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BACHELOR OF BUSINESS
ADMINISTRATION
SEMESTER 3
DBB2105
ADVERTISING AND SALES
Unit 2
Integrated Marketing Communications
Table of Contents
4 Role of IMC - 2
8 - 11
4.1 Integrated marketing communication - -
in Indian business context
5 Consumer Behavior - 3
12 - 14
5.1 Consumer buying decision process - -
6 Communication Process 1 4 15 - 16
7 Promotional Mix: Tools for IMC - 5 17 - 18
8 The IMC Planning Process - - 19
9 Global IMC - - 20 - 21
10 Summary - - 22 -23
11 Glossary - - 23
12 Terminal Questions - - 23
13 Answers - - 23 - 24
1. INTRODUCTION
In the previous unit, we learnt the definition and role of advertising, its function and types
and key players of advertising. In this unit, we will concentrate on an important aspect
known as ’Integrated Marketing Communications’ (IMC).
For many years, the promotional function in most companies was dominated by mass media
advertising. Companies relied primarily on their advertising agencies for guidance in nearly
all areas of marketing communications.
Most marketers did use additional promotional and marketing communication tool, but sales
promotion and direct marketing agencies as well as package design firms were generally
viewed as auxiliary services. PR agencies were used to manage the organizations’ publicity,
image and affairs with relevant groups of the public on an ongoing basis but were not viewed
as integral participants in the marketing communication process.
Marketers in many companies built strong barriers around the various marketing and
promotional functions. They managed them as separate practices, with different budgets,
different views of the market and different goals and objectives. These companies failed to
recognize that the wide range of marketing and promotional tools must be coordinated well
to communicate effectively and present a consistent image to target markets. During the
1980s, companies realized the need for integrating their promotional tools. The companies
started moving towards the process of integrated marketing communications, which
involved coordinating the various promotional elements and other marketing activities that
communicated with the firm’s customers. Many advertising agencies realized the need of
bringing various promotional tools under their folds to comprehensively offer all types of
specialist service to their clients.
1.1 Objectives:
After learning this unit, you should be able to
❖ Define Integrated Marketing Communication (IMC)
❖ Discuss the evolution and role of IMC
❖ Describe how consumer behavior helps in making strategies and explain consumer
purchasing process
❖ Discuss the nature and basic model of communication
❖ Describe the tools for IMC
❖ Explain the planning process of IMC
A task force from the American Association of Advertising Agencies defines IMC as follows:
“IMC is a concept of marketing communication 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.”
Thus, IMC includes the coordination and integration of all marketing communication tools,
avenues and sources within a company into a seamless program in order to maximize the
impact on end users at a minimal cost. The starting point of the IMC process is the marketing
mix that includes different types of marketing, advertising and sales efforts. Without a
complete IMC plan, there is no integration or harmony between client and customers. The
goal of an organization is to create and maintain communication throughout its own
employees and throughout its customers.
IMC ensures consistency of message and the complementary use of media. The concept
includes online and offline marketing channels. Online marketing channels include e-
marketing campaigns or programs, such as search engine optimization (SEO), pay-per-click,
email and banner advertisements. It also includes latest web related channels for webinar,
blog, micro-blogging, RSS, podcast, Internet Radio and Internet TV. On the other hand, offline
marketing channels include traditional print (newspaper, magazine), mail order, public
relations, traditional radio and television. A company develops its IMC program using all the
elements of the marketing mix (product, price, place and promotion). Integrated marketing
communication plans are, thus, vital to achieving success.
Self-Assessment Questions - 1
Also, advertising, as the only way of communication, is losing ground against other forms of
marketing communication such as direct marketing and Internet marketing. The money
spent on network TV advertising and mass media magazines like ‘Life’ and ‘Post’ have
reduced drastically.
Due to all these reasons, many companies realized the need for a more strategic integration
of their promotional tools. This gave way for the advent of ’Integrated Marketing
Communication’ and eventually firms began moving towards this process.
In addition, consumer perceptions have also impacted the way companies communicate and
started stressing on IMC. Consumer perceptions of a company and its various brands are a
synthesis of the bundle of messages they receive or contacts they have, such as media
advertisements, price, package design, websites etc. The IMC approach seeks to have a
company’s entire marketing and promotional activities project as a consistent, unified image
to the marketplace.
Thus, the individual marketing practices, such as the advertising plan evolved into an IMC
plan and became a multidimensional, sophisticated, measurable plan to maximize brand and
company value. The evolution of IMC also made ’messaging function’ a centralized approach
such that everything a company said and did, it communicated a common theme and
positioning.
4. ROLE OF IMC
The role of IMC can be discussed under the following points:
Hierarchy of effects
➢ Sequence of stages a prospective buyer goes through
➢ Use as a tool to develop objectives
• Awareness–Ability to recognize and remember the product or brand
• Interest–Increase in desire to learn about the product features
• Evaluation–Consumer’s appraisal of the product on important attributes
• Trial–Consumer’s actual first purchase and use
• Adoption–Repeated purchase and use of the product or brand
India is one of the most preferred markets in the globe due to her resource and potential.
The growing purchasing power of India’s huge middle class makes it attractive. However, the
customer base in India is extremely fragmented, with an inconsistent distribution system.
Also, the cultural diversity of consumer, differences in their tastes, habits and requirements
make it more complex to market their goods in a streamlined and consistent manner. The
concept of IMC with focused and massive marketing is fairly new to Indian companies who
have traditionally experienced a mixed economy and trade restrictions. In a protected
economy, the companies had faced restricted competition and consequently did not realize
the importance of targeted marketing. It is now necessary to examine the cultural and social
factors with demographic influences, keeping in perspective a pertinent analogy of ‘GO
GLOCAL’ with the concept of IMC.
IMC is a major strategic concept that is evolutionary in Indian context and therefore there is
a need to explore this concept directly in the real world. The purpose of integrated marketing
communications strategy is to work toward the common goal of customer focused
marketing.
When a variety of media is bombarding potential customers with messages, it is vital to have
clear and consistent communication. This has led many Indian organizations to integrate
their communications efforts under the umbrella of this strategic marketing
communications function. Effective marketing departments and advertising agencies are
developing pipelines of new, talented innovations, media buyers, promotions managers,
database web masters and others in order to succeed in the long term. The effect of IMC plans
is building bridges with other internal departments and making everyone aware of the thrust
and theme of the program.
The Indian companies are identifying the target niches on social and attitudinal behavior and
offering common products across different demographics and also formulating the message
accordingly. Internet marketing is picking up pace in India with fast technological
advancement. Consumption and shopping patterns are changing. Online shopping, credit
card usages are being accepted. Professionalism is increasing. Recent liberalization policies
have increased competition and enforced new marketing practices in India. The local
environment and local markets dictate the need for specialized and integrated approaches.
Thus, the idea of IMC manifests itself in a variety of local and situational ways for Indian
marketers.
Self-Assessment Questions – 2
5. CONSUMER BEHAVIOR
A challenge faced by all marketers is how to influence the purchase behavior of consumers
in favor of the product or service they offer. For companies like BMW, it means getting
consumers to purchase or lease a car while for B2B marketers like Canon, it means getting
organizational buyers to purchase more of their photocopiers and fax machines. While their
ultimate goal is to influence consumers’ purchase behavior, most marketers understand that
the actual purchase is only part of an overall process of consumer behavior.
Consumer behavior is the study of when, why, how and where people do or do not buy a
product or service. It is defined as ’the process and activities people engage in when
searching for, selecting, purchasing, using, evaluating and disposing of products and services
so as to satisfy their needs and desires’. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision making process,
both individually and in groups. It studies characteristics of individual consumers such as
demographics and behavioral variables in an attempt to understand people's wants. It also
tries to assess influences on the consumer from groups such as family, friends, reference
groups and society in general.
Customer behavior study is based on consumer buying behavior, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential
asset for customer behavior analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalization, customization and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
Behind the visible act of making a purchase, there lies a decision process that must be
investigated.
The purchase decision process is the stages that a buyer passes through in making choices
about which products and services to buy. The stages are:
• Problem recognition
• Information search
• Evaluation of Alternatives
• Purchase decision
• Post-purchase behavior
Purchase: Actual purchase happens based on the evaluation of various parameters of the
product or service.
Self-Assessment Questions – 3
5. ___________ is defined as “the process and activities people engage in when searching
for, selecting, purchasing, using, evaluating and disposing of products and services
so as to satisfy their needs and desires”.
6. What are the stages of purchase decision process?
6. COMMUNICATION PROCESS
A process, by definition is “a systematic series of actions or operations or a series of changes
directed to some end.” Communication is a two–way process in which there is an exchange
and chain of ideas towards a mutually acceptable direction. The process of communication
involves two or more persons participating through a medium that carries the information
or message for a particular purpose which is mutually understood by both the sender and
the receiver. The communication process is shown in the below (Figure 2.1).
• Sender / Encoder / Speaker: The person who starts the communication process is
normally referred to as the sender. It is the person who transmits, spreads or
communicates a message with the purpose of
informing/persuading/influencing/changing the attitude, opinion or behavior of the
receiver.
• Receiver/Decoder/Listener: A receiver is the targeted audience of the message who
receives the message and translates (decodes) it to understand the real meaning and
sends back the feedback (response) to the sender.
• Message: Message is the encoded idea transmitted by the sender making the
formulation of the message extremely important. Accuracy of message is of utmost
importance, in order to communicate the right meaning to the receiver.
Self-Assessment Questions – 4
• Sales promotion: Sales promotion is one of the four aspects of promotional mix (The
other three parts of the promotional mix are advertising, personal selling and
publicity/public relations.). Media and non-media marketing communications are
employed for a pre- determined, limited time to increase consumer demand, stimulate
market demand or improve product availability. The examples include contests,
coupons, freebies, point-of-purchase displays, premiums, prizes, product samples and
rebates.
• Personal selling: Personal selling is face-to-face selling, and it involves direct person-
to-person communication. Here, the manufacturers directly sell their products to the
customers. It establishes direct contact between the seller and the buyer, thereby
reducing the need for middlemen such as distributors, dealers and retailers.
• Internet marketing: Online marketing is a form of promotion that uses the Internet
and World Wide Web to deliver marketing messages to attract customers. Examples of
online advertising include contextual advertisements on search engine results pages,
banner advertisements, rich media advertisements, social network advertising,
interstitial advertisements, online classified advertising, advertising networks and e-
mail marketing, including e-mail spam.
Self-Assessment Questions – 5
Authors Belch G. and M. Belch presented that IMC planning model consists of:
1. Review of marketing plan (examine overall marketing plan and objectives, competitor
analysis, role of advertising and promotion)
2. Analysis of promotional program situation (external and internal analysis)
3. Analysis of communication process (Analysis of receiver’s response process, source,
message, channel factors, establish communication goals and objectives)
4. Budget determination (set tentative marketing communication budget, allocate
budget)
5. Develop integrated marketing communication process (advertising, direct marketing,
Internet marketing, sales promotion, public relations/ publicity, personal selling)
6. Integrate and implement marketing communication strategy (create and produce
advertisements, purchase media time, space, design and implement promotional mix
programs)
7. Monitor, evaluate and control integrated marketing communication programs (take
measures to control and adjust promotional strategies)
9. GLOBAL IMC
Global marketing communications is a relatively new concept but is here to stay for long. It
is a way to send a consistent marketing message all across the globe. It takes careful planning
and a thorough execution to pull it off successfully. Global brand building through
advertising is a challenge. First, the company and its marketing head should be able to think
and act globally. Secondly, the brand message must be well matched with the company's
offering. Thirdly, it takes serious commitment and budgets to build a strong brand.
Below case shows how an IT giant used global integrated marketing communication to build
brand awareness.
Major IT & ITES giant ‘Accenture’ initiated an advertisement using Tiger Woods, a golf
legend. The key message in the advertisement was "Go on! Be a Tiger". Accenture was
advertising in the local TV to recruit people in India.
What was the rationale behind this golf-based advertisement in India, which is a non-golfing
country?
In 2000, Anderson Consulting changed its name to Accenture after an arbitrator's decision.
This was done to rebrand the company. Marketing department then took on this challenge
by developing an integrated communication program which was launched in January 2001.
The brand ’Accenture’, which is an amalgamation of ’Accent to the Future’, was advertised in
48 countries on television, print, radio, airports, taxis, billboards and posters. By March
2001, the company had placed 6000 advertisements on television.
The advertising campaign to build brand awareness was unprecedented in the IT services
industry. The company had executed a global advertising campaign. In London, taxis were
coated with Accenture signage. In Milan, the company placed large advertisements in
Oberdan square. In San Francisco, the company placed advertisement all over the airport. In
Sydney, Accenture placed advertisements on park benches and bus stands. All these were
done simultaneously over a period of three months.
Company had several objectives: To build a new brand name, to get brand recognition
worldwide from the people who mattered, and to portray a very positive image of the
company. Accenture wanted to associate itself with strong performance, and hence chose
Tiger Woods playing golf. Golf as a game has been associated with the top management in
the corporate world, of it being a rich man's game. Golf personifies power, execution and
planning.
People who play golf know the ability of Tiger Woods as a golfer and generally associate it
with high performance. Therefore, Accenture capitalized on that association. In addition, the
message in the advertisement was worded such that it reflected a business philosophy. For
example, ’To accomplish more, sometimes you need to see less’, ’High performers create
their own opportunities’, etc. These sent the message of ’expect high performance’ from
Accenture. Secondly, the advertisement itself targeted powerful people in the corporate
world–the top managers. Since most of the top managers play golf, the advertisement
captured their attention. This is a classic example of targeted advertisement–senior
management saw and remembered the advertisement while teenagers, housewives, etc.,
ignored it.
Having a single advertising plan for all the countries has several advantages. It is cheaper, a
single unified message is communicated, and the efforts can be centrally coordinated. The
company also runs a risk of alienating some customers who do not play or understand golf
but that is a calculated risk, since most (>80%) business executives play golf.
The logic behind using Tiger Woods and Golf was well explained in their web site:
"It takes a strong message to be relevant in all media. But that's what Accenture has achieved
in a campaign that builds dramatically on our previous insights into the nature of high
performance. Whereas the original campaign touched on what it takes to be a high
performer, these ads demonstrate specific characteristics of high performance. And once
again, the campaign utilizes the modern day personification of high performance: Tiger
Woods. Tiger Woods' consistent performance lends itself perfectly to Accenture's
capabilities that lead to success through high performance. And they illustrate how
Accenture can offer clients advantages that lead to this caliber of high performance.”
Accenture had used Tiger Woods advertisements for many years. This showed the
consistency and serious commitment.
The example of Accenture can be a guide for everyone, especially for those in IT/consulting
services, marketing. Accenture has pulled off a perfect execution of globally integrated
marketing.
10. SUMMARY
Let us now summarize the key learnings of this unit:
11. GLOSSARY
Empowered: Provide authority (for decision making)
Search engine optimization: Process of increasing the number of visitors to a website by
obtaining a high-ranking placement in the search results
Blog: Personal online diary where one can publish personal thoughts
Fragmentation: Separating something into finer units
13. ANSWERS
Self-Assessment Questions
Terminal Questions
1. IMC involves coordinating the various promotional elements and other marketing
activities. Refer 2 for more information.
2. The various roles of IMC are: identifying the target audience, specifying promotion
objectives, setting the promotion budget, selecting the right promotional tools,
designing the promotion, scheduling the promotion. Refer 4 for more information.
3. Consumer behavior is the study of when, why, how and where people do or do not buy
a product or service. It is defined as “the process and activities people engage in when
searching for, selecting, purchasing, using, evaluating and disposing of products and
services so as to satisfy their needs and desires.” Refer 5 for more details.
4. The consumer buying decision process involves problem recognition, information
search, alternative evaluation, purchase decision and post- purchase behavior. Refer to
5.1
Reference: