specific customers.Effectiveness easier to measure

Direct MarketingDirect marketing methodsDirect mailCatalogsTelemarketingDirect response adsDirect sellingInternetSMS

Direct person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to to purchase a product or service.Personal SellingDisadvantages of personal sellingHigh costs per contactExpensive way to reach large audiencesDifficult to have consistent and uniform message delivered to all customers

Advantages of personal sellingDirect contact between buyer and seller allows for more flexibilityCan tailor sales message to specific needs of customersAllows for more direct and immediate feedbackSales 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 ManagementConsiderations for developing the promotional program include:Type of product- urban/metroBuyers decision process impulsive/ Planned/ shoppingStage of product life cycleChannels of distribution

Public RelationsTools used by Public RelationsPublicitySpecial publications-Teller, HarmonyCommunity activity participation Orange Fund-raising ICICI credit cardsSpecial event sponsorship- Manikchand FFPublic affairs activities Kala Ghoda festival BPLThe 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 premiumsSales PromotionTrade-orientedTargeted toward marketing intermediaries such as retailers, wholesalers, or distributorsPromotion allowancesMerchandise allowancesPrice dealsSales contestsTrade showsConsumer-orientedTargeted to the ultimate users of a product or serviceCouponsSamplingPremiumsRebatesContestsSweepstakesPOP materials

Push Versus PullPush PolicyPull Policy

"Push" TechniquesPoint of sale displays, racks, standsTrade deals, special displaysDealer premiums, prizes, giftsCooperative advertising dealsAdvertising materials, mats, insertsPush money or "spiffs"Collaterals, catalogs, manualsTrade shows, conventions, meetings

"Pull" TechniquesSampling, free trialCouponsPremiums or giftsContests, sweepstakesPrice-off dealsRefunds/rebatesFrequency/loyalty programsPoint-of-purchase advertising

Large ad agencies in India as per billings -Bombay Ad Club

No.Agency1Ogilvy india2JWT India3McCann Erickson India4Mudra Communications5Lowe India6Leo Burnett India7Rediffusion DYR8Draftfcb Ulka9Grey Worldwide10R K Swamy BBDO

Creative Strategy: Planning and Development

The triangle of delight CreativeMediaClient ServiceAdvertising

Responsibilities of an CSEBriefStrategy/InsightsCreativeMediaFinancialsCollectionMonitorResearch

BriefUnderstand the productManage the informationLearnings from researchSelect the key benefitExcite the creative team

Advertising Creativity CREATIVE STRATEGY: Determining what the advertisingmessage 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 sellsPoets

Artistic/aesthetic value and originality

Advertising ObjectivesInformative 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% perspiration10% ideation

How does advertising work?Consumers pay most attention to messages which are relevant to their own circumstances and point of viewMessages act as signpostsConsumers do things if the message motivates them to shift from their current viewsESP vs. USP

Selling Proposition- Unique/ EmotionalEach advertisement makes a proposition to the customerIt must be one the competition cannot or does not offerIt must be strong enough to pull over new customers to the brandThree characteristics of a unique selling proposition:

An ad that uses a unique selling proposition

Creating a Brand ImageUsed when competing brands are so similar it is difficult to find or create a unique attributeThe creativity strategy used to sell these products is based on a strong, memorable identity for the brand through image advertisingFrequently used for products such as soft drinks, perfume, liquor, clothing, airlines.

Players in AdvertisingAdvertisersMediaAdvertising agenciesSuppliersProcessorsFilm production houses &Consumerwww.afaqs.com

Creative ProcessPreparationGathering informationIncubationSetting problem asideIlluminationSeeing the solutionVerificationRefining the idea

Inputs To The Creative ProcessGeneral Preplanning Input:Books, periodicals, trade publications, clipping services, journals, magazines, etc.Trends, developments in marketplaceProduct Specific Preplanning InputQualitative and quantitative studiesProblem detection studiesFocus groupsEthnographic studiesPreparation/Incubation/Illumination

AskingQuestionsInputs to the Creative ProcessReading andanalysisProductresearchListeningto othersTrying theproductWorking withthe clientCREATIVEPROCESS

Verification and Revision of IdeasObjectives:Evaluate ideas generatedReject inappropriate ideasRefine remaining ideasGive them final expressionTechniques used:Directed focus groupsMessage communication studiesPortfolio testsViewer reaction profilesUse of Storyboards and Animatics

Consumer Insight:

An insight is

The effectit has

A deeply felt human truth that links our lives to our brandInstant attentionTouched a nerveHit a hot-buttonStruck a chordA new angle on old subjectLong term connectionThe brand understands helps meTrue and new+

InsightsEveryone 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 photoWomen always spare a last look in the mirrorCar drivers look down upon three-wheelers, three wheelers look down upon 2 wheelers, and so onWhen it comes to a dish, we always check others before touching yoursPeople communicate strangely in different situations train, bus, lift, roadRegional behaviours are real. Parsis will swear, Lucknowis will always stand for nazakat and Maharashtrians for their lack of itPeople who are not really perceived as good looking use lesser cosmetics. And vice versa

INSIGHT BASED COMMUNICATION STRATEGYTarget AudienceCurrent BeliefDesired BeliefCurrent DoDesired DoPropositionSupport

ADVERTISING STRATEGYYes MothersKidsI 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/chocholatesAVOIDShift!Pepsodent kills germseven hours after brushingSuperior germicheck formula

Advertising CampaignsAdvertising 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 ThemeThe central message that will be communicated in all of the various IMC activitiesIdea The power of an ideaAn idea can change your lifeBMW The Ultimate Driving MachineAlto Lets Go

Successful CampaignsNikeJust do itDominos PizzaHungry Kya?Asian PaintsKyonki Har ghar kuch kehta haiCoca ColaThanda matlab Coca ColaIntelIntel insideHutch Wherever you go our network follows Vodafone' Power to youPepsiChange the game

Top Ten Advertising Slogans of the CenturyDeBeersNikeCoca-ColaMiller LiteAvisMaxwell HouseWheatiesClairolMorton SaltWendys

Diamonds are foreverJust do itThe pause that refreshesTaste great, less fillingWe try harderGood to the last dropBreakfast of ChampionsDoes she or doesnt sheWhen it rains it poursWheres the beef?Company or Brand Campaign Theme

Mortons

Copy Platform Outline1.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 StyleAdvertising AppealThe approach used to attract the attention of consumers and/orTo influence consumer feelings toward the product, service or causeCreative Execution StyleThe way a particular appeal is turned into an advertising messageThe way the message is presented to the consumer

Advertising AppealsInformational/Rational AppealsEmotional Appeals

Two Broad Categories of AppealsFocuses on the consumers practical, functional,or utilitarian need for the product or service

Emphasizes the features or benefits

Messages emphasize facts and logicRelate 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 AppealsFeature appealsFocus on the dominant traits of the productCompetitive appealsMakes comparisons to other brandsFavorable price appealsMakes price offer the dominant pointNews appealsNews or announcement about the productProduct/service popularity appealsStresses the brands popularity

Informational/Rational AppealsComfortConvenienceEconomyHealthQualityDependabilityDurabilityPerformanceEfficiency

Rational Motives

Emotional Appeals

Achievement / AccomplishmentActualizationAffectionAmbitionArousal / stimulationComfortExcitementFearHappinessJoyLoveNostalgiaPleasurePrideSafetySecuritySelf-esteemSentimentSorrow/griefPersonal States or Feelings

Emotional Appeals

AcceptanceApprovalAffiliation / belongingEmbarrassmentInvolvementRecognitionRejectionRespectStatusSophisticationSocial-Based Feelings

Transformational AdvertisingThe ads create feelings, images, meanings, and beliefs about the product or service that may be activated when consumers use itTransformational 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 brandIt 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 adA 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 AppealsReminder 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 TechniquesStraight-sell or factual messageScience / technical evidenceDemonstrationComparisonSlice of lifeTestimonial AnimationPersonality SymbolFantasyDramatizationHumorCombinationsCreative execution: The way an advertising appeal is presented.

This ad uses a straight sell execution of a product popularity appealSource: Courtesy Neutrogena Corporation

Creative Tactics: Print AdvertisingHeadlineWords in the leading position of the ad. Attract readers attention/interest and encourage them to read the rest of the adDirect Headlines straightforward and informative about the product or serviceIndirect Headlines provoke curiosity or interest by use of questions, provocations, challenges, how-toSubheadsSmaller than the main headline, larger than the copy. Used to break up large amounts of copy and highlight key sales pointsBody copyThe main text portion of a print ad, used to present the relevant information. Content depends on appeal and execution style

Creative Tactics: Print Ad ComponentsVisual ElementsMust attract attentionCommunicate idea or imageWork in synergistic fashion with headline and copyIllustrations such as drawings or photosIdentification marks such as trademarks, logos, brand nameLayout or Format The physical arrangement of the various elements of a print ad including headline, subheads, body copy, illustrations, and identifying marksDecisions include size, color, white space

Elements of a Print adHeadlineVisualBody CopyIdentification Marks

Insert Savin ad from 6/e acetates here T9-6

Creative Tactics: Print Ad Layout

SizeExpressed in columns, column inches or portions of a pageColorBlack & white or two-, three-, or four-color printingWhite SpaceMarginal and intermediate space on the page that remains unprinted

Advertising CreativeWhat is Advertising Creative?

Advertising CreativeAdvertising 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 AudienceWhom 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 transportationPeople 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 referenceThe 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 IdeaSomething 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. 2Were 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: TelevisionVideo what is seen on the screen. Includes decisions regarding visual, sequencing, setting, lighting, talent, etc.Audio voices, music, sound effectsVoiceover delivery of the messageMusic Well known songsJingles

Components of a TV Commercial

Creative Tactics: TelevisionPlanning 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

PreproductionAll work before actual shooting, recordingProductionPeriod of filming, taping, or recordingPostproductionWork after commercial is filmed or recorded

Creative Tactics: TelevisionPreproduction TasksSelect a directorChoose production companyBiddingCost and timingProduction timetableSet constructionLocationAgency, client approvalCastingWardrobesProduction Meeting

Creative Tactics: TelevisionProduction TasksLocation versus set shootsNight/weekend shootsTalent arrangements

Creative Tactics: TelevisionPostproduction TasksEditingProcessingSound effectsAudio/video mixingOpticalsClient/agency approvalDuplicatingRelease/shipping

Evaluation and Approval of Creative WorkConsistent 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 BajajFear of HondaKinetic popularityStrengths from indiannessCountrywide appeal

NewNo relevance in terms of customerNo relevance in terms of productsNo relevance in terms of environment

But, the core of the thought was IndianThe new commercial was focussed on CHANGING INDIA, UNCHANGING INDIANNESS

Careers

CreativeCopy writingReadingLateral thought processArt direction/graphicsArt appreciationMusic, painting, singing, sports, films

Account managementBusiness manager, single point contactStrategic thought process - linear/lateralReadingLateral thought processArt direction/graphicsArt appreciationMusic, painting, singing, sportsNo role for postman, dolls, toyboy looking for some cool fun

MediaMedia Planning - Strategic, technology comfort, statistical mindMedia buyer - Previous sales/media sales experience, smart, good negotiation skillsMedia Operations - Detailing, meticulous

OverallGood communicatorExpressiveThinking of your ownhatela/hateliClassyArt appreciatorJob sceneAmazing, challenging9 to 5

SWOT of Indian Ad Industry

StrengthsLarge world class Talent Pool India is winning a slew of awards on world stageStrong 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 scaleOpportunitiesIndias ad to GDP ratio is still nascent The advent of outsourcing in advertising The blossoming economy and increased competition

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

Media Planning and Strategy

Media TerminologyMedia 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 TerminologyPrint 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 PlanningLack of informationInconsistent termsSerious time pressureMeasurement problems

Developing the Media PlanSituation Analysis

Developing the Media PlanAnalyze the MarketEstablish Media ObjectivesDevelop Media StrategyImplement Media StrategyEvaluate Performance

Where to Promote?Brand and Category AnalysisPercentage of brand sales to total all India brand sales in marketPercentage of total Indian population in market

Brand Development Index

Maggi sales inAssamtonnesMaggisales all IndiatonnesPopulation of AssamPopulation of IndiamillionBDI3502800351400(12.5%)(2.5%)12.5/2.5x100=500

Where to Promote?Brand and Category AnalysisPercentage of product category total sales in marketPercentage of total Indian. population in marketCDI =X 100Category Development Index

Category Development Index

Noodlesales inAssamtonnesNoodlesales all IndiatonnesPopulation of AssamPopulation of IndiamillionBDI4504500351400(10%)(2.5%)10/2.5x100=400

Brand and Category AnalysisHigh market shareGood market potentialHigh market sharePoor market potentialLow market shareGood market potentialHigh CDILow CDILow market sharePoor market potentialHigh BDILow BDI

Brand and Category AnalysisThe 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.High CDILow CDIBoth the product category and the brand are doing poorly; not likely to be a good place to advertise.High BDILow BDI

Media Planning Criteria ConsiderationsThe media mixTarget market coverageGeographic coverageSchedulingReach versus frequencyCreative aspects and moodFlexibilityBudget considerations

Target Audience CoveragePopulation excluding target marketTarget marketMedia coverageMedia overexposureCoverageExceedingMarketPartialMarketCoverageFullMarketCoverageTargetMarketProportion

Three Scheduling MethodsJanFebMarAprMayJunJulAugSepOctNovDec

Reach and FrequencyUnduplicated Reach of BothDuplicated Reach of Both

Weight metricsHow much advertising volume is required to achieve advertising objectives

Gross ratings (GRP)Target ratings (TRP)Effective ratings(ERP)

GRPGross weight that a particular advertising campaign has delivered(Duplicated audience)GRPs= Reach x Frequency

TRPAdjust vehicle ratings to reflect just those individuals who match the advertisers target audienceTRPs are non wasted weights

ERPAn 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 FrequencyOne exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances.

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

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 frequencyAlthough there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important

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 CrShimp, IMC, 2007, CengageIs 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

Plan A:100% TVPlan B: 67% TV, 33% radioPlan C: TV(50%), magazines(50%)Plan D: TV(67%), Outdoor(33%)Reach%(1+ exposures)69799187Effective reach (3+ exposures)29485361Frequency2.85.53.26.7GRPs193435291583ERPs81264170409Cost/GRP62,17627,58641,23720,583Cost/ERP148,14845,45570,58829,340

Effects of Reach and FrequencyOne exposure of an ad to a target group within a purchase cycle has little or no effect in most circumstances.

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

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 frequencyAlthough there are general principles with respect to frequency of exposure and its relationship to advertising effectiveness, differential effects by brand are equally important

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 toDetermining FrequencyBrand historyBrand shareBrand loyaltyPurchase cyclesUsage cycleCompetitive share of voiceTarget group

Message or Creative Factors Important toDetermining FrequencyMessage complexityMessage uniquenessNew vs. continuing campaignsImage versus product sellMessage variationWearoutAdvertising units

Media Factors Important toDetermining FrequencyClutterEditorial environmentAttentivenessSchedulingNumber of media usedRepeat Exposures

Determining Relative Cost of MediaCost of ad space(absolute cost)CirculationCPM =X 1,000Cost per thousand (CPM)

Determining Relative Cost of MediaCPRP =Cost of commercial timeProgram ratingCost per rating point (CPRP)

Television Characteristics Advantages

Mass coverageHigh reachImpact of sight, sound, and motionHigh prestigeLow cost per exposureAttention gettingFavorable image Disadvantages

Low selectivityShort message lifeHigh absolute costHigh production costsClutter

Radio CharacteristicsAdvantages

Local coverageLow costHigh frequencyFlexibleLow production costsWell-segmented audiencesDisadvantages

Audio onlyClutterLow attention gettingFleeting message

Magazines CharacteristicsAdvantages

Segmentation potentialQuality reproductionHigh information contentLongevityMultiple readers Disadvantages

Long lead time for ad placementVisual onlyLack of flexibility

Newspapers CharacteristicsAdvantages

High coverageLow costShort lead time for placing adsAds can placed in interest sectionsTimely (current ads)Reader controls exposureCan be used for coupons Disadvantages

Short lifeClutterLow attention-getting capabilitiesPoor reproduction qualitySelective reader exposure

Outdoor CharacteristicsAdvantages

Location specificHigh resolutionEasily noticedLowest price per person Disadvantages

Short exposure time requires short adPoor imageLocal restrictions

Direct Mail CharacteristicsAdvantages

High selectivityReader controls exposureHigh information contentOpportunities for repeat exposures Disadvantages

High cost/contactPoor image (junk mail)Clutter

Social Media/Digital media/SEO/SEM/Mobile Media Advantages

Inexpensive(pay per impression)User selects product informationConsumers can purchase effectivelyUser attention and involvementInteractive relationshipFlexible message platform Disadvantages

Limited creative capabilitiesTechnology limitationsValid measurement techniquesLimited reach

Agency Remuneration

Agency Remuneration Agency compensation has dropped from 15% of total communication spend in the 80s to below 6-7% todayMainly due to undercutting as a result of competitionDiverse revenue models

Commissions from media (15%)Reduced commission system(

Remuneration ModelsCommission Model15% of media spend is paid back by media owner to agencyEarliest form of remunerationSlowly being phased outYet, still popular in India, especially with PSUs

IssuesRemuneration is commensurate to ad spendTendency of ad agencies to propose TV led campaigns, on account of higher revenueNo performance based incentiveDoes not take into account actual work hours put inMakes small spenders unattractive to agenciesDivergence of media and advent of BTL, ambient media, etcProne to last minute cuts, thus makes revenues for agency uncertainDifficult to staff, given irregular nature of ad spendingThe divergence of media as a separate function

Payment by Results (PBR)Three approachesRetainer + PBRLower retainer but with possibility of additional payPure PBRPurely performance based remunerationRetainer + BonusFixed retainer, plus bonus payments at the discretion of client based on years performanceMajor hindrancesWhat to measureDecoupling the effect of other marketing actionTime lapse in measurementDifficulty 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, printTribal DDB(digital)RAPP Data led multi channel engagementDDB Health & Lifestyle

Agency PushNetworkingBrochuresAffiliation and AccreditationPublishing relevant researchMaintaining agency portfoliosAwards shelfWebsites One to one contactAgency credentials presentationsSelf promotion adsNot particularly commonNo readily available examples from India

What does it offer?Career fulfillingchallengingmoneygrowthLifestyle -9 to 5 jobjoyfamily lifetravel and hotelsglamour

What do you need to have in you?Information comfortKnowledge attitudeLeadership skillsLove peopleRelationship builderGood presentation skillsPersonalityThought worker

Future shockSpecialisation will be the order of the dayIn 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 shockAdvertisers will buy strategy, creative and media from specialistsThey will have an Advertising co-ordinatorLarge agencies will try to specialise in any one of these fieldsSmall agencies will be advertising even smaller brands

Future shockBusinesses will be more vulnerable and will work towards reducing risksResearch will only continue to grow, with the virgin territory of the internet

So, is client service an endangered species?99% India believes in inertiaIT will change the way advertising operates

If you do enough things poorly, you will go out of businessBILL GATES

Business@The Speed of ThoughtInformation flow is the lifebloodThe internet changes everythingManage knowledge to improve strategic thoughtsBring insights to business operationsExpect the unexpected

Art of survivalResolveDisciplineKnow moreAdaptPass the baton with a smile

OGILVY ON ADVERTISINGIf 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

Vinita Bali: to quote the bible

Those whom much is given, much is expected, *2011 dynamic year. 2012, slow starter. Hopefully this Diwali will make us all smile. Digital ecosystem has began impacting various segmentsFilms saw benefits from digital distribution with wide releases Cable digitization now all set from Nov 1st 2012Digital music sales downloads

multiple films crossing the INR 100 Crore mark at the Box office, growing commitment from the cable industry to pursue digitization as per the governments mandate, regional markets defying recessionary trends in terms of growth of television and print, the governments commitment towards phase 3 for radio and the growth of new media. We wait to see the action in the television distribution space, and in radio, as both industries undergo regulatory changes. It will also be interesting to see print players adapt to the growing challenge being posed due to new media and changing news consumption habits. Lastly, new media such as Animation / VFX, digital advertising, and gaming are expected to continue their growth momentum.

The overall M&E market in India is expected to grow at a compounded annual growth rate of 15 percent per annum over the next five years, to reach INR 1.4 trillion in 2016. The potential for increase in media penetration, growing importance of regional markets, increasing consumption in tier 2 and 3 cities, impact of regulatory changes, more focused consumer research, innovation in content, marketing and delivery platforms to serve different niches, increasing device penetration like mobiles, tablets, PCs etc., all point towards a very positive future for the industry.

***All 2008, pincludes pay revenue in TV print, radio, film, internet, usicay: 10m dth + 83 m cable@150 pm***Wire Plastic Products - Wire Shopping basket manufacturer*******Cadburys For adults, for all adults, for occasions, for gifting, for examinations, for all victory

**************************************In 1949, William Bernbach, along with colleagues Ned Doyle and Maxwell Dane, formed Doyle Dane Bernbach (DDB), the advertising agency that would create the revolutionary Volkswagen ad campaigns of the 1950s and 1960s.Bernbach's artistic approach to print advertising was innovative, and he understood that advertising didn't sell products. The strategy was to try to keep customers, creating and nurturing "brand ambassadors" rather than attract the attention of those who were uninterested in the product. Bernbach's team of "agency creatives" was headed by Helmut Krone, who pioneered the idea of simplicity in print advertisements. His repeated use of actual photographs as opposed to the embellished illustrations of competing agencies spawned comfortably consistent, yet unique print ads that met DDB's goal of stark departure from the current advertisement techniques.[1]Because Volkswagens ad budget in 1960 was only $800,000[2] DDBs bare-bones, black-and-white approach, coupled with a projected common theme of irreverence, fit Wolfsburgs needs well. Each Volkswagen ad was designed to be so complete that it could stand alone as a viable advertisement even without addressing all aspects of the car, and research by The Starch Company showed that Volkswagen advertisements had higher reader scores than editorial pieces in many magazines, a sign of the campaign's runaway success, as Volkswagens advertisements often didn't even include a slogan or logo.

Our little car isnt so much of a novelty any more. A couple of dozen college kids dont try to squeeze inside it. The guy at the gas station doesnt ask where the gas goes. Nobody even stares at our shape. In fact, some people who drive our little flivver dont even think 32 miles to the gallon is going any great guns. Or using five pints of oil instead of five quarts. Or never needing anti-freeze.Or racking up 40,000 miles on a set of tires. Thats because once you get used to some of our economies, you dont even think about them any more. Except when you squeeze into a small parking spot. Or renew your small insurance. Or pay a small repair bill. Or trade in your old VW for a new one. Think it over.**The Volkswagen missed the boat.The chrome strip on the glove compartment is blemished and must be replaced. Chances are you wouldn't have noticed it; Inspector Kurt Kroner did.There are 3,389 men of our Wolfsburg factory with only one job; to inspect Volkswagens at each stage of production. (3,00 Volkswagens are produced daily; there are more inspectors than cars.)Every shock absorber is tested (spot checking won't do), every windshield is scanned. VWs have been rejected for surface scratches barely visible to the eye.Final inspection is really something! VW inspectors run each car off the line onto the Funktionsprstand (car test stand), tote up 189 check points, gun ahead to the automatic brake stand and say "no" to one VW out of fifty.This preoccupation with detail means the VW lasts longer and requires less maintenance, by and large, than other cars. (It also means a used VW depreciates less than any other car.)We pluck the lemons; you get the plums.*********Doyle, Dale Burnbeck

Art: Helmut Krone*******************************************850 crores gave 51% to Omnicom**************