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Building an IMC Campaign

IMC Plan Pro Disk

Introduction

TheBuilding an IMC Campaign exercises in the Clow and Baack Advertising, Promotion,and Integrated Marketing Communications (2e) textbook are designed to help you apply thetheories and concepts presented in various chapters and to help you produce an IMC plan thatcan be placed in a portfolio. Each new chapter suggests specific tasks that build on materialsyou have learned in previous chapters. When the project is finished, you will have prepared acomplete IMC campaign. To simplify the tasks, it is recommended that you deal with threeoverall IMC objectives. The first IMC objective is targeted toward consumers, the secondshould be for the distribution channel, and the third should focus on other businesses.

While the textbook has an overview of Building an IMC Campaign, the Website and theaccompanying IMC Plan Pro CD-ROM are much richer and provide more details andinformation to assist you. A detailed outline is provided for you so you can see all of thesections of the IMC Plan at a glance. The IMC Plan Pro software also contains numeroussample IMC campaigns.

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Outline

In preparing the IMC campaign, it is recommended that you utilize the following outline. Asshown, you are asked to develop three IMC communication objectives based on apromotional analysis and the product's corporate and brand image strategy. From these three

communication objectives, you will integrate the various IMC components into a seamlesscommunication plan. Please keep in mind the outline is merely a guide and can be modifiedto fit your particular company or product.

1.0 Executive Summary

2.0 Promotion Opportunity Analysis

2.1 Communications Market Analysis2.1.1 Competitive Analysis

2.1.2 Opportunity Analysis2.1.3 Target Market Analysis2.1.4. Customer Analysis

2.2 Market Segmentation Strategy

3.0 Corporate Strategies

3.1 Corporate Image Strategy3.2 Brand Development Strategy3.3 Brand Positioning Strategy3.4 Distribution Strategy

3.5 Business-to-Business Strategy3.6 Public Relations Strategy3.7 Evaluation

4.0 Integrated Marketing Communications Management

4.1 IMC Objectives4.2 IMC Budget4.3 Agency Selection4.4 Internet Web site

5.0 Integrated Marketing Communication Objective One (Consumer)5.1 Budget5.2 Integrated Marketing Communication Methodologies

5.2.1 Advertising5.2.1.1 Advertising Goals and Budget5.2.1.2 Creative Brief

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5.2.1.3 Advertising Design5.2.2 Consumer Promotions

5.2.2.1 Budget Allocation5.2.2.2 Consumer Promotion Selection5.2.2.3 Sample Consumer Promotions

5.2.3 Personal Selling5.2.4 Sponsorship Programs5.2.5 Database Programs

5.2.5.1 Data Warehouse5.2.5.2 Direct Marketing5.2.5.3 Permission Marketing5.2.5.4 Frequent Shopper Program

5.3 Media Plan5.4 Evaluation

6.0 Integrated Marketing Communication Objective Two (Distribution Channel)

6.1 Budget6.2 Integrated Marketing Communication Methodologies

6.2.1 Advertising6.2.1.1 Advertising Goals and Budget6.2.1.2 Creative Brief6.2.1.3 Advertising Design

6.2.2 Trade Promotions6.2.2.1 Budget Allocation6.2.2.2 Trade Promotion Selection6.2.2.3 Package Design

6.2.3 Personal Selling6.2.4 Database Programs

6.2.4.1 Data Warehouse6.2.4.2 Direct Marketing


7.0 Integrated Marketing Communication Objective Three (Business-to-Business)

7.1 Budget7.2 Integrated Marketing Communication Methodologies

7.2.1 Advertising7.2.1.1 Advertising Goals and Budget7.2.1.2 Creative Brief7.2.1.3 Advertising Design

7.2.2 Consumer (Business-to-Business) Promotions7.2.2.1 Budget Allocation7.2.2.2 Consumer Promotion Selection

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7.2.2.3 Sample Consumer Promotions7.2.3 Personal Selling7.2.4 Sponsorship Programs7.2.5 Database Programs

7.2.5.1 Data Warehouse

7.2.5.2 Direct Marketing7.2.5.3 Permission Marketing7.2.5.4 Frequent Shopper Program


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Chapter 1

Pick Your Product

An effective Integrated Marketing Communications program involves applying the concepts

and techniques contained in the Clow and Baack textbook. The assignment for Chapter Oneis to pick a product to be used throughout the entire book. Your instructor may provide aproduct for you or you may be allowed to choose one of your own. Some possible productchoices include:

Individual size bottled water

New ink pen

Chopsticks

Baseball

Perfume or cologne

Purse

Errand running and reminder service

E-trade service for Nasdaq stocks

Chapter 1 IMC Plan Pro Exercise: Pick a product.


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Chapter 2

Developing a Brand Name and an Image Management Program

In this chapter, you should develop a corporate image and a brand strategy reflecting Sections

3.1 to 3.3 of the IMC Campaign outline. More specifically, a brand name and anaccompanying logo should be designed and chosen. Also, a corporate name, which may ormay not be the same as the brand name, should be selected.

In Section 3.1, the corporate image to be conveyed to the various publics is specified. Youshould also discuss how this would be accomplished. In Section 3.2, the brand name isidentified and a logo is developed following the principles presented in the text. You shouldalso develop a brand strategy. In Section 3.3, one of the positioning strategies discussed inthe textbook should be chosen along with a discussion of how that positioning strategy fitswith your target market analysis and market segmentation strategy chosen in Chapter 3. It isat this point that you should realize the importance of integrating the corporate strategy,

brand name, logo, and positioning strategy together with the analysis conducted in Chapter 3.

Chapter 2 IMC Plan Pro Exercise: Complete Sections 3.1, 3.2 and 3.3.


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Chapter 3

Inducing Consumers to Buy a Product

Developing a high quality IMC program requires an understanding of consumer buying

behavior. Based on the concepts presented in this chapter, you should begin working onsection 2.0 of the IMC Campaign. While this section will be completed with Chapter 5, it is agood idea to start working on it in conjunction with the materials from this chapter. Thecustomer analysis, section 2.1.4, is the most relevant section. You should think about theconsumer decision-making process and how it relates to your product. Analysis of anexternal information search is especially important here. The information yielded by thesearch will be used in developing a media plan in later chapters. Factors that affect thepurchase decision should be identified as well as current trends that may have an impact.Identifying these factors will help in developing the tactical portion of the IMC campaign.

When you complete this section of the IMC campaign, you should have a solid

understanding of how consumers make product-purchasing decisions along with the factorsthat might influence those decisions. It is important to realize that the more you know aboutyour customers, the more effective your IMC program will be.

Chapter 3 IMC Plan Pro Exercise: Begin working on Section2.0, especially Section 2.1.4.


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Chapter 4

Developing the Business-To-Business Component of an IMC Program

All of the products and services suggested in Chapter One have potential business buyers and

should be marketed through some type of distribution channel. In this chapter, you shouldconsider potential business-to-business customers as well as channel members who wouldpurchase the product. Wholesalers, distributors and retailers should be identified as well asothers in distribution channel. Section 3.4 of the IMC campaign outlines deals with thedistribution strategy. Section 3.5 examines the business-to-business marketing angle.Discussing the type of good or service being marketed as well as the type of customers whomay purchase the product is helpful in understanding and reaching these markets.

Think about the buying center concept and identify different individuals within a firm whoplay each role. For example, who would typically use the product within the firm? Whowould typically be the influencer? Also, examine the type of purchase situation from the

customers viewpoint. These include a straight re-buy, a modified re-buy, or new taskpurchase. Each type leads to a different design for a promotional or advertising campaign.

What type of vendor audit would you expect to see? Answer this question will help you toprepare a better IMC plan. If the product is sold to both consumers and other businesses, thenyou should examine the issue of dual-channel marketing.

Chapter 4 IMC Plan Pro Exercise: Complete Sections 3.4 and 3.5


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Chapter 5

Conducting a Promotions Opportunity Analysis for Your Product

This chapter is critical because it lays the foundation for the IMC campaign. You should

perform an opportunity analysis for your product, recording most of the material in Section2.0 of your IMC Plan. The following steps should help you in conducting this analysis.

Step one of the promotions opportunity analysis is to perform a communications marketanalysis. In this step, you should perform the following analyses:

1) Competitive analysis2) Opportunity analysis3) Target market analysis4) Customer analysis

The fifth part of the communications market analysis, the position analysis, should have been

completed in conjunction materials found in with Chapter 4 and should already be in yourIMC Plan.

In the communications market analysis you should identify competitors and thecommunication strategies those competitors are using. You should also examine the varioustarget markets for the product, which will be of value in identifying any new opportunitiesthat exist. Keep in mind that the communications market analysis is an integrative step whereeach component impacts the other components. Thus, when you are working on thecompetitive component of the communications analysis, it will impact your customeranalysis, your target analysis, and your opportunity analysis.

Step 2 in the promotion opportunity analysis is to establish the three communicationobjectives you wish to accomplish. The first communication objective deals with theconsumer market, the second with the channel of distribution, and the third with the business-to-business market. The communication objectives are to be placed in Section 4.1 of the IMCPlan. In later chapters, these communication objectives will be re-evaluated, but at this pointyou should establish the objectives you believe you want to accomplish, based on the resultsof the precious step, the communications market analysis.

Step 3 of the promotions opportunity analysis establishes a budget. We would suggest a $200million communications budget. The breakdown for this budget comes later. At this pointyou can identify which method will be used in developing the communications budget afterthe company is fully established. It is helpful in developing your budget to utilize the Internetto see if they can find the promotional budget of any of your competitors. This budgetinformation should be placed in Section 4.2 of the IMC Campaign.

Steps 4 and 5 of the promotional opportunity analysis deal with the communicationsobjectives and tactics. These will be written as you progress through the rest of the textbook.


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The final component of the IMC campaign studied in this chapter is the market segmentationstrategy. Based on their communications market analysis and especially their target marketanalysis, you should decide what segmentation strategy will be used and which targetmarket(s) you wish to pursue. This is section 2.2 of the IMC Campaign.

Chapter 5 IMC Plan Pro Exercise: Complete Sections 2.1, 2.2, 4.1 and 4.2.


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Chapter 6

Constructing an Advertising Program

A critical decision to be made in this chapter is the choice of an outside advertising agency.Begin by exploring whether or not an outside agency is desirable, of if the work can beperformed in-house. Your instructor may require you to use an outside agency so you cangain some experience in selecting an agency. If an outside agency is used, you should gothrough the steps outlined in the chapter. This material is to be placed in Section 4.3 of theIMC campaign.

The second part of the IMC Campaign to be completed in this Chapter is to discuss whatportion of the IMC budget will be used for each communications objective and what portionof that budget will be devoted to advertising. The total IMC Campaign budget of $200million should be divided among IMC Objective One, Two and Three with a rationale for

your decision. This information is then written in sections 5.1, 6.1 and 7.1 of the IMCCampaign. It is highly likely that you will not have any experience with budgeting.Therefore, the following budget breakdown is suggested.

IMC Objective 1: $ 60 millionIMC Objective 2: $100 millionIMC Objective 3: $ 40 million

Objective 2 deals with the distribution channel and trade promotions. Typically, these twoelements account for 50% of all marketing dollars spent. Thus, allocating a total of $100million matches current industry practice. The $60 million for Objective 1 allows for agreater emphasis on the consumer market than the business-to-business market.

The third part of the IMC Campaign assignment for this chapter is to complete Sections5.2.1.1 and 5.2.1.2 for IMC Objective One, Sections 6.2.1.1 and 6.2.1.2 for IMC ObjectiveTwo, and Sections 7.2.1.1 and 7.2.1.2 for IMC Objective Three. Sections 5.2.1.1, 6.2.1.1 and7.2.1.1 require an explanation of the percentage of each budget that will be used foradvertising and the goals you wish to accomplish with the advertising. Bear in mind that youwill need money for trade promotions, sales promotions, personal selling, sponsorships,direct marketing programs, and all other marketing program that will assist in theaccomplishment of each IMC objective so you can put everything into advertising. Thisexercise is to be completed for each IMC objective. In addition to deciding on the budgetamount, you should decide on the type of communications budget that will be used in termsof a pulsating, flighting, or continuous. Be sure to justify the budgeting method chosen.

The final part of this chapter presents the Creative Brief, which is found in Sections 5.2.1.2,6.2.1.2 and 7.2.1.2 of the IMC Campaign outline. Following the example used in the textand based upon their promotion opportunity analysis, prepare a Creative Brief.


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Chapter 6 IMC Plan Pro Exercise: Complete Sections 4.3, 5.1, 5.2.1.1, 5.2.1.2, 6.1, 6.2.1.1.,6.2.1.2, 7.1, 7.2.1.1, and 7.2.1.2.


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Chapter 7

Choosing the Correct Appeal for an IMC Advertising Campaign

In this chapter, the first part of the advertising design as it relates to the Creative Brief is

considered. The second part of advertising design will be written after Chapter 8 has beenanalyzed. Both Chapter 7 and 8 are placed in Sections 5.2.1.3, 6.2.1.3, and 7.2.1.3 of the IMCoutline.

The three key theories presented in chapter 7 should be utilized in the development ofadvertisements. These include: the hierarchy of effects model, means-ends theory, and visualand verbal imaging. A means-end chain should be prepared for each creative brief. Ifprepared properly, the means-end chain should work for any type of media choice and moreimportantly, guide in the actual development of the advertisement. In addition to discussingthe visual and verbal image issues, you should prepare a tagline that will be used in all of theadvertisements to create consistency among the various IMC components.

The next part of Sections 5.2.1.3, 6.2.1.3, and 7.2.1.3 is deciding on the type of appeal to beused. The appeal may be different for print ads than for television advertising or billboardads.

Chapter 7 IMC Plan Pro Exercise: Work on Sections 5.2.1.3, 6.2.1.3 and 7.2.1.3.


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Chapter 8

Selecting an Executional Framework for an IMC Advertising Campaign

Chapter 8 is the one most students look forward to with the greatest anticipation because you

have the opportunity to design the actual advertisements that will be used for your product.To get a feel for the challenge in creating an advertisement, you may want to create at leastone broadcast ad and one print ad. For broadcast advertisements, you should create astoryboard with 6 to 12 captures before you start shooting the actual TV advertisement.

Before designing the advertisements, think about the various message strategies you canemploy, such as cognitive, affective, conative, and brand strategies. You will also need todecide on an executional framework format, such as animation, slice of life, testimonial,dramatization, or one of the others. Finally, a spokesperson should be chosen for theadvertisement. If the spokesperson is a celebrity, the cost of the celebrity endorsement mustbe considered. Once these decisions are made, you are ready to create the ads. The textbook

provides an excellent illustration of the process and factors that should be used in thedevelopment of the advertisements as well as helpful hints in evaluating the effectiveness ofthe ads. All of this information as well as the completed advertisements should be placed inSections 5.2.1.3, 6.2.1.3, and 7.2.1.3 of the IMC outline.

Chapter 8 IMC Plan Pro Exercise: Complete Sections 5.2.1.3, 6.2.1.3 and 7.2.1.3.


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Chapter 9

Selecting Media for an IMC Advertising Campaign

The portions of the IMC Campaign to be completed in this Chapter are 5.3, 6.3, and 7.3. Foreach target market, a medium should be chosen that will best reach the target market. You

should decide how much money will be spent on the media plan after deducting the cost ofadvertising production.

Once the budget is completed, you will develop a media plan. The plan should be for oneyear and include the following information:

a) media choice (television, radio, magazine, etc.)b) program within media (Friends, Monday Night Football, Survivoretc.)c) the cost per advertisement, number of advertisements, and total cost.d) CPMe) rating points, gross rating points and cost per rating pointf) a discussion of frequency and reach

If rating points, audience size, and other data are not available, estimate these figures andprovide a justification of how you arrived at the estimates. Prepare a table such as the oneillustrated in the chapter. The presentation should include a media plan, especially for (a) and(b) above, as well as a rationale for each decision.

In preparing the media plan, consider business-to-business advertising needs as well asadvertising that may need to be directed toward individual channel members. This portion ofthe media plan will undoubtedly look different than the media plan for consumers.

Chapter 9 IMC Plan Pro Exercise: Complete Sections 5.3, 6.3 and 7.3.


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Chapter 10

Matching Trade Promotion Tactics with an IMC Advertising Campaign

In this Chapter, you should examine the trade promotions portion of the IMC Campaign.

Most students do not have any experience with trade promotions. Consequently, it will bedifficult to estimate costs and to know the best types of trade promotions for individualproducts. By this point, you have already identified channel members such as wholesalers,distributors, and retailers. Keep in mind that, for most products, approximately 50% of theIMC budget will go to trade promotions. It is recommended that only 40% or $80 million beallocated for trade promotions in this assignment.

Begin this part of the IMC Plan by carefully examining Figure 10, which lists the varioustypes of promotions. If a new product is being introduced, a slotting fee, which can rangefrom $100 to $1000 per store, may be charged. If the product is going to be stocked indiscount stores such as Wal-Mart, the slotting fee for just Wal-Mart will range from

$280,000 to $2,800,000. To encourage retailers and wholesalers to stock the merchandise, anoff-invoice allowance should be offered. Without a strong brand name to pull the productthrough the channel, this off-invoice allowance encourages channel members to push theproduct through to retail stores and consumers.

In addition to the trade promotions, you need to design the product's package and any POPdisplays that will be used by retailers. As you complete this exercise, keep in mind howimportant the package design is to retailers trying to stock crowded shelves and aisles.

For this chapter, you will complete Sections 6.2.2 of the IMC Campaign. Trade promotionsare not part of IMC Objectives One or Three, which deal with consumer markets andbusiness-to-business markets, respectively. Trade promotions are utilized only for pushingthe product through the channel of distribution.

Chapter 10 IMC Plan Pro Exercise: Complete Section 6.2.2.


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Chapter 11

Creating Consumer Promotions for an IMC Campaign

For this portion of the IMC Campaign, you should examine which consumer promotions you

want to offer. Consumer promotions should be considered for both the consumer markets(Objective One) and the business-to-business market (Objective Three). From Figure 11.1,choose consumer promotions that fit with advertisements and other elements of the IMCcampaign you have already designed.

As part of the IMC Campaign, you should design the actual consumer promotions items to beused, such as coupons or premiums. It is important to think carefully about how thepromotion piece will integrate with advertisements you have already created as well as theother IMC components.

In the first section of this chapter's assignment, you should discuss budgets for consumer

promotions. The second section is where you present the rationale for the promotional piecesthat have been selected. The third section requires actual samples of the promotions.

Chapter 11IMC Plan Pro Exercise: Complete Sections 5.2.2 and 7.2.2.


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Chapter 12

Personal Selling and Database Management

Personal selling strategies vary based on the objectives involved. For Objective One, Section5.2.3, you should address the issues of selling within the retail environment. You shouldidentify the type of retail sales that would be the most appropriate for the product. Adiscussion of the consumer buying process will help in understanding the role retailsalespeople play as well as how the vending firm can offer training or incentives to enhancesales of the product at the retail level.

The major portion of this chapter deals with how the field sales force that handles the channelmembers and business-to-business customers. You should decide which type of sellingrelationship the sales force should pursue and how it will be attained. Elaborate on each stepin the personal selling process as it applies to their firm. Especially important is the

discussion of identifying and qualifying prospects.

Regardless of the type of product being sold, developing a data warehouse is essential.Discuss the types of data to be collected and how the company will build a data warehouse.Identify the objectives and uses for the data. This is important in terms of knowing the datarequired and if data should be purchased from an outside vendor or developed internally. Youshould discuss the concept of data mining as it relates to your products as well as how theseactivities fit into the IMC Campaign. This section of the report is written for Sections 5.2.5.1,6.2.4.1, and 7.2.5.1 of the IMC outline. As these sections are being completed, you shouldrealize that the data needs for the consumer portion of their IMC Campaign are different fromthe data needs for either business-to-business customers or channel members.

The second component of database management is the development of a direct marketingprogram. You can prepare a direct marketing program to serve consumers and the business-to-business markets. The first decision that must be made is the type(s) of direct marketingmethods to be used. Discuss the various methods of direct marketing available. Thisinformation becomes Sections 5.2.5.2, 6.2.4.2, and 7.2.5.2 of the IMC Campaign outline.

Sections 5.2.5.3 and 7.2.5.3 of the IMC Campaign are any permission marketing programs.Permission marketing can be used for either consumers or business-to-business customers.Sections 5.2.5.4 and 7.2.5.4 address any customer loyalty or frequent shopper programs to beoffered. Again, both consumer markets and business-to-business markets may include loyaltyor frequent shopper type programs.

Chapter 12 IMC Plan Pro Exercise: Complete Sections 5.2.3, 5.2.5, 6.2.3, 6.2.4, 7.2.3, and7.2.5


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Chapter 13

Generating Positive Publicity and Considering Sponsorships

Section 3.6 of the IMC outline addresses the public relations function. Sections 5.2.4 and

7.2.4 address sponsorship and event marketing issues. In Section 3.6 regarding publicrelations, you should first identify the various stakeholders then discuss the types of messagesyou will want to convey to the various stakeholder groups. Figure 14-6 lists the variouspublic relations tools that can be used for these purposes.

Event and sponsorship marketing has increasingly become more popular. You shouldconsider how events and sponsorships create synergies between the event or group beingsponsored, the consumers who attend, the company, and the products themselves. It isimportant not only to decide how much of their budgets will be used for events andsponsorships, but also to discuss the objectives to be accomplished. You should also mentionhow the event or sponsorship fits into the overall IMC approach. Events and sponsorships for

the consumer market are presented in Section 5.2.4 of the IMC outline and in Section 7.2.4for business-to-business markets.

Chapter 13 IMC Plan Pro Exercise: Complete Sections 3.6, 5.2.4 and 7.2.4.


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Chapter 14

Creating Internet Marketing Plans

The Internet is a vital component of any IMC Campaign. In this section, you are asked to

design the opening page of a Web site. This can be done in Word, WordPerfect, or any Webdesign software such as Front Page depending your background and skills. Before the Website is designed, the function of the Web site and how it will be integrated into the IMCCampaign should be addressed. If the Web site will be used for direct purchases by eitherconsumers or businesses, then you must think about the shopping cart and e-commerceincentives that will be used to attract buyers. Discuss how the Internet Web site will interfacewith the IMC Campaign objectives.

Chapter 14 IMC Plan Pro Exercise: Complete Section 4.4.


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Chapter 15

IMC for Small Businesses and Entrepreneurial Ventures

The final section of the textbook is labeled Integration Tools. Since chapter 15 is devoted

to small businesses and new companies, this is an opportunity for you to review your IMCPlan to ensure you have integrated all of the materials up to this point. After you havereviewed the material, you should prepare an Executive Summary, Section 1.0. This willgive you an opportunity to examine everything you have prepared. It will also present alogical lead-in to the final chapter regarding evaluation programs.

Chapter 15 IMC Plan Pro Exercise: Complete Section 1.0.

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Chapter 16

Evaluating Your IMC Program

The evaluation aspect of the IMC Campaign can be addressed in one of two ways. First, it

can be a separate section of the report (Sections 5.4, 6.4, and 7.4). Second, it can beincorporated into each section of the report. If this latter method is used, you will not need toprepare Sections 5.4, 6.4, or 7.4. Instead, the last part of each section of 5.2, 6.2, and 7.2 willbe the method of evaluation. For example, after discussing advertising, add Section 5.2.1.4 orthe "Evaluation" component. A similar procedure would be used for trade promotions,consumer promotions, and the other elements. Regardless of the method used, you shoulddiscuss methods of evaluation for each component of the IMC program.

The first factor that should be considered is the level of the evaluation such as short-term,long-term, product-specific, brand, and corporate. Figure 16.1 presents the various evaluationtechniques that are available. It is important to also incorporate behavioral measures of

evaluation that are listed in Figure 16.4. Consideration should be given to how the publicrelations effort will be evaluated. Finally, consider overall health of the company and discussthe various methods listed in Figure 16.6. These last two components, public relations andcompany health evaluations should be placed in Section 3.7 of the IMC outline.

As you complete this portion of their IMC Campaign, it is a good opportunity to review theentire plan to ensure is a comprehensive plan that fully integrates all of the variouscomponents.

Chapter 16 IMC Plan Pro Exercise: Complete Sections 3.7, 5.4, 6.4 and 7.4.

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