Integrated Marketing Communication 18MBAMM402

Unit 1:
Role of IMC in marketing process: IMC planning model, Marketing and promotion process
model. Communication process, steps involved in developing IMC programme, Effectiveness
of marketing communications Purpose, Role, Functions, Types, Advertising Vs Marketing
mix, Advertising appeal in various stages of PLC.

Role of IMC in marketing process

Marketing is an organizational function and a set of processes for creating, communicating

and delivering value to customers and for managing customer relationships in ways that
benefit the organization.

IMC is the coordination and integration of all marketing communication tools, avenues,
functions and sources within a company into a seamless program that maximizes the impact on
consumers and other end users at a minimal cost.

Integrated Marketing Communications is a simple concept.

It ensures that all forms of communications and messages are carefully linked together.

IMC is a strategic business process used to plan, develop, execute and evaluate coordinated,
measurable, persuasive brand communication programs 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.

REASONS FOR THE GROWING IMPORTANCE OF IMC

• A shift of marketing – from media advertising to other forms of promotion
particularly consumer – and – trade oriented sales promotion.
• Less reliance on advertisement focused approaches
• A shift in marketplace power from manufacturers to retailers
• Rapid growth and development of database marketing
• Demand for greater accountability
• Rapid growth of internet and the nature of how companies do business, communicate
& interact with consumers.
 Communication with the consumers.
 To persuade the buyer.
 Catalyst for change.
 Contributes for economic growth.

Elements of IMC
Advertising: Paid form of non-personal communication. Promotes ideas, goods, services on an
identified sponsor.
Direct marketing: Type of promotion that entails communicating information on a product,
service or company directly to the customers ( Internet sales, direct mail, Direct response
advertising, Telemarketing, Catalogs, Internet sales, Shopping channels).
Sales promotion: Any number steps that are taken for purpose of obtaining an increased sales -
Coupons, samples, premiums, contests, sweepstakes, refunds, rebates, bonus pack, loyalty
 program, events, trade allowances, POP displays, training programs, trade shows, etc.
Personal selling: Process of communicating with a potential buyer face-to-face with the purpose
of selling a product or service.
Publicity: is unpaid communication technique designed to gain public interest (lectures,
conferences, speeches, presentations, press-conferences, press-release, interviews, talk shows,
special events, ceremonies.
Public relations: Is a deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organization and its publics (ads, newspaper, social networking,
special events, written materials, public service activities).
Internet / Interactive marketing: (Called as online marketing. Process of promoting a brand,
products or services over the internet). Educative, persuasive, builds and maintains customer
relationships.

 IMC helps to create awareness, persuade the customer, use push and pull strategy
towards products and services.
 Most tools used in IMC are complimentary in nature, mutually help each other in
attracting the customers towards products and services.

Factor Advertising Publicity

Control Great Little
Credibility Lower Higher
Reach Measurable Undetermined
Frequency Schedulable Uncontrollable
Cost High / Specific Low / Unspecified
Flexibility High Low
Timing Specified Tentative

IMC 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
Sales PR/ Personal Direct Internet/
Advertising promotion publicity selling marketing interactive
objectives objectives objectives objectives objectives objectives
Sales PR/ Personal Direct Internet/
Message promotion publicity selling marketing interactive
strategy strategy strategy strategy strategy strategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. Review of Marketing Plan: to examine the overall marketing plan, role of advertising in promotion,
to do competitive analysis, assess the environmental influence.
2. Analysis of promotional program: Internal analysis ( product / service, capability of company,
Success and failure of previous program, in-house or external agency, strengths and weaknesses
analysis, USP. External analysis (CB analysis, STP, Competitor and environment analysis, buying
 pattern analysis, decision making process, influencing factors, customer perception and attitude, life
style, criteria for making purchase decision).
3. Analysis of communication process: How does the consumer respond to market communication,
what factors, message need to be used with the consumer, establishing communication objectives
[awareness, knowledge, preference, purchase intention]).
4. Budget determination: setting objective, allocate budget, decide promotional budget, calculate
promotional program cost, what percentage of revenue should be allocated.
5. Developing IMC:
Advertising Sales promotion Direct PR Personal selling
marketing
Set advertising Set sales promotion Set objectives Objectives like: Objective: Persuade
objectives - creating objectives rising funds, the customer in
awareness, image, community trying the product.
purchase intention involvement etc
Determine the Determine how much Allocate budget, Spreading messages Determine budget
budget. Money sales will be obtained develop direct like - environmental
available to achieve with this promotion, marketing strategies. awareness, clean city
objective allocate promotion etc.
budget.
Develop message Develop message Develop message Develop message Create content.
- actual message (creative (creative strategy (creative strategy
to be conveyed strategy)
(creative
strategy)
Choosing TV, Coupons, Internet sales, ads, newspaper, One-to-one
Radio, samples, direct mail, Direct social
newspaper, bill premiums, response networking,
board. contests, advertising, special events,
sweepstakes, Telemarketing, written materials,
refunds, rebates, Catalogs, Internet public service
bonus pack, sales, Shopping activities
loyalty program, channels
events, trade
allowances, POP
displays, training
programs, trade
shows
6. Integrate and implement marketing communication strategy.
Integrate promotional mix, create message, content, Purchase - media, time, space. Design and
distribute sales promotion material, design publicity program, design and implement direct
marketing program.
7. Monitor, evaluate and control IMC.
Collect feedback on advertising effectiveness, effect of sales promotion, effect of public
relations, perception change in sales. Difficult to correlate with the effect og advertising on sales, is
a long term investment.
Marketing and promotion process model

Communication Process.

Communication is defined as the exchange of the information from one person to another.
Success of communication depends on 1) nature of message, 2) interpretation by receiver, 3)
environment in which it is received.
Source may be person or organization, sales person, hired spokesman, celebrity, sometime company itself
communicates to public.
Encoding: symbols or words or pictures etc present the message to be delivered to the receiver, this
process is known as encoding. Symbols and words used by source must be familiar with target audience.
Message: is the information that is to be transmitted. May be verbal or non-verbal, oral, symbolic etc.
Channels: method by which communication travels from the source to the receiver. There are two
channels 1) Personal channel, 2) Non-personal channel.
De-coding: Process of transforming the sender's message back into thought. Depends upon the perception
of the receiver, receiver's knowledge about the subject matter.
Noise: is an interference taking place between the sender and the receiver. Distortion in TV signal,
improper encoding which are unfamiliar with receiver.
Feedback: How the customer received the communication. Objections, posing questions, gestures.
Number of times visited shop, how many phone calls received by shop, how many redeemed coupons.

Steps involved in developing IMC programme

1. Creation of Central Theme for IMC Campaign

2. Creative Strategic Planning Development.
3. Creative Strategic Implementation and Evaluation.
4. Media Planning and Strategy.
5. Selection of Optimal Media.
6. Proposition of Various mediums.
7. Evaluation of different Media effectiveness (Broadcast, Print, Outdoor, Other).
8. Deployment of Direct Marketing in IMC Program.
9. Deployment of Internet as a Promotion Tool.
10. Deployment of Sales Promotion Techniques.
11. Developing Public Relations/ Publicity and Corporate Advertising Promotional Tool.
12. Deploying Personal Selling as a Promotional Tool.

Effectiveness of marketing communication.

Steps in developing effective communication:
Hierarchy of communication effect
• 90% Awareness.
• 70 % Knowledge.
• 40% Liking.
• 25 % Preference.
• 5 % Repurchase / Regular purchase
Five Communication effects (of Advertising and Promotion):
• Category Need (buyers perception of wanting a product or a service - Swift ad)
• Brand awareness (considering particular brand within product category - 'swift')
• Brand attitude (Developing positive attitude) from references, friends, magazines, dealer.
• Brand purchase intention (Favorable attitude, purchase intention). Ad may stimulate brand
purchase intention.
• Purchase decision. (Decision will be depending on other P's of marketing).

Purpose of advertising:

To benefit Advertiser:

• Link between consumer and company.

• Enables to introduce new products / service.
• Helps manufacturer to keep the consumers well-informed.
• Helps in brand image building.
• Smoothens product adoption process.

To benefit Consumers:

• Acts as a guide in choosing the product.

• Saves time.
• Contributes to consumer welfare.
• Provides information about availability and price of product.

Role of advertising

Communication with the consumer.

Persuasion
Catalyst for change.
Contribution to economic group.
Advertising for social cause is a part of non-commercial advertisement (Prevent AIDS).

Functions of Advertising
• Social function (Educating customers. Fighting Cancer, COVID 19).
• Psychological function (Psychological motives. Safe skin care - Nivea).
• Economic function (Value / Price equation conveyed to customer. Alto car).
As per Prof. Jagadish N. Shet:
• Perception.
• Persuasion.
• Reinforcement.
• Reminder.
Types of advertising

Types of advertising focuses on target group, type of impact required, chosen geographical area.

Types are:

• Consumer Advertising (FMCG- Soaps, detergents, cosmetics etc.)

• Service advertising (hotel, hospital, banks, education etc)
• Industrial  Advertising (trade journals, derived demand, builds company image)
• Surrogate advertising (Alcohol ads are banned, same brand soda ad).
• Trade Advertising (Retail ads, Wholesale ads).
• Non-profit Advertising (Anti smoke ad etc)

Advertising appeal in various stages of PLC.

Introduction stage advertising appeal: