1. Integrated Marketing Communications
An Introduction (1)
Sunarto Prayitno

2. Introduction What is Marketing?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives.
(The AMA’s Dictionary of Marketing Terms, 1985)

3. Introduction
Marketing is a organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organizational and its stakeholders.
(AMA, 2004)

4. Product Definition
Goods B R A N D
Product
Services
Ideas

5. What Brand Means
A brand is a “name, term, sign, symbol, or design, or combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” (Keller, 2003)
A Brand is a perception resulting from experiences with, and information about, a company or a line of products. (Duncan, 2005)

6. What Brand Means
According to Interbrand, one of the top brand consulting firms in the world, a brand is “a mixture of tangible and intangible attributes, symbolized in a trademark, which, if properly managed, creates influence and generates value.” (Interbrand, 2002)

7. Branding
Branding, the process of creating a brand image that engages the hearts and minds of customers, is what separates similar products from each other.
Logos, which are distinctive graphic designs used to communicate a product, company, or organization identity.

8. Brand Image The Chernatony and McDonald Chart Tangible Intangible CORE
Quality perceptions
Value perceptions
Organization
Other user influences
Brand name
Reputation
Corporate image
Before
sales service
After
During
Delivery
Guarantees
Warrantees
Add-ons
Finance
Availability
Advice
Function
Design
Packaging
Features
Price
Efficacy
CORE
Tangible
Intangible
Source: Chris Fill and Tony Yeshin, 2001

9. Communication
Conceptually, communication is a fairly simple process. It involves someone (the source, which can be a person or an organization) creating and sending a message and another receiving that message.
The message is transmitted through a communication channel; both the message and channel are subject to interference called noise.
In interactive communication, the receiver responds, providing feedback to the sender or source.

10. The Communication Process
Who? Says what? By which means? To whom? With what effect? (Wilbur Schramm, 1960)

11. Media Media Outdoor Transit Newspaper Print Magazine Television
Mass Broadcast Radio
Billboard
Media Outdoor Transit
Banner
Inter- Group
personal Face-to-face
Interactive WWW, CD ROM, Kiosk, etc.

12. Communication Objectives
Knowledge
Attitude
Practice

13. Communication Strategies
Public Relations
CSR
Cognition
Advertising
Soft-sell
Interactive Marketing
Affection
Experiential Marketing
Hard-sell
Sales Promotion
Conation
Direct Marketing
Personal Selling

14. Marketing Communication
Marketing communication is a collective term for all the various types of planned messages used to build a brand – advertising, public relations, sales promotion, direct marketing, personal selling, packaging, event and sponsorships, and customer services. (Tom Duncan, 2005)

15. IMC Evolution The Four Evolutionary Stages of IMC:
Tactical coordination.
Redefining scope of marketing communication.
Application of information technology.
Financial and strategic integration.

16. Stages in IMC Evolution
Financial and Strategic Integration
Firm constantly monitor marcoms’ performance from a return on investment (ROI) perspective. Information, knowledge linked to an ongoing evaluation of each served segment on a global basis.
4th
Application of Information Technology
Maintain accessible data sources and build to globally segmented databases. Effectively incorporate data in communication planning and implementation to turn customer data into customer knowledge.
3rd
Redefining the Scope of Marketing Communication
Organizations gather extensive information about their customers and evaluating feedback. Also need to align with external agencies.
2nd
Tactical Coordinator of Marketing Communication
Requires high degree of interpersonal and cross-functional communication within and without the business. Led by the business, not external agencies.
1st
Source: Adapted the IMC Best Practice Report, 1998 APQC
Baseline

17. IMC Definition
IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – for example, general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact. (The American Association of Advertising Agency)

18. IMC Definition
Integrated marketing communication is a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication program over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences. (Don E. Schultz and Philip J. Kitchen, 2004)

19. IMC Definition
Integrated Marketing Communications (IMC) is a process for managing the customer relationships that drive brand value.
More specifically, it is a cross-functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven purposeful dialogue with them. (Tom Duncan, 2002)

20. Campaign Process Model
Development of databases and information technology.
Development of brand messages and media strategies.
Execution and implementation to create brand relationships.
Monitoring, evaluating and controlling brand relationships.
SWOT Analysis.
Result: Sales, profits, and brand equity.

21. IMC Process Model
Databases and Information Technology
SWOT Analysis, zero based planning (MC functions and media neutral)
Advertising, customer services, direct response, E-commerce events, packaging, personal selling, public relations, sales promotion, sponsorships, trade shows
Brand Messages (Strategic consistency of brand positioning, big creative idea)
Media-mass, niche, and interactive (Intrinsic and created brand contacts)
Cross-functional organization (Monitoring and evaluating brand relationships)
Brand Relationships (Customer acquisition, retention, growth)
IMC is an ongoing process that “spins off” sales, profits, and brand equity
(Duncan, 2002)
Sales, profits, and brand equity

22. IMC Management Eight Guiding Principles of IMC:
Become a customer-centric organization.
Use outside-in planning.
Focus on the total customer experience.
Align consumer goals with corporate objectives.
Set customer behavior objectives.
Treat customers as assets.
Streamline functional activities.
Converge marketing communication activities.

23. IMC Management 1. Become a Customer-Centric Organization:
The ultimate end user, customer, or consumer must be at the center of any type of integration.
For the purposes of IMC, a customer-focused (or customer-centric) organization is simply one that considers the ultimate purchaser or consumer of the product first, foremost, and always.

25. IMC Management 2. Use Outside-In Planning: Inside-Out Approach:
It starts with what the organization wants to achieve and then forces various activities into a series of steps that will hopefully produce the desired results.
Planned volume or financial goals drive the marketing and communication or spending levels.
If anticipated goals are achieved, the firm is then willing to use a portion of sales to buy further marketing and communication activities.

26. IMC Management 2. Use Outside-In Planning: Outside-In Approach:
The IMC alternative is to flip the inside-out model to create the outside-in approach.
Here, the marketing or communication manager views customers and prospects not as units of expense, but as income flows to the firm.
The goal is to manage the creation of demand and income flows rather than products and costs.

28. IMC Management 3. Focus on the Total Customer Experience:
Total customer experience encompasses how the product or services performs in the marketplace, how it is obtained, the capability of channel members to provide products in a timely and efficient manner, how customer services is delivered, and what type of social impact the firm makes in the community it inhabits.

29. IMC Management 4. Align Consumer Goals with Corporate Objectives:
Creative? Perhaps, yes. Effective marketing communication? Probably not.
IMC must go much further than traditional communications goals such as building brand awareness or recognition. It must achieve management’s financial goals, too.

30. IMC Management 5. Set Customer Behavior Objectives:
To acquire new customers.
To retain and maintain present customers.
To retain and grow sales volume or profit from existing customers.
To migrate existing customers through the firm’s product or services portfolio.

31. IMC Management 6. Treat Customers as Assets:
The customer, in most instances, is the primary unit that generates income flows for the organization.
Almost all the other activities and initiatives of the organization are really cost centers.
So, a key ingredient of the value-oriented IMC system is the understanding that marketing and communication are asset managers.
That is, they are or should be responsible for the initiation, continuation, and maintenance of customers, the source of the firm’s income flow.

33. IMC Management 7. Streamline Functional Activities:
One of the major challenges of achieving organizational integration is sorting through the tangle of functional structures and activities through which marketing and communication have developed.

34. IMC Management
Customers commonly says that the company is generally trying to do two things:
First, it is sending out messages that it hopes the customer will remember and use when he or she next goes to purchase products in that area.
Second, the company is sending out incentives, that is, offering some type of reward for doing something or following some type of behavior such as buying now rather than later, buying when an item is on sale, or going to the store to sample a new product.

35. IMC Management 7. Streamline Functional Activities:
Perhaps the greatest value of this collapse of marketing communication disciplines is that is forces the manager to think strategically rather than in terms of communication tactics.

36. IMC Management 8. Converge Marketing Communication Activities:
Until the mid-1990s, convergence was generally considered to involve the bringing together all of communication activities under a single umbrella.
Today, convergence has taken on a new meaning: the blending of traditional mar-com with electronic marketing and communication activities.