Unit –II

Integrated Marketing
Communication

PRESENTED BY :- STAVAN BHUJBAL

 An Introduction to Integrated
Marketing Communications

Stawan Bhujbal © 2010 Stawan Bhujbal., All Rights Reserved.

 OUTLINE

 IMC Defined

 Need for IMC

 Role of IMC in Marketing & Brand Management

 How Marketing communication work

 Setting IMC Objectives.

 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 (IMC):
“is the coordination and integration of all
marketing communications tools, avenues, and
sources within a company into a seamless
program that maximizes the impact on
consumer and other end users at a minimal
cost.”
Clow and Baack,
 Need for IMC
 Market fragmentation has resulted
in media fragmentation
 Alternative media channels abound
(e.g. cd catalogues, internet sites,
kiosks…)
 All messages seen as one single
message to consumer

NOTE: IMC builds a strong brand

identity in the marketplace by
tying together and reinforcing all
your images and messages
 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
Communication-Based Marketing Model

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

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 company’s 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 world’s 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
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 – High costs of producing
message and running ads
– Cost effective way
  to
– Credibility problems and
                                          
communicate with large
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
advertising
•Business-to-business advertising
•Business-to-business
advertising
•Professional advertising
•Professional
advertising
•Trade advertising
•Trade
An example of a business-to-business ad

Source: Google Source: Courtesy Honeywell.

 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 Lack of customer receptivity and
consumers more receptive to very low response rates
direct-marketing
Allows marketers to be very Clutter (too many messages)
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
– Internet is not yet a mass medium
Can be used for a variety of IMC as many consumers lack access
functions – Attention to Internet ads is very low
Messages can be tailored to – Great deal of clutter on the Internet
specific interests and needs of – Audience measurement is a
customers problem on the Internet
Interactive nature of the Internet
leads to higher level of
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
Examples

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
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
Enhance personal selling efforts
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 seller allows for more – High costs per contact
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
immediate feedback uniform message delivered to
– Sales efforts can be targeted all customers
to specific markets and
customers who are best
prospects.
 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

Potential Communications Objectives

Sales
Customer loyalty
Company image
Brand image
Store patronage An inquiry
Service contract Product trial
Recommendation
Adoption of the product
The objectives of this ad include image
building and encouraging inquiries
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
Brand Management
 What is a brand?

A brand is a name, term, sign,

symbol, design or a combination of
the above to identify the goods or
service of a seller and differentiate
it from the rest of the competitors
 A brand comprises of

Tangible attributes

Intangible attributes
 Tangibles

Eg.
 Product
 Packaging
 Labelling
 Attributes
 Functional benefits
 Intangibles

Eg.
 Quality
 Emotional benefits
 Values
 Culture
 Image
 Brand Identity

It is the marketer’s promise to

give a set of features, benefits
and services consistently
 Brand Building

Involves all the activities that are

necessary to nurture a brand into
a healthy cash flow stream after
launch
 What kind of activities?

Eg.
 Product development
 Packaging
 Advertising
 Promotion
 Sales and distribution