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An Introduction to Integrated Marketing Communications

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

IMC
Varying terminology: New advertising, one-to-one marketing, integrated marketing, etc.. It has emerged naturally mainly due to changes in three main areas: - The market place - Media and Communications - Consumers Primarily driven by advances in information technology Has lead to more customer-centered, database-driven, interactive and mesurable approaches.

What is Marketing?
An organizational function Processes for creating, communicating, and delivering value to customers Managing customer relationships in ways that benefit the organization and its stakeholders

Value Relationship marketing Mass customization Customer relationship management (CRM)

Marketing Mix The four Ps

Product
Price Place Promotion

1. Definition by The American Ass. Of Advertising Agencies (1989)

The most widely used and the most cited of the five Its states: A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines generel advertising, direct responce, sales promotion, public relations and combines these disciplines to provide clarity, consistency, and maximum communication impact. Includes: the need for a marketing communications plan that unifies the various tools used to provide a synergy that would otherwise be lost. One spirit, one voice, one look All dicisplines should work together to become more eficient, but without losing their individual identity.

Inadequacies
It however lacked things like measurability and quantification analysis, drive for result, consumer orientation, aspects of creativity, cost-efectiveness, costefficiency, and interactivity (Kitchen and Schultz, 1999). There is an exclusion of consumers and no guidelines to how effectiveness might be achieved. (Duncan and Gaywood, 1996) Is IMC only about the use of multiple communication disciplines? Lack of references on consumers, prospects, etc.. It is problematic that the definition does not include measurement issues!

2. Definition by Don Schultz, Northwestern University( 1991)

IMC is the process of managing all sources of information about a product/service to which a customer or prospect is exposed which behaviorally moves the consumer towards a sale and maintains customer loyalty. This definition focuses on the consumer or prospect as well as the relationship between the brand and the customer. Includes all contact points between the two.

Inadequencies
Sees IMC as just process and not as a concept

3. Definition by Tom Duncan (1992 and 1994)

Definition of 1992: The strategic coordination of all mesages and media used by an organization to collectively influence its percieved brand value. The revised definition of 1994: IMC is the process of strategically controlling or influencing all messagess and encouraging purposeful dialogue to create and nourish profitable relationships with customers and other stakeholders. This last definition by Duncan and Gaywood revised so that it would also include: All employees, regulators and parties that come in contact with the organisation. More emphasis on creating long-term effects by looking out for the relationship with those involved with the company.

Inadiquacies
Does not take the outside-in perspective into account. messages can be both controlled and uncontrolled. -The term control used might suggest a one-way viewpoint. It does not mention any means of channels or communication you might use to obtain Encouraging purposefull dialogue. The aspects of measurability and evaluation of IMC programmes are not explicitly mentioned.

4. Definition by Nowak and Phelps (1994)

Not a straightforward definition. dwell on the basic notions of the concept and fail to transcend deeper. They found three conceptualisations: One-voice marketing communications Consists in providing a consistent image, position, message and/or theme across all comunication disciplines. Integrated marketing communications (advertisements) Includes both a brand image and a behavioral response Coordinated marketing communication Strives to achieve synergy through the coordination of all marketing activities that both develops awareness and build brand image as well as evokes a behavioral response.

5. Definition by Don Schultz and Heidi Schultz (1998)

Based on past studies and as well as experiences from different Organisations that have embraced the IMC approach: IMC is a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences. According to the creaters it focuses more on the business process. Includes all of the concepts we have touched upon so far. Also includes concepts like business process, evaluation, and measurability.

Defining IMC
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value.

Contemporary Perspective of IMC

Recognized as a business process

IMC

Importance of relevant audience Multiple relevant audiences Demand for accountability and Demand for accountability measurement of outcomes

Rapidly Changing Media Environment Increasingly difficult to target audiences & communicate effectively
Consumers no longer passive recipients They demand more than information From a myriad of sources

Integrated Marketing Approach Traditional mass media

Television, radio, magazines, newspapers, billboards Now drive consumers to Web sites

Online strategies
Provide detailed information Be experiential, entertaining, interactive MySpace, YouTube, Facebook, wireless mobile media devices, e-mail

The New Look of Advertising

Interactive, Informative, Entertaining

Growth of Advertising and Promotion

Expenditure in Billions of Dollars

Advertising Outside U.S. 2007 1980 U.S. Advertising

$0

$50

$100

$150

$200

$250

$300

$350

$400

The Scion Web Site

Consumers can now customize the car they want to purchase

Coordinated Marketing Elements Build Image

Traditional Marketing Approach

Special events Sales promotion

Point of purchase

Interactive marketing

Public relations
Direct marketing

Media Advertising
Publicity

Packaging

Direct response

Contemporary IMC Approach

Packaging Sales promotion

Direct response

Point of purchase

Publicity

Media Advertising

Public relations

Interactive marketing

Direct marketing

Special events

Test Your Knowledge

Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? A) The mass market has become fragmented. B) New technologies have given consumers greater control over the communication process. C) Use of the Internet and electronic commerce is growing.

D) New global markets are emerging.

E) All of the above.

Growing Importance of IMC Strategic integration of communications functions

Avoids duplication Synergy among promotional tools More efficient and effective marketing

Rapidly changing environment

Consumers Technology Media

Behind the Growing Importance of IMC

From
Media advertising Mass media Manufacturer dominance General focus Low agency accountability Traditional compensation Limited Internet availability

Toward
Multiple forms of communication Specialized media Retailer dominance Data-based marketing Greater agency accountability
Performance-based compensation

Widespread Internet availability

The Role of IMC in Branding Brand identity is a combination of

Name Logo Symbols Design Packaging Performance Image or associations

IMC plays a major role in developing and sustaining brand identity and equity

The Most Valuable Brands in the World

Brand Value (Billions) $65.32 58.71 57.09 51.57 33.70 32.07 30.95 29.39

Rank 1 2 3 4 5 6 7 8

Brand Coca-Cola Microsoft IBM General Electric Nokia Toyota Intel McDonalds

9
10

Disney
Mercedes-Benz

29.21
23.57

Finding New Ways to Build Brands Consumers are driving the trend
They view brands as a form of self-expression They know more about brands and the companies that make them Cynicism about corporations is at an all-time high They seek and share information with other consumers via the Internet

Finding New Ways to Build Brands Get consumers involved

Apple Computer lets consumers test products in store Starbucks positions stores as a community gathering place

Interaction can be the best marketing

MySpace Facebook Google

The Promotional Mix

Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

Publicity/Public Relations
Personal Selling

Advertising Paid forms of non-personal communication

About an organization, product, service, or idea by an identified sponsor No feedback from audience Important for products and services aimed at mass consumer markets Cost effective

The Most Common Forms of Advertising

National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising

Consumers

Business-to-Business Advertising Professional Advertising Trade Advertising

Organizations

Direct Marketing
Direct Mail Internet Sales Direct Response Advertising

Direct Marketing
Shopping Channels Catalogs Telemarketing

Bose Uses Direct Response Advertising

Includes call for action. Phone number, mail-in form, website address provided.

Interactive/Internet Marketing Back-and-forth communication

Users participate in and modify the form and content of information Happens in real time

Interactive media
Internet CD-ROMs Kiosks Interactive television Digital cell phones

Sales Promotion

*Click outside of the video screen to advance to the next slide

Using the Internet as an IMC Tool

The Internet

Educates or informs customers

A persuasive advertising medium

A sales tool or an actual sales vehicle

Obtains customer database information

Communicates and interacts with buyers

Provides customer service and support

Builds and maintains customer relationships

Sales Promotion
Coupons

Samples
Premiums Contest/Sweepstake Refunds/Rebates Bonus Packs Loyalty Programs Events

Trade Allowances
POP Displays Training Programs

Trade Shows
Coop Advertising

Consumer-oriented
[For end-users]

Trade-oriented
[For resellers]

Sales Promotion

Most of the promotional budget now goes to sales promotion

Declining brand loyalty Increased consumer sensitivity to deals Larger and more powerful retailers are demanding more trade promotion support

Test Your Knowledge

_____ is nonpersonal communication, neither directly paid for nor run under, identified sponsorship. A) Advertising

B)
C)

Sales promotion
Publicity

D)
E)

Public relations
Personal selling

Advertising Versus Publicity

Factor Control Credibility Reach Advertising Great Lower Measurable Schedulable Publicity Little Higher Undetermined

Frequency
Cost Flexibility Timing

Uncontrollable
Low/Unspecified

High/Specific
High Specifiable

Low Tentative

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences

Special Events

Public Relations

Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received.

Public Relations Tools

Cause-related Marketing

Publicity Vehicles
Community Activities Public Affairs Activities

Special Publications
Corporate Advertising Special Event Sponsorship

Personal Selling

Person-to-person communication
A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea

IMC Audience Contact Tools

Broadcast media Print media Public Relations/ publicity Internet/ interactive

Out-of-home media

Direct marketing

Target Audience
Personal selling Sales Promotion

Point-ofpurchase

Word-ofmouth

Events and sponsorship

Product placements

Test Your Knowledge

The _____ is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand. A) promotional plan B) marketing plan C) communications plan

D) marketing audit
E) situation analysis

The IMC Planning Process Developing an integrated marketing communications plan requires
Planning

Executing
Evaluating Controlling

Basic Elements of a 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

Model of the IMC Planning Process

Review of marketing plan Analysis of Promotional program situation Analysis of communications process Budget determination Develop integrated marketing communications program

Advertising

Sales promotion

PR/ publicity

Personal selling

Direct marketing

Internet/ interactive

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program