AN OVERVIEW OF INTEGRATED
Chapter 1 MARKETING COMMUNICATIONS
Chapter Objectives
After reading this chapter, you should be able to:
1. Understand the practice of marketing communications and recognize the marcom tools used
by practitioners.
2. Differentiate among the following terms: the marketing mix, marketing, communications,
marketing communications, the promotional mix, and integrated marketing communications.
3. Describe the philosophy and practice of integrated marketing communications (IMC) and the
five key features of IMC.
4. Recognize the activities involved in developing an integrated communications program.
5. Identify obstacles to implementing an IMC program.
6. Understand and appreciate the components contained in an integrative model of the marcom
decision-making process.
Chapter Overview
This chapter provides an overview of integrated marketing communications (IMC).
The first part of the chapter discusses the practice of marketing communications (marcom) and
its objectives. Important marcom terminology is introduced, as well as various marcom tools
used by practitioners.
IMC is the coordination of the promotional mix elements (advertising, public relations, sales
promotion, personal selling, direct marketing, and digital marketing/social media) with each
other and with the other elements of the brand’s marketing mix such that all elements speak with
one voice. IMC contains five key features: (1) start with the customer or prospect; (2) use any
form of relevant contact or touchpoint; (3) speak with a single voice; (4) build relationships; and
(5) affect behavior. Obstacles to implementing the features of IMC are discussed.
The latter portion of the chapter describes a model of the marcom decision-making process. The
model includes fundamental decisions (i.e., targeting, positioning, setting objectives, and
budgeting), implementation decisions (i.e., mixing elements, creating messages, selecting media,
and establishing momentum), expected outcomes (i.e., enhancing brand equity and affecting
behavior), and program evaluation.
The chapter appendix provides information on important U.S. trade associations in the marcom
field.
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
,Chapter Outline
Marcom Insight
Checking in with Mobile Apps: The Creative Use of Geo-Fencing and Geo-Conquesting
Consumers are spending more and more time on their mobile phones. This has enabled
marketers to connect with mobile phone users in real time and to reach them when they are most
receptive. To connect with consumers, many marketers are using techniques known as geo-
fencing and geo-conquesting. Geo-fencing involves targeting customers within designated areas
(usually near the firm’s location), whereas geo-conquesting occurs when companies use
promotions applied to their competitor’s location. Both techniques have been shown to be
effective in generating incremental sales without cannibalization of a company’s brand.
However, there can be potential obstacles with their use. Both techniques rely on the accuracy of
retailer beacons using global positioning system (GPS) or radio frequency identification (RFID)
techniques. In addition, geo-tagging involving other users’ actions and postings gives rise to
concerns over consumer privacy.
1-1 Introduction
All firms employ marketing communications (marcom) to one degree or another. The
focus may be directed at consumers (B2C) or focused on customers of other businesses
(B2B).
1-2 Marketing Communications Objectives and Terminology
Companies have a variety of general objectives for their B2C, B2B, or nonprofit marcom
programs: (1) informing customers about their products, services, and terms of sale; (2)
persuading customers to choose certain products and brands, shop in particular stores, go
to certain websites, attend events, and other specific behaviors; (3) and inducing action
(e.g., purchase behavior) from customers that is more immediate than delayed in nature.
These objectives usually are accomplished sequentially and can be achieved by using
several marcom tools, including mobile and TV advertising, salespeople, social media,
point-of-purchase displays, interactive packages, direct mail literature, group online
coupons, free samples, publicity releases, and other communication and promotional
devices.
The marketing mix is the collection of specific elements of a brand’s 4Ps—product,
place (distribution), price, and promotion—and usually aimed at a target market.
Communications refers to the process whereby commonness of thought is established
and meaning is shared between individuals or between organizations and individuals.
Figure 1.1 illustrates this idea in a Social Media Venn Diagram.
Marketing is human activity directed at satisfying needs and wants through exchange
processes. Marketing communications represents the collection of all elements in an
organization’s marketing mix that facilitate exchange by establishing shared meaning
with its customers. All marketing mix variables can communicate with customers.
Marketing communications can be both intentional and unintentional.
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
, An Overview of Integrated Marketing Communications
1-3 Promotional Mix Elements
Promotional mix is the blend of advertising, public relations, sales promotion, personal
selling, direct marketing, and digital marketing/social media elements usually aimed at a
specific target market.
Advertising is a paid, mediated form of communication from an identifiable source,
designed to persuade the receiver to take some action, now or in the future. This
includes mass media outlets such as television, magazines, newspapers, and out-of-
home.
Public relations (PR) is an organizational activity involved with fostering goodwill
between a company and its various publics (e.g., employees, suppliers, consumers,
government agencies, stockholders). Publicity is nonpersonal communication to a
mass audience.
Sales promotion refers to all promotional activities (excluding advertising, public
relations, personal selling, direct marketing, and digital marketing/social media) that
stimulate short-term behavioral responses from (1) consumers, (2) the trade (e.g.,
distributors, wholesalers, or retailers), and/or (3) the company’s sales force. Trade
sales promotion includes using display allowances, quantity discounts, and
merchandise assistance to activate wholesale and retailer responses. Consumer sales
promotion includes the use of coupons, premiums, free samples,
contests/sweepstakes, and rebates.
Personal selling is a paid, person-to-person communication in which a seller
determines needs and wants of prospective buyers and attempts to persuade these
buyers to purchase the company’s products or services.
Direct marketing represents an interactive system of marketing which uses one or
more advertising media to effect a measurable response and/or transaction at any
location. Direct response advertising involves the use of any of several media to
transmit messages that encourage buyers to purchase directly from the advertiser.
Digital marketing is the promotion of product and services over the Internet. Social
media marketing refers to forms of electronic communication through which user-
generated content (information, ideas, and videos) can be shared within the user’s
social network.
Figure 1.2 illustrates the promotional mix.
Earned media refers to publicity gained through promotional efforts (e.g., social media
word-of-mouth, buzz, PR) other than paid advertising. Paid media refers to publicity
gained through advertising in which the firm’s brand pays to leverage a media channel
(e.g., display ads, paid search). Owned media represents when a firm’s brand controls
the media channel (e.g., a brand’s website or mobile app). Table 1.1 compares earned,
paid, and owned media.
1-4 The Primary Tools of Marketing Communications
Table 1.2 provides a listing of possible marketing communication tools.
1-5 The Integration of Marketing Communications
Mountain Dew’s marketing communications is described as an example of an integrated
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
, Chapter 1
communications plan.
1-5a Why Integrate?
Organizations traditionally have handled communication tools as virtually
separate practices and organizational units rather than having generalized
knowledge and experience across all tools. There has been a reluctance to change
from this single-function, specialist model due to managerial parochialism and for
fear that change might lead to budget cutbacks in their areas of control, and
reductions in their authority, perceived expertise, and power.
1-5b IMC Practices and Synergy
Not all brand managers or their firms are equally likely to adopt IMC.
Experienced managers are more likely than novice managers to practice IMC.
Firms involved in marketing services (rather than products) and B2C (versus
B2B) companies are more likely to practice IMC.
More sophisticated companies are likely adherents to IMC.
IMC is worth practicing because it can create synergy; in other words, multiple
communication tools in conjunction with one another can produce greater results
than tools used individually and in an uncoordinated fashion.
1-5c Definition of IMC
IMC is the coordination of the promotional mix elements (advertising, public
relations, sales promotion, personal selling, direct marketing, and digital
marketing/social media) with each other and with the other elements of the
brands’ marketing mix (product, place, price) such that all elements speak with
one voice.
1-6 Key IMC Features
The five key features of IMC are listed in Table 1.3.
1-6a Key Feature #1: IMC Should Begin with the Customer or Prospect
The marcom process must start with the customer or prospect and then work
backward (“outside-in” approach) to determine which communication methods
will best serve the customers’ information needs and motivate them to purchase
the brand.
Consumers in Control
The key reality for marcom programs is that the consumer increasingly wants to
be in control. Personalization and authenticity of marcom messages are important
in gaining consumer trust and engagement. Online marketing via location-based
services, social media, scanning, wearables, blogging, and texting enables
consumers to have communications and entertainment when and wherever they
want.
Reduced Dependence on the Mass Media
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
Chapter 1 MARKETING COMMUNICATIONS
Chapter Objectives
After reading this chapter, you should be able to:
1. Understand the practice of marketing communications and recognize the marcom tools used
by practitioners.
2. Differentiate among the following terms: the marketing mix, marketing, communications,
marketing communications, the promotional mix, and integrated marketing communications.
3. Describe the philosophy and practice of integrated marketing communications (IMC) and the
five key features of IMC.
4. Recognize the activities involved in developing an integrated communications program.
5. Identify obstacles to implementing an IMC program.
6. Understand and appreciate the components contained in an integrative model of the marcom
decision-making process.
Chapter Overview
This chapter provides an overview of integrated marketing communications (IMC).
The first part of the chapter discusses the practice of marketing communications (marcom) and
its objectives. Important marcom terminology is introduced, as well as various marcom tools
used by practitioners.
IMC is the coordination of the promotional mix elements (advertising, public relations, sales
promotion, personal selling, direct marketing, and digital marketing/social media) with each
other and with the other elements of the brand’s marketing mix such that all elements speak with
one voice. IMC contains five key features: (1) start with the customer or prospect; (2) use any
form of relevant contact or touchpoint; (3) speak with a single voice; (4) build relationships; and
(5) affect behavior. Obstacles to implementing the features of IMC are discussed.
The latter portion of the chapter describes a model of the marcom decision-making process. The
model includes fundamental decisions (i.e., targeting, positioning, setting objectives, and
budgeting), implementation decisions (i.e., mixing elements, creating messages, selecting media,
and establishing momentum), expected outcomes (i.e., enhancing brand equity and affecting
behavior), and program evaluation.
The chapter appendix provides information on important U.S. trade associations in the marcom
field.
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
,Chapter Outline
Marcom Insight
Checking in with Mobile Apps: The Creative Use of Geo-Fencing and Geo-Conquesting
Consumers are spending more and more time on their mobile phones. This has enabled
marketers to connect with mobile phone users in real time and to reach them when they are most
receptive. To connect with consumers, many marketers are using techniques known as geo-
fencing and geo-conquesting. Geo-fencing involves targeting customers within designated areas
(usually near the firm’s location), whereas geo-conquesting occurs when companies use
promotions applied to their competitor’s location. Both techniques have been shown to be
effective in generating incremental sales without cannibalization of a company’s brand.
However, there can be potential obstacles with their use. Both techniques rely on the accuracy of
retailer beacons using global positioning system (GPS) or radio frequency identification (RFID)
techniques. In addition, geo-tagging involving other users’ actions and postings gives rise to
concerns over consumer privacy.
1-1 Introduction
All firms employ marketing communications (marcom) to one degree or another. The
focus may be directed at consumers (B2C) or focused on customers of other businesses
(B2B).
1-2 Marketing Communications Objectives and Terminology
Companies have a variety of general objectives for their B2C, B2B, or nonprofit marcom
programs: (1) informing customers about their products, services, and terms of sale; (2)
persuading customers to choose certain products and brands, shop in particular stores, go
to certain websites, attend events, and other specific behaviors; (3) and inducing action
(e.g., purchase behavior) from customers that is more immediate than delayed in nature.
These objectives usually are accomplished sequentially and can be achieved by using
several marcom tools, including mobile and TV advertising, salespeople, social media,
point-of-purchase displays, interactive packages, direct mail literature, group online
coupons, free samples, publicity releases, and other communication and promotional
devices.
The marketing mix is the collection of specific elements of a brand’s 4Ps—product,
place (distribution), price, and promotion—and usually aimed at a target market.
Communications refers to the process whereby commonness of thought is established
and meaning is shared between individuals or between organizations and individuals.
Figure 1.1 illustrates this idea in a Social Media Venn Diagram.
Marketing is human activity directed at satisfying needs and wants through exchange
processes. Marketing communications represents the collection of all elements in an
organization’s marketing mix that facilitate exchange by establishing shared meaning
with its customers. All marketing mix variables can communicate with customers.
Marketing communications can be both intentional and unintentional.
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
, An Overview of Integrated Marketing Communications
1-3 Promotional Mix Elements
Promotional mix is the blend of advertising, public relations, sales promotion, personal
selling, direct marketing, and digital marketing/social media elements usually aimed at a
specific target market.
Advertising is a paid, mediated form of communication from an identifiable source,
designed to persuade the receiver to take some action, now or in the future. This
includes mass media outlets such as television, magazines, newspapers, and out-of-
home.
Public relations (PR) is an organizational activity involved with fostering goodwill
between a company and its various publics (e.g., employees, suppliers, consumers,
government agencies, stockholders). Publicity is nonpersonal communication to a
mass audience.
Sales promotion refers to all promotional activities (excluding advertising, public
relations, personal selling, direct marketing, and digital marketing/social media) that
stimulate short-term behavioral responses from (1) consumers, (2) the trade (e.g.,
distributors, wholesalers, or retailers), and/or (3) the company’s sales force. Trade
sales promotion includes using display allowances, quantity discounts, and
merchandise assistance to activate wholesale and retailer responses. Consumer sales
promotion includes the use of coupons, premiums, free samples,
contests/sweepstakes, and rebates.
Personal selling is a paid, person-to-person communication in which a seller
determines needs and wants of prospective buyers and attempts to persuade these
buyers to purchase the company’s products or services.
Direct marketing represents an interactive system of marketing which uses one or
more advertising media to effect a measurable response and/or transaction at any
location. Direct response advertising involves the use of any of several media to
transmit messages that encourage buyers to purchase directly from the advertiser.
Digital marketing is the promotion of product and services over the Internet. Social
media marketing refers to forms of electronic communication through which user-
generated content (information, ideas, and videos) can be shared within the user’s
social network.
Figure 1.2 illustrates the promotional mix.
Earned media refers to publicity gained through promotional efforts (e.g., social media
word-of-mouth, buzz, PR) other than paid advertising. Paid media refers to publicity
gained through advertising in which the firm’s brand pays to leverage a media channel
(e.g., display ads, paid search). Owned media represents when a firm’s brand controls
the media channel (e.g., a brand’s website or mobile app). Table 1.1 compares earned,
paid, and owned media.
1-4 The Primary Tools of Marketing Communications
Table 1.2 provides a listing of possible marketing communication tools.
1-5 The Integration of Marketing Communications
Mountain Dew’s marketing communications is described as an example of an integrated
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
, Chapter 1
communications plan.
1-5a Why Integrate?
Organizations traditionally have handled communication tools as virtually
separate practices and organizational units rather than having generalized
knowledge and experience across all tools. There has been a reluctance to change
from this single-function, specialist model due to managerial parochialism and for
fear that change might lead to budget cutbacks in their areas of control, and
reductions in their authority, perceived expertise, and power.
1-5b IMC Practices and Synergy
Not all brand managers or their firms are equally likely to adopt IMC.
Experienced managers are more likely than novice managers to practice IMC.
Firms involved in marketing services (rather than products) and B2C (versus
B2B) companies are more likely to practice IMC.
More sophisticated companies are likely adherents to IMC.
IMC is worth practicing because it can create synergy; in other words, multiple
communication tools in conjunction with one another can produce greater results
than tools used individually and in an uncoordinated fashion.
1-5c Definition of IMC
IMC is the coordination of the promotional mix elements (advertising, public
relations, sales promotion, personal selling, direct marketing, and digital
marketing/social media) with each other and with the other elements of the
brands’ marketing mix (product, place, price) such that all elements speak with
one voice.
1-6 Key IMC Features
The five key features of IMC are listed in Table 1.3.
1-6a Key Feature #1: IMC Should Begin with the Customer or Prospect
The marcom process must start with the customer or prospect and then work
backward (“outside-in” approach) to determine which communication methods
will best serve the customers’ information needs and motivate them to purchase
the brand.
Consumers in Control
The key reality for marcom programs is that the consumer increasingly wants to
be in control. Personalization and authenticity of marcom messages are important
in gaining consumer trust and engagement. Online marketing via location-based
services, social media, scanning, wearables, blogging, and texting enables
consumers to have communications and entertainment when and wherever they
want.
Reduced Dependence on the Mass Media
© 2018 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
