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Integrated Marketing
Communications
An Introduction (1)
Sunarto Prayitno
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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)
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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)
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Product Definition
Goods
B
R
Product
Services
A
N
Ideas
D
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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)
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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)
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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.
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Brand Image
The Chernatony and McDonald Chart
Quality
perceptions
Value
perceptions
Before
sales service
During
sales service
After
sales service
Function
Packaging
Organization
Guarantees
Design
Delivery
CORE
Tangible
Price
Warrantees
Source: Chris Fill and Tony Yeshin, 2001
Intangible
Features
Availability
Efficacy
Advice
Add-ons
Brand name
Other user
influences
Finance
Reputation
Corporate
image
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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.
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The Communication Process
Who? Says what? By which means? To whom? With what effect? (Wilbur Schramm, 1960)
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Media
Print
Mass
Media
Interpersonal
Interactive
Newspaper
Magazine
Television
Broadcast
Radio
Billboard
Outdoor
Transit
Banner
Group
Face-to-face
WWW, CD ROM,
Kiosk, etc.
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Communication Objectives
Knowledge
Attitude
Practice
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Communication Strategies
Public Relations
CSR
Cognition
Advertising
Soft-sell
Interactive Marketing
Affection
Experiential Marketing
Hard-sell
Sales Promotion
Conation
Direct Marketing
Personal Selling
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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)
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IMC Evolution
The Four Evolutionary Stages of IMC:
1.
Tactical coordination.
2.
Redefining scope of marketing communication.
3.
Application of information technology.
4.
Financial and strategic integration.
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Stages in IMC Evolution
Stages
4th
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.
3rd
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.
Redefining the
Scope of
Marketing
Communication
Organizations gather extensive information about their
customers and evaluating feedback. Also need to align
with external agencies.
Tactical
Coordinator of
Marketing
Communication
Requires high degree of interpersonal and crossfunctional communication within and without the
business. Led by the business, not external agencies.
2nd
1st
Source: Adapted the IMC Best Practice Report, 1998 APQC
Baseline
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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)
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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)
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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)
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Campaign Process Model
Development of databases and information
technology.
2. Development of brand messages and media
strategies.
3. Execution and implementation to create brand
relationships.
4. Monitoring, evaluating and controlling brand
relationships.
5. SWOT Analysis.
Result: Sales, profits, and brand equity.
1.
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IMC Process
Model
SWOT Analysis, zero
based planning (MC
functions and media
neutral)
Cross-functional
organization
(Monitoring and
evaluating brand
relationships)
IMC is an ongoing
process that “spins
off” sales, profits, and
brand equity
Databases and
Information
Technology
Advertising,
customer services,
direct response, Ecommerce 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)
Brand Relationships
(Customer
acquisition,
retention, growth)
Sales, profits, and
brand equity
(Duncan, 2002)
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IMC Management
Eight Guiding Principles of IMC:
1.
2.
3.
4.
5.
6.
7.
8.
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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