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Promotional Management
Chapter 1: Introduction to IMC
MKT 337: WSK
Introduction to IMC
CREATE
COMMUNICATE
DELIVER
EXCHANGE
Process for creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners and society at large
MARKETING
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Introduction to IMC
Marketing and the Marketing Mix
• 4 Ps of Marketing
• Promotion, one of the Ps
• All Ps must be combined and coordinated
• All focus on Promotion and not on other Ps – will not work
• Cohesive marketing strategy
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Introduction to IMC
INTEGRATED MARKETING
COMMUNICATIONS (IMC)
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What is an IMC?
Integrated Marketing Communication is a strategic business
process used to plan, develop, execute and evaluate
coordinated, measurable, persuasive brand communications
programmes over time with consumers, customers, prospects,
employees, associates and other targeted relevant external
and internal audiences.
MKT 337: WSK
Introduction to IMC
What is an IMC?
What is it?
strategic business
process
used to plan,
develop, execute and
evaluate
Plan,
develop,
execute &
evaluate
what?
coordinated,
measurable,
persuasive brand
communications
programmes over
time
with consumers,
customers,
prospects,
employees,
associates and other
external and internal
audiences.
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What is it
used for?
For whom?
Introduction to IMC
Reasons for the growing importance
1. Started to understand the value of strategic integration
2. Avoid duplication
3. Take advantage of synergy among promotional tools
4. Develop more efficient and effective marketing communications
programme
5. Maximise the returns on investment in marketing and promotion
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Introduction to IMC
The Role of IMC in Branding
• Brand Identity
– Combination of name, logo, symbols, design, packaging and
performance as well as the image and associations that come to mind
when consumers think about a brand
– Sum of all points of contacts with the consumers
• All IMC activities contribute towards the brand identity
– Advertising, Sales Promotion, sponsorship, websites, articles,
interaction with company rep,
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Introduction to IMC
The Tools for IMC
THE PROMOTIONAL MIX
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Definitions
• Promotion
– the coordination of all seller-initiated efforts to set up channels of
information and persuasion in order to sell goods and services (or
promote an idea)
• Promotional Mix
– The tools used to accomplish an organisation’s communications
objectives
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Introduction to IMC
Promotional Mix/IMC Tools
• Advertising
• Sales Promotion
• Public Relations
• Personal Selling
• Direct Marketing
• Digital/Interactive Media
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Introduction to IMC
Advertising
• Any paid form of nonpersonal communication about an
organisation, product, service or idea by an identified sponsor
• Mass media
• No opportunity for immediate feedback
• Reasons for importance
– Cost-effective to reach large numbers
– Tool for building brand equity by providing information and influencing
perception
• Create favourable and unique associations
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Classifications of Advertising
ADVERTISING TO CONSUMER MARKETS
• National Advertising
• Retail/Local Advertising
• Primary- versus Selective-demand Advertising
ADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS
• Business-to-Business Advertising
• Professional Advertising
• Trade Advertising
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Introduction to IMC
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Introduction to IMC
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Introduction to IMC
Direct Marketing
• Organisations communicate directly with target customers to generate a
response and/or a transaction
[no intermediaries]
– Database management, Direct Selling, Telemarketing, Direct-response ads
• Direct-response advertising
– Product is promoted through an ad that encourages the consumer to
purchase directly from the manufacturer
• Customer Relationship Management [CRM]
– The systematic tracking of customer preferences and behaviours and
modifying a product or service to meet individual needs and wants
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Introduction to IMC
Digital Marketing
• Most dynamic and revolutionary changes in marketing and IMC
• Interactive Media
– Two-way flow of communication whereby users can participate in and
modify content of the information they receive in real time
– Receive, alter, and share information and images; make inquiries;
respond to questions; and even make purchases online
• Marketers use internet as an advertising medium
– Banners, paid search
– Direct Marketing, PR and personal selling
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Digital Marketing (cont.)
• Social Media
– Online means of communication and interactions among people that are
used to create, share and exchange information, insights, experiences
– Facebook, Twitter, LinkedIn
• Smartphone revolution
– Third screen
– Target consumers specific to a their location/consumption situation
– Price offers depending on proximity to rival stores
– App-based businesses
• Examples: OLA cabs, OYO rooms. Airbnb, Uber cabs
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Digital Marketing (cont.)
• Interactive nature is the biggest advantage
• Evaluation of campaigns also much easier to measure
– Whether they clicked on the ad
– How long they spent on the page
– Did it lead to a purchase
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Examples of Digital Marketing
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Introduction to IMC
Examples of Digital Marketing
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Examples of Digital Marketing
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Example of Paid Search
• Type in ‘Online Grocery Shopping’
• See what comes up
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Sales Promotion (SP)
•
Marketing activities that provide extra incentives to the sales force, the distributors or
the end consumers and can stimulate immediate sales
•
Consumer-oriented SP
– targeted to the end user includes couponing, sampling, premiums, rebates contest,
sweepstakes and various POP materials
•
Trade-oriented SP
– Targeted towards intermediaries such as wholesalers, distributors or retailers
•
Reasons for recent shift to Sales/Trade Promotions from advertising
– Declining brand loyalty and increased sensitivity to deals
– Larger and more powerful retailers demanding more trade promotion support
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Introduction to IMC
Consumer-oriented Sales Promotion Examples
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Publicity/Public Relations
• Publicity
– Nonpersonal communication regarding an organisation, product, service
or idea not directly paid for or run under identified sponsorship.
– News story, editorial, announcement about an org or its products
• Techniques used to gain publicity
– Press release, press conference, feature articles, photographs, films and
video news releases
• Advantage – High credibility, low cost
• Disadvantage – Not always under control [Maggi/Melamine fiasco]
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Example of Publicity
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Publicity/Public Relations
• Public Relations
– The management function which evaluates public attitudes, identifies the policies
and procedures of an individual or organisation with the public interest, and
executes a programme of action to earn public understanding and acceptance
– Takes place when an org. distributes information in an attempt to control its image
– Managing relationships with investors, employees, suppliers, community,
government, consumers, etc.
• Activities include
– Special publications, Participation in community activities, Fund-raising,
Sponsorship of special events
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Example of PR (sponsorship)
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Personal Selling
• Person-to-person communication in which a seller attempts to assist
and/or persuade prospective buyers to purchase the company’s product
or service or to act on an idea
• Direct contact – face-to-face or through telecommunication
• Gives the seller flexibility to customise/modify
• Examples
– NIDO does door-to-door personal selling in order to convince mothers to
switch to their brand
– BRAC Bank agents knock on our doors at NSU to get faculty members to
subscribe to their credit cards
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IMC INVOLVES AUDIENCE
CONTACTS
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Contact/Touch Points
• Contact/Touch Point
– Each and every opportunity the customer has to see or hear about the
company and/or its brands or have an encounter or experience with
• Categories of Touch Points
– Company created touch points
– Intrinsic touch points
– Customer initiated touch points
– Unexpected touch points
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IMC Audience Contact Tools
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Control Vs Impact
• Not all touch points are equally effective
• Differ in regard to company’s ability to control them
• Advertising often dismissed
• Unexpected messages have third-party credibility
High
Unexpected
Customer-initiated
Relative
Impact
Intrinsic
Planned: Company-created
Low
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Ability to influence
High
Introduction to IMC
THE IMC PLANNING PROCESS
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IMC Planning Model
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Review of the Marketing Plan
• To begin with, firms must analyse where they stand
• Five basic elements in a marketing plan
1.
A detailed situational analysis of internal (marketing audit) and external
(competition and environment) factors
2.
Specific Marketing objectives that provide direction, a time frame and
mechanism for measuring performance
3.
Strategy that includes selection of target market and plans for the 4Ps
4.
Programme for implementing the marketing strategy, including
determining specific tasks to be performed
5.
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Monitoring and evaluating performance and providing feedback
Introduction to IMC
Promotional Programme Situation Analysis
• Internal Analysis
– Organisation of the Promotional Department
– Firm’s ability to implement promotional programme
• Agency Evaluation and Selection
– Review of the previous programme results
– Strength and weakness of the image of the firm/brand
– Strength and weakness of the product/service
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Promotional Programme Situation Analysis
• External Analysis
– Consumer Behaviour Analysis
– Market Segmentation and Target Marketing
– Market Positioning
– Competitors
– Marketing Environment Analysis
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Analysis of the Communication Process
• Analyse receiver’s response processes
– Low-involvement or high involvement
• Analyse source, message and channel factors
– Media Mix options and cost implications
• Establishing communication goals and objectives
– Communication Objectives: what the firm seeks to accomplish with its
promotional programme
– Different from Marketing Objectives: what is to be accomplished by
the overall marketing programme
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Budget Determination
– What will be the promotion cost?
– How will the money be allocated?
• Set tentative marketing communications budget
• Allocate tentative budget
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Developing the Integrated IMC
Programme
• Decisions about the role of each element of the promotion mix
– The coordination with one another
• Activities need to be performed to implement each element
• Procedures for evaluation and changes
• For example, advertising programme has its own set of objectives
and budget
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Introduction to IMC
‘Advertising’ as part of the IMC Programme
• Creative/Brand Strategy
– Basic appeal and message the advertiser wishes to convey to the
target audience (TA)
• Media Strategy
– Which communication channels will be used to deliver the message to
the TA
– Careful evaluation of Advantages and limitations, costs and
effectiveness for the TA required
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Introduction to IMC
Implementation of the Advertising Campaign
• Most large firms hire advertising agencies
– To plan and produce messages
– To evaluate and purchase media
• But with client’s approval
• Similar process takes for other elements of the IMC programme
• Advertising agencies do perform some of the other functions
• But firms hire specialist agencies as well (PR, sales promotion, etc.)
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Monitoring, Evaluation and Control
• Find out how well the programme is doing and why
• Problem could be the message or the media
• Must know reasons for the result in order to take further decisions
• Input crucial for subsequent IMC planning and strategy development
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Introduction to IMC
End of Chapter
MKT 337: WSK
Introduction to IMC