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Chapter 1
AN OVERVIEW OF INTEGRATED
MARKETING COMMUNICATIONS
Chapter Objectives
1. Appreciate the practice of marketing communications and recognize the marcom tools used by
practitioners.
2. Differentiate among the following terms: marketing mix, marketing, communications,
marketing communications, the promotional mix, and integrated marketing communications.
3. Describe the philosophy and practice of integrated marketing communications (IMC) and the
five key features of IMC.
4. Recognize the activities involved in developing an integrated communications program.
5. Identify obstacles to implementing an IMC program.
6. Understand and appreciate the components contained in an integrative model of the marcom
decision-making process.
Chapter Overview
This chapter discusses the nature of marketing communications, particularly at the brand level.
Whereas the “4P” characterization has led to widespread use of the term “promotion” for
describing communications with prospects and customers, the term marketing communications
(marcom) is preferred by most practitioners and educators, and it is used to refer to the collection
of advertising, sales promotion, public relations, event marketing, and other communication
devices; comparatively, the term promotions is used to refer to sales promotions.
Integrated marketing communications (IMC) is the philosophy and practice of carefully
coordinating a brand’s sundry marketing communication elements, and five key features of IMC
are discussed: (1) start with the customer or prospect; (2) use any form of relevant contact or touch
point; (3) speak with a single voice; (4) build relationships; and (5) affect behavior. Changes in
marcom practices as well as obstacles to implementing IMC are given.
The latter portion of the chapter describes a model of the marketing communications
decision-making process. The model includes fundamental decisions (i.e., targeting, positioning,
setting objectives, and budgeting), implementation decisions (i.e., mixing elements, creating
messages, selecting media, and establishing momentum), expected outcomes (i.e., enhancing
brand equity and affecting behavior), and program evaluation.
The chapter appendix provides information on important U.S. trade associations in the marketing
communications field.
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Chapter Outline
I.
Introduction
All firms employ marketing communications (marcom) to one degree or another. The
focus may be directed at consumers (B2C), or focused on customers of other businesses
(B2B).
II.
Marketing Communications Objectives and Terminology
All organizations (i.e., B2B, B2C, not-for-profit) use various forms of marketing
communications to promote their offerings and achieve financial and nonfinancial goals.
Companies have a variety of general objectives for their marcom programs including
informing and persuading customers and inducing action from customers. The primary
forms of marketing communications include:
 traditional mass media advertising
 online advertising
 store signage and point-of-purchase communications
 direct-mail literature
 marketing-oriented public relations and publicity releases
 sponsorships of events and causes
 presentations by salespeople
 various collateral forms of communications devices.
The marketing mix includes product, price, place, and promotion. The term,
communications, refers to the process whereby commonness of thought is established and
meaning is shared between individuals or between organizations and individuals. Figure
1.1 illustrates this idea in a Social Media Venn Diagram. Marketing is human activity
directed at satisfying needs and wants through exchange processes. Marketing
communications represents the collection of all elements in an organization’s marketing
mix that facilitate exchange by establishing shared meaning with its customers. All
marketing mix variables can communicate with customers. Further marketing
communications may be intentional or unintentional.
III.
Promotional Mix Elements
The promotional mix elements include advertising, public relations, sales promotion,
personal selling, direct marketing, and online marketing/social media. Advertising is any
paid form of non-personal communication of ideas, goods, or services by an identified
sponsor. This includes traditional mass media outlets such as television, magazines,
newspapers, and out-of-home. Public relations is an organizational activity involved with
fostering goodwill between a company and its various publics. Sales promotion consists of
all promotional activities that attempt to stimulate short-term buyer behavior. It may be
directed toward the trade or toward the end consumer. Personal selling is paid,
person-to-person communication in which a seller determines needs and wants of
prospective buyers and attempts to persuade these buyers to purchase the company’s
products or services. Direct marketing represents an interactive system of marketing which
uses one or more advertising media to effect a measureable response. Direct-response
advertising involves the use of any of several media to transmit messages that encourage
buyers to purchase directly from the advertiser. Online marketing is the promotion of
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product and services over the Internet. Social media marketing represents marketing
activities conducted using online social communities, channels and services as the venue.
Figure 1.2 illustrates the promotional mix.
IV.
The Primary Tools of Marketing Communications
Table 1.1 provides a listing of possible marketing communication tools.
V.
The Integration of Marketing Communications
Mountain Dew’s marketing communications is described as an example of an integrated
communications plan.
A. Why Integrate?
Organizations have traditionally handled communication tools as separate, specialized
practices within different units of the organization.
B. IMC Practices and Synergy
IMC is worth practicing because it can create synergy; in other words, multiple
methods in combination with one another yield more positive communication results
than do the tools used individually.
C. Definition of IMC
IMC is the coordination of the promotional mix elements with each other and with the
other elements of the brands’ marketing mix (product, place, price) such that all
elements speak with one voice.
VI.
Key IMC Features
The five key features of IMC are listed in Table 1.2.
A. Key Feature #1: IMC Should Begin with the Customer or Prospect
The marcom process should start with the customer or prospect and then work back
(“outside-in” approach) to determine those communication methods that will best serve
the customers’ information needs and motivate them to purchase the brand.
1. Consumers in Control
Consumers are increasingly active participants in the marcom messages to which
they pay attention by choosing when, how, and where they view these messages.
2. Reduced Dependence on the Mass Media
Marcom should use the channels which reach people where, when, and how they
wish.
B. Key Feature #2: Use Any Form of Relevant Contact
Select those tools that are most appropriate for the communications objective at hand.
1. Touch Points and 360-Degree Branding
The IMC objective is to reach the target audience efficiently and effectively using
appropriate touch points.
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C. Key Feature #3: Speak with a Single Voice
The brand’s assorted communication elements must all strive to present the same
message and convey that message consistently across diverse message channels, or
points of contact. The single-voice principle involves selecting a specific positioning
statement for a brand. A positioning statement is the key idea that encapsulates what a
brand is intended to stand for in its target market’s mind and then consistently delivers
the same idea across all media channels.
D. Key Feature #4: Build Relationships Rather Than Engage in Flings
A relationship is an enduring link between a brand and its customers.
1. Loyalty Programs
Can be used to build brand/customer relationships with frequency, and loyalty.
2. Experiential Marketing Programs
Involve creating brand sponsored special events and unique venues that are
relevant to consumer’s life and lifestyle.
E. Key Element #5: Don’t Lose Focus of the Ultimate Objective: Affect Behavior
A final IMC feature is the goal of affecting the behavior of the target audience.
F. Obstacles to Implementing the Key IMC Features
Few providers of marketing communication services have the far-ranging skills to plan
and execute programs that cut across all major forms of marketing communications.
VII.
The Marketing Communications Decision-Making Process
Figure 1.3 is a framework conceptualizing the various types of practical brand-level
marcom decisions and the outcomes desired from those decisions. The model consists of a
set of fundamental decisions, a set of implementation decisions, and program evaluation.
Fundamental decisions include targeting, positioning, setting objectives, and budgeting
and these influence the implementation decisions regarding the mixture of
communications elements and the determination of messages, media, and momentum. The
expected outcomes from these decisions are enhancing brand equity and affecting
behavior. The objective is to enhance brand equity, the goodwill that an established brand
has built up over its existence.
A. Fundamental Marcom Decisions
1. Targeting
Allows marketing communicators to deliver messages more precisely and to
prevent wasted coverage to people falling outside the intended audience.
2. Positioning
Represents the key feature, benefit, or image that it stands for in the target
audience’s collective mind.
3. Setting Objectives
Ensures that decisions are grounded in the underlying goals, or objectives, to be
accomplished for a brand.
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4. Budgeting
Involves allocating financial resources to specific marcom elements to accomplish
desired objectives. Different methods include:
 Top-down budgeting (TD) – senior management decides how much each
subunit receives.
 Bottom-up budgeting (BU) – managers of subunits (i.e., product category level)
determine how much is needed to achieve their objectives, and these amounts
are then combined to establish the total marketing budget.
 Bottom-up/top-down process (BUTD) – subunit managers submit budget
requests to a chief marketing officer, who coordinates the various requests and
then submits an overall budget to top management for approval.
 Top-down/bottom-up (TDBU) – top managers first establish a total size of the
budget and then divide it among the various subunits.
 BUTD process is the most frequently used.
5. A Concluding Point
All marketing communications should be (1) directed to a particular target market,
(2) clearly positioned, (3) created to achieve a specific objective, and (4)
undertaken to accomplish the objective within budget constraint.
B.
Marcom Implementation Decisions
The fundamental decisions described are conceptual and strategic. The implementation
decisions are practical and tactical.
1. Mixing Elements
Refers to the choice of exactly how to allocate resources among the various
marketing communications tools. Marketing communications-mix decisions
constitute an ill-structured problem because there is no way to determine the
mathematical optimum allocation between advertising and promotion that will
maximize revenue or profit. Figure 1.4 illustrates a buy-one, get-one free
promotional.
2. Creating Messages
Refers to the creation of messages in the form of advertisements, publicity releases,
promotions, package designs, social media, and any other form of marcom
message.
3. Selecting Media
Involves choosing from all the different message transmission alternatives (e.g.,
selling, TV, etc.).
4. Establishing Momentum
Refers to selecting the speed of movement with which the messages are deployed.
The effectiveness of each message form requires both a sufficient amount of effort
and continuity of that effort.
C. Marcom Outcomes
Outcomes are twofold: enhancing brand equity and affecting behavior (each influences the
other). Figure 1.3 displays a double-headed arrow between these outcomes.
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D. Program Evaluation
This final step in the process is accomplished by measuring the results of marcom efforts
against the objectives that were established at the outset. There is an increasing demand for
accountability. Measures of communication outcomes include brand awareness, message
comprehension, attitude toward the brand, and purchase intentions.
Chapter Features
Let’s Check In! Place-Based Apps, Mobile Scanning Devices, and Checking-In
with Your “Friends”
Facebook has launched a placed-based “app” (application) to compete with Foursquare that allows
mobile device users with a Facebook account to share their exact location and find the
whereabouts of their friends. Although the name may be evolving from Facebook “Places” to
Facebook “Nearby Friends,” the social media network is committed to location-based services. It
joins other such services used by smartphone users, such as Foursquare, Gowalla, Google
Latitude, Loopt, Yelp, etc. to shop, communicate, socialize, and play games. Also, business
owners, such as restaurant and retail managers, can search for, claim, and verify their locations on
the Facebook sites, and then advertise a Facebook listing. Will this meet the needs of consumers?
Creating a Pepsi Commercial in China
To reach China’s Internet-savvy youth and to engage their interest in Pepsi, the Pepsi Creative
Challenge contest was created. Consumers were invited to develop a TV spot that would star Jay
Chow (also spelled Chou), a superstar throughout Asia. Contest entrants submitted scripts for a
commercial, and other consumers logged on to a website then read and scored the scripts. The best
ideas from highest-scoring entries were chosen and 15 finalists were identified. These scripts were
posted online, and consumers voted for the best script. The winner received $12,500 and an
opportunity to participate in the production of the commercial. More than 27,000 commercial
scripts were submitted. A Pepsi Exec said “The reason why digital interactive marketing
campaigns like the Pepsi Creative Challenge work is that they add value by creating a mechanism
for consumers to get involved.” Of course, “getting involved” is simply another way of saying that
consumers’ control over advertising content is increasing.
The Laundry Hanger as an Advertising Touch Point
Reaching large numbers of men with advertising messages is often difficult. Hanger Network
arranges with laundry-supply firms to make and distribute laundry hangers carrying advertising
messages for distribution in dry cleaners in the U.S. Mitchum deodorant used hangers as part of a
multimedia campaign for its new brand of men’s deodorant. In a pretest of the hanger ads in two
cities the brand experienced double-digit growth in consumer brand awareness and purchase
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intentions. Hanger Network’s ads have been used in approximately 40 percent of the 25,000 dry
cleaning outlets in the United States.
Answers to Discussion Questions
1. Explain how your college or university uses marketing communications to recruit students.
Answer:
Colleges and universities create comprehensive marcom plans to create awareness and
enhance their brand identity with prospective students. Most continue to use traditional
advertising methods to reach a mass audience, such as view books and brochures. These
provide broad overviews of the programs and opportunities that their school gives students.
Some will have regular sections in local newspapers for specific coverage of campus activities.
Many schools attempt to maximize public relations opportunities by publicizing events,
activities, and other newsworthy achievements on their campus through news reporting
agencies. Event marketing involves sponsoring an activity that will provide positive exposure
for the advertiser. The university could jointly sponsor career carnivals at high schools and
participate with a booth staffed with university representatives to answer students’ questions
about the type of education required for different careers. The booth could be supplied with
university entrance applications and representatives could encourage students to apply for
admission. Other schools may use recruiters as a personal selling tool to visit on a more
personal level with students in key courses to recruit for specific majors. Recruiters may work
with faculty in high schools to visit classes, such as a business, accounting, or entrepreneurship
class, to speak to the students about career opportunities in those areas of study. The recruiter
may also then have the opportunity to speak about degrees at their college or university that
can prepare students for such careers. Increasingly, colleges and universities are using the
internet and other interactive media to reach prospective students with virtual tours of campus,
Facebook and other online social networks for prospective students, and internet sites
dedicated to prospective students with carefully presented information to answer virtually any
question a prospective student (and their parent) might have about the school.
2. The combined use of different marcom tools—such as advertising a brand on TV along with
sponsoring an event—can produce a synergistic effect for a brand. What does the concept of
synergy mean in this context? Provide a practical illustration of how two or more marcom tools
when used in combination are capable of producing results greater than the sum of their
individual contributions.
Answer:
While answers will vary, it is imperative that students understand that the payoff from IMC is
synergy, which means that multiple methods in combination with one another yield more
positive communication results than do the tools used individually.
3. Explain what it means to say that the consumers are in control of marketing communications.
Provide an example from your own experience that supports the contention that marcom is
becoming increasingly consumer-centric.
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Answer:
Answers will vary but students should understand that consumers are not simply passive
recipients of marcom efforts but increasingly active participants, choosing when, where, and
how they receive marcom messages.
4. What steps can marketing communicators take to allow consumers to exercise their control of
when, where, and how they receive brand messages? Provide specific examples to support
your answer.
Answer:
Using technologies such as the Internet and the other electronic media consumers seek the
information about product services that they want—via online searches, blogging, emailing,
text messaging, and social networking in outlets such as Facebook and YouTube—rather than
being mere captives of the messages that marketing communicators want them to receive. As
marketers, it is important to create sites that target these consumers and provide them with
opportunities to engage in brand centric interactions.
5. Based on your experiences and those of close friends with whom you discuss such matters,
what might be the future role of social networking outlets (e.g., Facebook and YouTube) in
disseminating brand information? On the basis of your experience, is most brand-related
information that appears on these sites positive or negative?
Answer:
Answers will vary. Students should understand the increasing role that these relatively new
media play in shaping consumers understanding and their attitudes about brands.
6. Explain the meaning of 360-degree branding. What are the advantages and potential
disadvantages of such a practice?
Answer:
360-degree branding suggests that a brand should be everywhere the target market goes. The
brand message should be at every possible contact point with the target audience. The
advantage of this approach is it allows them to use whatever information about the brand is
most useful to them. The potential disadvantages include burnout or over exposure with a
message to the extent that the target audience becomes numb or uninterested with the brand.
7. The following quote from an advertising executive appeared in the chapter in the section under
key IMC feature #2: “At the end of the day, [marcom agencies] don’t deliver ads, or direct mail
pieces, or PR and corporate identity programs. We deliver results.” Explain what you think this
executive meant in making this statement.
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Answer:
The specific tools of marcom that are used to promote a brand are less important than the
results that the combination of tools used by an agency delivers. Consumers do not respond to
the tools, they respond to the message that the tool communicates. If the message resonates
with the target audience, they should be moved to the desired action or intent of the message.
8. One key feature of IMC is the emphasis on affecting behavior and not just its antecedents (such
as brand awareness or favorable attitudes). For each of the following situations, indicate the
specific behavior(s) that marketing communications might attempt to affect: (a) your
university’s advertising efforts; (b) a professional baseball team’s promotion for a particular
game; (c) a not-for-profit organization’s efforts to recruit more volunteers; and (b) Gatorade’s
sponsorship of a volleyball tournament.
Answer:
An objective of marketing communications for each of the above could be:
a. High school students could obtain, fill out, and send in applications for admission.
b. Individuals who represent a group call an 800 number, order tickets for the game, and pay
for them using a charge card.
c. Individuals call a phone number and inquire about participation in volunteer activities.
Individuals could submit donations as a result of a direct-mail solicitation.
d. Individuals purchase a bottle of Gatorade for home consumption or attend the tournament
and are exposed to Gatorade signage.
9. Assume you are in charge of advertising a product that is marketed specifically to college
students. Identify seven contact methods (include no more than two forms of mass media
advertising) you might use to reach this audience.
Answer:
1. Sponsor a school activity, such as a sporting event, Greek activity, academic club, or
intramural event.
2. Advertise on the university TV and/or radio channel.
3. Advertise in a school publication, such as the school newspaper or yearbook.
4. Advertise in areas that are popular with college students, such as the local eateries, bars, or
even the local laundry mat.
5. Publish and distribute guides that are of interest to students, such as how to choose a
graduate program or how to select a career.
6. Produce and distribute give-aways that are of interest to students, such as “cool coffee
mugs, beverage containers, even reusable grocery bags or laundry bags.
7. Visit classrooms with presentations on how to write a resume or how to start your career
search.
8. Post signage on bulletin boards in dorms, classroom buildings, and other common spaces
frequented by students.
10. Objectives and budgets are necessarily interdependent. Explain this interdependency and
provide an example to support your point.
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Answer:
The tasks a manager hopes to accomplish are necessarily constrained by the amount of
available resources. Similarly, budgets should be established in view of the objectives that
must be accomplished—more ambitious objectives require larger budgets. Hence, both of
these general decisions require close coordination.
Student-type example: “I want to obtain an MBA degree from a prestigious institution;
however, my present finances won’t allow me to accomplish this objective, so I’ll have to work
for a year or so to accumulate enough funds to support my education.” Another way to state
this: “Although I’d like to get an MBA degree from a prestigious institution, my finances
won’t afford it; therefore, I need to revise my objective and attend a lesser institution.”
11. Brand positioning and targeting also are necessarily interdependent. Explain this
interdependency and provide an example to support your point.
Answer:
A brand’s position represents the key feature, benefit, or image that it stands for in the target
audience’s collective mind. A brand’s positioning statement is the central idea that
encapsulates a brand’s meaning and distinctiveness vis-à-vis competitive brands in the product
category. Positioning decisions are made with respect to intended targets, and targeting
decisions are based on a clear idea of how brands are to be positioned and distinguished from
competitive offerings. An example to illustrate this interdependency is the promotion of a
university. A message targeted to parents would most likely feature different benefits than one
targeted to high school students. Parents might be more interested in the ranking of the school,
safety for their children, and placement opportunities. Students might be more interested in
social aspects of college life, such as football and Greek life.
12. What is the distinction between top-down (TD) and bottom-up (BU) budgeting? Why is BUTD
used in companies that are more marketing oriented, whereas TDBU is found more frequently
in finance-driven companies?
Answer:
TD budgeting is used when senior management decides how much each subunit should
receive. BU budgeting takes place when managers of subunits determine how much is needed
to achieve their objectives, and these amounts are then combined to establish the total
marketing budget. BUTD is used in marketing-oriented firms because lower-level managers
(e.g., sales managers) know the market better than senior management and thus are in a better
position to ascertain how much is needed to fend off competitive thrusts and achieve
objectives. In financially-oriented firms, objectives are typically set at top organization level,
which makes setting budgets at the top compatible with the set objectives.
13. Why do you think that the trend in marcom budgeting is toward increased expenditures on
promotions and reduced advertising spending?
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Answer:
Due to the increased emphasis on affecting behavior and accountability, sales promotion is the
marcom tool most likely to affect behavior, and results can be measured more easily than those
for other forms of marcom, such as advertising.
14. Explain the concept of momentum, and offer an account as to why momentum is important for
a specific brand of your choosing
Answer:
The word momentum refers to an object’s force or speed of movement—its impetus. The
effectiveness of marcom efforts requires both a sufficient amount of effort and continuity of
that effort. Red Bull, for example, has no differential advantage other than its brand name. The
product easily could be (and is being) copied. Momentum is using marcom to keep the brand in
consumers’ minds and reinforce existing associations with the brand.
15. Assume you are in charge of fund-raising for an organization on your campus—a social
fraternity or sorority, a business fraternity, or any other suitable organization. It is your job to
identify a suitable project and to manage the project’s marketing communications. For the
purpose of this exercise, identify a fund-raising project idea and apply the subset of the model
involving fundamental decisions. In other words, explain how you would position your
fund-raising project, whom you would target, what objective(s) you would set, and how much
(ballpark figure) you would budget for marcom efforts.
Answer:
The fundamental decisions required in the marcom decision process include: targeting,
positioning, setting objectives, and budgeting. An example of a fund-raising project could be
to raise awareness of and funds for the local boys and girls club. Students should state who
their target audience will be for their project (e.g., other students, community at large, local
businesses, etc.). Along with that, they must determine the positioning statement, which is the
central idea that encapsulates the project’s meaning and distinctiveness vis-à-vis other
competing fund-raising activities. Students must then set objectives for their fund-raising
project, such as a dollar amount they wish to raise. Finally, they need to determine how much
to budget for marcom efforts. One way is to use the bottom-up approach and determine how
much is needed to achieve their objective. Another way is to use the top-down approach and
ask the officers of their organization for an amount they can have to budget for their activities.