Integrated Marketing Communication (IMC)

Marketing
The task of Identifying Consumer Needs and fulfilling

them. This may include activities like Marketing Research, New Product Development, Distribution Management, Pricing, Analysis of Competition, Promotion etc.
The Marketing Mix
Product Price Place Promotion

 Product
Conception and planning of actual product Product quality, design, features, size, varieties,

warranty etc
Price
Setting the price of a product Retail/Wholesale price, discounts, Margins etc

Place
Getting the product to the final consumer Distribution channel, market coverage, location,

transportation etc
Promotion
Informing consumers about organizations offerings,

persuading them to buy it and reminding them about it from time to time. Advertising, sales promotion, direct marketing, personal selling

Communication

Imparting, sharing or exchanging of Information, thoughts, ideas, views etc between two or more people.

Communication Process
Message
Sender Encoding Channel Receiver Decoding

Barriers
Feedback Response

Marketing Communication
It

involves all the activities concerned with effectively communicating product information to the consumers and persuading them to buy it. The prime purpose of marketing communication is to seek a cognitive, affective or behavioral response of the consumer

Communication Response Hierarchy

Stages AIDA Model Hierarchy of effects Model Innovation Adoption Model Information Processing Model

Cognitive Stage Affective Stage Behavioral Stage

Attention

Awareness Knowledge Liking Preference Conviction Purchase

Awareness

Presentation Attention Comprehension Yielding Retention Behavior

Interest Desire Action

Interest Evaluation Trial Adoption

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity

 Advertising
Any paid form of non personal communication

about an organization, product, service or idea by an identified sponsor. -- Non-Personal indicates the Mass Media -- Paid form emphasizes that advertisement time or space must be purchased. -- Communication indicates the Message and its Presentation -- Identified Sponsor refers to the advertiser who is communicating.

 Objectives of Advertisement
Inform Persuade Remind

Reinforce

 Classification of Advertisements
Brand Building Advertisements Direct Response Advertisements National/Regional Advertisements Retail Advertisements Public Service Advertisements B2B Advertisements

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity

 Sales Promotion
Marketing activity that provide extra value or incentive to the

sales force, distributor or the ultimate consumer and can stimulate immediate sales. -- Consumer Oriented Sales Promotion Directed to the end user of a product (e.g. discounts, coupons, samples, contests, Point of Purchase material etc.) -- Trade Oriented Sales Promotion Directed to resellers like distributors, whole sellers, retailers etc to motive them to provide special support for the organizations products and market it. (Allowances, trade shows, sales contests etc)

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing

Relation Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity/Public

 Publicity and Public Relations

Publicity: Refers to non personal communication

regarding an organization/product not directly paid for or run under identified sponsorship. E.g. News Releases, Media Coverage, Word-ofMouth, Press Conferences
Public Relations: The management function which

evaluates public attitudes, identifies the policies and procedures of an organization with public interest and executes a program of action to earn public understanding and acceptance. E.g. Participation in community activities, fund raising, sponsorship of special events etc.

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity

 Personal Selling
It is a form of person-to-person communication in

which a seller attempts to assist and/or persuade the prospective buyers to purchase the companys products or service. More prominent one-to-one contact is there as compared to direct selling Possibility of Moulding the message based upon the consumers reaction/response.

E.g. Face-to-face meeting, Telephonic conversations, personal online chat.

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity

 Direct Marketing
The marketer and the prospect interact directly, without

the presence of any intermediary like wholesaler, retailer etc.

Use of database is an important aspect of Direct

Marketing. There is no prominent one-to-one interaction like personal selling. Direct Response Advertising is one of the major tools of Direct Marketing. E.g. E-mail, catalogues, Home Shop 18, Star CJ Alive etc.

Marketing Communication Mix/ Promotional Mix

Advertising
Direct Marketing Sales Promotion

Personal Selling
Interactive/Internet

Marketing
Publicity

 Internet/Interactive Marketing
Using network synergy for effective marketing.

E.g. Websites, Social Networking sites, Viral ads etc

Integrated Marketing Communication

A concept of marketing communication planning that

recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication discipline, for e.g. advertising, direct selling, sales promotion etc, and combines these disciplines to provide clarity, consistency and maximum communication impact. An IMC approach seeks to have all of a companys marketing and communication activities , project a consistent, unified image to the marketplace. It calls for a centralized messaging function so that everything a company says and does communicate a common theme and positioning.

Factors contributing to IMC

Shift of marketing budget from media advertising

to other forms of promotion, particularly consumer and trade oriented sales promotion.
A movement away from relying on advertising

focused approaches, which emphasize mass media such as national TV, Magazines etc, to solve communication problem
A shift in marketplace power from manufacturer to

retailer

Factors contributing to IMC

The rapid growth and development of Database

marketing.
Demand for greater accountability from marketing

agencies and changes in the way agencies are compensated.

The rapid growth of Internet and other technological

advancements have changed the very nature of how companies do business and the way they communicate and Interact with the consumers.

IMC Planning Process

Review of Marketing Plan Situational Analysis of Promotional Program Analysis of Communication Process Budget Determination Developing IMC Program
Advertising Direct Marketing Personal Selling Sales Promo Publicity/ PR Internet Mkt

Objectives, Message, Media Strategy

Integration & Implementation

Monitoring and Evaluation

Review of Marketing Plan

Situational Analysis
The Industry Situation: Industry Practices, User

base, Growth Rate etc The Product Situation: Product strength & Weakness, sales and profit margins etc The competitive Situation: Major competitors, their strength and Weakness etc The Socio-cultural Situation: Taste & Preferences, cultural norms etc. The distribution Situation: Channels of distribution, Modes of transportation etc. The Promotion Situation: Current campaigns, their objectives, media, Budget etc. Other factors: Economic, Political, Legal, Technological

 Marketing Objectives
What company wants to achieve from its Marketing

Plans
Marketing Strategies
Determining the various ways and options for

achieving marketing objectives and selecting the right line of action.

Implementation Strategies
Implementing what has been planned

Situational Analysis of Promotional Programs

Internal Factors:
Assessment of firms promotional capabilities. Assessment of firms previous promotional programs

and its results. Assessment of firms brand image and implication for promotion. Assessment of relative strengths and weaknesses of the products
External Factors
Customer Analysis Competitive Analysis: Promotional Strategies of

Competitors Environmental Analysis: Current trends or developments related to advertising

Analysis of Communication Process

Analyze receivers response process
Analyze source, message and channel factors Establish communication goals

Integrate & Implement

Integrate Promotional mix strategies Creation and Production of advertisements Purchase of Media Time, Space Designing and Implementation of direct

marketing program Designing and Distribution sales promotion material Designing and Implementation of PR/ Public relations program Designing and Implementation of Internet marketing programs.

Evaluation and Control

Evaluation of Promotional Program

Results/Effectiveness Taking measures to control and adjust promotional strategies

Participants of IMC

Advertiser (Client)

Advertising Agency

Media

Specialized Marketing Communication Services

Collateral Service Providers

Participants of IMC

Advertiser (Client)

Advertising Agency

Media

Specialized Marketing Communication Services

Collateral Service Providers

 Advertiser
They have the products or service to be

marketed Provide funds for advertising and promotion Develop marketing program Final decision maker of advertising and promotional programs to be used.

Participants of IMC

Advertiser (Client)

Advertising Agency

Media

Specialized Marketing Communication Services

Collateral Service Providers

 Advertising Agency
An outside firm that specializes in the creation,

production and placement of communication message and that may provide other services to the marketing and promotions process. Functions of Advertising Agencies Client Servicing
Involves understanding the clients business in totality,

understanding their marketing strategy and convert it into an effective advertising program. This is done through working with clients on one side and creative and media teams of the agency on the other.

 Creative Work Ensuring creative output in form of a print advertisement, television commercial, radio jingle etc. Copywriters, art persons play a key role into this. Media Planning and Buying Deciding on which form of Media is to be used for advertising. Buying of space, time etc for advertisement placements.

Participants of IMC

Advertiser (Client)

Advertising Agency

Media

Specialized Marketing Communication Services

Collateral Service Providers

 Media
The media represents the channel through

which the advertisement is carried E.g: Print, TV, Radio, Outdoor etc. These media must have the content that attracts audience so that the advertisers and the agencies would want to buy time and space with them.

Participants of IMC

Advertiser (Client)

Advertisin g Agency

Media

Specialized Marketing Communication Services

Collateral Service Providers

 Specialized Marketing Communication

Services
Direct Response Agencies Rapp Collins (Part of Mudra Group) Lintas Personal Saatchi & Saatchi Direct Sales Promotion Agencies Kidstuff Public Relation Agencies Good relations India Pvt. Ltd. Hammer & Partner Ogilvy Rediffusion PR Interactive Agencies Tribal DDB+Mudra Communication

Participants of IMC

Advertiser (Client)

Advertising Agency

Media

Specialized Marketing Communication Services

Collateral Service Providers

 Collateral Services
Collateral services are the wide range of support

functions used by Advertisers, advertisement agencies etc. E.g: Photographers, Image Banks, Model Coordinators, Marketing research firms etc

Regulatory Bodies
ASCI
(Advertising Standards Council of India) Goal: To maintain and enhance the publics confidence in Advertising ASCI seeks to ensure that advertisements conform to their code of self regulation which requires advertisements to be: Truthful and fair to consumers and competitors Within the bounds of generally accepted standards of public decency Non Promotion of products hazardous to the society at large.

Unconventional/Support Promotional Media

Sponsorships Merchandising

Outdoor Media Yellow Pages Promotional Products

Product Placements

 Sponsorships
When a company pays money to get promotional

mileage through any event, it is called Sponsorship.

Cultural/Entertainment Events: Award Functions, Fashion

Weeks etc Sports Events: Olympic, Asian Games, Cricket etc Cause Based Events: This normally refers to activities that are undertaken to promote cause such as that relating to Environment, Health, Security etc.

 Merchandising
Refers to that promotional activity which involves

the proper placement and promotion of the product at the point of purchase. The main job of merchandising is to ensure that the companys stocks are well placed in the retail shelves and are visible clearly to the consumer.
POP Material (Point of Purchase Material): Includes

promotional material that a company uses to promote its products at the point of sale. E.g: Product Banners, Posters, Display Stands etc. Gifts

 Out of Home/Outdoor Media

Static: Hoardings, Bus Shelters, Railway Stations,

Airports, Neon Signs etc Transit Media: Buses,Trucks, Trains, Cars, Taxis, Airplanes etc. Advantages:
Selectivity of Location

Cost Effectiveness (as Compared to Mass Media) Scope for Creativity

Disadvantages:
Waste Coverage: it is not likely that everyone passing by a

billboard is a part of Target Market. Limited Message Capabilities Measurement of Effectiveness Wear out

 Promotional Products Marketing

The products that are distributed free, wherein recipients

dont have to earn it by making some product purchase. E.g: Ball Pens, T-Shirts, Coffee Mugs, Calendars, Key Rings etc

Advantages:
Selectivity Flexibility Frequency (Repetitive Exposure) Goodwill

Disadvantages:
Company Image (if proper selection of promotional material is not made) Saturation Lead Time

 Yellow Pages
Yellow Pages includes: Specialized Directories General Directories Audiotex Internet Directories

Advantages:
Wide Availability Action Orientation Costs Frequency

Disadvantages: Localized Media Wear out Limited Creativity Long Publishing Period

 Product Placements
Showing the use of Products in Movies, TV Serials,

Music Videos etc. Advantages:

Exposure

Frequency
Source Association Recall

Disadvantages
Time of Exposure Lack of Control Public Reaction