Week 2 - An Introduction To IMC

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An Introduction to

Integrated Marketing
Communications
1. An overview of the field of advertising and promotion and its role in the marketing process.

2. Integrated marketing communications (IMC), its evolution, and examines how various marketing
and promotional elements must be coordinated to communicate effectively.

3. In the past advertising was relatively simple as company generally relied on ads run in the mass
media to deliver their marketing message to large number of consumers who watched television

4. Rapidly changing media environment – from cable TV to satellite TV to online TV – difficult to


reach their target audiences

5. Consumers are no longer passive audiences – How many times we flip on the TV channel during
commercial break?

6. Nowadays, marketers are forced to look beyond traditional marketing message

7. Consumers now spend more time on the Internet – Exp: Facebook or Instagram

8. Most marketers view Internet ads as a more cost effective way to reach specific consumers.
What is Marketing?

Marketing
Marketing is is the
the activity,
activity, Value
Value
set
set of
of instruction,
instruction, and and
processes
processes for for creating,
creating, Benefits
Benefits
communicating,
communicating,
delivering
delivering and and
exchanging
exchanging offerings
offerings that
that Experiential
Experiential
have
have value
value forfor customers,
customers,
clients,
clients, partners,
partners, and and Psychological
Psychological
society
society atat large
large

Cost
Cost
• Value – The customer’s perception of all of the benefits of a product or services
weighed against all costs of acquiring or consuming

• Benefits – Can be functional (the performance of the product)

• Experiential – What it feels like to use the product

• Psychological – Feeling such self esteem or status that result from owning a
particular brand

• Cost – include all the money paid for the product or services, making the purchase,
learning how to use it, maintaining the product, and disposing it.
The Marketing Mix
What it does ?
 Examines the needs and wants of consumers
 Develop a product/ service that satisfies the needs
 Offering it at a price, making it available through a particular
place/ channel of distribution
 Develop a program of communication or create awareness and
interest
PRODUCT
 The product is either a tangible good or an intangible service that is seem to meet a specific
customer need or demand.
 All products follow a logical product life cycle and it is vital for marketers to understand
and plan for the various stages and their unique challenges.
 It is key to understand those problems that the product is attempting to solve.
 The benefits offered by the product and all its features need to be understood and the unique
selling proposition of the product need to be studied.
 In addition, the potential buyers of the product need to be identified and understood.
PRICE
 Price covers the actual amount the end user is expected to pay for a product.
How a product is priced will directly affect how it sells.
 This is linked to what the perceived value of the product is to the customer rather
than an objective costing of the product on offer.
 If a product is priced higher or lower than its perceived value, then it will not
sell.
 This is why it is imperative to understand how a customer sees what you are
selling.
 If there is a positive customer value, than a product may be successfully priced
higher than its objective monetary value.
 Conversely, if a product has little value in the eyes of the consumer, then it may
need to be underpriced to sell.
 Price may also be affected by distribution plans, value chain costs and markups
and how competitors price a rival product.
PROMOTION
 The marketing communication strategies and techniques all fall 
under the promotion heading.
 These may include advertising, sales promotions, special offers and public
relations.
 Whatever the channel used, it is necessary for it to be suitable for the product,
the price and the end user it is being marketed to.
 It is important to differentiate between marketing and promotion.
 Promotion is just the communication aspect of the entire marketing function.
PLACE
 Place or placement has to do with how the product will be provided to the
customer.
 Distribution is a key element of placement.
 The placement strategy will help assess what channel is the most suited to a
product.
 How a product is accessed by the end user also needs to compliment the rest
of the product strategy.
Coordinated Marketing Mix Elements
Build Image
Coordinated Marketing Mix Elements
Build Image
Traditional Approach to Marketing Communications

Sales
Publicity promotion
Point of
purchase

Media Packaging
Special Adver-
events tising Direct
response
Public
relations
Interactive
Direct marketing
marketing
Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events
Defining IMC

IMC
IMC isis aa strategic
strategic business
business
process
process used
used to to plan,
plan, develop,
develop,
execute
execute and
and evaluate
evaluate coordinated,
coordinated,
measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programsprograms with
with
consumers,
consumers, customers,
customers, prospects
prospects Don Schultz
of
employees
employees and and other
other relevant
relevant Northwestern University

external
external and
and internal
internal audiences.
audiences.
The
The goal
goal of
of IMC
IMC isis to
to
generate
generate short-term
short-term
financial
financial returns
returns and
and build
build
long-term
long-term brand
brand value.
value.
IMC ACTIVITIES
A Contemporary Perspective of IMC

Recognized
Recognized as
as aa business
business process
process

IMC
IMC Importance
Multiple of
of relevant
Multiple relevant
Importance audience
audiences
relevant
relevant audience
audiences

Demand
Demand for
for accountability
accountability and
and
Demand
Demand for
for
Measurement
accountability
accountability
Measurement of of Outcomes
Outcomes
Test Your Knowledge

Why are marketers decreasing their usage of


advertising in mass media to reach their target market
and increasing their use of integrated marketing
communications?
A) The mass market has become
fragmented.
B) The explosion of new technologies has
given consumers greater control over the
communication process.
C) The use of the Internet and electronic
commerce is growing.
D) New global markets are emerging.
E) All of the above explain the increasing
reliance on integrated marketing
communications.
Reasons for the Growing Importance of IMC

From Toward
Traditional
Traditional Media
Media Other
Other form
form of
of promotion
promotion

Limited
Limited Internet
Internet availability
availability Widespread
Widespread Internet
Internet availability
availability

Manufacturer
Manufacturer dominance
dominance Retailer
Retailer dominance
dominance

General
General focus
focus Data-based
Data-based marketing
marketing

Low
Low agency
agency accountability
accountability Greater
Greater agency
agency accountability
accountability
IMC and Branding

Brand
Brand Identity
Identity is
is aa
combination
combination of of factors:
factors:
Name,
Name, logo,
logo, symbols,
symbols,
design,
design, packaging,
packaging,
product
product or
or service
service
performance,
performance, andand image
image IMC
IMC plays
plays aa major
major role
role
or
or associations
associations inin the
the in
in the
the process
process of
of
consumer’s
consumer’s mind.
mind. developing
developing andand
sustaining
sustaining brand
brand
identity
identity and
and equity.
equity.
Basic Elements of the Promotional Mix
Classifications of Advertising

National
National Advertising
Advertising

Retail/Local
Retail/Local Advertising
Advertising

Primary
Primary vs.
vs. Selective
Selective
Consumer Demand
Demand Advertising
Advertising

Business-to-Business
Business-to-Business Advertising
Advertising

Professional
Professional Advertising
Advertising

Trade
Trade Advertising
Advertising Organizations
National Advertising
Retail/Local Advertising

7-Eleven Advertisement
Primary Advertising
Selective Advertising
Business to Business Advertising
Professional Advertising
Trade Advertising
Direct Marketing is Part of IMC
Direct Mail & Direct Response Advertising
Catalogs
Using the Internet as an IMC Tool
Sales Promotion Tools

Coupons
Samples Trade
Allowances
Premiums
Price Deals
Contests/Sweepstakes
Refunds/Rebates Sales Contest
Bonus Packs Trade
Shows
Loyalty Programs
Coop
Events Advertising

• Consumer- • Trade-
oriented oriented
• [For end-users] • [For resellers]
Events
Loyalty Program
Bonus Pack
Samples
Coupons
Trade Shows
Various Uses of Sales Promotion
Test Your Knowledge

_____ is non-personal communication neither directly


paid for nor run under identified sponsorship.
A) Advertising
B) Sales promotion
C) Publicity
D) Public relations
E) Personal selling
Advertising Versus Publicity

Factor
Factor Advertising
Advertising Publicity
Publicity
Control
Control Great
Great Little
Little
Credibility
Credibility Lower
Lower Higher
Higher
Reach
Reach Measurable
Measurable Undetermined
Undetermined
Frequency
Frequency Schedulable
Schedulable Uncontrollable
Uncontrollable
Cost
Cost High/Specific
High/Specific Low/Unspecified
Low/Unspecified

Flexibility
Flexibility High
High Low
Low
Timing
Timing Specifiable
Specifiable Tentative
Tentative
Publicity Vehicles
Publicity Vehicles
Publicity Vehicles
Public Relations Tools
Public Relations Tools
Public Relations Tools
IMC Audience Contact Tools
Test Your Knowledge

The _____ is a written document that describes the


overall marketing strategy and programs developed
for an organization, product line, or brand.
A) promotional plan
B) marketing plan
C) communications plan
D) marketing audit
E) situation analysis
Integrated Marketing Communications 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

Advertising Sales PR/ Personal Direct Internet/


promotion publicity selling marketing interactive
objectives objectives objectives objectives objectives objectives

Message Sales PR/ Personal Direct Internet/


promotion publicity selling marketing interactive
strategy strategy strategy strategy strategy strategy

Integrate and implement marketing communications strategies


Monitor, evaluate and control IMC Program

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