An Introduction to

Integrated Marketing Communications

Definition of IntegratedMarketing CommunicationsA concept of marketing communications planning that

recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum communications impact (through the seamless integration of discrete messages).

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IDEAS INVOLVED IN IMC APPROACHDespite the increasing use of the term IMC approach by both

practitioners and academics in recent years, there is little agreement on what the term actually means. According to one recent review, at least two related ideas are involved :

One-voice Marketing CommunicationsIntegrated Communications

The different elements of the communications mix have to be used in a way that the strengths of one are used to offset the weakness of another.

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One-voice Marketing Communications As consumers increasingly being to be addressed by the same marketer in a variety of different ways ( i.e. through 5 tools of promotion) - there is a need to ensure a consistency of positioning, message, and tone across these different media. These different communications must reach consumers with one voice.

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II. Integrated Communications A marketer’s consumer communications need not only to raise brand

awareness, or create or change brand preference and image, or to get

sales trial or repurchase, but to do all of the above at the same time.

Increasing image without getting a sales result is not good enough and

getting short-term sales (e.g. via sales promotion) at the expense of a

brand’s long-term image is also courting disaster. Thus , all marketing

communications should attempt to simultaneously achieve targeted

communication goals (e.g. raising attitudes or building image) and lead

to some behavioral action (e.g. trial or repurchase).

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The Marketing & Promotional Mixes

Marketing Mix:• Product or Service• Pricing • Channels of Distribution• Promotion

Promotional Mix:• Advertising• Direct Marketing• Interactive/internet marketing• Sales Promotion• Publicity/Public Relations• Personal Selling

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Corporate Level Message Sources

Administration Manufacturing/ Marketing Finance Human Legal

Operations Resources

Cross-Functional Brand Equity (IM) Team

Marketing Level Message Sources

Product Price Marketing Distribution Mix Mix Communication Mix

Cross-Functional IMC Team

Marketing Communication Level Message Sources

Personal Adver- Sales Direct Public Pack- EventsSales tising Promotion Marketing Relations aging

Interactivity

Other StakeholdersEmployeesInvestorsFinancial CommunityGovernmentRegulators

CustomersDistributorsSuppliersCompetition

ConsumersLocal CommunityMediaInterest Groups

Communication-Based Marketing Model

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Communication LevelsCorporate Level

Messages sent by a company’s overall business practices and philosophies such as mission, labor practices, philanthropies, culture and other processes

Marketing LevelMessages sent by or inferred from by various aspects of marketing mix such as product performance, design, appearance, pricing and distribution

Marketing Communication LevelStrategic and executional consistency among all forms of marketing communication

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Reasons For Growing Importance of IMCShift from media advertising to other forms of

marketing communicationMovement away from advertising focused-

approaches that emphasize mass media Shift in power from manufacturers to retailersRapid growth of database marketingDemands for greater ad agency accountabilityChanges in agency compensationRapid growth of the InternetIncreasing importance of branding

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IMC Communication Tools

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IMC Communication Tools

AdvertisingDirect

MarketingInteractive/

Internet Marketing

SalesPromotion

Publicity/PublicRelations

PersonalSelling

Any paid form of non-personal communication about an organization, product, service, idea or cause by an identified sponsor.

Any paid form of non-personal communication about an organization, product, service, idea or cause by an identified sponsor.

Advertising

Disadvantages of advertisingHigh costs of producing

and running adsCredibility problems and

consumer skepticismClutterDifficulty in determining

effectiveness

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Advantages of advertisingAdvantages of advertising– Advertiser controls the Advertiser controls the

messagemessage– Cost effective way to Cost effective way to

communicate with large communicate with large audiencesaudiences

– Effective way to create brand Effective way to create brand images and symbolic images and symbolic appealsappeals

– Often can be effective way to Often can be effective way to strike responsive chord with strike responsive chord with consumersconsumers

                                           

Classifications of Advertising Advertising to Consumer MarketsNational advertisingRetail/local advertisingAdvertising to increase demand

Primary demand for the product categorySelective demand for a specific brand

Advertising to Consumer MarketsNational advertisingRetail/local advertisingAdvertising to increase demand

Primary demand for the product categorySelective demand for a specific brand

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Business & professional advertising•Business-to-business advertising•Professional advertising•Trade advertising

Business & professional advertising•Business-to-business advertising•Professional advertising•Trade advertising

A system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.

A system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.

Direct Marketing

Disadvantages of direct marketing

Lack of customer receptivity and very low response rates

Clutter (too many messages)Image problems – particularly

with telemarketing

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Advantages of direct marketingAdvantages of direct marketing Changes in society have made Changes in society have made

consumers more receptive to direct-consumers more receptive to direct-marketingmarketing

Allows marketers to be very selective Allows marketers to be very selective and target specific segments of and target specific segments of customerscustomers

Messages can be customized for Messages can be customized for specific customers.specific customers.

Effectiveness easier to measureEffectiveness easier to measure

Direct MarketingDirect marketing methods

Direct mailCatalogsTelemarketingDirect response adsDirect sellingInternet

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A form of marketing communication through interactive media which allow for a two-way flow of information whereby users can participate in and modify the content of the information they receive in real time.

A form of marketing communication through interactive media which allow for a two-way flow of information whereby users can participate in and modify the content of the information they receive in real time.

Interactive/Internet Marketing

Disadvantages of interactive/ internet marketing

Internet is not yet a mass medium as many consumers lack access

Attention to Internet ads is very low

Great deal of clutter on the Internet

Audience measurement is a problem on the Internet

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Advantages of interactive/ internet marketing

Can be used for a variety of IMC functions

Messages can be tailored to specific interests and needs of customers

Interactive nature of the Internet leads to higher level of involvement

Can provide large amounts of information to customers.

Interactive/Internet MarketingUse of the Internet as an IMC Tool

As an advertising medium to inform, educate and persuade customersAs a direct sales tool To obtain customer database informationTo communicate and interact with buyersTo provide customer service and supportTo build and maintain customer relationshipsAs a tool for implementing sales promotion As a tool for implementing publicity/public

relations programs

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

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

Sales Promotion

Trade-orientedTargeted toward marketing

intermediaries such as retailers, wholesalers, or distributors Promotion allowances Merchandise allowances Price deals Sales contests Trade shows

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Consumer-orientedConsumer-oriented– Targeted to the ultimate Targeted to the ultimate

users of a product or users of a product or serviceservice CouponsCoupons SamplingSampling PremiumsPremiums RebatesRebates ContestsContests SweepstakesSweepstakes POP materialsPOP materials

Sales Promotion UsesIntroduce new productsGet existing customers to buy moreAttract new customersCombat competitionMaintain sales in off seasonIncrease retail inventoriesTie in advertising & personal sellingEnhance personal selling efforts

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Publicity

Advantages of publicityCredibilityLow cost (although not totally free)Often results in word-of-mouth

Disadvantages of publicityNot always under control of organizationCan be negative

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

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

Publicity VehiclesNews Releases:

Single-page news stories sent to media who might print or broadcast the content.

Feature Articles:Larger manuscripts composed and edited for a particular

medium.

Captioned Photos:Photographs with content identified and explained below

the picture.

Press Conferences:Meetings and presentations to invited reporters and editors.

Special Events:Sponsorship of events, teams, or programs of public value.

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ADVANTAGES AND DISADVANTAGES OF PROMOTIONAL COMPONENTS

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(***Packaging and public relations also play Imp. role in promotion mix.)

Promotional compo.

Scope Cost Advantages Dis -Advantages

Advertising Mass Relativity Inexpensive per contact

Allows expressiveness and control over message

Hard to measure results

Publicity Mass Inexpensive Has high degree of credibility

Not as easily controlled as other forms

Personal selling Personal Expensive per contact

Permits flexible presentation & gains immediate response

Costs more than all other forms per contact

Sales Promotion

Mass Can be costly Gains attention and has immediate effect

Easy for others to imitate

Public Relations

Tools used by Public RelationsPublicitySpecial publicationsCommunity activity participationFund-raisingSpecial event sponsorshipPublic affairs activities

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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.

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.

Direct person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to to purchase a product or service.

Direct person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to to purchase a product or service.

Personal Selling

Disadvantages of personal sellingHigh costs per contactExpensive way to reach large

audiencesDifficult to have consistent

and uniform message delivered to all customers

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Advantages of personal sellingAdvantages of personal selling– Direct contact between buyer and Direct contact between buyer and

seller allows for more flexibilityseller allows for more flexibility– Can tailor sales message to Can tailor sales message to

specific needs of customersspecific needs of customers– Allows for more direct and Allows for more direct and

immediate feedbackimmediate feedback– Sales efforts can be targeted to Sales efforts can be targeted to

specific markets and customers specific markets and customers who are best prospects.who are best prospects.

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Promotional Management

Considerations for developing the promotional program include:Type of productBuyer’s decision processStage of product life cycleChannels of distribution

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Models That Help to Conceptualize the Buying ProcessTwo very specific models that aid in understanding the buying process, as well as in framing communication are:-

(1) A I D A Model (2) Hierarchy–of–effects model

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A I D A MODELAttention (awareness)

Interest Desire Action According to ‘AIDA’ model, A marketer

should begin by winning attention or gaining awareness, creating interest, inspiring desire and precipitating the action for purchase, in the prospects in order to enable its product to be adopted by the target public.

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Hierarchy–of–effects model

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Awareness

Knowledge

Liking

Preference

Conviction (Strong belief)

Purchase