An Introduction to

Integrated Marketing
Communications (IMC)

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Chapter plan

1. What is IMC?
2. Reasons for the growing importance of IMC
3. IMC and branding
4. The promotional mix: The tools of IMC
4. IMC planning process

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Historical facts
In USA in 1980 Promotional expenditure = $100 billion ($53b
Advertising and $49b on Sales Promotion)
In 2016 total marketing communications expenditures in the
United States were estimated to be nearly $571 billion,

$127 billion being spent on traditional media advertising

(television, radio, magazines, newspapers outdoor, cinema),

$68 billion going to digital/online advertising,

$51 billion going to direct mail and other forms of direct

marketing such as e-mail marketing,

$25 billion spent on sponsorships and experiential/event

marketing,

and the remaining $300 billion being spent on consumer and

trade promotion. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Historical facts
In USA in 1980 Promotional expenditure = $100 billion ($53b
Advertising and $49b on Sales Promotion)
In 2016 total marketing communications expenditures in the
United States were estimated to be nearly $571 billion,

$127 billion being spent on traditional media advertising

(television, radio, magazines, newspapers outdoor, cinema),

$68 billion going to digital/online advertising,

$51 billion going to direct mail and other forms of direct

marketing such as e-mail marketing,

$25 billion spent on sponsorships and experiential/event

marketing,

and the remaining $300 billion being spent on consumer and

trade promotion. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 1. What is IMC?

Coordinating the various promotional

elements to effectively communicate
with target audiences

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 1. What is IMC?

• Terms such as new advertising, orchestration, and seamless

communication were used to describe the concept of
integration.
• A task force from the American Association of Advertising
Agencies (the “4As”) developed one of the first definitions 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—for example, general advertising,
direct response, sales promotion, and public
relations—and combines these disciplines to
provide clarity, consistency, and maximum
communications impact”
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Traditional Approach to Marketing
Communications

Sales
Publicity promotion
Point of
purchase

Media Packaging
Special Adver-
events tising Direct
response
Public
relations
Interactive
Direct marketing
marketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 2. Reasons for the Growing
Importance of IMC
From Toward
Media
Media advertising
advertising Multiple
Multiple forms
forms of
of communication
communication

Mass
Mass media
media Specialized
Specialized media
media

Manufacturer
Manufacturer dominance
dominance Retailer
Retailer dominance
dominance

General
General focus
focus Data-based
Data-based marketing
marketing

Low
Low agency
agency accountability
accountability Greater
Greater agency
agency accountability
accountability

Traditional
Traditional compensation
compensation Performance-based
Performance-based compensation
compensation

Limited
Limited Internet
Internet availability
availability Widespread
Widespread Internet
Internet availability
availability

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 3. IMC and Branding

2005 Brand Value

Brand
Brand Identity
Identity is
is aa (Billions of Dollars)
combination
combination of of factors:
factors:
Name,
Name, logo,
logo, symbols,
symbols, 1. Coca-Cola
design,
design, packaging,
packaging, $67.52
product
product or
or service
service 2. Microsoft
performance,
performance, andand image
image $59.94
or
or associations
associations inin the
the 3. IBM
consumer’s
consumer’s mind.
mind.
$53.38
IMC
IMC plays
plays aa major
major role
role 4. GE
in
in the
the process
process of
of $46.99
developing
developing andand
sustaining 5. Intel
sustaining brand
brand
identity
identity and
and equity.
equity. $35.59
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 6. Nokia
4. The promotional mix: The tools of IMC

4.1.
4.1. Advertising
Advertising

4.2.
4.2. Direct
Direct Marketing
Marketing

4.3.
4.3. Internet
Internet Marketing
Marketing

4.4.
4.4. Sales
Sales Promotion
Promotion

4.5.
4.5. Public
Public Relations
Relations

4.6.
4.6. Personal
Personal Selling
Selling
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
4.1. Advertising

Paid
Paid

Non-personal
Non-personal

Cost
Cost effective
effective

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Classifications of Advertising

National
National Advertising
Advertising

Retail/Local
Retail/Local Advertising
Advertising

Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising
Consumers

Business-to-Business
Business-to-Business Advertising
Advertising

Professional
Professional Advertising
Advertising

Trade
Trade Advertising
Advertising
Organizations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.2. Direct Marketing

Direct
Direct
Mail
Mail
Direct
Direct
Internet
Internet Response
Response
Sales
Sales Advertising
Advertising
Direct
Direct
Marketing
Marketing
Shopping
Shopping Telemarketing
Telemarketing
Channels
Channels

Catalogs
Catalogs

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 4.3. Internet marketing

The
The
Internet
Internet

Educates
Educates oror AA persuasive
persuasive AA sales
sales tool
tool
informs
informs advertising
advertising or
or an
an actual
actual
customers
customers medium
medium sales
sales vehicle
vehicle

Obtains
Obtains Provides
Provides Builds
Builds and
and
Communicates
Communicates
customer
customer customer
customer maintains
maintains
database
and
and interacts
interacts service
database with service and
and customer
customer
information
information with buyers
buyers support
support relationships
relationships
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.4. Sales Promotion Tools

Coupons
Samples Trade
Allowances
Premiums
POP Displays
Contests/Sweepstakes
Training
Refunds/Rebates Programs
Bonus Packs Trade
Shows
Loyalty Programs
Coop
Events Advertising

• Consumer- • Trade-
oriented oriented
• [For end-users] • [For resellers]
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.5. Public Relations Tools

Publicity Special
Vehicles Publications

Community Corporate Cause-related

Activities Advertising
Advertising Marketing

Public Affairs Special Event

Activities Sponsorship

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Publicity Vehicles

Feature
Feature
Articles
Articles

News
News Interviews
Interviews
Interviews
Releases
Releases Publicity
Publicity
Vehicles
Vehicles

Press
Press Special
Special
Conferences
Conferences Events
Events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Advertising Versus Publicity

Factor
Factor Advertising
Advertising Publicity
Publicity
Control
Control Great
Great Little
Little
Credibility
Credibility Lower
Lower Higher
Higher
Reach
Reach Measurable
Measurable Undetermined
Undetermined
Frequency
Frequency Schedulable
Schedulable Uncontrollable
Uncontrollable
Cost
Cost High/Specific
High/Specific Low/Unspecified
Low/Unspecified

Flexibility
Flexibility High
High Low
Low
Timing
Timing Specifiable
Specifiable Tentative
Tentative
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Personal Selling

• Person-to-person communication
– A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
 4.6. Personal selling

Face-to-face
Face-to-face communication
communication

Mostly
Mostly used
used for
for business
business customers
customers

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC INVOLVES AUDIENCE CONTACTS

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC INVOLVES AUDIENCE CONTACTS

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC INVOLVES AUDIENCE CONTACTS

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC INVOLVES AUDIENCE CONTACTS

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC INVOLVES AUDIENCE CONTACTS

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Paid, Owned, and Earned Media

Paid
Paid
Paid
Paid media
media refers
refers to
to channels
channels aa marketer
marketer pays
pays to
to leverage
leverage and
and includes
includes traditional
traditional
advertising
advertising media such as television, radio, print, outdoor, and direct mail as
media such as television, radio, print, outdoor, and direct mail as well
well as
as
various forms of digital advertising such as paid search and online display and
various forms of digital advertising such as paid search and online display and video video
ads.
ads.

Owned
Owned Media
Media
Owned
Owned media
media refers
refers to
to channels
channels of
of marketing
marketing communication
communication that
that aa company
company
controls,
controls, such as its websites, blogs, and mobile apps as well as social
such as its websites, blogs, and mobile apps as well as social media
media

channel
channel such
such as
as Facebook,
Facebook, Twitter,
Twitter, Instagram,
Instagram, and
and YouTube
YouTube ..
Earned
Earned Media
Media
Earned
Earned media
media isis exposure
exposure for
for aa company
company oror brand
brand that
that it
it did
did not
not have
have to
to pay
pay for
for and
and
is generated by outside entities such as the media or the general
is generated by outside entities such as the media or the general public. Earned public. Earned
media
media has
has traditionally
traditionally
been
been viewed as
viewed as exposure
exposure for
for aa company
company or
or brand
brand generated
generated by by its
its public
public relations/
relations/
publicity efforts or through favorable word of mouth.
publicity efforts or through favorable word of mouth.
Due
Due to
to digital
digital platform
platform now
now it it extended
extended to to Online
Online media
media likelike Social
Social Media
Media viral
viral
marketing
marketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Paid, Owned, and Earned Media

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 5. IMC 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

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5. IMC Planning Model

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin