An Introduction to Integrated Marketing Communications (IMC)
An Introduction to Integrated Marketing Communications (IMC)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Chapter plan
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. What is IMC?
2. Reasons for the growing importance of IMC
3. IMC and branding
4. The promotional mix: The tools of IMC
4. IMC planning process
1. What is IMC?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coordinating the various
promotional elements to
effectively communicate with
target audiences
Point ofpurchase
Publicity
Publicrelations
Directmarketing
Interactivemarketing
Specialevents
Packaging
Salespromotion
Directresponse
Traditional Approach to Marketing Communications
MediaAdver-tising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach
Point ofpurchase
Publicity
Interactivemarketing
Publicrelations
Directmarketing
Specialevents
PackagingSales
promotionDirect
response
MediaAdver-tising
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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
2. Reasons for the Growing Importance of IMC
From Toward
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3. 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.
2005 Brand Value(Billions of Dollars)
1. Coca-Cola$67.52
2. Microsoft$59.94
3. IBM$53.38
4. GE $46.995. Intel
$35.596. Nokia
$26.457. Disney
$26.448. McDonald’s
$26.019. Marlboro
$24.8410. Mercedes
$21.19
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.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
4.6. Personal Selling4.6. Personal Selling
4.1. Advertising4.1. Advertising
4.2. Direct Marketing4.2. Direct Marketing
4.3. Internet Marketing4.3. Internet Marketing
4.4. Sales Promotion4.4. Sales Promotion
4.5. Public Relations4.5. Public Relations
4. The promotional mix: The tools of IMC
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cost effectiveCost effective
PaidPaid
Non-personalNon-personal
4.1. Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
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DirectResponse
Advertising
DirectResponse
Advertising
DirectResponse
Advertising
DirectResponse
Advertising
DirectMail
DirectMail
CatalogsCatalogs
TelemarketingTelemarketing
InternetSales
InternetSales
ShoppingChannelsShoppingChannels
DirectMail
DirectMail
TelemarketingTelemarketing
CatalogsCatalogs
ShoppingChannelsShoppingChannels
4.2. Direct Marketing
DirectMarketing
DirectMarketing
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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
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
4.3. Internet marketing
TheInternet
TheInternet
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• Consumer-oriented
• [For end-users]
• Trade-oriented
• [For resellers]
4.4. 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
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Corporate AdvertisingCorporate
Advertising Cause-related
MarketingCause-related
Marketing
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Special EventSponsorship
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
4.5. Public Relations Tools
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InterviewsInterviewsInterviews Interviews
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
PressConferences
PressConferences
NewsReleases
NewsReleases
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
NewsReleases
NewsReleases
Publicity Vehicles
PublicityVehiclesPublicityVehicles
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Face-to-face communicationFace-to-face communication
Mostly used for business customersMostly used for business customers
4.6. Personal selling
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5. IMC 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin