Integrated Marketing

Communication
Unit 1
 Neil Borden
• Since the first propose of marketing mix of 12
marketing variables by Neil H. Borden, the
marketing mix have developed in 1960s. The idea
of marketing mix was widely used to help with a
business. A business can succeed with carry out
all these process properly of marketing mix.
• However, it is difficult to a company use 12
marketing variables propose by Mr. Borden. So
that E. Jerome McCarthy developed the
marketing mix into "4Ps". The 4Ps model is
known as price, place, promotion and product.
 4Ps to 4 Cs(Lauterborn's)
• Product → Commodity
• Price → Cost
• Promotion → Communication
• Place → Channel
 4Ps to 4As
• Product to Acceptability
• Price to affordability
• Place to accessibility
• Promotion to awareness
 Booms and Bitner
• 7 Ps
Source: KPMG 2014
 Another study by Indian Brand Equity
Foundation
• India’s advertising industry is expected to grow at a
rate of 16.8 per cent! year-on-year to Rs. 51,365
crore (US$ 7.54 billion) in 2016, maintained by
positive industry sentiment and a strong GDP
growth of 7 per cent and above.

• Print contributes a significant portion to the total

advertising revenue, accounting for almost 41.2 per
cent, whereas TV contributes 38.2 per cent, and
digital contributes 11 per cent of the total revenue.
Outdoor, Radio and Cinema make up the balance 10
per cent.
• The online advertising market in India is expected to
touch Rs 3,575 crore (US$ 538.09 million) in 2015 from Rs
2,750 crore (US$ 413.92 million) in 2014. Of the current
Rs 2,750 crore (US$ 538.09 million) digital advertisement
market, search and display contribute the most - search
advertisements constitute 38 per cent of total
advertisement spends followed by display advertisement
at 29 per cent, as per the study.

• The Internet's share in total advertising revenue is

anticipated to grow twofold from eight per cent in 2013
to 16 per cent in 2018. Online advertising, which was
estimated at Rs 2,900 crore (US$ 436.50 million) in 2013,
could jump threefold to Rs 10,000 crore (US$ 1.51 billion)
in five years, increasing at a compound annual rate of 28
per cent.
New Realities in AD world
Contd…..
 Promotion and Marketing
• Promotion is intended to further the
objectives of any organization.

• It makes use of various tools to perform four

essentials roles
• INFORMING (Demo/Presentation—etc.)

• PERSUADING

• REMINDING

• REINFORCEMENT
Traditional Marketing Communication
Finne and Granross(2009)
 Importance of IMC
• Driver of competitive advantage.
• Integration of Marketing communications mix
using strengths to off set weakness.
 IMC Defined (Schultz, 1993)
American Association of Advertising Agencies 4As
• A concept of marketing communication
planning that recognizes the added value of a
comprehensive plan that evaluates the
strategic roles of a variety of communication
disciplines (for example advertisement, direct
response, sales promotion, personal selling ,
PR and direct marketing) and combines these
disciplines to provide clarity, consistency and
maximum communication impact.
 Shimp, 2000
• The primary goal of IMC is to affect behavior through
directed communication.
• The process should start with the customer or prospect
and then work backward to the brand communicator.
• IMC should use all forms of communication and all
sources of brand or company contacts as prospective
message delivery channels.
• The need for synergy is paramount with coordination
helping to achieve a strong brand image.
• IMC requires that successful marketing
communications needs to build a relationship between
the brand and the customer.
 Duncan, 2002
• 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.
 Marketing Communication Mix
(Promotion Mix)
• Advertising
• Personal selling
• Sales Promotion
• Public relation
• Direct Marketing
AND more recently
Digital and social media based advertisements
 Advertising
• Advertising is any paid form of non personal
communication of ideas / goods / services/
organizations --- by an identified sponsor

• The most familiar outlets for ads are Broadcast,

Print , Billboards – T shirts and recently internet
.
 Sales Promotion

• Sales promotion is sponsor funded, demand

simulating activity designed to support
advertising and facilitating personal selling.

• When the sales promotion is directed to the

members of the channel, it is called as TRADE
PROMOTION
• Sales promotion is an incentive to buy and the
advertisement is a reason to buy.
 Personal Selling

• It is the direct presentation of a product/

service to a prospective customer by
representative of the organisation selling it.
 Direct Marketing

• Direct Communication with carefully targeted

individual consumers – the use of telephone,
mail, fax, e- mails, internet –and other tools to
communicate directly with specific consumers
 Public Relations
• It encompasses wide variety of communication efforts
to contribute to generally favourable attitudes and
opinions towards an organization and its products
Unlike the advertising and sales promotion it does not
include a specific sales message.
Public relation can take many forms including news letter,
annual report, lobbying and support of many bodies.

Publicity ----- is a special form of PR that involves new stories about

an organisation or its products.
News release, Press conference, Photo publication & Exhibition ---
etc
Integrated Marketing Communication
• The concept under which the company
carefully integrates its many communication
channels to deliver a clear, consistent and
compelling message about the organization
and its products.
 IMC
Personal
Advertising
Selling

Direct
PR
Marketing

Sales
Promotion

How can we reach our customers but also how can we find ways
to let our customers reach us?
 IMC Elements
• An awareness of the target audience’s information
source, as well as their media habits and
preferences.

• An understanding of what the audience knows and

believes that relates to the desired response.

• The use of mix of promotional tools, each with

specific objectives but all linked to a common
overall goal.
• A promotional effort in which personal selling,
advertising, sales promotion, PR and direct
Marketing are coordinated in order to
communicate a consistent message.

• A carefully timed, continuous flow of

information adapted to the audience’s
information needs.
 Caemmerer, 2009
Situational Analysis

Identification of Opportunities

Agency Selection

Campaign Development and Implementation

Campaign Evaluation

Future Planning
Situational Analysis

Political

Market Regulatory

Organiz PRESTCOM Economic

ational

Compet
itive
Social
Technol
ogical
 The Planning Cycle
Results Feedback

Are we If not,
there? why not?
Situation
Let’s get Analysis
Implementation
there
Market Where are
Consumers we?
How do we Plan
get there?

Where do
Where could
We want
we be?
to go?
Objectives Co. Potential
 Dimensions of Market Analysis
• Actual and potential market size
• Market growth
• Market profitability
• Cost structure
• Distribution system
• Trends and development
• Key success factors
UNDERSTANDING THE COMPETITORS

Image &
Position

Size & Objectives

Growth / &
Profitability Communication

Strength & Competitor Current & past

Weakness actions Strategies

Exit Organisation &

Barriers Culture

Cost
Structure
Building Brands in a Recession
Consumers

Spend less money

Carefully scrutinize purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious
 Building Brands in a Recession
Companies

Reduce advertising budgets

Balance discounts/promos w/brand image
Must overcome consumer distrust
Change product marketing focus
Increase online social presence
Look for new ways to remain relevant
The IMC Plan
Monitoring, Evaluation, Control

Basic Goals

Determine how well the program

is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies
Marketing Strategy and Analysis

Strategic Marketing Plan

Target
Opportunity Competitive
Market
Analysis Analysis
Selection
 The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation
Select a market to target
Position through marketing strategies
 Target Market Identification

Isolate Consumers With Similar…

Lifestyles Social class

Geographic
Economic status Age
location

Marital status Needs

 Bases for Market Segmentation
Demographic Geographic Socioeconomic

Gender Region Income

City size Education
Age
Metropolitan area Occupation
Race
Density
Life stage
Birth era
Household size Psychographic

Residence tenure Personality

Marital status Values/Lifestyle
 Psychographic Segmentation
• VALS which is also known as values attitude and
lifestyle is one of the primary ways to perform
psychographic segmentation.
• All three terms are intangible in nature and
therefore give an idea of the inert nature of the
consumer.
• If you know what your consumer is thinking, you
would know what kind of promotions or
communications will attract him most.
• And how do you know what the consumer is
thinking? By determining his VALS – Values,
attitudes and lifestyle.
 Lifestyle, values and culture defined
• Lifestyle
– The way we choose to allocate our time and resources

• Values
– A reflection of our fundamental belief systems

• Culture
– A complex system of knowledge, values, customs
and beliefs that are shared by a society
 History of the term VALS
• VALS is actually a proprietary term of SRI
international.
• The term was developed by Social scientist and
futurist Arnold Mitchell. Arnold Mitchell actually
developed the VALS framework to determine
different classes of people who had varying values,
attitudes and lifestyle.
• These people were determined by the resources
they had at their disposal as well as the amount of
primary innovation they could accept or create.
• Thus the people with low resources were low on
innovation and the ones with higher resources
were higher in innovation. This formed the basis of
the VALS framework.
• The VALS framework was developed keeping a consumers
resources as well as his capacity to accept innovation in
mind. The X axis consisted of primary motivation and the Y
axis consisted of resources such as income, education,
confidence etc. Thus these two factors were determined to
be critical to define the values attitude and lifestyle of any
consumer.
– Resources – Included resources available to an individual such as
income, education, intelligence, emotional support, etc.
– Primary motivation – Which determined what actually drives the
individual. Is it knowledge, the desire to achieve something or is it to
be social.
• After researching above 1500 consumers, Arnold Mitchell
actually divided consumers into 9 different types based on
the amount of resources they had as well as their capacity
for primary motivation. These classes of consumers based
on their VALS were.
 The VALS
framework
 How to do VALS

• http://www.strategicbusinessinsights.com/val
s/presurvey.shtml
 • Innovators are successful, sophisticated,
take-charge people with high self-
esteem. Because they have such
abundant resources, they exhibit all
three primary motivations in varying
degrees. They are change leaders and are
the most receptive to new ideas and
technologies. Their purchases reflect
cultivated tastes for upscale, niche
8 types of products and services.

Consumers Thinkers: Motivated by ideals; high resources

as per VALS Thinkers are mature, satisfied, comfortable,
framework and reflective. They tend to be well
educated and actively seek out information
in the decision-making process. They favor
durability, functionality, and value in
products.
 • Believers: Motivated by ideals; low
resources
Believers are strongly traditional and respect rules
and authority. Because they are fundamentally
conservative, they are slow to change and
technology averse. They choose familiar products
and established brands.
Achievers: Motivated by achievement;
8 types of high resources
Achievers have goal-oriented lifestyles that centre
Consumers on family and career. They avoid situations that
encourage a high degree of stimulation or change.
as per They prefer premium products that demonstrate
VALS success to their peers.

framework Strivers: Motivated by achievement; low

resources
Strivers are trendy and fun loving. They have little
discretionary income and tend to have narrow
interests. They favour stylish products that emulate
the purchases of people with greater material
wealth.
 • Experiencers: Motivated by self-expression;
high resources
Experiencers appreciate the unconventional. They
are active and impulsive, seeking stimulation
from the new, offbeat, and risky. They spend a
comparatively high proportion of their income on
fashion, socializing, and entertainment.
Makers: Motivated by self-expression; low
resources
8 types of Makers value practicality and self-sufficiency.
They choose hands-on constructive activities and
Consumers spend leisure time with family and close friends.
as per VALS Because they prefer value to luxury, they buy
basic products.
framework Survivors
Survivors lead narrowly focused lives. Because
they have the fewest resources, they do not exhibit
a primary motivation and often feel powerless.
They are primarily concerned about safety and
security, so they tend to be brand loyal and buy
discounted merchandise.
Positioning Strategies
Attributes and Benefits
Price/Quality
Use/Application
Product Class
Product Users
Competitors
Cultural Symbols