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