INTEGRATED MARKETING COMMUNICATION: concept, process, and application
Reza A. Nasution, PhD
Director of MBA Program
School of Business and Management
Institut Teknologi Bandung

MARKETING COMMUNICATION
• • Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly— about the products and brands that they sell.
• • Marketing communications represent the

CHANGES IN MARCOMM
SPENDING
Ads domination
(almost
100%)
Ads spending was reduced to be 75%
50% trade promo,
25% consumer promo, &
25% ads

TRADITIONAL MARCOMM
TOOLS

THE IMPORTANCE OF
INTEGRATION
Marketing communication activities must be integrated to deliver a consistent message and achieve the strategic positioning desired.

COMMUNICATION PROBLEMS
• Level A: technical = transmission
• Level B: semantic = message representation
• Level C: effectiveness = customer behavioral change

HAVE YOU EVER EXPERIENCED
THESE?
• You sent an e-mail to a friend and got a response that you did not expect. You decided to talk to him/her directly and eventually he/she understood your intention.
• You received a flyer from a reputable institution that did not match the image of the institution.
• You found different FB accounts for a single institution or company and they look different to each other.

INTEGRATED MARKETING
COMMUNICATION
Management and control of all marketing communication activities =
“One Voice, One
Look”

• Honda Jazz
• Gudang Garam International

• Strategic integration between brand personality and its communication through any media that entirely build the brand personality
• Analysis, choice, implementation and strategic control of all marketing communication elements that help companies to create transaction with their customers efficiently, economically and effectively
• The essence of IMC is a call to make coordination and strong brand strategy , which is driven by customer feedback da t a

DIFFERENT FACETS OF
INTEGRATION
• Vertical
• Horizontal
• Marketing mix
• Communication mix
• Creative design
• Internal-external
• Financial

1. Cross-functional strategic planning
2. Mission marketing
3. Interactivity
Source: Reid, 2005

Organizational
Prerequisites
IMC
Antecedents
IMC Practices
IMC
Performance

ORGANIZATIONAL
PREREQUISITES OF IMC
• Cultural predisposition to cooperate
• Market and brand orientation
• Market and consumer-sensing capability
• Practice of ‘ informed approach ’
• Top management support
Source: Madhavaram, 2004 and Reid et al., 2005

•
•
•
Source: Adapted from Kitchen and Schultz, 2000

6 criteria to check tactical integration:
1.
Coverage
2.
Contribution
3.
Commonality
4.
Complementarity
5.
Versatility
6.
Cost

Identify target audience
Evaluate effectiveness
Analyze SWOTs
Determine the budget
Determine MC
Objective
Develop strategies and tactics

INTEGRATED MARKETING
COMMUNICATION PLAN
Identify target audience
Analyse SWOTs
Determine MC
Objective
Analyse the various customer and prospect segments and determine which to target and to what extent
Summarize internal (strengths, weaknesses) and external
(opportunities, threats) brand – related conditions with respect to communicating with the selected target; determine the success of the MC functions and media used in preceding years
Decide what marketing communication programmes should accomplish

Develop strategies and tactics
Determine the budget
Evaluate effectiveness
Determine which MC functions should be used and to what extent . Choose brand messages and means of delivery.
Support each strategy with a rationale. Decide when each
MC Programme will begin and end
Decide what the overall MC budget will be and then how money will be divided among the selected MC functions
Conduct ongoing MC tests in an effort to find more effective ways to do IMC. Monitoring and evaluate all the IMC efforts to determine effectiveness and accountability

MC
Objectives
Regulations
Competitors’
MC tactics
Products and
Brand Factors
IMC
Strategy
& Tactics
Buyers
Readiness
Stage
Buyer Behavior
Characteristics of MC Tools

• JAKARTA EYE CENTER

• Duncan and Moriarty’s IMC Miniaudit is used to assess marcomm integration
• The audit consists of 5 aspects:
1. Interactivity
2. Mission marketing
3. Organizational infrastructure
4. Strategic consistency
5. Planning and evaluation

• The purpose of Pre-Test is to measure the knowledge of customer about the brand before
IMC is conducted.
• The analysis includes IMC concept, creative strategy, brand awareness, brand knowledge, and perceived positioning.
• The method used are Focus Group Disscusion
(FGD) and Survey

• Holm (2006)
– Strategist lack of understanding about communication theory and practice
– Tactical persons lack of strategic management process and practice
– The intersection area between the two is very small
• Kotler et al. (2009)
– Large companies employ several communications specialists to work with their brand mangers who know comparatively little about the other communication tools.
– Many global companies use a large number of ad agencies located in differing countries and serving different divisions.

Activity & Program
Metrics
• Marketing Investment
• Program Quality
• Clarity
• Relevance
• Distinctiveness
• Consistency
• Channel expansion
Customer Perceptions &
Behavior
• Brand awareness
• Brand associations
• Perceived quality
• Brand Loyalty
Market
Performance
• Sales
• Market share
• Price premium
• Profitability
• Price elasticity
• Brand penetration
Brand Value Chain
“Marketers can judge marketing communications according to its ability to build brand equity and drive brand sales.” ( Kotler et al ., 2009)

 Marketing communications is GREAT when :
- People remember the ad and the brand
- The promotion draws people into the store
- The store display motivates people to try the product
 Marketing communication DOES NOT work, when :
- The ad is forgettable or point is unclear
- No one remember the promotion
- The direct email piece gets thrown away without being opened

• Sales-related performance
• Brand-related performance
• Customer satisfaction

• Sales
• Market share
• Sales margin
• Price premium
• Price elasticity
• Brand penetration index

Honda Beat
1200000
1000000
800000
600000
400000
200000
208490
0
2008
Source : okezoneautos
426935
2009
712007
2010
1033928
2011
Semen Tiga Roda

Academic Models Practical Models
Generic/Basic Models:
Aaker (1991,1996)
Keller (1993, 1998,
2003)
Campbell (2002)
Netemeyer (2004)
Specific Models
(adapted generic models)
Brand Asset Valuator
Brand Dynamics
Equity Engine

(Source: Kotler et al ., 2009)

2000
1800
1600
1400
1200
1000
800
600
400
200
0
2011 2011,5 2012 2012,5 2013 2013,5 2014 2014,5 2015 2015,5 2016

EVALUATION, CONTROL AND
REVISION
• Driving forces:
– Internal dynamics
– External dynamics:
• Macro environment dynamics
• Industry dynamics
• Market dynamics
• Evaluation and control should be done periodically and when necessary
• Revision should be done promptly and impacts should be measured properly
• Sometimes, all IMC planning steps should be repeated entirely

For further discussion please send e-mail to reza@sbm-itb.ac.id