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Integrated Marketing

Communications
CHAPTER 1, KENNETH E. CLOW AND DONALD BA ACK

MS. ADIBA ANIS, LECTURER, SCHOOL OF BUSINESS, BANGLADESH OPEN


UNIVERSITY

Chapter Overview
1. Communication and IMC Programs
2. An Integrated Marketing
Communications
3. An Integrated Marketing
Communications Plan
4. IMC Components
1.
2.
3.
4.
5.

The Foundation
Advertising Tools
Promotional Tools
Integration Tools
Refining the IMC Program

MS. ADIBA ANIS, LECTURER, SCHOOL OF BUSINESS, BANGLADESH OPEN UNIVERSITY

5. The Value of IMC Plans


1.
2.
3.
4.
5.
6.

Information Technology
Changes In Channel Power
Increases in Competition
Brand Parity
Integration of Information
Decline in the Effectiveness of Mass-Media
Advertising

6. Globally Integrated Marketing


Communications

Communication & IMC 1.1


Communication can be defined as transmitting, receiving, and processing
information.
When a person, group, or organization attempts to transfer an idea or message, communication
occurs when the receiver (another person or group) is able to comprehend the information. The
model of communication shown in Figure 1.2 shows how communication takes place as the
message that was sent reaches its destination in a form that is understood by the intended
audience. The communication process is part of any advertising or marketing program.

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Communication & IMC 1.2

An effective integrated marketing communications


program integrates numerous marketing activities into
a single package in order to effectively reach target
markets and other audiences.

MS. ADIBA ANIS, LECTURER, SCHOOL OF BUSINESS, BANGLADESH OPEN UNIVERSITY

An Integrated Marketing
Communications 1.1

Integrated marketing communications (IMC) is the


coordination and integration of all marketing communication
tools, avenues, and sources within a company into a seamless
program that maximizes the impact on consumers and other
end users at a minimal cost. This integration affects all of a
firms business-to-business, marketing channel, customerfocused, and internally directed communications.

MS. ADIBA ANIS, LECTURER, SCHOOL OF BUSINESS, BANGLADESH OPEN UNIVERSITY

An Integrated Marketing
Communications 1.2

MS. ADIBA ANIS, LECTURER, SCHOOL OF BUSINESS, BANGLADESH OPEN UNIVERSITY

An Integrated Marketing Communications Plan


Integrated marketing is based on a strategic marketing plan. The plan coordinates efforts in
all components of the marketing mix. The purpose is to achieve harmony in the messages
sent to customers and others. The same plan integrates all promotional efforts to keep the
companys total communications program in sync. Figure 1.5 lists the steps required to
complete a marketing plan. The first step is a situational analysis, which is the process of
examining factors from the organizations internal and external environments. The analysis
identifies marketing problems and opportunities present in the external environment as
well as internal company strengths and weaknesses.
When the situation is fully understood, the second step is to define primary marketing
objectives. These objectives include targets such as higher sales, an increase in market
share, a new competitive position, or desired customer actions, such as visiting the store
and making purchases.
Based on the marketing objectives, a marketing budget is prepared and marketing
strategies are finalized. Marketing strategies apply to all the ingredients of the marketing
mix, plus any positioning, differentiation, or branding strategies. From these strategies,
marketing tactics guide the day-by-day activities necessary to support marketing
strategies. The final step in the marketing plan is stating how to evaluate performance.
MS. ADIBA ANIS, LECTURER, SCHOOL OF BUSINESS, BANGLADESH OPEN UNIVERSITY

The Marketing Plan

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IMC Plan

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IMC Plan (details)

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IMC Plan behind the screens

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IMC Plan customer view

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IMC Pan - Timeline

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IMC Components
1.
2.
3.
4.
5.

The Foundation
Advertising Tools
Promotional Tools
Integration Tools
Refining the IMC Program

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1. The foundation 1.1


the foundation of an IMC program consists of:
a careful review of the companys image,
the buyers to be served, and
the markets in which the buyers are located.
Advertising programs are built on this foundation, as are the
other elements of the promotional mix. Finally, the integration
tools located at the peak of the pyramid help the companys
marketing team make certain that the elements of the plan are
consistent and effective.
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1. The foundation 1.2

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2. Advertising Tools

Advertising management (Chapter 5) addresses the major functions of advertising, the


general direction the company takes, and the selection of an advertising agency. The
functions performed by an advertising agencys account manager as well as those
provided by the advertising creative are also described.
Several advertising theories are available to help the creative design advertisements.
The various advertising appeals that can be used, including those oriented toward
fear, humor, sex, music, and logic, are (Chapter 6).
The ingredients involved in creating effective message strategies (Chapter 7). The
messages are delivered via various executional frameworks, which are various ways to
construct the actual commercial or advertisement. Creatives and other advertising
professionals know that effective advertising includes the use of effective sources or
spokespersons and following well-established principles of success.
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Advertising tools-----

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2.2 IMC Media Tools


The course covers information regarding both traditional and new cuttingedge ideas about how to reach potential customers.
First, the traditional media channels, including television, radio, magazines, newspapers,
outdoor signs, and direct mail along with the advantages and disadvantages of each
medium (Chapter 8).
The roles provided by media planners and media buyers are also identified (Chapter 9).
Issues associated with the Internet, with a new term, e-active marketing, used to
summarize the various activities involved. E-active marketing integrates e-commerce
programs with more recent trends that have evolved with Internet usage. These include:
social networks and blogs, among the other activities that consumers pursue online.
Consumers play an active role in receiving and sending messages when the Internet is
utilized. Consequently, the channel deserves special attention from the marketing
department.

Many communication channels are available beyond both the traditional


networks and the Internet Alternative Marketing (Chapter 10). e.g. buzz
marketing, guerilla marketing, product placements and branded
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3. Promotional Tools

The next level of the IMC pyramid adds database and direct
response marketing programs, trade promotions, consumer
promotions, public relations efforts, and sponsorship
programs. When marketing managers carefully design all of
the steps taken up to this point, the firm is in a better position
to integrate these activities. Messages presented in the
advertising campaign can be reinforced with a variety of
communication promotions.
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4. Integration Tools

The top level of the IMC program includes the integration tools needed to make sure all
customers are effectively served (Chapter 14). There are many legal and regulatory
issues that are part of the advertising and promotions environment. Ethical systems go
beyond simply meeting the letter of the law.
It is also important to evaluate an integrated marketing program (Chapter 15).
Evaluations can begin prior to any promotional campaign and continue during the
campaign to post-campaign evaluations. These evaluations can provide valuable
information to alter campaigns before they are commercially introduced, as well as
providing input to modify programs that have already run.
A promotions evaluation process holds everything together; it drives the entire IMC
process. Fully integrated marketing requires a careful linkage between planning and
evaluation processes; one cannot occur without the other.
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5. Refining the IMC Program


IMC involves much more than writing a plan. It is also not limited to the companys
marketing department. IMC is a company-wide activity. To be successful, every part of
the organizations operation must be included. A study conducted by the American
Productivity & Quality Center of Houston indicates that four stages are involved in
designing an IMC system (see Figure 1.7).
The first stage is to identify, coordinate, and manage all forms of marketing
communication. The objective is to bring all of the companys communication
elements together under one umbrella. This includes advertising, promotions, direct
marketing, Internet and e-commerce programs, public relations, sponsorships, and
other marketing activities.

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The Value of IMC


Plans
1.
2.
3.
4.
5.
6.

Information Technology
Changes In Channel Power
Increases in Competition
Brand Parity
Integration of Information
Decline in the Effectiveness of Mass-Media Advertising

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1. Information Technology
Technology enables instant communications among business
executives, employees, channel members, and others around the world.
It also creates opportunities for marketing communications. For
example, in the past, predictions of consumer purchasing behaviors
were based on the results of test markets, attitudinal research, and
intention-to-buy surveys. Although these are excellent means of
obtaining information about consumers, they are slow, costly, and
potentially unreliable.

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2. Changes in Channel Power 1.1


A marketing channel consists of a producer or manufacturer vending goods to
wholesalers or middlemen, who in turn sell items to retailers, where the same items are
finally sold to consumers. Numerous technological developments have changed the
levels of power held by members of the channel. Oftentimes retailers hold the most
channel power, because they control shelf space and purchase data.
Retailers are able to determine what products and brands will be placed on store
shelves, and thus available to consumers. Through checkout scanners, retailers know
what products and brands are selling. Many retailers share the data with suppliers and
require them to ensure that store shelves remain well stocked.
The size and power of mega-retailers means manufacturers and suppliers have no
choice but to follow the dictates of these big box stores. At the same time, the
advancement of the World Wide Web and information technology has caused some
channel power to shift to consumers. Consumers can obtain information about goods
and services and purchase almost anything using the Internet.

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2. Changes in Channel Power 1.2

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3. Increases in Competition 1.1


Information technology and communication advances have dramatically changed the
marketplace in other ways. Consumers can purchase goods and services from anywhere in the
world. Competition no longer comes from the company just down the streetit can come from
a firm 10,000 miles away that can supply a product faster and cheaper.
Consumers want quality, but they also want a low price. The company that delivers on both
quality and price gets the business, regardless of its location. Advancements in delivery
systems make it possible for purchases to arrive almost anywhere in a matter of days. In this
competitive environment, it seems as if the only way one firm can gain sales is to take
customers away from another. Consequently, integrating advertising and other marketing
communications becomes extremely important. Advertising alone is not enough to maintain
sales. This situation is further complicated for manufacturers when retailers hold stronger
channel power and control the flow of merchandise to consumers.
In that circumstance, manufacturers invest in trade promotions (e.g., dealer incentives, slotting
allowances, discounts) to keep products in various retail outlets. Encouraging retailers to
promote a manufacturers brand or prominently display it for consumer viewing requires even
greater promotional dollars. Manufacturers also invest in consumer promotions (e.g., coupons,
contests, sweepstakes, bonus packs, and price-off deals) to keep customers. The goal is to keep
a brand attractive to the retailer.
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3. Increases in Competition 1.2

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4. Brand Parity
The increase in national and global competition is due to the availability of multiple brands.
Many of these products have nearly identical benefits. When consumers believe that most
brands offer the same set of attributes, the result is brand parity.
From the consumers perspective, this means that shoppers will purchase from a group of
accepted brands rather than one specific brand. When brand parity is present, quality is often
not a major concern because consumers believe that only minor quality differences exist.
Consumers routinely view quality levels of products as being nearly equal. As a result, they often
base purchase decisions on other criteria, such as price, availability, or a specific promotional
deal. The net effect is that brand loyalty has experienced a steady decline.
Brand loyalty has also been reduced because of a growing acceptance of private brands. A
recent survey conducted by Top Brands revealed that consumers are willing to switch brands in
most product categories. In response, the marketing team tries to create messages that express
how the companys products are clearly different. The messages are designed to convince
consumers that the companys brand is superior and is not the same as the competitions. A
quality IMC program is, in part, designed to gain the benefits associated with a strong brand
name.
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5. Integration of Information
Todays consumers have a variety of choices regarding where they obtain
information about a brand. If consumers are not satisfied with what they
hear, they can seek additional information. They might go to the Internet
and read about other brands and companies.
Most companies now list Internet addresses on advertisements. Web
users can now discuss products and companies with other customers in
chat rooms or in blogs. They may also travel to retail stores and discuss
various options with the salesclerk. Others will consult independent
sources of information such as Consumer Reports.
The marketing team should be concerned with the ways consumers
integrate this information. Company leaders should make sure that every
contact point projects the same message. Contact points are the places
where customers interact with or acquire additional information from a
company. These contacts may be direct or indirect, planned or
unplanned. An effective IMC program sends a consistent message about
the nature of the company, its products, and the benefits that result from
making a purchase from the organization.
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6. Decline in Effectiveness of Mass-Media Advertising


1.1

The influence of mass-media television advertising has declined dramatically. VCRs and
DVR systems allow consumers to watch programs without commercials. The rise in
popularity of cable TV, DVR recorders, and satellite dishes means consumers have a
wide variety of viewing choices. Using the remote while watching television means that
it is likely that, during most commercials, the viewer is surfing other channels to see
what else is on. Many television advertisements are not seen, even by those people
watching a particular program. In a recent survey by conducted by Brandweek
magazine, only 16% of viewers said that they watch commercials during a program.

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6. Decline in Effectiveness of Mass-Media Advertising


1.2

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Globally Integrated
Marketing
Communications

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GIMC 1.1
As IMC turns international, literally global. We now call it GIMC, or, globally
integrated marketing communications program. The goal is still the sameto
coordinate marketing efforts. The challenges are greater due to larger national
and cultural differences in target markets.
Previously, marketers could employ two different strategies for global companies.
The first approach was standardization, in which the idea was to standardize
the product and message across countries. The goal of this approach was
generating economies of scale in production while creating a global product
using the same promotional theme. The language would be different, but the
basic marketing message would be the same.
The second approach to global marketing was adaptation. Products and
marketing messages were designed for and adapted to individual countries.
Thus, the manner by which a product was marketed in France was different from
how it was marketed in Italy, India, or Australia.

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GIMC 1.2
The GIMC approach is easier to
apply when a company relies on the
standardization method; however,
GIMC can and should be used with
either adaptation or
standardization.

Members of the marketing


department should not feel like
they have to reinvent the wheel.
Synergy can occur between
countries. More importantly,
learning can occur.

To reduce costs, careful coordination


of marketing efforts should occur
across countries. Even when a firm
uses the adaptation strategy,
marketers from various countries
can learn from each other.

As telecommunications continue to
expand, contacts between peoples
of different countries are much
more frequent.

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Drawing the line


A commercial targeted for customers in Bangladesh may also be viewed by people in
Spain using satellite technologies.
Therefore, a company should try to transmit a consistent theme, even when there are
differences in local messages. In terms of marketing, the philosophy many companies
use is market globally, but act locally.
When marketers design or encode messages for local markets, they need to have the
freedom to tailor or alter the message so that it fits the local culture and the target
market. The final message conveyed in each country often varies. Development of a
GIMC is the final extension to an IMC plan. With its completion, companies are able to
compete more effectively both at home and abroad.

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