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Chapter One

An Introduction to Integrated
Marketing Communications

What is Marketing?
Marketing
Marketing is
is an
an
organizational
organizational
function
function and
and aa set
set of
of
processes
processes for
for
creating,
creating,
communicating
communicating and
and
delivering
delivering value
value to
to
customers
customers and
and for
for
managing
managing customer
customer
relationships
relationships in
in ways
ways
that
that benefit
benefit the
the
organization.
organization.

Value
Value
Relationship
Relationship marketing
marketing
Mass
Mass customization
customization
Customer
Customer relationship
relationship
management
management (CRM)
(CRM)

Marketing Focuses on Relationship and Value

Marketing is the delivery of customer


satisfaction at a profit. It is a social and
managerial process whereby individuals
and groups obtain what they need and
want through creating and exchanging
products and value with others.

Needs are states of felt deprivation.


Wants are the forms taken by human
needs as shaped by culture &
individual personality.
Demands are human wants that are
backed by buying power and
willingness to spend.

Relationship marketing is the process of


creating, maintaining and enhancing strong,
value-laden relationships with customers
and others.
Marketing mix is the set of controllable
tactical marketing tools --- product, price,
place, and promotion --- that the firm
blends to produce the response it wants in
the target market.

Integrated Marketing Communications


IMC
IMC is
is aa strategic
strategic business
business process
process
used
used to
to plan,
plan, develop,
develop, execute
execute and
and
evaluate
evaluate coordinated,
coordinated, measurable,
measurable,
persuasive
persuasive brand
brand communication
communication
programs
programs with
with consumers,
consumers, customers,
customers,
prospects
prospects employees
employees and
and other
other
relevant
relevant external
external and
and internal
internal
audiences.
audiences.
The
The goal
goal of
of IMC
IMC is
is to
to generate
generate
short-term
short-term financial
financial returns
returns and
and
build
build long-term
long-term brand
brand value.
value.

IMC is a concept of marketing communications


planning that recognizes the added value of a
comprehensive plan that evaluates strategic roles
of a variety of communication disciplines advertising, direct marketing, sales promotion,
publicity and public relations and combines these
to provide clarity, consistency, and maximum
communications impact.

Traditional Approach to Marketing Communication

Point of
purchase

Special
events

Publicity

Media
Advertising

Public
relations
Direct
marketing

Sales
promotion

Packaging

Direct
response

Interactive
marketing

Contemporary IMC Approach

Packaging

Sales
promotion

Point of
purchase
Publicity

Interactive
marketing

Media
Advertising

Direct
marketing

Direct
response

Public
relations

Special
events

A Contemporary Perspective of IMC

Recognized
Recognized as
as aa business
business process
process

IMC
IMC

Importance
of
audience
Multiple
audiences
Importance
of relevant
relevant
audience
Multiple relevant
relevant
audiences
Demand
for
accountability
and
Demand
forfor
accountability
and
Demand
accountability
Demand
for
accountability
measurement
measurement of
of outcomes
outcomes

The Evolution of IMC


During the 1980s, many
companies came to see the
need for more of a strategic
integration of their promotional
tools.

Reasons for the Growing Importance of IMC


Companies understand the value of strategically
integrating the various communication functions,
they can avoid duplication, take advantage of
synergy among various tools, develop more
efficient and effective marketing communication
programs and easily can maximize the return on
its investments in marketing and promotion.

Reasons for the Growing Importance of IMC


From

Toward

Media
Media advertising
advertising

Other
forms
of
promotion
Multiple
forms
communication
Other
forms
ofof
promotion
Multiple
forms
of
communication

Mass
Mass media
media

Specialized
Specialized media
media

Manufacturer
Manufacturer dominance
dominance

Retailer
Retailer dominance
dominance

General
General focus
focus

Database
marketing
Data-based
marketing
Database
marketing
Data-based
marketing

Low
Low agency
agency accountability
accountability

Greater
Greater agency
agency accountability
accountability

Traditional
Traditional compensation
compensation

Performance-based
Performance-based compensation
compensation

Limited
Limited Internet
Internet availability
availability

Widespread
Widespread Internet
Internet availability
availability

The Role of IMC in Branding


Brand
Brand Identity
Identity is
is aa
combination
combination of
of factors:
factors:
Name,
Name, logo,
logo, symbols,
symbols,
design,
design, packaging,
packaging, product
product
or
or service
service performance,
performance, and
and
image
image or
or associations
associations in
in the
the
consumers
consumers mind.
mind.
IMC
IMC plays
plays aa major
major role
role in
in
the
the process
process of
of developing
developing
and
and sustaining
sustaining brand
brand
identity
identity and
and equity.
equity.

Elements of the Promotional Mix


Advertising
Advertising
Direct
Direct Marketing
Marketing
Interactive/
Interactive/
Internet
Internet Marketing
Marketing
Sales
Sales Promotion
Promotion
Publicity/Public
Publicity
Publicity/Public
Publicity and
and
Public
Relations
Relations
Public
Relations
Relations
Personal
Personal Selling
Selling

Advertising is any paid form of


non-personal communication
about an organization, product,
service, or idea by an identified
sponsor.

Classifications of Advertising
Consume
Markets

National
National Advertising
Advertising
Retail/Local
Retail/Local Advertising
Advertising
Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising

Business-to-Business
Business-to-Business Advertising
Advertising
Professional
Professional Advertising
Advertising
Trade
Trade Advertising
Advertising

Business and
Professional
Markets

In direct marketing organizations


communicate directly with target
customers to generate a response
and/or a transaction. The tools of
direct marketing are direct-response
advertising, interactive/internet
marketing, etc.

Direct Marketing is Part of IMC


Direct
Direct
Mail
Mail
Direct
Direct
Response
Response
Advertising
Advertising

Internet
Internet
Sales
Sales

Direct
Direct
Marketing
Marketing
Shopping
Shopping
Channels
Channels

Telemarketing
Telemarketing
Catalogs
Catalogs

Sales promotion are those


marketing activities that provide
extra value or incentives to the
sales force, distributors, or
ultimate consumer and can
stimulate immediate sales.

Sales Promotion Tools


Coupons
Samples
Premiums
Contests/Sweepstakes

Refunds/Rebates
Bonus Packs
Loyalty Programs
Events

Consumeroriented
[For end-users]

Trade
Allowances
POP Displays
Training
Programs
Trade
Shows
Coop
Advertising

Tradeoriented
[For resellers]

Various Uses of Sales Promotion


Introduce
Introduce new
new
products
products

Combat
Combat
competition
competition

Enhance
Enhance
personal
personal selling
selling

Get
Get existing
existing
customers
customers to
to buy
buy
more
more

Sales
Sales
Promotion
Promotion

Tie
Tie in
in advertising
advertising
&
& personal
personal
selling
selling

Attract
Attract new
new
customers
customers

Maintain
Maintain sales
sales in
in
off
off season
season

Increase
Increase retail
retail
inventories
inventories

Personal selling is a form of


person-to-person communication
in which a seller attempts to
assist and/or persuade
prospective buyers to purchase
the companys product or service
or to act on an idea.

Publicity refers to non-personal


communications regarding an
organization, product, service, or
idea not directly paid for or run
under identified sponsorship.

Advertising Versus Publicity


Factor
Factor

Advertising
Advertising

Publicity
Publicity

Control
Control

Great
Great

Little
Little

Credibility
Credibility

Lower
Lower

Higher
Higher

Reach
Reach

Measurable
Measurable

Undetermined
Undetermined

Frequency
Frequency

Schedulable
Schedulable

Uncontrollable
Uncontrollable

Cost
Cost

High/Specific
High/Specific

Low/Unspecified
Low/Unspecified

Flexibility
Flexibility

High
High

Low
Low

Timing
Timing

Specifiable
Specifiable

Tentative
Tentative

Publicity Vehicles
Feature
Feature
Articles
Articles

News
News
Releases
Releases

Publicity
Publicity
Vehicles
Vehicles

Press
Press
Conferences
Conferences

Interviews
Interviews
Interviews

Special
Special
Events
Events

Public relations is the management


function which evaluates public
attitudes, identifies the policies and
procedures of an individual or
organization with the public interest,
and executes a program of action to
earn public understanding and
acceptance.

Public Relations Tools


Publicity
Vehicles

Community
Activities

Special
Publications

Corporate
Advertising
Advertising

Public Affairs
Activities

Cause-related
Marketing

Special Event
Sponsorship

IMC Audience Contact Tools


Broadcast
Broadcast
media
media
(TV/radio)
(TV/radio)

Print
Print media
media
(newspapers,
(newspapers,
magazines
magazines))

Public
Public
Relations/
Relations/
publicity
publicity

Internet/
Internet/
interactive
interactive

Direct
Direct
marketing
marketing

Out-of-home
Out-of-home
media
media

Target
Target Audience
Audience
Personal
Personal
selling
selling
Point-ofPoint-ofpurchase
purchase
(displays,
(displays,
packaging)
packaging)

Sales
Sales
Promotion
Promotion

Word-ofWord-ofmouth
mouth

Events
Events and
and
sponsorship
sponsorship

Product
Product
placements
placements
(TV
(TV and
and movies)
movies)

The IMC Planning Process


The Promotional Planning Process
involves designing a promotional
plan that provides the framework
for developing, implementing, and
controlling the organizations IMC
programs and activities.

Review of the Marketing Plan


1.
1. A
A detailed
detailed situation
situation analysis
analysis
2.
2. Specific
Specific marketing
marketing objectives
objectives
3.
3. A
A marketing
marketing strategy
strategy and
and program
program
4.
4. A
A program
program for
for implementing
implementing the
the strategy
strategy
5.
5. A
A process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance

Integrated Marketing Communications Planning Model


Review of marketing plan
Promotional program situation analysis
Analysis of the communications process
Budget determination
Develop integrated marketing communications programs
Advertising

Sales
promotion

PR/
publicity

Personal
selling

Direct
Internet/
marketing interactive

Sales
PR/
Personal
Direct
Internet/
Advertising
promotion publicity
selling
marketing interactive
objectives objectives objectives objectives objectives objectives
Message
strategy

Sales
promotion
strategy

PR/
publicity
strategy

Personal
selling
strategy

Direct
Internet/
marketing interactive
strategy
strategy

Integrate and implement marketing communications strategies


Monitor, evaluate and control IMC Program