AN INTRODUCTION TO INTEGRATED MARKETING

COMMUNICATION

REPORTED BY:

VICTORIA JESUSA CABALLEROPUP GRADUATE SCHOOL

MASTERS IN BUSINESS ADMINISTRATIONHUMAN RESOURCE MANAGEMENT

AN INTRODUCTION TO INTEGRATED MARKETING

COMMUNICATION

REPORTED BY:

VICTORIA JESUSA CABALLEROPUP GRADUATE SCHOOL

MASTERS IN BUSINESS ADMINISTRATIONHUMAN RESOURCE MANAGEMENT

WHAT IS MARKETING?

Marketing is an organizational

function and a set of processes for creating,

communicating and delivering value to customers and for

managing customer relationships in ways

that benefit the organization.

Marketing is an organizational

function and a set of processes for creating,

communicating and delivering value to customers and for

managing customer relationships in ways

that benefit the organization.

PRODUCTPRODUCT

PRICEPRICE

PROMOTIONPROMOTION

PLACEPLACE

PRODUCTPRODUCT

PRICEPRICE

PROMOTIONPROMOTION

4Ps4Ps

PLACEPLACE

STRATEGIC MARKETING COMMUNICATION

WHAT IS INTEGRATED MARKETING COMMUNICATION?

Integrated Marketing

Communication is the coordination and

integration of all marketing

communication tools, avenues and sources

within the company into a seamless program that maximizes the impact on consumers and other end

users at minimal cost

Integrated Marketing

Communication is the coordination and

integration of all marketing

communication tools, avenues and sources

within the company into a seamless program that maximizes the impact on consumers and other end

users at minimal cost

PRODUCTPRODUCT

PRICEPRICE

PLACEPLACE

PRODUCTPRODUCT

PRICEPRICE

PLACEPLACE

PROMOTIONPROMOTIONPROMOTIONPROMOTION

PEOPLEPEOPLEPEOPLEPEOPLE

PROCESSPROCESSPROCESSPROCESS

PHYSICAL EVIDENCEPHYSICAL EVIDENCEPHYSICAL EVIDENCEPHYSICAL EVIDENCE

COORDINATED INTEGRATED MARKETING COMMUNICATION

Sample videos

Point ofpurchase

Publicity

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

Directresponse

TRADITIONAL APPROACH TO MARKETING COMMUNICATIONS

MediaAdver-tising

CONTEMPORARY IMC APPROACH

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

MediaAdver-tising

TRADITIONAL VS INTEGRATED MARKETING

GOAL OF IMC

BUILD BRANDS – brands that are well known and liked are more likely to be

purchased

BUILD BRANDS – brands that are well known and liked are more likely to be

purchased

Generate short-term financial returns and build long-term brand value.

Generate short-term financial returns and build long-term brand value.

INCREASE PROFIT MARGIN

TRUST AMONG CONSUMERSTRUST AMONG CONSUMERS

BRAND DIFFERENTIATIONBRAND DIFFERENTIATION

ACCOUNTABILITY WITHIN A FIRMACCOUNTABILITY WITHIN A FIRM

BENEFITS OF IMC

IMCIMC

Level of Effectiveness is cutting through a message clutter than

single strategies

Level of Effectiveness is cutting through a message clutter than

single strategies

LEVEL OF EFFECTIVENESS IS CUTTING THROUGH A MESSAGE

CLUTTER THAN SINGLE STRATEGIES

LEVEL OF EFFECTIVENESS IS CUTTING THROUGH A MESSAGE

CLUTTER THAN SINGLE STRATEGIES

IMPACT OF IMC

Business-to-business (B2B) interactions

Business-to-business (B2B) interactions

Marketing Channel Communications

Marketing Channel Communications

Customer-Focused Communications

Customer-Focused Communications

Internally Directed Communication

Internally Directed Communication

INTEGRATED MARKETING

COMMUNICATION

INTEGRATED MARKETING

COMMUNICATION

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

THE CHANGING WORLD

MC IMC

“Talking At” Consumers“Talking At” Consumers Two-way Dialogue with Consumers

Two-way Dialogue with Consumers

Focus on Winning New Customers

Focus on Winning New Customers

Focus on Building Long Term Relationships with Consumers

Focus on Building Long Term Relationships with Consumers

Marketers Relied Primarily on Advertising and

Promotions

Marketers Relied Primarily on Advertising and

Promotions

Marketers Use and Coordinate Many Different Forms of

Communication With Consumers

Marketers Use and Coordinate Many Different Forms of

Communication With Consumers

“Talking At” Consumers“Talking At” Consumers

Two-way Dialogue with Consumers

Two-way Dialogue with Consumers

Focus on Winning New Customers

Focus on Winning New Customers

Focus on Building Long Term Relationships with

Consumers

Focus on Building Long Term Relationships with

Consumers

Marketers Relied Primarily on

Advertising and Promotions

Marketers Relied Primarily on

Advertising and Promotions

Marketers Use and Coordinate Many Different Forms of Communication

With Consumers

Marketers Use and Coordinate Many Different Forms of Communication

With Consumers

THE CHANGING WORLD

OLD WORLD NEW WORLD

Mass MarketingUsing Mass Communication

Mass MarketingUsing Mass Communication

Relationship Marketing Using Integrated Marketing Communication

with a Focus on Interaction

Relationship Marketing Using Integrated Marketing Communication

with a Focus on Interaction

IMC – THE EVOLUTION

TO

WHAT TRENDS ARE DRIVING THE INTEGRATION

Brand and Product ProliferationBrand and Product Proliferation

INTERNALINTERNAL EXTERNALEXTERNAL

CustomizationCustomization

Decreasing Brand LoyaltyDecreasing Brand Loyalty

Price SensitivityPrice Sensitivity

More Demand, Less TrustMore Demand, Less Trust

ClutterClutter

Service EconomicsService Economics

ExpertiseExpertise

Corporate MissionsCorporate Missions

Communication TechnologyCommunication Technology

Benefits to be GainedBenefits to be Gained

Rising Costs & AccountabilityRising Costs & Accountability

IMC AND THE NEED FOR INTEGRATION

Covers a number of different media and strategiesCovers a number of different media and strategies

TV, Radio, Direct, PR, Social Media etc.TV, Radio, Direct, PR, Social Media etc.

Integration provides synergyIntegration provides synergy

Selective combination of appropriate types of communication

Selective combination of appropriate types of communication

Meeting a common set of objectives for the brand.Meeting a common set of objectives for the brand.

Integration over time with regard to customersIntegration over time with regard to customers

INTEGRATION AND SYNERGY

INTEGRATION SYNERGY

When brand messages are integrated…

…they reinforce each other…

…and create synergy

THE IMPORTANCE OF INTEGRATION

Integration begins with the way a company and its agencies organize the process for creating and

delivering brand messages

Integration begins with the way a company and its agencies organize the process for creating and

delivering brand messages

The CompanyThe Company

All participants involved in creating and delivering brand messages must work together:

All participants involved in creating and delivering brand messages must work together:

Company AgenciesCompany Agencies

The MediaThe Media

Channel Members, andChannel Members, and

MC Support ServicesMC Support Services

IMC PROCESS MODEL

WEAK BRAND RELATIONSHIPS

Lose Customers, Sales, and Brand Equity

WEAK BRAND RELATIONSHIPS

Lose Customers, Sales, and Brand Equity

STRONG BRAND RELATIONSHIPS

Increased Sales, Customers, and Brand Equity

STRONG BRAND RELATIONSHIPS

Increased Sales, Customers, and Brand Equity

THE KEY PLAYERS IN THE IMC PROCESS

ORGANIZATIONS: JANILYN SHOES AS AN EXAMPLE

B2B

B2C

Janilyn’s Relationship with shoe retailer like SM Department Store

Janilyn stores selling shoes directly to customers

THE COMMUNICATION PROCESS

TRADE FAIRS AND EXHIBITIONS

ELEMENTS OF THE PROMOTIONAL MIX

ADVERTISING

SALES PROMOTION

PUBLIC RELATION | PUBLICITY

DIRECT MARKETING

PERSONAL SELLING

EVENTS AND SPONSORSHIPS

INTERNET AND SOCIAL MEDIA

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

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

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

SALES PROMOTION

SalesPromotion

SalesPromotion

• 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

InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

PressConferences

NewsReleases

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

NewsReleases

PUBLICITY VEHICLES

PublicityVehiclesPublicityVehicles

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

PUBLIC RELATIONS TOOLS

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

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

DirectMail

CatalogsCatalogs

TelemarketingTelemarketing

InternetSales

InternetSales

ShoppingChannelsShoppingChannels

DirectMail

DirectMail

TelemarketingTelemarketing

CatalogsCatalogs

ShoppingChannelsShoppingChannels

DIRECT MARKETING

DirectMarketing

DirectMarketing

PERSONAL SELLING

TRADE FAIRS AND EXHIBITS

EVENTS AND SPONSORSHIPS

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

INTERNET | SOCIAL MEDIA

TheInternet

TheInternet