INTRODUCTION TO INTEGRATED

MARKETING COMMUNICATIONS

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INTEGRATED MARKETING COMMUNICATIONS

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 LEARNING OBJECTIVES

➢ Concept of integrated marketing communications (IMC)

➢ How IMC has evolved

➢ Tools of promotional mix

➢ Types of contact points or touch points

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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”.

- Definition of Marketing developed by the American Marketing Association

Key aspects of marketing:

1) Creating, communicating and delivering value
2) Focusing on customer relationships
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 MARKETING CONCEPT REQUIREMENTS
The Marketing Mix (4 Ps)

• Product or service
• Price
• Place
• Promotion

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 EVOLUTION OF IMC
➢ Late 1980s and early 1990s: Don Schultz
Drivers of IMC
developed the concept of Integrated
1. Technology
Marketing Communications (IMC)
2. Branding
3. Globalization
➢ 1980s: Silo structure of companies
- What changed this?
- Measurement of financial returns on
- End of World War II - global economy
marketing communication activities

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 DEFINITION OF IMC
“Integrated marketing communication is a strategic process 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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 DEFINITION OF IMC
1. IMC as a strategic
“Integrated businesscommunication
marketing process is a strategic process to plan,
develop, execute and evaluate coordinated, measurable, persuasive
brand
2. Internalcommunications programs
audiences – External audiences 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” 3. Measurement of marketing communications
- Don Schultz
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 ROLE OF IMC IN BRANDING

Image or
Performance
Associations

Name Brand Packaging

Identity

Logo Design

Symbols

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 MARKETING COMMUNICATION - MAGGI
Maggi noodles: 2 minute noodles

How Maggi came back with a bang in the face of turmoil?

1. Direct statement – Nestle CEO

2. Change in packaging

3. Change in marketing strategy – e-commerce from retail shelf

4. Advertisement – Motherly reassurance

https://www.youtube.com/watch?v=wuHkXi3xBzY

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MAGGI Strategy

Mass Direct
Media response
advertising
Integrated
Marketing
Strategy
E-commerce Packaging
 MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX
Promotion
• Coordination of all seller-initiated efforts

• To set up channels of information and persuasion

• To sell goods and services or promote an idea

• Communication function of marketing

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 MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX

Promotional mix

• Tools used to accomplish an organization’s communication objectives

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MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX TOOLS

Publicity/
Sales
Advertising Public
Promotion
Relations

Interactive/
Personal Direct Internet
Selling Marketing Marketing

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Contemporary IMC Approach
Sales Direct
Packaging
promotion response

Mass
Point of media
purchase advertising
Public
relations
Publicity

Interactive
marketing Direct
Special
marketing
events
 ADVERTISING

• Paid, nonpersonal communication

- About an organization, product, service, or idea
- By an identified sponsor

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 ADVERTISING
Paid: space and time for advertising message must be bought

Nonpersonal:
• Message is delivered to a large group of individuals, at the same time
• Mass media:
- TV
- Radio
- Magazines
- Newspapers
• No immediate feedback from audience
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 BENEFITS of ADVERTISING
• Cost effective, Large audience

• Brand building
- Awareness/ information
- Influence perceptions
• Ability to control the message
- What, when and how something is said
- Where it is delivered

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 DISADVANTAGES of ADVERTISING

• Cost of producing and placing ads high - television commercials

• Difficult to determine the effectiveness of advertising

• Clutter problems

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 CLASSIFICATION of ADVERTISING
National

Advertising to
consumer markets Retail / Local

Primary / Selective Demand

Business-to-Business
Advertising to
Professional Business &
Professional markets
Trade
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 ADVERTISING TO CONSUMER MARKETS

• National advertising
- Large, well-known companies on a nationwide basis

- Goal: remind consumers of the company, brand, products, services

- Prime-time TV or in other major national or regional media

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 ADVERTISING TO CONSUMER MARKETS
• Retail/ local advertising
- Retailers or local merchants to encourage shopping at a specific store or establishment

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 ADVERTISING TO CONSUMER MARKETS
Primary demand advertising
https://www.youtube.com/watch?v=6lW37OedACU

https://www.youtube.com/watch?v=nW49Tsh28q0

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 ADVERTISING TO CONSUMER MARKETS
Primary demand advertising
• ‘Sunday ho ya Monday, roz khao ande’

Advertisement launched:
- National Egg Coordination
Committee in India (NECC)

- Objective to increase egg

consumption

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 ADVERTISING TO CONSUMER MARKETS
Primary demand advertising: ”Got milk?”

• Launched when dairy producers realized that milk consumption was declining

• Celebrity print ads from the fields of sports, media and entertainment

• Celebrities have flashed a milk mustache

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Primary demand advertising: “Got milk?”

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 ADVERTISING TO CONSUMER MARKETS

Primary demand advertising Selective demand advertising

• Stimulate demand for a general • Focuses on creating demand for a

product class or entire industry specific company’s brands

Example: Milk corporation of India/ • Example: Amul advertising its milk

National Dairy development board and milk products
promoting milk

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ADVERTISING TO BUSINESS & PROFESSIONAL MARKETS

• Business-to-Business (B2B) advertising

• Professional advertising
• Trade advertising

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MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX TOOLS

Publicity/
Sales
Advertising Public
Promotion
Relations

Interactive/
Personal Direct Internet
Selling Marketing Marketing

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 SALES PROMOTION

Marketing activities that provide

extra value or incentives to the…

Sales Ultimate
Force Consumer
Retailers

• Short-term strategy
• Stimulate immediate sales
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SALES PROMOTION

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 TYPES OF SALES PROMOTION
Consumer- Trade-
oriented oriented

Ultimate user of a product or service Wholesalers, distributors, retailers

Reduced price, Coupons, Samples, Promotional/merchandising

Contests, POP materials, Buy one allowances, price deals, sales
get one free offers contests, trade shows

Encourages immediate purchases Encourages to stock and promote

Stimulate short-term sales a company’s products
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 SHIFT TOWARDS SALES PROMOTION
Consumers:
- Declining brand loyalty
- Appealing to price sensitive consumer
- Generates extra interest in product
- Effects directly measured than advertising
- Reinforce brand equity / over-reliant – undermine brand equity
-

Retailers:
- Larger and more powerful
- Incentive to stock and promote
33 a brand
 TERMINOLOGY PROBLEM
PROMOTION vs SALES PROMOTION

Promotion
• Refers to various marketing communication activities of organization
• Includes all promotional-mix elements (Broad)

Sales Promotion
• Refers to one specific element of the promotional mix

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MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX TOOLS

Publicity/
Sales
Advertising Public
Promotion
Relations

Interactive/
Personal Direct Internet
Selling Marketing Marketing

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 PUBLICITY/ PUBLIC RELATIONS
• Publicity
- Nonpersonal communication

- About an organization, product, service, or idea

- Not directly paid for nor run under identified sponsorship

- Example: news story, editorial, or announcement

- Techniques: news releases, press conferences, feature articles

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 PUBLICITY

High credibility Low cost

• Not directly paid for

or run under identified sponsor
• A news story, editorial, or
• announcement to a mass audience

Is sometimes Not always under

unfavorable company control

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 PUBLIC RELATIONS
Management function
• Organization systematically plans and distributes information
• To control and manage its image and the nature of publicity it receives
• Evaluates public attitudes
• Identifies items of public interest
• Executes a program of action to earn public understanding and
acceptance
Primary objectives
• Establish and maintain a positive image of the company among
various publics
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 PUBLIC RELATIONS TOOLS

To enhance an organization’s image:

• Publicity
• Participation in community activities
• Fund-raising
• Sponsorship of special events

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 PUBLICITY vs PUBLIC RELATIONS
Distinction between Publicity and Public relations

Public relations:
• Public relations has a broader objective than Publicity
• Purpose of public relations – To establish and maintain a
positive image of the company among its various publics
Publicity:
• Publicity is an important communications technique used in
public relations (other tools may also be used)
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MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX TOOLS

Publicity/
Sales
Advertising Public
Promotion
Relations

Interactive/
Personal Direct Internet
Selling Marketing Marketing

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 PERSONAL SELLING
• Direct Person-to-person communication

• A seller attempts to assist and/or persuade prospective

buyers to make a purchase or act on an idea

• Direct contact between buyer and seller

- face-to-face/ some form of telecommunication

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 ADVANTAGES OF PERSONAL SELLING
• Direct contact between buyer and seller allows communication
flexibility

• Tailor and adapt messages to specific needs of the customer

• Immediate and direct feedback

• Targeted to specific markets and customers who are best prospects

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 DISADVANTAGES OF PERSONAL SELLING

• Expensive way to reach large audiences

• Difficult to have consistent and uniform message delivered to all

customers

• High cost per contact

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MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX TOOLS

Publicity/
Sales
Advertising Public
Promotion
Relations

Interactive/
Personal Direct Internet
Selling Marketing Marketing

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 DIRECT MARKETING
• Organizations communicate directly with target customers to
generate a response and/or a transaction

• Company select a group of prospective clients

• Reaches out to them directly rather than communicating with

the entire population

• Messages designed to suit the profile of various customers

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 TOOLS OF DIRECT MARKETING

Direct
Direct Mail Catalogs
Response Ads

Telemarketing Direct Selling

Database Shopping Internet

Management Channels Sales

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 DIRECT MARKETING
• Direct-Response advertising
Encourages the consumer to purchase directly from the manufacturer

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MARKETING COMMUNICATION MIX/
PROMOTIONAL MIX TOOLS

Publicity/
Sales
Advertising Public
Promotion
Relations

Interactive/
Personal Direct Internet
Selling Marketing Marketing

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 INTERACTIVE/INTERNET MARKETING
- Back-and-forth flow of information

- Real time
- Allow consumers to make inquiries, respond to questions, make purchases,
and obtain online purchasing assistance

- Multifaceted promotional tool

- Different forms of interactive media

• Internet
• Kiosks
• Interactive television
• Cell phones
• Other mobile devices
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 ADVANTAGES OF
INTERACTIVE/INTERNET MARKETING
• Used for a variety of integrated marketing communication functions including
advertising, direct marketing, sales promotion, public relations and selling

• Messages can be tailored

• Interactive nature of the Internet leads to a higher degree of customer involvement

• Information provided by marketers can be updated and changed continually

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 GROWING IMPORTANCE OF IMC
Why marketers are adopting the concept of IMC?
• Strategically integrating various communication functions v/s Operate autonomously

- Avoid duplication

- Synergy among promotional tools

- More efficient and effective marketing communications programs

• Adaption of marketers to changing environment

- Rapidly changing environment: Consumer behavior, Technology, Media consumption

behavior, Proliferation of media
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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

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 GROWING IMPORTANCE OF IMC
1. Shifting of marketing expenditures from traditional media advertising to other forms
- Fading age of mass marketing to Evolution of micromarketing

- Consumers are less responsive to traditional media advertising

2. Rapid growth of the Internet and social media

- More targeted away than traditional media

3. Shift in marketplace power from manufacturers to retailers

4. Growth and development of database marketing

5. Demands for greater accountability

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 CONTACT OR TOUCH POINT
Each and every opportunity the customer has to see or hear about the
company, brands or have an encounter or experience it.

Contacts can range from:

• Seeing or hearing an ad for a brand

• Opportunity to use or experience a brand in a retail store

• Interacting with the company during a sales transaction

• Service encounter.
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IMC AUDIENCE CONTACT TOOLS

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CATEGORIES OF CONTACT OR TOUCH POINT
• Company created touch point

• Intrinsic touch point

• Unexpected touch point

• Customer-initiated touch point

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TOUCH POINTS: CONTROL VS. IMPACT
 REVIEW OF LEARNING OBJECTIVES

➢ Concept of integrated marketing communications (IMC)

➢ How IMC has evolved

➢ Tools of promotional mix

➢ Types of contact points or touch points

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