Integrated Marketing Communication, For Second year marketing management students.

Chapter - One
1. An Introduction To Integrated Marketing Communications
Chapter Objectives
 To examine the marketing communication function and the growing importance of
advertising and other promotional elements in the marketing programs of domestic and
foreign companies.
 To introduce the concept of integrated marketing communications (IMC) and consider how it
has evolved.
 To examine reasons for the increasing importance of the IMC perspective in planning and
executing advertising and promotional programs.
 To introduce the various elements of the promotional mix and consider their roles in an IMC
program.
 To examine how various marketing and promotional elements must be coordinated to
communicate effectively.
 To introduce a model of the IMC planning process and examine the steps in developing a
marketing communications program
1.1 Concepts and Definitions of IMC
 Marketing communications is an integral part of the overall marketing program for most
companies and organizations.
 However, these firms recognize that the way they communicate with consumers and other
relevant audiences to promote their products and services is changing rapidly.
 The fragmentation of mass markets, the rapid growth of the Internet and other new digital
media, the emergence of global markets, economic uncertainties, and the changing lifestyles
of consumers are all changing the way companies approach marketing as well as advertising
and promotion.
 Developing marketing communication programs that are responsive to these changes is
critical to the success of every company.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

1.2 What is marketing?

A social and managerial process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others.
1.3 The Marketing Mix
 Marketing facilitates the exchange process and the development of relationships by
carefully examining the needs and wants of consumers, developing a product or service that
satisfies these needs, offering it at a certain price, making it available through a particular
place or channel of distribution, and developing a program of promotion or communication
to create awareness and interest.
 These four Ps i.e product, price, place (distribution), and promotion—are elements of the
marketing mix. The basic task of marketing is combining these four elements into a
marketing program to facilitate the potential for exchange with consumers in the
marketplace.
 The primary focus of this course is on one element of the marketing mix: the promotional
variable. However, the promotional program must be part of a viable marketing strategy
and be coordinated with other marketing activities.
 A firm can spend large sums on advertising or sales promotion, but it stands little chance
of success if the product is of poor quality, is priced improperly, or does not have adequate
distribution to consumers.
 Marketers have long recognized the importance of combining the elements of the
marketing mix into a cohesive marketing strategy. Many companies also recognize the
need to integrate their various marketing communications efforts, such as media
advertising, direct marketing, sales promotion, Internet marketing, event sponsorships, and
public relations, to achieve more effective marketing communications.
1.4 Integrated Marketing Communications
 Integrated marketing communications (IMC) is an approach used by organizations to
brand and coordinate their communication efforts.
 The American Association of Advertising Agencies defines IMC as "a comprehensive
plan that evaluates the strategic roles of a variety of communication disciplines and
combines these disciplines to provide clarity, consistency and maximum
communication impact.”

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

 The primary idea behind an IMC strategy is to create a seamless experience for

consumers across different aspects of the marketing mix. The brand's core image and
messaging are reinforced as each marketing communication channel works together as
parts of a unified whole rather than in isolation.
1.5. Reasons for Growing importance of IMC
 The IMC approach to marketing communications planning and strategy is being adopted
by both large and small companies and has become popular among firms marketing
consumer products and services as well as business-to-business marketers.
 There are a number of reasons why marketers are adopting the IMC approach. A
fundamental reason is that they understand the value of strategically integrating the
various communications functions rather than having them operate autonomously.
 By coordinating their marketing communications efforts, companies can avoid
duplication, take advantage of synergy among promotional tools, and develop more
efficient and effective marketing communications programs.
 Advocates of IMC argue that it is one of the easiest ways for a company to maximize
the return on its investment in marketing and promotion.
 The move to integrated marketing communications also reflects an adaptation by
marketers to a changing environment, particularly with respect to consumers,
technology, and media.
 Major changes have occurred among consumers with respect to demographics, lifestyles,
media use, and buying and shopping patterns.
 Even as new technologies and formats create new ways for marketers to reach
consumers, they are affecting the more traditional media. Television, radio,
magazines, and newspaper audiences are becoming more fragmented and reaching
smaller and more selective audiences.
 In addition to the decline in audience size for many media, marketers are facing the
problem of consumers being less responsive to traditional advertising.
 Many consumers are turned off by advertising; they are tired of being bombarded with
sales messages.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

 This is leading many marketers to look for alternative ways to communicate with their
target audiences. The integrated marketing communications movement is also being
driven by changes in the ways companies market their products and services.
 A major reason for the growing importance of the IMC approach is the ongoing
revolution that is changing the rules of marketing and the role of the traditional
advertising agency.
Major characteristics of this marketing revolution include:
 A shifting of marketing dollars from media advertising to other forms of promotion,
particularly consumer- and trade-oriented sales promotions.
 Many marketers feel that traditional media advertising has become too expensive and
is not cost-effective. Also, escalating price competition in many markets has resulted in
marketers’ pouring more of their promotional budgets into price promotions rather
than media advertising.
 A movement away from relying on advertising-focused approaches, which emphasize
mass media such as network television and national magazines, to solve communication
problems.
 Many companies are turning to lower-cost, more targeted communication tools such as
event marketing and sponsorships, direct mail, sales promotion, and the Internet as they
develop their marketing communications strategies.
 A shift in marketplace power from manufacturers to retailers.
 Due to consolidation in the retail industry, small local retailers are being replaced by
regional, national, and international chains. Large retailers such as Wal-Mart are using their
clout to demand larger promotional fees and allowances from manufacturers, a practice that
often siphons money away from advertising. Moreover, new technologies such as checkout
scanners give retailers information on the effectiveness of manufacturers’ promotional
programs. This is leading many marketers to shift their focus to promotional tools that can
produce short-term results, such as sale promotion.
 The rapid growth and development of database marketing.
 Many companies are building databases containing customer names; geographic,
demographic, and psychographic profiles; purchase patterns; media preferences; credit
ratings; and other characteristics. Marketers are using this information to target consumers

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

through a variety of direct-marketing methods such as telemarketing, direct mail, and direct
response advertising, rather than relying on mass media.
 Demands for greater accountability from advertising agencies and changes in the way
agencies are compensated.
Many companies are moving toward incentive-based systems whereby compensation of their ad
agencies is based, at least in part, on objective measures such as sales, market share, and
profitability. Demands for accountability are motivating many agencies to consider a variety of
communication tools and less expensive alternatives to mass-media advertising.
 The rapid growth of the Internet, which is changing the very nature of how companies
do business and the ways they communicate and interact with consumers.
 The Internet revolution is well under way, and the Internet audience is growing rapidly. The
Internet is an interactive medium that is becoming an integral part of communication
strategy, and even business strategy, for many companies.

1.6. Benefits of Integrated Marketing Communications

With so many products and services to choose from, consumers are often overwhelmed by the
vast number of advertisements flooding both online and offline communication channels.
Marketing messages run the risk of being overlooked and ignored if they are not relevant to
consumers' needs and wants.
 One of the major benefits of integrated marketing communications is that marketers can
clearly and effectively communicate their brand's story and messaging across several
communication channels to create brand awareness.
 IMC is also more cost-effective than mass media since consumers are likely to interact with
brands across various forums and digital interfaces. As consumers spend more time on
computers and mobile devices, marketers seek to weave together multiple exposures to their
brands using different touch points. Companies can then view the performance of their
communication tactics as a whole instead of as fragmented pieces.
 The other benefit of integrated marketing communications is that it creates a
competitive for companies looking to boost their sales and profits. This is especially
useful for small- or mid-sized firms with limited staff and marketing budgets.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

 IMC immerses customers in communications and helps them move through the various
stages of the buying process. The organization simultaneously consolidates its image,
develops a dialogue, and nurtures its relationship with customers throughout the exchange.
IMC can be instrumental in creating a seamless purchasing experience that spurs customers
to become loyal, lifelong customers.
1.7. The Promotional Mix: The Tools for IMC
 The basic tools used to accomplish an organization’s communication objectives are often
referred to as the promotional mix (Figure 1-2).

Publicity/Public
Relations

Figure 1-2 Elements of the promotional mix

1. Advertising is defined as any paid form of non personal communication about an

organization, product, service, or idea by an identified sponsor. The paid aspect of this
definition 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 (PSA), who’s advertising
space or time is donated by the media.
The no personal component means that advertising involves mass media (e.g., TV, radio,
magazines, newspapers) that can transmit a message to large groups of individuals, often at the
same time. The no personal nature of advertising means that there is generally no opportunity for
immediate feedback from the message recipient (except in direct-response advertising).
Therefore, before the message is sent, the advertiser must consider how the audience will
interpret and respond to it.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

2. Direct Marketing
One of the fastest-growing sectors of the U.S. economy is direct marketing, in which
organizations communicate directly with target customers to generate a response and/or a
transaction. Traditionally, direct marketing has not been considered an element of the
promotional mix. However, because it has become such an integral part of the IMC program of
many organizations and often involves separate objectives, budgets, and strategies, we view
direct marketing as a component of the promotional mix. Direct marketing is much more than
direct mail and mail-order catalogs. It involves a variety of activities, including database
management, direct selling, telemarketing, and direct-response ads through direct mail, the
Internet, and various broadcast and print media.
3. Interactive/Internet Marketing
The most dynamic and revolutionary changes of any era in the history of marketing, as well as
advertising and promotion.
These changes are being driven by advances in technology and developments that have led to
dramatic growth of communication through interactive media, particularly the Internet.
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. Unlike
traditional forms of marketing communications such as advertising, which are one-way in nature,
the new media allow users to perform a variety of functions such as receive and alter information
and images, make inquiries, respond to questions, and, of course, make purchases. In addition to
the Internet, other forms of interactive media include CD-ROMs, kiosks, interactive television,
and digital cell phones
4. Sales Promotion
The next variable in the promotional mix is sales promotion, which is generally defined as those
marketing activities that provide extra value or incentives to the sales force, the distributors, or
the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken
into two major categories: consumer-oriented and trade-oriented activities.
5. Publicity/Public Relations
Another important component of an organization’s promotional mix is publicity/ public relations.
Publicity refers to no personal communications regarding an organization, product, service, or
idea not directly paid for or run under identified sponsorship.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

It usually comes in the form of a news story, editorial, or announcement about an organization
and/or its products and services. Like advertising, publicity involves no personal communication
to a mass audience, but unlike advertising, publicity is not directly paid for by the company. The
company or organization attempts to get the media to cover or run a favorable story on a product,
service, cause, or event to affect awareness, knowledge, opinions, and/or behavior. Techniques
used to gain publicity include news releases, press conferences, feature articles, photographs,
films, and videotapes.
6. Personal Selling
The final element of an organization’s promotional mix is personal selling, a form of 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.
Unlike advertising, personal selling involves direct contact between buyer and seller, either face-
to-face or through some form of telecommunications such as telephone sales. This interaction
gives the marketer communication flexibility; the seller can see or hear the potential buyer’s
reactions and modify the message accordingly. The personal, individualized communication in
personal selling allows the seller to tailor the message to the customer’s specific needs or
situation.
Personal selling also involves more immediate and precise feedback because the impact of the
sales presentation can generally be assessed from the customer’s reactions.
If the feedback is unfavorable, the salesperson can modify the message. Personal selling efforts
can also be targeted to specific markets and customer types that are the best prospects for the
company’s product or service.
1.8. The IMC Planning Process
Integrated marketing communications management involves the process of planning, executing,
evaluating, and controlling the use of the various promotional-mix elements to effectively
communicate with target audiences. The marketer must consider which promotional tools to use
and how to integrate them to achieve marketing and communication objectives.
Companies also must decide how to distribute the total marketing communications budget across
the various promotional-mix elements. What percentage of the budget should be allocated to
advertising, sales promotion, the Internet, sponsorships, and personal selling?

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

As with any business function, planning plays an important role in the development and
implementation of an effective integrated marketing communications program. This process is
guided by an integrated marketing communications plan that provides the framework for
developing, implementing, and controlling the organization’s IMC program.
Those involved with the IMC program must decide on the role and function of the specific
elements of the promotional mix, develop strategies for each element, determine how they will
be integrated, plan for their implementation, and consider how to evaluate the results achieved
and make any necessary adjustments. Marketing communications is but one part of, and must be
integrated into, the overall marketing plan and program.
1. Review of the Marketing Plan
The first step in the IMC planning process is to review the marketing plan and objectives.
Before developing a promotional plan, marketers must understand
 Where the company (or the brand) has been,
 Its current position in the market,
 Where it intends to go and how it plans to get there.
Most of this information should be contained in the marketing plan, a written document that
describes the overall marketing strategy and programs developed for an organization, a particular
product line, or a brand. Marketing plans can take several forms but generally include five basic
elements:
1. A detailed situation analysis that consists of an internal marketing audit and review and an
external analysis of the market competition and environmental factors.
2. Specific marketing objectives that provide direction, a time frame for marketing activities,
and a mechanism for measuring performance.
3. A marketing strategy and program that include selection of target market(s) and decisions
and plans for the four elements of the marketing mix.
4. A program for implementing the marketing strategy, including determining specific tasks to
be performed and responsibilities.
5. A process for monitoring and evaluating performance and providing feedback so that proper
control can be maintained.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

2. Analysis of Promotional Program Situation

The next step in developing a promotional plan is to conduct the situation analysis. In the IMC
program, the situation analysis focuses on the factors that influence or are relevant to the
development of a promotional strategy. Like the overall marketing situation analysis, the
promotional program situation analysis includes both an internal and an external analysis.

Internal analysis External analysis

 Promotional department * Consumer behavior analysis
Organization * Market segmentation and target
 Firm’s ability to implement marketing
Promotional program * Market positioning
 Agency evaluation and selection
 Review of previous program results
3. Analysis of the Communications Process
This stage of the promotional planning process examines how the company can effectively
communicate with consumers in its target markets. The promotional planner must think about:-
 The process consumers will go through in responding to marketing communications.
 The response process for products or services for which consumer decision making is
characterized by a high level of interest is often different from that for low involvement or
routine purchase decisions. These differences will influence the promotional strategy.
 Communication decisions regarding the use of various source, message, and channel factors
must also be considered.
 The promotional planner should recognize the different effects various types of advertising
messages might have on consumers and whether they are appropriate for the product or
brand.
 Issues such as whether a celebrity spokesperson should be used and at what cost may also be
studied.
 Preliminary discussion of media-mix options (print, TV, radio, newspaper, direct marketing,
Internet) and their cost implications might also occur at this stage.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

An important part of this stage of the promotional planning process is establishing

communication goals and objectives. In this text, we stress the importance of distinguishing
between communication and marketing objectives.
 Marketing objectives refer to what is to be accomplished by the overall marketing program.
They are often stated in terms of sales, market share, or profitability.
 Communication objectives refer to what the firm seeks to accomplish with its promotional
program. Communication objectives may include creating awareness or knowledge about a
product and its attributes or benefits; creating an image; or developing favorable attitudes,
preferences, or purchase intentions. Communication objectives should be the guiding force
for development of the overall marketing communications strategy and of objectives for each
promotional-mix area.
4. Budget Determination
After the communication objectives are determined, attention turns to the promotional budget.
Two basic questions are asked at this point: What will the promotional program cost? How will
the money be allocated? Ideally, the amount a firm needs to spend on promotion should be
determined by what must be done to accomplish its communication objectives. In reality,
promotional budgets are often determined using a more simplistic approach, such as how much
money is available or a percentage of a company’s or brand’s sales revenue. At this stage, the
budget is often tentative. It may not be finalized until specific promotional-mix strategies are
developed.
5. Monitoring, Evaluation, and Control
 The final stage of the IMC planning process is monitoring, evaluating, and controlling the
promotional program.
 It is important to determine how well the IMC program is meeting communications
objectives and helping the firm accomplish its overall marketing goals and objectives.
 The IMC planner wants to know not only how well the promotional program is doing but
also why. For example, problems with the advertising program may lie in the nature of
the message or in a media plan that does not reach the target market effectively. The
manager must know the reasons for the results in order to take the right steps to correct
the program.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.
Integrated Marketing Communication, For Second year marketing management students.

 This final stage of the process is designed to provide managers with continual feedback
concerning the effectiveness of the IMC program, which in turn can be used as input into
the planning process.

Compiled By: Minale Desta (Lecturer), Department of Marketing Management, Injibara University.