An Introduction to

Integrated Marketing
Communications (IMC)

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Chapter plan

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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 1. What is IMC?

Coordinating the various

promotional elements to
effectively communicate with
target audiences

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Traditional Approach to Marketing
Communications

Sales
Publicity promotion
Point of
purchase

Media Packaging
Special Adver-
events tising Direct
response
Public
relations
Interactive
Direct marketing
marketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 2. Reasons for the Growing
Importance of IMC
From Toward
Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Traditional compensation Performance-based compensation

Limited Internet availability Widespread Internet availability

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 3. IMC and Branding

2005 Brand Value

Brand Identity is a (Billions of Dollars)
combination of factors:
Name, logo, symbols, 1. Coca-Cola $67.52
design, packaging, 2. Microsoft $59.94
product or service 3. IBM $53.38
performance, and image 4. GE $46.99
or associations in the
5. Intel $35.59
consumer’s mind.
6. Nokia $26.45
IMC plays a major role 7. Disney $26.44
in the process of 8. McDonald’s $26.01
developing and
sustaining brand 9. Marlboro $24.84
identity and equity. 10. Mercedes $21.19
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
4. The promotional mix: The tools of IMC

4.1. Advertising

4.2. Direct Marketing

4.3. Internet Marketing

4.4. Sales Promotion

4.5. Public Relations

4.6. Personal Selling

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.1. Advertising

Paid

Non-personal

Cost effective

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Classifications of Advertising

National Advertising

Retail/Local Advertising

Primary vs. Selective

Demand Advertising
Consumers

Business-to-Business Advertising

Professional Advertising

Trade Advertising
Organizations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.2. Direct Marketing

Direct
Mail
Direct
Internet
Response
Sales Advertising
Direct
Marketing
Shopping
Telemarketing
Channels

Catalogs

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 4.3. Internet marketing

The
Internet

Educates or A persuasive A sales tool

informs advertising or an actual
customers medium sales vehicle

Obtains Provides Builds and

Communicates
customer customer maintains
and interacts
database service and customer
with buyers
information support relationships
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.4. Sales Promotion Tools

Coupons
Samples Trade
Allowances
Premiums
POP Displays
Contests/Sweepstakes
Training
Refunds/Rebates Programs
Bonus Packs Trade
Shows
Loyalty Programs
Coop
Events Advertising

• Consumer- • Trade-
oriented oriented
• [For end-users] • [For resellers]
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 4.5. Public Relations Tools

Publicity Special
Vehicles Publications

Community Corporate Cause-related

Activities Advertising Marketing

Public Affairs Special Event

Activities Sponsorship

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Publicity Vehicles

Feature
Articles

News
Interviews
Releases Publicity
Vehicles

Press Special
Conferences Events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Advertising Versus Publicity

Factor Advertising Publicity

Control Great Little

Credibility Lower Higher

Reach Measurable Undetermined

Frequency Schedulable Uncontrollable

Cost High/Specific Low/Unspecified

Flexibility High Low

Timing Specifiable Tentative

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 4.6. Personal selling

Face-to-face communication

Mostly used for business customers

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 5. IMC Planning Model
Review of marketing plan
Promotional program situation analysis
Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Sales PR/ Personal Direct Internet/

Advertising
promotion publicity selling marketing interactive

Advertising Sales PR/ Personal Direct Internet/

promotion publicity selling marketing interactive
objectives objectives objectives objectives objectives objectives

Message Sales PR/ Personal Direct Internet/

promotion publicity selling marketing interactive
strategy strategy strategy strategy strategy strategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program
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 5. IMC Planning Model

Read the details on page 29

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin