Integrated Marketing Communication

Dr. Smita Sharma

 Integrated Marketing Communication
Introduction: Concept of Integrated Marketing Communications (IMC), Process and Role of IMC in Marketing,
Promotion mix - Advertising (Classification of advertising, types, advertising appropriation, advertising
campaigns), Sales Promotion (Different types of Sales Promotion, relationship between Sales promotion and
advertising) , Publicity (Types of Publicity, relationship between advertising and publicity), Personal Selling,
Direct marketing and direct response methods, Interactive / Internet Marketing. Objectives for IMC Programs:
Determining Promotional Objectives, DAGMAR approach, establishing and allocating promotional budget. IMC
Message Design-The Creative concept development; the creative processes of the different forms of IMC; AIDA
model Considerations for creative idea Visualization. (Creative planning, creative strategy development,
Communications appeals and execution, Message strategy design considerations, Source of the message,
Message integration, Advertorials and Infomercials, Client Evaluation and approval of Creative Strategy/work.
Media Management- Media Types and their characteristics; Setting Media objectives; Considering key media
concepts; Media planning; Media Strategy; Media buying; Cross media concept; and media research, online
advertisement .Facilitators in IMC-Advertising Agencies – their role, functions, organisation, Remuneration,
client agency relationship, account Planning; Hoarding Contractors; Printers, etc. Ethics and social responsibility
in IMC campaigns. Emerging Concepts and Issues Marketing Communications
References

1. Belch, George, Belch, A. Michael, Poorani, Keyoor, Advertising and

Promotion, (9e), McGraw Hill Education, 2017.

2. Kenneth Clow & Donald Baack, Integrated Advertising, Promotion, &

Marketing Communications, (4e), Pearson Education, 2009.

3. Batra, Rajeev; G. John Myers’ and Aaker, A. David, Advertising

Management, (5e), Pearson, 2016.
The Growth of Advertising and Promotion
Advertising has evolved into a vital communication system for both consumers and
businesses.

In 1980 advertising and sales promotion were the dominant forms of marketing
communication used by most companies and total expenditures in the US across the two was
just over $100 million.

Media advertising accounted for $53 billion while $47 billion was spent on sales promotion
techniques such as sweepstakes, contests, premiums, rebates and trade allowances.
The Growth of Advertising and Promotion

India's total ad-spend to grow 15% and climb up to Rs. 72,169 crore in
2019 ( 10th March, Economic Times)

Between 2018 and 2021, online video advertising will grow at an average
of 18% a year, twice as fast as other forms of internet display advertising
and well ahead of any other channel.
The Role of Marketing

AMA definition: The process of planning and executing the conception,

pricing, promotion, and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives.

Exchange is the central concept in marketing and the use of basic

marketing activities that satisfy individual and organizational objectives.
AMA adopted revised definition of marketing
Marketing is the activity, set of institutions and processes for creating communicating delivering and
exchanging offerings that have value for customers, clients, partners and society at large.

The focus of market driven companies is on developing and sustaining relationships with their
customers.

Value is the customer’s perception of all the benefits of a product or service weighed against all the
costs of acquiring and consuming it.

Benefits can be functional, experiential, and psychological…

Integrated Marketing Communication

The promotional function in most companies was dominated by mass media

advertising.
Evolution of IMC
1980’s companies began taking a broader perspective of marketing communications and seeing the need for a
more strategic integration of their promotional tools.

Rapid development of areas as sales promotion, direct marketing and public relations which began challenging
advertising’s role as the dominant form of marketing communication.

The decade was characterized by the rapid development of areas such as sales promotion, direct marketing and
public relations which began challenging advertising’s role .

The firms began moving towards the process of integrated marketing communication which involves
coordinating the various promotional elements and other marketing activities that communicate with a firm’s
customers.
The Evolution of IMC

Terms such as new advertising, orchestration and seamless communication were used
to describe the concept of integration.

A concept of marketing communications planning that recognizes the added value of a

comprehensive plan that evaluates the strategic roles of a variety of communication
disciplines- such as general advertising, direct response, sales promotion and public
relations-and combines these disciplines to provide clarity, consistency and maximum
communications impact..
Movado
IMC

Uses classic design and a distinctive brand name as well as high price to position its
watches as high quality, high status products. This upscale image is enhanced by the
company’s strategy of distributing its products through boutiques, jewellery and other
exclusive shops.
IMC

IMC is a strategic business process used to plan, develop, execute and evaluate
coordinated, measurable, persuasive brand communications programs overtime with
consumers, customers, prospects, employees, associates and other targeted relevant
external and internal audiences. The goal is to generate both short term financial
returns and build long term brand and shareholder value.
The Promotional Mix : Tools for IMC

Advertising

Direct marketing

Interactive/Internet marketing

Sales Promotion

Publicity/Public Relations

Personal Selling
Advertising

Defined as any paid form of non personal communication about an

organization, product, service or idea by an identified sponsor.

The paid aspect reflects the fact that the space or time for an advertising
message generally must be bought.

An occasional exception to this is the public service announcement

whose advertising space or time is donated by the media.
Advertising

The non personal component means that advertising involves mass

media(TV Radio, magazine, newspapers) that can transmit a message to
large groups of individuals often at the same time.

The non personal also means that there is generally no opportunity for
immediate feedback from the message recipient.(Except in direct
response advertising).
Direct Marketing

Organizations communicate directly with target customers to generate a

response or transaction.

One of the major tools of direct marketing is direct response advertising

whereby a product is promoted through an ad that encourages the
consumer to purchase directly from the manufacturer.
Interactive/Internet Marketing

Interactive media allow for a back and forth flow of information whereby
users can participate in and modify the form and content of the
information they receive in real time.

Include kiosks, interactive television and mobile phones.

Decision carriers as Sprint Nextel, Verizon Wireless, T mobile have

opened new ways of interacting with customers
Sales Promotion

Those marketing activities that provide extra value or incentives to the

sales force, the distributors or the ultimate customers and can stimulate
immediate sales.

Sales promotion is generally broken into two:

Consumer oriented sales promotion

Trade oriented sales promotion

Consumer oriented sales promotion

Targeted to the ultimate user of a product or service and includes couponing, sampling, premiums,
rebates, contests, sweepstakes, and various point of purchase materials and can stimulate immediate
sales.

Trade oriented sales promotion: targeted towards marketing intermediaries such as wholesalers,
distributors and retailers.

Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the
promotional tools used to encourage the trade to stock and promote a company’s products.
Publicity

Refers to non personal communication regarding an organization, product, service or

idea not directly paid for or run under identified sponsorship.

It usually comes in the form of a news story, editorial or announcement about an

organization and/or its products and services.

Publicity is not directly paid for by the company.

Publicity

An advantage of publicity over other forms of promotion is its credibility.

Consumers generally tend to be sceptical toward favourable information about a

product or service when it comes from a source they perceive as unbiased.

An advantage of publicity over other forms of promotion is its credibility. Consumers

generally tend to be less skeptical toward favourable information about a product or
service when it comes from a source they perceive as unbiased.
Public Relations

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.

Public relations generally has a broader objective than publicity as its purpose is to
establish and maintain a positive image of the company among its various publics.
Public Relations

Uses publicity and a variety of other tools- including special publications participation in
community activities, fund raising sponsorship of special events and various public affairs
activities to enhance an organization’s image.
Personal Selling

Person to person communication in which a seller attempts to assist and/or

persuade prospective buyers to purchase the company’s product or service or
to act on an idea.

Involves direct contact between buyer and seller either face to face or through
telecommunication.

The personal individualized communication in personal selling allows the seller

to tailor the message to the customer’s specific needs or situation.
 IMC involves audience contacts

Target Audience Internet/Interactive Media

Broadcast media(TV/Radio) Direct Marketing

Print Media(newspapers Magazines) Sales Promotion

Public Relations/Publicity Product Placements(TV and Movies)

Out of Home Media Personal Selling
Events and Sponsorships Word of Mouth
Point of Purchase (Displays and Packaging)
IMC involves audience contacts
Many companies are taking an audience contact or touch point perspective in developing their
IMC programs whereby they consider all the potential ways of reaching their target audience
and presenting the company or brand in a favourable manner.

A contact or touch point refers to each and every opportunity the customer has to see or hear
about the company or its brands or have an encounter or experience with it. These contacts can
range from simply seeing or hearing an ad for a brand to actually having the opportunity to
use or experience a brand in a retail store or interacting with the company during a sales
transactions or service encounter.
Tom Duncans: four basic contact points
1. Company created touch points

Planned marketing communication messages created by the company such as

advertisements, websites, news/press release, packaging, brochures and collateral
material., sales promotion, POP displays
2. Intrinsic Touch Points

Interactions that occur with a company or brand during the process of

buying or using the product or service such as discussions with retail
sales personnel or customer service representatives.

Duncan notes that marketers should make suggestions regarding ways

to manage and improve these interactions with customers in order to
send a positive message about a company or brand.
Intrinsic Touch points

Points controlled or influenced:

Design and functioning of the company website, mobile marketing

techniques
3. Unexpected Touch points

Unanticipated information about a company or brand that a customer receives

that is beyond the control of the organization.

Word of mouth message

Experts who write about product or services

Websites

CNET,Trip advisor
4. Customer Initiated Touch points

Interactions that occur whenever a customer contacts a company. Most

of these involve inquiries or complaints through calls or emails.
IMC Contact Points

Marketers who take a contact or touch point perspective recognize that

consumer’s perceptions and opinions of a brand as well as their
purchase behaviour result from the information they receive and
experiences and interactions they have with the company and its
product or services.

They also recognize that not all touch points are equally effective and
they differ in regard to a company’s ability to control or influence them.
 List of the Best Advertising Agencies in India

DDB Mudra Communications Grey India Rediffusion (Y&R)

McCann-Erickson India Ltd Ogilvy & Mather

JWT-India Triverse Advertising

FCB-Ulka Advertising Ltd Chaitra Leo Burnett Pvt Ltd

Dentsu Aegis
IMC Planning Model
IMC Planning Process

Involves the process of planning, executing, evaluating and controlling

the use of the various promotional mix elements to effectively
communicate with target audiences.

Marketer must consider which promotional tools to use and how to

integrate them to achieve marketing and communication objectives.

Distribution of budget accordingly.

1. Review of the marketing plan

Where the company has been ,its current position and where it intends to go.
Incorporates five basic elements:

1. Situation analysis

2. Specific marketing objectives

3. Marketing Strategy and program

4. Process for monitoring and evaluating performance

Promotional Program Situational Analysis

Includes internal and external analysis

Internal Analysis-Assesses relevant areas involving the product/service

offering and the firm itself.

Eg. Starbucks has an outstanding image that is the result of the quality
of its coffee and the products as well as its reputation as a socially
responsible company.
External Analysis

Focusses on factors such as characteristics of the firm’s consumers,

market segments, positioning strategies and competitors.
Analysis of the communication Processs

Marketing Objectives: What is to be accomplished by the overall

marketing program in terms of market share, sales and profitability

Communication Objectives: What the firm seeks to accomplish with its

promotional program.Stated in terms of the nature of the message to be
communicated or what specific communication effects are to be
achieved.
Budget Determination

What will be the promotional program cost?

How will the money be allotted?

Developing the IMC

Most involved and detailed step of promotional planning process.

Decisions regarding the role and importance of each element and their
coordination with each other.

Advertising program will have its own set of objectives usually involving
some message or appeal.
Creative Strategy

Message Development: Determining the basic appeal and message the

advertiser wishes to convey to the target audience.(Creative Strategy)

Media Strategy: Determining which communication channel will be used

to deliver the message
Monitoring Evaluation and Control

Determine how well the IMC program is meeting communication

objectives and helping the firm accomplish its goals.
Marketing and Promotion Process Model
Participants in the IMC process
Classification and Types of Advertising

1. Product related advertising-Pioneering, Competitive, Retentive

2. Public Service Advertising

3. Functional Classification-A Primary Demand Selective Demand

B Institutional Advertising C Product Advertising :Informative

Persuasive and Reminder

Types of advertising

Advertising Based on PLC-Consumer Industrial

Trade Advertising-Retail and Wholesale

Advertising based on area of operation-National, Local, Regional

Advertising according to medium utilized

Advertising Agencies around the world

Top 25 agencies around the world

Mc Cann Erickson World Wide

BBDO Worldwide

JWT(WPP)
Redbook

Standard Directory of Advertising Agencies

Nearly two third of the domestic billings are handled by the top 500
agencies in US.
Advertising appropriation

Advertising appropriation is the portion of a total marketing budget

that is allocated for advertising over a specific time period.
The advertising appropriation policy for a company may be based
on any one of a number of approaches.
Ad campaign

An ad campaign is a set of advertisements that revolve around a

single message and are intended to achieve a particular goal. For
example, a company might create an ad campaign to meet one of
the following business objectives: To create brand awareness for a
new product
Ad Campaign
Primary Demand Stimulation

It is demand for the product or service rather than for a particular brand. It is intended to
affect the demand for a type of product and not the brand of that product. Some advertise to
stimulate primary demand. When a product is new primary demand stimulation is appropriate.

At this time the marketer must inform consumers of the existence of the new item and
convince them of the benefits flowing from its use.

When primary demand has been stimulated and competitors have entered the market the
advertising strategy may be to stimulate the selective demand.
Selective Demand Stimulation

This demand is for a particular brand such as Charminar cigarettes, Surf

detergent powder or vimal fabrics. To establish a differential advantage and to
acquire an acceptable sort of market, selective advertising is attempted.

The advertiser attempts to differentiate his brand and to increase the total
amount of consumption of that product.

Competitive advertising stimulates selective demand.

Thank You