An Introduction to Integrated

Marketing Communications
 Definition of Integrated
Marketing Communications

A 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.
 Integrated Marketing Communications

A marketing communications planning concept

that recognizes the value of a comprehensive
plan.
A plan that evaluates the strategic roles of
several communications disciplines:
Media advertising
Direct marketing
Interactive/internet marketing
Sales promotion
Publicity/Public relations
Combines the disciplines to provide:
Clarity
Consistency
Maximum communications impact
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
 Communication-Based Marketing Mo

Other Stakeholders
Corporate Level Message Sources Employees
Administration Manufacturing/ Marketing Finance Human Investors
Legal Financial Community
Operations Resources Government
Cross-Functional Brand Equity (IM) Team Regulators

Marketing Level Message Sources Distributors

Interactivity Customers Suppliers
Product Price Marketing Distribution Competition
Mix Mix Communication Mix
Consumers
Cross-Functional IMC Team Local Community
Media
Marketing Communication Level Message Sources Interest Groups
Personal Adver- Sales Direct Public Pack- Events
Sales tising Promotion Marketing Relations aging
 Communication Levels

Corporate Level
Messages sent by a companys overall business practices
and philosophies such as mission, labor practices,
philanthropies, culture and other processes
Marketing Level
Messages sent by or inferred from by various aspects of
marketing mix such as product performance, design,
appearance, pricing and distribution
Marketing Communication Level
Strategic and executional consistency among all forms of
marketing communication
Reasons For Growing Importance of IMC

Shift from media advertising to other forms of

marketing communication
Movement away from advertising focused-
approaches that emphasize mass media
Shift in power from manufacturers to retailers
Rapid growth of database marketing
Demands for greater ad agency accountability
Changes in agency compensation
Rapid growth of the Internet
Increasing importance of branding
Coca-Cola is the worlds most valuable brand
 IMC Communication Tools

IMC Communication Tools

Direct Interactive/
Advertising Marketing Internet Marketing

Sales Publicity/Public Personal

Promotion Relations Selling
 Advertising
Any
Anypaid
paidform
formof
of nonpersonal
nonpersonalcommunication
communication
about
aboutananorganization,
organization, product,
product, service,
service,idea
idea
or
or cause
causebybyan
anidentified
identifiedsponsor.
sponsor.

Advantages of advertising Disadvantages of advertising

Advertiser controls the High costs of producing
message and running ads
Cost effective way to
communicate with large Credibility problems and
audiences consumer skepticism
Effective way to create Clutter
brand images and
symbolic appeals Difficulty in determining
Often can be effective effectiveness
way to strike responsive
chord with consumers
Classifications of Advertising

Advertising to
Advertising to Consumer
Consumer Markets
Markets
National advertising
National advertising
Retail/local advertising
Retail/local advertising
Advertising to
Advertising to increase
increase demand
demand
Primary
Primary demand
demand forfor the
the product
product category
category
Selective
Selective demand
demand for
for aa specific
specific brand
brand

Business &
Business & professional
professional advertising
advertising
Business-to-business advertising
Business-to-business advertising
Professional advertising
Professional advertising
Trade advertising
Trade advertising
Is the ad primary or selective?
Are the ads primary or selective?
National Ad or Local?
An example of a business-to-business ad

Source: Courtesy Honeywell.

 Direct Marketing
AAsystem
systemofofmarketing
marketingby bywhich
which
organizations
organizationscommunicate
communicatedirectly
directly with
with
target
targetcustomers
customerstotogenerate
generateaa
response
responseand/or
and/or aatransaction.
transaction.

Advantages of direct marketing Disadvantages of direct marketing

Changes in society have made Lack of customer receptivity and
consumers more receptive to very low response rates
direct-marketing
Clutter (too many messages)
Allows marketers to be very
selective and target specific Image problems particularly with
segments of customers telemarketing
Messages can be customized for
specific customers.
Effectiveness easier to measure
Direct Marketing

Direct marketing methods

Direct mail
Catalogs
Telemarketing
Direct response ads
Direct selling
Internet
 Interactive/Internet Marketing
AAform
formof
ofmarketing
marketingcommunication
communicationthrough
throughinteractive
interactivemedia
media
which
whichallow
allowforforaatwo-way
two-wayflow
flowofofinformation
informationwhereby
wherebyusers
users
can
canparticipate
participateininand
andmodify
modifythe
thecontent
contentof
ofthe
theinformation
informationthey
they
receive
receiveininreal
realtime.
time.

Advantages of interactive/ Disadvantages of interactive/

internet marketing internet marketing
Can be used for a variety of IMC Internet is not yet a mass medium
as many consumers lack access
functions
Attention to Internet ads is very
Messages can be tailored to low
specific interests and needs of Great deal of clutter on the
customers Internet
Interactive nature of the Internet Audience measurement is a
leads to higher level of problem on the Internet
involvement
Can provide large amounts of
information to customers.
 Interactive/Internet Marketing

Use of the Internet as an IMC Tool

As an advertising medium to inform, educate
and persuade customers
As a direct sales tool
To obtain customer database information
To communicate and interact with buyers
To provide customer service and support
To build and maintain customer relationships
As a tool for implementing sales promotion
As a tool for implementing publicity/public
relations programs
The Internet is an important IMC tool for
American Airlines

Source: Courtesy American Airlines.

 Sales Promotion
Marketing
Marketingactivities
activitiesthat
thatprovide
provideextra
extra
value
valueoror incentives
incentivestotothe
thesales
salesforce,
force,
distributors,
distributors,ororultimate
ultimateconsumers
consumersand and
can
canstimulate
stimulateimmediate
immediatesales.
sales.

Consumer-oriented Trade-oriented
Targeted to the ultimate Targeted toward marketing
users of a product or intermediaries such as
retailers, wholesalers, or
service distributors
Coupons
Promotion allowances
Sampling
Merchandise allowances
Premiums
Price deals
Rebates
Sales contests
Contests
Trade shows
Sweepstakes
POP materials
Sales Promotion Uses

Introduce new products

Get existing customers to buy more
Attract new customers
Combat competition
Maintain sales in off season
Increase retail inventories
Tie in advertising & personal selling
Enhance personal selling efforts
Publicity

Non-personal
Non- personalcommunication
communicationregarding
regardingan an
organization, product,
organization, product, service,
service, or
or idea
idea not
not
directlypaid
directly paid for
for or
or run
rununder
underidentified
identified
sponsorship.
sponsorship.

Advantages of publicity
Credibility
Low cost (although not totally free)
Often results in word-of-mouth
Disadvantages of publicity
Not always under control of organization
Can be negative
Publicity Vehicles

News 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.
Advertising Versus Publicity

FACTOR ADVERTISING PUBLICITY

Control Great Little
Credibility Lower Higher
Reach Achievable Undetermined
Frequency Schedulable Undetermined
Cost Specific Unspecified/low
Flexibility High Low
Timing Specifiable Tentative
Public Relations

Themanagement
The management function
functionwhich
whichevaluates
evaluatespublic
public
attitudes, identifies
attitudes, identifiesthe
thepolicies
policiesand
andprocedures
proceduresofof
anindividual
an individualor
or organization
organizationwith
withthe
thepublic
publicinterest,
interest,
andexecutes
and executesaaprogram
programof of action
actiontotoearn
earnpublic
public
understandingand
understanding andacceptance.
acceptance.

Tools used by Public Relations

Publicity
Special publications
Community activity participation
Fund-raising
Special event sponsorship
Public affairs activities
 Personal Selling
Direct
Directperson-to-person
person-to-personcommunication
communication
whereby
wherebyaaseller
seller attempts
attemptstotoassist
assist
and/or
and/orpersuade
persuadeperspective
perspectivebuyers
buyersto
to
to
topurchase
purchase aaproduct
product or
or service.
service.
Advantages of personal selling Disadvantages of personal selling
Direct contact between buyer High costs per contact
and seller allows for more
flexibility Expensive way to reach large
Can tailor sales message to audiences
specific needs of customers Difficult to have consistent and
Allows for more direct and uniform message delivered to
immediate feedback
all customers
Sales efforts can be targeted
to specific markets and
customers who are best
prospects.
Promotional Management

Coordinating
Coordinatingthe
thepromotional
promotionalmixmix
elements
elements to
todevelop
developaa controlled,
controlled,
integrated
integrated program
programofofeffective
effective
marketing
marketingcommunications.
communications.

Considerations for developing the

promotional program include:
Type of product
Buyers decision process
Stage of product life cycle
Channels of distribution
 Integrated Marketing Communications
Planning Model
Review of Marketing Plan

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Sales PR/ Personal Direct Internet/

Advertising
Promotion Publicity Selling Marketing Interactive

Advertising Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Objectives Objectives Objectives Objectives Objectives Objectives

Message Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Strategy Strategy Strategy Strategy Strategy Strategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

The Marketing Plan

A document that describes the overall

marketing strategy and programs
developed for a company, product or
brand. The plan includes:
1. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program that includes
selection of a target market and plans for
marketing mix elements
4. A program for implementing the strategy
5. A process for monitoring and evaluating
performance
Situation Analysis

Internal Factors
Assessment of the firms promotional
organization and capabilities
Review of the firms previous
promotional programs
Assessment of firm or brand image
and implications for promotion
Assessment of relative strengths and
weaknesses of product/service
External Factors
Customer analysis
Competitive analysis
Environmental analysis
IMC Program Situation Analysis
External Factors

Environmental analysis
Technological Political/Legal
Demographic Socio/Cultural
Economic
Competitive Analysis
Direct and indirect competitors
Position relative to competitors
Size of competitors advertising/
promotional budgets
IMC strategies being used by competitors
IMC Program Situation Analysis
External Factors

Customer Analysis
Who buys our product or service?
Who initiates and makes the decision
to purchase and who influences the process?
How is the purchase decision made?
What attributes or criteria are important to
customers?
What are customers perceptions of and attitudes
toward our company, product/service or brands?
What factors influence the decision making process?
Contact points where customers can be reached?
Analysis of Communications Process

Analyze response process of customers

in the target audience.

Analyze best combination of source,

message and channel factors for
communicating with target audience.

Establish communication goals and objectives.

Potential Communications Objectives

Sales
Customer loyalty
Company image
Brand image
Store patronage An inquiry
Service contract A visit by a prospect
Product trial
Recommendation
Adoption of the product
The objectives of this ad include image
building and encouraging inquiries
Potential Communications Objectives

Individual sales
Customer loyalty
Company image
Brand image
Store patronage An inquiry
Service contract A visit by the prospect
Product trial
Prescription for use
Recommendation
Adoption of the product
 Contact Points Where Customers
Can Be Effectively Reached

Mass media Events/sponsorships

Broadcast - radio/TV Local
Newspapers Regional
Magazines National/international
Direct Marketing Sales Promotions
Internet/interactive In-store/POP
Brochures, sales Product placements in movies
literature and television shows
Publicity/PR Promotional products
Develop Integrated Marketing
Communications Program

Advertising
Determine objectives and budget
Message development
Called Creative Strategy
Determine basic appeal
Determine main message
Media strategy
Communication channels
Type of media . . .
Newspapers/Magazines
Radio/Television
Outdoor/Specialty
Select specific media
Specific papers, magazines, TV
programs, radio stations, billboards, or
other media
Integrate and Implement Marketing
Communications Strategies

Integrate promotional mix strategies.

Create and produce ads.
Purchase media time and space
Design and implement direct marketing
programs
Design and implement sales promotion
program
Design and implement public relations/
publicity programs
Design and implement interactive/
internet marketing programs
Monitor, Evaluate and Control Integrated Marketing
Communications Program

Evaluate promotional program results

and determine effectiveness

Take actions to control and adjust

promotional programs