An Introduction to

Integrated Marketing
Communications

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Google Reshape the Advertising world
 Mission: “ Organize the world’s
information and make it
Universally accessible and
useful.”
 In 1998, it is founded by Sergy
Brin and Larry Page , graduate
student of Stanford University,
USA.
 In 2000 – Google launched a
key-word targeted advertising
Program called “Adwords”.
 “ Its google world , we just live in
it.” – Business week article.

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 The Growth of Advertising and Promotion

Expenditure in Billions of Dollars

U.S. Advertising

U.S. Sales 2002

Promotion 1980
Advertising
Outside U.S.

$0 $50 $100 $150 $200 $250 $300

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IMC Principles Extend Worldwide

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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MARKETING
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.
Approved October 2007
(AMA, www.marketingpower.com)

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Exchange -----
 Exchange is the central concept of
marketing.
Different features of exchange –
(a) there must be two or more
parties
(b) Something (goods or services)
of value each other
(c) desire and ability to give up
something to the other
party and a way to
communicate each other.

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Marketing Focuses on Relationships
and Value
 Value : Benefit package we offer to customer.
Or, the customer perceived benefit in against
cost.
Benefits can be –
(1) Functional (the performance of the product)
(2) Experiential (what feels like to use the product),
(3) Psychological (feelings such as self esteem or
status that result from owning a particular brand)

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 Relationship marketing
 Relationship marketing which involves creating,
maintaining, and enhancing long-term relationships
with individual customers as well as other
stakeholders for benefit.
 Movement toward Relationship Marketing is due to
several factors:
- Customer have become much more demanding ,
- They want personalized offering / Mass
customization,
- Most cost effective to retain customers than to
acquire new ones.
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COMMUNICATION
1. an act or instance of transmitting;
2. a verbal or written message;
3. a process by which information is exchanged
between individuals through a common system of
symbols, signs, or behavior; also : exchange of
information;
4. a system (as of telephones) for communicating: a
system of routes for moving troops, supplies, and
vehicles;
5. a technique for expressing ideas effectively (as in
speech); the technology of the transmission of
information (as by print or telecommunication)
(Meriam-Webster dictionary, www.m-w.com)
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MARKETING COMMUNICATIONS

A process by which product information is

transmitted to the target audience

PRODUCT

INFORMATION

TARGET AUDIENCE
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MARKETING MIX
PRODUCT PLACE
Product characteristics, options, Different types of distribution channels,
assortment, brand name, density of the distribution system, trade
packaging, quantity, factory relation mix (policy of margins, terms of
guarantee delivery, etc), merchandising advice

PRICE PROMOTION
List price, usual terms of
payment, usual discounts, terms
Advertising
of credit, long-term saving Sales promotion
campaigns
Personal selling
PR

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Integrated Marketing communication
 The Evolution of IMC:
- During 1980s, many companies began taking a broader
perspectives of Marketing communication.

 4 As (American Association of Advertising Agencies)

developed one of the first definitions of IMC:
“ a concept of marketing communications planning that
recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communications
disciplines –for example, general advertising , direct response,
sales promotion, and public relations- and combines these
disciplines to provide clarity , consistency, and maximum
communications impact.”

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Integrated Marketing communication
 A contemporary Perspectives of IMC:
- As marketers become more sophisticated and develop a better
understanding of IMC , So they want – “ one look , one voice
approach.”
 Contemporary definition of IMC:
“ IMC is a strategic business process used to plan, develop,
execute and evaluate coordinated , measurable, persuasive
brand communications programs over time with consumers,
customers, prospects, employees, associates and other targeted
relevant external and internal audiences. The goal is to generate
both short-term financial returns and build long-term brand and
shareholder value,” (Don SCHULTZ).

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 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
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 Contemporary IMC Approach

Sales Direct
Packaging
Promotion Response

Media
Point of Adver-
Purchase
tising Public
Relations
Publicity

Interactive
Marketing Direct
Special
Marketing
Events

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 Marketing Revolution and Shifting Tides

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
Data Based
Based Marketing
Marketing

Low
Low Agency
Agency Accountability
Accountability Greater
Greater Agency
Agency Accountability
Accountability

Traditional
Traditional Compensation
Compensation Performance
Performance Based
Based Compensation
Compensation
Compensation
Compensation

Limited
Limited Internet
Internet Availability
Availability Widespread
Widespread Internet
Internet Availability
Availability
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Marketing revolution in different ways…

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 IMC and Branding

2003 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 $70.5
design,
design, packaging,
packaging, 2. Microsoft $65.1
product
product or
or service
service 3. IBM $51.8
performance,
performance, andand image
image 4. GE $42.3
or
or associations
associations inin the
the 5. Intel $31.1
consumer’s
consumer’s mind.
mind.
6. Nokia $29.4
IMC
IMC plays
plays aa major
major role
role 7. Disney $28.0
in
in the
the process
process of
of 8. McDonald’s $24.7
developing
developing andand
sustaining 9. Marlboro $22.2
sustaining brand
brand
identity
identity and
and equity.
equity. 10. Mercedes $21.4
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The world’s top 10 most valuable brands

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Basic Elements of the Promotional Mix

Advertising
Advertising

Direct
Direct Marketing
Marketing

Interactive/
Interactive/
Internet
Internet Marketing
Marketing

Sales
Sales Promotion
Promotion

Publicity/Public
Publicity/Public
Relations
Relations

Personal
Personal Selling
Selling
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Advertising ….
 Advertising defined as any paid form of non
personal communication about an
organization, product, service, or idea by an
identified sponsor.
 Nonpersonal means that advertising involves
media (e.g., TV, Radio, magazines,
newspapers) that can transmit a message to
large groups of individuals, often at the same
time. This nature indicates, there is no
opportunity for immediate feedback from
recipient.
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 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
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Classifications of ADVERTISNG
 National ad: Ad done by large company on a
nation wide basis or most region of the
country.
 Retail/Local: Ad done by retailers of Local
merchant to encourage to shop at a specific
store.
 Primary Vs Selective – Demand ad: Primary
ad is designed to stimulate demand for the
general product class or entire industry.
Selective demand ad focuses on creating
demand for a specific company’s brand.
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An Example of “B-to-B” Advertising

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 Direct Marketing is Part of IMC

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

Cataloging
Catalogs
Cataloging
Catalogs
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Dell Uses Direct Response Advertising

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 Interactive/ Internet marketing
 Over the past decade we have been
experiencing the most dynamic and revolutionary
changes of any era in the history of marketing.
 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 receive in real time.
 Examples : Internet based transactions, CD-
ROMs, Kiosks, Interactive Television, and Digital
cell phone.
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 Using the Internet as an IMC Tool

The
The
Internet
Internet

Educates
Educates or
or 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
and
and Interacts
Interacts
Database
Database Service
Service and
and Customer
Customer
With
With Buyers
Buyers
Information
Information Support
Support Relationships
Relationships
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American Airlines Encourages
Customers to Do It All Online

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + 29

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] 30
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 Scratch card
 It is one kind of
sales promotion of
tools which
enhances the
immediate sales.
 Sometimes it is
treated as direct
marketing tools.

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 Various Uses of Sales Promotion

Introduce Get
Get Existing
Existing
Introduce New
New Customers
Customers toto
Products
Products Buy More
Buy More

Combat
Combat Attract
Attract New
New
Competition
Competition Customers
Customers
Sales
Sales
Promotion
Promotion
Enhance
Enhance Maintain
Maintain Sales
Sales In
In
Personal
Personal Selling
Selling Off
Off Season
Season

Tie
Tie In
In Increase
Increase Retail
Retail
Advertising
Advertising & &
Personal Inventories
Inventories
Personal Selling
Selling
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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
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 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
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 Public Relations
 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 .
 PR objectives is to establish and maintain a
positive image of the company among its
various publics.

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 Public Relations Tools

Publicity Special
Vehicles Publications

Community Corporate Cause-related

Activities Advertising
Advertising Marketing

Public Affairs Special Event

Activities Sponsorship
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DuPont Uses Advertising to Enhance
Its Corporate Image

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 Personal Selling
 Personal selling involves selling through a
person-to-person communications in which a
seller attempts to assist and/or persuade
prospective buyers to purchase the
company’s product or service or act on an
idea .

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 IMC–Audience Contact Points

Point
Point of
of Public
Public
Publicity
Publicity Packaging
Packaging
Purchase
Purchase Relations
Relations

Internet/
Internet/ Direct
Direct
Interactive
Interactive
Media Marketing Response
Response
Media Marketing
Communications
Communications
Audience
Audience Sales
Sales
Direct
Direct Mail
Mail Promotion
Promotion

Broadcast
Broadcast
Print
Print Media
Media Outdoor
Outdoor Events
Events
Media
Media
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 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 40
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 The Marketing Plan

1.
1. A
A detailed
detailed situation
situation analysis
analysis

2.
2. Specific
Specific marketing
marketing objectives
objectives

3.
3. A
A marketing
marketing strategy
strategy and
and program
program

4.
4. A
A program
program for
for implementing
implementing the
the strategy
strategy

5.
5. A
A process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance
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