Marketing Management 244:
Chapter 1: An Introduction to Integrated Marketing Communications
Learning Objective 1: Describe the role of advertising and other promotional elements in marketing
Learning Objective 2: Discuss the evolution of the integrated marketing communications (IMC)
concept.
Learning Objective 3: Explain the increasing value of the IMC perspective in advertising and
promotional programs.
Learning Objective 4: Identify the elements of the promotional mix
Learning Objective 5: Identify the contact points between marketers and their target audiences.
Learning Objective 6: Describe the steps in the IMC planning process.
The Growth of advertising and promotion: (LO 1)
- A + P both integral part of social and economic systems
- Vital communication system for consumers and businesses
- In 1980 A + P were dominant forms of marketing communication
- Advertising spending has shifted from traditional media to online digital advertising formats
and social media
- Largest category of Internet advertising is paid search on search engines - Growth in mobile
marketing
The Role of marketing: (LO 1)
- AMA (American Marketing Association) definition of marketing:
- Marketing: Activity, set of institutions, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and
society at large
- Exchange: involves parties with: something of value to one another, desire and ability to
give something up to the other party and as a way to communicate with each other
- Focus in market-driven companies is on developing and sustaining relationships with
customers and delivering value
- Value: the customers perception of all the benefits of a product or service weighed against
all the costs of acquiring and consuming it
- The 4 P’s (elements of the marketing mix) : product, price, place (distribution) and
promotion
- To develop an effective marketing mix, marketers must:
- Be knowledgeable about the issues and options of each element of the mix
,- Know how to combine the elements to form an effective marketing program
- Analyze the market (consumer research) and use the data to develop the marketing strategy
and mix
- Other strategies for achieving marketing communication effectively include: social media,
sponsoring events, sales promotion, direct marketing and public relations. Integrated
Marketing Communications (IMC) (LO 2)
- During the 1980s firms moved away from traditional marketing, the decade characterised by
rapid development of sale promotion, direct marketing and public relations.
- IMC =Coordinating the various promotional elements and other marketing activities that
communicate with a firm’s customers
- Terms used to describe integration: “new advertising”, “orchestration” and “seamless
communication”
- 4 A’s= American Association of Advertising Agencies definition for IMC= a concept of
marketing that recognizes the added value of a comprehensive plan that: Evaluates the
strategic roles of a variety of communication disciplines (eg. General advertising, direct
response, sales promotion and public relations) and combines the disciplines to provide
clarity, consistency, and maximum communications impact
- Ensures all marketing and promotional activities project a consistent, unified image
- IMC requires a “big picture” approach
Montblanc example in textbook:
- Montblanc uses a variety of marketing-mix elements, including price,
product design, brand name, and distribution strategy, to create a
high-quality, upscale image for its watches.
- Hugh Jackman = tactical co-ordination
Contemporary Perspective: (LO 2)
- Criticism :“Inside-out marketing” approach
- Packs promotional mix elements together, making them look and
sound alike
- Contemporary perspective: Goal - Generate short-term financial
returns and build long-term brand and shareholder value - Views
IMC as ongoing strategic business process
Reasons for the Growing Importance of IMC (LO 3)
- Fundamental reason is understanding the value strategically integrates various
communications functions rather than having the operate autonomously
- Develops more efficient and effective marketing communications programs
- Avoids duplication and takes advantage of synergy among promotional tools
- One of the easiest ways for a company to maximize return on it’s investment in marketing
and promotion
,- Changing environment (with respect to consumers, technology, and media consumption
behavior)
- Evolution to micromarketing - consumers’ unresponsiveness to traditional advertising
- Changing rules of marketing (ad agencies constantly have to reposition themselves
The Role of IMC in Branding (LO 3)
- Major role in developing the brand identity and equity
- Consumers have limited amounts of time therefore well-known brands have competitive
advantage
- Strong brands have the power to command a premium price from consumers/investors
- Recognizes the need for companies to connect with consumers based on trust,
transparency, and authenticity
- Brand Identity is a combination of many factors (name, logo, symbols, design, packaging,
associations with p/s when consumer thinks of the brand etc.)
- Sustainability: development that meets the needs of the current generation without
compromising the ability of future generations to meet their needs is of major importance-
Companies are addressing sustainability by carefully examining the social and
environmental impacts of their marketing strategies.
The Promotional Mix: The Tools for IMC (LO 4)
- Tools that accomplish an organization’s communication objectives
- Promotion: Coordination of all seller-initiated efforts to: Set up channels of information and
persuasion and sell goods and services or promote an idea
- Elements of the promotional mix:
1) Advertising:
- Definition: Any paid form of nonpersonal communication: about an organization, product,
or service (and/or) with an idea from an identified sponsor
- The nonpersonal component: Involves mass media
- Message is transmitted to large groups of individual + no opportunity for immediate
feedback
- Benefits: 1)Most cost-effective way to reach large numbers of consumers. 2) Builds brand
equity by influencing consumers’ perceptions
, Advertising to Consumer Markets:
§ National Advertising: Done on a nationwide basis or in most regions of the country.
Goal is to inform or reinforce image of company/brand
§ Retail/local advertising: Encorages consumers to: shop at a specific store, use a local
service, Patronize a particular establishment
§ Primary- versus selective-demand advertising:
- Primary-demand: stimulates demand for the general product class or entire industry
(promotional strategy)
- Selective-demand: creates demand for a specific company’s brands (overall market growth)
Advertising to Business and Professional Markets:
§ Business-to-business advertising: Targets individuals who buy or influence the
purchase of industrial goods or services for their companies
§ Professional advertising: Targets professionals, encouraging them to use a
company’s product in their business operations
§ Trade advertising: Targets marketing channel members, encouraging them to stock,
promote, and resell the manufacturer’s branded products to their customers
1) Direct Marketing:
- Definition: Involves communicating directly with target customers to generate a response
and/or a transaction
- Database management (used to target prospective customers), Direct selling, telemarketing
(calling customers directly)
- Direct-response advertising: Encourages the consumer to purchase directly from the
manufacturer
- Omnichannel retailing: trend whereby companies sell their products through multichannel
retailing stores, online, catalogues and mobile apps
3) Digital/Internet Marketing:
- Interactive media: Allow users to participate in and modify the form and content of the
information they receive in real time (ie. can ask questions, share info/images etc. )
- Social media: Online means of communication and interactions used to create, share,
and exchange content (has also revolutionized how businesses communicate and brand
themselves)
- Mobile marketing: Messages delivered are specific to a consumer’s location or
consumption situation
- Advantages of Digital/Internet Marketing: Interactive nature and capability to precisely
measure the effects of advertising and other forms of promotion
4) Sales Promotion:
Chapter 1: An Introduction to Integrated Marketing Communications
Learning Objective 1: Describe the role of advertising and other promotional elements in marketing
Learning Objective 2: Discuss the evolution of the integrated marketing communications (IMC)
concept.
Learning Objective 3: Explain the increasing value of the IMC perspective in advertising and
promotional programs.
Learning Objective 4: Identify the elements of the promotional mix
Learning Objective 5: Identify the contact points between marketers and their target audiences.
Learning Objective 6: Describe the steps in the IMC planning process.
The Growth of advertising and promotion: (LO 1)
- A + P both integral part of social and economic systems
- Vital communication system for consumers and businesses
- In 1980 A + P were dominant forms of marketing communication
- Advertising spending has shifted from traditional media to online digital advertising formats
and social media
- Largest category of Internet advertising is paid search on search engines - Growth in mobile
marketing
The Role of marketing: (LO 1)
- AMA (American Marketing Association) definition of marketing:
- Marketing: Activity, set of institutions, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and
society at large
- Exchange: involves parties with: something of value to one another, desire and ability to
give something up to the other party and as a way to communicate with each other
- Focus in market-driven companies is on developing and sustaining relationships with
customers and delivering value
- Value: the customers perception of all the benefits of a product or service weighed against
all the costs of acquiring and consuming it
- The 4 P’s (elements of the marketing mix) : product, price, place (distribution) and
promotion
- To develop an effective marketing mix, marketers must:
- Be knowledgeable about the issues and options of each element of the mix
,- Know how to combine the elements to form an effective marketing program
- Analyze the market (consumer research) and use the data to develop the marketing strategy
and mix
- Other strategies for achieving marketing communication effectively include: social media,
sponsoring events, sales promotion, direct marketing and public relations. Integrated
Marketing Communications (IMC) (LO 2)
- During the 1980s firms moved away from traditional marketing, the decade characterised by
rapid development of sale promotion, direct marketing and public relations.
- IMC =Coordinating the various promotional elements and other marketing activities that
communicate with a firm’s customers
- Terms used to describe integration: “new advertising”, “orchestration” and “seamless
communication”
- 4 A’s= American Association of Advertising Agencies definition for IMC= a concept of
marketing that recognizes the added value of a comprehensive plan that: Evaluates the
strategic roles of a variety of communication disciplines (eg. General advertising, direct
response, sales promotion and public relations) and combines the disciplines to provide
clarity, consistency, and maximum communications impact
- Ensures all marketing and promotional activities project a consistent, unified image
- IMC requires a “big picture” approach
Montblanc example in textbook:
- Montblanc uses a variety of marketing-mix elements, including price,
product design, brand name, and distribution strategy, to create a
high-quality, upscale image for its watches.
- Hugh Jackman = tactical co-ordination
Contemporary Perspective: (LO 2)
- Criticism :“Inside-out marketing” approach
- Packs promotional mix elements together, making them look and
sound alike
- Contemporary perspective: Goal - Generate short-term financial
returns and build long-term brand and shareholder value - Views
IMC as ongoing strategic business process
Reasons for the Growing Importance of IMC (LO 3)
- Fundamental reason is understanding the value strategically integrates various
communications functions rather than having the operate autonomously
- Develops more efficient and effective marketing communications programs
- Avoids duplication and takes advantage of synergy among promotional tools
- One of the easiest ways for a company to maximize return on it’s investment in marketing
and promotion
,- Changing environment (with respect to consumers, technology, and media consumption
behavior)
- Evolution to micromarketing - consumers’ unresponsiveness to traditional advertising
- Changing rules of marketing (ad agencies constantly have to reposition themselves
The Role of IMC in Branding (LO 3)
- Major role in developing the brand identity and equity
- Consumers have limited amounts of time therefore well-known brands have competitive
advantage
- Strong brands have the power to command a premium price from consumers/investors
- Recognizes the need for companies to connect with consumers based on trust,
transparency, and authenticity
- Brand Identity is a combination of many factors (name, logo, symbols, design, packaging,
associations with p/s when consumer thinks of the brand etc.)
- Sustainability: development that meets the needs of the current generation without
compromising the ability of future generations to meet their needs is of major importance-
Companies are addressing sustainability by carefully examining the social and
environmental impacts of their marketing strategies.
The Promotional Mix: The Tools for IMC (LO 4)
- Tools that accomplish an organization’s communication objectives
- Promotion: Coordination of all seller-initiated efforts to: Set up channels of information and
persuasion and sell goods and services or promote an idea
- Elements of the promotional mix:
1) Advertising:
- Definition: Any paid form of nonpersonal communication: about an organization, product,
or service (and/or) with an idea from an identified sponsor
- The nonpersonal component: Involves mass media
- Message is transmitted to large groups of individual + no opportunity for immediate
feedback
- Benefits: 1)Most cost-effective way to reach large numbers of consumers. 2) Builds brand
equity by influencing consumers’ perceptions
, Advertising to Consumer Markets:
§ National Advertising: Done on a nationwide basis or in most regions of the country.
Goal is to inform or reinforce image of company/brand
§ Retail/local advertising: Encorages consumers to: shop at a specific store, use a local
service, Patronize a particular establishment
§ Primary- versus selective-demand advertising:
- Primary-demand: stimulates demand for the general product class or entire industry
(promotional strategy)
- Selective-demand: creates demand for a specific company’s brands (overall market growth)
Advertising to Business and Professional Markets:
§ Business-to-business advertising: Targets individuals who buy or influence the
purchase of industrial goods or services for their companies
§ Professional advertising: Targets professionals, encouraging them to use a
company’s product in their business operations
§ Trade advertising: Targets marketing channel members, encouraging them to stock,
promote, and resell the manufacturer’s branded products to their customers
1) Direct Marketing:
- Definition: Involves communicating directly with target customers to generate a response
and/or a transaction
- Database management (used to target prospective customers), Direct selling, telemarketing
(calling customers directly)
- Direct-response advertising: Encourages the consumer to purchase directly from the
manufacturer
- Omnichannel retailing: trend whereby companies sell their products through multichannel
retailing stores, online, catalogues and mobile apps
3) Digital/Internet Marketing:
- Interactive media: Allow users to participate in and modify the form and content of the
information they receive in real time (ie. can ask questions, share info/images etc. )
- Social media: Online means of communication and interactions used to create, share,
and exchange content (has also revolutionized how businesses communicate and brand
themselves)
- Mobile marketing: Messages delivered are specific to a consumer’s location or
consumption situation
- Advantages of Digital/Internet Marketing: Interactive nature and capability to precisely
measure the effects of advertising and other forms of promotion
4) Sales Promotion:
