Unit I: Introduction to Integrated Marketing Communication
Unit I: Introduction to Integrated Marketing Communication
Evolution of IMC, Reasons for the growing importance of IMC, Role of IMC in branding,
Introduction to IMC tools, IMC planning process, Developing an IMC program, Brief on the
role of IMC in the marketing process
Introduction
• Traditional dominance of mass-media advertising in most companies for promotional function.
• Advertising agencies were the primary source of marketing communication guidance.
• Other promotional tools like sales promotion, direct marketing, and PR were auxiliary services used on
a per-project basis.
Shift Towards IMC
• During the 1980s, companies recognized the need for a more strategic integration of promotional tools.
• Sales promotion, direct marketing, and PR began challenging advertising's dominance.
• Integrated Marketing Communications (IMC) emerged as a concept to coordinate promotional elements
and marketing activities.
Ad Agencies and IMC
• Marketers started asking ad agencies to coordinate multiple promotional tools instead of relying solely
on media advertising.
• Some companies looked beyond traditional advertising agencies and engaged other specialists for
promotional plans.
• Large agencies responded by acquiring PR, sales promotion, and direct-marketing firms, promoting
themselves as IMC agencies.
Defining IMC
• The American Association of Advertising Agencies (the "4As") developed one of the first definitions of
IMC.
• 4As' definition focused on maximizing communication impact using all forms of promotion.
• Advocates argued for a broader perspective considering all customer interactions with a product or
service.
• IMC requires a "big-picture" approach, recognizing all marketing activities, not just promotion,
communicate with customers.
Objectives of IMC
• IMC seeks to project a consistent, unified image to the marketplace.
• It aims to deliver on the brand promise, strengthen customer relationships, and foster loyalty.
• A centralized messaging function ensures a common theme and positioning in all communications.
Case Study: Montblanc's IMC Approach
• Montblanc positions its watches as high-quality, high-status products using classic design, distinctive
brand name, and high pricing.
• The global campaign "The Spirit of Mountain Exploration" promotes the 1858 Geosphere watch
collection.
• Engages with younger consumers through print, digital, and social media platforms.
• Features renowned mountaineers and brand ambassador Hugh Jackman.
Adoption and Challenges of IMC
• Many companies adopt IMC to coordinate and manage marketing communication programs.
• Integration is considered an improvement over treating marketing and promotion elements separately.
• Some critics view IMC as merely tactical coordination, lacking a broader strategic perspective.
Title: Reasons for the Growing Importance of IMC
Adoption of IMC
• IMC approach gaining popularity among companies of all sizes and across consumer and business-to-
business markets.
• Strategic integration of communications functions over autonomous operation.
• Benefits of coordination include avoiding duplication, utilizing synergy, and enhancing marketing
communication programs.
• IMC considered an effective way to maximize return on marketing and promotion investments.
Adaptation to Changing Environment
• Shift in the media landscape impacting traditional mass media and the economic model.
• Rise of micromarketing due to audience fragmentation and changes in media consumption behavior.
• Faster internet connections and video streaming devices contributing to declining subscribers for cable
and satellite services.
• Internet becoming the leading advertising medium, offering targeted advertising opportunities.
Consumer Responsiveness and Ad Avoidance
• Consumers becoming less responsive to advertising messages.
• Younger generations, like millennials and gen Z, skeptical of advertising due to media-saturated world.
• Ad blocking software becoming more popular, leading to concerns for advertisers and online publishers.
• Marketers facing challenges in reaching and engaging audiences effectively.
Marketing Revolution and Changing Rules
• Companies adapting their marketing strategies and tactics to changing market dynamics.
• Marketers not tied to specific communication tools, but using the best methods to reach target audiences.
• Ad agencies repositioning themselves to offer integrated marketing communication services.
• Understanding digital marketing, social media, and mobile advertising is crucial for agencies' future
success.
Role of IMC in Branding
• Integrated Marketing Communications plays a major role in developing and sustaining brand identity
and equity.
• Well-known brands gain competitive advantage in today's competitive marketplace.
• Brand identity includes the name, logo, design, and associations in the consumer's mind.
• Brand equity is a valuable asset that allows brands to command premium prices and create strong
consumer connections.
• IMC activities shape brand identity and image through various consumer touchpoints.
• Consumers' perception of brands is changing, demanding more than just product quality.
• Building brand trust, engagement, and authenticity become critical in the relationship era of marketing.
THE PROMOTIONAL MIX: THE TOOLS FOR IMC
Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and
persuasion in order to sell goods and services or promote an idea. The promotional mix consists of various tools
used to accomplish an organization’s communication objectives.
1. Advertising:
• Definition: Any paid form of nonpersonal communication about an organization, product, service, or
idea by an identified sponsor.
• Characteristics: Mass media (TV, radio, magazines, newspapers) transmit the message to large groups,
with limited opportunity for immediate feedback.
• Importance: Cost-effective way to reach large consumer markets, build brand awareness, and create
brand equity.
• Example: Companies like Nike, Coca-Cola, and Apple heavily rely on advertising for their marketing
campaigns.
2. Direct Marketing:
• Definition: Direct communication with target customers to generate a response or transaction, including
database management, direct selling, telemarketing, and direct-response advertising.
• Characteristics: Allows for personalized communication and interaction with customers, often using
mobile devices and online platforms.
• Importance: Fast-growing sector in marketing due to changes in consumer behavior and the rise of mobile
devices.
• Example: Companies like Amazon, Tupperware, and L.L.Bean extensively use direct marketing to
connect with customers.
3. Digital/Internet Marketing:
• Definition: Marketing activities conducted through interactive, digital media via the Internet, including
advertising, social media, mobile marketing, and other online communication.
• Characteristics: Provides two-way communication with consumers, real-time interaction, and precise
measurement of campaign effectiveness.
• Importance: Revolutionized marketing and communication, enabling companies to reach vast online
audiences.
• Example: Google, Facebook, and Amazon dominate the digital advertising market and are crucial players
in digital marketing.
4. Sales Promotion:
• Definition: Marketing activities that provide extra value or incentives to the sales force, distributors, or
consumers to stimulate immediate sales.
• Characteristics: Includes consumer-oriented activities like coupons, sampling, and premiums, as well as
trade-oriented activities for wholesalers and retailers.
• Importance: Often constitutes a significant portion of the promotional budget, used to drive short-term
sales.
• Example: Consumer packaged-goods companies heavily use sales promotion to attract consumers to
their products.
5. Publicity/Public Relations:
• Definition: Nonpersonal communications regarding an organization, product, service, or idea not directly
paid for or run under identified sponsorship.
• Characteristics: Publicity involves news stories or editorials, while public relations includes systematic
planning and distribution of information to maintain a positive image.
• Importance: Provides credibility, low-cost communication, and can be a vital component of an
organization's image management.
• Example: Companies use press releases, sponsorships, and social media to enhance their public image.
Title: The IMC Planning Process
Introduction: The IMC (Integrated Marketing Communications) planning process involves developing an
effective communication program by combining various promotional mix elements. This process includes
planning, executing, evaluating, and controlling the use of promotional tools to communicate with target
audiences. The IMC plan is guided by a framework that outlines the organization's marketing strategy and
objectives.
Step 1: Review of the Marketing Plan
• Before developing a promotional plan, marketers review the marketing plan and objectives.
• The marketing plan includes a situation analysis, marketing objectives, marketing strategy,
implementation program, and monitoring and evaluation process.
Step 2: Promotional Program Situation Analysis
• The situation analysis focuses on factors influencing the development of a promotional strategy.
• It includes internal analysis (capabilities of the firm, past program success, internal strengths, and
weaknesses) and external analysis (customer characteristics, market segments, positioning strategies,
competitors, and market trends).
Step 3: Analysis of the Communication Process
• This stage examines how the company can effectively communicate with consumers in its target markets.
• Communication decisions include message development, media strategies, and communication goals and
objectives.
Step 4: Budget Determination
• The budget is determined based on the communication objectives and what needs to be done to achieve
them.
• The budget allocation may be based on available funds or a percentage of sales revenue.
Step 5: Developing the IMC Program
• This stage involves coordinating and integrating various promotional mix elements to achieve
communication goals.
• Decisions are made regarding the role, importance, and coordination of each element, and strategies are
developed for each one.
• Steps are taken to implement the promotional programs and evaluate performance.
Step 6: Monitoring, Evaluation, and Control
• The final stage involves monitoring and evaluating the effectiveness of the IMC program.
• Feedback is used to make necessary adjustments and inform future promotional planning.
• Analytics and digital tools are often used to measure the effectiveness of digital advertising and other
promotional campaigns.
