Introduction To Imc 1
Introduction To Imc 1
Introduction To Imc 1
Definitions
‘IMC recognises the added value of a comprehensive plan that evaluates the strategic roles of – Advertising, Direct
Response, Sales Promotion and Public Relations – and combine those principles to provide clarity, consistency and
maximum communications impact’ – American Association of Advertising Agencies.
‘IMC is a planning process designed to assure that all brand contacts received by a customer or prospect for a
product, service, or organization are relevant to that person and consistent over time.’ – The American Marketing
Association.
Features of IMC
Shift in Promotional Expenditure from Traditional Media to Non-Traditional Media: Traditional media is
more expensive and not as target oriented as the new tools of promotion. Consumers are less responsive to
traditional media advertising and they may even avoid it. The best way to communicate with target audience is to
integrate the brand with movies, shows or events.
Usage of Internet and Social Media to Communicate: In this age of Internet revolution, where at any moment
there are millions of consumers surfing on the Web, marketing communication is characterized by usage of social
media where there is regular and close interaction with consumers. Internet has given rise to development and
growth of social media which people use to share experiences, content, information and suggestions about products
they have used.
Growth of Database Marketing: Companies in the modern times have extensive databases which contain the
names, geographic profiles, demographic profiles, and psychographic profiles of customers. Information about
purchasing patterns, financial resources and media preferences of customers is also available in the data bases of
companies. This enables them to target customers through a variety of direct marketing methods – e-mails, direct
mail, and telemarketing and other direct response methods – rather than traditional tools. Customer Relationship
Management (CRM) programs involve regular and systematic tracking of customer’s preferences and behaviours
and modifying product or services to meet their needs.
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Market Place Power with Retail Industry: There has been a major shift in market place power from manufactures
to retailers. The small and middle sized local retailers have been replaced by regional, national and international
chain. These retailers demand promotional fees from the manufacturers, which often siphons money away from
advertising. Technologies such as check-out scanners provide retailers with all the information about the
effectiveness of manufacturer’s promotional programs. This had led to the marketers spending more on promotional
tools than before.
Greater Accountability asked from the Advertising Agencies: The producers are demanding greater
accountability from advertising agencies by asking them to give instant results. The marketers are also giving an
incentive to the advertising agencies for increasing their profitability. Organizations are looking beyond their
traditional advertising agencies and are turning to other marketing communication firms to work on development of
their integrated marketing programs. Agencies which specialize in internet marketing, direct marketing, media
planning, sales promotion and public relations are being used more now.
Role of IMC
The role of the integrated marketing communication mix is to help the organisation achieve the objectives of
marketing communications by:
Creating a Consistent Message – A consistent message will help consumers identify with the organisation and its
products without creating any confusion in their minds.
Clarity – Integrated communications will not conflict with each other when spread across various media as they are
integrated and come from the same source. This will bring clarity in the message being sent across to customers.
Building Loyalty – A consistent & clear message also works as an assurance to the consumers and builds greater
Brand Loyalty.
Meeting all the Marketing Objectives – Increase in brand loyalty and a larger customer base achieved through
integrated marketing communications will help the organisation to achieve its marketing objectives.
IMC and Marketing Program
A marketing program is a coordinated, thoughtfully designed set of activities that help businesses achieve their
marketing objectives. Marketing objectives are strategic sales goals that fit an organization’s. In order to build
strong customer relationships and maximize sales, a business needs to put every possible marketing tool to work for
it. Marketing is a broad field, encompassing elements as diverse as advertising, brand and logo design, sales calls,
web sites, brochures, packaging, shows, conferences and other events, and so on. The variety and complexity of
choices makes getting organized and focused hard.
Integrated marketing communication plan allows the business the leverage of the multiple components in the
marketing universe to work smarter to address its customer’s needs. An integrated marketing communications plan
or IMC plan incorporates market research, strategic planning, audience segmentation, marketing channel selection,
creative briefs and campaign messaging, budgeting, ROI analysis and a system for metrics and evaluation, to
achieve maximum impact of marketing objectives.
Concept and Evolution of IMC
Organizations often send out different messages through different media of communication. Communications often
comes from different departments of the organization. For example advertising messages are planned and
implemented by the advertising department, personal selling communications are developed by the sales
management department, and similarly Public relations communications are developed by the Public Relations
Office and so on. However, the consumers look at these as a part of a single message about the organization.
Conflicting messages from different sources create confusion in the consumers mind. This is where the need for
integrating all marketing communications comes into the picture.
The concept of integrated marketing communication (IMC) was introduced in the 1980s by Prof. Don E. Schultz
(Schultz and Schultz, p. 19) and has since changed the way communicators and marketers interact and conduct
business. The perspective towards marketing communication has changed from being specific variable oriented to
being more integrated. All promotional tools are given strategic importance at the same time. This was the
beginning of the phase where marketing communications planning, which recognized the added value of a
comprehensive promotional plan with all ingredients of promotion, was accepted as a norm of effective
communication with the customers. A combination of general advertising, direct selling, sales promotion and public
relations was being recommended to provide clarity, consistency and maximum communication impact.
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Schultz, referred to as the ‘father of integrated marketing communications’, was of the view that IMC deals with all
the sources of brand and company contact that a customer or prospect has with a product or service. It takes ‘Big
Picture’ approach to planning marketing and promotion programmes and coordinating the various communication
functions. It requires that a company develop a total marketing communication strategy that recognizes how all of a
firm’s marketing activities, not just promotion, communicate with its customers. IMC builds the most effective
platform to promote a product or service through its integrated usage of communication tools.
Before integrated marketing communication emerged, mass communication—the practice of relaying information to
large segments of the population through television, radio, and other media—dominated marketing. Marketing was
a one-way feed. Advertisers broadcasted their offerings and value propositions with little regard for the diverse
needs, tastes, and values of consumers. This “one size fits all” approach was costly and uninformative due to the
lack of tools for measuring results in terms of sales. As methods for collecting and analyzing consumer data through
single-source technology such as store scanners improved, marketers were increasingly able to correlate
promotional activities with consumer purchasing patterns.
Previously, people in the Public Relations (PR) department of any organization wrote press releases and distributed
them. Now, PR teams frame the message strategy and analyze how a message will be construed. The terms, “public
relations” and “strategic communications,” are now frequently interchanged. In many organizations today, public
relations, corporate communications, advertising, marketing, promotions and publicity function collaboratively as
part of “the IMC mix.” What this means for organizations is consistency and unification of messaging, brand
promotion and audience engagement.
IMC ensures that all forms of communications and messages from an organization are carefully linked together. At
its most basic level IMC means integrating all the promotional tools, so that they work together in harmony.
Promotion is a single term used to group together all communication activities intended to increase the sales of a
product. The promotional mix include: Advertising, Sales Promotion, Public Relations & Publicity, Direct
Marketing & Personal Selling. All of these communications tools work better if they work together in harmony
rather than in isolation. Their sum is greater than their parts – providing they speak consistently with one voice all
the time, every time.
IMC is an approach used by organizations to brand and coordinate their communication efforts. It has a centralized
messaging function which focuses on a common goal and positioning. It is an approach to creating a unified and
seamless brand experience for consumers across channels and across different aspects of the marketing mix. The
brand’s core image and messaging are reinforced as each marketing communication channel works together as parts
of a unified whole rather than in isolation.
Today, corporate marketing budgets are allocated toward trade promotions, consumer promotions, branding, public
relations, and advertising. The allocation of communication budgets away from mass media and traditional
advertising has raised the importance of IMC for effective marketing. Now, marketing is viewed more as a two-way
conversation between marketers and consumers. This transition in the advertising and media industries can be
summarized by the following market trends:
a shift from mass media advertising to multiple forms of communication
the growing popularity of more specialized (niche) media, which considers individualized patterns of
consumption and increased segmentation of consumer tastes and preferences
the move from a manufacturer-dominated market to a retailer-dominated, consumer-controlled market
the growing use of data-based marketing as opposed to general-focus advertising and marketing
greater business accountability, particularly in advertising
performance-based compensation within organizations, which helps increase sales and benefits in companies
unlimited Internet access and greater online availability of goods and services
a larger focus on developing marketing communications activities that produce value for target audiences
while increasing benefits and reducing costs
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Factors Affecting the Growth of IMC
1. Cluttered Media Environment: Due to more number of commercial messages, media environment is now more
cluttered. This leaves lesser scope for any single message to have some significant effect on prospective customers.
Marketers are therefore increasingly adopting several other non-advertising routes to reach their customers.
2. Fragmentation of Media: More number of television channels, more AM/FM channels on radio, more
magazines, and more newspapers with more supplementary editions is what is meant by media fragmentation. The
result of fragmented media is lesser scope for having customer attention. This in turn requires more focus in
communication in terms of targeted audience.
3. Media Cost: The absolute media cost has increased manifold over the last few years particularly in the case of
television. Due to its higher cost, marketers many times use other less costly promotion tools to justify their
promotion spend.
4. Technological Advancements: With the advancements in computers and software technology, data management
has become greatly possible and even much simpler. Companies either collect the data themselves or get the job
done from outside sources. With good data management companies can better segment their audiences. So there is
now the possibility of more focus in the selection of target audience. In all, marketers achieve more effectiveness in
reaching their target markets.
5. Client Expertises: Clients are now better equipped with the understanding of various nuances of communication
planning. They expect better returns on their investment and accountability from the agencies they hire for
advertising purpose. Many companies are even doing away with commission based remuneration and instead the
remuneration is based on some objective measure such as sales, or market share as an incentive. Agencies also, now
consider a variety of promotion tools as a less expensive alternative to mass-media advertising.
6. Increasing Number of ‘Me-too-Products’: Manufacturers are now better able to offer the products which are
similar to the existing successful competitive products. As products do not have many differences, communication
becomes a real challenge for the marketer. Marketing communication needs to create a strong pull factor for the
product either through building a strong brand image or an intense commercial message delivery to gain enough
attention and sales over the short period of time.
7. Increasing Power of Retailers: The trend towards organized retailing is on rise. There are now large retailers
having retail chains. The sheer size and the capacity to address large number of needs have given more power to
large retailers and they are using this to have better negotiations with the manufactures. They seek better services
and also better allowances from the manufacturer, which usually has an adverse effect on advertising, spend.
8. Increasing Global Marketing: Global marketing adds intensity to the competition for every company whether or
not selling in other country. Companies, therefore, seek more efficiency in their operations including
communication.
9. Increasing Pressure on Bottom Line: Companies seek more financial accountability in various marketing
initiatives. The focus therefore shifts to short- term rather than long-term financial gains. This has its direct impact
on communication planning involving the greater use of various promotion tools and not just advertising.
10. Rapid Growth of Internet: Internet, an interactive medium, is assuming greater relevance in companies’
promotion planning. The digital media offer various advantages like precision targeting, measurable ROI, low
entry-level fee and global reach.
The IMC process generally begins with an integrated marketing communications plan that describes the different
types of marketing, advertising, and sales tools that will be used during campaigns. These are largely promotional
tools, which include everything from search engine optimization (SEO) tactics and banner advertisements to
webinars and blogs. Traditional marketing communication elements such as newspapers, billboards, and magazines
may also be used to inform and persuade consumers. Marketers must also decide on the appropriate combination of
traditional and digital communications for their target audience to build a strong brand-consumer relationship.
Regardless of the brand’s promotional mix, it is important that marketers ensure their messaging is consistent and
credible across all communication channels.
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Integrated Marketing Communications uses six tools to reach its target markets and to build its brand equity.
1. Advertising: Advertising is a paid medium, as a company needs to pay for the advertising space in the
newspaper or magazine or it needs to buy time on the TV channels. Advertising is non-personal in nature, as it uses
mass media like TV, Print and Radio to transmit the message to large number of people at the same time. Again the
payment is made by some identified sponsor.
Advertising works best in the case of mass consumer products. The message can be transmitted to a huge number of
people at the same point of time. As it reaches more people, it also becomes a very cost effective medium for the
advertiser. Advertising is also used to create brand images. By attracting consumers, it can help generate sales.
Advertising includes Print Advertisement, Television Commercials (TVC), Directories, Billboards, Hoardings,
Banners, Posters, Brochure & Booklets, Audio Visual Material, Display Signs and POP Displays.
The objective of any advertising campaign differs from company to company. Most of the FMCG products like
Soaps, Toothpaste, and Shampoo are meant for consumer’s immediate response. But in the case of cars, the
objective of the advertising campaign is to achieve both the goals of influencing the customers to buy and have a
positive image around them.
2. Sales Promotion: Sales promotion helps to induce the sales on the consumer side as well as the marketing
channel or trade side. Sales promotion is a variety of short term incentives to encourage trial or purchase of a
product or service. Consumer-oriented sales promotion efforts are targeted towards the ultimate user, while Trade-
oriented sales promotion is targeted towards marketing channels like Distributors, Wholesalers and Retailers. Sales
promotional activities are also targeted towards the sales force in order to motivate them to sell more. Most of the
FMCG and Consumer Durable and Automobile companies go for consumer as well as trade promotion offers.
While pharmaceutical companies give more emphasis on trade related sales promotion schemes towards Chemist
Shops and Doctors. The sales promotion schemes should be used carefully by the company, as it has a negative
impact on the brand image.
3. Public Relations: Public relations (PR) is gaining importance day by day as a communication tool in the
promotional mix. In the early 1900s, Edward Louis Bernays, the founding father of modern public relations, along
with Ivy Lee has defined Public Relations as ‘the Management function which evaluates public attitudes, identifies
the policies and procedures of an individual or organisation with the public interest and executes a programme of
action to earn public understanding and acceptance.’
Public Relations is a variety of programmes systematically designed and distributed to promote or protect a
company’s image or products. PR tools consist of Press Kits, Seminars, Speeches, Publications, Lobbying,
Company Magazine, Events, Sponsorships, Donations and Annual Reports. Public Relations always generate a
‘buzz’ around a new product or service. Generally the consumers are less sceptical toward the PR exercises. It also
involves low cost, as there is no direct expenditure to buy the time or space in a channel or a publication.
Sometimes, Public Relations and Publicity are used intermittingly. But PR has a broader objective than the
publicity. Publicity refers to non-personal communications regarding an organisation, or product not directly paid
for or run under identified sponsorship. It includes News story, Editorial or announcement about an organisation
and/or its product or services through news releases, press conferences, feature article, photos, films and videos. But
there is a difference. Publicity is not always under the control of the organisation and is sometimes unfavourable.
The public relations and publicity space has also changed with the technological advancements in Internet and
Mobile. Now there are more people, who are blogging, besides the celebrities and experts. Anybody can voice their
opinion through blogs. Now you can also find online communities for various products and services on Facebook or
Twitter. A company needs to utilize these developments in technology to become efficient and effective marketer.
4. Direct Marketing: With the success of Eureka Forbes, Amway, Dell, Tupperware and Avon, direct marketing is
becoming popular for many companies. Intermediaries are not used in direct marketing. Companies communicate
directly with their target customers to generate a response or transaction. Direct marketing is much more than direct
mail and mail-order catalogues. It involves a variety of activities, including database management, direct selling,
telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media.
With more importance on touch and feel by the Indian consumers, direct marketing companies are also taking the
route to open their representative stores to build reliability about their products. On these lines, Dell has opened its
exclusive stores to offer the advantages of Dell’s direct model with the additional benefit of retail availability to
browse touch and feel the product.
Direct marketing companies regularly advertise their products through direct response ads with mass media vehicles
like Newspaper, Magazines, Radio and Television.
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5. Personal Selling: Personal selling involves two way communications, as the seller gets into interaction with the
buyer. Here the seller or sales representative from the company makes a presentation and answers queries of the
buyers. If the buyer is convinced, the sales representative gets the order for the product. As it gives an immediate
feedback, the personal selling is a powerful tool in the promotional mix. It happens through sales presentation at
home or offices, in Sales meetings and through Fairs and Trade Shows. The only drawback is that it’s an expensive
tool to promote a product, as you need to manage a sales force to get the desired results. But it is also the most
flexible way of marketing communication with great results.
6. Digital Marketing: Since the beginning of the 21st century, the consumer behaviour has changed a lot with the
proliferation of Internet. The advancement in technology has led to create a separate space of digital marketing as
the promotional medium among the other tools available under IMC. In other promotional tools, the communication
is one sided. In digital marketing, the consumer can interact and can give feedback or response to the company. It
has become almost mandatory for every company now to promote itself through a website on the internet. Internet
is a unique promotional tool, as it can also execute all the elements of the promotional mix. Internet itself can
promote a product. It can also be used as a medium for advertising. Internet also acts as a direct marketing tool by
having a consumer response form on the web page or through a link. Internet also helps in sales promotion efforts.
Whenever a company likes to give a short term incentive to the consumer, internet also becomes one of the ways to
reach consumers. Many companies also send their offers to the consumer mail boxes. Internet also helps in Public
relations and publicity exercises. Many companies and PR firms use Internet to build a public relations campaign.
Now with the increased use of community websites like Facebook, Twitter etc, consumers are connected through
the Internet. Besides internet marketing, digital marketing also include mobile marketing through SMS and MMS,
Social Media marketing using Facebook, Twitter etc., Search Engine marketing or any other form of digital media.
Other Emerging Tools of IMC
Apart from the above tools, several new forms have taken shape in the market these days and they take care of
everything like Road Shows, Social Marketing sites, Mobile Marketing, etc.
Road Shows: Road Shows is a BTL (Below the line) activity that brands use to move closer to the masses and also
to their target audience. In a road show the customer involves with the brand and its excitement and brand managers
use it mostly in the launch of new brands. The road shows are an excellent platform to involve, engage and keep
customers interested in a brand.
Social Media: Social Media is having a huge fan following with many youngsters across the World. Facebook,
Twitter, etc., are adding users in millions every day. The social media has the power of changing governments,
influencing people, bonding relationships and networking business professionals. The brands are carefully weaving
their own social media networks like Harley Davidson’s HOG’s Club, AXE’s Academy from AXE, Gang of Girls
from Sunsilk, etc. The advantage of social media is to target the brand for a selective audience with high impact and
sometimes which can also result in a sale of a product.
Mobile Marketing: Emerging markets like India are also creating new modes of communication to their
population. The size of the mobile market is estimated to be 700 million and still counting. Short Message Service
(SMS), Internet and a host of other features like paying bills on mobiles are changing the way people are using
mobile communications beyond making calls.
Benefits of Integrated Marketing Communications
Consumers are often overwhelmed by the vast number of advertisements flooding both online and offline
communication channels. Marketing messages run the risk of being overlooked and ignored if they are not relevant
to consumers’ needs and wants. One of the major benefits of integrated marketing communications is that marketers
can clearly and effectively communicate their brand’s story and messaging across several communication channels
to create brand awareness. IMC is also more cost-effective than mass media since consumers are likely to interact
with brands across various forums and digital interfaces. As consumers spend more time on the internet, marketers
seek to weave together multiple exposures to their brands using different touch points. Companies can then view the
performance of their communication tactics as a whole instead of as fragmented pieces.
Another benefit of IMC is that it creates a competitive advantage for companies looking to boost their sales and
profits. This is especially useful for small/ mid-sized firms with limited staff and budgets. IMC immerses customers
in communications and helps them move through the various stages of the buying process. The organization
simultaneously consolidates its image, develops a dialogue, and nurtures its relationship with customers throughout
the exchange. IMC can be instrumental in creating a seamless purchasing experience that spurs customers to
become loyal, lifelong customers.
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IMC Planning Process
Integrated marketing communications management involves various decision areas such as:
which promotional tools to use and how to combine them effectively
determining the size of and distributing the advertising and promotional budget
determining the influence of various factors on the promotional mix including the type of
product, target market, decision process of the buyer, stage of the product lifecycle, and
channels of distribution
This process is guided by the development of the integrated marketing communications plan which
provides the framework for developing, implementing, and controlling an organization’s IMC program and
activities. The steps in the Integrated Marketing Communications Planning Model include:
1. Review of the Marketing Plan – A marketing plan is a document that describes the overall marketing
strategy and programs developed for an organization, a product/service line, or an individual brand.
Reviewing the marketing plan includes: Detailed situation analysis, Specific marketing objectives,
Marketing strategy and program, Program for implementing the strategy, & Process for monitoring &
evaluating the performance.
2. Promotional Program Situation Analysis – The next important step is to carry out the promotional
program situation analysis. Both Internal Analysis and External Analysis are carried out.
3. Analysis of the Communications Process – Determining how the company can effectively
communicate with customers in the target market. An important part of this stage of the IMC planning
process is developing communication objectives which refer to what the firm seeks to accomplish with its
promotional program.
4. Budget Determination – Two basic issues must be addressed with regard to the IMC budget:
How much money will be spent on marketing communication
How the money will be allocated across the various IMC tools
5. Developing the Integrated Marketing Communications Program – The most involved and detailed
part of the promotional planning process occurs at this stage as decisions have to be made regarding the
role and importance of each IMC tool and their coordination with one another. Each IMC tool has its own
set of objectives, budget, message, and media strategy. These include:
Advertising message and media strategy and tactics
Direct marketing message and media strategy and tactics
Interactive/Internet Marketing message and media strategy and tactics
Sales promotion message and media strategy and tactics
Public relations/publicity strategy and tactics
Personal selling – sales strategy and tactics
6. Integrating and Implementing Marketing Communications Strategies – The various IMC tools
must be integrated and steps must be taken to implement them. Most large companies hire external
agencies to plan and develop their creative messages and media strategies as well as to implement them.
7. Monitoring, Evaluation, and Control – The final stage of the IMC planning process involve
monitoring, evaluating and controlling the promotional program. At this stage, the marketer should be
gathering feedback concerning how well the IMC program is working and whether it is meeting its
objectives. It is important to note that information regarding the results achieved by the IMC program is
used in subsequent IMC planning and strategy development.
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Steps to Developing an Integrated Marketing Communications Strategy
IMC is a strategic, collaborative, and promotional marketing function where a targeted audience receives consistent
and persuasive brand messaging through various marketing channels in an integrated way to move buyer's through
the decision making process. At the most basic level, integrated marketing communications helps to ensure that
marketers are using all of the channels available to them to amplify a marketing campaign and/or brand messaging
to reach their target audience. These four steps help create and implement a cohesive and integrated marketing
communications strategy.
1. Identify Different Marketing Communication Methods
As part of the integrated marketing strategy, it's imperative to determine the various marketing communication
methods one wants to leverage as part of the plan. Consider the target audience and how they like to receive
information, gather facts, and perform research on the problem they are trying to solve. From there, determine what
channels are most relevant for your specific campaign. Some examples include:
Content Marketing: Make your content available online through blog content, video marketing, premium
content, pop-ups, and dynamic website content to help your potential buyers connect and learn more about you.
Email Marketing: Use email to re-engage your existing audience through unique and helpful content. Often,
the most impactful marketing efforts come from delivering the right content at the right time to the existing
subscribers.
Social Media Marketing: When combined with email marketing and content marketing, digital marketing
campaigns utilizing social media can truly bring exceptional results by connecting with the target audience on a
platform they are already spending time on regularly.
AIDA Model
The AIDA Model, which stands for Attention, Interest, Desire, and Action model, is an advertising effect model
that identifies the stages that an individual goes through during the process of purchasing a product or service. The
AIDA model is commonly used in digital marketing, sales strategies, and public relations campaigns. The steps
involved in an AIDA model are:
Attention: The first step in marketing or advertising is to consider how to attract the attention of consumers.
The goal is to make consumers aware that a product or service exists. Don’t assume that everyone is already
aware of your product.
Interest: Once the consumer is aware that the product or service exists, the business must work on
increasing the potential customer’s interest level. Make sure that advertising information is broken up and
easy to read, with interesting subheadings and illustrations. Focus on what is most relevant for your target
market in relation to your product or service, and on conveying only the most important message you want
to communicate to consumers.
Desire: After the consumer is interested in the product/ service, then the goal is to make consumers desire it,
moving their mindset from “I like it” to “I want it.” Provide interesting information on the product, along
with the benefits of buying it – benefits that ideally make consumers want the product more and more.
Convey to the audience the value of the product or service, and why they need it in their life.
Action: The ultimate goal is to drive the receiver of the marketing campaign to initiate action and purchase
the product/ service. The advertisement should end with a call to action – a statement that is designed to get
an immediate response from the consumer. Good advertising should elicit a sense of urgency that motivates
consumers to take action.
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Hierarchy-of-Effects Model
The hierarchy-of-effects theory is a model of how advertising influences a consumer's decision to purchase or not
purchase a product or service. The hierarchy represents the progression of learning and decision-making consumer
experiences as a result of advertising. A hierarchy-of-effects model is used to set up a structured series of
advertising message objectives for a particular product, to build upon each successive objective until a sale is
ultimately made. The objectives of a campaign are (in order of delivery): awareness, knowledge, liking, preference,
conviction, and purchase.
The hierarchy-of-effects theory is an advanced advertising strategy in that it approaches the sale of a good
through well-developed, persuasive advertising messages designed to build brand awareness over time. While an
immediate purchase would be preferred, companies using this strategy expect consumers to need a longer decision-
making process. The goal of advertisers is to guide a potential customer through all six stages of the hierarchy.
The behaviours associated with the hierarchy-of-effects theory can be boiled down to "think," "feel," and "do," or
cognitive, affective and conative behaviours. The hierarchy-of-effects model was created by Robert J. Lavidge and
Gary A. Steiner in their 1961 article A Model for Predictive Measurements of Advertising Effectiveness.
Hierarchy-Of-Effects Theory Stages
The awareness and knowledge (or cognitive) stages are when a consumer is informed about a product or
service, and how they process the information they have been given. For advertisers, it is essential to give
key brand information in this stage in a useful and easily understood fashion that compels the prospective
customer to learn more and make a connection with a product.
The liking, preference, and conviction (or affective) stages are when customers form feelings about a brand,
Advertisers should attempt to appeal to a consumer's values, emotions, self-esteem, or lifestyle. Advertisers
should attempt to convince potential customers that they need a product or service, possibly by offering a
test drive or sample item.
The purchase (or conative) stage focuses on action. It is when an advertiser attempts to compel a potential
customer to act on the information they have learned and emotional connection they have formed with a
brand by completing a purchase. Advertisers should also build a level of trust with them by focusing on the
quality, usefulness, and popularity of a product or service.
2. COMPREHENSION
Awareness on its own is not sufficient to stimulate a purchase. Information and understanding about the product and the
organisation are essential. This can be achieved by providing information about the brand features.
The objective is to provide all the information about the product.
3. CONVICTION
Conviction is the next step where the customer evaluates different products and plans to buy the product. At this stage, a
sense of conviction is established, and by creating interests and preferences, customers are convinced that a certain product
should be tried at the next purchase.
At this step, the job of the advertising activity is to mould the audience’s beliefs and persuade them to buy it. This is often
achieved through messages that convey the superiority of the products over the others by flaunting the rewards or
incentives for using the product.
The objective is to create a positive mental disposition to buy a product.
4. ACTION
This is the final step which involves the final purchase of the product.
The objective is to motivate the customer to buy the product.
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EXAMPLE OF DAGMAR APPROACH
Let’s suppose that an ABC company wants to evaluate the effectiveness of marketing campaign for its latest product
launched. The company starts evaluating the commercial that is designed to persuade potential consumers through
the four stages of the buying process:
1. In the AWARENESS stage, company ABC spreads awareness among the consumers about its new product
launched in the market.
2. In the COMPREHENSION stage, company ABC portrays to its consumers the features and distinctiveness of
the new product and reminds the consumers of the company ABC’s logo and brand name.
3. In the CONVICTION stage, company ABC attaches the consumer emotionally to the new product so that the
consumer establishes an emotional preference for the company ABC’s brand.
4. In the ACTION stage, company ABC makes sales.
Company ABC then evaluates the success of the marketing effort using DAGMAR. The company measures that
how fast the customer processed through the four stages of the purchase and how many sales were generated. In
cases where the customer is distracted and deviated from buying the product, and the company doesn’t meet sales
goals, the company needs to change its ad campaign.
TARGET AUDIENCE: DAGMAR claims the target audience is well defined. A group of potential customers,
who have the highest likelihood of purchasing the product, is the target market. Identifying the target market
includes the process of demographic, geographic, and psychological segmentation. Target markets can be
segmented into Primary and secondary groups.
Primary markets are the main target audience, on whom the marketing efforts are mainly focused.
Secondary markets are the target audience on whom the marketing efforts will focus after the primary market
goals are achieved.
CONCRETE AND MEASURABLE: The objective of communication should be a precise and clear statement of
whatever message the advertiser wants to communicate to the target audience. The specification must include all the
details and descriptions of the measurement procedure.
SPECIFIED TIMEFRAME AND BENCHMARKS: A good objective has a specified time frame, during which
the objective is to be achieved. Understanding the specifications enables advertisers to define goals that will yield
the best result. Setting a specific timeframe assures effective evaluation of results. The timeframe should be realistic
to prohibit skewed results from static marketing. Creating the benchmark is essential for an appropriate
measurement of the effectiveness of the advertisement.
WRITTEN GOAL: The goal should be committed on a paper. When the goals are clearly written, basic shortfalls
and flaws are exposed, it becomes eventually easy to determine whether the goal contains the crucial aspects of the
DAGMAR approach.
Values associated with setting objectives for IMC is to understand where the company hopes to go with its
marketing program, communication, planning and decision-making, measurement and evaluation of results, and
having a communications perspective approach. Marketers can improve their communications program by
establishing specific objectives because their approach will be more strategic and organized. Without specific
objectives, it is extremely difficult to determine what the firm’s advertising and promotion efforts accomplished,
which is extremely necessary.
MM303 IMC/ Promotional Strategy 01. Introduction to IMC Page 14 of 14
References
https://www.economicsdiscussion.net/marketing-management/integrated-marketing-communication/32091
https://courses.lumenlearning.com/boundless-marketing/chapter/introduction-to-integrated-marketing-
communications/
https://online.purdue.edu/blog/communication/what-is-integrated-marketing-communication-imc
Schultz, D. and Schultz, H. (2003). IMC, the next generation: Five steps for delivering value and measuring returns
using marketing communication. USA: McGraw-Hill.
https://multimediamarketing.com/mkc/marketingcommunications/
https://www.prismglobalmarketing.com/blog/4-steps-to-developing-an-integrated-marketing-communications-
strategy
https://www.learnistan.com/imc-planning-process/
https://corporatefinanceinstitute.com/resources/knowledge/other/aida-model-marketing/
https://www.investopedia.com/terms/h/hierarchy-of-effects-theory.asp
https://courses.lumenlearning.com/boundless-marketing/chapter/integrated-marketing-communications/
https://www.assignmentpoint.com/business/marketing-business/how-do-we-determine-the-promotional-
objectives.html
https://yourbusiness.azcentral.com/difference-between-communications-objectives-sales-objectives-3766.html
https://studiousguy.com/dagmar-approach/
https://www.coursehero.com/file/pcf7vq/2-Some-of-the-problems-associated-with-setting-communications-
objectives-are/