Chapter One

An Introduction to Integrated
Marketing Communications

The Role of Marketing

Marketing
Marketing is
is the
the
process
process of
of planning
planning
and
and executing
executing the
the
conception,
conception, pricing,
pricing,
promotion,
promotion, and
and
distribution
distribution of
of ideas,
ideas,
goods,
goods, and
and services
services
to
to create
create exchanges
exchanges
that
that satisfy
satisfy
individual
individual and
and
organizational
organizational
objectives.
objectives.

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

Marketing Focuses on Relationship and Value

Marketing is the delivery of customer

satisfaction at a profit. Marketing is the
activity, set of institutions, and processes
for creating, communicating, delivering
and exchanging offerings that have value
for customers, clients, partners, and
society at large.

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.
Value is the customers perception of all the
benefits of a product or service weighed
against all the costs of acquiring and
consuming it.

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
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 communications
communications
programs
programs over
over time
time with
with consumers,
consumers, customers,
customers,
prospects,
prospects, employees,
employees, associates
associates and
and other
other targeted
targeted
relevant
relevant external
external and
and internal
internal audiences.
audiences.
The
The goal
goal of
of IMC
IMC is
is to
to generate
generate
both
both short-term
short-term financial
financial returns
returns
and
and build
build long-term
long-term brand
brand and
and
shareholder
shareholder 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 for
example, general advertising, direct response,
sales promotion, publicity and public relations
-and combines these disciplines 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

A Contemporary Perspective of IMC

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

Reasons for Growing Importance of IMC

During the 1980s, many companies

began taking a broader perspective
of marketing communication and
seeing the need for a more strategic
integration of their promotional
tools.

Reasons for the Growing Importance of IMC

Companies understand the value of

strategically integrating the various
communication functions rather than having
them operate autonomously. By this they can
avoid duplication, take advantage of synergy
among promotional tools, develop more
efficient and effective marketing
communications programs, and easily can
maximize the return on its investments in
marketing and promotion.

Reasons for the Growing Importance of IMC

Major characteristics of this marketing revolution include:
A shifting of marketing expenditures from traditional
media advertising to other forms of promotion as well
as nontraditional media.
The rapid growth of the Internet and social media that
is changing the nature of how companies do business
and the ways they communicate and interact with
consumers.
A shift in marketplace power from manufacturers to
retailers.
The growth and development of database marketing.
Demands for greater accountability from advertising
agencies and changes in the way agencies and other
marketing communication firms are compensated.

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.

The Promotional Mix: The Tools for IMC

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. It involves
activities such as database
management, direct selling,
telemarketing, and direct-response
advertising through direct mail, the
Internet, and various broadcast and
print media.

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

Interactive/Internet marketing allow users

to perform a variety of functions such as
receive and alter information and images,
make inquiries, respond to questions, and, of
course make purchases.
Interactive media allow for a back-and-forth
flow of information whereby users can
participate in and modify the form and content
of the information they receive in real life.

Sales promotion are those

marketing activities that provide
extra value or incentives to the
sales force, distributors, or the
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

Publicity refers to non-personal

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

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

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.

IMC Audience Contact Tools

Broadcast
media
(TV/radio)

Print media
(newspapers,
magazines)

Public
Relations/
publicity

Internet/
interactive

Direct
marketing

Out-of-home
media

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

Sales
Promotion

Word-ofmouth

Events and
sponsorship

Product
placements
(TV and movies)

The IMC Planning Process

Integrated marketing
communications management
involves the process of planning,
executing, evaluating, controlling
the use of the various promotionalmix elements to effectively
communicate with target
audiences.

Integrated Marketing Communications Planning Model

Review of marketing plan
Analysis of promotional program situation
Analysis of communications process
Budget determination
Develop integrated marketing communications programs
Advertising

Sales
promotion

Advertising
objectives

Sales
PR/
Personal
promotion publicity
selling
objectives objectives objectives

Sales
Advertising
promotion
strategy
strategy

PR/
publicity

PR/
publicity
strategy

Personal
selling

Personal
selling
strategy

Direct
Internet/
marketing interactive
Direct
marketing
objectives

Internet/
interactive
objectives

Direct
Internet/
marketing interactive
strategy
strategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program