An Introduction to Integrated An Introduction to Integrated Marketing CommunicationsMarketing Communications

Definition of IntegratedDefinition of IntegratedMarketing CommunicationsMarketing Communications

A concept of marketing communications A concept of marketing communications planning that recognizes the added value of planning that recognizes the added value of a comprehensive plan that evaluates the a comprehensive plan that evaluates the strategic roles of a variety of communication strategic roles of a variety of communication disciplines and combines these disciplines disciplines and combines these disciplines to provide clarity, consistency and maximum to provide clarity, consistency and maximum communications impact (through the communications impact (through the seamless integration of discrete messages).seamless integration of discrete messages).

IDEAS INVOLVED IN IMC IDEAS INVOLVED IN IMC APPROACHAPPROACH

Despite the increasing use of the term IMC approach by Despite the increasing use of the term IMC approach by both practitioners and academics in recent years, there both practitioners and academics in recent years, there is little agreement on what the term actually means. is little agreement on what the term actually means. According to one recent review, at least two related According to one recent review, at least two related ideas are involved :ideas are involved :

One-voice Marketing CommunicationsOne-voice Marketing Communications Integrated CommunicationsIntegrated Communications

The different elements of the communications mix The different elements of the communications mix have to be used in a way that the strengths of one are have to be used in a way that the strengths of one are used to offset the weakness of another.used to offset the weakness of another.

One-voice Marketing Communications One-voice Marketing Communications As consumers increasingly being to be As consumers increasingly being to be addressed by the same marketer in a addressed by the same marketer in a variety of different ways ( i.e. through 5 variety of different ways ( i.e. through 5 tools of promotion) - there is a need to tools of promotion) - there is a need to ensure a consistency of positioning, ensure a consistency of positioning, message, and tone across these different message, and tone across these different media. These different communications media. These different communications must reach consumers with one voice.must reach consumers with one voice.

II. Integrated CommunicationsII. Integrated Communications A marketer’s consumer communications need to not only raise A marketer’s consumer communications need to not only raise

brand awareness, or create or change brand preference and brand awareness, or create or change brand preference and

image, or to get sales trial or repurchase, but to do all of the image, or to get sales trial or repurchase, but to do all of the

above at the same time. Increasing image without getting a sales above at the same time. Increasing image without getting a sales

result is not good enough and getting short-term sales (e.g. via result is not good enough and getting short-term sales (e.g. via

sales promotion) at the expense of a brand’s long-term image is sales promotion) at the expense of a brand’s long-term image is

also courting disaster. Thus , all marketing communications also courting disaster. Thus , all marketing communications

should attempt to simultaneously achieve targeted should attempt to simultaneously achieve targeted

communication goals (e.g. raising attitudes or building image) communication goals (e.g. raising attitudes or building image)

and lead to some behavioral action (e.g. trial or repurchase). and lead to some behavioral action (e.g. trial or repurchase).

The Marketing The Marketing && Promotional Mixes Promotional Mixes Marketing Mix:Marketing Mix:

• Product or ServiceProduct or Service• Pricing Pricing • Channels of DistributionChannels of Distribution• PromotionPromotion

Promotional Mix:Promotional Mix:• AdvertisingAdvertising• Direct MarketingDirect Marketing• Interactive/internet marketingInteractive/internet marketing• Sales PromotionSales Promotion• Publicity/Public RelationsPublicity/Public Relations• Personal SellingPersonal 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 LevelsCommunication Levels

Corporate LevelCorporate Level Messages sent by a company’s overall business practices Messages sent by a company’s overall business practices and philosophies such as mission, labor practices, and philosophies such as mission, labor practices, philanthropies, culture and other processesphilanthropies, culture and other processes

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

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

Reasons For Growing Importance of Reasons For Growing Importance of IMCIMC

Shift from media advertising to other forms of marketing Shift from media advertising to other forms of marketing communicationcommunication

Movement away from advertising focused- approaches that Movement away from advertising focused- approaches that emphasize mass media emphasize mass media

Shift in power from manufacturers to retailersShift in power from manufacturers to retailers

Rapid growth of database marketingRapid growth of database marketing

Demands for greater ad agency accountabilityDemands for greater ad agency accountability

Changes in agency compensationChanges in agency compensation

Rapid growth of the InternetRapid growth of the Internet

Increasing importance of brandingIncreasing importance of branding

IMC Communication ToolsIMC Communication Tools

IMC Communication Tools

AdvertisingDirect

MarketingInteractive/

Internet Marketing

SalesPromotion

Publicity/PublicRelations

PersonalSelling

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

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

AdvertisingAdvertising

Disadvantages of Disadvantages of advertisingadvertising– High costs of producing and High costs of producing and

running adsrunning ads– Credibility problems and Credibility problems and

consumer skepticismconsumer skepticism– ClutterClutter– Difficulty in determining Difficulty in determining

effectivenesseffectiveness

Advantages of advertisingAdvantages of advertising– Advertiser controls the Advertiser controls the

messagemessage– Cost effective way to Cost effective way to

communicate with large communicate with large audiencesaudiences

– Effective way to create brand Effective way to create brand images and symbolic images and symbolic appealsappeals

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

                                           

Classifications of Advertising Classifications of Advertising

Advertising to Consumer MarketsAdvertising to Consumer MarketsNational advertisingNational advertisingRetail/local advertisingRetail/local advertisingAdvertising to increase demandAdvertising to increase demand

–Primary demand for the product categoryPrimary demand for the product category–Selective demand for a specific brandSelective demand for a specific brand

Advertising to Consumer MarketsAdvertising to Consumer MarketsNational advertisingNational advertisingRetail/local advertisingRetail/local advertisingAdvertising to increase demandAdvertising to increase demand

–Primary demand for the product categoryPrimary demand for the product category–Selective demand for a specific brandSelective demand for a specific brand

Business & professional advertising•Business-to-business advertising•Professional advertising•Trade advertising

Business & professional advertising•Business-to-business advertising•Professional advertising•Trade advertising

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

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

Direct MarketingDirect Marketing

Disadvantages of direct marketingDisadvantages of direct marketing Lack of customer receptivity and very Lack of customer receptivity and very

low response rateslow response rates Clutter (too many messages)Clutter (too many messages) Image problems – particularly with Image problems – particularly with

telemarketingtelemarketing

Advantages of direct marketingAdvantages of direct marketing Changes in society have made Changes in society have made

consumers more receptive to direct-consumers more receptive to direct-marketingmarketing

Allows marketers to be very selective Allows marketers to be very selective and target specific segments of and target specific segments of customerscustomers

Messages can be customized for Messages can be customized for specific customers.specific customers.

Effectiveness easier to measureEffectiveness easier to measure

Direct MarketingDirect Marketing

Direct marketing methodsDirect marketing methods– Direct mailDirect mail– CatalogsCatalogs– TelemarketingTelemarketing– Direct response adsDirect response ads– Direct sellingDirect selling– InternetInternet

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.

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 MarketingInteractive/Internet Marketing

Disadvantages of interactive/Disadvantages of interactive/

internet marketinginternet marketing– Internet is not yet a mass medium Internet is not yet a mass medium

as many consumers lack accessas many consumers lack access– Attention to Internet ads is very lowAttention to Internet ads is very low– Great deal of clutter on the InternetGreat deal of clutter on the Internet– Audience measurement is a Audience measurement is a

problem on the Internetproblem on the Internet

Advantages of interactive/ Advantages of interactive/ internet marketinginternet marketing

Can be used for a variety of IMC Can be used for a variety of IMC functions functions

Messages can be tailored to specific Messages can be tailored to specific interests and needs of customersinterests and needs of customers

Interactive nature of the Internet leads Interactive nature of the Internet leads to higher level of involvementto higher level of involvement

Can provide large amounts of Can provide large amounts of information to customers.information to customers.

Interactive/Internet MarketingInteractive/Internet Marketing

Use of the Internet as an IMC ToolUse of the Internet as an IMC Tool– As an advertising medium to inform, educate As an advertising medium to inform, educate and persuade customersand persuade customers– As a direct sales tool As a direct sales tool – To obtain customer database informationTo obtain customer database information– To communicate and interact with buyersTo communicate and interact with buyers– To provide customer service and supportTo provide customer service and support– To build and maintain customer relationshipsTo build and maintain customer relationships– As a tool for implementing sales promotion As a tool for implementing sales promotion – As a tool for implementing publicity/public As a tool for implementing publicity/public

relations programsrelations programs

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

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

Sales PromotionSales Promotion

Trade-orientedTrade-oriented– Targeted toward marketing Targeted toward marketing

intermediaries such as intermediaries such as retailers, wholesalers, or retailers, wholesalers, or distributorsdistributors Promotion allowancesPromotion allowances Merchandise allowancesMerchandise allowances Price dealsPrice deals Sales contestsSales contests Trade showsTrade shows

Consumer-orientedConsumer-oriented– Targeted to the ultimate Targeted to the ultimate

users of a product or users of a product or serviceservice CouponsCoupons SamplingSampling PremiumsPremiums RebatesRebates ContestsContests SweepstakesSweepstakes POP materialsPOP materials

Sales Promotion UsesSales Promotion Uses

Introduce new productsIntroduce new products Get existing customers to buy moreGet existing customers to buy more Attract new customersAttract new customers Combat competitionCombat competition Maintain sales in off seasonMaintain sales in off season Increase retail inventoriesIncrease retail inventories Tie in advertising & personal sellingTie in advertising & personal selling Enhance personal selling effortsEnhance personal selling efforts

PublicityPublicity

Advantages of publicityAdvantages of publicity–CredibilityCredibility–Low cost (although not totally free)Low cost (although not totally free)–Often results in word-of-mouthOften results in word-of-mouth

Disadvantages of publicityDisadvantages of publicity–Not always under control of organizationNot always under control of organization–Can be negativeCan be negative

Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Publicity VehiclesPublicity Vehicles

News Releases:News Releases:– Single-page news stories sent to media who might print or Single-page news stories sent to media who might print or

broadcast the content.broadcast the content.

Feature Articles:Feature Articles:– Larger manuscripts composed and edited for a particular medium.Larger manuscripts composed and edited for a particular medium.

Captioned Photos:Captioned Photos:– Photographs with content identified and explained below the Photographs with content identified and explained below the

picture.picture.

Press Conferences:Press Conferences:– Meetings and presentations to invited reporters and editors.Meetings and presentations to invited reporters and editors.

Special Events:Special Events:– Sponsorship of events, teams, or programs of public value.Sponsorship of events, teams, or programs of public value.

ADVANTAGES AND DISADVANTAGES ADVANTAGES AND DISADVANTAGES OF PROMOTIONAL COMPONENTSOF PROMOTIONAL COMPONENTS

Promotionalcompo.

Scope Cost Advantages Dis -Advantages

Advertising Mass RelativityInexpensive percontact

Allowsexpressivenessand control overmessage

Hard to measureresults

Publicity Mass Inexpensive Has high degreeof credibility

Not as easilycontrolled as otherforms

Personal selling Personal Expensive percontact

Permits flexiblepresentation &gains immediateresponse

Costs more than allother forms percontact

SalesPromotion

Mass Can be costly Gains attentionand hasimmediate effect

Easy for others toimitate

(***Packaging and public relations also play Imp.role in promotion mix.)

Public RelationsPublic Relations

Tools used by Public RelationsTools used by Public Relations–PublicityPublicity–Special publicationsSpecial publications–Community activity participationCommunity activity participation–Fund-raisingFund-raising–Special event sponsorshipSpecial event sponsorship–Public affairs activitiesPublic affairs activities

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

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

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

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

Personal SellingPersonal Selling

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

audiencesaudiences– Difficult to have consistent and Difficult to have consistent and

uniform message delivered to all uniform message delivered to all customerscustomers

Advantages of personal sellingAdvantages of personal selling– Direct contact between buyer and Direct contact between buyer and

seller allows for more flexibilityseller allows for more flexibility– Can tailor sales message to Can tailor sales message to

specific needs of customersspecific needs of customers– Allows for more direct and Allows for more direct and

immediate feedbackimmediate feedback– Sales efforts can be targeted to Sales efforts can be targeted to

specific markets and customers specific markets and customers who are best prospects.who are best prospects.

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Promotional ManagementPromotional Management

Considerations for developing the Considerations for developing the promotional program include:promotional program include:–Type of productType of product–Buyer’s decision processBuyer’s decision process–Stage of product life cycleStage of product life cycle–Channels of distributionChannels of distribution

Models That Help to Models That Help to Conceptualize the Buying ProcessConceptualize the Buying Process Two very specific models that aid in Two very specific models that aid in

understanding the buying process, understanding the buying process, as well as in framing communication as well as in framing communication are:-are:-

(1) A I D A Model(1) A I D A Model

(2) Hierarchy–of–effects model(2) Hierarchy–of–effects model

A I D A MODELA I D A MODEL

Attention (awareness)Attention (awareness) InterestInterest DesireDesire Action Action According to ‘AIDA’ model, A marketer should begin According to ‘AIDA’ model, A marketer should begin

by winning attention or gaining awareness, creating by winning attention or gaining awareness, creating interest, inspiring desire and precipitating the action interest, inspiring desire and precipitating the action for purchase, in the prospects in order to enable its for purchase, in the prospects in order to enable its product to be adopted by the target public.product to be adopted by the target public.

Hierarchy–of–effects modelHierarchy–of–effects model

Awareness

Knowledge

Liking

Preference

Conviction

Purchase