IMC

Information Processing Information Processing Model of CommunicationModel of Communication Exposure: A Person must see or hear the Exposure: A Person must see or hear the

communicationcommunication Attention : A Person must notice the communicationAttention : A Person must notice the communication Comprehension : A person must understand the Comprehension : A person must understand the

intended message or arguments of the communicationintended message or arguments of the communication Yielding: A Person must respond favorably to the Yielding: A Person must respond favorably to the

intended message or arguments of the communicationintended message or arguments of the communication Intension; A person must plan to act in the desired Intension; A person must plan to act in the desired

manner of communicationmanner of communication Behavior: A person must actually act in the desired Behavior: A person must actually act in the desired

manner of the communicationmanner of the communication

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Personal SellingPersonal Selling

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Basic Elements of the Promotional Mix

Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

MediaAdver-tising

IMC Audience Contact Tools

Target AudienceTarget Audience

Broadcast media

(TV/radio)

Broadcast media

(TV/radio)

Print media (newspapers,

magazines)

Print media (newspapers,

magazines)

Public Relations/publicity

Public Relations/publicity

Internet/interactiveInternet/

interactive

Directmarketing

Directmarketing

Sales Promotion

Sales Promotion

Product placements

(TV and movies)

Product placements

(TV and movies)

Events and sponsorshipEvents and sponsorship

Word-of-mouth

Word-of-mouth

Point-of-purchase (displays,

packaging)

Point-of-purchase (displays,

packaging)

Personal selling

Personal selling

Out-of-home media

Out-of-home media

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.

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.

The goal of IMC is to generate short-term financial returns and build long-term brand value.

Integrated Marketing Integrated Marketing CommunicationsCommunications

A marketing communications planning A marketing communications planning concept.concept.

Recognizes the value of a comprehensive plan.Recognizes the value of a comprehensive plan. A plan that evaluates the strategic roles of A plan that evaluates the strategic roles of

several communications disciplines:several communications disciplines: General advertisingGeneral advertising Direct responseDirect response Sales promotionSales promotion Public relationsPublic relations

Combines the disciplines to provide:Combines the disciplines to provide: ClarityClarity ConsistencyConsistency Maximum communications impactMaximum communications impact

Demand for accountabilityDemand for accountabilityDemand for accountability and Measurement of Outcomes

Demand for accountability and Measurement of Outcomes

Recognized as a business processRecognized as a business process

Importance of relevant audienceImportance of relevant audience

Recognized as a business processRecognized as a business process

Multiple relevant audiencesMultiple relevant audiences

A Contemporary Perspective of IMC

IMCIMC

Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Data-based marketingData-based marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

Limited Internet availabilityLimited Internet availability Widespread Internet availabilityWidespread Internet availability

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Data-based marketingData-based marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

Reasons for the Growing Importance of IMC

From Toward

IMC and Branding

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

IMC plays a major role in the process of developing and sustaining brand identity and equity.

IMC plays a major role in the process of developing and sustaining brand identity and equity.

Overview of Marketing Overview of Marketing Communication OptionCommunication Option

Media Media AdvertisingAdvertisingTVTVRadioRadioNewspaperNewspaperMagazineMagazine

Direct Response AdvertisingDirect Response AdvertisingMailMailTelephoneTelephoneBroadcast mediaBroadcast mediaPrint mediaPrint mediaComputer relatedComputer relatedMedia RelatedMedia Related

Online AdvertisingOnline AdvertisingWeb sitesWeb sitesInteractive ads Interactive ads

Place AdvertisingPlace AdvertisingBillboardsBillboardsMovies, Airlines, and LoungesMovies, Airlines, and LoungesProduct PlacementProduct Placement

Point-of-purchase AdvertisingPoint-of-purchase Advertisingshelf Talkersshelf TalkersAisle MarkersAisle MarkersShopping cart adsShopping cart adsIn-store radio or TVIn-store radio or TV

Trade Trade PromotionPromotionTrade deals and buying allowancesTrade deals and buying allowancesPOP display allowancesPOP display allowancesPush moneyPush moneyContests and dealer incentivesContests and dealer incentivesTraining ProgramTraining ProgramTrade showsTrade showsCo-operative advertisingCo-operative advertising

•Consumer promotionConsumer promotionSamplesSamplesCoupons Coupons PremiumsPremiumsRefunds and rebatesRefunds and rebates

contests and sweepstakescontests and sweepstakesBonus packBonus packPrice- offPrice- off

•Event marketing and Event marketing and sponsorshipsponsorshipSportsSportsArtsArtsEntertainmentEntertainmentFairs and festivalsFairs and festivalsCause-relatedCause-related

•Publicity and public relationPublicity and public relationBuzz MarketingBuzz Marketing•Personal sellingPersonal selling

Test Your Knowledge

Why are marketers decreasing their usage of advertising in mass media to reach their target market and increasing their use of integrated marketing communications?

A) The mass market has become fragmented.

B) The explosion of new technologies has given consumers greater control over the communication process.

C) The use of the Internet and electronic commerce is growing.

D) New global markets are emerging. E) All of the above explain the increasing

reliance on integrated marketing communications.

The Growth of Advertising and Promotion

Expenditure in Billions of Dollars

$0 $50 $100 $150 $200 $250 $300 $350

U.S. Advertising

U.S. SalesPromotion

AdvertisingOutside U.S.

2004

1980

Primary vs. Selective Demand Advertising

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Primary vs. Selective Demand Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Organizations

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Professional AdvertisingProfessional Advertising

Trade AdvertisingTrade Advertising

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Professional AdvertisingProfessional Advertising

Classifications of Advertising

Consumers

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

DirectMail

CatalogsCatalogs

TelemarketingTelemarketing

InternetSales

InternetSales

ShoppingChannelsShoppingChannels

DirectMail

DirectMail

TelemarketingTelemarketing

CatalogsCatalogs

ShoppingChannelsShoppingChannels

Direct Marketing is Part of IMC

DirectMarketing

DirectMarketing

Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Sales Promotion

• Trade-oriented– Targeted toward marketing

intermediaries such as retailers, wholesalers, or distributors

• Promotion allowances• Merchandise allowances• Price deals• Sales contests• Trade shows

• Customer-oriented– Targeted to the ultimate

users of a product or service

• Coupons• Sampling• Premiums• Rebates• Contests• Sweepstakes• POP materials

• Consumer-oriented

• [For end-users]

• Trade-oriented

• [For resellers]

Sales Promotion Tools

EventsEvents

Loyalty ProgramsLoyalty Programs

Bonus Packs Bonus Packs

Refunds/Rebates Refunds/Rebates

Contests/SweepstakesContests/Sweepstakes

PremiumsPremiums

SamplesSamples

CouponsCoupons

CoopAdvertising

CoopAdvertising

TradeShowsTradeShows

TrainingProgramsTraining

Programs

POP DisplaysPOP Displays

TradeAllowances

Introduce new products

Introduce new products

Get existing customers to buy

more

Get existing customers to buy

more

Attract new customers

Attract new customers

Maintain sales in off season

Maintain sales in off season

Increase retail inventories

Increase retail inventories

Tie in advertising & personal

selling

Tie in advertising & personal

selling

Enhance personal selling

Enhance personal selling

Combat competition

Combat competition

Introduce new products

Introduce new products

Get existing customers to buy

more

Get existing customers to buy

more

Attract new customers

Attract new customers

Maintain sales in off season

Maintain sales in off season

Increase retail inventories

Increase retail inventories

Tie in advertising & personal

selling

Tie in advertising & personal

selling

Enhance personal selling

Enhance personal selling

Various Uses of Sales Promotion

SalesPromotion

SalesPromotion

Test Your Knowledge

_____ is nonpersonal communication neither directly paid for nor run under identified sponsorship.

A) Advertising B) Sales promotion C) Publicity D) Public relations E) Personal selling

Advertising Versus Advertising Versus PublicityPublicity

AdvertisingAdvertising Paid, sponsor-identified, Paid, sponsor-identified,

nonpersonal (media) nonpersonal (media) communications.communications.

PublicityPublicity Non-paid, unsponsored, Non-paid, unsponsored,

nonpersonal (media) nonpersonal (media) communications.communications.

Advertising Versus Publicity

AdvertisingAdvertising PublicityPublicity

TentativeTentative

LowLow

Low/Unspecified Low/Unspecified

Uncontrollable Uncontrollable

GreatGreat

LowerLower

Measurable Measurable

SchedulableSchedulable

High/Specific High/Specific

HighHigh

SpecifiableSpecifiable

UndeterminedUndetermined

HigherHigher

LittleLittle

FactorFactor

ControlControl

CredibilityCredibility

ReachReach

FrequencyFrequency

CostCost

FlexibilityFlexibility

TimingTiming

InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

PressConferences

NewsReleases

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

NewsReleases

Publicity Vehicles

PublicityVehiclesPublicityVehicles

Publicity VehiclesPublicity Vehicles News Releases:News Releases:

Single-page news stories sent to media who Single-page news stories sent to media who might print or broadcast the content.might print or broadcast the content.

Feature Articles:Feature Articles: Larger manuscripts composed and edited for Larger manuscripts composed and edited for

a particular medium.a particular medium.

Captioned Photos:Captioned Photos: Photographs with content identified and Photographs with content identified and

explained below the picture.explained below the picture.

Press Conferences:Press Conferences: Meetings and presentations to invited Meetings and presentations to invited

reporters and editors.reporters and editors.

Special Events:Special Events: Sponsorship of events, teams, or programs of Sponsorship of events, teams, or programs of

public value.public value.

Public RelationsPublic Relations

Tools used by Public RelationsTools used by Public Relations PublicityPublicity Special publicationsSpecial publications Community activity participationCommunity activity participation Fund-raisingFund-raising Special event sponsorshipSpecial event sponsorship Public affairs activitiesPublic affairs activities

The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Public Relations Tools

Builds and maintains customer

relationships

Builds and maintains customer

relationships

Obtains customer database

information

Obtains customer database

information

Communicates and interacts with buyers

Communicates and interacts with buyers

Provides customer

service and support

Provides customer

service and support

Educates or informs

customers

Educates or informs

customers

A persuasive advertising

medium

A persuasive advertising

medium

A sales tool or an actual sales vehicle

A sales tool or an actual sales vehicle

Obtains customer database

information

Obtains customer database

information

Provides customer

service and support

Provides customer

service and support

Educates or informs

customers

Educates or informs

customers

A persuasive advertising

medium

A persuasive advertising

medium

A sales tool or an actual sales vehicle

A sales tool or an actual sales vehicle

Using the Internet as an IMC Tool

TheInternet

TheInternet

Integrated Marketing Communications Planning Model

Promotional program situation analysis

Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Review of marketing plan

AdvertisingSales

promotionPR/

publicityPersonalselling

Directmarketing

Advertisingobjectives

Salespromotionobjectives

PR/publicity

objectives

Personalselling

objectives

Directmarketingobjectives

Messagestrategy

Salespromotionstrategy

PR/publicitystrategy

Personalselling

strategy

Directmarketingstrategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Internet/interactive

Internet/interactiveobjectives

Internet/interactivestrategy

Television (Advantages)Television (Advantages)

Mass coverageMass coverage High reachHigh reach Impact of sight, sound, and motionImpact of sight, sound, and motion High prestigeHigh prestige Low cost per exposureLow cost per exposure Attention gettingAttention getting Favorable imageFavorable image

TV (Disadvantages)TV (Disadvantages)

Low selectivityLow selectivity Short message lifeShort message life High absolute costHigh absolute cost High production costsHigh production costs ClutterClutter

Radio (Advantages)Radio (Advantages)

Local coverageLocal coverage Low costLow cost High frequencyHigh frequency FlexibleFlexible Low production costsLow production costs Well-segmented audiencesWell-segmented audiences

Radio (Disadvantages)Radio (Disadvantages)

Audio onlyAudio only ClutterClutter Low attention-getting capabilitiesLow attention-getting capabilities Fleeting messageFleeting message

Magazines (Advantages)Magazines (Advantages)

Segmentation potentialSegmentation potential Quality reproductionQuality reproduction High information contentHigh information content LongevityLongevity Multiple readersMultiple readers

Magazines Magazines (Disadvantages)(Disadvantages)

Long lead time for ad placementLong lead time for ad placement Visual onlyVisual only Lack of flexibilityLack of flexibility

Newspapers Newspapers (Advantages)(Advantages)

High coverageHigh coverage Low costLow cost Short lead time for placing adsShort lead time for placing ads Ads can be placed in interest Ads can be placed in interest

sectionssections Timely (current ads)Timely (current ads) Reader control exposureReader control exposure Can be used for cuponsCan be used for cupons

Newspapers Newspapers (Disadvantages)(Disadvantages)

Short lifeShort life ClutterClutter Low attention-getting capabilitiesLow attention-getting capabilities Poor reproduction qualityPoor reproduction quality Selective reader exposureSelective reader exposure

Direct response Direct response (Advantages)(Advantages)

High selectivityHigh selectivity Reader controls exposureReader controls exposure High information contentHigh information content Opportunities for repeat exposuresOpportunities for repeat exposures

Direct response Direct response (Disadvantages)(Disadvantages)

High cost per contactHigh cost per contact Poor image (junk mail)Poor image (junk mail) ClutterClutter

Interactive (Advantages)Interactive (Advantages)

Customized and personalizedCustomized and personalized In-depth informationIn-depth information Can be engagingCan be engaging

Interactive Interactive (Disadvantages)(Disadvantages)

NonobtrusiveNonobtrusive Often lacks emotionalityOften lacks emotionality

Outdoor (Advantages)Outdoor (Advantages)

Location specificLocation specific High repetitionHigh repetition Easily noticedEasily noticed

Outdoor (Disadvantages)Outdoor (Disadvantages)

Short exposure time requires short Short exposure time requires short adad

Poor imagePoor image Local restrictionsLocal restrictions