INTEGRATED MARKETING COMMUNICATIONS

Arijit Santikary
Asst.Prof.- SSIM
 Moving from Transactions to Relationships
In recent years, the marketplace has changed:
• Competition has increased
• Customers have become more distrustful of
businesses
• New communication and information
technologies have been developed
• Companies have discovered it’s more profitable
to sell to current customers than to new ones
• Organizations now need more effective and
efficient ways of communicating with
customers
IMC and the Marketing Umbrella

• IMC functions under marketing’s umbrella.

– Marketing is the process of creating and providing what
customers want in return for something they are willing to
give.
– The AMA defines marketing as the “process of planning
and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational needs.”
 What is Marketing?

Marketing Value
Value
Marketing is is an
an
organizational
organizational function
function
and
and aa set
set of
of processes
processes forfor Relationship
Relationship marketing
marketing
creating,
creating, communicating
communicating
and
and delivering
delivering value
value to
to
customers
customers andand for
for Mass
Mass customization
customization
managing
managing customer
customer
relationships
relationships in in ways
ways that
that
Customer
Customer relationship
relationship
benefit
benefit the
the organization.
organization.
management
management (CRM)
(CRM)

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

 IMC
IMC is
is like
like an
an
orchestra
orchestra

Musical
Musical score
score IMC
IMC plan
plan guides
guides
guides
guides all
all the
the all
all the
the members
members ofof
members
members of of the
the an
an organization
organization to
to
orchestra
orchestra to
to play
play work
work together
together
together
together
IMC Planning Starts at Zero

Zero-based planning:

• A process that determines

objectives and strategies
based on current brand
and marketplace
conditions
 IMC Helps Companies Build
Profitable Customer Relationships
• Focuses on customer relationships instead of transactions
• Uses customer databases to have more personal, two-way
communication with customers
• Utilizes a planning technique that lets each unique brand
situation determine the best mix of marketing communication
functions and media
• Provides a system for integrating the planning and monitoring of
brand-building activities
• Helps ensure that a brand has one voice, one look
• Takes advantage of new media and new communication and
information technologies
• Builds trust in a brand by creating an open, customer-focused
culture
 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

Defining IMC

IMC
IMC isis aa strategic
strategic business
business
process
process used
used to to plan,
plan, develop,
develop,
execute
execute and
and evaluate
evaluate coordinated,
coordinated,
measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programsprograms with
with
consumers,
consumers, customers,
customers, prospects
prospects
employees
employees and and other
other relevant
relevant
external
external and
and internal
internal audiences.
audiences.
The
The goal
goal of
of IMC
IMC isis to
to
generate
generate short-term
short-term
financial
financial returns
returns and
and build
build
long-term
long-term brand
brand value.
value.

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

Communication Drives
Relationships
• Communication is the foundation of all relationships,
including brand relationships.
• Commercial brand relationships are created and
terminated in a way similar to personal relationships.
• IMC focuses on maximizing positive messages and
minimizing negative messages about a brand in order to
create and sustain brand relationships.
• When used to build long-term relationships, IMC also
builds and strengthens the brand.
• The stronger a brand is, the more value it has.
 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

 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
6. Nokia
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Advertising
Any
Anypaid
paidform
form of
ofnonpersonal
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 message – High costs of producing and
– Cost effective way to running ads
communicate with  large
                                         
audiences – Credibility problems and
 
– Effective way to create brand consumer skepticism
images and symbolic appeals – Clutter
– Often can be effective way to – Difficulty in determining
strike responsive chord with
consumers effectiveness
Direct Marketing
AAsystem
systemof ofmarketing
marketingby bywhich
which
organizations
organizationscommunicate
communicatedirectly
directly
with
withtarget
targetcustomers
customersto togenerate
generateaa
response
responseand/or
and/oraatransaction.
transaction.

• Advantages of direct marketing • Disadvantages of direct marketing

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

• Disadvantages of interactive/
• Advantages of interactive/ internet
marketing • internet marketing
• Can be used for a variety of IMC – Internet is not yet a mass medium as
functions many consumers lack access
• Messages can be tailored to specific – Attention to Internet ads is very low
interests and needs of customers – Great deal of clutter on the Internet
• Interactive nature of the Internet leads to – Audience measurement is a problem on
higher level of involvement the Internet
• Can provide large amounts of information
to customers.
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 users – Targeted toward marketing
of a product or service intermediaries such as retailers,
wholesalers, or 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
Nonpersonalcommunication
Nonpersonal communication regarding
regarding anan
organization,product,
organization, product,service,
service, or
or idea
idea not
not
directlypaid
directly paidfor
foror
orrun
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.
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 ofaction
actionto
toearn
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
purchaseaaproduct
product or
or service.
service.
• Advantages of personal selling • Disadvantages of personal selling
– Direct contact between buyer and – High costs per contact
seller allows for more flexibility
– Can tailor sales message to specific – Expensive way to reach large
needs of customers audiences
– Allows for more direct and immediate – Difficult to have consistent and
feedback uniform message delivered to all
– Sales efforts can be targeted to
specific markets and customers who customers
are best prospects.
 IMC Audience Contact Tools

Broadcast
Broadcast Print
Print media
media Public
Public
(newspapers, Internet/
Internet/
media
media (newspapers, Relations/
Relations/ interactive
interactive
(TV/radio)
(TV/radio) magazines))
magazines publicity
publicity

Out-of-home
Out-of-home Direct
Direct
media
media marketing
marketing

Target
Target Audience
Audience
Personal
Personal Sales
Sales
selling
selling Promotion
Promotion

Point-of-
Point-of- Product
Product
purchase
purchase Word-of-
Word-of- Events
Events and
and placements
placements
(displays,
(displays, mouth
mouth sponsorship
sponsorship (TV
(TV and
and movies)
movies)
packaging)
packaging)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 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

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

Integrated Marketing Communications Planning Model

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

Example of a Company Targeting Upscale Women

+
 Organization is the Foundation of IMC

• Since there are so many partners involved in

managing brand relationships, integration is an
organizational challenge.
• IMC often involves organizational restructuring.
• A company cannot build relationships
externally until it builds them internally.
 Overview of the
Marketing Communication Business

• Basic players in today’s marketplace:

– Organizations
– Media
– Agencies

• This creates a “golden triangle,” where

customers are at the center of the planning.
The Golden Triangle
Turbulent Marketing Environment
Because of global 1. Use of advertising
competition and uncertain
2. accountability
market conditions,
3. Use of consumer
marketers face turbulent
promotions
conditions. This turbulence
4. Power of creatives
has resulted in marketers
5. Internal marketing
facing increased
 Turbulent Marketing Environment
Because of global 1. Use of advertising
competition and uncertain
2. accountability
market conditions,
3. Use of consumer
marketers face turbulent
promotions
conditions. This turbulence
4. Power of creatives
has resulted in marketers
5. Internal marketing
facing increased

Two trends have resulted from the competitive, turbulent

environment. The first is increased accountability, the
second is a change in the tasks being performed.
 Marketing Responsibilities
The individual who 1. Account executive
actually creates ads and 2. Brand manager
other marketing
3. Creative
material is called a(n)
4. Traffic manager
5. Artist
 Marketing Responsibilities
The individual who 1. Account executive
actually creates ads and 2. Brand manager
other marketing
3. Creative
material is called a(n)
4. Traffic manager
5. Artist

Creatives are the ones who design the ads. The account executive is
the representative from the agency to the client. The brand manager
works for the client and manages the brand.
 Communication
The most common form of 1. Feedback
noise in the marketing 2. Television ads
communication process is 3. The transmission device
4. Negative publicity
5. Clutter
 Communication
1. Feedback
The most common form of
noise in the marketing 2. Television ads
communication process is 3. The transmission device
4. Negative publicity
5. Clutter

Consumers are exposed to hundreds of marketing messages every day

because of the large number of messages conveyed through various media
such as television, magazines, and the Internet.
 Marketing Plan
The first step in 1. Developing the marketing objectives
developing a 2. The situation analysis
marketing plan is 3. Deciding on the marketing budget
4. Developing marketing strategies
5. Developing marketing tactics
 Marketing Plan
The first step in 1. Developing the marketing objectives
developing a 2. The situation analysis
marketing plan is 3. Deciding on the marketing budget
4. Developing marketing strategies
5. Developing marketing tactics

The situational analysis is the process of examining

factors from the organization’s internal and external
environments.
 Changes in Channel Power
Because of the Internet and 1. Consumers
information technology,
2. Retailers
channel power has now
3. Manufacturers
shifted to
4. Wholesalers
5. Distributors
 Changes in Channel Power
Because of the Internet and 1. Consumers
information technology,
2. Retailers
channel power has now
3. Manufacturers
shifted to
4. Wholesalers
5. Distributors

Currently, consumers can obtain information about products

through various channels and as a result have increased their power
in determining how and when they will purchase products.
 Trends in Marketing
When consumers believe 1. Brand equity
that most brands offer the 2. Brand loyalty
same set of attributes, it is 3. Brand parity
called 4. Brand equality
5. War of the brands
 Trends in Marketing
When consumers believe 1. Brand equity
that most brands offer the 2. Brand loyalty
same set of attributes, it is 3. Brand parity
called 4. Brand equality
5. War of the brands

Brand parity results when a consumer has multiple brands from which
they can choose and the brands are viewed as being of approximately
equal quality.
A greater acceptance of private brands has led to

1. Lower brand competition

2. Higher acceptance of manufacturers’ brands
3. Higher prices for manufacturers’ brands
4. Lower brand loyalty
5. Lower store loyalty
 A greater acceptance of private brands has led to

1. Lower brand competition

2. Higher acceptance of manufacturers’ brands
3. Higher prices for manufacturers’ brands
4. Lower brand loyalty
5. Lower store loyalty

Brand loyalty has been reduced because of a growing acceptance of private

brands.
Which negative response during TV commercials is
the most frequent?
1. Get annoyed
2. Get up and do something else
3. Switch channels
4. Talk to others in the room
5. Turn down the sound on the TV
Which negative response during TV commercials is
the most frequent?
1. Get annoyed
2. Get up and do something else
3. Switch channels
4. Talk to others in the room
5. Turn down the sound on the TV

The most frequent response is to get up and do something else during the
commercials (54%).
Global Integrated Marketing Communications

Using the same marketing 1. Adaptation

message and approach in 2. GIMC
every country a brand is 3. Brand parity
sold is 4. Marketing extension
5. Standardization
Global Integrated Marketing Communications

Using the same marketing 1. Adaptation

message and approach in 2. GIMC
every country a brand is 3. Brand parity
sold is 4. Marketing extension
5. Standardization

Standardization is the process of using the same message

in every country. The strategy produces economies of
scale and if successful can create a global brand.
• Analyze the role of integrated marketing
communications in the recruitment efforts of
various branches of the military such as the Indian
Army? How can each element of the promotional
mix be used by the military in its recruitment
marketing?