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An Introduction to Integrated
Marketing Communications

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 Integrated Marketing Approach

• Traditional mass media

– Television, radio, magazines, newspapers,
billboards
– Now drive consumers to Web sites
• Online strategies
– Provide detailed information
– Be experiential, entertaining, interactive
– Twitter, MySpace, YouTube, Facebook,
Instagram, wireless mobile media
devices, e-mail etc
The New Look of Advertising

Interactive, Informative, Entertaining

 What is Marketing?

• An organizational function Value

• The 4 Ps: Product, Price,

Place, Promotion Relationship marketing
• Processes for creating,
communicating, and
delivering value to Mass customization
customers
• Managing customer Customer relationship
relationships in ways that management (CRM)
benefit the organization and
its stakeholders
 The Scion Web Site

Consumers can now customize

the car they want to purchase
Coordinated Marketing Elements Build Image

Mont Blanc uses a classical design and a

distinctive brand name, as well as a high
price, to position its watches as high-quality,
high-status time pieces.
The upscale image is enhanced by the
company’s strategy of distributing
its products only though boutiques,
jewelry stores, and exclusive retail shops.
Mont Blanc’s distinctive image
is a result of coordination of all of the
marketing mix elements.
 Traditional Marketing Approach

Sales
Special
Point of promotion
events
purchase Interactive
marketing

Media
Packaging
Adver-
tising
Public
relations
Publicity Direct
Direct
marketing response
 Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events
 Defining IMC

IMC is a strategic business

process used to plan, develop,
execute and evaluate coordinated,
measurable, persuasive brand
communication programs with
consumers, customers, prospects
employees and other relevant
external and internal audiences.

The goal of IMC is to

generate short-term
financial returns and build
long-term brand value.
 Role of IMC

• To plan marketing and promotion programs and

coordinating various communication functions
• With an integrated approach, all of a company’s
marketing and promotional activities should
project a consistent and unified image to the
marketplace

Recognized as a business process

IMC Importance of relevant

Multiple relevant audience
audiences

Demand for accountability and

Demand for accountability
measurement of outcomes
 Growing Importance of IMC

• Strategic integration of
communications functions
– Avoids duplication
– Synergy among promotional tools
– More efficient and effective marketing
• Rapidly changing environment
– Consumers
– Technology
– Media
Behind the Growing Importance of IMC

From Toward
Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Traditional compensation Performance-based compensation

Limited Internet availability Widespread Internet availability

 The Role of IMC in Branding

• Brand identity is a combination of

– Name
– Logo
– Symbols IMC plays a major role
in developing and
– Design sustaining brand
– Packaging identity and equity

– Performance
– Image or associations
The Most Valuable Brands in the World

Brand Value
Rank Brand (Billions)
1 Coca-Cola $65.32
2 Microsoft 58.71
3 IBM 57.09
4 General Electric 51.57
5 Nokia 33.70
6 Toyota 32.07
7 Intel 30.95
8 McDonald’s 29.39
9 Disney 29.21
10 Mercedes-Benz 23.57
 Finding New Ways to Build Brands

• Consumers are driving the trend

– They view brands as a form of
self-expression
– They know more about brands and the
companies that make them
– Cynicism about corporations is at an
all-time high
– They seek and share information with
other consumers via the Internet
 Finding New Ways to Build Brands

• Get consumers involved

– Apple Computer lets consumers test products
in store
– Starbucks positions stores as a community
gathering place
• Interaction can be the best marketing
– MySpace
– Facebook
– Google
– Instagram
– Twitter
– YouTube
 The Promotional Mix

Advertising

Direct Marketing

Interactive/
Internet Marketing

Sales Promotion

Publicity/Public
Relations

Personal Selling
 Advertising

• Paid forms of non-personal

communication
– About an organization, product, service,
or idea by an identified sponsor
– No feedback from audience
– Important for products and services
aimed at mass consumer markets
– Cost effective
 Advertising

• Advertising is still the most cost-effective

way to reach large audiences.
• Advertising is a valuable tool for building
company or brand equity as it is a powerful
way to provide consumers with information
as well as to influence their perceptions.
• Advertising can be used to create favorable
and unique images and associations for a
brand to differentiate on the basis functional
attributes.
 Advertising
Advantages
• cost-effective way for communicating, particularly
with large audiences
• ability to create images and symbolic appeals and
for differentiating similar products and services
• valuable tool for creating and maintaining brand
equity
• ability to strike responsive chord with audience
through creative advertising
• opportunity to leverage popular advertising
campaigns into successful IMC programs which can
generate support from retailers and other trade
members
• ability to control the message (what, when and
how something is said and where it is delivered)
 Direct Marketing

Direct
Mail
Direct
Internet
Response
Sales Advertising
Direct
Marketing
Shopping
Telemarketing
Channels

Catalogs
 Direct Marketing

• Direct Marketing—a system of

marketing by which organizations
communicate directly with target
customers to generate a response
and/or a transaction.
• Company develop and maintain
databases containing the addresses
and phone no. of present and
prospective customers.
 Interactive/Internet Marketing

• Back-and-forth communication
– Users participate in and modify the form
and content of information
– Happens in real time
• Interactive media
– Internet
– CD-ROMs
– Kiosks
– Interactive television
– Digital cell phones
 Using the Internet as an IMC Tool

The
Internet

Educates or A persuasive A sales tool

informs advertising or an actual
customers medium sales vehicle

Obtains Provides Builds and

Communicates
customer customer maintains
and interacts
database service and customer
with buyers
information support relationships
 Sales Promotion

• Sales promotion is defined as those

marketing activities that provide extra
value or incentives to the sales force,
the distributors, or the ultimate
consumer and can stimulate
immediate sales.
• Sales promotion is generally broken
down into two categories:
 Sales Promotion

Coupons
Samples Trade Allowances
Premiums
POP Displays
Contest/Sweepstake
Refunds/Rebates Training Programs
Bonus Packs Trade Shows
Loyalty Programs Co-op Advertising
Events

Consumer-oriented Trade-oriented
[For end-users] [For resellers]
 Sales Promotion

• provides extra incentive to consumer or

middlemen to purchase or stock and
promote a brand
• way of appealing to price sensitive
consumer
• way of generating extra interest in product
or ads
• effects can often be more directly measured
than those of advertising
• can be used as a way of building or
reinforcing brand equity
 Sales Promotion

• Most of the promotional budget now

goes to sales promotion
– Declining brand loyalty
– Increased consumer sensitivity to “deals”
– Larger and more powerful retailers are
demanding more trade promotion support
 Publicity / Public Relations

• Publicity—nonpersonal communications
about an organization, product, service, or
idea that is not directly paid for nor run
under identified sponsorship.
• Public Relations—a management function
which evaluates public attitudes, identifies
the public policies and procedures of an
individual or organization with the public
interest, and executes a program of action
to earn public understanding and
acceptance.
 Publicity Vehicles
Companies attempt
to get the media
to cover or run favorable Feature
stories on their Articles
products, services, or causes.

Interviews
News
Releases Publicity
Vehicles

Special
Press
Events
Conferences
 Publicity…continued

Advantages of Publicity:
• credibility of publicity is usually higher
than other forms of marketing
communication
• low cost way of communicating
• often has news value and generates
word-of-mouth discussion among
consumers
 Public Relations
• Systematically planning and
distributing information in an
attempt to control and manage
image and the nature of the
publicity received.
• The management function which
evaluates public attitudes,
identifies the policies and
procedures of an individual with
the public interest.
• Executes a program of action to
earn public understanding and
acceptance
 Publicity / Public Relations

• The distinction should be made

between publicity and public relations
noting that public relations generally
has a broader objective than publicity,
as its purpose is to establish and
maintain a positive image of the
company among its various publics.
• Publicity is an important
communications technique used in
public relations; however other tools
may also be used.
 Public Relations Tools

Cause-related
Marketing

Publicity Special
Vehicles Publications

Community Corporate
Activities Advertising

Public Affairs Special Event

Activities Sponsorship
 Personal Selling

• Person-to-person communication
– A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
 Personal Selling
• Personal selling involves direct contact
between buyer and seller.
• This can be face-to-face or through some
form of telecommunications, such as
telephone sales.
• This interaction allows the seller to see or
hear the potential buyer’s reactions and
modify the message accordingly.
 Personal Selling

Advantages:
• direct contact between buyer and seller
allows for more communication flexibility
• can tailor and adapt message to specific
needs or situation of the customer
• allows for more immediate and direct
feedback
• promotional efforts can be targeted to
specific markets and customers who are
best prospects
 The IMC Planning Process

• Developing an integrated marketing

communications plan requires

Planning
Executing
Evaluating
Controlling
 Basic Elements of a Marketing Plan

1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance

 Model of the IMC Planning Process
Review of marketing plan

Analysis of Promotional program situation

Analysis of communications process

Budget determination

Develop integrated marketing communications program

Sales PR/ Personal Direct Internet/

Advertising
promotion publicity selling marketing interactive

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program