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An Introduction to

Integrated Marketing Communications


Learning Objective
• Understand marketing and marketing
communication
• Learn about the various promotional tools
• Understand IMC, its evolution and importance
• Appreciate interrelation and integration of
various promotional tools
• Comprehend the IMC model and programme
Integrated communication for Incredible
India
Marketing
• “The process of planning
and executing the
Product
conception, pricing,
promotion, and
distribution of ideas,
goods and services to
create exchanges that
satisfy individual and Promotion Marketing Price

organizational
objectives.”

- American Marketing Place


Association
Marketing communication
• Purpose: Seek a
cognitive, affective
Unconventional
Advertising
or behavioural tools

response from the


target audience Interactive tools Sales Promotion

Direct
Public Relations

• Marketing
Marketing

communication mix
Integrated marketing communication

A concept of marketing
communications planning Advertising

that recognizes the added


value of a comprehensive Interactive tools Sales Promotion

plan that evaluates the


strategic roles of a variety IMC
of communication
disciplines and combines Unconventional Direct

these disciplines to
tools Marketing

provide clarity, consistency Public


Relations/
and maximum Publicity

communications impact.
The growth of advertising & promotions (India)
Advertising in India Media Estimates
Growth of Digital Advertising in India
Reasons for the Growing Importance of IMC

From Toward
Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Traditional compensation Performance-based compensation

Limited Internet availability Widespread Internet availability


Advertising
• Any paid form of non-
personal presentation
and promotion of ideas
or products by an
identified sponsor

• Objectives
– Inform
– Persuade
– Remind
– Reinforce
Advertising

Strengths Weaknesses

Informs,
persuades,
Expensive
reminds,
reinforces

Builds brand
Cluttered
equity

Can reach large


audiences
Advertising types

Selective-
Brand-building Public service
demand

Tactical Corporate B2B


-Direct response

National Advocacy Trade

Retail Primary-demand …
Quick Q!
Ramroti Ltd. has come up with a first-of-its-kind
portable device that can make up to 500 rotis at
a time. Which of the following types of
advertising is most important to sell the
product?
a. Trade advertising
b. B2B advertising
c. Primary-demand advertising
d. Selective-demand advertising
e. Brand-building advertising
Sales promotion

Changes the price-value relationship of a product

Increases Increases
value value

OR OR AND

Decreases Decreases
price price
Sales promotion tools
Rebates Contests

Sampling Sweepstakes

Loyalty
Coupons
points

Consumer
Price Point-of-
discounts sales purchase
promotion Price deals Trade shows

Sales Training
contests programmes

Trade
Cooperative
Allowances sales advertising
promotion
CONTESTS

PRICE PACKS
FREE TRIALS BONUS PACKS
PREMIUMS PRODUCT WARRANTIES
CONTESTS COUPON
EVENT SPONSORSHIP
POINT OF PURCHASE DISPLAYS CROSS PROMOTION
Balancing sales promotion:
How much is too much?

Strengths Weaknesses
Immediate results Short-term results

Direct impact on sales Makes consumers deal prone

Measurable May erode brand equity & loyalty

Clears extra inventory Cluttered

Fights competitive promotions

Gets trade support

Less expensive than advertising


Direct marketing
Tools
• One-to-one approach that
uses advertising media to Direct mail
produce an inquiry, a
transaction and some
other immediate Direct response TV/radio
response
Mail-order catalogues
• No intermediary between
manufacturer & customer
Internet
• Requires a database
Telemarketing…
Direct marketing

Strengths Weaknesses
Highly targeted Expensive

Measurable Not suitable for large audiences

Personalization & customization possible

Two-way communication

Relationship building
Publicity
• Non-personal Tools
communication by • Press releases
third-party sources • Press conferences
• Special events
regarding an
• Opinion polls
organization’s products
• Interviews
• Contests
• Weblog writeups…
Public relations
• Positively influencing Tools
public opinion to build • Publicity tools
goodwill, and earn • Community affairs
appreciation and
acceptance • Events and
conventions
• May result in publicity
• Corporate advertising
• Lobbying…
The publics of PR

Community

Media Customers

PR
Government Employees

Shareholders
Publicity/PR

Strengths Weaknesses
Builds goodwill Little control

Low cost Hidden costs

Reaches many audiences Difficult to measure

No direct impact on sales


Internet as a
communication tool

Strengths Weaknesses
Direct, interactive Smaller audiences

Low in cost Difficult for non-savvy audiences

Personalized

Targeted

Up-to-date

Less intrusive
Internet tools

Websites

Emails

Blogs

Discussion forums

Online games…
3 Idiot Promotion through interactive media

Aamir went about marketing ‘3 Idiots’ online without having least understanding of
the social network products available.
“An interactive website was launched in alliance with Zapak.com with a college set-up
as the homepage. The website is designed keeping in mind the college atmosphere,
complete with a hostel, classroom, toilet, canteen and a few special added features.
On the day the website was launched, Aamir Khan along with R.Madhavan, Sharman
Joshi and Kareena Kapoor chatted with their fans online at a specific time, giving
them exclusive information about the film” –Source.
Axe creates a sensation!
Personal selling
• Personal presentation by a
representative of an Strengths
organization with the • Targeted, flexible,
purpose of influencing interactive, measurable,
consumer buying decision, offers immediate
making a sale, or building feedback, ideal for high-
value & high-deliberation
long-term relationships products & niche
audiences

Weaknesses
• Expensive, not suitable
for large audiences
Unconventional media

Packaging
Customer
POP
service
Novel
Events, Media Advertising
Trade shows Specialties-printed

Sponsorships
Tide-P&G Integrated marketing
communication through
unconventional media
• Put up 5.5 km long clothsline with 2,400 clothes
hanging on it.
• Tide branding dotting it intermittently
• Put up on June 15,2007 in the city of Hyd at its
historical Hussain Sagar Lake.
• Efforts shocked people (‘Chaunk Gaye’) & passers by
taken photos and uploaded on various sites.
• Won Limca Book of Records as India's longest
clothsline.
• Ad-agency – Arc Worldwide
Quick Q!
Which of the following tools of
communication is likely to create the
highest credibility among consumers?
a. Advertising
b. Publicity
c. Sales promotion
d. Packaging
e. Personal selling
Integrated marketing communication
(IMC)

• Various promotional tools provide


consistent messages to target audiences
for clarity, consistency & impact

• One voice, one message, one strategy


Pepsodent Bhoot Police

Jingle on ‘The School contact Interactive Chorus by


Midday show’ programmes website dabbawallas

Encourage kids
Pepsodent
to brush teeth Contest to
commercials at night write lyrics

12 lakh kids signed the pledge,


campaign won EMVIES’06
Kingfisher integrates
‘the good times’ experience
The IMC model
Marketing plan Product
(objectives & strategies)

Promotion
Integrated Price
Advertising Marketing

Low control
Sales Promotion
messages

Place

IMC
Direct
Interactive tools
Marketing

Public
Unconventional
Relations/
tools
Publicity
Cadbury manages a crisis with IMC
Corporate objectives & IMC objectives &
strategies strategies

Marketing objectives & Situational Problem


analysis determination
strategies

Situational Marketing
analysis objectives Budget Communication
determination objectives

Implementation Marketing
tactics strategies Implementation
IMC strategies
tactics

Monitor/evaluate Monitor/evaluate
performance The IMC planning process perfomance
The Marketing Plan

1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance


Integrated Marketing Communications Planning Model

Review of Marketing Plan

Promotional Program Situation Analysis


Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Sales PR/ Personal Direct Internet/


Advertising
Promotion Publicity Selling Marketing Interactive

Advertising Sales PR/ Personal Direct Internet/


Promotion Publicity Selling Marketing Interactive
Objectives Objectives Objectives Objectives Objectives Objectives

Message Sales PR/ Personal Direct Internet/


Promotion Publicity Selling Marketing Interactive
Strategy Strategy Strategy Strategy Strategy Strategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program


The Marketing Plan

A document that describes the overall marketing strategy and


programs developed for a company, product or brand. The plan
includes:
A detailed situation analysis
Specific marketing objectives

A marketing strategy and program that includes selection of a


target market and plans for marketing mix elements
A program for implementing the strategy
A process for monitoring and evaluating performance
Situation Analysis
• Internal Factors
– Assessment of the firm’s promotional organization and
capabilities
– Review of the firm’s previous promotional programs
– Assessment of firm or brand image and implications for
promotion
– Assessment of relative strengths and weaknesses of
product/service
• External Factors
– Customer analysis
– Competitive analysis
– Environmental analysis
IMC Program Situation Analysis
External Factors

• Environmental analysis
– Technological Political/Legal
– Demographic Socio/Cultural
– Economic
• Competitive Analysis
– Direct and indirect competitors
– Position relative to competitors
– Size of competitors’ advertising/
promotional budgets
– IMC strategies being used by competitors
IMC Program Situation Analysis
External Factors

Customer Analysis
• Who buys our product or service?
• Who initiates and makes the decision
• to purchase and who influences the process?
• How is the purchase decision made?
• What attributes or criteria are important to customers?
• What are customers’ perceptions of and attitudes
toward our company, product/service or brands?
• What factors influence the decision making process?
• Contact points where customers can be reached?
Analysis of Communications Process

 Analyze response process of customers


in the target audience.

 Analyze best combination of source,


message and channel factors for
communicating with target audience.

 Establish communication goals and objectives.


Potential Communications Objectives
• Sales
• Customer loyalty
• Company image
• Brand image
• Store patronage • An inquiry
• Service contract • A visit by a prospect
• Product trial
• Recommendation
• Adoption of the product
The objectives of this ad include image building and
encouraging inquiries
Contact Points Where Customers
Can Be Effectively Reached
Mass media Events/sponsorships
 Broadcast - radio/TV  Local
 Newspapers  Regional
 Magazines  National/international
Direct Marketing Sales Promotions
Internet/interactive In-store/POP
Brochures, sales literature Product placements in movies and
Publicity/PR television shows
Promotional products
Develop Integrated Marketing Communications
Program
Advertising
Determine objectives and budget
Message development
 Called “Creative Strategy”
 Determine basic appeal
 Determine main message
Media strategy
 Communication channels
 Type of media . . .
 Newspapers/Magazines
 Radio/Television
 Outdoor/Specialty
Select specific media
 Specific papers, magazines, TV programs, radio stations, billboards, or
other media
Integrate and Implement Marketing Communications
Strategies
 Integrate promotional mix strategies.
 Create and produce ads.
 Purchase media time and space
 Design and implement direct marketing programs
 Design and implement sales promotion
program
 Design and implement public relations/
publicity programs
 Design and implement interactive/
internet marketing programs
Monitor, Evaluate and Control Integrated Marketing
Communications Program

• Evaluate promotional program results and


determine effectiveness

• Take actions to control and adjust promotional


programs