INTRODUCTION TO

IMC
INTEGRATED MARKETING COMMUNICATIONS
Defining Marketing Communications
 Marketing communications…
…all forms of communication between an
organization and its target audiences, in the context
of its brands, that affect its marketing performance,
whether positively or negatively.
 Marketing communications mix…
…tools available to or used by an organization, for
communicating with its target audiences, both internal
and external.
Looking At Marketing Communications
 ‘Redefining’ advertising:
Use of mass media, paid or otherwise, by an identified sponsor
(or company), to deliver marketing communications to its
defined target audiences.

AD VW
Looking At Marketing Communications
 ‘Redefining’ promotions:
Any activity designed to attract a target audience with a
view to induce purchase of goods, services and ideas.
Looking At Marketing
Communications
 ‘Redefining’
corporate
communications:
An integrated
organization-wide
approach towards
communication,
including ‘marketing
communication’,
‘organizational
communication’ and
‘management
communication’.
The Communication Process
 The key challenge for marketing communications is to be
able to communicate the right message, in the right
way, to the right people, at the right place, at the right
time! THE ‘OLD’ COMMUNICATION MODEL

Sender Message Media Receiver

WHO? WHAT? BY WHAT MEANS? TO WHOM? WITH WHAT

EFFECT?
What is IMC…
 American Association of Advertising Agencies’ definition:

A concept of good marketing communications that

recognizes the added value of a comprehensive plan
that evaluates the strategic roles of a variety of
communication disciplines (e.g. advertising, direct
response sales promotion and public relations) and
combines these disciplines to provide clarity,
consistency, and maximum communication impact.
What is IMC…

 Betts et al., 1995:

A strategic choice of elements of marketing
communications which will effectively and
economically influence transactions between an
organization and its existing and potential customers,
clients and consumers.
What is IMC…

 Shimp, 2000:
An organization’s unified, coordinated effort to promote
a brand concept through the use of multiple
communications tools that ‘speak with a single
voice’.
What is IMC… in its simplest form?

A management process concept of integrating all

marketing communications activities across relevant
audience points to achieve greater brand coherence.
The IMC Process Model

 The IMC Process Model provides a more

comprehensive framework for understanding how
marketing communication works.
 It recognizes the importance of the micro- and macro-
environment in which Marketing communication takes
place.
 It identifies communications as a two-way process, and the
risks involved in ‘decoding’ or ‘interpretation’ of
communication.
The IMC Process Model

 It highlights the fact that ‘receiver response’ is affected by

several internal factors such as the receiver’s attitudes,
associations, perceived quality & loyalty, in addition to
external factors (such as the environment).

 It also correlates receiver response with Brand Equity, a

measure of the strength, currency and value of the brand
in the consumer’s mind.
The IMC Process Model:
Strategic Tasks For Brand Managers

1. Customer / Audience Relationship Management:

The IMC Process Model expects the Brand Manager
to recognize ‘the life-time value of customers.’

2. Image and brand management: The Model also

identifies the strategic tasks involved in the
management of positive, personal or non-personal
communication between an organization and its
many audiences – in the form of advertising, PR,
and sales promotion.
The IMC Process Model
CUSTOMER/ AUDIENCE RELATIONSHIP MANAGEMENT
Time period + 1

Marketing communications context

Receiver Brand
Sender Message Media Receiver Response Equity

Communications loop
IMAGE AND BRAND
MANAGEMENT
Redefining Target Audience(TA)
 Original definition focused in terms of ‘customers’/
‘consumers’ – current definition includes other
individuals/ groups affecting buying decision…
OPINION LEADERS
& INNOVATORS
END
CUSTOMER
CONSUME INTERNAL

TRADE R
CUSTOMER OTHER
S PUBLIC
TARGET EXTERNAL
MARKET S

TRADE

MEDIA
OTHER
DMUs
Redefining Target Audience(TA)

 Publics: the larger body of individuals or

stakeholders as defined in PR.
 Segments: collective bodies of individuals
expected to respond in the same manner to a
company’s marketing activities and initiatives.
 DMUs: Decision making units – other ‘players’
affecting the purchase outcome e.g. influencers,
gate-keepers, specifiers, deciders, users
overlooked.
The Marketing Communication Mix & IMC
Mix
 Original ‘marketing mix’ developed by Neil Borden of
Harvard had 12 elements. The commonly recognized
‘marketing mix’ popularized by J. McCarthy has 4:
1. Product planning
2. Pricing
3. Branding
4. Advertising 1. Product
5. Promotions
6. Display 2. Price
7. Personal Selling 3. Promotion
8. Channels of distribution
9. Physical handling 4. Place
10. Servicing
11. Fact-finding
12. Analysis
 The Marketing Communication Mix & IMC
Mix
Basic Marketing Communications Mix
Public Relations Advertising Sales Promotion Personal selling

 IMC Planning
Public Relations Advertising Sales Promotion Personal selling
Publicity Product Packaging Direct Sales
Sponsorship Advertising Trade/ Consumer Counter Sales
unication Stakeholders Corporate Promotions Lobbying
communication Advertising Exhibitions
Direct Response Advertising Tele-Market
Marketing Lobbying
Merchandising Customer
Service Product placement
In Conclusion…

 The IMC Mix Model recognizes the ‘overlaps’ that

exist between Advertising, PR, Direct Marketing
Communications, Sales Promotions & Personal
Selling.
 Overlaps cause problems in defining roles and
responsibilities - solution lies in:
A) Defining and remaining focused on unified goals,
B) Ensuring closer coordination within organization, &
C) Accepting collective responsibility for RESULTS.
How can communications be integrated?
1. Clearly identifying Marketing Communication objectives –
consistent with organizational objectives.
2. Adopting a planned approach – ensuring coherence & synergy;
3. Catering to an enlarged target audiences – not just Customers
but other Publics as well;
4. Managing all forms of contact within an organization and
outside;
5. Effectively integrating all promotional activities;
6. Using a range of promotional tools – personal/ non-personal;
7. Coordinating all communication – where one single message
not practical, creating a single ‘visual’ image;
8. Optimizing use of media for effectiveness.
Richard Branson’s Virgin Group of Companies

Virgin is a leading branded venture capital organization and is one of the

world's most recognized and respected brands. Conceived in 1970 by Sir
Richard Branson, the Virgin Group has gone on to grow very successful
businesses in sectors ranging from mobile telephony to transportation, travel,
financial services, media, music and fitness. Virgin uses PR to good effect in
its marketing communication mix.

Virgin has created more than 300 branded companies worldwide,

employing approximately 50,000 people, in 30 countries. Global branded
revenues in 2009 exceeded £11.5 billion (approx. US$18 billion).
“We believe in making a difference. Virgin stands for value for money,
quality, innovation, fun and a sense of competitive challenge. We deliver a
quality service by empowering our employees and we facilitate and monitor
customer feedback to continually improve the customer's experience through
innovation.”
http://www.virgin.co.uk
Benefits of IMC
a) Synergy: described as a “2+2=5 phenomenon”;
b) Linton & Morley’s list of 10 benefits:
1. Creative integrity
2. Consistent messages
3. Unbiased marketing recommendations
4. Better use of media
5. Greater marketing precision
6. Operational efficiency
7. Cost savings
8. High-caliber consistent services
9. Easier working relationships
10. Greater agency accountability.
[EXERCISE]
Benefits of IMC
Linton & Morley’s list of 10 benefits:
1. Creative integrity: standard guidelines followed;
2. Consistent messages: same message from any source;
3. Unbiased marketing recommendations: all aspects
considered in decision-making;
4. Better use of media: more balance, better coverage;
5. Greater marketing precision: fewer errors;
6. Operational efficiency: more streamlined processes;
7. Cost savings: less wastage/ duplication of effort;
8. High-caliber consistent services: quality performance;
9. Easier working relationships: greater cooperation;
10. Greater agency accountability: more control, better
evaluation of campaigns/ expenditure.
Role of Ad Agencies in promoting IMC
Most agencies acknowledge the importance of IMC, but few are
willing to invest in the tools required:
 UK Hobbs Marketing, Charles Grant-Salmon: “We
recognised seven years ago the need to integrate the service
with other areas of the cycle, to enable us to offer a more
total solution, to enable our customers to have tighter control
and a better and more complete return on their investment.”
 BMP DDB Chairman, Chris Powell: “It’s hard enough to do
a traditional campaign. We haven’t got good enough at
developing integrated campaigns..” (Marketing Week,
2002c).
 Bozell UK Group Chairman: “Advertising agencies should
stick to their core business”.
Factors encouraging growth of IMC
 Lack of real growth in advertising expenditure worldwide –
exception China. In the UK growth has been slow, but faster
than global growth;
 Substitution of advertising professionals in ad agencies:
agencies encouraged to hire people with broader skill-sets;
 New promotional agencies set up in competition to ad
agencies: e.g. agencies specializing in new/ digital media
emerging;
 Growth in media independents: more specialized service
offerings;
 Clients engaging consultants for strategic advice and
planning: consultants creating new broad-based strategies;
Factors encouraging growth of IMC
 Perceived financial advantage of IMC: self-explanatory;
 Growth in international communication: as companies
transcend geographical boundaries, need for greater
specialization and standardization in communication was
imminent;
 Spread of Relationship Marketing concept & recognition of
internal audiences: Need to earn loyalties and support from
a more varied stakeholders community required greater
skills for creating and disseminating communication;
 Technological advances: Spread of database marketing and
the internet allows for data and its transfer to be
manipulated in ways hitherto unknown.
Barriers to growth of IMC
 Negative mind-set: years of reliance on a system puts
people in comfort zone;
 Lack of conceptual clarity: inability to understand the finer
points of the IMC mix;
 Organizational structure: Vertical organizations encourage
people to work in ‘functional silos’ and inhibit cross-sell of
idea;
 Cost and budgets: The perception that IMC requires bigger
budgets and scale;
 Dimensions of integration: IMC requires integration
beyond the elements of IMC mix. It requires cross-
functional integration and team-work.
END OF INTRO TO IMC