MN227 Integrated Marketing Communications - Lecture 5

Integrated Marketing Communication

  • Lecture Details

    • Title: Integrated Marketing Communication

    • Lecture: 5B

    • Instructor: Dr. Max Yu

    • Institution: Maynooth University, National University of Ireland

Key Stakeholders in Marketing Communications Industry

  • Types of Stakeholders:

    • Media

    • Clients

    • Target Audience

    • Agencies

    • Production and Support Companies

In-House Marketing

  • Examples of Companies:

    • Specsavers

    • JAGUAR

    • P&G (Procter & Gamble)

    • Anheuser-Busch

    • Unilever

Alternatives to In-House Marketing

  • Options for Marketing Services:

    • Freelancers

    • Consultants

    • External Agencies

Online Resources for Agencies

  • platforms to find agencies:

    • Sortlist: Connects clients with potential agencies

    • Magneto IT Solutions (UK)

    • Various agencies offering different scales of service ranging from €1,000 to €10,000 per project

Pros and Cons of Outsourcing Marketing

  • Benefits:

    • Overall cost and benefit considerations

    • Access to expertise

    • Objective perspectives

    • Enhanced interactions with other departments

Types of Agencies in Marketing

  • Agency Categories:

    • Full-service or Integrated Agencies: Offer a wide range of services including strategic planning, research, and media buying. E.g., J. Walter Thompson, Leo Burnett.

    • Creative Agencies: Specialize in creative services such as copywriting and developing content.

    • Media Agencies: Focus on media strategies, consulting on planning and buying media space.

    • Digital Agencies: Offer services like digital media planning, SEO, and online campaigns.

    • Search Agencies: Specialize in driving web traffic through search advertising and SEO.

    • Social Media Agencies: Provide community management, content development, and crisis management.

    • Direct Marketing Agencies: Focus on offline and online direct response media, including telemarketing.

    • Branded Content Agencies: Specialize in creating digital content primarily for online platforms.

Advertising Budgeting

  • Key Brands and Their Budgets (2017):

    • Sky UK: £197.1 million

    • Procter & Gamble: £196.8 million

    • BT: £144.1 million

    • Unilever UK: £116.8 million

    • McDonald's: £96.2 million

    • Tesco: £89.5 million

    • Reckitt Benckiser: £88.2 million

    • Virgin Media: £72.1 million

    • Lidl UK: £71.1 million

    • Samsung UK: £66.6 million

Benefits of Budgeting

  • Budgeting Advantages:

    • Provides clarity on costs vs. benefits

    • Assures objectives are achievable

    • Facilitates cross-department coordination

    • Supports review and improvement of marketing strategies

Budgeting Techniques

  • Various Approaches:

    • Marginal Analysis: Assessing additional sales generated from extra spending.

    • Arbitrary Method: Decisions based solely on leadership’s discretion, often leading to neglect of customer needs.

    • Inertia Method: Continuing previous budget without assessing current environment or needs.

    • Media Multiplier: Adjusting budget based on relative media cost fluctuations.

    • Percentage of Sales: Allocating budget based on a percentage of past sales, which may not consider future demands.

    • Affordable Method: Setting budget based on what remains after covering other costs, lacking in analytical depth.

Additional Budgeting Techniques

  • Objective and Task: Budget based on resources needed to achieve specific goals.

  • Competitive Parity: Matching competitors’ ad spending without considering qualitative differences.

  • Advertising-to-Sales Ratio: Evaluating own ad spend versus industry averages.

  • Share of Voice: Comparing individual ad spends against total competitor spending.

Corporate Cultures and Advertising Budgets

  • Combination of Heuristics and Algorithmic Tools: Examining how U.S. advertisers set budgets, and how culture and organizational experience influence them.

Digital Marketing Advantages

  • Key Benefits:

    • Relatively low cost

    • Attributable outcomes

    • Data-driven strategies

    • Highly targetable

Algorithm-Based Advertising

  • Challenges of Algorithms: Evidence that algorithms may unintentionally perpetuate biases similar to human discrimination.

    • Historical examples include Amazon's canceled hiring tool and biased credit offers by Apple.

    • Studies on racial discrimination in online ads and unintended gender biases within online advertising

Gender Disparities in Ad Engagement

  • Observation on Click Rates: Studies show that women are more likely to click on ads and make purchases across various products.

    • Displays advertising to women command higher bids compared to men in ad platforms like Facebook.

Conclusion

  • Overall Implications: Understanding the implications of advertising strategies helps in improving decision-making, budgeting, and optimizing ad targeting.

Thank You

  • Questions?

  • Contact: Maynooth University