An Introduction to
Integrated Marketing
Communications
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Defining a Market
“a market is an aggregate
of people who, as individuals
or in organizations, have
needs for products in a
product class and who have
the ability, willingness and
authority to purchase such
products”
What is Marketing?
“is a societal process by which
individuals and groups obtain what
they need and want through creating,
offering and freely exchanging products
and services of value with others”
Source: Kotler (2003) p.9
Marketing as an
Exchange
Relationship
Something of Value I.e.
money, labour, goods
EX: money  electricity
Buyer
money  healthcare
vote  political party
Something of Value I.e.
goods, services, ideas
Seller
•
Marketing Involves
Products, Services,
Ideas
PRODUCTS
– Consumer goods,
durables
– Capital equipment (eg
Military)
• SERVICES
– Personal
– Business
• IDEAS
– Education
– The Church
Eras of Marketing
Production Era (1860s -1930s)
•
Sales Era (1930s-1950s)
Marketing Era (1950s - 1990s)
20??)
Internet Era (1990s-
The Marketing Mix
4 P’s
Product
Price
Promotion
Place
4 C’s
Customer needs and
wants
Cost to the customer
Communication
Convenience
Marketing Management
from Transactions...
“the management process responsible
for identifying, anticipating and
satisfying consumers’ requirements
profitability”
Source: Chartered Institute of
Marketing 1991
…to Relationship
Marketing
“...is to establish, maintain and enhance
relationships with customers and other
partners, at a profit so that the objectives
of both parties are met. This is achieved
by mutual exchange and the keeping of
promises. Such relationships are usually
but not necessarily always long-term.”
Source: Grönroos (1994) JMM p.355
What is Marketing?
Marketing is an
organizational function
and a set of processes for
creating, communicating
and delivering value to
customers and for
managing customer
relationships in ways that
benefit the organization.
Value
Relationship marketing
Mass customization
Customer relationship
management (CRM)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Peter Drucker (1973)
“Marketing is so
basic that it cannot
be considered as a
separate function ...
it is the whole
business seen from
the point of view of
its final result, from
the customer’s
point of view.”
The Growth of Advertising and Promotion
Expenditure in Billions of Dollars
Advertising
Outside U.S.
2004
U.S. Sales
Promotion
1980
U.S. Advertising
$0
$50
$100
$150
$200
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
$250
$300
$350
Coordinated Marketing Mix Elements
Build Image
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What is Integrated Marketing
Communication (IMC)?
Traditional Approach to Marketing
Communications
Point of
purchase
Special
events
Publicity
Media
Advertising
Public
relations
Direct
marketing
Sales
promotion
Packaging
Direct
response
Interactive
marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach
Packaging
Sales
promotion
Point of
purchase
Publicity
Interactive
marketing
Media
Advertising
Direct
marketing
Direct
response
Public
relations
Special
events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrated marketing
communications
…the whole is greater than the sum of the parts
Defining IMC
IMC is a strategic business
process used to plan, develop,
execute and evaluate coordinated,
measurable, persuasive brand
communication programs with
consumers, customers, prospects
employees and other relevant
external and internal audiences.
The goal of IMC is to
generate short-term
financial returns and build
long-term brand value.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Contemporary Perspective of IMC
Recognized as a business process
IMC
Importance
of relevant
audience
Multiple relevant
audiences
Demand for accountability and
Demand for accountability
Measurement of Outcomes
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Reasons for the Growing Importance of
IMC
From
Toward
Media advertising
Multiple forms of communication
Mass media
Specialized media
Manufacturer dominance
Retailer dominance
General focus
Data-based marketing
Low agency accountability
Greater agency accountability
Traditional compensation
Performance-based compensation
Limited Internet availability
Widespread Internet availability
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC and Branding
Brand Identity is a
combination of factors:
Name, logo, symbols,
design, packaging,
product or service
performance, and image
or associations in the
consumer’s mind.
IMC plays a major role
in the process of
developing and
sustaining brand
identity and equity.
2005 Brand Value
(Billions of Dollars)
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10. Mercedes
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Basic Elements of the
Promotion Mix
Advertisin
g
Sales
promotion
Direct
marketing
Publicity
Interactive
and PR
marketing
Sponsorship
Personal
selling