IMC – INTEGRATED

MARKETING COMMUNICATION

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 The Modern World of Marketing
• Rapidly changing media environment
• Mass media losing viewers, readers,
listeners
• Digital media targets narrow audience
• Consumers not content to be passive
message recipients
• Information now obtained from a myriad
of sources
Traditional media is more and more often a “pointer” to an
online device, because consumers are no longer passive
message recipients. They want to be in control of the content
they receive from the media, and they are seeking
information, and entertainment, from a variety of sources 1-2
 The Modern World of Marketing

• In the past, the only advertising

avenues were television, radio,
billboards, and printed media. Ads in
these media promoted the product or
service for sale.
• Today, traditional media are used
more and more to drive customers to
online sites, where the information can
be more detail, colorful, and
interactive.
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 Punch Dub

• Entertaining, interactive information

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 VW Strategy

Traditional Social
Mass Media
Media
Integrated
Marketing
Strategy
Sports
Point-of- Team
Sale Kits Sponsor

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The Growth of Advertising and Promotion

• Integral part of social and economic

systems
• Carefully prepared messages delivered
to carefully targeted audiences
• New marketing channels
• Internet ads (banner ads, videos,etc)
• Social media
• Mobile marketing

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 The Growth of Advertising and
Promotion
1980 2016
• Total:$571 Billion
• Total: Over $100
• Traditional Media
Billion Advertising:$127 billion
• Media • Digital/Online advertising:
Advertising:$53 $68 Billion
Billion • Consumer and trade
Promotion:$300 Billion
• Sales Promotion:$49
• Direct Mail (and e-
• Outside US: $55 mail):$51 Billion
Billion • Sponsorship & Event
Marketing:$25 Billion
• Outside US: $382 Billion
(2017)

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 The Role of Marketing
Advertising & Nonprofit
Promotion Organizations

•Inform customers of •ask for

a product or service donations
•Convince them of •Offer intangible
its ability to satisfy social and
their wants or needs psychological
•Help develop and satisfactions
sustain relationships

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Non-Profit Organizations

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Non-Profit Organizations

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 What is Marketing?

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

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 What is Value?

• Customer’s perception
of all the benefits of a
product or service
• Weighed against
costs of acquiring
and consuming it

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 What is Value?

• Benefits can be…

• Functional
(performance of the product)

• Experiential
(what it feels like to use the product)

• Psychological
(feelings such as self-esteem or status

that result from owning the product)

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 The Marketing Mix

• The Four Ps
• Product
• Price
• Place
• Promotion

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 Contemporary IMC Approach

Sales Direct The connected

Packaging
promotion response puzzle pieces
demonstrate
Mass how various IMC
Point of
media tools are
advertising coordinated with
purchase Public
relations traditional media
Publicity advertising to
create a unified,
Interactive
effective
Direct communications
marketing Special
marketing program
events

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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. 1-16
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 Don Schultz’ new definition of IMC

Integrated marketing communications is a strategic

business process used to plan, develop, execute
and evaluate coordinated, measurable, 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.
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 Growing Importance of IMC
• Value of IMC
• Avoids duplication of marketing efforts
• Synergy among promotional tools
• More efficient and effective marketing

• Rapidly changing environment

• Consumer behavior
• Technology
• Media consumption behavior
• Explosion of media
Most marketers are learning that it no longer makes
economic sense to send an advertising message
to the many in hopes for persuading the few 1-19
 The Role of IMC in Branding
Brand identity is a combination of many factors

Image or
Performance
Associations

Name Brand Packaging

Identity

Logo Design

Symbols

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Building Brands in a Recession

Consumers

Spend less money

Carefully inspect purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious

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 Building Brands in a Recession

Companies

Reduce advertising budgets

Balance discounts/promos w/brand image
Must overcome consumer distrust
Change product marketing focus
Increase online social presence
Look for new ways to remain relevant

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 Test Your Knowledge

Why are marketers decreasing the use of mass media

advertising and increasing the use of integrated
marketing communications?
A) The mass market has become fragmented
B) New technologies gave consumers greater
control over the communication process
C) Use of the Internet and electronic commerce
is growing
D) Explosive growth in social networking
E) All of the above

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 The Promotional Mix
Promotion has been defined as the coordination of all seller-
initiated efforts to set up channels of information and
persuasion in order to sell goods and services or promote an
idea

Interactive/
Direct Internet
Advertising
Marketing Marketing

Publicity/
Sales Personal
Public
Promotion Selling
Relations
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 Advertising

• Paid, nonpersonal communication

• About an organization, product, service, or idea
• With an identified sponsor
• No immediate feedback from audience

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 Non-Personal Media
• Mass media
• TV
• Radio
• Magazines
• Newspapers

• Benefits
• Cost effective
• Large audiences

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 Non-Personal Media

Media advertising is still the most cost-effective way to reach

large numbers of consumers. Examples:
The average 30-second commercial on the four major
television networks during prime-time programming reaches
nearly 5 million households. Cost per 1000 households in
2015 was $23.81.
Magazines like Time, Sports Illustrated, or People have a
circulation of 3 million, but can reach more than 10 million
due to multiple readers
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 Advertising Classifications

National

Retail / Local

Primary / Selective Demand

Consumers

Business-to-Business

Professional

Trade
Organizations
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 Consumer Markets
•National ads…done by large companies on a nationwide
or regional basis. The goal is to remind consumers of the
company, brand, or products and services.
•Retail/Local ads… Done by retailers or local merchants to
encourage shopping at a specific store or establishment.
•Primary vs. Selective demand… Primary demand is
designed to stimulate demand for a general product class or
industry. Selective demand focuses on creating demand for
a specific company’s brands.

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•Business and Professional Markets:
•B2B ads… target individuals who buy
industrial goods or services.
•Professional ads… target professionals, like
doctors, lawyers, dentists, and engineers.
•Trade ads… target marketing channel
members, such as wholesalers, distributors,
and retailers.
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 Direct Marketing

A system of marketing by which

organizations communicate directly with
target customers to generate a response or
a transaction. Direct marketing has not
traditionally been considered an element of
the promotional mix. However, it has
become such an integral part of the
integrated marketing communications
program of many organizations 1-32
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 Forms of Direct Marketing

Direct
Direct Mail Catalogs
Response Ads

Telemarketing Direct Selling

Database Shopping Internet

Management Channels Sales

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 Forms of direct marketing:
• Direct mail… letters, postcards, videos.

• Catalogs…mailed or available for pickup at

stores.

• Direct response ads… any ad that prompts

the consumer to purchase direct from the
manufacturer.

• Telemarketing… contacting consumers by

phone to sell them something or to qualify
them as sales leads. 1-35
 Forms of direct marketing:

• Direct selling… Avon, Tupperware, Amway.

• Databases… vast stores of information on
consumers, including their names,
addresses, financial information, shopping
habits.
• Shopping channels… such as the Home
Shopping Network.
• Internet sales… companies like Under
Armour, Land’s End, and J. Crew sell
products online as well as through retail
channels
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Shopping Channels HSN 1-37
 Under
Armour
(Internet sales)

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 Direct Response Advertising

• Encourages consumers to purchase

directly from the manufacturer

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 Advantages
•changes in society (two-income households, greater
use of credit) have made consumers more receptive to
the convenience of direct-marketed products
•allows a company to be very selective and target its
marketing communications to specific customer
segments
•messages can be customized to fit the needs of specific
market segments
•effectiveness of direct-marketing efforts are easier to
assess than other forms of promotion 1-40
 Disadvantages
•consumers and businesses are being
bombarded with unwelcome mail and phone
calls which makes them less interested to
direct-marketing
•direct marketing has image problems
•problems with confusion as there are too
many direct-marketing messages competing
for consumers’ attention
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Direct Response Advertising

Major Tools Forces for Change

Direct Mail Changing Lifestyles

Television Credit Cards
Magazines Toll-free Numbers
Internet Rapid Internet Growth

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 Interactive Marketing
Interactive media
1. Internet

2. Kiosks

3. Interactive television

4. Cell phones

5. Other mobile devices

Advertising already dominates the first two screens
(TV and Computers) in most consumers’ lives, and
more and more ads and other types of promotional
messages are appearing on the “third screen”. 1-43
 Interactive Media

• Social Media

• online means of communication and

interactions among people that are used
to create, share, and exchange content
such as information, insights,
experiences, perspectives, and even
media themselves.

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 Interactive Media

• Allow for a back-and-forth flow of information whereby

users can participate in and modify the content of the
info they receive in real time. The major interactive
medium is the Internet.

• It is actually a medium that can be used to for other

elements of the promotional mix as well including sales
promotion, direct marketing, and public relations.

• The rapid penetration of cell phones and smart phones

is leading to a rapid growth in mobile marketing whereby
marketing messages are sent directly to the devices. 1-45
 Interactive Marketing

• Internet activities
• Advertise products and services
• Link ads and websites to search engines
• Offer coupons, contests, sweepstakes
• Conduct direct marketing
• Do personal selling
• Conduct public relations activities
• Measure advertising and promotions

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 Discussion

• Which search engine do you use most

often, and why?

• Do you ever enroll in online contests or

sweepstakes?

• Do you have your own website?

• If so, do you sell anything?

• How much traffic does your site get, and

how do you drive traffic there?
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 Sales Promotion

Marketing activities that provide

extra value or incentives to the…

Sales Ultimate
Force Consumer
Retailers

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 Consumer vs. Trade Promotions

Consumer- Couponing, sampling, premiums,

oriented rebates, contests, sweepstakes,
POP materials
Encourages immediate purchases

Promotional/merchandising
allowances, price deals, sales
Trade- contests, trade shows
oriented Wholesalers, distributors, retailers

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 Sales Promotion
• Among consumer packaged-goods companies,
sales promotion is often 60-70% of the promotional
budget.

• This represents a shift in promotional strategy,

because consumers now have less brand
loyalty and are more price sensitive.

• Retailers have also become larger and more

powerful, and are demanding more trade
promotion support from companies. 1-50
 Publicity

A news story,
editorial, or High credibility and
announcement to low cost
a mass audience
Not directly paid for
or run under
identified sponsor

Is sometimes Not always under

unfavorable company control

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 Horse meat scandal

• Horse meat scandal wipes £300m off Tesco's

market value

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 Public Relations
Public relations has a broader objective than
publicity; its purpose is to establish and
maintain a positive image of the company
among its various publics.
• Management function
• Evaluates public attitudes
• Identifies items of public interest
• Implement a program of action to earn
public understanding and acceptance

• Primary objectives
• Establish and maintain a positive image
of the company among various publics 1-53
 Public Relations
• Uses publicity and
other tools
• Special publications
• Community activities
• Fund-raising events
• Sponsorships
• Public affairs
activities

• American Honda Motor

Company’s “Value to
America” campaign.
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PR

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 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
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IMC Audience Contact Tools

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Touch Points: Control vs. Impact

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 The four basic contact or touch points:
• Unexpected…unanticipated references or
information about a company or brand that a
customer or prospect receives that is beyond
the control of the organization. For example,
a word-of-mouth message, or a website that
hosts product reviews.

• Customer-initiated… occurs whenever a

customer or prospect contacts the company.
Many involve inquiries or complaints. 1-59
 The four basic contact or touch points:
• Intrinsic… interactions that occur with a
company or brand during the process of
buying or using the product or service, such
as discussions with retail sales personnel.
These touch points are not under the control
of the company.
• Company created… planned marketing
communication messages created by the
company. This includes ads, websites,
news/press releases, packaging, brochures
and collateral material, sale promotions,
point-of-purchase displays, and in-store
décor. 1-60
Touch Points

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 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
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 Elements of a Marketing Plan
Detailed situation analysis
Consists of an internal marketing audit/review, and an external
analysis of the competition and the environment
Specific marketing objectives
Provide direction, a time frame for marketing activities, and a
mechanism for measuring performance
Marketing strategy and program
That include selection of target market(s) and decisions/plans
for the four elements of the marketing mix
Program for implementing the strategy
Including determining specific tasks and responsibilities
Process for monitoring & evaluating performance
Providing feedback, so control can be maintained and both
strategy and tactics can be adjusted
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Promotional Program Situational Analysis

Internal External

Firm’s promotional Customer analysis

organization/capabilities Competitive analysis
Review of previous Environmental analysis
programs and results
Assess firm/brand
image
Assess strengths and
weaknesses of product
or service

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 Factors that influence promotional strategy
The internal factors are fairly intuitive:
1. What are the strengths and weaknesses of the
product or service
2. Its advantages and disadvantages
3. Unique selling points or benefits
4. Packaging, price, and design

Key points about the external analysis:

1. Characteristics of the firm’s customers, including
their perceptions, attitudes, lifestyles, and
criteria for making purchase decisions
2. Market segments
3. Positioning strategies
4. Competitors

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 Analysis of Communications Process

This stage of the promotional planning process

examines how a company can effectively
communicate with consumers in target markets.
• Communication decisions
• Source and message
• Communication channels
• Media mix
• Costs
• Marketing goals (sales, market share, or profitability)
• Communication objectives

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 Some things that must be considered
• What process will consumers go through when
responding to marketing communications?
• Which source, message, and communication
channels should be used? should a celebrity
spokesperson be used? What media mix should
be used, and what are the costs of each
channel?
• What is the overall marketing objective, in terms
of sales, market share, or profitability?
• What does the firm hope to accomplish with its
promotional program (the communication
objective)? 1-67
 Budget Determination

• What will the promotional program cost?

• How will the money be allocated?

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 Developing the IMC Program
IMC Strategies
Involves determining the
basic appeal and
message the advertiser
Media
wishes to convey to the
target audience

Determining which communication

channels will be used to deliver the
advertising message to the target
audience. Careful evaluation of the
Creative media options’ pros & cons, costs,
and ability to deliver the message
effectively to the target audience
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 Monitoring, Evaluation, Control
Basic Goals

Determine how well the program

is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies

Monitoring, evaluating, and controlling the promotional

program. All of which are designed to provide managers
with continual feedback concerning the effectiveness
of the IMC program, which in turn
can be used as input into the planning process.
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Case Study

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