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AN INTRODUCTION TO
INTEGRATED MARKETING
COMMUNICATION
VICTORIA CABALLERO
MASTERS IN BUSINESS ADMINISTRATION
HUMAN 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.
PRODUCT
PRICE
PROMOTION
PLACE
PRODUCT
PRICE
PROMOTION
4Ps
PLACE
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
PRODUCT
PRICE
PLACE
PRODUCT
PRICE
PLACE
PROMOTIONPROMOTION
PEOPLEPEOPLE
PROCESSPROCESS
PHYSICAL EVIDENCEPHYSICAL EVIDENCE
COORDINATED INTEGRATED MARKETING
COMMUNICATION
Sample videos
Point of
purchase
Publicity
Public
relations
Direct
marketing
Interactive
marketing
Special
events
Packaging
Sales
promotion
Direct
response
TRADITIONAL APPROACH TO MARKETING
COMMUNICATIONS
Media
Adver-
tising
CONTEMPORARY IMC APPROACH
Point of
purchase
Publicity
Interactive
marketing
Public
relations
Direct
marketing
Special
events
Packaging
Sales
promotion
Direct
response
Media
Adver-
tising
TRADITIONAL VS INTEGRATED MARKETING
GOAL OF IMC
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.
INCREASE PROFIT MARGIN
TRUST AMONG CONSUMERS
BRAND DIFFERENTIATION
ACCOUNTABILITY WITHIN A FIRM
BENEFITS OF IMC
IMC
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
Marketing Channel
Communications
Customer-Focused
Communications
Internally Directed
Communication
INTEGRATED
MARKETING
COMMUNICATION
Traditional compensation Performance-based compensationTraditional compensation Performance-based compensation
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
Limited Internet availability Widespread Internet availability
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
THE CHANGING WORLD
MC IMC
“Talking At” Consumers
Two-way Dialogue with
Consumers
Focus on Winning New
Customers
Focus on Building Long Term
Relationships with Consumers
Marketers Relied Primarily
on Advertising and
Promotions
Marketers Use and Coordinate
Many Different Forms of
Communication With Consumers
“Talking At”
Consumers
Two-way Dialogue with
Consumers
Focus on Winning
New Customers
Focus on Building Long
Term Relationships with
Consumers
Marketers Relied
Primarily on
Advertising and
Promotions
Marketers Use and
Coordinate Many Different
Forms of Communication
With Consumers
THE CHANGING WORLD
OLD WORLD NEW WORLD
Mass Marketing
Using Mass Communication
Relationship Marketing
Using Integrated Marketing Communication
with a Focus on Interaction
IMC – THE EVOLUTION
TO
WHAT TRENDS ARE DRIVING THE
INTEGRATION
Brand and Product Proliferation
INTERNAL EXTERNAL
Customization
Decreasing Brand Loyalty
Price Sensitivity
More Demand, Less Trust
Clutter
Service Economics
Expertise
Corporate Missions
Communication Technology
Benefits to be Gained
Rising Costs & Accountability
IMC AND THE NEED FOR INTEGRATION
Covers a number of different media and strategies
TV, Radio, Direct, PR, Social Media etc.
Integration provides synergy
Selective combination of appropriate types of
communication
Meeting a common set of objectives for the brand.
Integration over time with regard to customers
INTEGRATION AND SYNERGY
INTEGRATION SYNERGYINTEGRATION 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
The Company
All participants involved in creating and delivering
brand messages must work together:
Company Agencies
The Media
Channel Members, and
MC Support Services
Brand Manager communicated by
advertising, sales promotion, direct
response, packaging, customer
service, sponsorship, etc.
ONE- AND Two-Way Media radio,
newspaper, TV, outdoor boards,
events, and sponsorships, mail,
phone, internet, packaging, etc.
Customer
Brand
Experience
Evaluating and Planning
IMC PROCESS MODEL
WEAK BRAND
RELATIONSHIPS
Lose Customers, Sales, and Brand
Equity
STRONG BRAND
RELATIONSHIPS
Increased Sales, Customers, and Brand
Equity
Brand Manager communicated by
advertising, sales promotion, direct
response, packaging, customer
service, sponsorship, etc.
ONE- AND Two-Way Media radio,
newspaper, TV, outdoor boards,
events, and sponsorships, mail,
phone, internet, packaging, etc.
Customer
Brand
Experience
Evaluating and Planning
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
INTERNET AND SOCIAL MEDIA
TRADE FAIRS AND EXHIBITIONS
EVENTS AND SPONSORSHIPS
TRADE FAIRS AND EXHIBITIONS
PERSONAL SELLING
DIRECT MARKETING
PUBLIC RELATION | PUBLICITY
SALES PROMOTION
ADVERTISING
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 Audience
Broadcast
media
(TV/radio)
Print media
(newspapers,
magazines)
Public
Relations/
publicity
Internet/
interactive
Direct
marketing
Sales
Promotion
Product
placements
(TV and movies)
Events and
sponsorship
Word-of-
mouth
Point-of-
purchase
(displays,
packaging)
Personal
selling
Out-of-home
media
Primary vs. Selective
Demand Advertising
Primary vs. Selective
Demand Advertising
Business-to-Business Advertising
Organizations
National Advertising
Retail/Local Advertising
Professional Advertising
Trade Advertising
National Advertising
Retail/Local Advertising
Business-to-Business Advertising
Professional Advertising
CLASSIFICATIONS OF ADVERTISING
Consumers
Introduce new
products
Get existing
customers to buy
more
Attract new
customers
Maintain sales in
off season
Increase retail
inventories
Tie in advertising
& personal
selling
Enhance
personal selling
Combat
competition
Introduce new
products
Get existing
customers to buy
more
Attract new
customers
Maintain sales in
off season
Increase retail
inventories
Tie in advertising
& personal
selling
Enhance
personal selling
SALES PROMOTION
Sales
Promotion
• Consumer-
oriented
• [For end-users]
• Trade-
oriented
• [For resellers]
SALES PROMOTION TOOLS
EventsEvents
Loyalty ProgramsLoyalty Programs
Bonus PacksBonus Packs
Refunds/RebatesRefunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiums
SamplesSamples
CouponsCoupons
Coop
Advertising
Coop
Advertising
Trade
Shows
Trade
Shows
Training
Programs
Training
Programs
POP DisplaysPOP Displays
Trade
Allowances
InterviewsInterviews
Feature
Articles
Special
Events
Press
Conferences
News
Releases
Feature
Articles
Special
Events
News
Releases
PUBLICITY VEHICLES
Publicity
Vehicles
Corporate
Advertising
Corporate
Advertising
Cause-related
Marketing
Cause-related
Marketing
Publicity
Vehicles
Community
Activities
Public Affairs
Activities
Special
Publications
Special Event
Sponsorship
Publicity
Vehicles
Community
Activities
Public Affairs
Activities
Special
Publications
PUBLIC RELATIONS TOOLS
ADVERTISING VERSUS PUBLICITY
Advertising Publicity
Tentative
Low
Low/Unspecified
Uncontrollable
Great
Lower
Measurable
Schedulable
High/Specific
High
Specifiable
Undetermined
Higher
Little
Factor
Control
Credibility
Reach
Frequency
Cost
Flexibility
Timing
Direct
Response
Advertising
Direct
Response
Advertising
Direct
Mail
Catalogs
Telemarketing
Internet
Sales
Shopping
Channels
Direct
Mail
Telemarketing
Catalogs
Shopping
Channels
DIRECT MARKETING
Direct
Marketing
PERSONAL SELLING
TRADE FAIRS AND EXHIBITS
EVENTS AND SPONSORSHIPS
Builds and
maintains
customer
relationships
Obtains
customer
database
information
Communicates
and interacts
with buyers
Provides
customer
service and
support
Educates or
informs
customers
A persuasive
advertising
medium
A sales tool
or an actual
sales vehicle
Obtains
customer
database
information
Communicates
and interacts
with buyers
Provides
customer
service and
support
Educates or
informs
customers
A persuasive
advertising
medium
A sales tool
or an actual
sales vehicle
INTERNET | SOCIAL MEDIA
The
Internet

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Integrated Marketing Communication

  • 1. AN INTRODUCTION TO INTEGRATED MARKETING COMMUNICATION VICTORIA CABALLERO MASTERS IN BUSINESS ADMINISTRATION HUMAN RESOURCE MANAGEMENT
  • 2. 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. PRODUCT PRICE PROMOTION PLACE PRODUCT PRICE PROMOTION 4Ps PLACE
  • 4. 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 PRODUCT PRICE PLACE PRODUCT PRICE PLACE PROMOTIONPROMOTION PEOPLEPEOPLE PROCESSPROCESS PHYSICAL EVIDENCEPHYSICAL EVIDENCE
  • 7. CONTEMPORARY IMC APPROACH Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Media Adver- tising
  • 9. GOAL OF IMC 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. INCREASE PROFIT MARGIN
  • 10. TRUST AMONG CONSUMERS BRAND DIFFERENTIATION ACCOUNTABILITY WITHIN A FIRM BENEFITS OF IMC IMC Level of Effectiveness is cutting through a message clutter than single strategies LEVEL OF EFFECTIVENESS IS CUTTING THROUGH A MESSAGE CLUTTER THAN SINGLE STRATEGIES
  • 11. IMPACT OF IMC Business-to-business (B2B) interactions Marketing Channel Communications Customer-Focused Communications Internally Directed Communication INTEGRATED MARKETING COMMUNICATION
  • 12. Traditional compensation Performance-based compensationTraditional compensation Performance-based compensation 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 Limited Internet availability Widespread Internet availability 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 THE CHANGING WORLD MC IMC
  • 13. “Talking At” Consumers Two-way Dialogue with Consumers Focus on Winning New Customers Focus on Building Long Term Relationships with Consumers Marketers Relied Primarily on Advertising and Promotions Marketers Use and Coordinate Many Different Forms of Communication With Consumers “Talking At” Consumers Two-way Dialogue with Consumers Focus on Winning New Customers Focus on Building Long Term Relationships with Consumers Marketers Relied Primarily on Advertising and Promotions Marketers Use and Coordinate Many Different Forms of Communication With Consumers THE CHANGING WORLD OLD WORLD NEW WORLD
  • 14. Mass Marketing Using Mass Communication Relationship Marketing Using Integrated Marketing Communication with a Focus on Interaction IMC – THE EVOLUTION TO
  • 15. WHAT TRENDS ARE DRIVING THE INTEGRATION Brand and Product Proliferation INTERNAL EXTERNAL Customization Decreasing Brand Loyalty Price Sensitivity More Demand, Less Trust Clutter Service Economics Expertise Corporate Missions Communication Technology Benefits to be Gained Rising Costs & Accountability
  • 16. IMC AND THE NEED FOR INTEGRATION Covers a number of different media and strategies TV, Radio, Direct, PR, Social Media etc. Integration provides synergy Selective combination of appropriate types of communication Meeting a common set of objectives for the brand. Integration over time with regard to customers
  • 17. INTEGRATION AND SYNERGY INTEGRATION SYNERGYINTEGRATION SYNERGY When brand messages are integrated… …they reinforce each other… …and create synergy
  • 18. THE IMPORTANCE OF INTEGRATION Integration begins with the way a company and its agencies organize the process for creating and delivering brand messages The Company All participants involved in creating and delivering brand messages must work together: Company Agencies The Media Channel Members, and MC Support Services
  • 19. Brand Manager communicated by advertising, sales promotion, direct response, packaging, customer service, sponsorship, etc. ONE- AND Two-Way Media radio, newspaper, TV, outdoor boards, events, and sponsorships, mail, phone, internet, packaging, etc. Customer Brand Experience Evaluating and Planning IMC PROCESS MODEL WEAK BRAND RELATIONSHIPS Lose Customers, Sales, and Brand Equity STRONG BRAND RELATIONSHIPS Increased Sales, Customers, and Brand Equity Brand Manager communicated by advertising, sales promotion, direct response, packaging, customer service, sponsorship, etc. ONE- AND Two-Way Media radio, newspaper, TV, outdoor boards, events, and sponsorships, mail, phone, internet, packaging, etc. Customer Brand Experience Evaluating and Planning
  • 20. THE KEY PLAYERS IN THE IMC PROCESS
  • 21. 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
  • 23. INTERNET AND SOCIAL MEDIA TRADE FAIRS AND EXHIBITIONS EVENTS AND SPONSORSHIPS TRADE FAIRS AND EXHIBITIONS PERSONAL SELLING DIRECT MARKETING PUBLIC RELATION | PUBLICITY SALES PROMOTION ADVERTISING ELEMENTS OF THE PROMOTIONAL MIX ADVERTISING SALES PROMOTION PUBLIC RELATION | PUBLICITY DIRECT MARKETING PERSONAL SELLING EVENTS AND SPONSORSHIPS INTERNET AND SOCIAL MEDIA
  • 24. IMC AUDIENCE CONTACT TOOLS Target Audience Broadcast media (TV/radio) Print media (newspapers, magazines) Public Relations/ publicity Internet/ interactive Direct marketing Sales Promotion Product placements (TV and movies) Events and sponsorship Word-of- mouth Point-of- purchase (displays, packaging) Personal selling Out-of-home media
  • 25. Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Business-to-Business Advertising Organizations National Advertising Retail/Local Advertising Professional Advertising Trade Advertising National Advertising Retail/Local Advertising Business-to-Business Advertising Professional Advertising CLASSIFICATIONS OF ADVERTISING Consumers
  • 26. Introduce new products Get existing customers to buy more Attract new customers Maintain sales in off season Increase retail inventories Tie in advertising & personal selling Enhance personal selling Combat competition Introduce new products Get existing customers to buy more Attract new customers Maintain sales in off season Increase retail inventories Tie in advertising & personal selling Enhance personal selling SALES PROMOTION Sales Promotion
  • 27. • Consumer- oriented • [For end-users] • Trade- oriented • [For resellers] SALES PROMOTION TOOLS EventsEvents Loyalty ProgramsLoyalty Programs Bonus PacksBonus Packs Refunds/RebatesRefunds/Rebates Contests/SweepstakesContests/Sweepstakes PremiumsPremiums SamplesSamples CouponsCoupons Coop Advertising Coop Advertising Trade Shows Trade Shows Training Programs Training Programs POP DisplaysPOP Displays Trade Allowances
  • 30. ADVERTISING VERSUS PUBLICITY Advertising Publicity Tentative Low Low/Unspecified Uncontrollable Great Lower Measurable Schedulable High/Specific High Specifiable Undetermined Higher Little Factor Control Credibility Reach Frequency Cost Flexibility Timing
  • 33. TRADE FAIRS AND EXHIBITS
  • 35. Builds and maintains customer relationships Obtains customer database information Communicates and interacts with buyers Provides customer service and support Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle Obtains customer database information Communicates and interacts with buyers Provides customer service and support Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle INTERNET | SOCIAL MEDIA The Internet