1. Strategic Market Management 7th Edition – David Aaker
Integrated Marketing Communication By
Dr. Ravindra Pratap Gupta

2. ISSUED IN PUBLIC INTEREST
Advisable “All material in slides need not be understood. Use your current working environment and experience to relate to situations. Errors and omissions regrettable. Subject to corrections on Being brought to notice”

3. Chapter Objectives After reading this chapter you should be able to understand:
Introduction to Integrated Marketing Communication.
Understand the five key features of IMC.
Steps in Developing Effective Communication.
Promotional Budget & Promotional Mix.
Basic Elements of Promotional Mix.
IMC Planning Model
The AIDA Concept
Socially Responsible Marketing Communication
Identify Benefits & Obstacles to implementing an IMC program.

4. Integrated Marketing Communications
A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused.
The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
IMC

5. Integrated Marketing Communications
As defined by the American Association of Advertising Agencies, Integrated Marketing Communications (IMC) “recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines—advertising, public relations, personal selling, and sales promotion—and combines them to provide clarity, consistency, and maximum communication impact.

6. Marketing Communications
Marketing Communications’ Objective
To enhance brand equity by moving customers to favorable action toward the brand—trying it, repeat purchasing it, and becoming loyal toward the brand.
Brand Equity
The degree to which consumers favorably perceive the brand’s features and benefits as compared to competitive brands and how strongly these views are held in memory 6

7. Reasons For Growing Importance of IMC
Shift from media advertising to other forms of marketing communication
Movement away from advertising focused- approaches that emphasize mass media
Shift in power from manufacturers to retailers
Rapid growth of database marketing
Demands for greater ad agency accountability
Changes in agency compensation
Rapid growth of the Internet
Increasing importance of branding

8. Marketing Communications (Marcom) For Business Types
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Integrated Marcom B2C&B
Integrated Marketing Communication (IMC) Programs 8

9. The Tools of Marketing Communications
1. Media Advertising
• TV
• Radio
• Magazines
• Newspapers
2. Direct Response and Interactive Advertising
• Direct mail
• Telephone solicitation
• Online advertising
3. Place Advertising
• Billboards and bulletins
• Posters
• Transit ads
• Cinema ads
4. Store Signage and Point-of-Purchase Advertising
• External store signs
• In-store shelf signs
• Shopping cart ads
• In-store radio and TV
5. Trade- and Consumer-Oriented Promotions
• Trade deals and buying allowances
• Display and advertising allowances
• Trade shows
• Cooperative advertising
• Samples
• Coupons
• Premiums
• Refunds/rebates
• Contests/sweepstakes
• Promotional games
• Bonus packs
• Price-off deals
6. Event Marketing and Sponsorships
• Sponsorship of sporting events
• Sponsorship of arts, fairs, and festivals
• Sponsorship of causes
7. Marketing-Oriented Public Relations and Publicity
8. Personal Selling 9

10. Five Key Features of IMC
Start with the customer or prospect.
Use any form of relevant contact or touch point.
Speak with a single voice.
Build relationships.
Affect behavior. 10

11. Key IMC Feature # 1
The Consumer or Business Customer Must Represent the Starting Point for All Marketing Communications Activities
Takeaway:
Consumers in Control
Outside-in approach: learn the media preferences and lifestyles of customers/prospects to know the best contexts to reach them with brand messages.
Reduced Dependence on Mass Media
Consumers are increasingly in control of their media choices for acquiring information about brands. 11

12. Key IMC Feature # 2
Use Any and All Marcom Tools That Are Up to the Task
Takeaway:
360-Degree Branding
A brand’s touch points should be everywhere the target audience is.
Not All Touch Points Are Equally Engaging
Surround customers/prospects with the message, but not to the point of being irritatingly present. 12

13. Key IMC Feature # 3 Multiple Messages Must Speak with a Single Voice
Takeaway:
A brand’s positioning statement must:
Present a clear idea of the brand in its target market’s mind
Consistently deliver the same unified message across all media channels on all occasions. 13

14. Key IMC Feature # 4 Build Relationships Rather Than Engage in Flings
Takeaway:
Loyalty programs promote long-term relationships between customers and brands that lead to customer retention.
Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers. 14

15. Key IMC Feature # 5
Don’t Lose Focus of the Ultimate Objective: Affect Behavior
Takeaway:
The goal of IMC is to influence the target audience in such a way that the audience engages in a specific desired behavior.
The effectiveness of an IMC program is judged by its success in terms of its ultimate influence on behavior. 15

16. Developing Effective Communication
Step 1: Identifying the Target Audience.
Step 2: Determining Communication Objectives.
Step 3: Designing a Message.
Step 4: Choosing Media.
Step 5: Selecting the Message Source
Step 6: Collecting Feedback

17. Developing Effective Communication
Step 1: Identifying the Target Audience
Affects decisions related to what, how, when, and where message will be said, as well as who will say it
Step 2: Determining Communication Objectives
Six buyer readiness stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase

18. Developing Effective Communication
Step 3: Designing a Message
AIDA framework guides message design
AIDA Model-Get Attention, Hold Interest, Arouse Desire, Obtain Action
Message content contains appeals or themes designed to produce desired results
Rational appeals-relates to the audience’s self-interest
Emotional appeals- is an attempt to stir up positive or negative emotions to motivate a purchase
Love, pride, joy, humor, fear, guilt, shame
Moral appeals- is directed at the audience’s sense of right and proper

19. Developing Effective Communication
Message Structure: Key decisions are required with respect to three message structure issues:
Whether or not to draw a conclusion
One-sided vs. two-sided argument
Order of argument presentation
Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

20. Developing Effective Communication
Step 4: Choosing Media
Personal communication channels
Includes face-to-face, phone, mail, and Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing-cultivates opinion leaders
Non-personal communication channels
Includes media, atmosphere, and events

21. Developing Effective Communication
Step 5: Selecting the Message Source
Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand
Step 6: Collecting Feedback
Recognition, recall, and behavioral measures are assessed
May suggest changes in product/promotion

22. Setting the Promotional Budget
Affordability Method
Budget is set at a level that a company can afford
Percentage-of-Sales Method
Past or forecasted sales may be used
Competitive-Parity Method
Budget matches competitors’ outlays
Objective-and-Task Method
Specific objectives are defined
Tasks required to achieve objectives are determined
Costs of performing tasks are estimated, then summed to create the promotional budget

23. Setting the Overall Promotional Mix
Setting the Overall Promotion Mix
Determined by the nature of each promotion tool and the selected promotion mix strategy
Promotion Mix Strategies
Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.
Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.

24. The Promotion Mix
The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships

25. Factors that influence the use of promotional tools

26. The promotion decision process

27. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales Promotion
Sales Promotion
Relation to text This slide relates to material on page and Figure 1-1.
Summary Overview The promotional mix is the basic tools used to accomplish an organization’s communication objectives. These tools include:
Advertising – any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor
Direct marketing – communication directly with target customers to generate a response and/or transaction
Interactive/Internet marketing – communication through interactive media such as the Internet, CD-ROMS and kiosks.
Sales promotion – marketing activities that provide extra value or incentives to sales force, distributors, or consumers to stimulate immediate sales
Publicity/Public Relations – Publicity is a form of non-personal communication not directly paid for or run under identified sponsorship. Public relations is a management function which executes programs of action to earn public understanding and acceptance an enhance the image of the company.
Personal Selling – person-to-person communication between a seller and buyer
Use of this slide This slide can be used to introduce and define the various elements of the promotional mix.
Publicity/Public
Relations
Publicity/Public
Relations
Personal Selling

28. Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

29. Classifications of Advertising
Consumers
National Advertising
National Advertising
Retail/Local Advertising
Retail/Local Advertising
Primary vs. Selective Demand Advertising
 Relation to text This slide relates to pp and Figure 1-3 in text.
Summary Overview The nature and purpose of advertising differs from one industry to another and/or across situations. Advertising can be targeted toward consumer and/or business markets.
Consumer advertising is classified as:
National advertising – done by large companies on a nationwide basis. Ads for well-known brands and companies shown on television are an example.
Retail/Local advertising – done by retail and local merchants encouraging consumers to shop at a specific store, use a local service, or patronize a particular establishment.
Primary versus selective demand advertising – primary demand advertising is designed to stimulate demand for the general product class or industry. Selective-demand focuses on creating demand for a specific company and/or its brands.
Advertising to business and professional markets includes:
Business to business advertising – advertising that targets individuals who buy or influence the purchase of industrial goods or services for their companies.
Professional advertising – advertising targeted to professionals such doctors, lawyers, engineers, and the like.
Trade advertising – targeted to marketing channel members such as wholesalers, distributors, and retailers.
Use of this slide This slide can be used to explain the various types of advertising and how the role of advertising can vary given the target customer, goals and objectives, or situation.
Primary vs. Selective Demand Advertising
Business-to-Business Advertising
Business-to-Business Advertising
Organizations
Professional Advertising
Professional Advertising
Trade Advertising

30. Direct Marketing
Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, , and the Internet to communicate directly with specific consumers

31. Direct Marketing Forms
Mail
Direct
Mail
Internet
Sales
Direct
Response
Advertising
Direct
Response
Advertising
Direct Marketing
Relation to text This slide relates to material on pp of the text.
Summary Overview Direct marketing is a form of integrated marketing communications whereby an organization communicates directly with target customers to generate a response and/or transaction. It involves a variety of activities including:
Direct mail
Direct response advertising (on TV, radio or in magazines or newspapers)
Telemarketing
Internet Sales
Catalogs
Shopping channel
Use of this slide This slide can be used to provide an overview of direct marketing and the various forms it can take.
Shopping
Channels
Shopping
Channels
Telemarketing
Telemarketing
Cataloging
Catalogs

32. Using the Internet as an IMC Tool
Obtains Customer Database Information
Educates or Informs Customers
Communicates and Interacts With Buyers
A Persuasive Advertising Medium
Builds and Maintains Customer Relationships
A Sales Tool or an Actual Sales Vehicle
Provides Customer Service and Support
Educates or Informs Customers
A Persuasive Advertising Medium
A Sales Tool or an Actual Sales Vehicle
Relation to text This slide relates t material on pp which discusses interactive marketing and the Internet as IMC tools.
Summary Overview The rapid changes in technology have led to dramatic growth of communications through interactive media, particularly the Internet. This communication medium is unique in that it allows for the back-and-forth flow of information in real time. Customers can perform a variety of functions on the Internet such as receive and alter information and images, make inquires, respond to questions, and, of course, make purchases. The Internet has changed the ways companies communicate to their customers as companies and organizations of all sizes have developed websites to promote their products and services.
Use of this slide This slide can be used to show that the Internet has changed the way companies communicate with their customers. Because of its interactive nature, it is a very effective way to communicate with customers. Actually, it is a medium that can be used to execute all elements of the promotional mix. In addition to advertising, companies can offer sales promotion incentives such as coupons or contests, do direct marketing, and execute public relations, and personal selling functions via the Internet.
About Products/Services & Support
Communicates constantly / Interacts with Buyers
Provides Customer Service and Support

33. Sales Promotion
Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness.

34. Sales Promotion Sales Promotion Targets End Consumers Trade Customers
Company
Employees
Sales Promotion
Targets

35. Sales Promotion Tools Consumer-oriented Trade-oriented
Coupons
Coupons
Samples
Samples
Trade
Allowances
Premiums
Premiums
POP Displays
POP Displays
Contests/Sweepstakes
Contests/Sweepstakes
Training Programs
Training Programs
Refunds/Rebates
Refunds/Rebates
Bonus Packs
Bonus Packs
Trade Shows
Trade Shows
Loyalty Programs
Loyalty Programs
Relation to text This slide relates to material on pp of the text which discusses the role of sales promotion as an IMC tool.
Summary Overview Sales promotion is defined as those activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken down into two categories:
Customer-oriented – targeted to the ultimate user of the product or service and includes coupons, sampling, premiums, contests, sweepstakes, refunds/rebates, bonus packs, events, and loyalty programs.
Trade-oriented – targeted to marketing intermediaries such as wholesalers, distributors, and retailers and includes trade allowances, price deals, sales contests, trade shows, and cooperative advertising.
Use of slide This slide can be used to introduce sales promotion as an IMC tool and the various types consumer and trade promotions.
Coop Advertising
Coop Advertising
Events
Events
Consumer-oriented
[For end-users]
Trade-oriented
[For resellers]

36. Various Uses of Sales Promotion
Introduce New Products
Introduce New Products
Get Existing Customers to Buy More
Get Existing Customers to Buy More
Combat Competition
Attract New Customers
Attract New Customers
Sales
Promotion
Enhance Personal Selling
Enhance Personal Selling
Relation to text This slide relates to the material on pp which discusses the role of sale promotion as part of the IMC program.
Summary Overview There are various reasons why companies choose to use sales promotion in their IMC programs. The various uses of consumer and trade promotion include:
Introduce new products
Get existing customers to buy more
Attract new customers
Maintain sales in off seasons
Increase retailer inventories
Enhance or tie in advertising with personal selling
Combat competition
Use of Slide This slide can further supplement the discussion of sales promotion and why companies use this tool as part of their IMC programs
Maintain Sales In Off Season
Maintain Sales In Off Season
Tie In Advertising & Personal Selling
Increase Retail Inventories
Tie In Advertising & Personal Selling
Increase Retail Inventories

37. Publicity
Public information about a company, good, or service appearing in the mass media as a news item.

38. Publicity Vehicles Publicity Vehicles Feature Articles Feature
News
Releases
News
Releases
Interviews
Interviews
Publicity Vehicles
Relation to text This slide relates to the material on pp
Summary Overview Companies attempt to get the media to cover or run favorable stories on their products, services, or causes. There are a number of publicity vehicles available to marketers. Publicity can be generated through the use of:
feature articles
news releases
press conferences
special events
interviews
Use of Slide This slide can be used to show the various methods that can be used to generate publicity for companies, brands, organizations, or causes.
Press
Conferences
Special
Events
Special
Events

39. Public Relations
The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

40. Public Relations Functions of Public Relations
Evaluates public attitudes
Identifies areas
of public interest
Executes programs to “win” public
Functions of
Public Relations

41. Public Relations Tools
Publicity
Vehicles
Publicity
Vehicles
Special
Publications
Special
Publications
Community
Activities
Community
Activities
Corporate Advertising
Corporate Advertising
Cause-related Marketing
Cause-related Marketing
Relation to text This slide relates to material on pp which discusses public relations.
Summary Overview It is important to distinguish between publicity and public relations. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in public relations. There are a variety of public relations tools available to marketers such as publicity vehicles, special publications, community activities, fund raising programs, public affairs activities, and special event sponsorships. Organizations can also use advertising as a public relations tool.
Use of Slide This slide can be used to explain the various public relations tools. It also provides an opportunity to discuss the differences between public relations and publicity.
Public Affairs
Activities
Public Affairs
Activities
Special Event
Sponsorship

42. Personal Selling
Planned presentation to one or more prospective buyers for the purpose of making a sale.

43. Personal Selling
Traditional
Selling
Relationship
Selling

44. The Promotional mix

45. Integrating the Promotion Mix Checklist
1. Identify customer touch points
2. Analyze trends—internal and external
3. Audit the pockets of communication spending throughout the organization
4. Team up in communications planning
5. Create compatible themes, tones, and quality across all communications media
6. Create performance measures that are shared by all communications elements
7. Appoint a director responsible for the company’s persuasive communications efforts

46. Integrated Marketing Communications Planning Model
Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
Advertising
Sales
Promotion
PR/
Publicity
Personal
Selling
Direct
Marketing
Objectives
Message
Strategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
Internet/
Interactive
Relation to text This slide presents the IMC Planning Model which is shown in Figure 1-4 and discussed on pp
Summary Overview This slide presents the IMC Planning Model which is discussed in detail in Chapter 1. This model presents the framework for developing, implementing, evaluating, and controlling the firm’s IMC program and activities.
Use of this slide This model should be reviewed very carefully at the beginning of the course to show students what is involved in the development of a complete IMC program. It presents the framework that is used for the text and provides an opportunity to provide students with the “big picture” and a roadmap of what will be covered in the course.

47. The AIDA Concept Attention Interest Desire Action
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

48. AIDA and the Promotional Mix
Awareness
Interest
Desire
Action
Advertising
Very
effective
Somewhat
Not
Public
Relations
Sales
Promotion
Personal
Selling

49. Socially Responsible Marketing Communication
Communicate openly and honestly with consumers and resellers
Avoid deceptive or false advertising
Avoid bait-and-switch advertising
Conform to all federal, state, and local regulations
Follow rules of “fair competition”
Do not offer bribes
Do not attempt to obtain competitors’ trade secrets
Do not disparage competitors or their products

50. Benefits of an IMC Approach
It is synergistic, taking into account the multiple ways to reach potential consumers.
There is tactical consistency, whereby various promotion tools complement each other.
There is interactivity with consumers, with messages better tailored to specific market segments.
Every message positively influences the target audience.
Promotion themes and differential advantages are understood by all employees who interface with the targeted audience.
Advertising, public relations, sales, and sales promotion personnel cooperate with one another.
Detailed data bases are maintained.

51. Obstacles to Implementing IMC
Integration requires tight coordination among all elements of a marcom program.
Few providers of marketing communication services have the diversity of skills required to execute an IMC program.
Direct-to-customer advertising is more difficult than a mass media campaign.
The greatest challenge is making sure that all marcom tools are consistently executed. 51

52. Dr Ravindra Pratap Gupta
Quote-2
“"The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is not asking the right questions."
Dr Ravindra Pratap Gupta

53. Question
Q 17. What do you understand by Integrated Marketing Communication (IMC)? Discuss the tools of IMC, Reasons for Growth & Obstacles to IMC?
Q 18. Discuss five key features of IMC?
Q 19. Discuss the steps for effective communication and the AIDA concept for promotional mix?
Q 20. Discuss various budgeting options Promotional Mix?

54. Thanks

55. See you next week!