Chapter 1 - IMC Intro

Adver&sing

and Promo&on
An Integrated Marke&ng
Communica&ons Perspec&ve
Chapter # 1
An Introduc&on to Integrated Marke&ng Communica&on
Dr. Reham Farouk

 "We've gone from being exposed to about 500 ads a day back in the 1970s to as many as
5,000 a day today." Jay Walker-‐Smith, Yankelovich Consumer Research. Sep 17, 2006
 Aug 25, 2017 Rony Marchell Digital MarkeDng experts Digital marke4ng experts es4mate that
most Americans are exposed to around 4,000 to 10,000 ads each day.
 

How Many Ads Do You See In One Day?
 Some of the places you see or hear ads.
◦  TV news What all marketers are
◦  Drive-‐Fme radio dealing with is an absolute
◦  TV dramas/reality TV
◦  Surfing the internet
sensory overload.

◦  Outlook
Increasing
◦  Social media:
ENGAGEMENT will
 Unexpected areas where we see ads daily.
help adverFsing break
◦  Pop
through the cluSer
◦  Shopping
 
 The compe44on is growing rapidly and it became extremely essenFal to
◦  DifferenFate your brand from others,

◦  Adding liSle extra value,
◦  CreaFng a unique selling proposiFon,
◦  Adding touch points that will differen4ate you from your compe4tor.
 The more we understand “how the consumer perceive the brand” the more
we can generate preference.
 

The Growth Of Adver&sing And Promo&on
In the Past Today
Marketers relied on media advertising Companies are integrating their advertising efforts
to attract customers to their products. with a variety of other communication tools such as
w Websites on the Internet
w Direct marketing
w Sales promotion
w Public relations
w Entertainment marketing Sponsorship of events
The growth of Adver&sing and Promo&on
Evidence of the increasing importance of adverFsing and promoFon comes from the
growth in expenditures in these areas.
In 1980, adverFsing expenditures in the USA were over $100 billion
◦  $53 billion was on media adverFsing
◦  $49 billion was spent on many sales promoFon techniques.
By 2017, total adver4sing and non adver4sing marke4ng expenditure in the USA were
esFmated to be nearly $571 billion

The growth of Adver&sing and Promo&on
By 2017, total adver4sing and non adver4sing marke4ng expenditure in the USA were
esFmated to be nearly $571 billion as follows:
Total spending on
 $127 billion being spent on tradiFonal media adverFsing
(television, radio, magazines, newspapers outdoor, cinema) digital adverFsing by
U.S. marketers is almost
 $68 billion going to digital/online adverFsing
reach $356 billion
 $51 billion going to direct markeFng such as e-‐mail marke4ng
 $25 billion spent on sponsorships and experienFal/event
in 2020
markeFng, Increased 18.6% from
2020
 $300 billion being spent on consumer and trade promoFon.
Sta4sta.com
The Growth Of Adver&sing And Promo&on
Global marke4ng communica4on expenditures have grown as well over the past
several decades
Adver4sing expenditures outside the United States increased from $55 billion in
1980, to an esFmated $382 billion in 2017.

Aèr The USA The Top Countries In AdverFsing Spending Are:
Japan , China, Germany, Brazil and the united kingdom
The Role Of Marke&ng
Marke&ng Defini&on
 The process of planning and execuFng the concepFon, pricing, promoFon, and
distribuFon of ideas, goods, and services to create EXCHANGE that saFsfy
individual and organizaFonal objecFves. American MarkeDng AssociaDon (AMA)
 For exchange to occur:
◦  Two or more par4es with something of value to one another,
◦  The Desire & The ability
◦  A way to communicate.

Not all markeFng transacFons involve the exchange of money for a product or
service.
Marke&ng Revised Defini&on
 AMA adopted revised defini4on of marke4ng in 2007
 MarkeFng is the acFvity, set of insFtuFons, and processes for
 CreaFng, CommunicaFng, Delivering And Exchanging Offering
 That Have VALUE
 for customers, clients, partners, and society at large
 Value is subjecFve successful companies
strive to provide value to their segment
Benefits can be
customers
funcFonal
 VALUE is the customer percep4on of all the (the performance of the product),
BENEFITS of all product or services weighed experienFal
against all the COSTS of acquiring and (what it feels like to use the product),
consuming and/or
psychological
(feelings such as self-‐esteem or status
that result from owning a par4cular
brand)
Marke&ng Mix
The four Ps : Product / Price / Place / Promo&on
• The basic task of marke4ng is combining these four elements into a
marke4ng program to facilitate the poten4al for exchange with
consumers in the marketplace.
• The market must be analyzed through consumer research, and the
resul4ng informa4on must be used to develop an overall markeFng
strategy and mix.

Integrated Marke&ng Communica&ons Defini&on
Developed by American Associa&on of Adver&sing Agencies (the “4As”)
 The 4As’ definiFon focused on the process of

using all forms of promoFon to achieve
maximum communicaFon impact.
 
 At its most basic level, IMC means integra4ng all

the promoFonal tools, so that they work
together in harmony.
Integrated Marke&ng Communica&ons
 The process of integrated marke4ng communica4ons calls for a “BIG-‐PICTURE”
approach
 They see it as a way to coordinate and manage their marke4ng communica4on
programs to ensure that they send consistent message, unified image about the
company and/or its brands to marketplace.
 IMC called for Centralized Messaging funcFon so that everything a company
says and does communicates a common theme and posi4oning.
Integrated Marke&ng Communica&ons
Montblanc uses a variety of marke4ng
Mix elements including:

Price, product design, brand name,
and distribuFon strategy to create a
high quality, upscale image for its
products.

Incorpora4ng a well-‐known celebrity
into this ad help reinforce Montblanc’s
image.

Why Marketers Are Adop&ng The IMC Approach?
 A fundamental reason Why Marketers Are AdopFng The IMC Approach,
simply because they understand the VALUE of IMC.
Ø By coordina4ng their marke4ng communica4on efforts, companies can avoid

duplicaFon.
Ø Take advantage of synergy among promo4onal tools.
Ø  Develop more efficient and effecFve marke4ng communicaFon programs.

Promo&onal Mix
 PromoFon has been defined as the coordina4on of all seller-‐ini4ated efforts to set
up channels of informa4on and persuasion in order to sell goods and services or
promote an idea.
 The basic tools used to accomplish an organiza4ons communica4on objecFves.
1.  Adver4sing
2.  Direct marke4ng
3.  Internet marke4ng
4.  Sales promo4on
5.  Publicity/public rela4ons
6.  Personal selling
1-‐Adver&sing
• Adver4sing is any paid form of ONE WAY NON-‐PERSONAL
COMMUNICATION about an organiza4on, product,
service, or idea by an idenFfied sponsor.
• The Paid aspect of this defini4on reflects the fact that the
space or 4me for an adver4sing message generally must
be bought.
Adver&sing
The American Advertising Federation promotes the value of advertising
• The Non-‐personal component means that adver4sing involves mass media ( TV /
Radio / Magazine / Newspaper ) that can transmit a message to large groups of
individuals, ohen at the same 4me.
• The Non-‐personal nature means there is NO opportunity for immediate feedback from
message recipient.
• It is also a very important promo4onal tool par4cularly for companies whose product
and service are targeted MASS CONSUMER MARKET. Ex: FMCG, Drugs.
Why Adver&sing Is An Important Part Of
Many Marketers' IMC Programs?
1.  Adver4sing is s4ll the most cost-‐effecFve way to reach large audiences.
2.  Popular TV shows can reach as many as 25 to 30 million viewers each week.
3.  Adver4sing is a valuable tool for building brand equity by influencing customer
percep4ons.
4.  Adver4sing is powerful way to provide customer with informaFon.
5.  Adver4sing creates favorable, unique image and associaFon for the brand which can
be very important to sell product or service that are difficult to differenFate on the
basis of funcFon.
2-‐Direct Marke&ng
• Tradi4onally this has not been considered as an
element of promo4onal mix.
• The development of IT and Internet have made Direct

Marke4ng a very powerful tool.
• Direct marke4ng is one of the tool of the IMC in which
the organiza4on communicate directly with target
consumer to generate ( Response and/ or
TransacFon)
Direct Marke&ng
Direct Marke4ng is much more than direct mail and mail order catalog.
It involves a verity of acFviFes including

•  Database management •  Direct-‐response ads through direct mail
•  Direct selling •  Various broadcast and print media.
•  Telemarke4ng

Direct-‐response adverFsing, whereby a product is promoted
through an ad that encourages the consumer to purchase
directly from the manufacturer.
Direct Marke&ng
• Direct response adver4sing is primarily interested
in genera4ng conversions.
•  The primary purpose is to elicit a specific,

immediate acFon. This acFon could be to
◦  Download a resource
◦  Sign up for an account or free trial
◦  Schedule a demo
◦  Or even make a purchase.
Direct Marke&ng
 Changing lifestyles, par4cularly the increase in two-‐income households. This has meant
more discreFonary income but less Fme for in-‐store shopping.
 The availability of credit cards and mobile phone has also facilitated the purchase of
products from direct-‐response ads.
 The convenience of shopping through catalogs or on a company’s website and placing
orders by mail, by phone, or online has led the tremendous growth of direct marke4ng.
Direct Marke&ng
• Many companies now have Extensive Databases.
• These databases are an integral part of companies’ customer rela4onship
management (CRM) programs, which involve the systemaFc tracking of
customer preferences , customer behaviors and modifying a product or
service to meet individual needs and wants.

3-‐Interac&ve/Internet Marke&ng
 Interac4ve media allow for a back-‐and-‐forth flow of
informaFon, whereby users can par4cipate in and modify
the content of the informa4on they receive.
• The new media allow users to perform a variety of

funcFons such as:
• Share informa4on, images and videos.
• Make inquiries.
• Respond to ques4ons.
• Make purchases.
Ø The current world populaFon is 7.9 billion as of September 2021.
Ø  The number of internet users in January 2021 is 4,9 billion.
Ø The number of social media users in July 2021 is 4.5 billion.
Ø (4.6 billion) accessed the internet via mobile devices.

Ø 90.4% of Millennials, 77.5% of Genera4on X, and 48.2% of Baby Boomers are
ac4ve social media users.
  source:
§  sta4sta.com
§  Datareportal.com

• Social media refers to forms of electronic
communica4on, through which users create
online communi4es to create, share and
exchange content (such as Insights,
Experiences, Informa4on, Perspec4ves and
Even Media)

Mobile markeFng is mul4-‐channel online marke4ng technique focused at
reaching a specific audience on their smart phone, tablets, or any other
related devices through websites, E mail, SMS and MMS to specific locaFon,
social media or mobile shopping through applicaFons.

It allow consumers to make shopping more economical, efficient, produc4ve,
and fun.

 For example, Starbucks has developed apps
for iPhones and Android mobile devices that
allow customers to
Ø Find Starbucks locaFons,
Ø Look up nutriFonal informa4on,
Ø Order ahead and pick up drinks to avoid
wai4ng in line, and
Ø Manage their Starbucks rewards accounts.

Mobile Shopping Through Apps
4-‐Sales Promo&on
• Are those marke4ng acFviFes that provide extra value or incenFves to
Ø  The Sales Force

Ø The Distributors
Ø The Consumer
to s4mulate immediate sales.

• Sales promo4on is generally broken into two major categories:
•  Consumer-‐oriented acFviFes
•  Trade-‐oriented acFviFes
Sales Promo&on
Consumer-‐oriented acFviFes  In general, some of the commonly used
(also called Pull Strategy) consumer-‐oriented promoFon tools are
as follows:
• Directed to consumers, customers and 1. Free samples
poten4al customers.
2. Coupons
• Aimed at increasing the sales to exis4ng 3. Discounts
consumers, and to aSract new customers
to the firms. 4. Premium offers
• It encourage consumers to make an 5. Installment sales
immediate purchase and thus can
s4mulate short-‐term sales.
Sales Promo&on
Trade-‐oriented acFviFes
Some of the important trade-‐
(also known as Push Strategy) oriented promoFon tools are as
follows:
• Directed at the dealer, wholesalers,
distributors, and retailers. 1.Cash bonuses
2.Stock return
• Aim to moFvate them to the sell more of
the company’s brand than other brands by 3.Credit terms
push the brand to the consumers and giving 4.Dealer conferences
it priority over other compe4tor brands.
5.Dealer trophies
• To encourage the trade to stock and 6.Push incen4ves
promote a company’s products.
1) 
5-‐Publicity/ Public Rela&ons
Publicity is Non-‐paid, non-‐personal communica4on to generate visibility or awareness for
the organiza4on, products, services or image not directly done under an idenFfied
sponsorship through media
Publicity usually comes in the form of a news story, editorial, or announcement about an
organiza4on and/or its products and services.
• Like adver4sing, publicity involves non-‐personal communica4on to a mass audience.
• Unlike adver4sing, publicity is not directly paid for by the company.
• An advantage of publicity over other forms of promo4on is its credibility.
• Consumers generally tend to be less suspicious toward favorable informa4on about a
product or service when it comes from a source they perceive as unbiased.
Public Rela&ons
Public RelaFon is: "Public rela4ons is a strategic
communicaFon process that builds mutually
beneficial relaFonships between organiza4ons and
their publics.

Public rela4ons can also be defined as the prac4ce
of managing communicaFon between an
organiza4on and its publics.
Public Rela&ons
Public Rela4on generally has a broader objec4ve which is
establish and maintain posi4ve image of the company
among its various public.

• Numbers of important audience include
Investors , Employees, Supplier
Community, Government, Consumers

Ex: “BAHIA” PR tools (Fund raising/ community ac4vi4es
/ Sponsor special events) To enhance organiza4on images.

Companies also use adverFsing as a public relaFons tool.

6-‐Personal selling
Personal selling, is a form of person-‐to-‐person communica4on
In which a seller apempts to assist and/or persuade prospec4ve
buyers to purchase the company's product or service.

Using personal selling insures the following:
•  Communica4on flexibility.
•  Tailoring the message to the customer's specific needs or situa4on.
•  Immediate and precise feedback.
•  Targe4ng efforts specific markets and customer types that are the best
prospects for the company's product or service.
IMC Involves Audience Contact
 A touch point refers to each and every opportunity the customer has to see or hear
about the company and/or its brands or have an encounter or experience with it.
 The four basic categories of touch point
•  Company created touch points are planned marke4ng communica4on messages created
by the company.
•  Intrinsic touch points are interac4ons that occur with a company or brand during the
process of buying or using the product or service.
•  Unexpected touch points are unan4cipated references or informa4on about a company
or brand that a customer or prospect receives that is beyond the control of the
organiza4on ex: WOM , Reviews.
•  Customer ini4ated touch points are interac4ons that occur whenever a customer or
prospect contacts a company.
 IMC Touch Points: Control vs. Impact
 company-‐planned touch points are the easiest to control but are lowest in terms of impact.
 At the other extreme, unexpected messages are ohen the most impacrul but are the most
difficult to control.
 
Integrated marke&ng communica&ons management
 IMC Management: involves the process of planning, execu4ng, evalua4ng, and
controlling the use of the various promo4onal-‐mix elements to effec4vely
communicate with target audiences.
•  The marketer must consider which promoFonal tools to use.

•  How to integrate them to achieve marke4ng and communica4on objecFves.
•  How to distribute the total marke4ng communica4ons budget across the various
promo4onal-‐mix elements.
•  What percentage of the budget should be allocated to adver4sing, sales promo4on, the
Internet, sponsorships, and personal selling?
George E. Belch & Michael A. Belch Brakes
The IMC Planning Process:
1.  Review of the Marke4ng Plan.
2.  Promo4onal Program Situa4onal Analysis.
◦  (Internal Analysis/ External Analysis)
3.  Analysis of the Communica4on Process.

4.  Budget Determina4on.
5.  Developing the IMC Program.
6.  Implement marke4ng communica4on strategies.
7.  Monitoring , Evalua4on, and control.
The IMC Planning Process
1.Review of Marke&ng Plan
1.  Detailed situa4onal analysis and environmental factors.
2.  Marke4ng objec4ves.
3.  Marke4ng strategy ( target market decisions, the 4Ps).
4.  Program implementa4on.
5.  Monitoring and evalua4ng performance.
2.Promo&onal Program Situa&on Analysis
Internal analysis
PromoFonal
Program
SituaFon Analysis
External analysis
• It focuses on the factors that influence or/ are relevant to the development of a
promo4onal strategy.
Promo&onal Program Situa&on Analysis
A)The internal analysis
A)The internal analysis (FIRM) A)The internal analysis ( PRODUCT)
• Firm’s ability to implement promo4onal • The rela4ve strengths and weaknesses
program. of the product or service.
• Review of previous program. • Advantages and disadvantages.
• Assessing strength, weaknesses of • Unique selling points or benefits
performing the promo4onal func4ons in-‐ • Its packaging, price, and design
house as opposed to hiring an external
agency (or agencies).
• Assessing the strengths and weaknesses of
the firm or the brand from an image
perspec4ve.
Promo&onal Program Situa&on Analysis
B)The external analysis
• An important part of the external analysis
is a detailed consideraFon of:
B)The external analysis focuses on factors
such as: •  Customers' characteris4cs
• Consumer behavior analysis. •  Buying paperns.

• Market segmenta4on and target marke4ng. •  Their decision processes.
• Posi4oning strategies and compe4tors. •  Factors influencing their purchase decisions.
• Compe44ve analysis.
•  Consumers' percep4ons and autudes.
• Environmental analysis.
•  Lifestyles.
•  Criteria for making purchase decisions.

3.Analysis of the communica&on process
In this stage we examines
How The Company Can EffecFvely Communicate With Consumer In Its Target Market
•  Analyze the process consumer will go through in RESPONDING to marke4ng
communica4ons
•  Analyze receiver’s level of involvement
•  Decisions regarding the source, the message, the channel
•  Establish communica4ons goals and objec4ves

3.Analysis of the communica&on process
Establishing communicaFon goals and objecFves is an essenFal step.
CommunicaFon objecFves refer to what the firm seeks to accomplish with its
promo4onal program
• CommunicaFon objecFves includes:

• Crea4ng awareness or knowledge about a product and its apributes or benefits.
• Crea4ng an image.
• Developing favorable autudes, preferences.
• Develop purchase inten4ons.
4.Budget Determina&on
Two basic QuesFons to be asked:
What will the promoFonal program cost?
Ø Set temporary marke4ng communica4on budgets
How will the money be allocated?
Ø Allocate temporary budget
w IDEALY / IN REALITY

w At this stage, the budget is ohen temporary.
w It may not be finalized unFl specific promoFonal-‐mix strategies are developed.
5.Developing The IMC Program
• Two important aspects of the adverFsing program are:
•  Develop of Message ( creaFve strategy)
Ø  Basic appeal and message want to be convey.
•  Develop of Media strategy

Ø Determine the communica4on channels will be used to deliver the adver4sing
message to target audience
This task requires careful evaluaFon of the media opFons’ advantages and limitaFons, costs, and
ability to deliver the message effecFvely to the target market.
7.Monitoring, Evaluating and Controlling
w It is important to:
w Evaluate promo4onal program results/
effec4veness.
w Take measures to control and adjust
promo4onal strategies.

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Adver&sing

Dr. Reham Farouk

◦ DiﬀerenFate your brand from others,

The 4As’ deﬁniFon focused on the process of

At its most basic level, IMC means integra4ng all

Ø By coordina4ng their marke4ng communica4on eﬀorts, companies can avoid

Ø Take advantage of synergy among promo4onal tools.

Ø Develop more eﬃcient and eﬀecFve marke4ng communicaFon programs.

• The development of IT and Internet have made Direct

• The primary purpose is to elicit a speciﬁc,

• The new media allow users to perform a variety of

Ø (4.6 billion) accessed the internet via mobile devices.

Ø The Sales Force

• The marketer must consider which promoFonal tools to use.

3. Analysis of the Communica4on Process.

• Consumer behavior analysis. • Buying paperns.

• Criteria for making purchase decisions.

• Analyze receiver’s level of involvement

• Decisions regarding the source, the message, the channel

• Establish communica4ons goals and objec4ves

• CommunicaFon objecFves includes:

w IDEALY / IN REALITY

• Develop of Media strategy

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◦  DiﬀerenFate your brand from others,

 The 4As’ deﬁniFon focused on the process of

 At its most basic level, IMC means integra4ng all

Ø By coordina4ng their marke4ng communica4on eﬀorts, companies can avoid

Ø Take advantage of synergy among promo4onal tools.

Ø  Develop more eﬃcient and eﬀecFve marke4ng communicaFon programs.

• The development of IT and Internet have made Direct

•  The primary purpose is to elicit a speciﬁc,

• The new media allow users to perform a variety of

Ø (4.6 billion) accessed the internet via mobile devices.

Ø  The Sales Force

•  The marketer must consider which promoFonal tools to use.

3.  Analysis of the Communica4on Process.

• Consumer behavior analysis. •  Buying paperns.

•  Criteria for making purchase decisions.

•  Analyze receiver’s level of involvement

•  Decisions regarding the source, the message, the channel

•  Establish communica4ons goals and objec4ves

• CommunicaFon objecFves includes:

w IDEALY / IN REALITY

•  Develop of Media strategy