Advertising Midterm Reviewer - Topics 1-6 PDF

TOPIC 1: INTRODUCTION TO IMC AND ADVERTISING CUSTOMERS = SALES MARKETING - the process of planning and executing COMPETITORS = MARKET SHARE the conception, pricing, promotion, and distribution of COMPANY = PROFIT ideas, goods, and services to create exchanges...

TOPIC 1: INTRODUCTION TO IMC AND ADVERTISING CUSTOMERS = SALES MARKETING - the process of planning and executing COMPETITORS = MARKET SHARE the conception, pricing, promotion, and distribution of COMPANY = PROFIT ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. THE PROMOTIONAL MIX: THE TOOLS FOR IMC Promotion - the coordination of all seller-initiated efforts to VALUE = RELATIONSHIPS set up channels of information and persuasion in order to sell goods and services or promote an idea. 4 Ps >>>>>>>> 4 Cs Product>>>>> Consumers Needs While implicit communication occurs through the various Price>>>>>>> Cost to Satisfy elements of the marketing mix, most of an organization’s Place>>>>>>>Convenience communications with the marketplace take place as part of a Promotion>>> Communication carefully planned and controlled promotional program. The basic tools used to accomplish an organization’s Marketing is the activity, set of institutions, and processes communication objectives are often referred to as the for creating, communicating, delivering and exchanging promotional mix. offerings that have value for customers, clients, partners, and society at large. Advertising Involves a variety of activities, including Any paid form of nonpersonal communication about an database management, direct selling, organization, product, service, or idea by an identified telemarketing, and direct-response sponsor. The nature and purpose of advertising differ from advertising through direct mail, online, and one industry to another and/or across situations various broadcast and print media. Paid form of nonpersonal communication - reflects the fact that the space or time for an Direct-Response advertising advertising message generally must be bought. A product is promoted through an ad that encourages the ○ Involves mass media (TV, radio, magazines, consumer to purchase newspapers) that can transmit a message to directly from the manufacturer. large groups of individuals, often at the same time. CLASSIFICATIONS OF ADVERTISING ○ There is generally no opportunity for immediate feedback from the message recipient. ADVERTISING TO CONSUMER MARKETS 1. National Advertising – Above the Line/ ATL Direct Marketing 2. Retail/Local Advertising – Below The Line / BTL Organizations communicate directly with target 3. Primary- versus Selective-Demand Advertising customers to generate a response and/or a transaction. ADVERTISING TO BUSINESS AND PROFESSIONAL Has not been considered an element of the MARKETS promotional mix but since it has become such an 1. Business-to-Business Advertising integral part of the IMC program of many 2. Professional Advertising organizations and often involves separate 3. Trade Advertising objectives, budgets, and strategies it is now a component. Digital/Internet Marketing Interactive media allow for a two-way flow of Trade-oriented sales promotion - is targeted toward communication whereby users can participate in and marketing intermediaries such as wholesalers, distributors, modify the form and content of the information they and retailers. Promotional and merchandising allowances, receive in real time. price deals, sales contests, and trade shows are some of the Social media used to create, share, and exchange promotional tools used to encourage the trade to stock and content such as information, insights, experiences, promote a company’s products. perspectives, and even media themselves. Mobile marketing which is promotional activity Publicity/Public Relations designed for delivery to cell phones, smartphones, tablets, Publicity - refers to nonpersonal communications regarding and other handheld devices including apps, messaging, an organization, product, service, or idea not directly paid for commerce, and customer relationship management. or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an Sales Promotion - those marketing activities that provide organization and/or its products and services. extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate Public relations - is defined as “a strategic communication immediate sales. Sales promotion is generally broken into process that builds mutually beneficial relationships between two major categories: consumer oriented and organizations and their publics.” Public relations generally trade-oriented activities. has a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company Consumer-oriented sales promotion - is targeted to the among its various publics. Thus, it involves managing ultimate user of a product or service and includes relationships with a number of important audiences, couponing, sampling, premiums, rebates, contests, including investors, employees, suppliers, communities, and sweepstakes, and various point-of-purchase materials. governments (federal, state, and local) as well as consumers. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short-term Personal Selling - form of person-to-person communication sales. in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. INTEGRATED MARKETING COMMUNICATIONS or type of associations that come to mind when The Evolution of IMC- 1980s was characterized by the consumers think about a brand. rapid development of areas such as sales promotion, direct marketing, and public relations, which began Brand equity – is the value of your brand for your challenging advertising’s role as the dominant form of company. It's based on the idea that a recognized brand marketing communication. that's firmly established and reputable is more successful than a generic equivalent. It's also based on customer Integrated marketing communications (IMC) – involves perception: customers will tend to buy a product they coordinating the various promotional elements and other recognize and trust. marketing activities that communicate with a firm’s customers. IMC INVOLVES AUDIENCE CONTACTS Many companies are taking an audience contact or touch American Association of Advertising Agencies point perspective in developing their IMC programs (the “4As”) - a concept of marketing whereby they consider all of the potential ways of communications planning that recognizes the reaching their target audience and presenting the added value of a comprehensive plan that company or brand in a favorable manner. evaluates the strategic roles of a variety of A touch point refers to each and every opportunity the communication disciplines—for example, general customer has to see or hear about the company and/or its advertising, direct response, sales promotion, and brands or have an encounter or experience with it. public relations—and combines these disciplines to provide clarity, consistency, and maximum Company-created touch points- are planned marketing communications impact. communication messages created by the company such Don Schultz - is a strategic business process used as advertisements, websites and social media sites, to plan, develop, execute and evaluate news/press releases, packaging, brochures and collateral coordinated, measurable, persuasive brand material, sale promotions, and point-of-purchase displays communications programs over time with along with other types of in-store décor. consumers, customers, prospects, employees, associates and other targeted relevant external Intrinsic touch points- are interactions that occur with and internal audiences. The goal is to generate a company or brand during the process of buying or using both short-term financial returns and build the product or service such as discussions with retail sales long-term brand and shareholder value. personnel or customer service representatives. Reasons for the Growing Importance of IMC Unexpected touch points- are unanticipated references Reasons why marketers are adopting the IMC approach or information about a company or brand that a customer Marketers understand the value of strategically or prospect receives that is beyond the control of the integrating the various communications functions Organization. rather than having them operate autonomously. Companies can avoid duplication, take advantage of Customer-initiated touch points- are interactions that synergy among promotional tools, and develop more occur whenever a customer or prospect contacts a efficient and effective marketing communication company. programs. One of the easiest ways for a company to maximize the return on its investment in marketing and promotion. The Role of IMC in Branding One of the major reasons for the growing importance of integrated marketing communications over the past decade is that it plays a major role in the process of developing and sustaining brand identity and equity. Brand identity - is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image Paid, Owned, and Earned Media media channels such as Facebook, Twitter, Paid media- refers to channels a marketer pays to Instagram, and YouTube. leverage and includes traditional advertising media Earned media- is exposure for a company or brand such as television, radio, print, outdoor, and direct that it did not have to pay for and is generated by outside mail as well as various forms of digital advertising entities such as the media or the general public. such as paid search and online display and video ads. Owned media- refers to channels of marketing communication that a company controls, such as its websites, blogs, and mobile apps as well as social THE IMC PLANNING PROCESS Integrated marketing communications management 1. A detailed situation analysis that consists of an internal involves the process of planning, executing, evaluating, marketing audit and review and an external analysis of the and controlling the use of the various promotional-mix market elements to effectively communicate with target competition and environmental factors. audiences. 2. Specific marketing objectives that provide direction, a time Integrated marketing communications plan provides frame for marketing activities, and a mechanism for the framework for developing, implementing, and measuring controlling the organization’s IMC program. performance. 3. A marketing strategy and program that include selection of Review of the Marketing Plan target market(s) and decisions and plans for the four elements of the Marketing plan- a written document that describes the marketing mix. overall marketing strategy and programs developed for 4. A program for implementing the marketing strategy, an organization, a particular product line, or a brand. including determining specific tasks to be performed and responsibilities. Marketing plans can take several forms but generally 5. A process for monitoring and evaluating performance and include five basic elements: providing feedback so that proper control can be maintained and any necessary changes can be made in the overall marketing strategy or tactics.  Promotional Program Situation Analysis Internal Analysis - assesses relevant areas involving Budget Determination the product/service offering and the firm itself. The After the communication objectives are determined, capabilities of the firm and its ability to develop and attention turns to the promotional budget. Two basic implement a successful IMC program, the organization questions are asked at of the marketing communications department, and the this point: successes and failures of past programs should be How much will the IMC program cost? reviewed. How will the money be allocated across different media, geographic markets, and time periods? External Analysis - focuses on factors such as characteristics of the firm’s customers, market Developing the Integrated Marketing Communications segments, positioning strategies, and competitors. An Program important part of the external analysis is a detailed Developing the IMC program is generally the most involved consideration of customers’ characteristics and buying and detailed step of the promotional planning process. At this patterns, their decision processes, and factors stage of the planning process, decisions have to be made influencing their purchase decisions. regarding the role and importance of each element and their coordination with one another. Analysis of the Communication Process Creative strategy- involves determining the basic appeal This stage of the promotional planning process examines and message the advertiser wishes to convey to the target how the company can effectively communicate with audience. consumers in its target markets. Media strategy - involves determining which Marketing objectives - refer to what is to be communication channels will be used to deliver the accomplished by the overall marketing program. They are advertising message to the target audience. often stated in terms of sales, market share, or profitability. Monitoring, Evaluation, and Control Communication objectives - refer to what the firm It is important to determine how well the IMC program is seeks to accomplish with its promotional program. meeting communication objectives and helping the firm accomplish its overall marketing goals and objectives. Review of the Marketing Plan Examine overall marketing plan and objectives Role of advertising and promotion Competitive analysis Assess environmental influences Analysis of Promotional Program Situation Internal Analysis External Analysis Analysis of Communication Process Analyze receiver’s response processes Analyze source, message, channel factors Establish communication goals and objectives Budget Determination Set tentative marketing communications budget Allocate tentative budget Develop Integrated Marketing Communications Program Advertising Direct Marketing Digital/Internet Marketing Sales Promotion Public relations/Publicity Personal Selling  Integrate and Implement Marketing Communications Integrate promotional-mix strategies Strategies Create and produce ads Purchase media time and space Design and implement direct-marketing programs Design and distribute sales promotion materials Design and implement public relations/publicity programs Design and implement digital/Internet marketing programs Monitor, Evaluate, and Control Integrated Marketing Evaluate promotional Communications Program Program results/effectiv eness Take measures to control and adjust promotional strategies TOPIC 2: IMC AND THE STP APPROACH MARKETING MANAGEMENT PROCESS OPPORTUNITY ANALYSIS A strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies. Marketing Research Market opportunities - are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. Competitive Analysis - the manager must carefully TARGET MARKETING analyze the competition to be faced in the marketplace Selecting a Target Market Competitive advantage - something special a firm does The outcome of the segmentation analysis will reveal the or has that gives it an edge over competitors market opportunities available. The next phase in the target Ways to achieve a competitive advantage include: marketing process involves two steps. The marketer identifies (1)having quality products that command a premium price the specific needs of groups of people (or segments), selects (2)providing superior customer service one or more of these segments as a target, and develops (3)having the lowest production costs and lower prices marketing programs directed to each. (4)dominating channels of distribution. 1. Determining How Many Segments to Enter MARKET SEGMENTATION Three market coverage alternatives are available: The Process of Segmenting a Market - The segmentation Undifferentiated marketing - involves ignoring process develops over time and is an integral part of the segment differences and offering just one product or service situation analysis. to the entire market. Bases for Segmentation Differentiated marketing - involves marketing in a Geographic Segmentation- In the geographic number of segments, developing separate marketing segmentation approach, markets are divided into strategies for each. different geographic units. These units may include Concentrated marketing - is used when the firm nations, states, counties, or even neighborhoods. selects one segment and attempts to capture a large share Demographic Segmentation- Dividing the market on of this market. the basis of demographic variables such as age, sex, family size, education, income, and social class. 2. Determining Which Segments Offer Potential Psychographic Segmentation- Dividing the market on The firm must examine the sales potential of the segment, the basis of personality, lifecycles, and/or lifestyles. the opportunities for growth, the competition, and its own Behavioristic Segmentation- Dividing consumers into ability to compete. Then it must decide whether it can market groups according to their usage, loyalties, or buying to this group. responses to a product. Benefit Segmentation- The grouping of consumers on the basis of attributes sought in a product. POSITIONING Market Positioning What is your USP? Approaches to Positioning Unique Selling Proposition (USP) is the marketing Position- has been used to indicate the brand’s or strategy of informing customers about how one's own product’s image in the marketplace brand or product is superior to its competitors. Positioning refers to the place that a brand occupies UVP (unique value proposition) is a statement that in the minds of the customers and how it is clearly tells your potential customers how they will distinguished from the products of the competitors. benefit from your offer. Positioning strategies generally focus on either the Toyota’s UVP consumer or the competition. Toyota's value propositions are quality and efficiency. Positioning has been defined as “the art and science Its cars may not be the most exciting, but they are safe of fitting the product or service to one or more choices - likely to last a long time, with minimal segments of the broad market in such a way as to set maintenance, while delivering good fuel economy. it meaningfully apart from competition. Subaru’s UVP CONSUMER - linking the product with the benefits the “Enjoyment and Peace of Mind” is SUBARU value consumer will derive or creating a favorable brand proposition. SUBARU has raised the curtain on the next image generation of SUBARU cars with a model that promises COMPETITION - positions the product by comparing to set a new standard for excellence. it and the benefit it offers versus the competition DEVELOPING A POSITIONING STRATEGY David Aaker and J. Gary Shansby discuss six positioning strategies: positioning by product attributes, price/quality, use, product class, users, and competitor. Aaker and Myers add one more approach, positioning by cultural symbols. Positioning by Product Attributes and Benefits A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Salient attributes- those that are important to consumers and are the basis for making a purchase decision). (Ease of Use). Positioning by Price/Quality Premium brands positioned at the high end of the market use this approach to positioning Positioning by Use or Application Another way to communicate a specific image or position for a brand is to associate it with a specific use or application. Positioning by Product Class Often the competition for a product comes from outside the product class. Positioning by Product User Positioning a product by associating it with a particular user or group of users. Positioning by Competitor This approach is similar to positioning by product class, although in this case the competition is within the same product category.  Positioning by Cultural Symbols When it is associated with a meaningful symbol, the brand is easily identifiable and differentiated from others Repositioning- Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. DECIDING ON THE MARKETING MIX STRATEGIES Relating Price to Advertising and Promotion- Factors such DEVELOPING THE MARKETING PLANNING PROGRAM as product quality, competition, and advertising all interact in determining what price a firm can and should charge. Product Decisions- A product is more than just a physical COST, DEMAND FACTORS, COMPETITION, PERCEIVED object; it is a bundle of benefits or values that satisfies the VALUE needs of consumers. Product symbolism refers to what a product or brand Distribution Channel Decisions- Marketing channels, the means to consumers and what they experience in place element of the marketing mix, are “sets of purchasing and using it. interdependent organizations involved in the process of making a product or service available for use or Branding- Branding is about building and maintaining a consumption. favorable identity and image of the company and/or its RADIO, SOCIAL MEDIA, CATALOG, TV, PHYSICAL products or services in the mind of the consumer. LOCATION, WEBSITE, EMAIL, DIRECT MAIL, PAID The goal of branding is to: SEARCH. (1) build and maintain brand awareness and interest; (2) develop and enhance attitudes toward the company, Developing Promotional Strategies: Push or Pull? product, or service; and Promotional push strategy - programs designed to (3) build and foster relationships between the consumer persuade the trade to stock, merchandise, and promote and the brand. a manufacturer’s products. The goal of this strategy is to push the product through the Brand identity- consists of the combination of the name, channels of distribution by aggressively selling and logo, symbols, design, packaging, and image of promoting the item to the resellers, or trade. associations held by consumers. Brand equity- an intangible asset of added value or Promotional pull strategy - spending money on goodwill that results from the favorable image, advertising and sales promotion efforts directed toward impressions of differentiation, and/or the strength of the ultimate consumer. consumer attachment to a company name, brand name, The goal of a pull strategy is to create demand among or trademark. consumers and encourage them to request the product from the retailer. Packaging- The package provided functional benefits such as economy, protection, and storage. THE ROLE OF ADVERTISING AND PROMOTION The development and implementation of an IMC program is Price Decisions- The price variable refers to what the based on a strong foundation that includes market analysis, consumer must give up to purchase a product or service. target marketing and positioning, and coordination of the various marketing-mix elements. TOPIC 4: PERSPECTIVES IN CONSUMER BEHAVIOR AN OVERVIEW OF CONSUMER BEHAVIOR Consumer behavior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires. PROBLEM RECOGNITION The first stage in the consumer decision-making process. Problem recognition is caused by a difference between the consumer’s ideal state and actual state. A discrepancy exists between what the consumer wants the situation to be like and what the situation is really like. (Note that problem does not always imply a negative state. A goal exists for the consumer, and this goal may be the attainment of a more positive situation.) MOTIVATION Examining Consumer Motivations Motives—factors that compel a consumer to take a particular action. Hierarchy of Needs Maslow’s Hierarchy of Needs- theory postulates five basic levels of human needs, arranged in a hierarchy based on their Importance. (1) physiological—the basic level of primary needs for things required to sustain life, such as food, shelter, clothing, and sex; (2) safety—the need for security and safety from physical harm; (3) social/love and belonging— the desire to have satisfying relationships with others and feel a sense of love, affection, belonging, and acceptance; (4) esteem—the need to feel a sense of accomplishment and gain recognition, status, and respect from others; and (5) self-actualization—the need for self-fulfillment and a desire to realize one’s own potential. Motivation Research in Marketing In-depth interviews Face-to-face situations in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions. Projective techniques Efforts designed to gain insights into consumers’ values, motives, attitudes, or needs that are difficult to express or identify by having them project these internal states upon some external object. Association tests A technique in which an individual is asked to respond with the first thing that comes to mind when he or she is presented with a stimulus; the stimulus may be a word, picture, ad, and so on. Focus groups A small number of people with similar backgrounds and/or interests who are brought together to discuss a particular product, idea, or issue. Information Search Interpreting the Information Internal search- attempt to scan information stored in This stage of the perceptual process is very individualized memory to recall past experiences and/or knowledge and is influenced by internal psychological factors regarding various purchase alternatives. Selective Perception Process External search - include: Internet sources- such as organic and sponsored information available through companies’ websites, consumer postings, and organizations like Angie’s List, Yelp, and so on. Personal sources- such as friends, relatives, or co-workers. Selective exposure-occurs as consumers choose Marketer-controlled (commercial) sources- such as whether or not to make themselves available to information from advertising, salespeople, or information. For example, a viewer of a television show point-of-purchase displays and packaging. may change channels or leave the room during Public sources- including articles in magazines or commercial breaks. newspapers and reports on TV and so on. Selective attention- occurs when the consumer Personal experience- such as actually handling, chooses to focus attention on certain stimuli while examining, or testing the product. excluding others. One study of selective attention estimated that the typical consumer is exposed to Perception nearly 1,500 ads per day yet perceives only 76 of these the process by which an individual receives, selects, messages. organizes, and interprets information to create a Selective comprehension-interpreting information on meaningful picture of the world. the basis of their own attitudes, beliefs, motives, and experiences. For example, an ad that disparages a Marketers are particularly interested in: consumer’s favorite brand may be seen as biased or 1) how consumers sense external information, untruthful, and its claims may not be accepted. 2) how they select and attend to various sources of Selective retention- which means consumers do not information, and remember all the information they see, hear, or read 3) how this information is interpreted and given meaning even after attending to and comprehending it. Many advertisers use telephone numbers that spell out the Sensation company name and are easy to remember (for Sensation is the immediate, direct response of the senses example, #8-7000 Jollibee Delivery) (taste, smell, sight, touch, and hearing) to a stimulus such as an ad, package, brand name, or point-of-purchase *Mnemonics such as symbols, rhymes, associations, and display. images that assist in the learning and memory process are helpful. Selecting Information Other determinants of whether marketing stimuli will be attended to and how they will be interpreted include internal psychological factors such as the consumer’s personality, needs, motives, expectations, and experiences.  Alternative Evaluation Adding a new attribute to the attitude formation The consumer compares the various brands or products process (the product is environmentally friendly). and services he or she has identified as being capable of Changing perceptions of belief ratings for a competing solving the consumption problem and satisfying the needs brand (GM shows its cars can compete with anyone’s). or motives that initiated the decision process. Integration Processes and Decision Rules- Integration The Evoked Set - The evoked set is generally only a processes are the way product knowledge, meanings, and subset of all the brands of which the consumer is aware. beliefs are combined to evaluate two or more alternatives. Marketers use advertising to create top-of-mind awareness among consumers so that their brands are Heuristics – are simplified decision rules. For familiar part of the evoked set of their target audiences. products that are purchased frequently, consumers may Popular brands with large advertising budgets use use price-based heuristics (buy the least expensive reminder advertising to maintain high awareness levels brand) or promotion-based heuristics (choose the brand and increase the likelihood they will be considered by for which I can get a price reduction through a coupon, consumers in the market for the product. rebate, or special deal). Affect referral decision rule - consumers make a Evaluative Criteria and Consequences selection on the basis of an overall impression or Evaluative criteria are the dimensions or attributes of summary evaluation of the various alternatives under a product or service that are used to compare different consideration. Market leaders, whose products enjoy alternatives. For example, in buying an automobile, strong overall brand images, often use ads that consumers use objective attributes such as price, promote the brand by appealing to affect. warranty, and fuel economy as well as subjective factors such as image, styling, and performance Purchase Decision - As an outcome of the alternative Functional consequences are concrete outcomes of evaluation stage, the consumer may develop a purchase product or service usage that are tangible and directly intention or predisposition to buy a certain brand. experienced by consumers. The taste of a soft drink or Brand loyalty—a preference for a particular brand that a potato chip, the acceleration of a car, and the speed results in its repeated purchase; of course, brand loyalty of the Internet service provider are examples of is not limited to nondurables. functional consequences. Psychosocial consequences are abstract outcomes Postpurchase Evaluation that are more intangible, subjective, and personal, such After using the product or service, the consumer compares as how a product makes you feel or how you think the level of performance with expectations and is either others will view you for purchasing or using it. satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations Two subprocesses are very important during the are either met or exceeded; alternative evaluation stage: Dissatisfaction results when performance is below (1) the process by which consumer attitudes are created, expectations. reinforced, and changed; and Cognitive dissonance – a feeling of psychological (2) the decision rules or integration strategies consumers tension or post purchase doubt that a consumer use to compare brands and make purchase decisions. experiences after making a difficult purchase choice. Dissonance is more likely to occur in important Attitude Change Strategies decisions where the consumer must choose among The multiattribute model provides insight into several close alternatives (especially if the unchosen alternative ways marketers can influence consumer attitudes, has unique or desirable features that the selected including: alternative does not have). Increasing or changing the strength or belief rating of a brand on an important attribute (Colgate Optic White toothpaste has the best whitening power). Changing consumers’ perceptions of the importance or value of an attribute (Michelin tires provide higher gas mileage and safety). THE CONSUMER LEARNING PROCESS Learning occurs most rapidly under a continuous Behavioral Learning Theory reinforcement schedule, in which every response is rewarded—but the behavior is likely to cease when the Behavioral learning theories emphasize the role of reinforcement stops. Marketers must provide continuous external, environmental stimuli in causing behavior; they reinforcement to consumers or risk their switching to brands minimize the significance of internal psychological that do. processes. Learning occurs more slowly but lasts longer when a Behavioral learning theories are based on the partial or intermittent reinforcement schedule is used and stimulus–response orientation (S–R), the premise that only some of the individual’s responses are rewarded. learning occurs as the result of responses to external Promotional programs have partial reinforcement schedules. stimuli in the environment. Classical Conditioning Classical conditioning assumes that learning is an associative process with an already existing relationship between a stimulus and a response. Applying Classical Conditioning Learning through classical conditioning plays an important role in marketing. Buyers can be conditioned to form favorable impressions and images of various brands through the associative process. Advertisers strive to associate their products and services with perceptions, images, and emotions known to evoke positive reactions from consumers. Many products are promoted through image advertising, in which the brand is shown with an unconditioned stimulus that elicits pleasant feelings. When the brand is presented simultaneously with this unconditioned stimulus, the brand itself becomes a conditioned stimulus that elicits the same favorable response.  Cognitive Learning Theory Cognitive processes such as perception, formation of beliefs about brands, attitude development and change, and integration are important to understanding the decision-making process for many types of purchases. ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR Culture- The broadest and most abstract of the external factors that influence consumer behavior is culture, or the complexity of learned meanings, values, norms, and customs shared by members of a society. Cultural norms and values offer direction and guidance to members of a society in all aspects of their lives, including their consumption behavior. Subcultures Within a given culture are generally found smaller groups or segments whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. These subcultures may be based on age, geographic, religious, racial, and/or ethnic differences. Social Class- Social class refers to relatively homogeneous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. REFERENCE GROUPS A reference group is “a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and Situational Determinants actions.” Three types of situational determinants may have an effect: the specific usage situation, the purchase situation, and the FAMILY DECISION MAKING: AN EXAMPLE OF GROUP communications situation. INFLUENCES Usage refers to the circumstance in which the product Family members may serve as referents to each other, or will be used. For example, purchases made for private they may actually be involved in the purchase decision consumption may be thought of differently from those process - acting as an individual buying unit. that will be obvious to the public. The purchase situation more directly involves the The initiator. The person responsible for initiating the environment operating at the time of the purchase. purchase decision process-for example, the mother Time constraints, store environments, and other factors who determines she needs a new car. may all have an impact. The information provider. The individual responsible The communications situation is the condition in which for gathering information to be used in making the an advertising exposure occurs (in a car listening to the decision-for example, the teenage car buff who knows radin, with friends, etc.) For example, a consumer may where to find product information in specific pay more attention to a commercial that is heard alone magazines or collects it from dealers. at home than to one heard in the presence of friends, at The influencer. The person who exerts influence as to work, or anywhere distractions may be present. what critena will be used in the selection process. All members of the family may be involved. The mother ALTERNATIVE APPROACHES TO CONSUMER BEHAVIOR may have her criteria, whereas others may each have New Methodologies their own input. They often employ qualitative methodologies such as The decision maker(s). The person (or persons) who individual interviews, participant observation studies, actually makes (make) the decision. In our example, it and/or ethnographies. These methods help capture the may be the mother alone or in combination with social, cultural, and environmental influences that may another family member. affect consumer behavior, and may be even more The purchasing agent. The individual who performs effective in helping us understand than are traditional the physical act of making the purchase. In the case and/or online survey methods. of a car, a husband and wife may decide to choose it New Insights together and sign the purchase agreement. These alternative perspectives and methodologies The consumer. The actual user of the product. In the provide additional insights and expand our knowledge case of a family cat, all family members are of consumers. For example, the cultural significance of consumers. For a private car, only the mother might advertising messages in shaping cultures and be the consumer. triggering communities is now better understood. Likewise, marketers now have a better understanding of how advertising campaigns become popular and help shape our culture. TOPIC 5: THE COMMUNICATIONS PROCESS Message The encoding process leads to development of a THE NATURE OF COMMUNICATION message that contains the information or meaning the Communication has been variously defined as the source hopes to convey. The message may be verbal or passing of information, the exchange of ideas, or the nonverbal, oral or written, or symbolic. process of establishing a commonness or oneness of Content - Structure - and design thought between a sender and a receiver. Channel BASIC MODEL OF COMMUNICATION The channel is the method by which the communication travels from the source or sender to the receiver. Channels of communication are of two types: Nonpersonal channels Personal channels Viral Marketing - refers to the act of propagating marketing-relevant messages through the help and cooperation of individual consumers MOTIVATIONS FOR SOCIAL SHARING OF VIDEOS Source Encoding The sender, or source, of a communication is the person or organization that has information to share with another person or group of people. The communication process begins when the source selects words, symbols, pictures, and the like to represent the message that will be delivered to the receiver(s). This process, known as encoding, Anne Curtis is a source in the ad for Century Tuna. Receiver/Decoding The receiver is the person(s) with whom the sender shares thoughts or information. Decoding is the process of transforming the sender’s message back into thought. Field of experience - refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation.  Noise THE RESPONSE PROCESS Unplanned distortion or interference throughout the communication process Traditional Response Hierarchy Models Errors or problems that occur in the encoding of the The AIDA model was developed to represent the stages message, distortion in a radio or television signal, and a salesperson must take a customer through in the distractions at the point of reception are examples of personal-selling process. This model depicts the buyer noise. as passing successively through attention, interest, desire, and action. Response/Feedback The receiver’s set of reactions after seeing, hearing, or MODEL OF THE RESPONSE PROCESS reading the message is known as a response. Marketers are very interested in feedback, that part of the receiver’s response that is communicated back to the sender. FACTORS TO CONSIDER TO ENSURE THE MESSAGE RESONATES EFFECTIVELY TO OUR AUDIENCE 1. Audience Segmentation 2. Cultural Sensitivity 3. Emotional Triggers 4. Relevance 5. Diversity and Inclusion 6. Privacy and Data Sensitivity 7. Tone and Messaging 8. Trendy Messaging Pitfalls 9. Consistency with Brand Values 10. Overloading with Information THE HIERARCHY OF EFFECTS MODEL - shows the ANALYZING THE RECEIVER process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase.  THE INNOVATION ADOPTION MODEL evolved from METHODS OF OBTAINING FEEDBACK IN THE work on the diffusion of innovations. This model RESPONSE HIERARCHY represents the stages a consumer passes through in adopting a new product or service. THE INFORMATION PROCESSING MODEL of advertising effects, developed by social psychologist Evaluating Traditional Response Hierarchy Models William McGuire, assumes the receiver in a persuasive The cognitive stage represents what the receiver communication situation like advertising is an knows or perceives about the particular product or information processor or problem solver. brand. The affective stage refers to the receiver’s feelings or affect level (like or dislike) for the particular brand. The conative or behavioral stage refers to the consumer’s action toward the brand: trial, purchase, adoption, or rejection. All four models assume a similar ordering of these three stages. Cognitive development precedes affective reactions, which precede behavior. Alternative Response Hierarchies IMPLICATIONS OF THE TRADITIONAL HIERARCHY MODELS Alternative Response Hierarchies— The Three- Orders Model of Information Processing.  The Standard Learning Hierarchy Standard learning model- which consists of a learn→feel→do sequence. Information and knowledge acquired or learned about the various brands are the basis for developing affect, or feelings, that guide what the consumer will do (e.g., actual trial or purchase). The Dissonance/Attribution Hierarchy This dissonance/attribution model- or do → feel → learn, occurs in situations where consumers must choose between two alternatives that are similar in quality but are complex and may have hidden or unknown attributes. The Low-Involvement Hierarchy Low-involvement hierarchy- in which the receiver is viewed as passing from cognition to behavior to attitude change. This learn → do → feel sequence is thought to characterize situations of low consumer involvement in the purchase process. Implications of the Alternative Response Models 1. Standard Learning Model (Learn → Feel → Do) The Social Consumer Decision Journey Implication: This model is common for high-involvement Edelman notes that it is also important for marketers to products, where consumers go through a deliberate, focus not only on the portion of their budget allocated to information-driven process before making a purchase paid media—or what is sometimes referred to as “working decision. media spend”—but also consider the role of owned media For Marketers: that a brand controls (such as websites and Facebook fan Focus on Education pages) as well as earned media (customer-created content Long-Term Engagement on blogs, forums, and social media platforms). Targeted Campaigns 2. Dissonance/Attribution Model (Do → Feel → Learn) Implication: In situations of low product differentiation but high involvement, consumers act first, often due to external factors (urgency, availability). For Marketers: Post-Purchase Reinforcement Brand Loyalty Building Simplify Choices 3. Low-Involvement Model (Learn → Do → Feel) Implication: This model applies to everyday, low-cost products where consumers make quick decisions with minimal emotional investment upfront. For Marketers: Repetition and Visibility In-Store Promotions Mass Market Channels General Implications for Advertising: Tailored Messaging Post-Purchase Strategies Media Selection Customer Experience Management  TOPIC 3: ORGANIZING FOR ADVERTISING AND decisions regarding the advertising and promotional PROMOTION: THE ROLE OF AD AGENCIES AND OTHER program that will support it. MARKETING COMMUNICATION ORGANIZATIONS Advertising agency, an outside firm that specializes PARTICIPANTS IN THE INTEGRATED MARKETING in the creation, production, and/or placement of the COMMUNICATIONS PROCESS: AN OVERVIEW communications message and that may provide The advertisers, or clients, are the key participants in the other services to facilitate the marketing and process. They have the products, services, or causes to be promotions process. Many large advertisers retain marketed, and they provide the funds that pay for the IMC the services of a number of agencies, particularly program. The advertisers also assume major responsibility when they market a number of products. for developing the marketing plan and making the final PARTICIPANTS IN THE INTEGRATED MARKETING COMMUNICATIONS PROCESS Media organizations are another major participant in the advertising and promotions process. The primary function of most media is to provide information or entertainment to their subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm’s marketing communications messages. The media must have editorial or program content that attracts consumers so that advertisers and their agencies will want to buy time or space with them. The next group of participants are organizations that provide specialized marketing communication services. They include direct-marketing agencies, sales promotion agencies, digital/interactive agencies, and public relations firms. These organizations provide services in their areas of expertise. A direct-response agency develops and implements direct-marketing programs, while sales promotion agencies develop promotional programs such as contests and sweepstakes, premium offers, or sampling programs. Digital/interactive agencies are being retained to develop websites for the Internet and help marketers as they move deeper into the realm of interactive media. Public relations firms are used to generate and manage publicity for a company and its products and services as well as to focus on its relationships and communications with its relevant publics The final participants shown in the promotions process of Figure 3–1 are those that provide collateral services, the wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms. These individuals and companies perform specialized functions the other participants use in planning and executing advertising and other promotional functions. ORGANIZING FOR ADVERTISING AND PROMOTION IN THE FIRM: THE CLIENT’S ROLE The Advertising Department under a Centralized System The Centralized System The Decentralized System The advertising manager is responsible for all promotions In large corporations with multiple divisions and many activities except sales (in some companies this individual different products, it is very difficult to manage all the has the title of marketing communications manager). In advertising, promotional, and other functions through a the most common example of a centralized system, the centralized department. These types of companies advertising or marcom manager controls the entire generally have a decentralized system, with separate promotions operation, including budgeting, coordinating manufacturing, research and development, sales, and creation and production of ads, planning media schedules, marketing departments for various divisions, product lines, and monitoring and administering the sales promotions or businesses. programs for all the company’s products or services. Brand manager- who is responsible for the total Basic functions the manager and staff perform include management of the brand, including planning, budgeting, the following. sales, and profit performance. (The term product manager Administration and Execution- The manager must is also used to describe this position.) The brand manager, organize the advertising department and supervise and who may have one or more assistant brand managers, is control its activities. The manager also supervises the also responsible for the planning, implementation, and execution of the plan by subordinates and/or the control of the marketing program. advertising agency. This requires working with such departments as production, media, art, copy, Under this system, the responsibilities and functions digital/interactive, and sales promotion. If an outside associated with advertising and promotions are transferred agency is used, the advertising department is relieved of to the brand manager, who works closely with the outside much of the executional responsibility; however, it must advertising agency and other marketing communications review and approve the agency’s plans. specialists as they develop the promotional program. In a multiproduct or service firm, each brand may have its Coordination with Other Departments- The manager own ad agency and may compete against other brands must coordinate the advertising department’s activities within the company, not just against outside competitors. with those of other departments, particularly those involving other marketing functions. For example, the advertising department must communicate with marketing research and/or sales to determine which product features are important to customers and should be emphasized in the company’s communications. Research may also provide profiles of product users and nonusers for the media department before it selects broadcast or print media. The advertising department may also be responsible for preparing material the sales force can use when calling on customers, such as brochures, sales promotion tools, advertising materials, and point-of-purchase displays. Coordination with Outside Agencies and Services- Many companies have an advertising or marketing communications department but still use an advertising agency as well as other outside services such as digital agencies. Some companies may have an additional layer(s) of An in-house agency is an advertising agency that is set management above the brand managers to coordinate the up, owned, and operated by the advertiser. Some efforts of all the brand managers handling a related group of in-house agencies are little more than advertising products. This system—generally referred to as a category departments, but in other companies they are given a management system—includes category managers as well as separate identity and are responsible for the brand and advertising managers. The category manager expenditure of large sums of advertising dollars. An oversees management of the entire product category and in-house agency can also provide related work such as focuses on the strategic role of the various brands in order to production of collateral materials, digital media, build profits and market share. Each category manager will package design, and public relations at a lower cost have one or more brand managers reporting to him or her for than outside agencies. In-house agencies are also each specific brand as well as an advertising manager. preferred by some companies because they keep the marketing communications function more closely tied to top management. During the late 1980s and into the 90s, the advertising industry underwent major changes as large agencies Types of Ad Agencies merged with or acquired other agencies and support Full-Service Agencies- Many companies employ what organizations to form large advertising organizations, is known as a full-service agency, which offers its or superagencies. These superagencies were formed so clients a full range of marketing, communications, and that agencies could provide clients with integrated promotions services, including planning, creating, and marketing communications services worldwide. Some producing the advertising; performing research; and advertisers became disenchanted with the superagencies selecting media. A full-service agency may also offer and moved to smaller agencies that were flexible and nonadvertising services such as strategic market more responsive. planning; sales promotions, direct marketing, and digital/interactive capabilities; package design; and The Ad Agency’s Role public relations and publicity. The functions performed by advertising agencies might be The full-service agency is made up of departments that conducted by the clients themselves through one of the provide the activities needed to perform the various designs discussed earlier in this chapter, but most large advertising functions and serve the client. companies use outside firms. Account Services Account services, or account Reasons for Using an Agency- Probably the main reason management, is the link between the ad agency and its outside agencies are used is that they provide the client clients. Depending on the size of the client and its with the services of highly skilled individuals who are advertising budget, one or more account executives serve specialists in their chosen fields. as liaison. The account executive is responsible for understanding the advertiser’s marketing and promotions needs and interpreting them to agency personnel. He or she coordinates agency efforts in planning, creating, and producing ads. The account executive also presents agency recommendations and obtains client approval.  Creative Services- The creative services department is Marketing Services Over the past two decades, use of responsible for the creation and execution of marketing services has increased dramatically. One service advertisements. The individuals who conceive the ideas for gaining increased attention is research, as agencies realize the ads and write the headlines, subheads, and body copy that to communicate effectively with their clients’ customers, (the words constituting the message) are known as they must have a good understanding of the target audience. copywriters. They may also be involved in determining the The advertising planning process begins with a thorough basic appeal or theme of the ad campaign and often situation analysis, which is based on research and information prepare a rough initial visual layout of the print ad or about the target audience. television commercial. While copywriters are responsible for Most full-service agencies maintain a research department what the message says, the art department is responsible whose function is to gather, analyze, and interpret information for how the ad looks. For print ads, the art director and that will be useful in developing advertising for their clients. graphic designers prepare layouts, which are drawings that This can be done through primary research—where a study is show what the ad will look like and from which the final designed, executed, and interpreted by the research artwork will be produced. For TV commercials, the layout is department—or through the use of secondary (previously known as a storyboard, a sequence of frames or panels that published) sources of information. Sometimes the research depict the commercial in still form. Once the copy, layout, department acquires studies conducted by independent illustrations, and mechanical specifications have been syndicated research firms or consultants. The research staff completed and approved, the ad is turned over to the then interprets these reports and passes on the information to production department. A traffic department coordinates other agency personnel working on that account. The research all phases of production to see that the ads are completed department may also design and conduct research to pretest on time and that all deadlines for submitting the ads to the the effectiveness of advertising the agency is considering. media are met. The traffic department may be located in the creative services area of the agency, or be part of media In many large agencies, the marketing services department or account management, or be separate. may include account planners who are individuals that gather information that is relevant to the client’s product or Management and Finance Like any other business, an service and can be used in the development of the creative advertising agency must be managed and perform basic strategy as well as other aspects of the IMC campaign. operating and administrative functions such as accounting, finance, and human resources. It must also attempt to generate new business. Large agencies employ administrative, managerial, and clerical people to perform these functions.  Agency Organization and Structure Full-function A major development in the purchasing of advertising media advertising agencies must develop an organizational in recent years has been the rapid growth of programmatic structure that will meet their clients’ needs and serve buying which refers to wide range of technologies that are their own internal requirements. Most medium-size and automating the buying, placement, and optimization of large agencies are structured under either a advertising media. departmental or a group system. Under the Programmatic buying originated in the purchase of departmental system, each of the agency functions is digital advertising space where there are a myriad of set up as a separate department and is called on as options available to marketers and the purchase process needed to perform its specialty and serve all of the is automated and often based on real-time bidding. agency’s clients. Ad layout, writing, and production are However, programmatic buying is expanding beyond done by the creative department; marketing services is digital media as it is being used to purchase television responsible for any research or media selection and advertising time as well.31 Media buying services are purchases; and the account services department generally paid a fee or commission for their work. handles client contact. Some agencies prefer the departmental system because it gives employees the AGENCY COMPENSATION opportunity to develop expertise in servicing a variety Commissions from Media- The traditional method of of accounts. compensating agencies is through a commission system, where the agency receives a specified commission (usually 15 Many large agencies use the group system, in which percent) from the media on any advertising time or space it individuals from each department work together in groups to purchases for its client. Many advertisers have gone to a service particular accounts. Each group is headed by an negotiated commission system whereby the commissions account executive or supervisor and has one or more media average from 8 to 10 percent or are based on a sliding scale people, including media planners and buyers; a creative that becomes lower as the clients’ media expenditures team, which includes copywriters, art directors, artists, and increase. production personnel; and one or more account executives. Fee Arrangement- There are two basic types of fee The group may also include individuals from other arrangement systems. In the straight or fixed-fee method, departments such as marketing research, direct marketing, the agency charges a basic monthly fee for all of its services or sales promotion. and credits to the client any media commissions earned. Sometimes agencies are compensated through a Other Types of Agencies and Services fee–commission combination, in which the media Creative Boutiques- Creative boutiques are small ad commissions received by the agency are credited against the agencies that provide only creative services and have long fee. If the commissions are less than the agreed-on fee, the been an important part of the advertising industry. These client must make up the difference. If the agency does much specialized agencies have creative personnel such as writers work for the client in noncommissionable media, the fee may and artists on staff but do not have media, research, or be charged over and above the commissions received. account planning capabilities. Creative boutiques have Cost-Plus Agreement- Under a cost-plus system, the developed in response to some companies’ desires to use client agrees to pay the agency a fee based on the costs of only the creative services of an outside agency while its work plus some agreed-on profit margin (often a maintaining control of other marketing communication percentage of total costs). This system requires that the functions internally. Many creative boutiques have been agency keep detailed records of the costs it incurs in working formed by members of the creative departments of on the client’s account. Direct costs (personnel time and full-service agencies who leave the firm and take with them out-of-pocket expenses) plus an allocation for overhead and clients who want to retain their creative talents. a markup for profits determine the amount the agency bills the client Media Specialist Companies- Media specialist companies Incentive-Based Compensation- Many clients are are organizations that specialize in the buying of media, demanding more accountability from their agencies and particularly for television and digital advertising. The task of tying agency compensation to performance through some purchasing advertising media has grown more complex, type of incentive-based system. Recently a new variation of especially with the fragmentation of media audiences and this system has emerged in the form of value-based the growth of digital media. Media buying services have compensation whereby agencies are compensated above found a niche by specializing in the analysis and purchase of their basic costs, if they achieve or exceed results as advertising time and space. Agencies and clients often measured by agreed-upon metrics. develop their own media strategies and hire a media buying Percentage Charges- Another way to compensate service to execute them. However, some media buying an agency is by adding a markup of percentage charges to services do help advertisers plan their media strategies. various services the agency purchases from outside Because media buying services purchase such large amounts providers. These may include market research, artwork, of time and space, they receive large discounts and can save printing, photography, and other services or materials. the small agency or client money on media purchases. The financial audit focuses on how the agency conducts its Database development and management is becoming business. It is designed to verify costs and expenses, the one of the most important services provided by number of personnel hours charged to an account, and direct-response agencies. Many companies are using payments to media and outside suppliers. The qualitative database marketing to pinpoint new customers and build audit focuses on the agency’s efforts in planning, developing, relationships and loyalty among existing customers. and implementing the client’s advertising programs and A typical direct-response agency is divided into three considers the results achieved. main departments: account management, creative, and media. How Agencies Gain Clients Referrals- Many good agencies obtain new clients as a Sales Promotion Agencies result of referrals from existing clients, media Developing and managing sales promotion programs such as representatives, and even other agencies. These agencies contests, sweepstakes, refunds and rebates, premium and maintain good working relationships with their clients, the incentive offers, and sampling programs are very complex media, and outside parties that tasks. Most companies use a sales promotion agency to might provide business to them. develop and administer these programs. Some large ad agencies have created their own sales promotion department Solicitations- One of the more common ways to gain new or acquired a sales promotion firm. However, most sales business is through direct solicitation. In smaller agencies, promotion agencies are independent companies that the president may solicit new accounts. In most large specialize in providing the services needed to plan, develop, agencies, a new business development group seeks out and execute a variety of sales promotion programs. and establishes contact with new clients. Sales promotion agencies often work in conjunction with the client’s advertising and/or direct-response agencies to Presentations- A basic goal of the new business coordinate their efforts with the advertising and development group is to receive an invitation from a direct-marketing programs. Services provided by large sales company to make a presentation. This gives the agency promotion agencies include promotional planning, creative the opportunity to sell itself—to describe its experience, research, tie-in coordination, fulfillment, premium design and personnel, capabilities, and operating procedures, as well manufacturing, catalog production, and contest/sweepstakes as to demonstrate its previous work. management. Many sales promotion agencies are also developing direct/database marketing and telemarketing to Public Relations- Agencies also seek business through expand their integrated marketing services capabilities. publicity/public relations efforts. They often participate in civic and social groups and work with charitable Public Relations Firms organizations pro bono (at cost, without pay) to earn Many large companies use both an advertising agency and a respect in the community. PR firm. The public relations firm develops and implements programs to manage the organization’s publicity, image, and Image and Reputation- Perhaps the most effective way affairs with consumers and other relevant publics, including an agency can gain new business is through its reputation employees, suppliers, stockholders, government, labor groups, for doing excellent work for the clients it serves. Word citizen action groups, and the general public. travels fast through the advertising and marketing The PR firm analyzes the relationships between the client and industry regarding the agencies that are doing these various publics, determines how the client’s policies and outstanding creative work in advertising as well as in actions relate to and affect these publics, develops PR other areas of IMC. strategies and programs, implements these programs using various public relations tools, and evaluates their SPECIALIZED SERVICES effectiveness. Direct-Marketing Agencies The activities of a public relations firm include planning the One of the fastest-growing areas of IMC is direct PR strategy and program, generating publicity, conducting marketing, where companies communicate with lobbying and public affairs efforts, becoming involved in consumers through telemarketing, direct mail, television, community activities and events, preparing news releases and the Internet, and other forms of direct-response other communications, conducting research, promoting and advertising. managing special events, and managing crises. Direct-marketing agencies provide a variety of services, including database analytics and management, direct mail, research, media services, and creative and production capabilities. While direct mail was traditionally their primary weapon, many direct-response agencies are expanding their services to include such areas as infomercial production, digital marketing, analytics, and database management.  COLLATERAL SERVICES The final participants in the promotional process are those that provide various collateral services. They include Digital/Interactive Agencies marketing research companies, package design firms, With the rapid growth of the Internet and other forms of consultants, photographers, graphic design companies, talent interactive media, a new type of specialized marketing agencies, video production houses, and event marketing communications organization has evolved—the interactive services companies. One of the more widely used collateral agency. Many marketers are using digital/interactive service organizations is the marketing research firm. They agencies that specialize in the development and conduct qualitative research such as in-depth interviews and strategic use of various digital marketing tools such as focus groups, as well as quantitative studies such as market websites for the Internet, banner ads, search engine surveys. optimization, mobile marketing, and social media campaigns. They recognize that the development of INTEGRATED MARKETING COMMUNICATIONS SERVICES successful interactive marketing programs requires Many large agencies have broadened their IMC capabilities expertise in digital technology as well as areas such as by developing internal expertise or by acquiring specialists in creative website design, database marketing, digital various fields. We have also seen how many companies are media, and customer relationship management. handling more of their IMC programs in house, not only to save money but also because of the need to have more control over their digital marketing.