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 Communications

A 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

Traditional Approach to Marketing Communications

Publicity Sales promotion

Point of purchase

Special events

Media Advertising

Packaging

Direct response

Public relations Direct marketing

Interactive marketing

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

Contemporary IMC Approach

Sales promotion Direct response

Packaging

Point of purchase

Publicity

Media Advertising

Public relations

Interactive marketing

Direct marketing

Special events

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

The Marketing

&

Promotional Mixes

Marketing Mix:

Product or Service Pricing Channels of Distribution Promotion Advertising Direct Marketing Interactive/internet marketing Sales Promotion Publicity/Public Relations Personal Selling

Promotional Mix:

Communication-Based Marketing Model

Corporate Level Message Sources

Administration Manufacturing/ Marketing Finance Human Legal Operations Resources Cross-Functional Brand Equity (IM) Team

Other Stakeholders Employees Investors Financial Community Government Regulators

Distributors Customers Suppliers Competition

Marketing Level Message Sources Product Mix Price Mix Marketing Distribution Communication Mix
Interactivity

Cross-Functional IMC Team Marketing Communication Level Message Sources Personal Adver- Sales Direct Public Pack- Events Sales tising Promotion Marketing Relations aging

Consumers Local Community Media Interest Groups

Communication Levels

Corporate Level
Messages sent by a companys overall business practices and philosophies such as mission, labour practices, philanthropies, culture and other processes

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

Marketing Communication Level

Strategic and executional consistency among all forms of marketing communication

Reasons for the Growing Importance of IMC

From
Media advertising Mass media Manufacturer dominance General focus Low agency accountability Traditional compensation Limited Internet availability

Toward
Multiple forms of communication Specialized media Retailer dominance Data-based marketing Greater agency accountability
Performance-based compensation

Widespread Internet availability

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

2005 Brand Value

(Billions of Dollars)

1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Nokia 7. Disney 8. McDonalds 9. Marlboro 10. Mercedes

$67.52 $59.94 $53.38 $46.99 $35.59 $26.45 $26.44 $26.01 $24.84 $21.19

Coca Cola Demonstrates IMC

Coca Cola Demonstrates IMC

Bus shelter advert

Coca Cola Demonstrates IMC

Internet banner

Advertising
Any paid form of non-personal communication about an organisation, product, service, idea or cause by an identified sponsor. Disadvantages of advertising Advantages of advertising Advertiser controls the High costs of producing message and running ads Cost effective way to Credibility problems and communicate with large consumer skepticism audiences Effective way to create Clutter brand images and Difficulty in determining symbolic appeals effectiveness Often can be effective way to strike responsive chord with consumers

Classifications of Advertising
National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising

Consumers

Business-to-Business Advertising Professional Advertising Trade Advertising

Organizations

An example of a business-to-business ad

Source: Courtesy Honeywell.

Direct Marketing

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

Direct Marketing is Part of IMC

Direct Mail Internet Sales Direct Response Advertising

Direct Marketing
Shopping Channels Catalogues Telemarketing

Bose uses Direct Response

Interactive/Internet Marketing

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.

Using the Internet as an IMC Tool

The Internet

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

Builds and maintains customer relationships

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.

Sales Promotion

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

Sales Promotion Tools

Coupons Samples Premiums Premiums (Gifts)
Contests/Sweepstakes

Trade Allowances

POP Displays Training Programmes Programs Trade Shows Coop Advertising

Refunds/Rebates Bonus Packs Loyalty Loyalty Programmes Programs Events

Consumeroriented
[For end-users]

Trade-oriented
[For resellers]

Various Uses of Sales Promotion

Introduce new products Get existing customers to buy more

Combat competition

Enhance personal selling

Sales Promotion

Attract new customers

Maintain sales in off season

Tie in advertising & personal selling

Increase retail inventories (stocks)

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.

Public Relations Tools

Publicity Vehicles Special Publications

Community Activities

Corporate Advertising

Cause-related Marketing

Public Affairs Activities

Special Event Sponsorship

BPs 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.

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences

Special Events

Advertising Versus Publicity

Factor Control Credibility Reach Advertising Great Lower Measurable Schedulable Publicity Little Higher Undetermined

Frequency
Cost Flexibility Timing

Uncontrollable
Low/Unspecified

High/Specific
High Specifiable

Low Tentative

Personal Selling
Direct person-to-person communication whereby a seller attempts to assist and/or persuade prospective buyers to to purchase a product or service.
Advantages of personal selling Direct contact between buyer and seller allows for more flexibility Can tailor sales message to specific needs of customers Disadvantages of personal selling Allows for more direct and High costs per contact immediate feedback Sales efforts can be targeted Expensive way to reach large to specific markets and audiences customers who are best Difficult to have consistent and prospects. uniform message delivered to all customers

Integrated Marketing Communications Planning Model

Review of marketing plan Promotional programme situation analysis Analysis of the communications process Budget determination Develop integrated marketing communications programmes Advertising Sales promotion Sales promotion objectives Sales promotion strategy PR/ publicity PR/ publicity objectives PR/ publicity strategy Personal selling Personal selling objectives Personal selling strategy Direct marketing Direct marketing objectives Direct marketing strategy Internet/ interactive Internet/ interactive objectives Internet/ interactive strategy

Advertising objectives
Message strategy

Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Programme

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

Considerations for developing the promotional programme include:

Type of product Buyers decision process Stage of product life cycle Channels of distribution