Integrated Marketing Communications

Module 1: Introduction to Integrated Marketing Communications

- Politics is primarily a problem of mass communications

- Modern world of marketing: rapidly changing media environment
o Less mass media
o Digital media targets narrow or niche audience
o Consumers not any longer just passive message recipients
o Changed way how to communicate & interact with consumers  keep pace
- Digital Marketing: carefully prepared messages delivered to carefully targeted audiences
o Internet ads (banner, video, webisodes)
o Social media
o Mobile marketing
- IMC Approach: coordination of various promotional elements and marketing activities that
communicate with customers, presents a unified image in market
o Packaging
o Sales Promotion
o Direct response
o Point of purchase
o Publicity
o Mass media advertising
o Public Relations
o Interactive marketing
o Direct Marketing
o Special events
- IMC Definition: it is the coordination and integration of all marketing communication tools,
avenues and sources within a company into a seamless program which maximizes the
impact on consumers and other end-users at minimal cost
o Includes all b2b, channel, customer, external and internal communication
- Marketing Mix:
o 4 or 7 Ps
 Product
 Price
 Place
 Promotion
 Personal
 Physical Evidence
o 4 Cs:

o Communication Mix:
 Advertising
 Sales Promotion
 Personal Selling
 Digital Selling (Database Marketing, Direct Response Marketing, Events /
Sponsorship Marketing, E-Active Marketing, Social Media, Alternative
Marketing, Public Relations)
o Forms of Direct Marketing: Direct Mail, Catalogs, Direct Response Ads,
Telemarketing, Direct Selling, Shopping Channels, Internet Sales
 o Forms of Interactive Marketing: Internet, Kiosks, Cell Phones, Apps etc.  advertise
products and services, link ads and websites to search engines, offer coupons /
contests / sweepstakes, personal selling
- Growing Importance of IMC: coordinating promotional elements and tools, to
communicate effectively with customers  more than just tactical use of traditional
marketing communication tools
o Value of IMC:
 Avoids duplication of marketing efforts
 Synergy among promotional tools, maximize impact, minimize cost
 More efficient and effective marketing
 Rapidly changing environment: consumer behavior, technology, media
consumption behavior, proliferation of media
o Ned an importance of IMC
 Differentiate
 Remind
 Inform
 Persuade
o Advances in IT on IMC
 Major force
 Enables instant communication
 Consumers have access to unlimited information
 Consumer communication has increased
o Components of Corporate Image
o TANGIBLE ELEMENTS o INTANGIBLE ELEMENTS
o Goods and services sold o Corporate, personnel and
environmental policies
o Retail outlets where sold o Ideals and beliefs of corporate
personnel
o Factories where produced o Culture of and location of
company
o Ads, promotions and other o Media reports
forms of communications
o Corporate name and logo o
o Packages and labels o
o employees o
o Brand management
 Brands and branding
 Building, measuring and managing brand equity
 IMC has major role in developing and sustaining brand identity
 Image or associations
 Name
 Logo
 Symbols
 Design
 Packaging
 Performance
 Brand value: financial asset that the company records on its balance sheet
 Brand equity: importance of the brand to a customer of the company
 Brand awareness
  Brand loyalty
 Brand associations
 Perceived quality
 Added value or worth endowed on products and services
o IMC Audience contact tools
 Broadcast media (TV,radio)
 Print media
 Public relations
 Internet
 Direct marketing
 Sales promotion
 Product placements (movies)
 Events and sponsorships
 Word of mouth
 Point of purchase (displays, packaging)
 Personal selling
 Out-of-home media

o
o IMC Strategies
 Message development: creative strategy
 Message delivery: media strategy
o Monitoring, Evaluation, Control
 Basic goals:
 Determine how well the program is doing, and why
 Problem correction
 Continual management feedback
 Input for future promotions/strategies
- Consumer Decision Making Stages

o
- Promotional Opportunity Analysis (POA)
o Analyzing target audience, to target its messages because
 To know customers needs and wants of purchasing company’s products
 Consumption patterns
 What influences customers
 Where customers spend time
 inputs reflected in communication strategy which shall increase chance of
noticing company, message and result in purchase intention
o Goals of POA
 Determine which promotional opportunities exist for company
 Identify characteristics of each target audience so a coherent advertising and
marketing communications message reaches them
o 5 steps in developing POA



 Objectives must be SMART Q
o Specific, measurable, attainable, realistic, time bound,
quantifiable
 Sales vs Communication Objectives
 Sales objectives: Increase sales, produce quantifiable results
  Communication objectives: increase branded knowledge, interest,
favorable attitudes and image; immediate response not expected,
goal is to create favorable predispositions
 Communication budgeting:
 Establishing communication budget: based on company type,
approach, professionalism, purposefulness etc.
 Percentage of sales method (secure, but ineffective)
 Arbitrary allocation by management
 Objective task method (most extensive and rational)
 Meet the competition-method
 What we can afford method
 Payout planning method (ratio of advertising to sales or market
share)
o Balancing communications objectives and budget
o How much to spend and allocating to whom
o Increase spending when cost is less than marginal revenue
generated
o Hold spending if cost is equal to marginal revenue generated
o Decrease spending if cost is more than marginal revenue
generated
 Factors influencing advertising budget
 Product life cycle
 Product durability
 Differentiation
 Hidden product qualities
 Product price
 Purchase frequency
 Organization’s structure
 Power and politics
 Use of expert opinions
 Characteristics of decision maker
 Approval and negotiation channels
 Pressure on senior managers to arrive at the optimal budget
 Budgeting possibilities
 Top-down budgeting: top management sets spending limit 
promotion budget set to stay within spending limit
 Bottom-Up budgeting: promotion objectives are set  activities
needed to achieve objectives are planned  costs of promotion
activities are budgeted  total promotion budget is approved by top
management
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