Fundamentals of IMC

FUNDAMENTALS OF AN
INTEGRATED MARKETING COMMUNICATION PLAN

This document is intended to provide a general guide to students in Bus 134B, Integrated Marketing
Communications, as they develop their semester project. Hopefully, this will provide an additional
comfort zone to students, enabling a clearer understanding and a faster start with the project.
References to page numbers and figures whose content is incorporated here refer to Chapter 4, The
IMC Planning Process, of Integrated Advertising, Promotion, and Marketing Communications, Clow &
Baack, 5th Edition, Prentice Hall, 2011.
Integrated Marketing Communications (IMC) is the term used to describe the entire program by
which you communicate with your customers. The face, personality and spirit of your company and
products (all marketing mix variables) should blend together to present a unified message.
Note that an IMC plan is NOT a marketing plan. An IMC plan is the portion of the marketing plan
that involves all promotional aspects of the marketing plan. All communications with customers,
including but not limited to
personal selling
consumer sales promotions
trade (channel) promotions
advertising
public relations
corporate as well as product positioning
customer service experiences

are included in a complete IMC plan. Each of these different communication types must be aligned
with and in support of each other and the overall positioning (Value Image) of company.
To develop a feeling of how this works, you may want to read the Lead-in Vignette from Chapter 4,
PetsMart: Its a Dogs Life (which aint half bad), page 80, and then ask yourself these questions:
1.
Can you identify pet owner market segments? What types of pet owner groups are
present?
2.
How is the PetsMart company viewed in relation to its competition?
3.
Do you think pet owners will cut back or spend less money on pets when economic times
are more difficult? Why or why not?
The IMC Planning Context (p. 82)
In developing an integrated marketing communications plan, the first step requires an analysis of the
three Cscustomers, competitors, and communications.
Customers
When conducting an analysis of customers for the purposes of IMC planning, the marketing
department examines:
Current customers
Former customers
Potential new customers
Competitors customers
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Bus 134B Integrated Marketing Communications
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Competitors
Who are they? Make a list. After listing the competing firms, an analysis of the competition can
be conducted using primary research, including store visits, talking to suppliers, and other
salespeople. Next is gathering secondary data. The first items to look at are statements
competitors make about themselves, which are found in advertisements, promotional materials,
annual reports, web sites, and so on. Be sure to include what other people say about the
competition. Marketers often read trade journals. The library might yield additional news
articles and press releases about competitor activities.
Communications
This includes the firms current communications, at all levels and in all channels. Messages to
current and potential customers, employees, and channel members are studied in order to find
out what is working and what is not.
Market Segments
a set of businesses or group of individual consumers with distinct characteristics.
The market segment differs from the population as a whole. Segments are distinct from other
segments and the general population.
Market segmentation methods: (almost an endless list!)
Consumer Groups - examples shown in Figure 4.2
Psychographics
Generations - Table 4.1 - characteristics of various generational segments.
Geographic Area
Geodemographics
Benefits
Usage
Business-to-Business Segmentation examples are shjown in Figure 4.5.
Industry - NAICS codes.
Size
Location
good or service is used - such as financial, transportation, shipping, etc.
Customer Value
Product Positioning
Positioning is between your customers ears. the perception created in the consumers
mind regarding the nature of a company and its products relative to the competition.
Two elements:
(1) How the product is perceived by customers and
(2) the products standing relative to the competition.
Approaches to Positioning - Figure 4.6
Positioning that involves creating a memorable set of uses for a product emphasizes the use or
application approach
Positioning is a critical part of image and brand-name management. Consumers have an
extensive set of purchasing options and can try products with specific advantages or attributes.
Effective positioning, by whatever method chosen, should increase sales and strengthen the
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long-term position of an individual product and the total organization.

Marketing Communication Objectives
Marketing objectives tend to be general because they are for an entire company. Some examples of
marketing objectives include:
Sales volume
Market share
Profits
Return on investment
Additional examples Figure 4.7
Establishing a Communications Budget
The final two steps in the IMC planning process include preparing a communications budget and
selecting the IMC components to be utilized (Figure 4.1).
Note that your IMC plan will have a budget for each market segment and a total corporate or
complete plan budget. Included must be a schedule showing the pace/seasonality of each
promotion method over a 12-month period for each segment and for the total budget expenditures..
Consider the following:
Threshold Effects
Diminishing Returns (Figure 4.8)
Carrryover Effects
Wear-Out Effects
Decay Effects
Random Events - Random events can disrupt any advertising or promotional campaign at
any time how will the competition react?.
Types of Budgets
Budgets are listed in Figure 4.10. Objective & Task is the primary method you should use.
However, you should also be familiar with the concepts of the following types:
Percentage of Sales Method
Meet-the-Competition Method
What We Can Afford Method
How does all of this fit into an IMC plan?
The foundation of the IMC plan includes:
Corporate image and brand management
Analysis of buyer behaviors
Promotions opportunity analysis to identify all target markets of the communications program
Advertising tools
Advertising management, advertising design, (theme, framework)

Media tools:
Traditional media channels
E-active marketing
Alternative marketing programs

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Promotional tools include:
Database and direct response marketing programs
Consumer and trade promotions
Public relations
The extent to which each of these elements appears in any particular IMC plan is dependent of the
business/product and the target markets. There isnt any one type of IMC plan. A local business will
not likely use national TV but is much more likely to make greater use of guerilla marketing
techniques. Additionally, the written plan will seldom be assembled in the same order that the plan
was developed. Another way to state this is that what is logical for a plan of work is not always
logical for the written report.
The following generic outline includes all probable elements of an IMC plan, and shows
the development for more than one target market. Your plan may not contain all of these
elements.
Executive Summary
An executive summary is analogous to the insert that come with a new music CD. The insert
briefly describes the contents of the CD and provides the listener a way to find any particular
piece of music on the CD. Similarly, the Executive Summary provides a brief statement of the
problems/opportunities
results of market research
alternatives discussed
recommendations
measurement metrics
Table of Contents
This follows the summary, providing a directory of the plan so that a reader can immediately
go to a particular page of interest.
Promotion Opportunity Analysis
The Promotion Opportunity Analysis is term used to describe the process used to identify target
markets and the communications strategies needed to reach those markets. It can consist of
the following elements (many of which have been described above):
Communications Market Analysis
This is the point where the organizations communications strengths and
weaknesses are analyzed. Included are
Competitive Analysis
Opportunity Analysis
What is there that the competition has overlooked or chosen not to pursue?
Target Market Analysis
Including Customer Analysis, this includes a description of segmentation
variables
Market Positioning Analysis
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Corporate Strategies
Corporate Image Strategy
Brand Development Strategy
Brand Positioning Strategy
Channel/Distribution Strategy
Business-to-Business Strategy
Public Relations Strategy
Evaluation
IMC Management
Completion of corporate strategies leads to the development of objectives and the budget at
the corporate level. Note that this budget cannot be developed until the budget for each
channel/target market is developed.
IMC Objectives
IMC Budget
Agency Selection
Internet Web site
The above elements of the plan are at the corporate level. This includes corporate level strategy and
the combined elements of the IMC plan for each target market.
IMC Objective: Target Market 1 (example: a consumer market segment)
Budget
IMC Methodologies
Advertising
Adv Goals and Budget
Creative Brief
Advertising Design
Consumer Promotions
Budget Allocation
Consumer Promotion
Sample Consumer Promotions
Personal Selling/Alternative Marketing
Public Relations and Sponsorship Programs
Database Programs
Data Warehouse, Direct Marketing, Permission Marketing, Freq. Shopper
Program, etc.
Media Tools
Traditional Media Channels
E-active Marketing
Methods of Measurement and Evaluation
Items in the box above are repeated for each target market that is part of your plan.
2012 R. P. Vitale
Revised Nov 2013

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FUNDAMENTALS OF AN

INTEGRATED MARKETING COMMUNICATION PLAN

consumer sales promotions

trade (channel) promotions

corporate as well as product positioning

customer service experiences

Revised Nov 2013

Bus 134B Integrated Marketing Communications

Revised Nov 2013

Bus 134B Integrated Marketing Communications

long-term position of an individual product and the total organization.

Corporate image and brand management

Analysis of buyer behaviors

Advertising management, advertising design, (theme, framework)

Traditional media channels

Alternative marketing programs

Revised Nov 2013

Bus 134B Integrated Marketing Communications

Promotional tools include:

Database and direct response marketing programs

Consumer and trade promotions

results of market research

Revised Nov 2013

Bus 134B Integrated Marketing Communications

Revised Nov 2013

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