Introduction To IMC

Project on
INTEGRATED MARKETING COMMUNICATION

Bachelor of Management Studies Semester V-VI 2010-2011
In partial fulfilment of requirement for the award of Degree of Bachelor of Management Studies
Submitted By
VISHAKHA .A. PAWAR Roll no. 27

SHANKAR NARAYAN COLLEGE OF ARTS, SCIENCE, COMMERCE NAVGHAR ROAD, BHAYANDER (E)
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DECLARATION
I, Vishakha Pawar, student of T.Y.B.M.S Semester V-VI (20102011) hereby declare that I have completed the project on Integrated
Marketing Communication. I further declare that the information

contained in this project report is genuine, true and the fair to the best of my knowledge.
Signature
(VISHAKHA PAWAR) Roll No:27
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ACKNOWLEDGEMENT
I take this opportunity to express my deep sense gratitude to our Guide Prof. Atul Narkhede for his valuable guidance, encouragement and support extended to me during the course of completion of this project report. It has been an honour to work under his guidance throughout the project span. I take this opportunity to express my sincere gratitude to our Principal DR.V.N YADAV who lived upto his destination and was a constant source of guide light from each and every stage of the execution of this project. I would also like to thank our Co-ordinator Prof. Vivek Wankhede for his timely co-operation and support extended all the way. I am also thankful to librarian staff that helped me finding the important books without which this project was not possible At last, I am also thankful to all who have either directly or indirectly supported me in shaping the project very well.
INDEX
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Sr.no 1) 2)
Table of contents Preface Chapter 1:Literature Review
Page no.
3) 4)
Chapter 2:Introduction to Integrated Marketing Communication Chapter 3:Process of IMC
PREFACE
Integrated Marketing Communications (IMC) is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company
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into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. In this project, I have included the actual process of IMC and given a detailed information of Advertising and Promotion An Integrated Marketing Communication
Perspective
Objective of the study

1) To build a sound theoritical and practical understanding of the formulation of promotional strategy and the management of the marketing communication process. To develop an understanding of the economic and creative justification for marketing communication. To be sensitive to legal and ethical consideration in formulation and implementation of marketing communication strategy.
2) 3)
Methodology used
Secondary data gather from this project was from various books, magazines, and internet and newspaper articles.
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CHAPTER 1 LITERATURE REVIEW
Integrated marketing communication (IMC) is a strategic approach to corporate communication that entails the coordination of all company communications to present a harmonious and consistent message to consumers and publics.
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Borne of the issue that communications affect both the product brand and the corporate brand, IMC prescribes a strategic mix of communication activities, particularly corporate communications and marketing communications, targeted specifically to the audience or issue in question. Driven by the development of new media technologies that have weakened the power of traditional mass media as an advertising channel,IMC enables companies to address this diversified media sectorwidely varying consumers needs and tastes, and clients desires to develop a cost-efficient and effective marketing strategy that quickly responds to the changing market environment Through IMC, companies use multiple promotional tools to garner a positive response that is greater than the sum of separate expected responses from each communication tool. As its name indicates, it entails the recognition of a holistic, systemic process of communication in which there are all types of synergies that will inevitably drive the acceptance and use of integrated marketing Duncan, one of the early proponents of IMC, explained that synergy is created through the communication of company vision and that it motivates consumers to selfselect and identify themselves as being interested in a brand. In this way,integration of communication actually happens at the public level, necessitating strategic management of communication at the corporate level A relatively new approach to marketing communications, IMC has been labeled a management fad because it lacks a theoretical foundation, measurability, and accompanying research to define concepts leaving much ambiguity surrounding the process. However, Schultz and Kitchen rebuffed the idea, arguing that a lack of definition and measurement does not preclude a concept from being a theory, but rather it provides an opportunity for growth.
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CHAPTER-2
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INTRODUCTION TO INTEGRATED MARKETING COMMUNICATION

Introduction Everything sends a message Integrated marketing communication Necessary Conditions for an Effective IMC Program An Analogy A Symphony Orchestra Factors Contributing to IMC's rising Prominence 4Ps versus the 4 Cs The Heart of IMC
Introduction
Pepsi, announced some time back that it was scrapping its familiar red, white, and blue design and switching to a radical new electric blue package and logo design, the
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r e a s o n b e i n g t h a t P e p s i ' s i m a g e , p ar t i c u l a r l y i n i n t er n a t i o n a l markets, had been losing something in translation.
A s T h e W a l l S t r e e t J o u r n a l o b s e r v e d i n r e p or t i n g o n t h e Project Blue launch, "Pepsis image is all over the map." T h e s t o r y e x p l a i n s t h a t a gr o c e r y s t o r e i n H a m b u r g u s e s r e d s t r i p e s , a b o d e g a i n G u a t e m a l a u s e s ' 7 0 s - e r a l e t t er i n g , a S h a n g h a i r e s t a u r a n t d i s p l a y s a m a i nl y w h i t e P e p s i s i g n , a n d a h o d g e p o d g e o f c o m m e r c i a l s f e a t ur e a v ar i e t y of s p o k e s p e o p l e , r a n g i n g f r om c a r t o o n s a n d b a b i e s t o doddering butlers. It's not just Pepsi's marketing communication that sends different messages to different people. Consumers say the c o l a t a s t e s d i f f e r e n t i n di f f er e n t c o u n t r i e s , s o P e p s i C o ' s p l a n s a l s o c a l l e d f o r r e v a m p i n g m a n uf a c t u r i n g a n d d i s t r i b u t i o n t o g e t a c o n s i s t e n t - t a s t i n g d r i n k m ar k e t e d t h r o u g h o u t t h e g l o b e . A n d s o m e of i t s E u r o p e a n m a r k e t i n g communication partners mixed in their support to the plan because they felt they weren't consulted about how it was to b e i m p l e m e n t e d , s o t h e r e ' s w or k t o b e d o n e t h e r e , t o o .
Everything Sends a Message
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What happened to Pepsi dramatizes the point that message consistency is a systemic problem, as well as strategic. It h a s t o b e a p p r o a c h e d f r o m t h e v i e w p o i n t of t h e w h o l e c o m p a n y a n d i t s t o t a l b u s i n e s s o p er a t i o n s , n o t j u s t f r o m h o w t h e c o m p a n y e x e c u t e s i t s m a r k e t i n g c o m m u n i c a t i o n or corporate image programs. A s N i c o l a s H a y e k , C E O o f S w a t c h , s a y s , " E v er y t h i n g w e d o , and the way we do everything, sends a message." And thats w h e r e I n t e g r a t e d M a r k e t i n g C om m u n i c at i o n s c o m e s i n . Integrated marketing communications is a process that manages all of a company or brand's interactions with c u s t o m e r s a n d o t h e r k e y s t a k e h o l d e r s . I t s p r e m i s e i s t h at e v e r y t h i n g a c o m p a n y d o e s , a n d s o m et i m e s wh a t i t doesn't do, sends a message. I n t h e m a r k e t p l a c e o f t h e 2 1 s t c e n t u r y t h e d r i v i n g f or c e i s n o t a c o m p a n y w i t h pr o d u c t s t o s e l l b u t c u s t o m e r s controlling what, where, and how they want to buy. Thanks t o t h e I n t e r n e t , 2 4 - h o u r t o l l - f r e e p h o n e n u m b er s , c r e d i t cards, and express delivery services, consumers are accessing information on demand and seeking out the p r o d u c t s a n d s e r v i c e s t h a t i nt e r e s t t h e m . Gone are the days when a company determined where, when, a n d h o w i t s e l l s i t s pr o d u c t . I n t e g r a t e d m a r k e t i n g communications (IMC) is a customer-centric, data-driven method of communicating with consumers. Nestle, IBM, M i c r o s o f t , A p p l e c o m p u t er s , N i k e a n d m a n y o t h e r c o m p a n i e s h a v e a d o p t e d t h i s I M C a p pr o a c h .
Integrated Marketing Communication I n t e g r a t e d m a r k e t i n g i s a c o m p r e h e n s i v e a p pr o a c h internal and external organizational communication. Definitions of IMC
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to
A s p e r Am e r i c a n A s s o c i a t i o n o f A d v e r t i s i n g A g e n c i e s The concept of integrated marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines - for example, general advertising, direct response, sales promotion, and public relations and combines these disciplines to provide clarity, consistency and maximum communications impact According to Don Schultz Integrated marketing Communications is a new way of looking at the whole picture, where once we only saw parts s u c h a s a d v e r t i s i n g , p u bl i c r e l a t i o n s , s a l e s p r o m o t i o n , purchasing, employee communications, and so forth. It is realigning communications to look at it the way the customer sees it - as a flow of information from indistinguishable sources. A successful IMC campaign requires that the firm finds a r i g h t c o m b i n a t i o n o f pr o m o t i o n t o ol s a n d t e c h n i q u e s , defines their roles and the extent to which they can or s h o u l d b e u s e d , a n d c o or d i n a t e t h e i r u s e . I n t h e w o r d s o f D u n c a n an d E v e r e t t Integrated Marketing Communications may be defined as T h e s t r a t e g i c c o o r d i n a t i o n o f al l t h e m e s s a g e s a n d m e d i a used by an organization to influence the perceived brand value The focus here is on two aspects 1) Being present at all the contact points. 2) Managing the communications well so that your brand speaks one language. If this does not happen One may miss out on some of the contact points where t h e c u s t o m e r a w a i t s f o r c o m m u ni c a t i o n s , a n d w h e n h e d o e s n o t f i n d i t , h e a b n e g a t e s t h e br a n d .
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One may reach different contact points but different communications speak differently, the customer gets confused as to what he should associate with brand.
Thus the first aspect creates awareness and the second aspect creates and maintains loyalty.
N e c e s s a r y C o n d i t i on s f o r a n E f f e c t i v e I M C P r o g r a m Today, IMC definitions are broader in application, as a brand is developed in stakeholders' minds as a result of all interactions they have with a company, and not just as a result of a campaign they are exposed to. The premise is virtually the same synergies are achieved when all brand contacts work in concert. W h i l e d e f i n i t i o n s d i f f e r , t h e p r a c t i c e of I M C i n v o l v e s s a m e s u c c e s s f a c t o r s a n d h e l p s or g a n i z a t i o n s b u i l d deepen relationships with their many stakeholders. following conditions should be considered necessary not sufficient conditions of IMC practice:
1.
the and The but
It must speak to all stakeholders with a "single," consistent voice.
2 . I t m u s t a s s u m e t h e c o n s u m e r s ' p oi n t o f v i e w . 3.Its strategic communications internally integrated. disciplines must be
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4 . I t s m e s s a g e s m u s t c u t t hr o u g h cluttered commercial landscape.
the
increasingly
5 . I t m u s t f o s t e r a t w o- w a y d i a l o g u e b e t w e e n c o n s u m e r s and itself. 6 . I t m u s t b u i l d b o n d s t h a t l e a d t o l o n g- t e r m , c o n s u m e r to-brand relationships. 7. It must not place corporate reputation. excellent marketing ahead of
Thus in the IMC approach, the different communications are i n t h e f o r m o f a r c s m a k i n g u p a 3 6 0- d e g r e e c i r c l e , a t t h e center of which lies the customer. The communications need to be spread and integrated on a holistic basis what forms the basis of IMC.
A n A n a l o g y A S y m p h on y O r c h e s t r a 'Integrated communications' are like a band. The different communications instruments-advertising, public relations, database marketing, media specialists, sponsorship, i n t e r a c t i v e , e v e n t m a r k e t i n g a n d t h e r e s t - ar e j u s t l i k e different musical instruments: piano, trumpet, trombone, violin, clarinet, percussion and the rest. T h i s a n a l o g y i s n e i t h e r a s s i l l y n or a s s i m p l e a s i t s o u n d s . The first thing to note is that although all the instruments n o r m a l l y p l a y t h e s a m e t u n e , t h e y a r e n o t i n t er c h a n g e a b l e ; they make different noises. When each plays alone, the melody will be recognizable. But if one thinks a piano playing Rule Britannia is the same as a trumpet playing R u l e B r i t a n n i a , h e s t o n e d e a f . V e r y f e w c o n s u m e r s ar e t o n e deaf. They will recognize that the underlying messages b e i n g c o n v e y e d , s a y , b y p u bl i c r e l a t i o n s a n d s p o n s o r s h i p ,
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are identical, but the tone will be entirely different. The f o r m i n w h i c h a m e s s a g e ( or m e l o d y ) i s c o n v e y e d i s n e a r l y as important as its content, sometimes more important. S e c o n d , a l l t h e d i f f e r e n t d i s c i p l i n e s m u s t p l a y i n h ar m o n y . But, third, it does not always mean they must play exactly t h e s a m e t u n e . T h e r e ar e m a n y o c c a s i o n s w h e n t h e y s h o u l d be playing in counterpoint. On their own, it may not be apparent they are playing the same melody at all. Each may be exploiting its own virtuosity, instead of echoing the others. S i m i l a r l y , b a d l y d o n e i n t e gr a t e d m ar k e t i n g c a m p a i g n s squeeze different communications media into restrictions w h i c h m i n i m i z e t h e i r i n d i v i d u a l v i t a l i t y . T o f or c e a l l t y p e s of communications to use the same message, instead of allowing them to deploy their own strengths and c o m p l e m e n t e a c h o t h e r i s d i r e l y i n ef f i c i e n t . A company that wants to make maximum use of the synergy of integrated marketing communication has to do more than s i m p l y i n i t i a t e a d v e r t i s i n g , d i r e c t m a r k e t i n g , p u bl i c relations and data base management. It requires total m a n a g e m e n t c o m m i t m e n t t o a m ul t i f a c e t e d p r o g r a m of operations and marketing. There Are Two Critical Factors That Influence E f f e c t i v e n e s s O f A n I n t e gr a t e d M a r k e t i n g C a m p a i g n .
The
The first is the strategic combination or "mix" of the basic elements. Achieving the most effective mix is usually the result of experience. The second critical factor is the consistency of the theme across all elements in the campaign. Logically, consistency is best achieved through the use of a single s o u r c e r e s p o n s i b l e f o r d ef i n i n g t h e r o l e o f e a c h element, creating the theme, and coordinating the timely implementation of the campaign. However,
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consistency is where most companies who believe they a r e a l r e a d y i n t e g r a t i n g t h e i r m a r k e t i n g ef f or t s u s u a l l y fall short.
Factors Contributing to IMC's rising Prominence
Fragmentation of media : Both the Print and the T e l e v i s i o n m e d i a h a v e pr o l i f e r a t e d dr a m a t i c a l l y i n t h e past decade which has resulted in less reliance on mass m e d i a a n d m o r e e m p h a s i s o n t h e ot h e r pr o m o t i o n a l options, such as direct mail and event sponsorship. Better audience assessment: More sophisticated r e s e a r c h m e t h o d s h a v e e n a b l e d m or e a c c u r a t e a n d s p e c i f i c t a r g e t i n g , l e a d i n g t h e m ar k e t e r a w a y f r o m t h e mass media to promotional tools that reach only the segment that has been targeted.
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C o n s u m e r e m p o w e r m e n t : E m p o w e r e d c o n s u m e r s ar e more skeptical of commercial messages and demand information tailored to their needs. Increased advertising clutter: This has diluted the effectiveness of any single message. There seems to be n o e n d i n s i g h t t o t hi s ' m e d i a ' pr o l i f er a t i o n . Many marketers feel that traditional advertising is too expensive and is not cost effective. Hence there is a t r e n d o f s h i f t i n g o f b u d g et s f r o m m e d i a a d v er t i s i n g t o other forms of promotions. Database Technology: This can be used to create a c c u r a t e c u s t o m e r a n d n o n- c u s t o m e r pr o f i l e s f or developing highly targeted direct response & t e l e m a r k e t i n g p r o gr a m s c a n b e i m p l e m e n t e d . C h a n n e l P o w e r : R e t a i l c h a n n e l s ar e d e v e l o p i n g p o w e r and hence are able to demand promotional fees and allowances from manufacturers, which divert funds a w a y f r o m a d v e r t i s i n g a n d i n t o s p e c i a l e v e n t s or o t h e r promotions. Increased Accountability: This have led the firms to reallocate marketing resources from advertising to more short-term and more easily measurable methods such as direct marketing and sales promotion. 4Ps versus the 4 Cs
T h e c u r r e n t r e v o l u t i o n i n t h e m a r k e t h a s br o u g h t a b o u t several Differentiation. This has led to the replacement of 4 P's of marketing by the 4 C's of marketing. N o t P RO D U C T , B u t C O N S U M E R Understand what the consumer wants and needs. Times h a v e c h a n g e d a n d y o u c a n n o l o n g er s e l l w h a t e v e r y o u can make. The product characteristics must now match what someone specifically wants to buy. And part of
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w h a t t h e c o n s u m e r i s b u y i n g i s t h e p er s o n a l " b u y i n g experience." Not PRICE, But COST Understand the consumer's cost to satisfy the want or n e e d . T h e p r o d u c t p r i c e m a y b e o n l y o n e p a r t of t h e consumer's cost structure. Often it's the cost of time to drive somewhere, the cost of conscience of what you e a t , a n d t h e c o s t o f g u i l t f o r n o t t r e a t i n g t h e ki d s . Not PLACE, But CONVENIENCE Think convenience of the buying experience and then relate that to a delivery mechanism. Consider all possible definitions of "convenience" as it relates to satisfying the consumer's wants and needs. Convenience may include aspects of the physical or virtual location, access ease, transaction service time and hours of availability. N o t P RO M O T I O N , b u t C O M M U N I C A T I O N Communicate! Communicate! Communicate! Many m e d i u m s w o r k t o g e t h e r t o p r e s e n t a u ni f i e d m e s s a g e with a feedback mechanism to make the communication two-way. And it is necessary to include an understanding of non-traditional mediums, such as w o r d o f m o u t h a n d h o w i t c a n i n f l u e n c e y o ur p o s i t i o n in the consumer's mind. How many ways can a c u s t o m e r h e a r ( o r s e e ) t h e s a m e m e s s a g e t hr o u g h t h e c o u r s e o f t h e d a y , e a c h m e s s a g e r e i n f or c i n g t h e e a r l i e r images?
The Heart of IMC I n k e e p i n g w i t h t h e a b o v e t r e n d s , t h er e a r e F i v e p o w e r concepts that go in IMC and make the communications efficient and effective.
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1. Customer Focus: Ones message must be appealing, relevant and accurately timed and must be based on the u n d e r s t a n d i n g a n d a n t i c i p a t i o n of w h a t t h e c u s t o m e r e x p e c t s and wants, when he wants it, and how he wants it to be delivered to him. 2. Customer Empowerment: One should empower the customer to define the relevance; company shouldnt define i t f o r h i m a n d d o n o t f or c e t h e c o n t e n t a s p er y o u r convenience. Allow the customer to decide how deeply he wants to be involved in the communications. T h i s c o n c e p t e x t e n d s b e y o n d t h e p er m i s s i o n f r o m c u s t o m e r . Here the customer takes the lead. 3. Immersive Marketing: One need to be consistent at all the contact points and need to have continuity such that all the roads of different media lead down the same path to the brand. The beauty of the communications lies in that the consumer gets the option only to decide how far to go and not what different objective to go for. 4. Brand Resonance: Communicating while creating relationship must stand for something that the customers think is worthy of a relationship with them. 5 . E m o t i o n a l B o n d i n g : O n e s br a n d d e v e l o p s a r e l a t i o n s h i p with customer; based on the insights about him. He is not o n l y l o y a l t o t h e b r a n d b u t h e t r e a t s t h e br a n d a s a f r i e n d , a t r u s t e e , a c l o s e r e l a t i v e , o r a s a n i n s e p a r a b l e p a r t o f hi s l i f e . I n t h i s c a s e h e b e c o m e s a n a d v o c a t e f o r t h e br a n d a n d propagates the message himself. In other sense he becomes a c o n t a c t p o i n t f o r t h e o t h er c o n s u m e r s . T h u s t h e communications become vital to be managed so well that e v e n t h i s n e w l y c r e a t e d c o n t a c t p o i nt s p e a k s t h e s a m e v o i c e . C o r r e c t l y i m p l e m e n t e d , t h e I M C pr o g r a m i s a c o n t i n u o u s c y c l e o f g a t h e r i n g d a t a a n d i m p l em e n t i n g r e s p o n s e g e n e r a t i n g m a r k e t i n g c o m m u n i c a t i on s w h i c h a r e b a s e d o n previously, gathered data. Marketing communications derived from consumer need can build perceived value into
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your product or service, and separate it from the c o m p e t i t i o n i n t h e m i n d s of y o u r c u s t o m e r s a n d pr o s p e c t s .
CHAPTER -2 Process of IMC

L e v e l s of I n t e g r a t i o n Consumer Psyche & Information Processing C h a r a c t e r i s t i c s of a n I M C A p p r o a c h Model for Planning IMC The Actual Process Model for Planning IMC Barriers to Integrated Marketing Communication Golden Rules to Make Integrated Marketing C o m m u n i c a t i on S u c c e s s f u l
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L e v e l s of I n t e g r a t i o n I n t e g r a t e d m a r k e t i n g c o m m u n i c a t i o n s i s n o t j u s t m er e l y a piece of advertising, a piece of public relations and a piece of direct mail that all look the same. Rather, IMC is the management of all brand contact points through an i n t e g r a t e d , c o n s u m e r - dr i v e n s t r a t e g y . I t m e a n s r e a l i g n i n g your communications from your customers perspective so t h a t y o u r p u b l i c r e l a t i o n s a r e i n d i s t i n g u i s h a b l e f r o m y o ur advertising; your direct marketing is indistinguishable from your promotions and so on. There exist various levels at which such integration can take place. T h e f o l l o w i n g t a b l e d e t a i l s e a c h of s u c h s t a g e s . S t a g e s o f I n t e g r a t i o n o f M a r k e t i n g C o m m u n i c a t i on
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L e v e l 1 - T a c t i c a l C o - o r d i n a t i on To create one sight, one sound by consolidating c o m m u n i c a t i o n s p l a n n i n g i t of t e n l e a d s t o a t t e m p t s a t cr o s s functionality, where teams of specialists from different areas of expertise are formed to increase synergy. Level IIRedefining the Scope of Marketing Communication Rather than considering communications as an outbound activity, the firm looks at all points at which the consumer a n d t h e b r a n d a r e i n c o n t a c t . M o s t i m p o r t a n t r e s u l t of t h i s l e v e l o f i n t e g r a t i o n i s i n c l u s i o n o f E m p l o y e e s a s b o t h t ar g e t for and proliferators of marketing communication. L e v e l I I I - A p p l i c a t i o n o f I n f o rm a t i o n T e c h n o l o g y The key ingredient here is the use of databases to capture i n d i v i d u a l t r a n s a c t i o n s . T h i s e n a b l e s t h e f i r m t o m ar k e t t o groups of individuals rather than the average customer at the middle of the segment. Level IV- Strategic and Financial Integration In this level two issues are paramount: The ability to measure the return and the ability to use the marketing
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communication to drive organizational and strategic decisions. Rather than measuring say, extra sales resulting from an advertising campaign, the firm would now measure the returns from a specific group of customers against costs associated with that group.
Consumer Psyche & Information Processing Key to effective communication is understanding how c o n s u m e r s p r o c e s s t h e v a s t a m o u n t o f i n f or m a t i o n t h a t comes their way each and every day. To cope, consumers select only that information which they perceive to be i m p o r t a n t a n d i g n o r e t h e r e s t . I f t h e m ar k e t i n g m e s s a g e i s t o be selected and processed, it must:
Consist of sensory and life experiences that can easily b e i d e n t i f i e d a n d t r a n s f o r m e d i nt o a u n i f i e d c o n c e p t ,

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Have mental relationships to other categorized ideas, and
Fit into the categories and mental linkages that people have already created for them.
C o m m u n i c a t i o n o n l y o c c ur s w h e n t h e c o n s u m e r a c c e p t s , transforms, and categorizes the message. T h e t w o m o d e l s o f i n f or m a t i o n proposed are as follows: processing have been
1. The Replacement Model assumes that it is possible for the marketer to "replace" previously stored information chunks with new ideas. What is said does not matter as much as how often and how loud the message has been t r a n s m i t t e d . W i t h e n ou g h e x p o s u r e , t h e n e w w i l l r e p l a c e the old. 2 . T h e A c c u m u l a t i o n M o d e l of i nf o r m a t i o n p r o c e s s i n g assumes that message consistency is critical since the c o n s u m e r a c c e p t s , p r o c e s s e s , a n d s t o r e s i nf o r m a t i o n a b o u t the product or service relative to what has already been mentally accepted. T h e s t o r a g e a n d r e t r i e v a l s y s t e m w o r k s o n t h e b a s i s of m a t c h i n g i n c o m i n g i n f or m a t i o n w i t h w h a t h a s a l r e a d y b e e n stored in memory. I f t h e i n f o r m a t i o n m at c h e s o r e n h a n c e s w h a t i s a l r e a d y t h e r e , t h e n t h e n e w i n f o rm a t i o n w i l l l i k e l y b e a d d e d t o the existing concepts and categories. If it doesn't match, t h e c o n s u m e r h a s t o m a k e a c h o i c e , e i t h er t h e n e w information can replace what is already there or the new information can be rejected. If rejected, the consumer would continue to use existing concepts and categories and ignore the new. This is called a " j u d g m e n t s y s t e m " ; i n w h i c h c o n s u m e r s m a t c h or t e s t n e w information against what they already have and then make a judgment to add to, adapt, or reject the new material. The
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judgment system (perceptual consistency) pr e v e n t s consumers from having multiple concepts or categories for t h e s a m e m e s s a g e . W h e n c o n s u m e r s r e j e c t t h e i n f or m a t i o n or do not add or attach it to what they already have, there is a f a i l u r e t o c o m m u n i c a t e . I n m a n y c a s e s , t h e f a i l ur e t o c o m m u n i c a t e i s t h e r e s u l t o f t h e m a r k e t er b e i n g u n a b l e t o m a t c h h i s o r h e r m e s s a g e s or f i e l d s o f e x p e r i e n c e w i t h t h o s e of the prospect or customer.
C o n s u m e r s u s e t h e s a m e i nf o r m a t i o n p r o c e s s i n g a p pr o a c h whether the new data comes from advertising, sales p r o m o t i o n s , a s a l e s p e r s o n , a n a r t i c l e i n a n e w s p a p e r or magazine or from what their neighbour is telling them. The m a r k e t e r w h o p r e s e n t s n o n - i n t e gr a t e d m e s s a g e s r i s k s n ot h a v i n g a n y o f h i s o r h e r m e s s a g e s pr o c e s s e d b e c a u s e o f t h e conflict that occurs in the consumer's information p r o c e s s i n g s y s t e m . I f f or n o o t h e r r e a s o n , t h a n t h e r i s k of c o n f u s i o n , m a r k e t e r s m u s t i n t e gr a t e t h e i r m e s s a g e s o r consumers will simply ignore them.
C h a r a c t e r i s t i c s of a n I M C A p p r o a c h Planning for an Integrated Marketing Communications program goes beyond merely using the right tool under the
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right conditions. Strategic planning for IMC is distinguished from the traditional use of multi-dimensional promotions by the following four factors:
An Outside-In approach is used to plan communications that essentially means that a firm, designing communications, starts with the customer or prospect and looks backward, identifying what the c u s t o m e r d e e m s a s i m p o r t a n t i n f or m a t i o n . T h i s a p p r o a c h h e l p s t o d e l i v e r t h e i nf o r m a t i o n t h a t t h e customer wants rather than in the form at a time that t h e f i r m d e e m s a p p r o pr i a t e . S i m i l a r l y T o m D u n c a n suggests the use of Zero-based communication p l a n n i n g i t i n v o l v e s d e t er m i n i n g w h a t t a s k s n e e d t o be done and which marketing communications function should be used and to what extent. I M C p l a n n i n g r e q ui r e s c o m p r e h e n s i v e an d d e t a i l e d knowledge about the customers, prospects and other stakeholders. A n I M C p l a n i s b u i l t a r o u n d br a n d c o n t a c t s l i k e p a c k a g i n g , e m p l o y e e c o n t a c t s , i n - s t o r e di s p l a y s e t c . E a c h c o n t a c t m u s t b e e v a l u a t e d f or c l a r i t y a n d c o n s i s t e n c y w i t h t h e o v er a l l I M C pr o g r a m . C o n t r o l o f t h e I M C p l an i s h i gh l y c e n t r a l i z e d . T h e e f f e c t i v e n e s s o f t h e p r o gr a m i s h i g h l y i n c r e a s e d b y appointing a single person or team to control and e v a l u a t e a l l c o n t a c t s w i t h t ar g e t e d c u s t o m e r s .
The Actual Process
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Integrated Marketing Communications is a process and it involves the companies, the communication design/creative agencies and the execution agencies. The first step in this process is consumer research and planning followed by designing the creative and finally Implementation. The planning is at the strategic level. Generally it relates to t h e e n t i r e s t r a t e g i c f r a m e w o r k a s t o w h a t d o e s t h e pr o d u c t stand for, its attributes, the differentiation and then s e g m e n t s w h i c h i t w a n t s t o e n t er . A s m e n t i o n e d e ar l i e r , I M C i s c e n t e r e d a r o u n d t h e c u s t o m e r a n d h a s i t s e s s e n c e of understanding him to the fullest degree is a must. Thus the plans need to be based which must answer:
W h a t c o n t a c t o p p o rt u n i t i e s d o I h a v e ( t a k i n g i n t o c o n s i d e r a t i o n t h e c o s t s an d t h e b e n ef i t s ) ?
What depth do I want to gain in any media?
What is my media strategy i.e. whether I want to just ensure my presence in the medium or I want to d o m i n a t e t h a t p a r t i c u l a r m ed i u m ?
The marketing manager needs to provide the agency with information about the consumer segments, product, positioning ideas, competition etc. This is the basic framework, based on which all the communications are designed. This plan is briefed to the creative and the execution agency and discussed. T h e p r o m o t i o n a l p l a n n e r af t e r r e v i e w i n g a l l t h e i n f or m a t i o n should see how IMC fits into the marketing program and what are the objectives set for IMC to achieve. (Thus the o b j e c t i v e c o u l d e i t h er b e o nl y t o c o m m u n i c a t e t o t h e customer about the product or service to achieve a certain market share or growth in sales). The next step following is the designing of the creative which rests on the creative / advertising agency. Nowadays increasingly most of the a d v e r t i s i n g a g e n c i e s h a n d l e t h e e n t i r e a c c o u n t o f a br a n d s i n g l e h a n d e d l y ( e v e n i n c l u d i n g t h e c o n s u m e r r e s e a r c h e s f or media and advertising).
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T h e c r e a t i v e h e r e i s d e s i g n e d f or a l l t h e c o m m u n i c a t i o n s w h e t h e r t h e t a n g i b l e s or t h e i n t a n g i b l e s e . g . p a c k a g i n g , print ads, TV ads, interstitial etc. This also includes the coordination of the events and PR based on a one-voice platform. T h e f i n a l s t e p i n t h e p r o c e s s i s t h e I m p l em e n t a t i o n . T h i s includes the actual communication and the different a c t i v i t i e s c o m m u n i c a t i n g a b o u t t h e b r a n d l i k e pr o m o t i o n s and events etc.
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Model for Planning IMC
Tension, Stress, creativity, deadlines, collaboration, synergy, conflict, misunderstandings, expertise, complexity, details, details, details.are all things that characterize the process of preparing to launch an IMC campaign. There are many different models that guide the process of planning an IMC campaign. One such model being discussed is the Strategic Planning Triangle proposed by advertising researchers Esther Thorson and Jeri Moore in t h e i r b o o k I n t e g r a t e d C o m m u n i c a t i o n : S y n er g y of Persuasive Voices.
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As shown above, the apexes of the planning triangle entail the segment(s) selected as targets for the IMC campaign, the brands value proposition, and the array of persuasion tools that might be deployed to achieve campaign objectives. (a) The firm starts with customer, prospect, stakeholder d e f i n i t i o n , a s i d e n t i f i c a t i o n a n d s p e c i f i c a t i o n of t h e t a r g e t segment as a paramount apex of the triangle. Building a consensus between the client and the agency about which customers will be targeted is essential to the campaigns effectiveness. Complex IMC campaigns may end u p t a r g e t i n g m u l t i p l e s e g m e n t s . I n s u c h a c a s e i t i s cr i t i c a l t o a n a l y z e i f a n d h o w di f f er e n t t a r g e t s e g m e n t s w i l l i n t e r a c t t o s u p p o r t o r d i s p a r a g e t h e c a m p a i g n . T h e d e s c r i p t i o n of t h e target hence has to be both Personal and Precise. (b) The second important apex in the Planning triangle entails a specification of the Brands Value Proposition. A brands value proposition is a statement of the functional, e m o t i o n a l , a n d s e l f e x pr e s s i v e b e n e f i t s d e l i v e r e d b y t h e brand that provide value to the customers in the target s e g m e n t . F a c t o r s l i k e w h a t t h e br a n d h a s s t o o d f or i n t h e p a s t , a s w e l l a s w h a t n e w t y p e s of v a l u e or b e n e f i t s o n e wants to claim for going forward need to be considered here. (c) The final apex of the planning triangle considers the various persuasion tools that may be deployed in executing the campaign. The mix of the various tools should depend on the objectives that are set for the IMC campaign. Collaboration between the agency and the client is the key to ensure that the approval process proceeds in a timely fashion. The Process of an Integrated Marketing Program thus
E n c o u r a g e s t h e e s t a b l i s h m e n t of a m a r k e t i n g - t e a m approach to discuss strengths and weaknesses, mission

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and vision, and niche and quality, and to reach a c o n s e n s u s o n t h e pr i m a r y m e s s a g e s t o b e d e l i v e r e d t o priority audiences.
I n v o l v e s w o r k i n g i n t e a m s , t y pi c a l l y w i t h m e m b er s f r o m o t h e r c a m p u s of f i c e s , t o r e a c h pr o s p e c t i v e s t u d e n t s , p a r e n t s , d o n or s , a n d c o m m u n i t y a n d government officials with maximum impact. Uses quantitative and qualitative research techniques, including focus groups and survey research, to determine constituent attitudes and opinions, and e f f e c t i v e n e s s o f v ar i o u s c o m m u n i c a t i o n s m e s s a g e s a n d techniques. C a l l s f o r a c o m m u ni c a t i o n s a n a l y s i s t o d e t e r m i n e w h a t messages are being sent to key audiences, including the sequence and flow of these messages. C a l l s f o r t h e e x a m i n a t i o n of y o ur e x i s t i n g m e s s a g e vehicles for clarity, consistency, and effectiveness. C o m b i n e s t h i s a s s e s s m e n t w i t h t h e r e s u l t s o f y o ur r e s e a r c h t o p r o v i d e y o ur k e y a u d i e n c e s w i t h t h e information they need, in the ways they have asked to receive it. F o c u s e s o n l o n g - t e r m a d v a n t a g e s a n d i n c or p o r a t e s interactive communication to develop more personal relationships. May include the use of technology like email and the World Wide Web to get feedback from key audiences.
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Barriers to Integrated Marketing Communication Despite its many benefits, Integrated Marketing Communications has many barriers. In addition to the usual r e s i s t a n c e t o c h a n g e a n d t h e s p e c i a l pr o b l e m s o f c o m m u n i c a t i n g w i t h a w i d e v ar i e t y o f t a r g e t a u d i e n c e s , there are many other obstacles which restrict IMC. These include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management know-how. T a k e f u n c t i o n a l s i l o s . R i g i d or g a n i z a t i o n a l s t r u c t ur e s a r e infested with managers who protect both their budgets and t h e i r p o w e r b a s e . S a d l y , s o m e or g a n i z a t i o n a l s t r u c t u r e s isolate communications, data, and even managers from each other. For example the PR department o f t e n d o e s n ' t r e p o r t t o m a r k e t i n g . T h e s a l e s f o r c e r ar e l y m e e t s t h e a d v e r t i s i n g or s a l e s pr o m o t i o n p e o p l e a n d s o o n . I m a g i n e w h a t c a n h a p p e n w h e n s a l e s r e p s ar e n ot t o l d a b o u t a new promotional offer! A n d a l l o f t h i s c a n b e a g g r a v a t e d b y t ur f w a r s o r i n t e r n a l p o w e r b a t t l e s w h e r e s p e c i f i c m a n a g e r s r e s i s t h a v i n g s o m e of their decisions (and budgets) determined or even influenced by someone from another department. Here are two difficult questions - What should a truly integrated marketing department look like? And how will it
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affect creativity? It shouldn't matter whose creative idea it is, but often, it does. An advertising agency may not be so enthusiastic about developing a creative idea generated by, say, a PR or a direct marketing consultant. I M C c a n r e s t r i c t c r e a t i v i t y . N o m or e w i l d a n d w a c k y s a l e s p r o m o t i o n s u n l e s s t h e y f i t i n t o t h e o v er a l l m a r k e t i n g c o m m u n i c a t i o n s s t r a t e g y . T h e j o y of r am p a n t c r e a t i v i t y m a y be stifled, but the creative challenge may be greater and u l t i m a t e l y m o r e s a t i s f y i n g w h e n o p er a t i n g w i t h i n a t i g h t e r , i n t e g r a t e d , c r e a t i v e b r i ef . A d d d i f f e r e n t t i m e s c a l e s i nt o a cr e a t i v e br i e f a n d y o u ' l l s e e T i m e H o r i z o n s p r o v i d e o n e m or e b ar r i e r t o I M C . F or e x a m p l e , i m a g e a d v e r t i s i n g , d e s i g n e d t o n ur t u r e t h e b r a n d o v e r t h e l o n g e r t e r m , m a y c o n f l i c t w i t h s h o r t e r t er m advertising or sales promotions designed to boost quarterly sales. However the two objectives can be accommodated w i t h i n a n o v e r a l l I M C i f c ar e f u l l y pl a n n e d . B u t t h i s k i n d o f planning is not common. A survey in 1995, revealed that most managers lack expertise in IMC. But its not just m a n a g e r s , a l s o a g e n c i e s . T h e r e i s a p r o l i f e r a t i o n of s i n g l e discipline agencies. There appear to be very few people who have real e x p e r i e n c e o f a l l t h e m a r k e t i n g c o m m u n i c a t i o n s di s c i p l i n e s . T h i s l a c k o f k n o w h o w i s t h e n c o m p o u n d e d b y a l a c k of commitment.
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Golden Rules to Make Integrated Marketing C o m m u n i c a t i on S u c c e s s f u l Despite the many benefits of Integrated Marketing C o m m u n i c a t i o n s ( o r I M C ) ; t h er e a r e a l s o m a n y b a r r i e r s . H e r e ' s h o w y o u c a n e n s u r e y o u b e c o m e i n t e gr a t e d a n d s t a y i n t e g r a t e d - 1 0 G o l d e n R u l e s of I n t e g r a t i o n . ( 1 ) G e t S e n i o r M a n a g e m e n t S u p p o rt f o r t h e i n i t i a t i v e b y ensuring they understand the benefits of IMC. ( 2 ) I n t e g r a t e a t D i f f e r e n t L e v e l s of m a n a g e m e n t . P u t ' i n t e g r a t i o n ' o n t h e a g e n d a f or v ar i o u s t y p e s o f m a n a g e m e n t m e e t i n g s - w h e t h e r a n n u a l r e v i e w s o r cr e a t i v e s e s s i o n s . H o r i z o n t a l l y - e n s u r e t h a t a l l m a n a g e r s , n o t j u s t m ar k e t i n g managers understand the importance of a consistent message - w h e t h e r o n d e l i v e r y t r u c k s or p r o d u c t q u a l i t y . A l s o e n s u r e t h a t A d v e r t i s i n g , P R , S al e s P r om o t i o n s s t a f f ar e integrating their messages. To do this you must have carefully planned internal communications, that is, good internal marketing.
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(3) Ensure the Design Manual or even a Brand Book is u s e d t o m a i n t a i n c o m m o n v i s u a l s t a n d a r d s f or t h e u s e o f logos, typefaces, colours and so on. ( 4 ) F o c u s o n a c l e a r m a r k e t i n g c om m u n i c at i o n s s t r at e g y . H a v e c r y s t a l c l e a r c o m m u n i c a t i o n s o bj e c t i v e s ; c l e a r p o s i t i o n i n g s t a t e m e n t s . L i n k c o r e v a l u e s i n t o e v er y communication. Ensure all communications add value to ( i n s t e a d o f d i l u t e ) t h e br a n d o r o r g a n i z a t i o n . E x p l o i t a r e a s of sustainable competitive advantage. ( 5 ) S t a r t w i t h a Z e r o B u d g et . S t a r t f r o m s c r a t c h . B u i l d a new communications plan. Specify what you need to do in order to achieve your objectives. In reality, the budget you get is often less than you ideally need, so you may have to prioritize communications activities accordingly. (6) Think Customers First. Wrap communications around t h e c u s t o m e r ' s b u y i n g pr o c e s s . I d e n t i f y t h e s t a g e s t h e y g o t h r o u g h b e f o r e , d u r i n g a n d a f t er a p ur c h a s e . S e l e c t communication tools which are right for each stage. D e v e l o p a s e q u e n c e o f c o m m u ni c a t i o n s a c t i v i t i e s w h i c h h e l p the customer to move easily through each stage. (7) Build Relationships and Brand Values. All c o m m u n i c a t i o n s s h o u l d h e l p t o d e v e l o p s t r o n g er a n d stronger relationships with customers. Ask how each communication tool helps to do this. R e m e m b e r : c u s t o m e r r et e n t i o n i s a s i m p o r t a n t a s c u s t o m e r acquisition. ( 8 ) D e v e l o p a G o o d M a r k e t i n g I n f o r m a t i on S y s t e m w h i c h d e f i n e s w h o n e e d s w h a t i nf o r m a t i o n w h e n . A c u s t o m e r database for example, can help the telesales, direct m a r k e t i n g a n d s a l e s f o r c e . I M C c a n h e l p t o d ef i n e , c o l l e c t and share vital information. (9) Share Artwork and Other Media. Consider how, say, advertising imagery can be used in mail shots, exhibition stands, Christmas cards, news releases and web sites.
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( 1 0 ) B e p r e p a r e d t o c h an g e i t a l l . L e a r n f r o m e x p e r i e n c e . Constantly search for the optimum communications mix. T e s t . . ! ! T e s t . . ! ! T e s t . . ! ! I m pr o v e e a c h y e a r . ' K a i z e n '
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CHAPTER -3
The Integrated Marketing Mix

T h e P r o m o t i on a l M i x - T o o l s f o r I M C Emerging Tools of Integrated Marketing Communication
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T h e P r o m o t i on a l M i x - T o o l s f o r I M C
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P r o m o t i o n h a s b e e n d e f i n e d a s t h e c o o r d i n a t i o n of a l l s e l l e r initiated efforts to set up channels of information and p e r s u a s i o n i n o r d e r t o s e l l g o o d s a n d s e r v i c e s o r p r o m ot e a n idea. While implicit communication occurs through the v a r i o u s e l e m e n t s o f t h e m a r k e t i n g m i x , m o s t of a n o r g a n i z a t i o n s c o m m u n i c a t i o n s w i t h t h e m ar k e t p l a c e t a k e p l a c e a s p a r t o f a c a r ef u l l y p l a n n e d a n d c o n t r o l l e d promotional program. The basic tools used to accomplish an organizations communication objectives are often referred to as the promotional mix.
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The Promotional Mix or the Marketing Communications M i x i s t h e s p e c i f i c m i x o f a d v e r t i s i n g , p er s o n a l s e l l i n g , sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives Advertising Advertising is the best-known and most widely d i s c u s s e d f o r m o f pr o m o t i o n , p r o b a b l y b e c a u s e of i t s pervasiveness. It is also a very important promotional tool, particularly for companies whose products and s e r v i c e s a r e t a r g e t e d a t m a s s c o n s u m e r m ar k e t s . T h e r e are several reasons why advertising is such an important part of m a n y m a r k e t e r s p r om o t i o n a l m i x e s . A d v e r t i s i n g c a n be used to create brand images and symbolic appeals for a company or brand, a very important capability for c o m p a n i e s s e l l i n g pr o d u c t s a n d s e r v i c e s t h a t a r e difficult to differentiate on functional attributes. F o r e x a m p l e , s i n c e 1 9 8 0 A b s o l u t h a s u s e d cr e a t i v e advertising to position its vodka as an upscale, f a s h i o n a b l e , s o p h i s t i c a t e d dr i n k a n d di f f er e n t i a t e i t from other brands. The advertising strategy has been to f o c u s a t t e n t i o n o n t w o u ni q u e a s p e c t s o f t h e pr o d u c t : the Absolut name and the distinctive shape of the bottle. A n o t h e r a d v a n t a g e of a d v e r t i s i n g i s i t s a b i l i t y t o s t r i k e a responsive chord with consumers when differentiation across other elements of the marketing m i x i s d i f f i c u l t t o a c h i e v e . P o p u l a r a d v er t i s i n g campaigns attract consumers attention and can help generate sales. These popular campaigns can also sometimes be leveraged into successful integrated m ar k e t i n g c o m m u n i c a t i o n s pr o g r a m s . F o r e x a m p l e , E v er e a d y u s e d t h e p o p u l a r i t y of i t s Energizer Bunny campaign to generate support from
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r e t a i l e r s i n t h e f or m o f s h e l f s p a c e , p r o m ot i o n a l displays, and other merchandising activities. Consumer promotions such as in-store displays, premium offers, and sweepstakes feature the pink b u n n y . P i c t u r e s o f t h e E n er g i z e r B u n n y a p p e a r o n E n e r g i z e r p a c k a g e s t o e n s u r e br a n d i d e n t i f i c a t i o n a n d e x t e n d t h e c a m p a i g n s i m p a c t t o t h e p o i n t o f p ur c h a s e . E v e r e a d y h a s e x t e n d e d i t s i n t e g r a t e d m ar k e t i n g e f f o r t s t o i n c l u d e t i e - i n s w i t h s p o r t s m ar k e t i n g a n d sponsorships. The nature and purpose of advertising differ from one industry to another and/or across situations. The t a r g e t s o f a n o r g a n i z a t i o n s a d v e r t i s i n g e f f or t s of t e n v a r y , a s d o a d v e r t i s i n g s r ol e a n d f u n c t i o n i n t h e marketing program. One advertiser may seek to generate immediate response or action from the customer; another may want to develop awareness or a positive image for its product or service over a longer period. Direct Marketing One of the fastest-growing sectors of the U.S. economy is direct marketing, in which or g a n i z a t i o n s c o m m u n i c a t e d i r e c t l y w i t h t ar g e t c u s t o m e r s t o g e n e r a t e 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 p a r t o f t h e I M C p r o gr a m o f m a n y o r g a n i z a t i o n s a n d often involves separate objectives, budgets, and s t r a t e g i e s , w e v i e w di r e c t m a r k e t i n g a s a c o m p o n e n t o f the promotional mix. Direct marketing is much more than direct mail and m a i l o r d e r c a t a l o g s . I t i n v o l v e s a v ar i e t y of a c t i v i t i e s , including database management, direct selling, t e l e m a r k e t i n g , a n d d i r e c t r e s p o n s e a d s t hr o u g h d i r e c t m a i l , t h e I n t e r n e t , a n d v a r i o u s b r o a d c a s t a n d pr i n t media.
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One of the major tools of direct marketing is direct r e s p o n s e a d v e r t i s i n g , w h e r e b y a p r o d u c t i s p r o m ot e d through an ad that encourages the consumer to p u r c h a s e d i r e c t l y f r o m t h e m a n uf a c t u r e r . C o m p a n i e s t h a t d i s t r i b u t e t h e i r p r o d u c t s t hr o u g h t r a d i t i o n a l d i s t r i b u t i o n c h a n n e l s or h a v e t h e i r o w n s a l e s f o r c e a r e a l s o u s i n g d i r e c t - m ar k e t i n g t o o l s a n d t e c h n i q u e s . D i r e c t m a r k e t i n g p l a y s a bi g r o l e i n t h e i n t e g r a t e d m a r k e t i n g c o m m u n i c a t i o n s pr o g r a m s of c o n s u m e r p r o d u c t c o m p a n i e s a n d b u s i n e s s - t o- b u s i n e s s m a r k e t e r s . T h e s e c o m p a n i e s s p e n d l ar g e a m o u n t s o f m o n e y e a c h year developing and maintaining databases containing t h e a d d r e s s e s a n d / o r p h o n e n u m b er s o f pr e s e n t a n d prospective customers. They use telemarketing to call customers directly and a t t e m p t t o s e l l t h o s e p r o d u c t s a n d s e r v i c e s or q u a l i f y them as sales leads. Direct marketing techniques are a l s o u s e d t o d i s t r i b u t e p r o d u c t s a m p l e s o r t ar g e t u s e r s of a competing brand. Sales Promotion The next variable in the promotional mix is sales promotion, which is generally defined as those m a r k e t i n g a c t i v i t i e s t h a t pr o v i d e e x t r a v a l u e o r i n c e n t i v e s t o t h e s a l e s f or c e , t h e d i s t r i b u t or s , o r t h e ultimate consumer and can stimulate immediate sales. S a l e s p r o m o t i o n i s g e n e r a l l y br o k e n i n t o t w o m a j o r categories: consumer-oriented and t r a d e - or i e n t e d activities. C o n s u m e r - O r i e n t e d S a l e s P r om o t i o n i s t ar g e t e d t o t h e u l t i m a t e u s e r of a p r o d u c t o r s e r v i c e a n d i n c l u d e s c o u p o n i n g , s a m p l i n g , pr e m i u m s , r e b a t e s , c o n t e s t s , a n d v a r i o u s p o i n t - o f - p u r c h a s e m a t er i a l s . T h e s e p r o m o t i o n a l tools encourage consumers to make an immediate p u r c h a s e a n d t h u s c a n s t i m u l a t e s h o r t - t er m s a l e s . T r a d e - O r i e n t e d S a l e s P r o m ot i o n i s t a r g e t e d t o w ar d marketing intermediaries such as wholesalers,
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distributors, and retailers. Promotional and m e r c h a n d i s i n g a l l o w a n c e s , pr i c e d e a l s , s a l e s c o n t e s t s , a n d t r a d e s h o w s a r e s o m e o f t h e p r o m ot i o n a l . T h e s e promotional tools encourage consumers to make an immediate purchase and thus can stimulate short term sales. Public Relations A p u b l i c r e l a t i on i s d e f i n e d a s t h e m a n a g e m e n t function which evaluates public attitudes, identifies t h e p o l i c i e s a n d pr o c e d u r e s o f a n i n d i v i d u a l o r organization with the public interest, and executes a program of action to earn public understanding and acceptance. Public relation uses publicity and a variety of other tools including special publications, participation in community activities, fundraising, sponsorship of special events, and various public affairs activities to enhance an o r g a n i z a t i o n s i m a g e . O r g a n i z a t i o n s a l s o u s e a d v er t i s i n g as a public relations tool.Traditionally, publicity and p u b l i c r e l a t i o n s h a v e b e e n c o n s i d e r e d m or e s u p p o r t i v e t h a n p r i m a r y t o t h e m ar k e t i n g a n d p r o m o t i o n a l p r o c e s s . H o w e v e r , m a n y f i r m s h a v e b e g u n m a k i n g P R a n i n t e gr a l p a r t o f t h e i r p r e d e t e r m i n e d m ar k e t i n g a n d pr o m o t i o n a l s t r a t e g i e s . P R f i r m s a r e i n cr e a s i n g l y t o u t i n g p u b l i c relations as a communications tool that can take over many of the functions of conventional advertising and marketing. Personal Selling T h e f i n a l e l e m e n t of a n or g a n i z a t i o n s p r o m o t i o n a l m i x i s p e r s o n a l s e l l i n g , a f o r m o f p e r s o n - t o- p e r s o n communication in which a seller attempts to assist a n d / o r p e r s u a d e pr o s p e c t i v e b u y e r s t o p u r c h a s e t h e companys product or service or to act on an idea. U n l i k e a d v e r t i s i n g , p er s o n a l s e l l i n g i n v o l v e s d i r e c t c o n t a c t b e t w e e n b u y e r a n d s e l l e r , e i t h e r f a c e - t o- f a c e o r through some form of telecommunications such as
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t e l e p h o n e s a l e s . T h i s i n t er a c t i o n gi v e s t h e m a r k e t e r communication flexibility; the seller can see or hear the potential buyers reactions and modify the message accordingly. The personal, i n d i vi d u a l i z e d communication in personal selling allows the seller to t a i l o r t h e m e s s a g e t o t h e c u s t o m e r s s p e c i f i c n e e d s or situation.
Here are some things to keep in mind R e a c h e s l a r g e , g e o gr a p h i c a l l y d i s p e r s e d a u d i e n c e s , of t e n w i t h h i g h f r e q u e n c y ; L o w cost per exposure,though overall costs are high; Consumers perceive advertised goods as more legitimate; Dramatizes c o m p a n y / b r a n d ; B u i l d s br a n d i m a g e ; m a y stimulate short-term sales; I m p er s o n a l , oneway communication; Expensive.
ADVERTISI NG
PERSONAL SELLING
Most effective tool for building b u y e r s p r ef e r e n c e s , convictions, and a c t i o n s ; P er s o n a l i n t e r a c t i o n a l l o w s f o r feedback and adjustments; Relationship o r i e n t e d ; B u y e r s ar e m o r e a t t e n t i v e ; S a l e s f o r c e r e pr e s e n t s a l o n g - t e r m c o m m i t m e n t ; M o s t e x p e n s i v e o f t h e pr o m o t i o n a l t o o l s .
SALES PROMOTIO N
May be targeted at the trade or ultimate consumer;
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Makes use of a variety of formats: premiums,coupons, contests, etc.; Attracts a t t e n t i o n , o f f e r s s t r o n g p ur c h a s e i n c e n t i v e s , d r a m a t i z e s of f e r s , b o o s t s s a g g i n g s a l e s ; S t i m u l a t e s q u i c k r e s p o n s e ; S h or t - l i v e d ; N o t effective at building l o n g - t er m br a n d preferences. Highly credible; Very believable; Many forms:news stories, news features, events and sponsorships, etc.; Reaches many prospects missed via other forms Of p r o m o t i o n ; D r a m a t i z e s c o m p a n y or p r o d u c t ; Often the most under used element in the promotional mix; Relatively inexpensive ( c e r t a i n l y n o t 'f r e e ' a s m a n y p e o p l e t hi n k there are costs involved) M a n y f or m s : T e l e p h o n e m a r k e t i n g , d i r e c t m a i l , o n l i n e m a r k e t i n g , e t c . ; F o ur d i s t i n c t i v e characteristics:Nonpublic,Immediate, Customized,Interactive; Well-suited to h i g h l y - t ar g e t e d m ar k e t i n g e f f or t s .
PUBLIC RELATION
DIRECT MARKETIN G
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Emerging Tools of Integrated Marketing Communication The concept of Integrated Marketing Communications (IMC) makes absolute sense so much so that novices in the field may wonder what all the commotion is about. IMC suggests t h a t m a r k e t e r s l o o k a t t h e c u s t o m e r f i r s t h i s or h e r preferences, buying patterns, media exposure, and other factors and then expose that customer to products and s e r v i c e s t h a t f i t t h e c u s t o m e r s n e e d s v i a a m i x of communication methods he or she finds attractive and c r e d i b l e . T h u s , i n a d d i t i o n t o t h e P r o m o t i o n a l M i x of I M C , t h e m a r k e t e r s a r e a l s o o p t i n g f or o t h e r e m e r g i n g t o o l s o f IMC. These emerging tools can be classified as follows: Outdoor Advertising Sponsorships
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Roadshows Point Of Purchase Display Broadcast Advertising Outdoor Advertising O u t d o o r a d v e r t i s i n g i s a v er y p o p u l a r f or m o f a d v e r t i s i n g , which makes use of several tools and techniques to attract t h e c u s t o m e r s o u t d o or s . T h e m o s t c o m m o n e x a m p l e s o f outdoor advertising are billboards, kiosks, and also several e v e n t s a n d t r a d e s h o w s or g a n i z e d b y t h e c o m p a n y . T h e billboard advertising is very popular however has to be r e a l l y t e r s e a n d c a t c h y i n o r d e r t o gr a b t h e a t t e n t i o n o f t h e p a s s e r s b y . T h e k i o s k s n o t o n l y pr o v i d e a n e a s y o u t l e t f or the company products but also make for an effective advertising tool to promote the companys products. O r g a n i z i n g s e v e r a l e v e n t s m a k e s f or a n e x c e l l e n t a d v e r t i s i n g o p p o r t u n i t y . T h e c o m p a n y c a n or g a n i z e t r a d e f a i r s , o r e v e n e x h i b i t i o n s f or a d v e r t i s i n g t h e i r pr o d u c t s . I f not this, the company can organize several events that are closely associated with t h e i r f i e l d . F o r i n s t a n c e a c o m p a n y t h a t m a n uf a c t u r e s s p o r t s utilities can s p o n s o r a s p o r t s t o u r n a m e n t t o a d v e r t i s e i t s pr o d u c t s . Sponsorships S p o n s o r s h i p i s a n i n cr e a s i n g l y c o m m o n f or m of promotional activity is sponsorship. Sponsorship in simple words is Supporting an event, activity or organization by providing m o n e y o r o t h e r r e s o u r c e s t h a t i s of v a l u e to the sponsored event.This is usually in return for advertising space at the event or as part of the publicity for the event.
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Road shows R o a d s h o w i s a p r o gr a m c o m p r i s i n g a series of marketing events that companies organize at multiple locations to generate interest regarding a subject that they w a n t t o p r o m o t e . I t c o u l d a b o u t n e w pr o d u c t s / s e r v i c e s t a r g e t e d a t c u s t o m e r s , n e w i n v e s t m e n t of f e r i n g s ( I P O ) targeted at investors, new social initiatives targeted at the community, etc. Point Of Purchase Display Point of Purchase display is marketing materials or advertising placed next to the m e r c h a n d i s e i t i s pr o m o t i n g . T h e s e i t e m s are generally located at the checkout area or other location where the purchase decision is made. It is also known as Kiosks, End caps, Point of Sale Display. E . g . t h e c h e c k o u t c o u n t e r s of m a n y c o n v e n i e n c e s t o r e s are cluttered with cigarette and candy POP displays.
Broadcast advertising Television, Radio and the Internet B r o a d c a s t a d v e r t i s i n g i s a v e r y p o p ul a r advertising medium that constitutes of several branches like television, radio or the Internet. Television a d v e r t i s e m e n t s h a v e b e e n v e r y p o p u l ar e v e r s i n c e t h e y h a v e b e e n i n t r o d u c e d . T h e c o s t of t e l e v i s i o n a d v e r t i s i n g o f t e n d e p e n d s o n t h e d ur a t i o n of t h e a d v e r t i s e m e n t , t h e t i m e of b r o a d c a s t (prime time/peak time), and of
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course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media h o w e v e r t h e r a d i o r e m a i n s t o b e t h e c h o i c e of s m a l l - s c a l e advertisers.
CHAPTER NO-IV
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Role of Ad-Agency in Implementation of IMC

Main Types of Advertising Agency Advertising Agencies in Action F u n c t i o n s of A d v e r t i s i n g A g e n c i e s Advertising Agencies Help Develop Business Image T h e R o l e of a n A d v e r t i s i n g A g e n c y
Introduction
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Introduction
Developing and implementing an Integrated Marketing Communications program is usually a complex and detailed process involving the efforts of many people. As consumers, w e g e n e r a l l y g i v e l i t t l e t h o u g h t t o t h e i n di v i d u a l s o r organizations that create the clever advertisements that c a p t u r e o u r a t t e n t i o n o r t h e c o n t e s t s or s w e e p s t a k e s w e h o p e to win. But for those involved in the marketing process, it is i m p o r t a n t t o u n d e r s t a n d t h e n a t u r e of t h e i n d u s t r y a n d t h e structure and functions of the organizations involved. As can be seen from the opening vignette, the advertising and promotions business is changing as marketers search for better ways to communicate with their customers. These c h a n g e s a r e i m p a c t i n g t h e w a y m ar k e t e r s or g a n i z e f o r marketing communications, as well as their relationships w i t h a d v e r t i s i n g a g e n c i e s a n d o t h er c o m m u n i c a t i o n s p e c i a l i s t s . F o r m o s t c o m p a n i e s , a d v er t i s i n g i s p l a n n e d a n d e x e c u t e d b y a n o u t s i d e a d a g e n c y . M a n y l a r g e a g e n c i e s of f e r a variety of other IMC capabilities, including public relations, sales promotion, and direct marketing. The participants in the integrated marketing communications p r o c e s s c a n b e d i v i d e d i n t o f i v e m a j o r gr o u p s : t h e advertiser (or client), advertising agencies, media organizations, specialized communication services, and collateral services. Each group has specific roles in the p r o m o t i o n a l p r o c e s s . T h e a d v e r t i s e r s , or c l i e n t s , a r e t h e k e y participants in the process. They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions. The advertisers also assume major r e s p o n s i b i l i t y f o r d e v e l o p i n g t h e m a r k e t i n g p r o gr a m a n d making the final decisions regarding the advertising and
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p r o m o t i o n a l p r o g r a m t o b e e m p l o y e d . T h e or g a n i z a t i o n m a y perform most of these efforts itself, either through its own advertising department or by setting up an in-house agency. M a n y o r g a n i z a t i o n s u s e a n a d v e r t i s i n g a g e n c y; a n o u t s i d e f i r m t h a t s p e c i a l i z e s i n t h e c r e a t i o n , pr o d u c t i o n , a n d / o r placement of the communications message and that may provide other services to facilitate the marketing and p r o m o t i o n s p r o c e s s . M a n y l a r g e a d v er t i s e r s r e t a i n t h e s e r v i c e s o f a n u m b e r of a g e n c i e s , p a r t i c u l a r l y w h e n t h e y market a number of products. For example, Kraft Foods uses a s m a n y a s 8 a d v e r t i s i n g a g e n c i e s f or i t s v a r i o u s br a n d s , while Procter & Gamble uses 12 ad agencies and 2 major media buying services companies. More and more, ad agencies are acting as partners with advertisers and assuming more r e s p o n s i b i l i t y f o r d e v e l o p i n g t h e m a r k e t i n g a n d pr o m o t i o n a l programs. M e d i a o r g a n i z a t i o n s a r e a n o t h e r m a j or p ar t i c i p a n t i n t h e a d v e r t i s i n g a n d p r o m o t i o n s p r o c e s s . T h e pr i m a r y f u n c t i o n o f m o s t m e d i a i s t o p r o v i d e i nf o r m a t i o n or e n t e r t a i n m e n t t o t h e i r s u b s c r i b e r s , v i e w e r s , or r e a d er s . B u t f r o m t h e p e r s p e c t i v e o f t h e p r o m o t i o n a l p l a n n e r , t h e p ur p o s e o f m e d i a i s t o p r o v i d e a n e n v i r o n m e n t f or t h e f i r m s m ar k e t i n g c o m m u n i c a t i o n s m e s s a g e . T h e m e d i a m u s t h a v e e d i t or i a l or program content that attracts consumers so that advertisers and their agencies will want to buy time or space with them. T h e n e x t g r o u p s o f p ar t i c i p a n t s a r e or g a n i z a t i o n s t h a t p r o v i d e s p e c i a l i z e d m a r k e t i n g c o m m u n i c a t i on s s e r v i c e s . T h e y i n c l u d e d i r e c t - m ar k e t i n g a g e n c i e s , s a l e s pr o m o t i o n a g e n c i e s , i n t e r a c t i v e a g e n c i e s , a n d p u bl i c r e l a t i o n s f i r m s . T h e s e o r g a n i z a t i o n s p r o vi d e services in their areas of expertise. A direct-response a g e n c y d e v e l o p s a n d i m pl e m e n t s d i r e c t - m a r k e t i n g p r o gr a m s , while sales promotion agencies develop promotional p r o g r a m s s u c h a s c o n t e s t s a n d s w e e p s t a k e s , pr e m i u m o f f er s , or sampling programs. Interactive agencies are being retained to develop websites for the Internet and help
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m a r k e t e r s a s t h e y m o v e d e e p e r i n t o t h e r e a l m of i n t e r a c t i v e media. Public relations firms are used to generate and manage publicity for a company and its products and services as well as to focus on its relationships and communications with its relevant publics. The final participants are those that provide collateral services, the wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communications firms. These individuals and companies perform specialized functions the other participants use in planning and executing advertising and other promotional functions. Advertising Agencies in Action During the late 1980s and into the 90s, the advertising i n d u s t r y u n d e r w e n t m a j o r c h a n g e s a s l a r g e a g e n c i e s m er g e d w i t h o r a c q u i r e d o t h e r a g e n c i e s a n d s u p p o r t or g a n i z a t i o n s t o f o r m l a r g e a d v e r t i s i n g o r g a n i z a t i o n s , or s u p e r a g e n c i e s . T h e s e s u p e r a g e n c i e s w e r e f or m e d s o t h a t a g e n c i e s c o u l d p r o v i d e c l i e n t s w i t h i nt e g r a t e d m a r k e t i n g c o m m u n i c a t i o n s s e r v i c e s w or l d w i d e . S o m e advertisers became disenchanted with the superagencies and m o v e d t o s m a l l e r a g e n c i e s t h a t w er e f l e x i b l e a n d m o r e r e s p o n s i v e . H o w e v e r , d u r i n g t h e m i d- 9 0 s t h e a g e n c y b u s i n e s s w e n t t hr o u g h a n o t h er w a v e of consolidation as a number of medium-size agencies were a c q u i r e d a n d b e c a m e p ar t of l ar g e a d v e r t i s i n g or g a n i z a t i o n s . M a n y o f t h e m i d - s i z e a g e n c i e s w e r e a c q u i r e d b y or f o r g e d alliances with larger agencies because their clients wanted an agency with international communications c a p a b i l i t i e s a n d t h e i r a l i g n m e n t w i t h l ar g e r o r g a n i z a t i o n s g a v e t h e m a c c e s s t o a n e t w o r k o f a g e n c i e s a r o u n d t h e w or l d . For example, TBWA and Chiat/Day merged and became part of the TBWA W o r l d w i d e a g e n c y , w h i c h i s p a r t o f t h e O m n i c o m Gr o u p , t h e worlds largest agency holding company.
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Many major companies use an advertising agency now to a s s i s t t h e m i n d e v e l o p i n g , pr e p a r i n g , a n d e x e c u t i n g t h e i r promotional programs. Many of the advertising o r g a n i z a t i o n s a n d m a j or a g e n c i e s h a v e b e e n a c q u i r i n g c o m p a n i e s s p e c i a l i z i n g i n a r e a s s u c h a s i n t er a c t i v e c o m m u n i c a t i o n s , p u b l i c r e l a t i o n s , d i r e c t m ar k e t i n g , a n d s a l e s p r o m o t i o n s o t h a t t h e y c a n of f e r t h e i r c l i e n t s a n e v e r b r o a d e r r a n g e o f i n t e gr a t e d m a r k e t i n g c o m m u n i c a t i o n services. Recently the activity of the advertising holding companies has moved in a new direction as they have begun pursuing alliances with talent agencies. By having a stake in the talent business, ad agencies can n e g o t i a t e d e a l s w i t h c u r r e n t , a s w e l l a s u p - a n d- c o m i n g , celebrities for their clients.
Main Types of Advertising Agency Full Service Agency Such agency provides a range of services to clients, including booking advertising space, designing and producing advertisements, devising media schedules, commissioning research, providing sales promotion advice, and acting as a marketing c o n s u l t a n t . T h e d e p ar t m e n t s w i t h i n a n a g e n c y i n c l u d e r e s e a r c h , p l a n n i n g , cr e a t i v e d e s i g n , m e d i a b o o k i n g s , p r o d u c t i o n , a n d a c c o u n t s . M o s t a d v e r t i s i n g a g e n t s w or k o n t h e b a s i s o f a c o m m i s s i o n o n t h e t ot a l s u m s s p e n t b y t h e client. Specialist Advertising Agencies In addition to the full-service, general-line advertising agencies, there are also agencies that specialize in p a r t i c u l a r k i n d s o f a d v e r t i s i n g : r e cr u i t m e n t , h e l p - w a n t e d , medical, classified, industrial, financial, direct-response, retail, yellow pages, theatrical/entertainment, investment, travel, and so on.
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In-House Advertising Agencies T h e s e A g e n c i e s m a y s p e c i a l i z e i n o n e or m o r e a d v e r t i s i n g functions, such as planning and creating advertising, buying, billing, and paying. Advertisers who choose this o p t i o n b e l i e v e t h a t t h e i n - h o u s e a g e n c y c a n pr o v i d e s e r v i c e s e q u a l t o o r b e t t e r t h a n t h o s e a v a i l a b l e f r om f ul l - o r l i m i t e d service agencies. In addition, some advertisers believe that they can provide such advertising services to themselves at a lower cost than would be charged by an outside agency.
F u n c t i o n s of A d v e r t i s i n g A g e n c i e s Professionals at advertising agencies and other advertising o r g a n i z a t i o n s o f f e r a n u m b er o f f u n c t i o n s i n c l u d i n g :
Account Management Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the account manager w o r k s c l o s e l y w i t h t h e c l i e n t t o d e v e l o p a n a d v er t i s i n g strategy. For very large clients, such as large consumer products companies, an advertising agency may assign a n a c c o u n t m a n a g e r t o w or k f u l l - t i m e w i t h o n l y o n e client and, possibly, with only one of the clients product lines. For smaller accounts an account manager may simultaneously manage several different, though non-competing, accounts.
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C r e a t i v e T e a m T h e p r i n c i p l e r o l e of a c c o u n t managers is to manage the overall advertising campaign for a client, which often includes delegating s e l e c t i v e t a s k s t o s p e c i a l i s t s . F or l ar g e a c c o u n t s o n e task account managers routinely delegate involves g e n e r a t i n g i d e a s , d e s i g n i n g c o n c e p t s a n d cr e a t i n g t h e final advertisement, which g e n e r a l l y b e c o m e s t h e r e s p o n s i b i l i t y of t h e a g e n c y s creative team. An agencys creative team consists of specialists in gr a p h i c design,film and audio p r o d u c t i o n , c o p y w r i t i n g , c o m p u t e r pr o g r a m m i n g , a n d much more. R e s e a r c h e r s F u l l - s e r v i c e a d v er t i s i n g a g e n c i e s employ market researchers who assess a clients market s i t u a t i o n , i n c l u d i n g u n d er s t a n d i n g c u s t o m e r s a n d c o m p e t i t o r s , a n d a l s o ar e u s e d t o t e s t cr e a t i v e i d e a s . F o r i n s t a n c e , i n t h e e ar l y s t a g e s of a n a d v e r t i s i n g campaign researchers may run focus group sessions with selected m e m b e r s o f t h e c l i e n t s t a r g e t m a r k e t i n or d e r t o g e t their reaction to several advertising concepts. R e s e a r c h e r s a r e a l s o u s e d f o l l o w i n g t h e c o m p l e t i o n of an advertising campaign to measure whether the campaign reached its objectives. M e d i a P l a n n e r s O n c e a n a d v e r t i s e m e n t i s cr e a t e d , i t m u s t b e p l a c e d t hr o u g h a n a p p r o p r i a t e a d v e r t i s i n g m e d i a . E a c h a d v e r t i s i n g m e d i a , of w h i c h t h e r e ar e t h o u s a n d s , h a s i t s o w n u n i q u e m e t h o d s f or a c c e p t i n g advertisements, such as different advertising cost structures (i.e., what it costs marketers to place an ad), different r e q u i r e m e n t s f o r a c c e p t i n g a d d e s i g n s ( e . g . , s i z e of ad), different ways placements can be purchased (e.g., d i r e c t c o n t a c t w i t h m e d i a o r t h r o u g h t h i r d - p ar t y seller), and different time schedules (i.e., when ad will b e r u n ) . U n d e r s t a n d i n g t h e n u a n c e s o f d i f f er e n t m e d i a i s t h e r o l e o f a m e d i a p l a n n e r , w h o l o o k s f or t h e b e s t
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media match for a client and also negotiates the best deals.
Advertising Agencies Help Develop Business Image All businesses that reap huge revenues have a strong marketing arm. A company prospers only if it knows how to effectively plan, manage, create and handle different forms o f p r o m o t i o n f o r i t s pr o d u c t s a n d s e r v i c e s . H o w e v e r , s o m e t i m e s , a c o m p a n y ' s o w n m ar k e t i n g a r m i s n o t s u f f i c i e n t to reach out to its prospective consumers or customers. This i s w h e r e t h e s e r v i c e s of a d v e r t i s e m e n t a g e n c i e s c o m e i n .
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Focusing on specialized marketing communications, advertisement agencies have the expertise to come up with s t r a t e g i e s o n b r a n d i n g a n d s a l e s f or t h e i r c l i e n t s ' pr e s e n t and future customers. Advertising agencies know how to manage a company's business image in order to gain its customers' loyalty in p u r c h a s i n g i t s p r o d u c t s or s e r v i c e s . T h i s i s d o n e t h r o u g h a t e d i o u s c r e a t i o n a n d e x e c u t i o n o f d i f f e r e n t m ar k e t i n g techniques to build a public positive outlook on the company and its product and services line. Ad agencies live with the promise of increasing a company's perceived value t o i t s c u s t o m e r s a n d c o n s e q u e n t l y i n cr e a s e i t s t ar g e t s a l e s and opportunity for expansion. Ad experts, in coordination with their clients think of means t h r o u g h w h i c h t h e p u bl i c c a n h a v e a d e g r e e o f r e s p e c t t o w a r d s a c o m p a n y a n d t h e q u a l i t y o f t h e pr o d u c t s a n d services that it carries. Together with the respect of the p u b l i c t o t h e c o m p a n y , u ni q u e n e s s i s a l s o e s t a b l i s h e d . I n c r e a t i n g a p a r t i c u l a r b u s i n e s s i m a g e of t h e c o m p a n y , a d agencies are concerned with persuading the public to be p a t r o n s o f t h e c o m p a n y t h r o u g h b o m b a r di n g p r o m o t i o n s t h a t assert that the company is the best choice among the heap of other companies providing similar products and/or services. I n e s t a b l i s h i n g t h e q u a l i t y of a c o m p a n y ' s l i n e of pr o d u c t s a n d s e r v i c e s , A d A g e n c i e s b a s i c a l l y r e q ui r e t h e b r a n d n a m e s t o b e e a s i l y p r o n o u n c e d , r e m e m b er e d a n d r e c o g n i z e d . W h e t h e r i n p r i n t , i n r a d i o , or i n t e l e v i s i o n , t h e advertisements that ad agencies produce employ wellthought communication techniques that can translate the company's implied message into a language that its c o n s u m e r s s p e a k a n d u n d er s t a n d . B e f o r e s h o w n t o t h e p u b l i c , t h e s e a d s a r e i ni t i a l l y t e s t e d t o a s a m p l e a u d i e n c e t o guarantee that they attract attention and stand out among other commercials. Next to creating a unique business image, Ad Agencies implement advertisement continuity, planning and executing
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marketing activities that are in line and consistent with the company's image. Advertisement continuity thence tries to maintain the loyalty of the customers to the company. This means coming up with ads that will strengthen and edify the company's high quality standards and outstanding appeal, churning out ads that stick to the company's image but are definitely showing quality growth better than those of its rivals. The success of creating a specific business image for a company is determined by the revenue that it gains after the advertisements have been shown to the public. Creating a business image is crucial in as much as it will either decrease or increase sales and dictate the chances of the company to charge higher prices for its p r o d u c t s a n d s e r v i c e s , a m a i n f a c t or f or f u t ur e e x p a n s i o n .
T h e R o l e of a n A d v e r t i s i n g A g e n c y
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Probably the main reason outside agencies are used is that they provide the client with the services of highly s k i l l e d i n d i v i d u a l s w h o ar e s p e c i a l i s t s i n t h e i r c h o s e n fields. An advertising agency staff may include artists, w r i t e r s , m e d i a a n a l y s t s , r e s e a r c h e r s , a n d o t h er s w i t h specific skills, knowledge, and experience who can help market the clients products or services. M a n y a g e n c i e s s p e c i a l i z e i n a p ar t i c u l a r t y p e o f business and use their knowledge of the industry to assist their clients. For example, Mentus Inc. is an agency that specializes i n i n t e g r a t e d m a r k e t i n g c o m m u n i c a t i o n s f or t h e hi g h technology, ecommerce, and bioscience industries. An outside agency can also provide an objective viewpoint of the market and its business that is not subject t o i n t e r n a l c o m p a n y p o l i c i e s , b i a s e s , o r ot h e r l i m i t a t i o n s . T h e a g e n c y c a n d r a w o n t h e br o a d r a n g e o f e x p e r i e n c e i t h a s gained while working on a diverse set of marketing problems for various clients. For example, an ad agency that is handling a travelr e l a t e d a c c o u n t m a y h a v e i n d i v i d u a l s w h o h a v e w or k e d w i t h airlines, cruise ship companies, travel agencies, hotels, and other travel-related industries. T h e a g e n c y m a y h a v e e x p e r i e n c e i n t h i s a r e a or m a y e v e n have previously worked on the advertising account of one of the clients competitors. Thus, the agency can provide the client with insight into the industry (and, in some cases, the competition).
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Responsibility for IMC Agency versus Client Surveys of advertisers and agency executives have shown t h a t b o t h g r o u p s b e l i e v e i nt e g r a t e d m a r k e t i n g i s i m p o r t a n t to their organizations success and that it will be even more important in the future. One agency executive recently noted that 75 percent of the requests for proposals the agency now receives are from clients seeking total communication solutions. However, marketers and agency executives have very d i f f e r e n t o p i n i o n s r e g a r d i n g w h o s h o u l d b e i n c h ar g e of t h e integrated marketing communications process. M a n y a d v e r t i s e r s p r e f e r t o s e t s t r a t e g y f or a n d c o or d i n a t e their own IMC campaigns, but most agency executives see this as their domain. While agency executives believe their shops are capable of handling the various elements an integrated campaign requires, many m a r k e t e r s , p a r t i c u l a r l y l ar g e r f i r m s , di s a g r e e . Marketing executives say the biggest obstacle to implementing IMC is the lack of people w i t h t h e b r o a d p e r s p e c t i v e a n d s k i l l s t o m a k e i t w or k . Internal turf battles, agency egos, and fear of budget r e d u c t i o n s a r e a l s o c i t e d a s m a j o r b a r r i er s t o s u c c e s s f u l integrated marketing campaigns. M a n y a d a g e n c i e s a r e a d d i n g m or e r e s o u r c e s t o o f f er t h e i r c l i e n t s a f u l l l i n e o f s e r v i c e s . T h e y ar e e x p a n d i n g t h e i r a g e n c i e s c a p a b i l i t i e s i n i nt e r a c t i v e a n d m u l t i m e d i a a d v e r t i s i n g , d a t a b a s e m a n a g e m e n t , d i r e c t m ar k e t i n g , p u b l i c relations, and sales promotion. However, many marketers still want to set the strategy for their IMC campaigns and seek specialized expertise, more quality and creativity, and greater control and cost efficiency by using multiple providers. Most marketers do recognize that ad agencies will no longer stick primarily to advertising and will continue to expand t h e i r I M C c a p a b i l i t i e s . T h e r e i s a n o p p o r t u n i t y f or a g e n c i e s
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to broaden their services beyond advertisingbut they will h a v e t o d e v e l o p t r u e e x p e r t i s e i n a v a r i e t y of i n t e gr a t e d m a r k e t i n g c o m m u n i c a t i o n s ar e a s . O n e t h i n g i s c e r t a i n : a s companies continue to shift their promotional dollars away f r o m m e d i a a d v e r t i s i n g t o o t h er I M C t o o l s , a g e n c i e s w i l l continue to explore ways to keep these monies under their roofs.
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CHAPTER-V MAPPING THE ROLE OF IMC IN AD-WORLD

The Growth of Advertisement and Promotion Advertising and Promotion An Integrated Marketing Communication Perspective Major characteristics of this marketing revolution Agencies learn that its about More Than Advertising How the Entertainment Industry Capitalizes On Integrated Marketing Communications IMC Takes Center Stage
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The Growth of Advertisement and Promotion A d v e r t i s i n g a n d p r o m o t i o n a r e a n i n t e g r a l p ar t of o ur s o c i a l a n d e c o n o m i c s y s t e m s . I n o ur c o m p l e x s o c i e t y , a d v e r t i s i n g h a s e v o l v e d i n t o a v i t a l c o m m u n i c a t i o n s s y s t e m f or b o t h consumers and businesses. The ability of advertising and other promotional methods to deliver carefully prepared m e s s a g e s t o t a r g e t a u d i e n c e s h a s g i v e n t h e m a m a j or r o l e i n t h e m a r k e t i n g p r o g r a m s of m o s t or g a n i z a t i o n s . C o m p a n i e s r a n g i n g f r o m l a r g e m u l t i n a t i o n a l c or p o r a t i o n s t o small retailers increasingly rely on advertising and p r o m o t i o n t o h e l p t h e m m ar k e t p r o d u c t s a n d s e r v i c e s . I n market-based economies, consumers have learned to rely on a d v e r t i s i n g a n d o t h e r f or m s of p r o m o t i o n f o r information they can use in making purchase decisions. Evidence of the increasing importance of advertising and p r o m o t i o n c o m e s f r o m t h e gr o w t h i n e x p e n d i t u r e s i n t h e s e a r e a s . I n 1 9 8 0 , a d v e r t i s i n g e x p e n d i t ur e s i n t h e U n i t e d S t a t e s were $53 billion, and $49 billion was spent on sales p r o m o t i o n t e c h n i q u e s s u c h a s pr o d u c t
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samples, coupons, contests, sweepstakes, premiums, rebates, and allowances and discounts to retailers. B y 2 0 0 2 , n e a r l y $ 2 4 0 bi l l i o n w a s s p e n t o n l o c a l a n d national advertising, while spending on sales promotion p r o g r a m s t a r g e t e d t o w a r d c o n s u m e r s a n d r e t a i l e r s i n cr e a s e d t o m o r e t h a n $ 2 5 0 b i l l i o n . C o m p a n i e s b o m b ar d e d t h e U . S . consumer with messages and pr o m o t i o n a l offers, collectively spending more than $30 a week on every man, woman, and child in t h e c o u n t r y n e a r l y 5 0 p e r c e n t m or e p er c a p i t a t h a n i n a n y other nation. P r o m o t i o n a l e x p e n d i t u r e s i n i n t e r n a t i o n a l m ar k e t s h a v e grown as well. Advertising expenditures outside the United S t a t e s i n c r e a s e d f r o m $ 5 5 bi l l i o n i n 1 9 8 0 t o n e a r l y $ 2 1 4 b i l l i o n b y 2 0 0 2 . 2 B o t h f or e i g n a n d d o m e s t i c c o m p a n i e s s p e n d b i l l i o n s m o r e o n s a l e s p r o m ot i o n , p e r s o n a l s e l l i n g , direct marketing, event sponsorships, and public relations, a l l i m p o r t a n t p a r t s o f a f i r m s m ar k e t i n g c o m m u n i c a t i o n s program. T h e t r e m e n d o u s g r o w t h i n e x p e n d i t ur e s f or a d v e r t i s i n g a n d p r o m o t i o n r e f l e c t s i n p ar t t h e g r o w t h of t h e U .S . a n d g l o b a l e c o n o m i e s a n d t h e e f f or t s of e x p a n s i o n - m i n d e d m ar k e t e r s t o take advantage of growth opportunities in various regions of the world. T h e g r o w t h i n p r o m o t i o n a l e x p e n d i t u r e s a l s o r ef l e c t s t h e fact that marketers around the world recognize the value and i m p o r t a n c e o f a d v e r t i s i n g a n d p r o m ot i o n .
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Advertising and Promotion An Integrated Marketing Communication Perspective For many years, the promotional function in most companies was dominated by mass media advertising. Companies relied primarily on their advertising agencies for guidance in nearly all areas of marketing communication. Most m a r k e t e r s d i d u s e a d d i t i o n a l pr o m o t i o n a l a n d m a r k e t i n g c o m m u n i c a t i o n t o o l s , b u t s a l e s pr o m o t i o n a n d d i r e c t marketing agencies as well as package design firms were generally viewed as auxiliary services and often used on a per-project basis. Public relations agencies were used to manage the o r g a n i z a t i o n s p u b l i c i t y , i m a g e , a n d a f f a i r s w i t h r el e v a n t p u b l i c s o n a n o n g o i n g b a s i s b u t w e r e n o t v i e w e d a s i n t e gr a l participants in the
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m a r k e t i n g c o m m u n i c a t i o n s pr o c e s s . M a n y m a r k e t e r s b u i l t s t r o n g b ar r i e r s ar o u n d t h e v ar i o u s marketing and promotional functions and planned and m a n a g e d t h e m a s s e p a r a t e p r a c t i c e s , w i t h di f f er e n t b u d g e t s , d i f f e r e n t v i e w s o f t h e m ar k e t , a n d d i f f er e n t g o a l s a n d objectives. These companies failed to recognize that the w i d e r a n g e o f m a r k e t i n g a n d pr o m o t i o n a l t o o l s m u s t b e c o o r d i n a t e d t o c o m m u n i c a t e e f f e c t i v e l y a n d pr e s e n t a consistent image to target markets. Many companies are realizing that communicating e f f e c t i v e l y w i t h c u s t o m e r s a n d o t h er s t a k e h o l d e r s i n v o l v e s m o r e t h a n t r a d i t i o n a l m ar k e t i n g c o m m u n i c a t i o n s t o o l s . Many marketers, as well as advertising agencies, are embracing the IMC approach and adopting total communication solutions to create and sustain r e l a t i o n s h i p s b e t w e e n c o m p a n i e s or br a n d s a n d t h e i r customers. S o m e a c a d e m i c s a n d p r a c t i t i o n er s h a v e q u e s t i o n e d w h e t h e r the IMC movement is just a n o t h e r m a n a g e m e n t f a d . T h e m o v e t o w a r d i n t e gr a t e d marketing communications is one of the most significant marketing developments that occurred during the 1990s, and the shift toward this approach is continuing as we begin the new century. The IMC a p pr o a c h to m ar k e t i n g communications planning and strategy is being adopted by both large and small companies, as well as ad agencies and has become popular a m o n g f i r m s p r o m o t i n g c o n s u m e r pr o d u c t s a n d s e r v i c e s a s well as business- to- business marketers. A fundamental reason is that they understand the value of strategically integrating the various communications functions rather than having them operate autonomously. By c o o r d i n a t i n g t h e i r m ar k e t i n g c o m m u n i c a t i o n s e f f o r t s , c o m p a n i e s c a n a v o i d d u pl i c a t i o n , t a k e a d v a n t a g e o f s y n e r g y among promotional tools, and develop more efficient and e f f e c t i v e m a r k e t i n g c o m m u n i c a t i o n s p r o gr a m s .
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A d v o c a t e s o f I M C a r g u e t h a t i t i s o n e of t h e e a s i e s t w a y s f o r a c o m p a n y t o m a x i m i z e t h e r e t ur n o n i t s i n v e s t m e n t i n marketing and promotion. Major changes have occurred among consumers with respect to demographics, lifestyles, media use, and buying and shopping patterns. F o r e x a m p l e , c a b l e T V a n d m or e r e c e n t l y d i g i t a l s a t e l l i t e s y s t e m s h a v e v a s t l y e x p a n d e d t h e n u m b er of c h a n n e l s a v a i l a b l e t o h o u s e h o l d s . S o m e of t h e s e c h a n n e l s o f f er 2 4h o u r s h o p p i n g n e t w o r k s ; o t h e r s c o n t a i n 3 0- o r 6 0 - m i n u t e direct-response appeals known as infomercials, which look m o r e l i k e T V s h o w s t h a n a d s . E v e r y d a y m or e c o n s u m e r s a r e surfing the Internets World Wide Web. O n l i n e s e r v i c e s s u c h a s A m er i c a O n l i n e a n d M i c r o s o f t Network provide information and entertainment as well as t h e o p p o r t u n i t y t o s h o p f or a n d o r d e r a v a s t a r r a y o f products and services. Marketers are responding by developing home pages on which they can advertise their products and services interactively as well as transact sales. Even as new technologies and formats create new ways for m a r k e t e r s t o r e a c h c o n s u m e r s , t h e y a r e a f f e c t i n g t h e m or e traditional media. Television, radio, magazines, and n e w s p a p e r s a r e b e c o m i n g m o r e f r a gm e n t e d a n d r e a c h i n g smaller and more selective audiences. The integrated marketing communications movement is also b e i n g d r i v e n b y c h a n g e s i n t h e w a y s c o m p a n i e s pr o m o t e t h e i r p r o d u c t s a n d s e r v i c e s . A m a j or r e a s o n f o r t h e g r o w i n g i m p o r t a n c e o f t h e I M C a p p r o a c h i s t h e o n g o i n g r e v ol u t i o n that is changing the rules of m a r k e t i n g a n d t h e r o l e of t h e t r a d i t i o n a l a d v e r t i s i n g a g e n c y . Major characteristics include: of this marketing dollars r e v o l u t i on m ed i a
A shifting of marketing advertising to other
f r om
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forms of promotion, particularly consumer- and tradeoriented sales promotions. Many marketers feel that traditional media advertising has become too expensive and is not costeffective. 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 m o v e m e n t a w a y f r o m r e l y i n g o n ad v e r t i s i n g focused a p p r o a c h e s , w h i c h em p h a s i z e m a s s m e d i a s u c h a s network television and n at i o n a l magazines, to solve communication p r o b l e m s . M a n y c o m p a n i e s a r e t ur n i n g t o l o w e r - c o s t , m or e targeted c o m m u n i c a t i o n t o o l s s u c h a s e v e n t m ar k e t i n g a n d 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. These large r e t a i l e r s a r e u s i n g t h e i r c l o u t t o d e m a n d l a r g e r pr o m o t i o n a l fees and allowances from manufacturers, a practice that often siphons money away from advertising. Moreover, new technologies such as c h e c k o u t s c a n n e r s g i v e r e t a i l e r s i nf o r m a t i o n o n t h e effectiveness of m a n u f a c t u r e r s p r o m o t i o n a l p r o gr a m s . T h i s i s l e a d i n g m a n y m a r k e t e r s t o s h i f t t h e i r f o c u s t o pr o m o t i o n a l t o o l s t h a t c a n produce
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short-term results, such as sale promotion. T h e r a p i d g r o w t h a n d d e v e l o p m e n t of d a t a b a s e marketing. M a n y c o m p a n i e s a r e b u i l di n g d a t a b a s e s c o n t a i n i n g c u s t o m e r names; g e o g r a p h i c , d e m o g r a p h i c , a n d p s y c h o g r a p h i c pr o f i l e s ; purchase p a t t e r n s ; m e d i a p r e f e r e n c e s ; c r e d i t r a t i n g s ; a n d ot h e r characteristics. Marketers are using this information to target consumers through a variety of direct-marketing methods such as telemarketing, direct m a i l , a n d d i r e c t - r e s p o n s e a d v e r t i s i n g , r at h e r t h a n r e l y i n g o n mass media. Advocates of the approach argue that database marketing is c r i t i c a l t o t h e d e v e l o p m e n t a n d p r a c t i c e of e f f e c t i v e I M C . D e m a n d s f o r g r e a t e r a c c o u n t a b i l i t y f r om a d v e r t i s i n g 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 s u c h a s s a l e s , m a r k e t s h a r e , a n d p r of i t a b i l i t y . D e m a n d s f o r accountability are motivating many agencies to consider a variety of communication tools and less expensive alternatives to mass-media advertising. T h e r a p i d g r o w t h of t h e I n t e r n e t , w h i c h i s c h a n g i n g the very nature of how companies do business and the ways they communicate and interact with consumers.
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T h e I n t e r n e t r e v o l u t i o n i s w e l l u n d e r w a y , a n d t h e I n t er n e t a u d i e n c e i s g r o w i n g r a p i dl y . T h e Internet is an interactive medium that is becoming an integral part of communication strategy, and even business strategy, for many companies. Companies are thus recognizing that they must change the w a y s t h e y m a r k e t a n d p r o m ot e t h e i r p r o d u c t s a n d s e r v i c e s . They can no longer be tied to a specific communication tool ( s u c h a s m e d i a a d v e r t i s i n g ) ; r a t h er , t h e y s h o u l d u s e w h a t e v e r c o n t a c t m e t h o d s of f e r t h e b e s t w a y of d e l i v er i n g the message to their target audiences. Ad agencies continue t o r e p o s i t i o n t h e m s e l v e s a s o f f e r i n g m or e t h a n j u s t advertising expertise; they strive to convince their clients t h a t t h e y c a n m a n a g e a l l o r a n y p a r t of c l i e n t s i n t e g r a t e d communications needs. M o s t a d v e r t i s i n g a g e n c i e s r e c o g n i z e t h a t t h e i r f u t ur e success depends on their ability to understand all areas of promotion and help their clients develop and implement integrated marketing communications programs.
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Agencies learn that its about More Than Advertising D u r i n g t h e l a t e 1 9 8 0 s m a n y o f t h e w o r l d s l ar g e s t advertising agencies recognized that their clients were s h i f t i n g m o r e a n d m o r e of t h e i r pr o m o t i o n a l b u d g e t s a w a y f r o m t r a d i t i o n a l m e d i a a d v er t i s i n g t o o t h er a r e a s of marketing communication such as direct marketing, public relations, sales promotion, and event sponsorship. In response to this trend, many of these agencies began acquiring companies that were specialists in these areas and e n d e d u p t u r n i n g t h e m i n t o pr o f i t - c e n t e r e d d e p a r t m e n t s o r s u b s i d i a r i e s t h a t o f t e n e n d e d u p b a t t l i n g o n e a n o t h e r f or a p i e c e o f t h e i r c l i e n t s p r o m ot i o n a l b u d g e t . W h i l e t h e agencies could point to these specialists when touting their IMC capabilities, there was really little emphasis on integrating the various communication functions. During the 90s, some agencies began taking steps to place m o r e o f a n e m p h a s i s o n I M C b y t r u l y i n t e gr a t i n g i t i n t o a l l aspects of their operations. For example, the Leo Burnett Agency brought in directm a r k e t i n g , s a l e s p r o m o t i o n , e v e n t m ar k e t i n g , a n d p u b l i c r e l a t i o n s p r o f e s s i o n a l s a n d d i s p e r s e d t h e m t hr o u g h o u t t h e agency. Burnetters were expected to interact with clients not as advertising specialists who happened to know about s a l e s p r o m o t i o n , d i r e c t m ar k e t i n g , o r p u b l i c r e l a t i o n s b u t a s g e n e r a l i s t s a b l e t o w or k w i t h a v a r i e t y o f i n t e g r a t e d m a r k e t i n g t o o l s . A n o t h e r a g e n c y t h a t e m br a c e d I M C w a s F a l l o n M c e l l i g o t t , w h i c h h i r e d a pr e s i d e n t of i n t e g r a t e d m a r k e t i n g a n d e x p a n d e d i t s c a p a b i l i t i e s i n ar e a s s u c h a s P R , events, and interactive advertising. As we begin the new millennium, the shift toward IMC is taking place at a number of major ad agencies that are
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recognizing they must embrace a way of doing business that doesnt always involve advertising. Many companies are developing campaigns and strategies using event m a r k e t i n g , s p o n s o r s h i p s , d i r e c t m a r k e t i n g , t a r g e t e d r a di o , a n d t h e i n t e r n e t w i t h o n l y p e r i p h er a l u s e o f pr i n t a n d T V a d v e r t i s i n g . T h e i n t e r n e t p o s e s a p ar t i c u l a r t h r e a t t o traditional agencies as it is not well understood by many agency veterans and is taking yet another slice from the marketing communications budget pie. Foote, Cone & Belding is r e m a k i n g i t s e l f a s a n e w e c o n o m y a d a g e n c y b y b ui l d i n g u p its capabilities in areas such as direct marketing, interactive, customer relationship, management database, event marketing, and sports marketing. FCB touts its ability t o o f f e r c l i e n t s a b r o a d s p e c t r u m of i n t e g r a t e d m a r k e t i n g c o m m u n i c a t i o n s s e r v i c e s t hr o u g h i t s m o d e l of o n e , which ensures that all these services are seamlessly integrated and unified. All efforts are managed under one team and based on one s t r a t e g y a n d o n e b r o a d cr e a t i v e i d e a . A t J . W a l t e r Thompson, the agencys CEO, Chris Jones, has championed a p r o g r a m c a l l e d T h o m p s o n T o t a l B r a n d i n g ( T T B) t h a t m a k e s J W T t h e m a n a g e r o f a c l i e n t s br a n d . T T B i n v o l v e s taking what the agency calls a branding idea and d e v e l o p i n g a t o t a l c o m m u ni c a t i o n s p l a n t h a t h e l p s decide which integrated marketing tools can most powerfully and persuasively communicate it. One of the c o m p a n y e x e c u t i v e s n ot e s , A g e n c i e s a r e f i n a l l y r e a l i z i n g that our job is creating branding solutions and, while those may involve advertising, its not necessarily about advertising. Thats a fundamental change in the way we operate. The ability to use various IMC tools has helped the agency secure new accounts and strengthens relationships with existing clients. While traditional agencies have marketing for years, many have it. However, these agencies are their course if they plan to be b e e n p r e a c h i n g i n t e gr a t e d not been really practicing realizing they must alter c o m p e t i t i v e i n t h e f u t ur e .
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They are retraining their staffers in the use and best practices of various IMC tools and getting them, at long last, to focus on total communications solutions to their clients businesses.
How the Entertainment Industry Capitalizes On Integrated Marketing Communications With many channels and media options in the league, the entertainment industry is not left behind in advertising to prove its existence. Each channel can be viewed as a p r o d u c t f o r d i f f e r e n t s e t of c o n s u m e r s , i n t h i s c a s e , v i e w e r s . It is not just enough to air a channel, it is equally important to communicate it properly. Entertainment industry thus is convinced that using IMC to advertise itself is the n e e d o f t h e h o u r . A s t h e e n t er t a i n m e n t i n d u s t r y i s f o r c e d t o become more creative in r e a c h i n g i t s a u d i e n c e s , t h e o p p or t u n i t i e s f or m a r k e t i n g communications are endless. With burgeoning franchises, entertainment companies have begun to delve deeper into marketing strategies that enable them to connect with their customers a c r o s s t h e i r w h o l e r a n g e of p r o p er t i e s a n d c o m m u n i c a t i o n divisions. The hype about integration has created a "buzz" in E n t e r t a i n m e n t I n d u s t r y t h a t h a s t h e i n d u s t r y t ur n i n g o u t some of the best marketing strategies and campaigns in years.
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E n t e r t a i n m e n t c o m p a n i e s a r e d ef i n i n g t h e i r s u c c e s s w i t h w e l l t h o u g h t - o u t , c o n s u m e r - dr i v e n s t r a t e g i e s a n d a r e u s i n g an array of marketing tools to connect with audiences in more relevant and creative ways. In the process, integrated marketing communications (IMC) is beginning to take center stage as the entertainment industrys shining star.
IMC Takes Center Stage IMC has taken center stage in the entertainment industry as a result of s e v e r a l f a c t o r s a n d t r e n d s . T w o of t h e g r e a t e s t of t h e s e factors driving IMC principles are: The Proliferation of Media Choices The proliferation of media has fragmented audiences, m a k i n g i t h a r d e r a n d h a r d er t o r e a c h t h e m t h r o u g h traditional means. Todays media competitive frame i n c l u d e s a p p r o x i m a t e l y 1 2 n e t w or k s , 2 1 3 c a b l e c h a n n e l s , hundreds of radio stations and even more magazines. At the same time, consider the number of movies and home videos released each month. Even still, we must add the thousands of websites available on the Internet to this media mix. The Changes in Consumer Media Consumption. As the number of media options has increased, audiences h a v e b e c o m e m o r e d i v er s i f i e d . V i e w e r s a r e n o w a b l e t o
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make choices in their media consumption that match their specific interests. U s i n g c r e a t i v i t y a n d m ar k e t i n g s a v v y , t h e e n t e r t a i n m e n t industry has successfully capitalized on aligning communication vehicles through the following four principles:
Case Study Principle I Focus On Consumer T h e i n d u s t r y i s i n c r e a s i n g l y b e c o m i n g m or e c o n s u m e r focused, using media outlets to find out what their c o n s u m e r s w a n t a n d t h e n d e l i v er i t t o t h e m t h r o u g h w e l l defined, specific formats and programming. Entertainment companies are proving that they know this theory better than most others. The business is using i n t e g r a t e d m a r k e t i n g pr i n c i p l e s t o c o n n e c t w i t h i t s c u s t o m e r s n o t o n l y t hr o u g h i t s a d v e r t i s i n g m e s s a g e s , b u t also through the entertainment product it offers. A s e x p l a i n e d e a r l i e r , t h e pr o l i f e r a t i o n o f m e d i a t o d a y h a s resulted in
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extreme audience segmentation.
For example, the JAAGRAN network reaches ethnic viewers, NICKELODEON of f e r s specific c h i l dr e n programming, and ESPN attracts sports fans. The rise of such specific television formats indicates that the industry is moving toward segmentation strategies. The effects of audience segmentation in the entertainment industry have led to marketing strategies shaped by the consumer.
C a s e i n P o i n t - T h e R u g r at s o n N i c k e l o d e o n N i c k e l o d e o n d e m o n s t r a t e s t h i s pr i n c i p l e i n i t s e x p l i c i t commitment to its consumers kids. Nickelodeon is the c r e a t o r o f t h e f i r s t t e l e v i s i o n n e t w o r k f or k i d s . T h e n e t w o r k b e c a m e t h e 2 4 - h o u r c a b l e r a t i n g s l e a d e r f or t h e f i r s t t i m e i n 1995 and continues to hold the title today. K i d s a r e a t t h e v e r y c o r e of t hi s n e t w o r k . A s i t s w e b s i t e touts, kids are the creators, drawers, thinkers and writers for everything that takes place on Nickelodeon.
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A s a r e s u l t o f t h i s c a b l e c h a n n e l s p h i l o s o p h y , m u c h of i t s programming follows the same lead. For example, The R u g r a t s , i s a n a n i m a t e d s e r i e s a b o u t l i f e f r o m a t o d d l er s point of view and is written completely from a childs perspective. The growing success of this animated series could be trumpeted as the result of the audience perspective upon which it is based.
Principle II Vehicles
Aligning
Marketing
Communications
Another essential communication principle appearing in e n t e r t a i n m e n t m a r k e t i n g s t r a t e g i e s i n v o l v e s t h e v ar i o u s communication tools employed in delivering messages to consumers. The spotlight on the entertainment industrys marketing s t r a t e g i e s i s m o s t e v i d e n t t h r o u g h t h e cr e a t i v e e x e c u t i o n s t h a t t h e v a r i o u s m a r k e t i n g m i x e l e m e n t s of f e r t h e entertainment industry.
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With all of the competition, the entertainment industry can no longer create something and expect people to come see it. Instead, it has to promote it and promote it right. This m e a n s c o m m u n i c a t i n g w i t h i t s a u d i e n c e s a t e v er y p o i n t t h a t they interact with the brand. Case in Point: The Rugrats Movie T h e m a r k e t i n g c a m p a i g n f or t h e r e l e a s e of N i c k e l o d e o n s The Rugrats Movie demonstrates how a successful entertainment marketer builds this experience across all brand contacts. The movie was scheduled to open November 25, 1998. The integrated marketing s t r a t e g y f o r t h i s a n i m a t e d f i l m b a s e d on t h e T V s e r i e s i n c l u d e d c o m p u t e r g a m e s , C D s , m a g a z i n e s , b o ok s , a comic strip, toys, an amusement park and a live stage show. T h e o f f i c i a l b u i l d u p of t h e m o v i e b e g a n w i t h o n - c h a n n e l pr o m o t i o n , including new TV episodes, leading to one that sets up the movie by revealing that the main characters mom is pregnant. Other R u g r a t s pr o m o t i o n a l s u p p o r t included a partnership with Burger King for a Kids Club promotion. Also in the marketing mix was the release of two computer programs in t h e m o n t h p r e c e d i n g t h e m o v i e r el e a s e , o n e of which was based on the movie itself. F u r t h e r m o r e , t h e R u g r a t s m ar k e t i n g b l i t z i n c l u d e d : A newspaper comic strip. A g u e s t a p p e a r a n c e a t P ar a m o u n t s K i n g I s l a n d w h e r e k i d s w i l l h a v e a n o p p or t u n i t y t o m e e t t h e i r favorite Rugrats characters during a "Rugrats Weekend. A l i v e m u s i c a l t o ur .
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A Simon & Schuster book series to coincide with the U.K. r e l e a s e o f t h e m o vi e . R u g r a t s m e r c h a n d i s e a n d h u n d r e d s of l i c e n s e s f o r Rugrats items (including dolls, board games, clothing, bedding, videos, fruit snacks, school supplies, greeting cards and party goods). T h r o u g h t h i s c o m pr e h e n s i v e m a r k e t i n g s t r a t e g y , Nickelodeon brought The Rugrats and the movie into the lives of its audience in all ways that it i n t e r a c t s w i t h t h e br a n d . Principle III Measurement and Feedback Loop As the entertainment industry has moved toward more consumer focused strategies, it has integrated the customer into the feedback loop in order to find out exactly what its specific target is seeking. T h e I n t e r n e t i s o n e of t h e m o s t r e c e n t w a y s t h a t t h e entertainment industry is working to close the loop in c o m m u n i c a t i n g w i t h t h e i r a u d i e n c e s . T h e I n t er n e t a l l o w s t h e entertainment industry to receive first-hand feedback about p r o d u c t s f r o m i t s a u d i e n c e s , w h i l e b ui l d i n g r el a t i o n s h i p s i n the process.
Case in Point : Disney.com Entertainment franchises are quickly l e a r n i n g h o w t o t a k e a d v a n t a g e of

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this new opportunity called the Internet. Disney has long set t h e s t a n d a r d f o r m a r k e t i n g s u c c e s s , ut i l i z i n g s e v e r a l i n t e g r a t e d m a r k e t i n g pr i n c i p l e s s u c h a s c o r p or a t e s y n e r g y . Recently the marketing franchise has expanded its ability to connect with its audience through its corporate home page. According to a survey, Disneys website was recently ranked number nine on a list ranking several websites ability to build r e l a t i o n s h i p s . D i s n e y . c o m i n c or p o r a t e s s e v e r a l v e h i c l e s t o connect with its audience
One method Disney utilizes to accomplish this task is through live chat events where kids can talk to their favorite Disney stars online. The use of such tactics is building relationships with their viewers that were never possible before. Another way that Disney.com builds relationships is by e x p a n d i n g t h e e n t er t a i n m e n t e x p e r i e n c e o n l i n e . I t s website features opportunities such as Club Disney, real play areas in two locations, where they can plan t h e i r t r i p s , t o u r s a n d b i r t h d a y p ar t i e s o n l i n e b e f or e they visit. I n a d d i t i o n , t h e w e b s i t e pr o v i d e s k i d s a n d t h e i r f a m i l i e s d i r e c t a c c e s s t o a l l a s p e c t s of t h e W a l t Disney franchise including its movies, the amusement parks, the Disney Channel, Radio Disney, its TV s h o w s , t h e c o m p a n y s c r ui s e l i n e , t h e D i s n e y V a c a t i o n C l u b , t h e D i s n e y M a g a z i n e , a n d a l l of t h e o t h e r v a r i o u s c o m p a n y d i v i s i o n s s p a n n i n g c o m p u t e r s o f t w ar e t o home video.
In this way, Disney is always accessible to kids and their p a r e n t s . A l s o , t h e w a y i n w h i c h D i s n e y . c o m pr o v i d e s a u d i e n c e c o n t a c t w i t h a l l d i v i s i o n s of t h e c o m p a n y h e l p s t o r e i n f o r c e a l l t h a t D i s n e y h a s t o of f e r i t s c u s t o m e r s . T h e o u t s t a n d i n g p e r f o r m a n c e s t h a t t h e e n t er t a i n m e n t i n d u s t r y has executed certainly suggest that integrated marketing communications deserves a star on Hollywoods famous "Walk of Fame." However, the industry would be amiss if it d i d n o t r e c o g n i z e t h e w a y s i n w h i c h i t c o u l d f u r t h er i t s alignment with IMC practices and principles.
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Success Factors
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T h e E n t e r t a i n m e n t I n d u s t r y s u s e o f I n t e gr a t e d M a r k e t i n g C o m m u n i c a t i o n s h i g h l i g h t s s o m e s u c c e s s f a ct o r s f or effectiveness and these include: Segmenting valuable customers. Analyzing profitability. Examining customer, brand points with the Company Marketing based similarities. on & stakeholder contact not
consumer
differences,
U s i n g d a t a b a s e s f o r b e h a v i or a l s e g m e n t a t i o n a n d l e a d management. Creating strategic, initiatives. effective communications-based
D r i v i n g c o m m u n i c a t i o n s t o a n e w l e v e l of c u s t o m e r and stakeholder fulfillment retention. Achieving consumer satisfaction profitability. Conclusion and bottom-line
For many years, the promotional function in most companies was dominated by mass-media advertising. However, more a n d m o r e c o m p a n i e s a r e r e c o g n i z i n g t h e i m p or t a n c e o f integrated marketing communications, coordinating the various marketing and promotional elements to achieve m o r e e f f i c i e n t a n d e f f e c t i v e c o m m u n i c a t i o n pr o g r a m s . A number of factors underlie the move toward IMC by marketers as well as ad agencies and other promotional facilitators. R e a s o n s f o r t h e g r o w i n g i m p or t a n c e o f t h e i n t e gr a t e d m a r k e t i n g c o m m u n i c a t i o n s p er s p e c t i v e i n c l u d e a r a p i d l y
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changing environment with respect to consumers, technology, and media. The IMC movement is also being d r i v e n b y c h a n g e s i n t h e w a y s c o m p a n i e s m ar k e t t h e i r products and services A s h i f t i n m a r k e t i n g d o l l ar s f r o m a d v e r t i s i n g t o s a l e s promotion, the rapid growth and development of database m a r k e t i n g , a n d t h e f r a gm e n t a t i o n of m e d i a m a r k e t s ar e among the key changes taking place. Promotion is best viewed as the communication function of marketing. It is accomplished through a promotional mix that includes advertising, personal selling, publicity, public relations, sales promotion, direct marketing, and interactive /Internet marketing. T h e i n h e r e n t a d v a n t a g e s a n d d i s a d v a n t a g e s o f e a c h of t h e s e p r o m o t i o n a l m i x e l e m e n t s i n f l u e n c e t h e r o l e s t h e y pl a y i n t h e o v e r a l l m a r k e t i n g p r o gr a m . I n d e v e l o p i n g t h e promotional program, the marketer must decide which tools to use and how to combine them to achieve the organizations marketing and communication objectives.
BIBLIOGRAPHY 1. B u s i n e s s c o m m u n i c a t i o n ; o x f or d u n i v e r s i t y p r e s s , Philip kotter, 2010 2. M a r k e t i n g m a n a g e m e n t ; p e a r s o n e d u c a t i o n R a m a n , meenakshi2006. 3. M a r k e t i n g M a n a g e m e n t ; M c - gr a w hi l l . , S a x e n a , rajan,2008 4. Marketing Management by Masaaki Kotabe Michael R. Czinkota
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Webliography: http://en.wikipedia.org/wiki/Integrated_marketing_com munications
h t t p : / / w w w . m u l t i m e d i a m a r k e t i n g . c o m / m k c / m ar k e t i n g c o mmunication
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Introduction To IMC

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INTEGRATED MARKETING COMMUNICATION

VISHAKHA .A. PAWAR Roll no. 27

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

Marketing Communication. I further declare that the information

(VISHAKHA PAWAR) Roll No:27

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

Table of contents Preface Chapter 1:Literature Review

Chapter 2:Introduction to Integrated Marketing Communication Chapter 3:Process of IMC

INTEGRATED MARKETING COMMUNICATION

Objective of the study

INTEGRATED MARKETING COMMUNICATION

CHAPTER 1 LITERATURE REVIEW

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTRODUCTION TO INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

r e a s o n b e i n g t h a t P e p s i ' s i m a g e , p ar t i c u l a r l y i n i n t er n a t i o n a l markets, had been losing something in translation.

Everything Sends a Message

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

the and The but

It must speak to all stakeholders with a "single," consistent voice.

2 . I t m u s t a s s u m e t h e c o n s u m e r s ' p oi n t o f v i e w . 3.Its strategic communications internally integrated. disciplines must be

INTEGRATED MARKETING COMMUNICATION

4 . I t s m e s s a g e s m u s t c u t t hr o u g h cluttered commercial landscape.

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

consistency is where most companies who believe they a r e a l r e a d y i n t e g r a t i n g t h e i r m a r k e t i n g ef f or t s u s u a l l y fall short.

Factors Contributing to IMC's rising Prominence

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

your product or service, and separate it from the c o m p e t i t i o n i n t h e m i n d s of y o u r c u s t o m e r s a n d pr o s p e c t s .

CHAPTER -2 Process of IMC

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

Consist of sensory and life experiences that can easily b e i d e n t i f i e d a n d t r a n s f o r m e d i nt o a u n i f i e d c o n c e p t ,

INTEGRATED MARKETING COMMUNICATION

Have mental relationships to other categorized ideas, and

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

The Actual Process

INTEGRATED MARKETING COMMUNICATION

What depth do I want to gain in any media?

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

Model for Planning IMC

INTEGRATED MARKETING COMMUNICATION

E n c o u r a g e s t h e e s t a b l i s h m e n t of a m a r k e t i n g - t e a m approach to discuss strengths and weaknesses, mission

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION

INTEGRATED MARKETING COMMUNICATION