Integrated Marketing Communication

1. Managing Integrated
Marketing
Communication
A Lecture by Perkha Khan

2. Promotion
Communication link between buyers
and sellers.
Function of informing, convincing,
and influencing a consumer’s
purchase decision.

3. Marketing Communication
Message that deal with buyer-
seller relationship.

4. Integrated Marketing Communication
(IMC)
Coordination of all promotional
activities – media advertising, direct
mail, personal selling, sales promotion,
public relations, and sponsorships – to
produce a unified, customer-
focused promotional message.

5. Integrated Marketing
Communication is a way of looking
at the whole marketing process
from the viewpoint of the receiver
Philip Kotler

6. The Communication
Process

7. Communication Process
Companies should not ask only
 “How can we reach our customers?”
but also
 “How can our customer reach us?”
To communicate effectively, marketers need to
understand the fundamental elements of effective
communication.

8. Promotion Mix
Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Direct
Marketing
Common Communication Platforms

9. • Print & broadcast ads
• Packaging – outer
• Packaging inserts
• Motion Pictures
• Brochures & booklets
• Posters & leaflets
• Directories
• Reprints of ads
• Billboards
• Display signs
• Point-of-purchase display
• Audiovisual material
• Symbols and logos
• Videotapes
Advertising

10. • Contests, games,
sweepstakes, lotteries
• Premium and gifts
• Sampling
• Fairs and trade shows
• Exhibits
• Demonstration
• Coupons
• Rebates
• Low-interest financing
• Entertainment
• Trade-in allowance
• Continuity programs
Sales
Promotion

11. • Press kits
• Speeches
• Seminars
• Annual Reports
• Charitable donations
• Sponsorships
• Publications
• Community Relations
• Lobbying
• Identity Media
• Company Magazine
• Events
Public
Relations

12. • Sales Presentations
• Sales meetings
• Incentive Program
• Samples
• Fair &Trade shows
Personal
Selling

13. • Catalogs
• Mailing
• Telemarketing
• Electronic Shopping
• TV Shopping
• Fax mail
• E-mail
• Voice mail
Direct
Marketing

14. Elements in the Communication
Process
SENDER Encoding Decoding RECEIVER
ResponseFeedback
Media
Message
Noise

15. The sender’s task is to get his or her
message through to the receiver.
The target audience may not
receive the intended message for
any of the three reasons

16. 1. Selective Attention
people are bombarded by;
1600 commercial messages a day,
of which 80 are consciously noticed,
& about 12 provokes some reaction.
Selective attention explains why ads with bold headlines
promising something, such as “How to make a
Million”, have a high likelihood of grabbing attention.

17. 2. Selective Distortion
Receivers will hear what fits into their beliefs
system. As a result, receiver often add things to
the message that are not there and do not notice
other things that are there in actual.
The communicators’ task is to strive for
simplicity, clarity, interest, and repetition to
get the main points across.

18. 3. Selective Retention
People will retain in long-term memory only a small fraction
of the messages that reach them.
If the receiver’s initial attitude toward the object is
positive and he or she rehearses support arguments, the
message is likely to be accepted and have high recall.
If the initial attitude is negative and the person rehearses
counterarguments, the message is likely to be rejected
but to stay in long-term memory.

19. Developing Effective
Communication

20. Identify the target audience
Determine the communication objectives
Design the message
Select the communication channels
Establish the total communication budget
Decide on the communication mix
Measure the communication results
Manage the integrated marketing communication process
Must do’s for the marketer communicator

21. A. Identifying theTarget
Audience

22. The process must start with a
clear target audience in mind:
Potential buyers of the company’s products, Current users,
Deciders, or Influencers; individuals, groups, particular publics
or the general public.
The target audience is a critical influence on the communicator’s
decisions on what to say, how to say it, when to say it,
where to say it, and whom to say it.

23. Image Analysis
A major part of audience analysis is assessing
the current image of the company, its products,
& its competitors.
Image – is the set of believes, ideas, and
impressions a person holds regarding an
object.

24. The first step is to measure the target
audience’s knowledge of the object, using the
familiarity scale:
Know Very
Well
Know a Fair
Amount
Know a
Little Bit
Heard of
Only
Never
Heard of

25. Respondents who are familiar with the
product can be asked how they feel towards
it, using the favorability scale:
Very
Favorable
Somewhat
Favorable
Indifferent
Somewhat
Unfavorable
Very
Unfavorable

26. B A
DC
Favorable
Attitude
Unfavorable
Attitude
High
Familiarity
Low
Familiarity

27. Hush Puppies brand of casual shoes lost its
fashionable image.Then a fashion designer
used Hush Puppies dyed in bright colors.The
Hush Puppies image went from stodgy to
avant-garde. And once the “new” Hush Puppies
were in demand, sales went from under
30,000 pairs in 1994 to 1.7 million pairs in
1996.
Facts corner….

28. B. Determining the
Communication Objectives

29. • The communicator’s task is to build awareness,
perhaps just name recognition, with simple messages
repeating the product name.
1. Awareness
• Goes beyond the awareness to leaning about the
product features.
2. Knowledge
• If target members know the product, how to they feel
about it? If the audience looks unfavorably, the
communicator has to find out why. If the unfavorable
view is based on real problems, a communication
campaign alone cannot do the job.
3. Liking

30. • The communicator must try to build consumer preference by
promoting quality, value, performance, and other features.
The communicator can check the campaign’s success by
measuring audience preference after the campaign
4. Preference
• The communicator’s job is to build confidence among the
interested target market
5. Conviction
• Some members of the target audience might have conviction
but not quite get around to making the purchase.The
communicator must lead these consumers to take the final
step, perhaps by offering the product at a low price, offering a
premium, or letting consumers try it out.
6. Purchase

31. C. Designing the Message

32. 1. Message Content
In determining message content,
management searches for an appeal,
theme, idea, or unique selling
proposition.
there are 3 types of appeals: rational,
emotional, and moral.

33. • They claim product will produce
certain benefit – Nokia batteries,
BMW strong body
Rational
Appeal -
engages self-
interest
• Attempt to stir up negative or
positive emotions that will motivate
purchase – Dalda cooking oil, donate
an eye
Emotional
Appeals
• They are directed to the audience’s
sense of what is right and proper –
AIDS, Cancer
Moral Appeals

34. 2. Message Structure
Message Structure is made in a way, that hit
the right target audience –
U-fone for everybody,
Mustang for young people,
Indigo for Business Personnel

35. 3. Message Format
The communicator must develop a strong
message format.
In print ad, the communicator has to decide
on headline, copy, graphic, color.
In radio ad, communicator has to choose
words, voice qualities and vocalizations.

36. 4. Message Source
Message delivered by attractive or popular
sources achieved higher attention and recall.
Message delivered by highly credible sources are
more persuasive.
Pharmaceutical companies want doctors to
testify about product benefits because doctors have
high credibility.

37. What factors underline source credibility?
The 3 most often identified factors are;
 Expertise – is the specialized knowledge the
communicator possesses to back the claim – doctors,
engineers, experts of field
 Trustworthy – is related to how objectives and
honest the source is perceived to be – loyal
customers
 Likability – describes the source’s attractiveness –
celebrity Shahrukh Khan & Reema for Pepsi, Shan
for Indigo

38. D. Selecting
Communication Channels

39. 1. Personal Communication Channel
Personal communication channel involve 2
or more persons communicating directly with
each other face-to-face, person to audience,
over the telephone, or through e-mail.
Word-of-Mouth is the most powerful tool in
this type of communication

40. Personal influence carries especially great weight in
two situations.
One is with products that are expensive, risky, or
purchased infrequently.
The other situation is where the product suggests
something about the user’s status or taste.

41. 2. Non-Personal Communication
Channels
Non-personal channels include
 Media
 Atmosphere
 Events

42. Media – consists of print media (newspaper, magazines, direct
mail), broadcast media (radio, television), electronic media
(audiotape, videotape, videodisk, CDs, DVDs,WebPages), and display
media (billboards, signs, posters)
Atmosphere – are ‘packaged environments’ – a five star
hotel will use elegant chandeliers, marble columns & other tangible
signs of luxury.
Events – are occurrences deigned to communicate particularly
messages to target audiences, arrange news conferences, grand
openings, and sports sponsorships to achieve specific
communication effects with a target audience

43. E. Establishing theTotal
Marketing Communication
Budget

44. 1. Affordable Method
One executive said: “Why, it’s simple. First, I go upstairs to the
controller and ask how much they can afford to give us this year.
He says a million and a half. Later, the boss comes to me and asks
how much we should spend and I say, ‘ Oh, about a million and a
half.’”
The affordable method of setting budgets completely
ignores the role of promotion as an investment and the
immediate impact of promotion on sales volume. It lead to the
uncertain annual budget, which makes long-range
planning difficult.

45. 2. Percentage-of-Sales Method
Many companies set promotion expenditure at a
specified percentage of sales or of the sales price.
A railroad company executive said:
“We set our appropriation for each year on December 1 of
the preceding year. On that date we add our passenger
revenue for the next month and than take 2 percent of the
total for our advertising appropriation for the new year.

46. 3. Competitive-Parity Method
Some companies set their promotion budget to
achieve share-of-voice parity with competitors.
Two arguments are made in support of the
competitive-parity method. One is that
competitors’ expenditures represents the
collective wisdom of the industry.The other is that
maintaining competitive parity prevents
promotion wars.

47. 4. Objective-and-Task Method
The objective-and-task method calls upon
marketers to develop promotion budgets by
defining specific objectives, determining the
task that must be performed to achieve
these objectives, and estimating the costs of
performing these tasks.The sum of these costs
is the proposed promotion budget.

48. Deciding on the Marketing
Communication

49. A. The PromotionalTools

50. 1. Advertising
 Advertising can be used to build a long-term image
for a product or trigger quick sales.
 Advertising can efficiently reach geographically
dispersed buyers.
 Certain form of advertising can require a large
budget, some can be done on a small budget.
 Advertising might have an effect on sales simply
through its presence.

51. Advertorial – are ads that contain editorial content
and may be hard to distinguish from a newspaper’s and
magazine’s content.
Infomercials – areTV commercial that appear to be 30
minute television shows demonstrating or discussing a
product.Viewers can phone and order the product and
these infomercial products directly measurable results.
Banners – are small signs onWeb pages advertising
an offer or company that can be reached by clicking on
the banner.

52. 2. Sales Promotion
Sales-promotion tools – coupons, contests, premiums
and the like – are highly diverse. Companies use sales-
promotion tools to draw a stronger and quicker buyer
response offers and boost sagging sales
They offer 3 distinctive benefits: Communication,
Incentive, Invitation

53. 3. Public Relation and Publicity
The appeal of public relation and publicity is
based on three distinctive qualities:
 High credibility,
 Ability to catch buyers off guard &
 Dramatization

54. High credibility – news stories and features
are more authentic and credible to readers than
ads.
Ability to catch buyers off guard – public
relation can reach prospects who prefer to avoid
salespeople and advertisements.
Dramatization – public relation has the
potential for dramatizing a company or product.

55. 4. Personal Selling
Personal selling is the most effective tool at later
stages of the buying process, particularly in building
up buyer preference, conviction, and action.
Personal selling has 3 distinctive qualities.
 Personal confrontation,
 Cultivation,
 Response

56. Personal confrontation – personal selling involve an
immediate and interactive relationship between 2 or
more persons.
Cultivation – personal selling permits all kinds of
relationships to spring up, ranging from a matter-of-fact
selling relationship to a deep personal friendship. Sales
reps will normally have customers’ best interests at
heart.
Response – personal selling makes the buyer feel under
some obligation for having listened to the sales talk.

57. 5. Direct Marketing
There are many forms of direct marketing –
direct mail, telemarketing, Internet marketing
– they all share 4 distinctive characteristics.
 Nonpublic,
 Customized,
 Up-to-date,
 Interactive

58. Nonpublic – the message is normally addressed
to a specific person.
Customized – the message can be prepared very
to appeal to the addressed individual
Up-to-date – a message can be prepared very
quickly
Interactive – the message can be changed
depending on the person’s response

59. B. Factors on setting the
Marketing Communication
Mix

60. Types of Product Market
Promotional allocation vary between consumer and
business markets
Consumer marketers spend on sales
promotion, advertising, personal selling and public
relations, in that order.
Business marketers spend on personal
selling, sales promotion, advertising, and public
relations, in that order.

61. PushVs Pull Strategy
Push Strategy – It involves manufacturer
using sales force sand trade promotion to
induce intermediaries to carry, promote, and sell the
product to end users.
Push Strategy is especially appropriate where
there is low brand loyalty in a category, brand
choice is made in the store, the product is an
impulse item, and product benefits are well
understood.

62. Pull Strategy – it involves the manufacturer
using advertising and consumer promotion
to induce consumers to ask intermediaries for
the product, thus inducing the intermediaries to
order it.
Pull strategy is especially appropriate when there
is high brand loyalty and high involvement in
the category, people perceive differences between
brands, and people choose the brand before
they go to the store.

63. Product-Life-Cycle Stage
Promotional tools also vary in cost
effectiveness at different stages of the product
life cycle.
 Introduction Stage
 Growth Stage
 Maturity Stage
 Decline Stage

64.  Introduction Stage – advertising and publicity have the highest
cost effectiveness, followed by personal selling to gain distribution
coverage and sales promotion to induce trial.
 Growth Stage – all the tools can be toned down because demand has its
own momentum through word of mouth
 Maturity Stage – sales promotion, advertising, and personal
selling all grow more importing, in their order
 Decline Stage – sales promotion continues strong, advertising
and publicity are reduced, and salespeople give the product only minimal
attention.

65. According to American Association of Advertising
Agencies, IMC is:
A concept of marketing communication planning that
recognizes the added value of a comprehensive plan
that evaluates the strategic roles of a variety of
communications disciples – for example, general
advertising, direct response, sales promotion and public
relations – and combines these disciplines to provide
clarity, consistency, and maximum communications’
impact through the seamless integration of discrete
message.

66. Thank you 