MK12 - IMC Tutorial Products Fall 2023

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Page 1 © Boston University. It is a violation of BU’s Academic Conduct Code to post this material anywhere. MK323 – Marketing Management Tutorial: IMC (Awareness) Tutorial developed by Jonathan Hibbard, Deborah Utter, Lorri Veidenheimer Revised by Jonathan Hibbard, Lorri Veidenheimer, Deb Utter, Isabella Previte, May 2023 Updated 10/20/23 This tutorial is your roadmap for estimating the percent awareness you will achieve for your target segment for the five years of your forecast. It walks you through the calculations for most of the elements of your integrated marketing communications plan and provide you guidelines to make these estimates realistic. Because of the number of elements and the complexity of making the calculations for each year, each team member should be engaged in double-checking the assumptions, calculations and reviewing these guidelines. Below are important points to know upfront: ● Product teams will create national awareness and launch their products nationally. ● Teams must think creatively to generate awareness and use many communication tools to achieve your goals. Diversification is key with this type of planning both in the real world and for this project. ● One vehicle alone does not create awareness. It is the TOTAL of ALL the impressions from ALL your marketing vehicles which create awareness. ● The method you will use to examine individual elements of your IMC is called a Quick Test, which is described later in this tutorial. We have divided this tutorial into the following sections: Part I - Pull Marketing Part II - Guidelines Part III - Push Marketing Part IV – Example IMC Plan Part I: Pull Marketing — Marketing that DIRECTLY targets end customers, so they are aware of your product/service and seek it out to purchase We divide Pull marketing Paid, Owned and Earned Media: Paid Media – Awareness is generated from money you pay for advertising and other vehicles Owned Media – Awareness is generated and nurtured by your company’s own properties including social media and website properties Earned Media – Awareness is amplified by user enthusiasm from paid or owned media

Page 2 © Boston University. It is a violation of BU’s Academic Conduct Code to post this material anywhere. Paid Media -- Online Advertising for Products AWARENESS Teams can use Meta’s Instagram and Facebook Ads Manager to roughly simulate the audience who would view your online advertisements. Ads Manager allows you to select target audiences, set a budget, set advertising objectives, and create advertisements that could be shown to your target audience (NOTE: f or the Creative Workshop, you will generate your own ads). To demonstrate, throughout this tutorial, we will use the example of a woman’s hair accessory product, which targets females, ages 25-54, who consider themselves stylish. This target market is 12,000,000 women, based on the segmentation tree. Note : You will need to review the TA Video Tutorial, “IMC Meta Ads Manager” to set up a business Facebook account so you can access Ads Manager tool to develop your awareness-building ad campaign.  TA (Isabella Privite) Video Tutorial on IMC Meta Ads Manager: https://youtu.be/WGEbVSGgdmY  Meta site: https://business.facebook.com/overview/  For this tutorial, we will assume that the annual online ad budget is $60,000. When we filter to reach our target for the women’s hair care accessory, we might get information in the screenshots below: Total annual impressions: Using the example of a girls’ hair accessory product, identify an audience to reach with your ad using the Meta filters age, demographic and geographic information, and one interest — note that adding interests will increase the number of impressions, and make your audience too large. Conservatively, Meta estimates that this company will get approximately 58,000 impressions/day. Since you are creating an annual plan, multiply that by 365 days. 58,000 x 365 = 21,170,000 Total annual impressions Targeted Impressions: Because Meta’s filters will never match your segmentation tree exactly, we need to make an adjustment for the imprecise number of impressions. Many of the people seeing your ad will not be interested in your product/service. Adjust your annual impressions by 50% for a better fit between your target segment and that which Meta can provide.

Page 3 © Boston University. It is a violation of BU’s Academic Conduct Code to post this material anywhere. 21,170,000 annual impressions x 50% = 10,585,000 Targeted impressions Ad impact: Online ads are plentiful and readers have learned to ignore them while scrolling or gaming. While some ads have placement that is more impactful than other ad placement, we will use an average discount rate of 30% to account for impact phenomenon. 10,585,000 targeted impressions x 30% ad impact = 3,175,500 Ad impact adjusted impressions Ad repetition: As you know from consumer behavior, few messages are memorable the first time you see them. This is especially true for online ads. Assume that a viewer needs to see your ad six times before they are able to remember it. 3,175,500 adjusted impressions/ 6 ads needed to create awareness = 529,250 People aware Awareness percentage: Always express Awareness as a percentage. (Total annual impressions x 50% targeted impressions x 30% impact) / 6 repetitions / size of target segment) x 100 Online Ad Awareness for our Hair Accessory = ((21,170,000 x .5 x .3)/6/12,000,000) x 100 = 4.41% Awareness COST PER THOUSAND (CPM) Cost per thousand (CPM) is the most common method for pricing web ads. The method relies on impressions, (which is a metric that counts the number of digital views for a particular advertisement.) Advertisers pay website owners a set fee for every thousand impressions of an ad. While an impression measures how many times an ad was displayed on a site, it does not measure many other actions that viewers may take, such as click through rate which measure whether an ad was clicked on. Since our goal is to make viewers aware — and they may become aware without taking any action--we will use CPM as a metric. Online CPM is calculated by dividing the amount spent by the total targeted impressions and then multiplying that number by 1,000. CPM impressions are always TARGETED impressions. CPM = $60,000 X 1,000 = $5.67 10,585,000 ONLINE BUDGET Use the chart below to generate your online advertising budget. This awareness includes awareness generated from your social media efforts* Spending for online advertising – Product Teams Awareness from all online advertising * Year 1: 15% of total pull budget Year 2: 20% of total pull budget Year 3: 25% of total pull budget Year 4: 30% of total pull budget Year 5: 30% of total pull budget Year 1: 2% Year 2: 4% Year 3: 5% Year 4: 6% Year 5: 7%

Page 4 © Boston University. It is a violation of BU’s Academic Conduct Code to post this material anywhere. To calculate the 15% of total pull you can do the following since we don’t know the total budget until we ADD IN the online budget we make the calculation as follows: If budget without online is $100k, then $100,000/ (1- .15) = $117,647. Then take 15% of that = $17,647 to get your online spending budget. Thus, for Year 1, $17,647 can be spent for online advertising Paid Media -- Influencer Marketing Finding Influencers Influencers should be in your target segment or have a target segment that is similar to that of your target segment. For instance, for the women’s hair accessory product, you should find influencers who target women aged 25-54 who consider themselves stylish. You should plan to find at least 1 influencer in each influencer category who is a good fit for your product (i.e.. 1 Nano, 1 Micro, 1 Mid-tier, 1 Macro). The easiest way to find relevant influencers is to search for brands in your product space and review their sponsored posts ( i.e., who do they feature/repost on their page?) Find the “Tagged” posts for that brand profile (sometimes influencers will post products and tag the brand for exposure, even if they are not working with that brand). Other avenues include Instagram hashtag searches, similar profile searches, and Google. How to calculate Awareness from Influencers Spend your influencer budget in $10,000 increments Year Spending Limit * Identify Influencers, size of following Awareness YR 1 $10,000 Team to complete this information 0-1% YR 2 $20,000 1-2% YR 3 $30,000 2-3% YR 4 $40,000 3-4% YR 5 $50,000 4-5% For your IMC plan, you can only use Mid-tier and Macro influencers beginning in the 3 nd year. Before then, you can use a mix of Nano and Micro. Influencer Type Follower Count Minimum # of posts in campaign Nano 1,000-10,000 5 Micro 10,000 – 50,000 5 Mid-Tier 50,000 – 150,000 5 Macro 150,000 - 500,000 5 Paid Media – Guerilla Marketing (GM) Ideas – Products and Services Teams We want each team to develop at least one GM idea (sometimes called out-of-the-box idea) that happens in places where your target could be found in the physical space. When done well, GM inspires photos, videos, comments and can go viral. We want teams to develop and research creative GM ideas. If you need some inspiration regarding guerilla marketing ideas, you can begin here .

Page 5 © Boston University. It is a violation of BU’s Academic Conduct Code to post this material anywhere. Guerilla Marketing Reach and Costs Assume you will replicate this event in 10 cities across the country and in three locations per city. You need to hire local people to help you run the event. For each city, budget $3,0 00, (for travel, hotel and hiring two local workers) plus the actual cost of your GM event. Guerilla Marketing Awareness To determine the awareness from guerilla marketing, you need to classify your target markets by size using the following table: TARGET MARKET CLASSIFICATIONS Size A Size B Size C Under 1 million people or households 1-10 million people or households 10-20 million people or households Once you have determined your size category you can use the chart below to determine the awareness generated by your spending. The chart will tell you how much awareness you generate for every $1,000 you spend for events: AWARENESS RELATED TO GUERILLA MARKETING Size A Size B Size C .20% awareness per thousand dollars .08% awareness per thousand dollars .06% awareness per thousand dollars Using the category chart above, you see with 12 million in the target market that the hair accessory company is in Category C. Reading the awareness chart, you see that you get .06% awareness points for every thousand dollars that you spend. So, for this GM event, that costs $750 each time you do it, your awareness would be: City budget = $3,000 x 10 cities = $30,000 Individual Event budget = $750 x 10 cities x 3 events per city = $22,500 Total spend for event = $52,000 $52,500 x .06% ÷ 1,000 = 3.2% awareness points Core teams may NOT use street teams as their expenses are too high and they are unusual for such a small manufacturer. A street team is a term used in marketing to describe a group of people who 'hit the streets' promoting an event or a product. Paid Media -- Outdoor/Transit — Product Teams Outdoor advertising can work quite well for Core teams as a cost-efficient means of building awareness. Outdoor includes all types of transit (subway, bus, bus stops), billboards, and street stencils. As with events, you need to make sure you get enough coverage of your target market. Product teams need to select at least ten major cities and at least four locations within each city that run at least two times per year . The costs of outdoor can be found through large outdoor media companies such as Clear Channel or though the library databases and Google searches. Similar to events, it can be very difficult to calculate awareness so

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