An Introduction to Integrated Marketing Communications

Defining IMC

IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programmes with consumers, customers, prospects employees and other relevant external and internal audiences.

The goal of IMC is to generate short-term financial returns and build long-term brand value.

Integrated Marketing CommunicationsA marketing communications planning concept

that recognises 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

Point ofpurchase

Publicity

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

Directresponse

Traditional Approach to Marketing Communications

MediaAdver-tising

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

Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing Special

events

Packaging Salespromotion

Directresponse

MediaAdver-tising

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

The Marketing & Promotional Mixes

Marketing Mix:•Product or Service•Pricing •Channels of Distribution•Promotion

Promotional Mix:•Advertising•Direct Marketing• Interactive/internet marketing•Sales Promotion•Publicity/Public Relations•Personal Selling

Corporate Level Message Sources Administration Manufacturing/ Marketing Finance Human

Legal Operations Resources

Cross-Functional Brand Equity (IM) Team

Marketing Level Message Sources

Product Price Marketing Distribution Mix Mix Communication Mix

Cross-Functional IMC Team

Marketing Communication Level Message Sources

Personal Adver- Sales Direct Public Pack- EventsSales tising Promotion Marketing Relations aging

Interactivity

Other StakeholdersEmployeesInvestorsFinancial CommunityGovernmentRegulators

CustomersDistributorsSuppliersCompetition

ConsumersLocal CommunityMediaInterest Groups

Communication-Based Marketing Model

Communication Levels

Corporate Level Messages sent by a company’s overall business practices

and philosophies such as mission, labour practices, philanthropies, culture and other processes

Marketing LevelMessages sent by or inferred from by various aspects of marketing mix such as product performance, design, appearance, pricing and distribution

Marketing Communication LevelStrategic and executional consistency among all forms of marketing communication

Traditional compensation Performance-based compensation Traditional compensation Performance-based compensation

Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Limited Internet availability Widespread Internet availability

Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Reasons for the Growing Importance of IMC

From Toward

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

IMC and Branding

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

2005 Brand Value(Billions of Dollars)

1. Coca-Cola$67.52

2. Microsoft$59.94

3. IBM$53.38

4. GE $46.995. Intel

$35.596. Nokia

$26.457. Disney

$26.448. McDonald’s

$26.019. Marlboro

$24.8410. Mercedes

$21.19

IMC plays a major role in the process of developing and sustaining brand identity and equity.

Coca Cola Demonstrates IMC

Coca Cola Demonstrates IMC

Bus shelter advert

Coca Cola Demonstrates IMC

Internet banner

Any paid form of non-personal communication about an organisation, product, service, idea or cause by an identified sponsor.

Advertising

Disadvantages of advertising– High costs of producing

and running ads– Credibility problems and

consumer skepticism– Clutter– Difficulty in determining

effectiveness

Advantages of advertising– Advertiser controls the

message– Cost effective way to

communicate with large audiences

– Effective way to create brand images and symbolic appeals

– Often can be effective way to strike responsive chord with consumers

                                           

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Business-to-Business Advertising

Organizations

National Advertising

Retail/Local Advertising

Professional Advertising

Trade Advertising

National Advertising

Retail/Local Advertising

Business-to-Business Advertising

Professional Advertising

Classifications of Advertising

Consumers

An example of a business-to-business ad

Source: Courtesy Honeywell.

A system of marketing by which organisations communicate directly with target customers to generate a response and/or a transaction.

Direct Marketing

DirectResponse

AdvertisingDirect

ResponseAdvertising

DirectMail

Catalogues

Telemarketing

InternetSales

ShoppingChannels

DirectMail

Telemarketing

Catalogues

ShoppingChannels

Direct Marketing is Part of IMC

DirectMarketing

Bose uses Direct Response

A form of marketing communication through interactive media which allow for a two-way flow of information whereby users can participate in and modify the content of the information they receive in real time.

Interactive/Internet Marketing

Builds and maintains customer

relationships

Obtains customer database

information

Communicates and interacts with buyers

Provides customer

service and support

Educates or informs

customers

A persuasive advertising

medium

A sales tool or an actual sales vehicle

Obtains customer database

information

Communicates and interacts with buyers

Provides customer

service and support

Educates or informs

customers

A persuasive advertising

medium

A sales tool or an actual sales vehicle

Using the Internet as an IMC Tool

TheInternet

Sharp Aims To Drive People to Its Web Site

Sharp Aims To Drive People to Its Web Site

The Internet is an important IMC tool for American Airlines

Source: Courtesy American Airlines.

Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Sales Promotion

Consumer-oriented

[For end-users]

Trade-oriented[For resellers]

Sales Promotion Tools

EventsEventsLoyalty ProgramsLoyalty Programmes

Bonus Packs Bonus Packs Refunds/Rebates Refunds/Rebates

Contests/SweepstakesContests/SweepstakesPremiumsPremiums (Gifts)SamplesSamplesCouponsCoupons

CoopAdvertising

CoopAdvertising

TradeShowsTradeShows

TrainingProgramsTraining

Programmes

POP DisplaysPOP Displays

TradeAllowances

Introduce new products

Get existing customers to buy

more

Attract new customers

Maintain sales in off season

Increase retail inventories

(stocks)

Tie in advertising & personal

selling

Enhance personal selling

Combat competition

Introduce new products

Get existing customers to buy

more

Attract new customers

Maintain sales in off season

Increase retail inventories

(stocks)

Tie in advertising & personal

selling

Enhance personal selling

Various Uses of Sales Promotion

SalesPromotion

Public Relations

The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organisation with the public interest, and executes a programme of action to earn public understanding and acceptance.

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Public Relations Tools

BP’s Corporate Advertising

•Aims to build image, trust, credibility•Guards against backlash (Shell)•Adds to brand equity

BP

Publicity

Non-personal communication regarding an organisation, product, service, or idea not directly paid for or run under identified sponsorship.

InterviewsInterviews

FeatureArticles

SpecialEvents

PressConferences

NewsReleases

FeatureArticles

SpecialEvents

NewsReleases

Publicity Vehicles

PublicityVehicles

Advertising Versus Publicity

Advertising Publicity

TentativeLow

Low/Unspecified

Uncontrollable

GreatLower

Measurable Schedulable

High/Specific High

Specifiable

UndeterminedHigherLittle

Factor

Control

Credibility

Reach

Frequency

Cost

Flexibility

Timing

Direct person-to-person communication whereby a seller attempts to assist and/or persuade prospective buyers to to purchase a product or service.

Personal Selling

Disadvantages of personal selling– High costs per contact– Expensive way to reach large

audiences– Difficult to have consistent and

uniform message delivered to all customers

Advantages of personal selling– Direct contact between buyer

and seller allows for more flexibility

– Can tailor sales message to specific needs of customers

– Allows for more direct and immediate feedback

– Sales efforts can be targeted to specific markets and customers who are best prospects.

Integrated Marketing Communications Planning Model

Promotional programme situation analysisAnalysis of the communications process

Budget determinationDevelop integrated marketing communications programmes

Review of marketing plan

Advertising Salespromotion

PR/publicity

Personalselling

Directmarketing

Advertisingobjectives

Salespromotionobjectives

PR/publicity

objectivesPersonalselling

objectivesDirect

marketingobjectives

Messagestrategy

Salespromotionstrategy

PR/publicitystrategy

Personalselling

strategyDirect

marketingstrategy

Integrate and implement marketing communications strategiesMonitor, evaluate and control IMC Programme

Internet/interactiveInternet/

interactiveobjectivesInternet/

interactivestrategy

Co-ordinating the promotional mix elements to develop a controlled, integrated programme of effective marketing communications.

Promotional Management

Considerations for developing the promotional programme include: Type of product Buyer’s decision process Stage of product life cycle Channels of distribution