MM – Instructor Manual

CHAPTER 11 - ADVERTISING MEDIA AND

INTEGRATED MARKETING COMMUNICATIONS
KNOWLEDGE OBJECTIVES

1. Understand key issues with each of the three media decisions

2. Obtain an appreciation for the strengths and weaknesses of each advertising medium
3. Know the various non-advertising components of integrated marketing communication
4. Gain familiarity with scheduling and integration issues

CHAPTER OUTLINE

 Media Decisions and Choosing the Appropriate Media

 Integrated Marketing Communications
 Beyond Advertising
 Scheduling and Integration
 Measuring Media Effectiveness
 Summary

1. Media Decisions

Section relates to knowledge objective #1

Integrated marketing communications is about getting the message to the target audience across
several media. There are three key questions that need to be answered when running campaigns:
1) how much to spend, 2) when to spend, and 3) what media to use.

A. Determining the amount - The amount to spend on the entire communications

package is usually determined by one of three methods.
a. Budget is set at a percent of previous years sales (percent of sales)
b. Spend in approximation to what competitors will spend (competitive parity)
c. Establish strategic advertising goal (awareness, attitudes) and work backwards
to determine needed spending.
A key issue is whether the firm wishes to maintain the status quo (brand share,
awareness, etc.), wants to increase those items, or if the product is to be milked.
Using either the percent of sales and competitive parity methods it is easy to
determine the budget amount. However, if strictly adhered to it would mean that
when sales decline, budgets should contract meaning less presence in the market.

Figure 11.1 Proportions of Ad Spending to Sales

This figure applies to knowledge objective #1

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Figure shows select energy drinks on the market. Red Bull spends the most on advertising, and
has the greatest sales; Monster, Rockstar, and the rest spend less and their sales are less as well.

B. Reach, Frequency & GRP - In order to determine the budget using the method based
upon strategic goals, an exposure goal should be set and that requires an
understanding of how advertising exposures are measured.
 Reach is the percentage of the target audience seeing an ad at least once. The
goal is to expose as many of the target audience as possible to the ad, using media
that is most cost-efficient for finding the target audience
 Frequency is the average number of times the target audience sees the ad within a
specified time period. The number of exposures is based upon the marketing and
advertising goals. For a goal of awareness, fewer exposures would likely be
needed than if the goal is persuasion. Unfamiliar and complex products would
probably need more exposures than well known simple products.
 Gross Ratings Points (GRP) is reach x frequency. A ratings point is equal to 1%
of households with TVs. There are 112,000,000 homes measured in the U.S., so a
show with a 10 rating would mean that 11.2 millions TVs are tuned to the show
(.10 x 112,000,000 = 11,200,000). A 7.2 rating for a show would mean that
8.064 million TVs were tuned to the show (.072 x 112,000,000 = 8,064,000).

Figure 11.2 Advertising Time Costs More During Popular TV Shows

This figure applies to knowledge objective #1

Figure provides an XY graph of price (Y-axis) and Ratings (X-axis) for several shows. In
ascending order of ratings: Bones, Burn Notice, NCIS, American Idol and Dancing with the
Sarts. Graph shows a strong relationship between increased ratings and increased price charged
for an ad. Some TV shows are bargains (e.g.,NCIS), delivering more audience exposure than
they charge, and others are a little costly (e.g., Bones), charging a bit more than they deliver in
terms of audience viewership.

TEACHING NOTE: For discussion, students might be asked why a lower rated show might
command a higher price for advertising than a more highly rated show. Reasons may be time of
day, day of week, season, or demographics of the show. In general, prime time (8 to 11 PM) will
command higher rates than other times (although prime time typically has higher ratings). Day
of the week is important as Thursday provides lead time to the weekend (consumers are off work
and conduct their shopping), so Thursday shows frequently carry a premium. Seasonality plays a
role as well, as rates are higher in the winter than the summer (although again, higher viewer-
ship in the winter than summer) and lastly the viewer demographics impact the advertising rate.
The long running FOX TVshow The Simpson’s, although not highly rated commands a premium
due to its desirable demographics (males 6-11 and 18-34). The18-34 demographic is particularly
valuable as 18-34 year old males typically do not watch much TV (opting for videogames). For
more info: http://www.simpsonschannel.com/

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B. Media Planning & Scheduling

There are three basic media schedules
 Continuous-a regular schedule of airing consistent with the buying cycle to
remind customers.
 Occasional-also referred to as pulsing or flighting, simply less frequent or
with less intensity than a continuous schedule.
 Seasonal-acknowledges the seasonal demand for a product. Advertising
done in advance of demand. Recognizes that advertising off-season has no
effect on demand.

2. Integrated Marketing Communications (IMC) the Strengths of Individual Media

Section relates to knowledge objective #2

To make prudent decisions concerning media selection, an understanding of the strengths and
weaknesses of each media type is needed. The viewpoint of IMC is that all marketing
communication activities, as well as other mix variables, send a consistent message. This does
not mean that they be identical. Different media should offer supplemental and complementary
information.

The criteria used for examining strengths and weaknesses of the various media are cost, reach,
frequency, how targeted it is and ad content. Ad content criteria are amount of information,
ability to provide a product demonstration, and vividness & emotion. The media considered are
TV, Radio, Newspapers, Magazines, Billboard, Web, and Direct mail.
 TV - Strengths: reach, ability to demonstrate the product, and its vividness &
ability to convey emotion are the greatest of any medium. It is also fairly strong
at providing information. Weaknesses: not very targeted, low on frequency,
weakest in terms of cost (by far the most expensive medium).
 Radio – Strengths: able to convey vividness and emotion, relatively inexpensive
(much less so than TV), adequate reach, frequency, and somewhat targeted.
Weaknesses: less able to convey information, limited ability to provide product
demonstrations.
 Newspapers - Strengths: relatively inexpensive (much less so than TV), able to
provide adequate amounts of information. Weaknesses: lack of reach, frequency,
less targeted, relatively unable to demonstrate the product, lack of vividness &
emotion.
 Magazines - Strengths: among the best in reach, fairly targeted (not the best, not
the worst), among the best at conveying information. Weaknesses: relatively
expensive, lacks frequency (weekly, monthly, quarterly), lacks ability to
demonstrate the product.
 Billboard – Strengths: among the least expensive, near the highest in terms of
frequency. Weaknesses: not targeted, mediocre reach, provides minimal
information, unable to demonstrate product, lacks vividness and emotion.
 Web – Strengths: least expensive (along with direct mail), high levels of reach,
frequency, information, able to demonstrate the product, and targeted.
Weaknesses: can lack vividness & emotion.

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 MM – Instructor Manual

 Direct mail – Strengths: least expensive (along with Web), most highly targeted,
able to provide the most information, high levels of reach and frequency.
Weaknesses: not able to demonstrate the product, lacks vividness and emotion.

TEACHING NOTES: Web advertising is not limited to banners and pop-ups. Company’s are
now posting advertisements that cannot be aired on U.S. TV directly to youtube.com, such as
condom maker Durex’s “Get it On”ad created by Superfad featuring “balloon animals”.

TEACHING NOTES: The following article describes creative uses of advertising by magazines
The Economist and The Atlantic - Brainy Brand Names Where They’re Least Expected, By
STUART ELLIOTT The New York Times Published: October 2, 2008

Figure 11.3 Media Choices: Relative Strengths on Business Measures

This figure applies to knowledge objective #2

Figure provides a bar graph of the relative strength of each of the 7 media discussed above on:
how inexpensive, reach, frequency, and how targeted each is.

Figure 11.4 Media Choices: Relative Strengths of Ad Content

This figure applies to knowledge objective #2

Figure provides a bar graph of the relative strength of each of the 7 media discussed above on:
information, product demo, and vivid & emotion.

3. Beyond Advertising

Section relates to knowledge objective #3

Integrated marketing communications encompasses more than just different forms (media) of
advertising. However, the key remains to have a consistent message across all components of
the IMC and that advertising concepts such as AIDA (attention, interest, desire, action) still
apply. Section discusses the remaining components of IMC, personal selling, public relations,
publicity, product placement, event sponsorship, and sales promotion.

Figure 11.5 Choice between Advertising and a Sales Force

This figure applies to knowledge objectives #2 & #3

Figure provides a summary of key considerations for selecting advertising or a sales force.
Advertising is well suited when customers are geographically dispersed, the product is simple,
inexpensive, standard, and seen as less risky. However, advertising can be expensive and its
effective difficult to determine. Personal requires geographically concentrated customers, is best
suited for expensive, technical, and complicated products, typically for business-to-business
products. It can be expensive, but provides quick feedback and measurable results.

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 Personal Selling - is the face-to-face conversation aimed at influencing one of the people.
While used in consumer products settings (retailing, automobiles to name two), personal
selling is critical for complex products in business-to-business. Medical equipment,
machinery, pharmaceuticals are all dependent upon personal selling. Personal selling is
expensive (training and compensation costs). Key issues with respect to a sales force:
size, territory, and compensation. Personal selling is key to push strategies.
 Public Relations (PR) - include press kits (new releases, background information,
biography, company history), through print, video, and web content. PR also includes,
events, speaking engagements, sponsorship, community involvement, and crisis
management.
 Publicity - is company related material appearing in media outlets. The company does
not pay for the publicity and it has no control over the final content or whether it is
favorable.
 Product Placement - occurs when a product appears on a TV show, movie, or video
game. Typically the product appears for a fee. The logic behind product placements is
that it is subtler than an advertisement. The hope is that some positive association will
result. Therefore, the vehicle within which the product is placed and the characters
associated with the product must be carefully evaluated.
 Event Sponsorship – firms are underwriting a variety of events. Event sponsorship has
typically been for sporting events, but now includes a range of events including cultural
and artistic venues.
 Sales Promotion – include both channel based and consumer based promotion. Specific
forms include: coupons, rebates, promotional pricing, loyalty programs, product samples,
contests, and sweepstakes. Sales promotions are effective in short-term sales increases
and inducing brand switching.

Figure 11.6 Allocation of Communication and Promotion Budget

This figure applies to knowledge objective #3

Figure provides a pie chart showing the allocation among trade promotion, media advertising,
and consumer promotion. Nearly 60% of budgets are allocated to trade promotion, slightly less
than 25% to advertising, and just under 20 percent toward consumer promotion.

TEACHING NOTE: 3 movies that provide excellent examples of product placement are the
remake of “The Italian Job” which featured the then recently launched BMW made MINI-
Cooper vehicle. It could also be said that the Italian city of Venice featured early in the same
movie was also a form of product placement. The Tom Hanks movie “Cast Away” featured
FedEx throughout much of the movie. Lastly, there is the humorous scene from “Wayne’s
World” in which the character of Wayne goes through a laundry list of products (all prominently
displayed-Pizza Hut, Doritos, Reebok, Pepsi) while contending that he will not bow to any
sponsor.

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TEACHING NOTE: The movie “Talladega Nights” provides examples of both product
placement and sponsorship. The recreation of the racing scenes provides examples of
sponsorship with the cars emblazoned with multiple sponsor decals. This is really product
placement. There is the scene in which the father is thrown out of an “Applebee’s” restaurant
ranting, “I'm a veteran! And a diabetic! Applebee's has rats! I found a whole rat in my Cobb
salad!” or when Ricky Bobby’s son Texas Ranger Bobby shouts, “Chip, I’m all jacked up on
Mountain Dew!”

TEACHING NOTE: Following on the NASCAR theme, compare the victory speech made by a
veteran driver against an inexperienced driver. The experienced winner will be far more relaxed
and reel off many more sponsors than the inexperienced driver, this is also true for when drivers
drop out of the race and are subsequently interviewed. All drivers go to school in order to learn
how to mention sponsors during interviews. You also see some unidentified individual(s)
wearing a hat and/or shirt with a sponsor’s logo clearly visible forcing their way into the
background during such interviews.

4. Scheduling and Integration

Section relates to knowledge objective #4

A. Scheduling - A seasonal product demand indicates advertising just prior to the start of
the season. The decision whether to advertise continuously or occasionally, can
depend on financial considerations. However, firms lacking resources can be
creative, using less expensive media to advertise on a continuous basis. In addition to
seasonality and cost considerations, marketing goals also impact scheduling. If the
goal is awareness, advertising will likely have to be frequent enough so that basic
knowledge saturates the target market. Saturation level can determine scheduling, as
saturation level can be smaller if the target market is large. To stimulate repeat
purchasing, the schedule has to correspond to purchasing cycle. Lifecycle also has to
be considered.

TEACHING NOTE: Vans is a company that has relied heavily on event sponsorship. Being a
small niche shoe company, Vans has sponsored surfing, skateboarding, and BMX events that
have morphed into the Vans “Warped Tour”- a mixture of alternative sports and music event. It
has traditionally relied on sponsorship and magazine advertising due to cost constraints.

B. Integration - Cost and fit with target segment are key considerations. Cost may
prevent national TV or mega-event sponsorship. But local TV and other forms of
advertising are available as are local sporting events. Knowing one’s customer is
critical as is creativity in selecting outlets. Create a message by identifying brand
features, benefits, and visuals. Create images for visual media and facts into written
media. Use a common tag line to tie the messages together.

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Figure 11.7 An IMC Schedule

This figure applies to knowledge objective #4

Figure breaks down a one year schedule for a hypothetical company that does most of its
business in December. In March, advertising is as a reminder for the brand through magazine
ads and promotions are in the form of online coupons. In June, advertising is through cable TV
and meant to serve as a reminder about the company. The August/September time frame is back
to school time and promotions in the form of online coupons, referrals, and newspaper inserts
serve to remind the public of the brand. November sees 20 radio spots aimed at brand attitudes,
3 national TV ads instructing viewers to go online for more information aimed at Top-of-Mind
recall, and 1 national TV ad and event sponsorship designed to spur holiday purchasing. Near
Christmas, 3 big city local TV ads, newspaper inserts and a slight price cut all to stimulate last
minute holiday buying. After Christmas, large discount to move remaining product.

5. Measuring Effectiveness

Section relates to knowledge objective #4

If the goal is to boost awareness and memory, reach is the more likely media goal, which can be
measured by viewership, readership, circulation, and site traffic. Measures for memory as
discussed in chapter 10 will be used. Surveys can be used to assess attitudes and attitude change.
Once challenge in measuring effectiveness, is that consumers can recall the message, but not
recall the source. Scanner data and research panel data can also be used.

6. Summary
There are 3 key questions that need to be answered when running campaigns: 1) how much to
spend, 2) when to spend, and 3) what media to use. Understanding reach, frequency & GRP
help in budgeting. There are three types of spending patterns: continuous, occasional, and
seasonal. Selection depends on cost, product type, and marketing goals. There are a variety of
advertising media in addition to TV including: radio, magazine, newspaper, outdoor, web, and
direct mail. IMC extends beyond advertising to include personal selling, public relations,
publicity, product placement, sponsorships, and promotion. The key is to coordinate the
different IMC elements selected and to have consistency in message among them. Measuring
effectiveness becomes difficult across the many different elements, but measuring recall,
attitudes, response rates (direct mail, coupons & rebates), and click rates can be useful.

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

1. Find an example of IMC, e.g., —an ad campaign that crosses media—a billboard and a
radio spot, a TV ad and a magazine print ad, or an event sponsorship and an end-of-aisle

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display in a grocery store. What is the message the brand/company is trying to convey?
Why do you suppose they selected the media outlets they did?

Potential companies to suggest to students: Vans, Under Armour, Nike, New Balance,
UPS, Budweiser, Maybelline, L’Oréal, hand lotions/skin moisturizers (Vaseline
Intensive), or any automobile manufacturer. These companies use a variety of media
including TV, magazine, outdoor, and most do sponsorships. Have students check
company website to identify event sponsorships. Several websites have searchable
databases for print ads. A good study is to have students examine close competitors such
as Hyundai and Toyota, Coke and Pepsi, Burger King and McDonald’s.
2. Which media (broadcast TV, specialized cable TV, radio, XM radio, newspapers,
magazines, billboards, events, PR, salespeople, etc.) would you think are optimal fits for
marketing communications for the following categories? Why?

Students will need to make some assumptions such as: the firm has sufficient resources
so as not to be prevented from using any medium purely for financial reasons. They will
also likely assume that the products are not complex and fairly standard.

a. To tweens (8-9 to 12-13-year-olds)

Specialized cable TV, Web, events, product placements, other alternative vehicles, such
as in-store displays, ads at the start of DVD’s or movies. Individuals in these age groups
are less likely to read print magazines and newspapers or listen to traditional or satellite
radio. They are also somewhat less likely to view traditional network TV and more
likely to watch specialized cable TV. They are more likely to watch movies (in theatres,
DVD’s or streaming), download music from the Web and surf the Web. They will visit
stores and malls (with parents or friends), and spend time on websites devoted to their
favorite products, entertainers, or athletic star. Web-based PR should be considered as
well, depending on product.

b. For personal male products

To some extent, there is less “sensitivity” or “social embarrassment” associated with personal
products. However, still likely to communicate through specialized (directed towards men)
magazines. Direct mail might be a consideration, due to its confidential nature, if a mailing list
exists. Using the Web (a product-based site as well as pop-ups and banners). Also, more likely
to use specialized cable TV. Since it’s a “male” product, simple looking for vehicles that are
geared towards men - The History Channel or Spike TV, rather than Life Time on cable TV.
Event sponsorship might be feasible. PR is a candidate, depending on the specific product.

c. For personal female products

Reverse “b” above. Women targeted magazines, cable TV (Lifetime, travel channels,
cooking channels, etc), personal consultation might be one key distinction between the
genders. Event sponsorship might be considered. PR is a candidate, depending on the
specific product.

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d. For a city’s basketball team

Local TV, radio, “city” and regional magazines, newspaper, outdoor (billboards, public
transportation, etc). PR in the form of media interviews, very likely publicity would
occur as well (news piece). Web-based items: team website, Web-based newsletters or
mailing lists.

e. For a university’s performing arts center

Event sponsorship, underwriting (sponsoring) PBS shows, direct mail, newspaper,

outdoor, PR. In general, very similar to “d” except on a smaller (cost) level. So, likely
no TV.

f. For a nonprofit specializing in health care

Some minor differences in responses could occur depending on whether students think,
hospital/clinic, retirement community, or a nonprofit like the “Red Cross.” Direct mail,
local TV, cold calls or “donor” lists for telephone calls. Some personal selling (in the
case of a retirement community).

g. For a hybrid car

IF the car is a mainstream hybrid (Toyota Prius), all forms could be used. Which ones
would be at the discretion of the firm. IF the car is rather specialized (along the lines of
the Tesla roadster), then mass media will be eschewed for more narrow focused means
(Web, PR, specialized magazines).

h. For a sports car

Students will likely have similar responses to “h”. A key in both g & h is the need for
personal selling more so than the other products.

SUGGESTED ANSWERS TO MARKETING PLAN QUESTIONS

These questions are the same as those in Chapter 10. Use what you’ve learned in this chapter to
supplement and modify the answers you offered after reading Chapter 10.

Promotion:
What are our marketing communications (advertising) goals? Promo1

Goals should be similar/same to those in Chapter 10. Encourage students to now think
about how to utilize the various advertising media and how to incorporate the various

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non-advertising IMC components into the mix. Again, goals should be based upon
awareness and attitudinal. It is good to have them think in terms of AIDA and to
consider “Create a message by identifying brand features, benefits, and visuals. Create
images for visual media and facts into written media. Use a common tag line to tie the
messages together.”

How to measure the effectiveness of the ads, whether goals were achieved: Promo2

DAR, before and after exposure measures.

How to apportion advertising budget across media for true IMC: Promo3

Remind students to think in terms of product characteristics (product complexity, stage

of lifecycle, etc). Also encourage students to think in terms of alternative forms.
Students may rely on figure 11.6(.) Have students develop a schedule similar to figure
11.7(.)

SUGGESTED ANSWERS TO MINI-CASE: BANK AND HOTEL

In the following figure, borrowed in part from Figure 1 in Ch.10, we see that the bank
and hotel had business issues that advertising could address, namely awareness and consumer
attitudes, respectively. If we make assumptions and simple calculations that a brand’s market
share (%) is a function of those indicators (awareness, attitudes, trial, repeat), we could set other
goals for the advertising ROI.
For example, say we have a simple model:
%marketshare = %awareness x %attitude x %trial x %repeat
For the bank, we have 0.25 x 0.80 x 1.00 x 0.75 = 0.15. The bank struggled with awareness,
which should be easily rectified by spending more money on advertising, e.g., by buying time in
a medium that delivers more GRPs.

1. How much would we have to increase awareness to achieve some market share goal?

Assume the bank wishes to achieve a 33.333% increase in its market share (it would like to
have its market share increase from 15to 20%). Holding all else constant (same level of
attitude, trial, and repeat) the bank would need to increase awareness from 25% to 33.3%.
Does a 33.3% (8.33/25) increase seem feasible (within a specific time frame)?

For the hotel, it would have to increase attitude from 37.5% to approximately 47% in order
to increase its share from 20% to 25%. Does a 25.3% (9.5/37.5) increase seem feasible
(within a specific time frame)?

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2. What else would you like to know for a more thorough assessment?

Some key issues: reach and frequency of various outlets. Costs associated with various
outlets. Relationship between reach/frequency and awareness (number of exposures needed
for a given level of increase). Relationship between AATR components (assuming others will
remain fixed is limiting).

Bank 25% 80.0% 100.0% 75.0%

Hotel 80% 37.5% 83.3% 80.0%

Awareness Attitude Trial Repeat Time

VIDEO OVERVIEW & DISCUSSION QUESTIONS

Hal's Harley-Davidson Store (7:59)

Integrated marketing communications is about communicating a consistent and complementary

message when a firm uses multiple methods of communication. Personal selling is a
communication method that involves face-to-face interaction. Hal’s Harley attempts to
differentiate itself from other dealers through building strong relationships with its customers. It
relies heavily on personal selling and customer service to build these relationships. Hal’s has a
100% greet policy which ensures that contact is made with every customer that walks in its door.
Hal’s employees have been trained to listen to customers. Their focus is not on a one-time sale.
It is on ensuring that the customer is satisfied with their purchase over the long-term.

Discussion Questions:
1. With the rise of the Internet, customers can easily find information regarding Harley-
Davidson motorcycles. Doesn’t this contradict Hal’s emphasis on personal selling? Why
or why not?

2. Write copy for a radio advertisement for Hal’s Harley. Discuss how the concept of
integrated marketing communications impacted your message.

3. What actions does/could Hal’s Harley take to further build the relationship between itself
and the customer after a purchase?

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