Unit 1: Role of IMC in marketing process, IMC planning model, Marketing and promotion Process model. Communication process, steps involved in developing IMC programme, Effectiveness of marketing communications Purpose, Role, Functions, Types, Advertising Vs Marketing mix, Advertising appeal in various stages of PLC

1. INTEGRATED MARKETING
COMMUNICATIONS
UNIT - 1
By:
Dr. PANKAJAKSHI R
B.E (ISE), MBA, Ph.D.

2. Integrated Marketing
Communications
UNIT 1:
 Role of IMC in Marketing Process,
 IMC Planning Model,
 Marketing and Promotion Process model.
 Communication Process,
 Steps involved in developing IMC Programme,
 Effectiveness of Marketing Communications
 Purpose, Role, Functions, Types,
 Advertising Vs Marketing mix,
 Advertising appeal in various stages of PLC

3. Integrated Marketing communications 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 firm’s business to business,
marketing channel, customer focused internally directed
communications.
The IMC approach seeks to have all of a company’s marketing
and promotional activities project a consistent, unified image
to the marketplace.
It calls for a centralized messaging function so that everything
a company says and does communicates a common theme
and positioning.

4. Elements of IMC
Integrated Marketing communication
Advertising
Direct
Marketing
Sales
Promotion Internet
( Latest entrant)
Publicity /
Public Relations
Personal
selling

6. Direct marketing example:-include Cell Phone Text messaging, email,
interactive consumer websites, online display ads, fliers, catalog
distribution, promotional letters, targeted television commercials, response-
generating newspaper/magazine advertisements, and outdoor advertising.
Sales promotion: Examples include contests, coupons,freebies, point of
purchase displays, premiums, prizes, product samples, sweepstakes
and rebates- Sales promotions targeted at the consumer are
called consumer sales promotions. Sales promotions targeted at retailers
and wholesale are called trade sales promotions.
Public relation:
Print Campaigns, Radio and Television Campaigns, Online Campaigns.
Personal selling: Examples- retail selling, field selling, telemarketing, inside
selling.
Public Relations: Company donates Rs……… to a particular cause
Direct Marketing: Sending a credit card offer to someone in the mail. (Junk
mail/telemarketing is direct marketing

7. Features of IMC
• IMC represents Customer as the Starting Point
• Coordination of the Firm
• Multiple Message Single Voice
• Focus in Build Relationships
• Focus on Ultimate Objective
Factors contributing to IMC
• Fragmentation of Media
• Better Audience Assessment
• Consumer Empowerment
• Increased Advertising Clutter
• Database Technology
• Channel Power
• Accountability

8. Role of IMC in Marketing process
• Marketing strategies influence the role of promotion and promotional
decisions must be coordinated with other areas of the marketing mix.
• The marketing process begins with the development of a marketing
strategy and analysis in which the company decides the product or
service areas and particular markets where it wants to compete.
• The company must then coordinate the various elements of the
marketing mix into a cohesive marketing program that will reach the
target market effectively.
• A firm’s promotion program is directed not only to the final buyer but
also to the channel or trade members that distribute its product to the
ultimate consumer. These channel members must be convinced there
is a demand for the company’s products so they will carry them and will
aggressively merchandise and promote them to consumers.
• Promotions play an important role in the marketing program for building
and maintaining demand not only among final consumers but among
the trade as well.

9. Growing Importance of IMC
• A shifting of marketing dollars from media advertising to
other forms of promotion, particularly consumer and
trade oriented sales promotions
• A movement away from relying on advertising-focused
approaches, which emphasize mass media such as
network television and national magazines to solve
communication problems.
• A shift in marketplace power from manufacturers to
retailers.
• The rapid growth and development of database
marketing.
• Demands for greater accountability from advertising
agencies and changes in the way agencies are
compensated.
• The rapid growth of the Internet, which is changing the
very nature of how companies do business.

10. IMC Planning Model
Those involved with the IMC program must
decide on the role and function of the
specific elements of the promotional mix,
develop strategies for each element,
determine how they will be integrated, plan
for their implementation and consider how
to evaluate the results achieved and make
any necessary adjustments.

12. • 1.Review of the Marketing Plan – Before developing a
promotional plan, marketers must understand where the
company has been, its current position in the market, where
it intends to go and how it plans to get there.
Marketing plans include five basic elements:
1. A detailed situation analysis that consists of an internal marketing
audit and review and an external analysis of the market
competition and environmental factors.
2. Specific marketing objectives that provide direction, a time frame
for marketing activities and a mechanism for measuring
performance.
3. A marketing strategy and program that include selection of target
market and decisions and plans for the four elements of the
marketing mix.
4. A program for implementing the marketing strategy, including
determining specific tasks to be performed and responsibilities.
5. A process for monitoring and evaluating performance and
providing feedback so that proper control can be maintained and
any necessary changes can be made in the overall marketing
strategy or tactics.

13. 2.Promotional Program Situation Analysis –
Internal Analysis – The internal analysis assesses relevant
areas involving the product/service offering and the firm
itself. The capabilities of the firm and its ability to develop
and implement a successful promotional program, the
organization of the promotional department and the
successes and failures of past programs should be
reviewed.
External Analysis – The external analysis focuses on factors such as
characteristics of the firm’s customers, market segments,
positioning strategies and competitors. An important part of the
external analysis is a detailed consideration of customer’s
characteristics and buying patterns, their decision processes and
factors influencing their purchase decisions.
• Analysis of the Communication Process – This stage of the
promotional planning process examines how the company can
effectively communicate with consumers in its target markets. T
• he promotional planner must think about the process consumers
will go through in responding to marketing communications.
• The promotional planner should recognize the different effects
various types of advertising messages might have on consumers
and whether they are appropriate for the product or brand.

14. 3. Analysis of the Communication Process:
• Communication Process
• Two elements represent the major process, the
sender and the receiver.
• Another two are the major communication tools,
message and channel.
• Four others are the major communication functions
and processes: encoding, decoding, response and
feedback.
• The last element, noise, refers to any extraneous
factors in the system that can interfere with the
process and work against effective communication.
• Communication objective help account executives
and advertising creative design effective messages

15. Communication Process
Sender’s Field of
Experience
Receiver’s Field of
Experience
Sender/Source Encoding Channel
Message
Decoding Receiver
Noise
ResponseFeedback

16. • Source Encoding – The sender or source of
a communication is the person or
organization that has information to share
with another person or group of people.
• The source may be an individual(say a
salesperson, or hired spokesperson, such as
a celebrity, who appears in a company’s
advertisements) or a nonpersonal entity (such
as the corporation or organization itself).
• The communication process begins when the
source selects words, symbols, pictures and
the like to represent the message that will be
delivered to the receiver.
• This process, known as encoding, involves
putting thoughts, ideas or information into a
symbolic form.,

17. • Message – The encoding process leads to development of a
message that contains the information or meaning the source
hopes to convey. The message may be verbal or nonverbal,
oral or written, or symbolic.
• Channel – The channel is the method by which the
communication travels from the source or sender to the
receiver. Personal channels of communication are direct
interpersonal contact with target individuals or groups.
• Receiver/Decoding – The receiver is the person with
whom the sender shares thoughts or information.
Generally, receivers are the consumers in the target
market or audience who read, hear and/or see the
marketer’s message and decode it. Decoding is the
process of transforming the sender’s message back into
thought. This process is heavily influenced by the
receiver’s frame of reference or field of experience.
• Noise – Throughout the communication process, the
message is subject to extraneous factors that can distort
or interfere with its reception. This unplanned distortion or
interference is known as noise.
• Response/ Feedback – The receiver’s set of reactions
after seeing, hearing or reading the message is known as
response

18. 4.Budget Determination –
• What will the promotional program cost?
• How will the money be allocated?
• In reality, promotional budgets are often
determined using a more simplistic
approach, such as how much money is
available or a percentage of a company’s
or brand’s sales revenue.

19. • 5. Developing the Integrated Marketing
Communications Program –
At this stage of the planning process, decisions
have to be made regarding the role and
importance of each element and their coordination
with one another.
• Decisions must be made and activities
performed to implement the promotional
programs.
• Procedures must be developed for evaluating
performance and making any necessary
changes.

20. Steps of Developing IMC Program
Creation of
Central Theme
for IMC
Campaign
Creative
Strategic
Planning
Development
Creative
Strategic
Implementation
and Evaluation
Media
Planning and
Strategy
Proposition
of various
mediums
Evaluation of
different media
Effectiveness
Selection of
Optimal Media
Deployment
of direct
Marketing in
IMC Program
Deployment
of Sales
Promotion
Techniques
Deploying
Personal
Selling as a
Promotional
Tool
Developing Public
Relations and
Internet as a
PromotionalTool

21. 6. Integrate and Implement Marketing
Communications Strategies
 Integrate promotional mix strategies.
 Create and produce ads.
 Purchase media time and space
 Design and implement direct marketing programs
 Design and implement sales promotion
program
 Design and implement public relations/
publicity programs
 Design and implement interactive/
internet marketing programs

22. • 7. Monitoring, Evaluation and Control –
The final stage of the IMC planning process
is monitoring, evaluating and controlling the
promotional program.
• It is important to determine how well the IMC
program is meeting communication
objectives and helping the firm accomplish its
overall marketing goals and objectives.
• The IMC planner wants to know not only how
well the promotional program is doing but
also why.

23. Product
Decisions
Pricing
Decisions
Distribution
Decisions
Product
Decisions
Pricing
Decisions
Distribution
Decisions
Opportunity
Analysis
Competitive
Analysis
Target
Marketing
Identifying
Markets
Market
Segmentation
Selecting a
Target Market
Positioning
Through
Marketing
Strategies
Promotional
Decisions
• Advertising
• Direct
Marketing
• Interactive
Marketing
• Sales
Promotion
• Publicity and
Public Relations
• Personal Selling
Resellers
Ultimate
Consumer
• Consumers
• Businesses
Promotion
to Final
Buyer
Promotion
ToTrade
Opportunity
Analysis
Competitive
Analysis
Target
Marketing
Identifying
Markets
Market
Segmentation
Selecting a
Target Market
Positioning
Through
Marketing
Strategies
Promotional
Decisions
• Advertising
• Direct
Marketing
• Interactive
Marketing
• Sales
Promotion
• Publicity and
Public Relations
• Personal Selling
Ultimate
Consumer
• Consumers
• Businesses
Marketing and Promotions Process Model
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

24. Marketing and Promotion Process
Model
• Marketing Strategy and Analysis – Any organization that
wants to exchange its products or services in the marketplace
successfully should have a strategic marketing plan to guide
the allocation of its resources. A strategic marketing plan
usually evolves from an organization’s overall corporate
strategy and serves as a guide for specific marketing
programs and policies.
• Opportunity Analysis – Market opportunities are areas
where there are favorable demand trends, where the
company believes customer needs and opportunities are not
being satisfied and where it can compete effectively. For eg.
Looking at the rise in disposable income of the Indian
population, and change in the lifestyle pattern, the foreign
automobile manufacturers have entered the Indian market.

25. • Competitive Analysis – Competition may range
from direct brand competition to more indirect
forms of competition , such as product substitutes.
For eg. As a result of shrinking cola sales, both
Coke and Pepsi planned to launch more than two
dozen such as Coke, Diet Coke, Diet Coke with
Lemon and more versus Pepsi, Diet Pepsi, Pepsi
Twist and Pepsi Blue
• Target Market Selection – The target market
becomes the focus of the firm’s marketing effort
and goals and objectives are set according to
where the company wants to be and what it
hopes to accomplish in this market.

26. The Target Marketing Process
Identifying Markets – Target market identification
isolates consumers with similar lifestyles, needs
and the like and increases our knowledge of their
specific requirements. For eg. Biscuits for
Diabetic patients, made of wheat, oats etc
Identifying
the
markets
Determining
the market
segmentation
Selecting
the market
to target
Positioning
through
marketing
strategy

27. • Market Segmentation – Involves five distinct
steps:
1.Finding ways to group consumers according
to their needs.
2.Finding ways to group the marketing actions-
usually the products offered-available to the
organization.
3.Developing a market product grid to relate the
market segments to the firm’s products or
actions.
4.Selecting the target segments toward which
the firm directs its marketing actions.
5.Taking marketing actions to reach target
segments.

28. Bases for Segmentation
Geographic Segmentation – North, South, East and West.
Demographic Segmentation – Based on age, sex, family size,
education, income and social class. Eg. Village, a website targeting
women.
Psychographic Segmentation – Value and lifestyle of the customer. For
eg. Target market for Hummer as “highly adventurist, entrepreneurial
and free spirited achievers (strong, energetic, brave) .
Behavioristic Segmentation – Usage, loyalties or buying responses to a
product. Eg. Apple has successfully extended the appeal of its new
computers to adopters of the iPod.
Benefit Segmentation – Basis of attributes sought in a product that
provide specific benefits. Eg. In the toothpaste market, some
consumers want a product with fluoride (Crest, Colgate), others
prefer one that freshens the breath (Close-Up, Aqua Fresh), or for
people with sensitive teeth (Sensodyne).

29. • Selecting a Target Market –
1. Undifferentiated marketing involves
ignoring segment differences and offering
just one product or service to the entire
market (one marketing strategy for
everybody). For eg. When Henry Ford
brought out the first assembly-line
automobile, all potential customers were
offered the same basic product: a black
Ford.
2. Differentiated marketing involves
marketing in a number of segments,
developing separate marketing strategies
for each.

30. • Market Positioning
Positioning by product attributes and benefits –
When Apple first introduced its computers, the
key benefit stressed was ease of use-an effective
strategy, given the complexity of computers in
the market at that time.
Positioning by Price/Quality – Bajaj in auto sector
and Nokia use this strategy successful.
Positioning by Use or Application – Arm & Hammer
baking soda has been promoted for everything
from baking to relieving heartburn to eliminating
odors in carpets and refrigerators.
Positioning by Product Class – Manufacturers of
music CDs must compete with MP3 players,
many margarines position themselves against
butter.
Positioning by product user –Diet Coke has been
positioned for youth population.

31. Advertising
Advertising is a paid form of non-personal
communication. Advertising promotes ideas, goods and
services of an identified sponsors.
• Advertising is a paid form of communication. It is paid,
because the advertiser has purchased time and space.
• It is non-personal in nature, because it is not directed
towards an individual i.e., no face to face presentation.
• Purpose of advertising is to promote ideas about
products and services.
• Advertising is done to create interest in goods and
services.
• Advertising is issued by an identified sponsor-
advertising is done by the source.

32. Types of Advertising
• Consumer Advertising – Most of the
consumer products company encourage
product advertising. Marketers of cosmetics,
detergents, soaps are included here. Eg. Lux
• Service Advertising – Service sector
encompass such services as medical
services, financial services, education
services etc. In service advertising, the
service provider sells his expertise. Eg.
Incredible India

33. • Industrial Advertising – The number of
industrial advertising as percentage of sales is
much less compared to consumer product
advertising. The demand being derived in
nature, the advertisement may lose the
intensity of the product.
The advertisement copy is usually filled with
figures and facts. Eg. Trade journals act as media
for industrial advertising.
• Surrogate Advertising – In this type of
advertisement, one product is substituted for
another example- Alcohol advertisement is
banned, but mineral water or apple juice, or
soda is being substituted for advertisement. Eg.
Kingfisher

34. • Trade Advertising – Advertising targeted to
marketing channel members such as
wholesalers, distributors and retailers. The
goal is to encourage channel members to
stock, promote and resell the manufacturer’s
branded products to their customers.
• Non-profit Advertising – Here idea selling
is done instead of product or service. Eg.
Anti smoke etc.

35. Purpose of Advertising
The purpose of advertising include:
1. Primary and Selective demand stimulation
2. Direct and Delayed response advertising
3. Corporate Advertising
• Primary Demand Stimulation – An advertiser is
seeking to create demand for a new product
category in general. The purpose of this type of
advertising is to educate potential buyers about
the fundamental values of an entire product
category rather than to emphasize the values of a
specific brand within the product category.

36. • Selective Demand Stimulation – An
advertiser is seeking to stimulate demand for
a particular company’s brand. The purpose of
selective demand stimulation advertising is to
point out a brand’s unique benefits compared
to the competition.
• Direct response advertising – Asks the
receiver of the message to act immediately.
An ad that suggests that you “ call this toll free
number” or “ mail your Rs. 20 before midnight
tonight” is an example of direct response
advertising.

37. • Delayed Response Advertising – Relies on imagery
and message themes that emphasize the benefits
and satisfying characteristics of a brand. It attempts to
develop recognition and approval of a brand over
time. It attempts to create brand awareness, reinforce
the benefits of using a brand, develop a general liking
for the brand and create an image for a brand.
• Corporate Advertising- It is not designed to promote
a specific brand, but rather functions to establish a
favorable attitude toward the company as a whole.
Eg: Xerox, HP, IBM, and Apple

38. Functions of Advertising
• Social Function – Advertisement helps to solve
social causes, such as fighting diseases like
cancer, polio drops etc.
• Psychological Function – Appeals to
psychological motives of human beings such as
soft drink company advertising to meet the
psychological need of the customer namely “thirst”
eg. Thanda matlab Coca Cola.
• Economic Function – Increase sales in an
effective manner. Establishes a rapport with the
customer.

39. Role of Advertising
• Awareness – To make the customers aware of the
particular product and the objective is to build
primary demand.
• Persuasion (Opinion) – It becomes important in the
competitive stage and the objective is to build
selective demand for a particular brand.
• Reinforcement (Strengthening)– Seeks to assure
current purchasers that they have made the right
choice.
• Reminder – It is important with mature products and
the objective is to remind people to purchase the
particular brand.

40. • Advertiser controls the message
• Cost effective way to communicate with large
audiences
• Effective way to create brand images and
symbolic appeals
• Often can be effective way to strike responsive
chord with consumers
Disadvantages of advertising
 High costs of producing and running ads
 Credibility problems and consumer
skepticism
 Clutter
 Difficulty in determining effectiveness
Advantages of advertising

41. Interactive/Internet Marketing
• Use of the Internet as an IMC Tool
• As an advertising medium to inform, educate and persuade
customers
• As a direct sales tool
• To obtain customer database information
• To communicate and interact with buyers
• To provide customer service and support
• To build and maintain customer relationships
• As a tool for implementing sales promotion
• As a tool for implementing publicity/public relations programs

42. Advertising and Marketing Mix
The elements of marketing mix are:
• Product
• Price
• Place
• Promotion
Advertisement is a communication tool in
marketing: advertising helps to move the
product or service to the end user. The extent
to which the advertisement is used as a
communication tool depends upon the nature
of business.

43. • Advertising and product decisions – A product is
not just a physical object, it is a bundle of benefits or
values that satisfies the needs of consumers.
Product symbolism refers to what a product or
brand means to consumers and what they experience
in purchasing and using it. For eg. Designer clothing
like Versace and Gucci are often purchased on the
basis of its symbolic meaning and image.
Branding – Choosing a brand name is important from
promotional perspective because brand names
communicate attributes and meaning. Eg. Mr.
Muscle.
Brand equity – Allows a brand to earn greater sales
volume and higher margins than it could without the
name, providing the company with a competitive
advantage. Eg. Nike, Apple.

44. Packaging – provides functional benefits such as
economy, protection and storage. Role has changed
because of self-service emphasis of many stores and
more and more buying decisions are made at the point
of purchase. Create a distinctive brand image and
identity in the minds of the customers.
• Advertising and Price decisions – Price refers to
what the customer must give up to purchase a product
or service. From an IMC perspective, the price must be
consistent with the perceptions of the product, as well
as the communications strategy.
• Higher prices will communicate a higher product
quality, while lower prices reflect bargain or value
perceptions. Companies with high quality and high
advertising levels obtained the highest prices.

45. • Advertising and Distribution Channel
Decisions – A firm can have an excellent
product at a great price, but it will be of little
value unless it is available where the customer
wants it, when the customer wants it and with
the proper support and service.
• Channel elements contribute to communication
– for eg. Grocery store displays, point-of-
purchase merchandising and shelf footage.
• The distribution channel in a well integrated
marketing program serves as a form of
reminder advertising. A company can choose
not to use any channel intermediaries but,
rather, to sell to its customers through direct
channels eg, Tupperware, Avon, etc.

46. • Developing Promotional Strategies: Push or Pull –
Programs designed to persuade the trade to stock
merchandise and promote a manufacturer’s products
are part of a promotional push strategy.
• The goal of this strategy is to push the product through
the channels of distribution by aggressively selling and
promoting the item to the resellers, or trade.
• Company sales representatives call on resellers to
explain the product, discuss the firm’s plans for building
demand among ultimate consumers and describe
special programs being offered to the trade such as
introductory discounts, promotional allowance, trade
advertising and cooperative ad programs.
• In promotional pull strategy, companies spend money
on advertising and sales promotion efforts directed
towards the ultimate consumer. The goal of a pull
strategy is to create demand among consumers and
encourage them to request the product from the
retailer.

47. Effectiveness of Marketing
Communications
5%
Repurchase/
Regular Use
25% Preference
40% Liking
70% Knowledge
90% Awareness

48. 1. Create awareness among 90% of target audience – Use
repetitive advertising in newspapers, magazines, TV and
radio programs. Simple message.
2. Create interest in the brand among 70%of target audience
– Communicate information about the features and
benefits of the brand-i.e. that it contains no soap and
improves the texture of the hair. Use more copy in ads to
convey benefits.
3. Create positive feelings about the brand among 40% and
preference among 25% of the target audience –Create
favorable attitudes by conveying information, promotions,
sampling etc. Refer consumer to website for more
information, beauty tips etc.
4. Obtain trial among 20% of the target audience – Use
sampling and cents-off coupons along with advertising
and promotions. Offer coupons through website.
5. Develop and maintain regular use among 5% of the target
audience – Use continued-reinforcement advertising,
fewer coupons and promotions. Increase communications
efforts to professionals.

49. Advertising in the various stages of PLC
Life cycle model of advertising has three stages:
• Pioneering stage – Advertising mode in the
pioneering stage must impress that this is an
improved product. Advertising in pioneering stage
should not just present the product, it must
suggest either New usage or Habit change.
In this stage, the pioneer advertiser spends money
to educate the public regarding the advantage of
new product. It is done:
1. To educate consumers about the product/service.
2. To convey the message that the new product
meets the need.
3. Some unmet needs get fulfilled.

50. Product Life cycle
Sales
&
Profit
Time
Awareness
Advertising
Persuasive
and
Comparative
Advertising
Reminder and
Reinforcement
Advertising

51. • Competitive stage – When pioneering product gets
customer acceptance, more people will enter leading to
acute competition. When product reaches the competitive
stage, the advertising done is called comparative
advertising. The purpose of comparative advertising is
to communicate the product difference to the customer. It
shows the unique product features.
• Retentive Stage – This is a maturity stage of the
product. Reinforcement and Reminder advertising will
find useful at this stage. The main objective of
advertisement is to hold on the customers. Eg.
Pepsi/Coke.

52. THANK YOU