Integrated Marketing

Communications (IMC)

Prof. Sita Ramakrishnan

Topics to be covered

Introduction
Definition
Relevance of IMC
Components of IMC
Importance of objectives for IMC
Promotional Objectives
Communications Objectives
Sales Objectives
DAGMAR

Introduction
-

Earlier, in many companies the promotional

functions were dominated by mass media &
advertising.
Companies relied on advertising agencies for
guidance in nearly all the areas of marketing
communication.
Sales promotion, direct marketing etc were
viewed as auxilliary services.
Various promotional functions were managed as
separate practices with different goals,
objectives & separate budgets and were not coordinated for effective communication.

Since late 1980s, IMC came to be recognised.

Co-ordinated communication plan employing
different tools.
Need for integration in order to deliver clear,
compelling message about the company and its
products & services.
Has direct on both consumer behaviour and brand
equity.
Built on the foundation that various communication
media have the potential to increase effectiveness
if used together and in tandem.

Definition
-

American Association of Advertising Agencies

(AAAA) IMC is a concept of marketing
communication planning that recognises the
added value of a comprehensive plan that
evaluates the strategic roles of a variety of
communication disciplines.

William Stanton IMC is the element in an

organisations marketing mix that is used to
inform, persuade and remind the market
regarding the organisation and/or its products.

Relevance of IMC
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Creating awareness
Providing information
Persuading buyers
Creating favourable attitudes
Providing reminders
Creates brand image
Develops brand loyalty
Educating customers
Expanding markets and retaining existing
customers
Builds goodwill

Components of IMC

Advertising
- Any paid form of non-personal
communication about an organisation, ideas,
goods or services by an identified sponsor.
- Mass communication device.
- Persuasive & Cost-effective.
- Powerful tool for building brand equity and
brand image.

Direct Marketing
- Companies communicate directly with target
consumers to generate response.
- Involves a variety of activities like database
management, direct selling, tele marketing and
direct response ads through direct mail etc.
- Direct response advstg is where a product is
promoted through an ad that encourages the
customer to purchase directly from
manufacturer.

- Shopping convenience through catalogs or

companys website and placing orders by mail,
phone or online has led to heavy growth of
direct marketing.
- Used by companies that distribute their
products through traditional distribution
channels or have their own sales force.
- Used by consumer product companies and
business-to-business marketers.

Internet Marketing
- Advances in technology and developments in
interactive media.
- Not one-way in nature like advertising but
allows for a variety of functions like receiving
and altering information, make inquiries and
make purchases.
- Includes CD-ROMs, kiosks, interactive
television.
- Is both an advertising medium and marketing
communication tool (personal selling, PR
activities, direct marketing).

- Consumer-oriented is targeted to the ultimate

user of the product and includes couponing,
sampling, rebates, contests etc. which
encourage consumers to make immediate
purchase and stimulate short-term sales.
- Trade-oriented is targeted towards marketing
intermediaries such as wholesalers, distributors
and retailers.
- Includes promotional merchandising
allowances, price deals, sales contests and
trade shows.

- Advantages are interactivity and precise

measurement of the effects of the various
promotional measures.

Sales Promotion
- Those activities that provide extra incentives
to the sales force, distributors or ultimate
consumers and stimulate immediate sales.
- Consumer-oriented and Trade-oriented
activities.

- Reasons for increase in sales promotion are

declining brand loyalty, increased consumer
sensitivity to promotional tools and larger and
powerful retailers demanding more trade
promotional support from companies.

Publicity
- Refers to non-personal communication
regarding a company, product, service or idea
not directly paid for or run under identified
sponsorship.

- Usually in the form of news releases, feature

articles, press conferences.
- Advantage is its credibility. As people consider
it to be a non-biased source, they trust it more.
- Also it is less expensive.
- Not always under the control of the
organisation and can be negative.

Public Relations
- When a company systematically plans and
distributes information in order to control and
manage its image and nature of publicity
received.
- A management function which evaluates
public attitudes, identifies the policies &
procedures of an individual/company with
public interest and executes a program of
action to earn public understanding and
acceptance.

- Used to establish and maintain a positive

image of the company among the public.
- PR uses publicity and other tools like
participation in community activities, fund
raising, sponsorship of special events and
advertising.

Personal Selling
- Person-to-person communication where the
seller attempts to persuade prospective buyers
to purchase the companys product/service.

- Involves direct contact either face-to-face or

through other forms of telecommunications.
- Immediate feedback can be received and
allows for personalised communication to suit
the needs/situation of the buyer.
- Also flexibility is high as message can be
modified immediately.

Importance of objectives for IMC

Communications: Facilitates communication of

what the company hopes to accomplish
through marketing communications program.

Planning & Decision-making

Measurement and Evaluation of Results

Promotional Objectives

Evolve from companys overall marketing plan.

Marketing objectives are defined in terms of
measurable outcomes likes sales volume, market
share, profits or ROI.
Good mktg objectives are quantifiable.
Once the marketing plan is established, then it
should be decided what the role of advertising
and promotion will be.
Generally, the consumer goes through a series of
stages before actual purchase which is known as
hierarchy of effects.

The stages are Awareness, Knowledge, Liking,

Preference, Conviction & Purchase.
Promotional objectives will differ as per the
stage in the PLC and stage in the consumers
decision process that the marketer wishes to
influence.
Two main strategies Push & Pull strategies.
Push strategy involves hard sell and is closely
related to the selling concept. Aggressive price
promotions may be used.
Pull strategy emphasises creating demand for
the product so that consumers will come to
purchase the product.

Promotional objectives will influence the

advertising strategies and approaches.
Some of the advertising strategies used are:
Information dissemination/persuasion
Fear Appeals
Humour
Classical conditioning-associating to a liked object or
idea
Repetition
Celebrity endorsements

Communications Objectives

Primary role of the IMC program is to

communicate.
It refers to what the firm seeks to accomplish
with its promotional program.
Stated in terms of the nature of the message
to be communicated or what specific
communication effects are to be achieved.
May include creating awareness about a
product and its benefits, creating a favourable
image, attitude or purchase intentions.

Advocates of this method use some form of

hierarchical models for setting advertising and
promotional objectives.
The consumer is expected to pass through 3
stages Cognitive, Affective & Combative and
each stage takes them closer to purchase.
Shows what various aspects of IMC program
will accomplish.

Sales Objectives

To generate short-term increase in sales.

It is believed by many that monies spent on
advertising and promotion should produce
measurable results.
Hence objectives should be based on
achievement of sales.

DAGMAR

DAGMAR is the abbreviation of the theme

Defining Advertising Goals for Measured
Advertising Results.
Proposed by Mr. Russel. H. Colley.
As per this model, advertising has to perform a
particular communication task and the task has
to be accomplished among a well-defined
audience within a specified amount of time.
It is a model of purchase process beginning at
a point where the prospect does not know that
a particular product exists in the market.

Advertising must carry a consumer through 4

levels of understanding from Unawareness to
Awareness. The stages are:
Awareness, Comprehension, Conviction, Action.
DAGMAR also specifies what constitutes a good
objective:
Concrete and measurable
Target Audience
Benchmark and degree of change sought
Specifed time period
Written goal

Merits of DAGMAR:
Facilitates sound ad planning
Ensures effective communication
Improves understanding
Reduces subjectivity

Limitations:
Problem with response hierarchy
Sales objective may not be achieved
Practicality and costs
Inhibits ad creativity