Imc

Introduction to IMC
Introduction
Pepsi, announced some time back that it was scrapping its familiar
red, white, and blue design and switching to a radical new electric
blue package and logo design, the reason being that Pepsi's image,
particularly in international markets, had been losing something in
translation.
As The Wall Street Journal observed in reporting on the Project Blue

launch, "Pepsi’s image is all over the map." The story explains that a
grocery store in Hamburg uses red stripes, a bodega in Guatemala
uses '70s-era lettering, a Shanghai restaurant displays a mainly white
Pepsi sign, and a hodgepodge of commercials feature a variety of
spokespeople, ranging from cartoons and babies to doddering butlers.
It's not just Pepsi's marketing communication that sends different

messages to different people. Consumers say the cola tastes different
in different countries, so PepsiCo's plans also called for revamping
manufacturing and distribution to get a consistent-tasting drink
marketed throughout the globe. And some of its European marketing
communication partners mixed in their support to the plan because
they felt they weren't consulted about how it was to be implemented,
so there's work to be done there, too.
Mapping The Role of IMC in ‘Ad-World’ 1

Introduction to IMC
“Everything Sends a Message”
What happened to Pepsi dramatizes the point that message consistency

is a systemic problem, as well as strategic. It has to be approached from
the viewpoint of the whole company and its total business operations,
not just from how the company executes its marketing
communication or corporate image programs.
As Nicolas Hayek, CEO of Swatch, says, "Everything we do, and the

way we do everything, sends a message." And that’s where
Integrated Marketing Communications comes in. Integrated
marketing communications is a process that manages all of a company or
brand's interactions with customers and other key stakeholders. Its premise
is that everything a company does, and sometimes what it doesn't
do, sends a message.
In the marketplace of the 21st century the driving force is not a

company with products to sell but customers controlling what, where,
and how they want to buy. Thanks to the Internet, 24-hour toll-free
phone numbers, credit cards, and express delivery services,
consumers are accessing information on demand and seeking out the
products and services that interest them.
Gone are the days when a company determined where, when, and
how it sells its product. Integrated marketing communications (IMC)
is a customer-centric, data-driven method of communicating with
consumers. Nestle, IBM, Microsoft, Apple computers, Nike and many
other companies have adopted this IMC approach.

Introduction to IMC
Integrated Marketing Communication
Integrated marketing is a comprehensive approach to internal and

external organizational communication.
Definitions of IMC
As per American Association of Advertising Agencies –
“The concept of integrated marketing communications planning that

recognizes the added value of a comprehensive plan that evaluates the
strategic role of a variety of communication disciplines - for example, general
advertising, direct response, sales promotion, and public relations - and
combines these disciplines to provide clarity, consistency and maximum
communications impact”
According to Don Schultz –
“Integrated marketing Communications is a new way of looking at the whole

picture, where once we only saw parts such as advertising, public relations,
sales promotion, purchasing, employee communications, and so forth. It is
realigning communications to look at it the way the customer sees it - as a
flow of information from indistinguishable sources.”
A successful IMC campaign requires that the firm finds a right

combination of promotion tools and techniques, defines their roles
and the extent to which they can or should be used, and coordinate
their use.

Introduction to IMC
In the words of Duncan and Everett –
“Integrated Marketing Communications may be defined as “The strategic

coordination of all the messages and media used by an organization to
influence the perceived brand value”
The focus here is on two aspects
1) Being present at all the contact points.

2) Managing the communications well so that your brand speaks one
language.
If this does not happen
One may miss out on some of the contact points where the customer
awaits for communications, and when he does not find it, he
abnegates the brand.
One may reach different contact points but different
communications speak differently, the customer gets confused as to
what he should associate with brand.
Thus the first aspect creates awareness and the second aspect creates
and maintains loyalty.

Introduction to IMC
Necessary Conditions for an Effective IMC Program
Today, IMC definitions are broader in application, as a brand is

developed in stakeholders' minds as a result of all interactions they
have with a company, and not just as a result of a campaign they are
exposed to. The premise is virtually the same — synergies are
achieved when all brand contacts work in concert.
While definitions differ, the practice of IMC involves the same success
factors and helps organizations build and deepen relationships with
their many stakeholders. The following conditions should be
considered “necessary” but not sufficient conditions of IMC practice:
1. It must speak to all stakeholders with a "single," consistent voice.

2. It must assume the consumers' point of view.
3. Its strategic communications disciplines must be internally integrated.
4. Its messages must cut through the increasingly cluttered commercial
landscape.
5. It must foster a two-way dialogue between consumers and itself.
6. It must build bonds that lead to long-term, consumer-to-brand
relationships.
7. It must not place excellent marketing ahead of corporate reputation.
Thus in the IMC approach, the different communications are in the

form of arcs making up a 360-degree circle, at the center of which lies
the customer. The communications need to be spread and integrated
on a holistic basis what forms the basis of IMC.

Introduction to IMC
An Analogy – A Symphony Orchestra
'Integrated communications' are like a band. The different

communications instruments-advertising, public relations, database
marketing, media specialists, sponsorship, interactive, event
marketing and the rest - are just like different musical instruments:
piano, trumpet, trombone, violin, clarinet, percussion and the rest.
This analogy is neither as silly nor as simple as it sounds.
The first thing to note is that although all the instruments normally
play the same tune, they are not interchangeable; they make different
noises. When each plays alone, the melody will be recognizable. But if
one thinks a piano playing Rule Britannia is the same as a trumpet
playing Rule Britannia, he’s tone deaf. Very few consumers are tone
deaf. They will recognize that the underlying messages being
conveyed, say, by public relations and sponsorship, are identical, but
the tone will be entirely different. The form in which a message (or
melody) is conveyed is nearly as important as its content, sometimes
more important.
Second, all the different disciplines must play in harmony.
But, third, it does not always mean they must play exactly the same
tune. There are many occasions when they should be playing in
counterpoint. On their own, it may not be apparent they are playing
the same melody at all. Each may be exploiting its own virtuosity,
instead of echoing the others.

Introduction to IMC
Similarly, badly done integrated marketing campaigns squeeze

different communications media into restrictions which minimize
their individual vitality. To force all types of communications to use
the same message, instead of allowing them to deploy their own
strengths and complement each other is direly inefficient.
A company that wants to make maximum use of the synergy of

integrated marketing communication has to do more than simply
initiate advertising, direct marketing, public relations and data base
management. It requires total management commitment to a multi-
faceted program of operations and marketing.
There Are Two Critical Factors That Influence The Effectiveness Of

An Integrated Marketing Campaign.
• The first is the strategic combination or "mix" of the basic elements.

Achieving the most effective mix is usually the result of experience.
• The second critical factor is the consistency of the theme across all
elements in the campaign. Logically, consistency is best achieved
through the use of a single source responsible for defining the role of
each element, creating the theme, and coordinating the timely
implementation of the campaign. However, consistency is where
most companies who believe they are already integrating their
marketing efforts usually fall short.

Introduction to IMC
Factors Contributing to IMC's rising Prominence
Fragmentation of media : Both the Print and the Television media

have proliferated dramatically in the past decade which has resulted
in less reliance on mass media and more emphasis on the other
promotional options, such as direct mail and event sponsorship.
Better audience assessment: More sophisticated research methods

have enabled more accurate and specific targeting, leading the
marketer away from the mass media to promotional tools that reach
only the segment that has been targeted.
Consumer empowerment: Empowered consumers are more

skeptical of commercial messages and demand information tailored
to their needs.
Increased advertising clutter: This has diluted the effectiveness of

any single message. There seems to be no end in sight to this 'media'
proliferation.
Many marketers feel that traditional advertising is too expensive and

is not cost effective. Hence there is a trend of shifting of budgets
from media advertising to other forms of promotions.
Database Technology: This can be used to create accurate customer

and non-customer profiles for developing highly targeted direct
response & telemarketing programs can be implemented.

Introduction to IMC
Channel Power: Retail channels are developing power and hence

are able to demand promotional fees and allowances from
manufacturers, which divert funds away from advertising and into
special events or other promotions.
Increased Accountability: This have led the firms to reallocate

marketing resources from advertising to more short-term and more
easily measurable methods such as direct marketing and sales
promotion.

Introduction to IMC
4P’s versus the 4 C’s
The current revolution in the market has brought about several

‘Differentiation’. This has led to the replacement of 4 P's of marketing
by the 4 C's of marketing.
Not PRODUCT, But CONSUMER

Understand what the consumer wants and needs. Times have
changed and you can no longer sell whatever you can make. The
product characteristics must now match what someone specifically
wants to buy. And part of what the consumer is buying is the
personal "buying experience."
Not PRICE, But COST

Understand the consumer's cost to satisfy the want or need. The
product price may be only one part of the consumer's cost structure.
Often it's the cost of time to drive somewhere, the cost of conscience
of what you eat, and the cost of guilt for not treating the kids.
Not PLACE, But CONVENIENCE

Think convenience of the buying experience and then relate that to a
delivery mechanism. Consider all possible definitions of
"convenience" as it relates to satisfying the consumer's wants and
needs. Convenience may include aspects of the physical or virtual
location, access ease, transaction service time and hours of
availability.

Introduction to IMC
Not PROMOTION, but COMMUNICATION

Communicate! Communicate! Communicate! Many mediums work
together to present a unified message with a feedback mechanism to
make the communication two-way. And it is necessary to include an
understanding of non-traditional mediums, such as word of mouth
and how it can influence your position in the consumer's mind. How
many ways can a customer hear (or see) the same message through
the course of the day, each message reinforcing the earlier images?

Introduction to IMC
The Heart of IMC
In keeping with the above trends, there are Five power concepts that
go in IMC and make the communications efficient and effective.
1. Customer Focus: One’s message must be appealing, relevant and

accurately timed and must be based on the understanding and
anticipation of what the customer expects and wants, when he wants
it, and how he wants it to be delivered to him.
2. Customer Empowerment: One should empower the customer to

define the relevance; company shouldn’t define it for him and do not
force the content as per your convenience. Allow the customer to
decide how deeply he wants to be involved in the communications.
This concept extends beyond the permission from customer. Here
the customer takes the lead.
3. Immersive Marketing: One need to be consistent at all the contact

points and need to have continuity such that all the roads of
different media lead down the same path to the brand. The beauty of
the communications lies in that the consumer gets the option only to
decide how far to go and not what different objective to go for.
4. Brand Resonance: Communicating while creating relationship must

stand for something that the customers think is worthy of a
relationship with them.

Introduction to IMC
5. Emotional Bonding: One’s brand develops a relationship with

customer; based on the insights about him. He is not only loyal to
the brand but he treats the brand as a friend, a trustee, a close
relative, or as an inseparable part of his life. In this case he becomes
an advocate for the brand and propagates the message himself. In
other sense he becomes a contact point for the other consumers.
Thus the communications become vital to be managed so well that
even this newly created contact point speaks the same voice.
Correctly implemented, the IMC program is a continuous cycle of

gathering data and implementing response-generating marketing
communications which are based on previously, gathered data. Marketing
communications derived from consumer need can build perceived value
into your product or service, and separate it from the competition in the
minds of your customers and prospects.

Process of IMC
Levels of Integration
Integrated marketing communications is not just merely a piece of

advertising, a piece of public relations and a piece of direct mail that
all look the same. Rather, IMC is the management of all brand
contact points through an integrated, consumer-driven strategy. It
means realigning your communications from your customer’s
perspective so that your public relations are indistinguishable from
your advertising; your direct marketing is indistinguishable from
your promotions and so on.
There exist various levels at which such integration can take place.
The following table details each of such stages.
Stages of Integration of Marketing Communication

Process of IMC
Level 1- Tactical Co-ordination
To create ‘one sight, one sound’ by consolidating communications planning

it often leads to attempts at cross-functionality, where teams of specialists
from different areas of expertise are formed to increase synergy.
Level II- Redefining the Scope of Marketing Communication
Rather than considering communications as an outbound activity, the firm

looks at all points at which the consumer and the brand are in contact.
Most important result of this level of integration is inclusion of Employees
as both target for and proliferators of marketing communication.
Level III- Application of Information Technology
The key ingredient here is the use of databases to capture individual

transactions. This enables the firm to market to groups of individuals
rather than the average customer at the middle of the segment.
Level IV- Strategic and Financial Integration
In this level two issues are paramount:

The ability to measure the return and the ability to use the marketing
communication to drive organizational and strategic decisions.
Rather than measuring say, extra sales resulting from an advertising
campaign, the firm would now measure the returns from a specific group
of customers against costs associated with that group.

Process of IMC
Consumer Psyche & Information Processing
Key to effective communication is understanding how consumers

process the vast amount of information that comes their way each and
every day. To cope, consumers select only that information which
they perceive to be important and ignore the rest. If the marketing
message is to be selected and processed, it must:
• Consist of sensory and life experiences that can easily be identified

and transformed into a unified concept,
• Have mental relationships to other categorized ideas, and
• Fit into the categories and mental linkages that people have already
created for them.
Communication only occurs when the consumer accepts, transforms,

and categorizes the message.
The two models of information processing have been proposed are as

follows:
1. The Replacement Model assumes that it is possible for the marketer

to "replace" previously stored information chunks with new ideas.
What is said does not matter as much as how often and how loud the
message has been transmitted. With enough exposure, the new will
replace the old.

Process of IMC
2. The Accumulation Model of information processing assumes that

message consistency is critical since the consumer accepts, processes,
and stores information about the product or service relative to what
has already been mentally accepted.
The storage and retrieval system works on the basis of matching

incoming information with what has already been stored in memory.
If the information matches or enhances what is already there, then
the new information will likely be added to the existing concepts
and categories. If it doesn't match, the consumer has to make a choice,
either the new information can replace what is already there or the
new information can be rejected.
If rejected, the consumer would continue to use existing concepts and

categories and ignore the new. This is called a "judgment system"; in
which consumers match or test new information against what they
already have and then make a judgment to add to, adapt, or reject the
new material. The judgment system (perceptual consistency) prevents
consumers from having multiple concepts or categories for the same
message.
When consumers reject the information or do not add or attach it to

what they already have, there is a failure to communicate. In many
cases, the failure to communicate is the result of the marketer being
unable to match his or her messages or fields of experience with those
of the prospect or customer.

Process of IMC
Consumers use the same information processing approach whether

the new data comes from advertising, sales promotions, a
salesperson, an article in a newspaper or magazine or from what their
neighbor is telling them. The marketer who presents non-integrated
messages risks not having any of his or her messages processed
because of the conflict that occurs in the consumer's information
processing system. If for no other reason, than the risk of confusion,
marketers must integrate their messages or consumers will simply
ignore them.

Process of IMC
Characteristics of an IMC Approach
Planning for an Integrated Marketing Communications program goes

beyond merely using the right tool under the right conditions.
Strategic planning for IMC is distinguished from the traditional use of
multi-dimensional promotions by the following four factors:
• An Outside-In approach is used to plan communications that

essentially means that a firm, designing communications, starts with
the customer or prospect and looks backward, identifying what the
customer deems as important information. This approach helps to
deliver the information that the customer wants rather than in the
form at a time that the firm deems appropriate. Similarly Tom
Duncan suggests the use of Zero-based communication planning – it
involves determining what tasks need to be done and which
marketing communications function should be used and to what
extent.
• IMC planning requires comprehensive and detailed knowledge

about the customers, prospects and other stakeholders.
• An IMC plan is built around brand contacts like packaging, employee

contacts, in-store displays etc. Each contact must be evaluated for
clarity and consistency with the overall IMC program.
• Control of the IMC plan is highly centralized. The effectiveness of

the program is highly increased by appointing a single person or
team to control and evaluate all contacts with targeted customers.

Process of IMC
The Actual Process
Integrated Marketing Communications is a process and it involves the

companies, the communication design/creative agencies and the
execution agencies. The first step in this process is consumer research
and planning followed by designing the creative and finally
Implementation.
The planning is at the strategic level. Generally it relates to the entire

strategic framework as to what does the product stand for, its
attributes, the differentiation and then segments which it wants to
enter. As mentioned earlier, IMC is centered around the customer and
has its essence of understanding him to the fullest degree is a must.
Thus the plans need to be based which must answer:
What contact opportunities do I have (taking into consideration

the costs and the benefits)?
What depth do I want to gain in any media?
What is my media strategy i.e. whether I want to just ensure my
presence in the medium or I want to dominate that particular
medium?
The marketing manager needs to provide the agency with

information about the consumer segments, product, positioning ideas,
competition etc. This is the basic framework, based on which all the
communications are designed. This plan is briefed to the creative and
the execution agency and discussed.

Process of IMC
The promotional planner after reviewing all the information should

see how IMC fits into the marketing program and what are the
objectives set for IMC to achieve. (Thus the objective could either be
only to communicate to the customer about the product or service to
achieve a certain market share or growth in sales).
The next step following is the designing of the creative which rests
on the creative / advertising agency. Nowadays increasingly most of
the advertising agencies handle the entire account of a brand single
handedly (even including the consumer researches for media and
advertising).
The creative here is designed for all the communications whether the
tangibles or the intangibles e.g. packaging, print ads, TV ads,
interstitial etc. This also includes the coordination of the events and
PR based on a one-voice platform.
The final step in the process is the Implementation. This includes the
actual communication and the different activities communicating
about the brand like promotions and events etc.

Process of IMC
Model for Planning IMC
Tension, Stress, creativity,

deadlines, collaboration,
synergy, conflict,
misunderstandings, expertise,
complexity, details, details,
details….are all things that
characterize the process of
preparing to launch an IMC
campaign.
There are many different models that guide the process of planning
an IMC campaign. One such model being discussed is the ‘Strategic
Planning Triangle’ proposed by advertising researchers Esther
Thorson and Jeri Moore in their book ‘Integrated Communication :
Synergy of Persuasive Voices’.
As shown alongside, the apexes of the planning triangle entail the

segment(s) selected as targets for the IMC campaign, the brand’s
value proposition, and the array of persuasion tools that might be
deployed to achieve campaign objectives.
(a) The firm starts with customer, prospect, stakeholder definition, as

identification and specification of the target segment as a paramount
apex of the triangle. Building a consensus between the client and the
agency about which customers will be targeted is essential to the
campaign’s effectiveness. Complex IMC campaigns may end up
targeting multiple segments. In such a case it is critical to analyze if

and how different target segments will interact to support or
disparage the campaign. The description of the target hence has to
be both Personal and Precise.
(b) The second important apex in the Planning triangle entails a

specification of the Brand’s Value Proposition. A brand’s value
proposition is a statement of the functional, emotional, and self-
expressive benefits delivered by the brand that provide value to the
customers in the target segment. Factors like what the brand has
stood for in the past, as well as what new types of value or benefits
one wants to claim for going forward need to be considered here.
(c) The final apex of the planning triangle considers the various
persuasion tools that may be deployed in executing the campaign.
The mix of the various tools should depend on the objectives that are
set for the IMC campaign.
Collaboration between the agency and the client is the key to ensure
that the approval process proceeds in a timely fashion.
The Process of an Integrated Marketing Program thus
• Encourages the establishment of a marketing-team approach to

discuss strengths and weaknesses, mission and vision, and niche
and quality, and to reach a consensus on the primary messages to be
delivered to priority audiences.
• Involves working in teams, typically with members from other
campus offices, to reach prospective students, parents, donors, and
community and government officials with maximum impact.

• Uses quantitative and qualitative research techniques, including
focus groups and survey research, to determine constituent attitudes
and opinions, and effectiveness of various communications
messages and techniques.
• Calls for a communications analysis to determine what messages are
being sent to key audiences, including the sequence and flow of
these messages.
• Calls for the examination of your existing message vehicles for
clarity, consistency, and effectiveness. Combines this assessment
with the results of your research to provide your key audiences with
the information they need, in the ways they have asked to receive it.
• Focuses on long-term advantages and incorporates interactive
communication to develop more personal relationships. May
include the use of technology like email and the World Wide Web to
get feedback from key audiences.

Process of IMC
Barriers to Integrated Marketing Communication
Despite its many benefits, Integrated Marketing Communications has

many barriers.
In addition to the usual resistance to change and the special problems

of communicating with a wide variety of target audiences, there are
many other obstacles which restrict IMC. These include: Functional
Silos; Stifled Creativity; Time Scale Conflicts and a lack of
Management know-how.
Take functional silos. Rigid organizational structures are infested with

managers who protect both their budgets and their power base.
Sadly, some organizational structures isolate communications, data,

and even managers from each other. For example the PR department
often doesn't report to marketing. The sales force rarely meets the
advertising or sales promotion people and so on. Imagine what can
happen when sales reps are not told about a new promotional offer!
And all of this can be aggravated by turf wars or internal power

battles where specific managers resist having some of their decisions
(and budgets) determined or even influenced by someone from
another department.
Here are two difficult questions - What should a truly integrated

marketing department look like? And how will it affect creativity?
It shouldn't matter whose creative idea it is, but often, it does. An

advertising agency may not be so enthusiastic about developing a
creative idea generated by, say, a PR or a direct marketing consultant.

Process of IMC
IMC can restrict creativity. No more wild and wacky sales promotions
unless they fit into the overall marketing communications strategy.
The joy of rampant creativity may be stifled, but the creative
challenge may be greater and ultimately more satisfying when
operating within a tighter, integrated, creative brief.
Add different time scales into a creative brief and you'll see Time
Horizons provide one more barrier to IMC. For example, image
advertising, designed to nurture the brand over the longer term, may
conflict with shorter term advertising or sales promotions designed to
boost quarterly sales. However the two objectives can be
accommodated within an overall IMC if carefully planned.
But this kind of planning is not common. A survey in 1995, revealed

that most managers lack expertise in IMC. But it’s not just managers,
also agencies. There is a proliferation of single discipline agencies.
There appear to be very few people who have real experience of all
the marketing communications disciplines. This lack of know how is
then compounded by a lack of commitment.

Process of IMC
Golden Rules to Make Integrated Marketing Communication

Successful
Despite the many benefits of Integrated Marketing Communications

(or IMC); there are also many barriers. Here's how you can ensure
you become integrated and stay integrated - 10 Golden Rules of
Integration.
(1) Get Senior Management Support for the initiative by ensuring

they understand the benefits of IMC.
(2) Integrate at Different Levels of management. Put 'integration' on

the agenda for various types of management meetings - whether
annual reviews or creative sessions. Horizontally - ensure that all
managers, not just marketing managers understand the importance of
a consistent message - whether on delivery trucks or product quality.
Also ensure that Advertising, PR, Sales Promotions staff are
integrating their messages. To do this you must have carefully
planned internal communications, that is, good internal marketing.
(3) Ensure the Design Manual or even a Brand Book is used to

maintain common visual standards for the use of logos, typefaces,
colours and so on.
(4) Focus on a clear marketing communications strategy. Have

crystal clear communications objectives; clear positioning statements.
Link core values into every communication. Ensure all
communications add value to (instead of dilute) the brand or
organization. Exploit areas of sustainable competitive advantage.
(5) Start with a Zero Budget. Start from scratch. Build a new
communications plan. Specify what you need to do in order to

Process of IMC
achieve your objectives. In reality, the budget you get is often less
than you ideally need, so you may have to prioritize communications
activities accordingly.
(6) Think Customers First. Wrap communications around the

customer's buying process. Identify the stages they go through before,
during and after a purchase. Select communication tools which are
right for each stage. Develop a sequence of communications activities
which help the customer to move easily through each stage.
(7) Build Relationships and Brand Values. All communications

should help to develop stronger and stronger relationships with
customers. Ask how each communication tool helps to do this.
Remember: customer retention is as important as customer
acquisition.
(8) Develop a Good Marketing Information System which defines

who needs what information when. A customer database for example,
can help the telesales, direct marketing and sales force. IMC can help
to define, collect and share vital information.
(9) Share Artwork and Other Media. Consider how, say, advertising
imagery can be used in mail shots, exhibition stands, Christmas cards,
news releases and web sites.
(10) Be prepared to change it all. Learn from experience. Constantly

search for the optimum communications mix.
Test..!! Test..!! Test..!! Improve each year. 'Kaizen'

The Integrated Marketing Mix
The Promotional Mix- “Tools for IMC”
Promotion has been defined as the coordination of all seller initiated

efforts to set up channels of information and persuasion in order to
sell goods and services or promote an idea. While implicit
communication occurs through the various elements of the marketing
mix, most of an organization’s communications with the marketplace
take place as part of a carefully planned and controlled promotional
program. The basic tools used to accomplish an organization’s
communication objectives are often referred to as the promotional
mix.

The Promotional Mix or the Marketing Communications Mix is the

specific mix of advertising, personal selling, sales promotion, public
relations, and direct marketing a company uses to pursue its
advertising and marketing objectives
Advertising
Advertising is the best-known and most widely discussed form of

promotion, probably because of its pervasiveness. It is also a very
important promotional tool, particularly for companies whose
products and services are targeted at mass consumer markets. There
are several reasons why advertising is such an important part of
many marketers’ promotional mixes. Advertising can be used to
create brand images and symbolic appeals for a company or brand, a
very important capability for companies selling products and services
that are difficult to differentiate on functional attributes.
For example, since 1980 Absolut has used creative advertising to

position its vodka as an upscale, fashionable, sophisticated drink and
differentiate it from other brands. The advertising strategy has been to
focus attention on two unique aspects of the product: the Absolut
name and the distinctive shape of the bottle.
Another advantage of advertising is its ability to strike a responsive

chord with consumers when differentiation across other elements of
the marketing mix is difficult to achieve. Popular advertising
campaigns attract consumers’ attention and can help generate sales.

These popular campaigns can also sometimes be leveraged into

successful integrated marketing communications programs.
For example, Eveready used the popularity of its Energizer Bunny

campaign to generate support from retailers in the form of shelf
space, promotional displays, and other merchandising activities.
Consumer promotions such as in-store displays, premium offers, and
sweepstakes feature the pink bunny. Pictures of the Energizer Bunny
appear on Energizer packages to ensure brand identification and
extend the campaign’s impact to the point of purchase. Eveready has
extended its integrated marketing efforts to include tie-ins with sports
marketing and sponsorships.
The nature and purpose of advertising differ from one industry to

another and/or across situations. The targets of an organization’s
advertising efforts often vary, as do advertising’s role and function in
the marketing program. One advertiser may seek to generate
immediate response or action from the customer; another may want
to develop awareness or a positive image for its product or service
over a longer period.
Direct Marketing
One of the fastest-growing sectors of the U.S. economy is direct

marketing, in which organizations communicate directly with target
customers to generate a response and/or a transaction. Traditionally,
direct marketing has not been considered an element of the
promotional mix. However, because it has become such an integral
part of the IMC program of many organizations and often involves

separate objectives, budgets, and strategies, we view direct marketing

as a component of the promotional mix.
Direct marketing is much more than direct mail and mail order
catalogs. It involves a variety of activities, including database
management, direct selling, telemarketing, and direct response ads
through direct mail, the Internet, and various broadcast and print
media.
One of the major tools of direct marketing is direct response

advertising, whereby a product is promoted through an ad that
encourages the consumer to purchase directly from the manufacturer.
Companies that distribute their products through traditional
distribution channels or have their own sales force are also using
direct-marketing tools and techniques. Direct marketing plays a big
role in the integrated marketing communications programs of
consumer-product companies and business-to-business marketers.
These companies spend large amounts of money each year
developing and maintaining databases containing the addresses
and/or phone numbers of present and prospective customers.
They use telemarketing to call customers directly and attempt to sell

those products and services or qualify them as sales leads. Direct-
marketing techniques are also used to distribute product samples or
target users of a competing brand.

Sales Promotion
The next variable in the promotional mix is sales promotion, which is

generally defined as those marketing activities that provide extra
value or incentives to the sales force, the distributors, or the ultimate
consumer and can stimulate immediate sales. Sales promotion is
generally broken into two major categories: consumer-oriented and
trade-oriented activities.
Consumer-Oriented Sales Promotion is targeted to the ultimate user

of a product or service and includes couponing, sampling, premiums,
rebates, contests, and various point-of-purchase materials. These
promotional tools encourage consumers to make an immediate
purchase and thus can stimulate short-term sales.
Trade-Oriented Sales Promotion is targeted toward marketing

intermediaries such as wholesalers, distributors, and retailers.
Promotional and merchandising allowances, price deals, sales
contests, and trade shows are some of the promotional. These
promotional tools encourage consumers to make an immediate
purchase and thus can stimulate short term sales.
Public Relations
A public relation is defined as “the management function which

evaluates public attitudes, identifies the policies and procedures of an
individual or organization with the public interest, and executes a
program of action to earn public understanding and acceptance.”

Public relation uses publicity and a variety of other tools including

special publications, participation in community activities, fund-
raising, sponsorship of special events, and various public affairs
activities to enhance an organization’s image. Organizations also use
advertising as a public relations tool.
Traditionally, publicity and public relations have been considered
more supportive than primary to the marketing and promotional
process. However, many firms have begun making PR an integral
part of their predetermined marketing and promotional strategies. PR
firms are increasingly touting public relations as a communications
tool that can take over many of the functions of conventional
advertising and marketing.
Personal Selling
The final element of an organization’s promotional mix is personal

selling, a form of person-to-person communication in which a seller
attempts to assist and/or persuade prospective buyers to purchase
the company’s product or service or to act on an idea. Unlike
advertising, personal selling involves direct contact between buyer
and seller, either face-to-face or through some form of
telecommunications such as telephone sales. This interaction gives the
marketer communication flexibility; the seller can see or hear the
potential buyer’s reactions and modify the message accordingly. The
personal, individualized communication in personal selling allows
the seller to tailor the message to the customer’s specific needs or
situation.

Here are some things to keep in mind
Reaches large, geographically dispersed audiences,

Advertising
often with high frequency; Low cost per exposure,
though overall costs are high; Consumers perceive
advertised goods as more legitimate; Dramatizes company/brand;
Builds brand image; may stimulate short-term sales; Impersonal, one-
way communication; Expensive.
Personal Most effective tool for building buyers’

Selling
preferences, convictions, and actions; Personal
interaction allows for feedback and adjustments; Relationship-
oriented; Buyers are more attentive; Sales force represents a long-term
commitment; Most expensive of the promotional tools.
May be targeted at the trade or ultimate consumer;

Sales
Makes use of a variety of formats: premiums,
Promotion
coupons, contests, etc.; Attracts attention, offers
strong purchase incentives, dramatizes offers, boosts sagging
sales; Stimulates quick response; Short-lived; Not effective at building
long-term brand preferences.

Sales
Promotion Highly credible; Very believable; Many forms:
news stories, news features, events and
sponsorships, etc.; Reaches many prospects missed via other forms of
promotion; Dramatizes company or product; Often the most under
used element in the promotional mix; Relatively inexpensive (certainly
not 'free' as many people think there are costs involved)
Sales Many forms: Telephone marketing, direct mail,

Promotion
online marketing, etc.; Four distinctive
characteristics: Nonpublic, Immediate, Customized,
Interactive; Well-suited to highly-targeted marketing efforts.

Emerging Tools of Integrated Marketing Communication
The concept of Integrated Marketing Communications (IMC) makes

absolute sense – so much so that novices in the field may wonder
what all the commotion is about. IMC suggests that marketers look at
the customer first – his or her preferences, buying patterns, media
exposure, and other factors – and then expose that customer to
products and services that fit the customer’s needs via a mix of
communication methods he or she finds attractive and credible. Thus,
in addition to the Promotional Mix of IMC, the marketers are also
opting for other emerging tools of IMC.
These emerging tools can be classified as follows:
Outdoor Advertising
Sponsorships
Roadshows
Point Of Purchase Display
Broadcast Advertising

Outdoor Advertising
Outdoor advertising is a very popular

form of advertising, which makes use of
several tools and techniques to attract the
customers’ outdoors. The most common
examples of outdoor advertising are
billboards, kiosks, and also several events
and tradeshows organized by the company. The billboard
advertising is very popular however has to be really terse and catchy
in order to grab the attention of the passersby. The kiosks not only
provide an easy outlet for the company products but also make for
an effective advertising tool to promote the company’s products.
Organizing several events makes for an excellent advertising
opportunity. The company can organize trade fairs, or even
exhibitions for advertising their products. If not this, the company
can organize several events that are closely associated with their
field. For instance a company that manufactures sports utilities can
sponsor a sports tournament to advertise its products.
Sponsorships
Sponsorship is an increasingly
common form of promotional
activity is sponsorship. Sponsorship
in simple words is “Supporting an event, activity or organization by
providing money or other resources that is of value to the sponsored event.
This is usually in return for advertising space at the event or as part of the
publicity for the event.”

Road shows
Roadshow is a program comprising

a series of marketing events that
companies organize at multiple
locations to generate interest
regarding a subject that they want to promote. It could about new
products/services targeted at customers, new investment offerings
(IPO) targeted at investors, new social initiatives targeted at the
community, etc.
Point Of Purchase Display
Point of Purchase display is

marketing materials or advertising
placed next to the merchandise it is
promoting. These items are generally
located at the checkout area or other
location where the purchase decision is
made. It is also known as Kiosks, End caps, Point of Sale Display.
E.g. the checkout counters of many convenience stores are cluttered
with cigarette and candy POP displays.

Broadcast advertising – Television, Radio and the Internet
Broadcast advertising is a
very popular advertising
medium that constitutes of
several branches like
television, radio or the
Internet. Television
advertisements have been
very popular ever since they have been introduced. The cost of
television advertising often depends on the duration of the
advertisement, the time of broadcast (prime time/peak time), and of
course the popularity of the television channel on which the
advertisement is going to be broadcasted. The radio might have lost
its charm owing to the new age media however the radio remains to
be the choice of small-scale advertisers.

Role of Ad-Agency in Implementation of IMC
Introduction
Developing and implementing an Integrated Marketing

Communications program is usually a complex and detailed process
involving the efforts of many people. As consumers, we generally
give little thought to the individuals or organizations that create the
clever advertisements that capture our attention or the contests or
sweepstakes we hope to win. But for those involved in the marketing
process, it is important to understand the nature of the industry and
the structure and functions of the organizations involved. As can be
seen from the opening vignette, the advertising and promotions
business is changing as marketers search for better ways to
communicate with their customers. These changes are impacting the
way marketers organize for marketing communications, as well as
their relationships with advertising agencies and other
communication specialists. For most companies, advertising is
planned and executed by an outside ad agency. Many large agencies
offer a variety of other IMC capabilities, including public relations,
sales promotion, and direct marketing.
The participants in the integrated marketing communications process

can be divided into five major groups: the advertiser (or client),
advertising agencies, media organizations, specialized
communication services, and collateral services. Each group has
specific roles in the promotional process.
The advertisers, or clients, are the key participants in the process.

They have the products, services, or causes to be marketed, and they
provide the funds that pay for advertising and promotions. The

advertisers also assume major responsibility for developing the

marketing program and making the final decisions regarding the
advertising and promotional program to be employed. The
organization may perform most of these efforts itself, either through
its own advertising department or by setting up an in-house agency
Many organizations use an advertising agency; an outside firm that

specializes in the creation, production, and/or placement of the
communications message and that may provide other services to
facilitate the marketing and promotions process. Many large
advertisers retain the services of a number of agencies, particularly
when they market a number of products. For example, Kraft Foods
uses as many as 8 advertising agencies for its various brands, while
Procter & Gamble uses 12 ad agencies and 2 major media buying
services companies. More and more, ad agencies are acting as
partners with advertisers and assuming more responsibility for
developing the marketing and promotional programs.
Media organizations are another major participant in the advertising

and promotions process. The primary function of most media is to
provide information or entertainment to their subscribers, viewers, or
readers. But from the perspective of the promotional planner, the
purpose of media is to provide an environment for the firm’s
marketing communications message. The media must have editorial
or program content that attracts consumers so that advertisers and
their agencies will want to buy time or space with them.
The next groups of participants are organizations that provide

specialized marketing communications services. They include

direct-marketing agencies, sales promotion agencies, interactive

agencies, and public relations firms. These organizations provide
services in their areas of expertise. A direct-response agency develops
and implements direct-marketing programs, while sales promotion
agencies develop promotional programs such as contests and
sweepstakes, premium offers, or sampling programs. Interactive
agencies are being retained to develop websites for the Internet and
help marketers as they move deeper into the realm of interactive
media. Public relations firms are used to generate and manage
publicity for a company and its products and services as well as to
focus on its relationships and communications with its relevant
publics.
The final participants are those that provide collateral services, the
wide range of support functions used by advertisers, agencies, media
organizations, and specialized marketing communications firms.
These individuals and companies perform specialized functions the
other participants use in planning and executing advertising and
other promotional functions.

Advertising Agencies in Action
During the late 1980s and into the 90s, the advertising industry
underwent major changes as large agencies merged with or acquired
other agencies and support organizations to form large advertising
organizations, or superagencies. These superagencies were formed so
that agencies could provide clients with integrated marketing
communications services worldwide. Some advertisers became
disenchanted with the superagencies and moved to smaller agencies
that were flexible and more responsive. However, during the mid-90s
the agency business went through another wave of consolidation as a
number of medium-size agencies were acquired and became part of
large advertising organizations. Many of the mid-size agencies were
acquired by or forged alliances with larger agencies because their
clients wanted an agency with international communications
capabilities and their alignment with larger organizations gave them
access to a network of agencies around the world. For example,
TBWA and Chiat/Day merged and became part of the TBWA
Worldwide agency, which is part of the Omnicom Group, the world’s
largest agency holding company.
Many major companies use an advertising agency now to assist them

in developing, preparing, and executing their promotional programs.
Many of the advertising organizations and major agencies have been
acquiring companies specializing in areas such as interactive
communications, public relations, direct marketing, and sales
promotion so that they can offer their clients an ever broader range of
integrated marketing communication services. Recently the activity of
the advertising holding companies has moved in a new direction as

they have begun pursuing alliances with talent agencies. By having a

stake in the talent business, ad agencies can negotiate deals with
current, as well as up-and-coming, celebrities for their clients.

Main Types of Advertising Agency
Full – Service Agency

Such agency provides a range of services to clients, including
booking advertising space, designing and producing
advertisements, devising media schedules, commissioning research,
providing sales promotion advice, and acting as a marketing
consultant. The departments within an agency include research,
planning, creative design, media bookings, production, and
accounts. Most advertising agents work on the basis of a commission
on the total sums spent by the client.
Specialist Advertising Agencies

In addition to the full-service, general-line advertising agencies,
there are also agencies that specialize in particular kinds of
advertising: recruitment, help-wanted, medical, classified, industrial,
financial, direct-response, retail, yellow pages,
theatrical/entertainment, investment, travel, and so on.
In-House Advertising Agencies

These Agencies may specialize in one or more advertising functions,
such as planning and creating advertising, buying, billing, and
paying. Advertisers who choose this option believe that the in-house
agency can provide services equal to or better than those available
from full- or limited-service agencies. In addition, some advertisers
believe that they can provide such advertising services to themselves
at a lower cost than would be charged by an outside agency.

Functions of Advertising Agencies
Professionals at advertising agencies and other advertising

organizations offer a number of functions including:
Account Management – Within an advertising agency the account

manager or account executive is tasked with handling all major
decisions related to a specific client. These responsibilities include
locating and negotiating to acquire clients. Once the client has
agreed to work with the agency, the account manager works closely
with the client to develop an advertising strategy. For very large
clients, such as large consumer products companies, an advertising
agency may assign an account manager to work full-time with only
one client and, possibly, with only one of the client’s product lines.
For smaller accounts an account manager may simultaneously
manage several different, though non-competing, accounts.
Creative Team –The principle role of account managers is to manage

the overall advertising campaign for a client, which often includes
delegating selective tasks to specialists. For large accounts one task
account managers routinely delegate involves generating ideas,
designing concepts and creating the final advertisement, which
generally becomes the responsibility of the agency’s creative team.
An agency’s creative team consists of specialists in graphic design,
film and audio production, copywriting, computer programming,
and much more.

Researchers – Full-service advertising agencies employ market

researchers who assess a client’s market situation, including
understanding customers and competitors, and also are used to test
creative ideas. For instance, in the early stages of an advertising
campaign researchers may run focus group sessions with selected
members of the client’s target market in order to get their reaction to
several advertising concepts. Researchers are also used following
the completion of an advertising campaign to measure whether the
campaign reached its objectives.
Media Planners – Once an advertisement is created, it must be

placed through an appropriate advertising media. Each advertising
media, of which there are thousands, has its own unique methods
for accepting advertisements, such as different advertising cost
structures (i.e., what it costs marketers to place an ad), different
requirements for accepting ad designs (e.g., size of ad), different
ways placements can be purchased (e.g., direct contact with media
or through third-party seller), and different time schedules (i.e.,
when ad will be run). Understanding the nuances of different media
is the role of a media planner, who looks for the best media match
for a client and also negotiates the best deals.

Advertising Agencies Help Develop Business Image
All businesses that reap huge revenues have a strong marketing arm.
A company prospers only if it knows how to effectively plan, manage,
create and handle different forms of promotion for its products and
services. However, sometimes, a company's own marketing arm is not
sufficient to reach out to its prospective consumers or customers. This
is where the services of advertisement agencies come in. Focusing on
specialized marketing communications, advertisement agencies have
the expertise to come up with strategies on branding and sales for
their clients' present and future customers.
Advertising agencies know how to manage a company's business

image in order to gain its customers' loyalty in purchasing its
products or services. This is done through a tedious creation and
execution of different marketing techniques to build a public positive
outlook on the company and its product and services line. Ad
agencies live with the promise of increasing a company's perceived
value to its customers and consequently increase its target sales and
opportunity for expansion.
Ad experts, in coordination with their clients think of means through

which the public can have a degree of respect towards a company and
the quality of the products and services that it carries. Together with
the respect of the public to the company, uniqueness is also
established. In creating a particular business image of the company,
ad agencies are concerned with persuading the public to be patrons of
the company through bombarding promotions that assert that the
company is the best choice among the heap of other companies
providing similar products and/or services.

In establishing the quality of a company's line of products and

services, Ad Agencies basically require the brand names to be easily
pronounced, remembered and recognized. Whether in print, in radio,
or in television, the advertisements that ad agencies produce employ
well-thought communication techniques that can translate the
company's implied message into a language that its consumers speak
and understand. Before shown to the public, these ads are initially
tested to a sample audience to guarantee that they attract attention
and stand out among other commercials.
Next to creating a unique business image, Ad Agencies implement

advertisement continuity, planning and executing marketing activities
that are in line and consistent with the company's image.
Advertisement continuity thence tries to maintain the loyalty of the
customers to the company. This means coming up with ads that will
strengthen and edify the company's high quality standards and
outstanding appeal, churning out ads that stick to the company's
image but are definitely showing quality growth better than those of
its rivals.
The success of creating a specific business image for a company is

determined by the revenue that it gains after the advertisements have
been shown to the public. Creating a business image is crucial in as
much as it will either decrease or increase sales and dictate the
chances of the company to charge higher prices for its products and
services, a main factor for future expansion.

The Role of an Advertising Agency
Probably the main reason outside agencies are used is that they
provide the client with the services of highly skilled individuals who
are specialists in their chosen fields. An advertising agency staff may
include artists, writers, media analysts, researchers, and others with
specific skills, knowledge, and experience who can help market the
client’s products or services. Many agencies specialize in a particular
type of business and use their knowledge of the industry to assist
their clients. For example, “Mentus Inc.” is an agency that specializes
in integrated marketing communications for the high-technology, e-
commerce, and bioscience industries. An outside agency can also
provide an objective viewpoint of the market and its business that is
not subject to internal company policies, biases, or other limitations.
The agency can draw on the broad range of experience it has gained
while working on a diverse set of marketing problems for various
clients. For example, an ad agency that is handling a travel-related
account may have individuals who have worked with airlines, cruise
ship companies, travel agencies, hotels, and other travel-related
industries. The agency may have experience in this area or may even
have previously worked on the advertising account of one of the
client’s competitors. Thus, the agency can provide the client with
insight into the industry (and, in some cases, the competition).

Responsibility for IMC “Agency versus Client”
Surveys of advertisers and agency executives have shown that both

groups believe integrated marketing is important to their
organizations’ success and that it will be even more important in the
future. One agency executive recently noted that 75 percent of the
requests for proposals the agency now receives are from clients
seeking total communication solutions. However, marketers and
agency executives have very different opinions regarding who should
be in charge of the integrated marketing communications process.
Many advertisers prefer to set strategy for and coordinate their own
IMC campaigns, but most agency executives see this as their domain.
While agency executives believe their shops are capable of handling

the various elements an integrated campaign requires, many
marketers, particularly larger firms, disagree. Marketing executives
say the biggest obstacle to implementing IMC is the lack of people
with the broad perspective and skills to make it work. Internal turf
battles, agency egos, and fear of budget reductions are also cited as
major barriers to successful integrated marketing campaigns.
Many ad agencies are adding more resources to offer their clients a

full line of services. They are expanding their agencies’ capabilities in
interactive and multimedia advertising, database management, direct
marketing, public relations, and sales promotion. However, many
marketers still want to set the strategy for their IMC campaigns and
seek specialized expertise, more quality and creativity, and greater
control and cost efficiency by using multiple providers. Most

marketers do recognize that ad agencies will no longer stick primarily

to advertising and will continue to expand their IMC capabilities.
There is an opportunity for agencies to broaden their services beyond
advertising—but they will have to develop true expertise in a variety
of integrated marketing communications areas. One thing is certain:
as companies continue to shift their promotional dollars away from
media advertising to other IMC tools, agencies will continue to
explore ways to keep these monies under their roofs.

Mapping the Role of IMC in Ad-World
The Growth of Advertisement and Promotion
Advertising and promotion are an integral part of our social and

economic systems. In our complex society, advertising has evolved
into a vital communications system for both consumers and
businesses. The ability of advertising and other promotional methods
to deliver carefully prepared messages to target audiences has given
them a major role in the marketing programs of most organizations.
Companies ranging from large multinational corporations to small

retailers increasingly rely on advertising and promotion to help them
market products and services. In market-based economies, consumers
have learned to rely on advertising and other forms of promotion for
information they can use in making purchase decisions.
Evidence of the increasing importance of advertising and promotion

comes from the growth in expenditures in these areas. In 1980,
advertising expenditures in the United States were $53 billion, and
$49 billion was spent on sales promotion techniques such as product
samples, coupons, contests, sweepstakes, premiums, rebates, and
allowances and discounts to retailers. By 2002, nearly $240 billion was
spent on local and national advertising, while spending on sales
promotion programs targeted toward consumers and retailers
increased to more than $250 billion. Companies bombarded the U.S.
consumer with messages and promotional offers, collectively
spending more than $30 a week on every man, woman, and child in
the country—nearly 50 percent more per capita than in any other
nation.

Promotional expenditures in international markets have grown as

well. Advertising expenditures outside the United States increased
from $55 billion in 1980 to nearly $214 billion by 2002.2 Both foreign
and domestic companies spend billions more on sales promotion,
personal selling, direct marketing, event sponsorships, and public
relations, all important parts of a firm’s marketing communications
program.
The tremendous growth in expenditures for advertising and

promotion reflects in part the growth of the U.S. and global
economies and the efforts of expansion-minded marketers to take
advantage of growth opportunities in various regions of the world.
The growth in promotional expenditures also reflects the fact that
marketers around the world recognize the value and importance of
advertising and promotion.

Advertising and Promotion “An Integrated Marketing

Communication Perspective”
For many years, the promotional function in most companies was

dominated by mass media advertising. Companies relied primarily on
their advertising agencies for guidance in nearly all areas of
marketing communication. Most marketers did use additional
promotional and marketing communication tools, but sales
promotion and direct-marketing agencies as well as package design
firms were generally viewed as auxiliary services and often used on a
per-project basis. Public relations agencies were used to manage the
organization’s publicity, image, and affairs with relevant publics on
an ongoing basis but were not viewed as integral participants in the
marketing communications process.
Many marketers built strong barriers around the various marketing

and promotional functions and planned and managed them as
separate practices, with different budgets, different views of the
market, and different goals and objectives. These companies failed to
recognize that the wide range of marketing and promotional tools
must be coordinated to communicate effectively and present a
consistent image to target markets.
Many companies are realizing that communicating effectively with

customers and other stakeholders involves more than traditional
marketing communications tools. Many marketers, as well as
advertising agencies, are embracing the IMC approach and adopting
total communication solutions to create and sustain relationships
between companies or brands and their customers. Some academics

and practitioners have questioned whether the IMC movement is just

another management fad.
The move toward integrated marketing communications is one of the

most significant marketing developments that occurred during the
1990s, and the shift toward this approach is continuing as we begin
the new century. The IMC approach to marketing communications
planning and strategy is being adopted by both large and small
companies, as well as ad agencies and has become popular among
firms promoting consumer products and services as well as business-
to-business marketers.
A fundamental reason is that they understand the value of

strategically integrating the various communications functions rather
than having them operate autonomously. By coordinating their
marketing communications efforts, companies can avoid duplication,
take advantage of synergy among promotional tools, and develop
more efficient and effective marketing communications programs.
Advocates of IMC argue that it is one of the easiest ways for a
company to maximize the return on its investment in marketing and
promotion
Major changes have occurred among consumers with respect to

demographics, lifestyles, media use, and buying and shopping
patterns. For example, cable TV and more recently digital satellite
systems have vastly expanded the number of channels available to
households. Some of these channels offer 24-hour shopping networks;
others contain 30- or 60-minute direct-response appeals known as
infomercials, which look more like TV shows than ads. Every day more

consumers are surfing the Internet’s World Wide Web. Online

services such as America Online and Microsoft Network provide
information and entertainment as well as the opportunity to shop for
and order a vast array of products and services. Marketers are
responding by developing home pages on which they can advertise
their products and services interactively as well as transact sales.
Even as new technologies and formats create new ways for marketers
to reach consumers, they are affecting the more traditional media.
Television, radio, magazines, and newspapers are becoming more
fragmented and reaching smaller and more selective audiences.
The integrated marketing communications movement is also being

driven by changes in the ways companies promote their products and
services. A major reason for the growing importance of the IMC
approach is the ongoing revolution that is changing the rules of
marketing and the role of the traditional advertising agency.
Major characteristics of this marketing revolution include:
A shifting of marketing dollars from media advertising to other

forms of promotion, particularly consumer- and trade-oriented
sales promotions. Many marketers feel that traditional media
advertising has become too expensive and is not cost-effective. Also,
escalating price competition in many markets has resulted in
marketers’ pouring more of their promotional budgets into price
promotions rather than media advertising.

A movement away from relying on advertising-focused

approaches, which emphasize mass media such as network
television and national magazines, to solve communication
problems. Many companies are turning to lower-cost, more targeted
communication tools such as event marketing and sponsorships,
direct mail, sales promotion, and the Internet as they develop their
marketing communications strategies.
A shift in marketplace power from manufacturers to retailers. Due

to consolidation in the retail industry, small local retailers are being
replaced by regional, national, and international chains. These large
retailers are using their clout to demand larger promotional fees and
allowances from manufacturers, a practice that often siphons money
away from advertising. Moreover, new technologies such as
checkout scanners give retailers information on the effectiveness of
manufacturers’ promotional programs. This is leading many
marketers to shift their focus to promotional tools that can produce
short-term results, such as sale promotion.
The rapid growth and development of database marketing. Many

companies are building databases containing customer names;
geographic, demographic, and psychographic profiles; purchase
patterns; media preferences; credit ratings; and other characteristics.
Marketers are using this information to target consumers through a
variety of direct-marketing methods such as telemarketing, direct
mail, and direct-response advertising, rather than relying on mass
media. Advocates of the approach argue that database marketing is
critical to the development and practice of effective IMC.

Demands for greater accountability from advertising agencies and

changes in the way agencies are compensated. Many companies are
moving toward incentive-based systems whereby compensation of
their ad agencies is based, at least in part, on objective measures
such as sales, market share, and profitability. Demands for
accountability are motivating many agencies to consider a variety of
communication tools and less expensive alternatives to mass-media
advertising.
The rapid growth of the Internet, which is changing the very

nature of how companies do business and the ways they
communicate and interact with consumers. The Internet revolution
is well under way, and the Internet audience is growing rapidly. The
Internet is an interactive medium that is becoming an integral part of
communication strategy, and even business strategy, for many
companies.
Companies are thus recognizing that they must change the ways they
market and promote their products and services. They can no longer
be tied to a specific communication tool (such as media advertising);
rather, they should use whatever contact methods offer the best way
of delivering the message to their target audiences. Ad agencies
continue to reposition themselves as offering more than just
advertising expertise; they strive to convince their clients that they can
manage all or any part of clients’ integrated communications needs.
Most advertising agencies recognize that their future success depends
on their ability to understand all areas of promotion and help their
clients develop and implement integrated marketing communications
programs.

Agencies learn that it’s about More Than Advertising
During the late 1980’s many of the world’s largest advertising agencies
recognized that their clients were shifting more and more of their
promotional budgets away from traditional media advertising to other areas
of marketing communication such as direct marketing, public relations,
sales promotion, and event sponsorship. In response to this trend, many of
these agencies began acquiring companies that were specialists in these
areas and ended up turning them into profit-centered departments or
subsidiaries that often ended up battling one another for a piece of their
client’s promotional budget. While the agencies could point to these
specialists when touting their IMC capabilities, there was really little
emphasis on integrating the various communication functions.
During the 90’s, some agencies began taking steps to place more of an
emphasis on IMC by truly integrating it into all aspects of their operations.
For example, the Leo Burnett Agency brought in direct-marketing, sales
promotion, event marketing, and public relations professionals and
dispersed them throughout the agency. Burnetters were expected to interact
with clients not as advertising specialists who happened to know about
sales promotion, direct marketing, or public relations but as generalists able
to work with a variety of integrated marketing tools. Another agency that
embraced IMC was Fallon Mcelligott, which hired a president of integrated
marketing and expanded its capabilities in areas such as PR, events, and
interactive advertising. As we begin the new millennium, the shift toward
IMC is taking place at a number of major ad agencies that are recognizing
they must embrace a way of doing business that doesn’t always involve
advertising.
Many companies are developing campaigns and strategies using event

marketing, sponsorships, direct marketing, targeted radio, and the internet
with only peripheral use of print and TV advertising. The internet poses a

particular threat to traditional agencies as it is not well understood by many

agency veterans and is taking yet another slice from the marketing
communications budget pie.
Foote, Cone & Belding is remaking itself as a new economy ad agency by

building up its capabilities in areas such as direct marketing, interactive,
customer relationship, management database, event marketing, and sports
marketing. FCB touts its ability to offer clients a broad spectrum of
integrated marketing communications services through its “model of one,”
which ensures that all these services are seamlessly integrated and unified.
All efforts are managed under one team and based on one strategy and one
broad creative idea.
At J. Walter Thompson, the agency’s CEO, Chris Jones, has championed a

program called Thompson Total Branding (TTB) that makes JWT the
manager of a client’s brand. TTB involves taking what the agency calls a
“branding idea” and developing a total communications plan that helps
decide which integrated marketing tools can most powerfully and
persuasively communicate it. One of the company executives notes,
“Agencies are finally realizing that our job is creating branding solutions
and, while those may involve advertising, it’s not necessarily about
advertising. That’s a fundamental change in the way we operate.” The
ability to use various IMC tools has helped the agency secure new accounts
and strengthens relationships with existing clients.
While traditional agencies have been preaching integrated marketing for

years, many have not been really practicing it. However, these agencies are
realizing they must alter their course if they plan to be competitive in the
future. They are retraining their staffers in the use and best practices of
various IMC tools and getting them, at long last, to focus on total
communications solutions to their clients’ businesses.

Case Study
How the Entertainment Industry Capitalizes On Integrated

Marketing Communications
With many channels and media options in the league, the

entertainment industry is not left behind in advertising to prove its
existence. Each channel can be viewed as a product for different set of
consumers, in this case, viewers. It is not just enough to air a channel,
it is equally important to communicate it properly. Entertainment
industry thus is convinced that using IMC to advertise itself is the
need of the hour.
As the entertainment industry is forced to become more creative in

reaching its audiences, the opportunities for marketing
communications are endless. With burgeoning franchises,
entertainment companies have begun to delve deeper into marketing
strategies that enable them to connect with their customers across
their whole range of properties and communication divisions. The
hype about integration has created a "buzz" in Entertainment Industry
that has the industry turning out some of the best marketing
strategies and campaigns in years.
Entertainment companies are defining their success with well-

thought-out, consumer-driven strategies and are using an array of
marketing tools to connect with audiences in more relevant and
creative ways. In the process, integrated marketing communications
(IMC) is beginning to take center stage as the entertainment industry’s
shining star.

Case Study
IMC Takes Center Stage
IMC has taken center stage in the entertainment industry as a result of

several factors and trends. Two of the greatest of these factors driving
IMC principles are:
The Proliferation of Media Choices
The proliferation of media has fragmented audiences, making it

harder and harder to reach them through traditional means. Today’s
media competitive frame includes approximately 12 networks, 213
cable channels, hundreds of radio stations and even more magazines.
At the same time, consider the number of movies and home videos
released each month. Even still, we must add the thousands of
websites available on the Internet to this media mix.
The Changes in Consumer Media Consumption.
As the number of media options has increased, audiences have

become more diversified. Viewers are now able to make choices in
their media consumption that match their specific interests.
Using creativity and marketing savvy, the entertainment industry has

successfully capitalized on aligning communication vehicles through
the following four principles:

Case Study
Principle I – “Focus On Consumer”
The industry is increasingly becoming more consumer-focused, using

media outlets to find out what their consumers want and then deliver
it to them through well-defined, specific formats and programming.
Entertainment companies are proving that they know this theory
better than most others. The business is using integrated marketing
principles to connect with its customers not only through its
advertising messages, but also through the entertainment product it
offers.
As explained earlier, the proliferation of media today has resulted in

extreme audience segmentation.
For example, the JAAGRAN network reaches ethnic viewers,

NICKELODEON offers specific children programming, and ESPN
attracts sports fans. The rise of such specific television formats
indicates that the industry is moving toward segmentation strategies.
The effects of audience segmentation in the entertainment industry
have led to marketing strategies shaped by the consumer.

Case Study
Case in Point- “The Rugrats on Nickelodeon”
Nickelodeon demonstrates this principle in its explicit commitment to

its consumers — kids. Nickelodeon is the creator of the first television
network for kids. The network became the 24 -hour cable ratings
leader for the first time in 1995 and continues to hold the title today.
Kids are at the very core of this network. As its website touts, kids are
the creators, drawers, thinkers and writers for everything that takes
place on Nickelodeon.
As a result of this cable channel’s philosophy, much of its programming

follows the same lead. For example, The Rugrats, is an animated series about
life from a toddler’s point of view and is written completely from a child’s
perspective. The growing success of this animated series could be trumpeted
as the result of the audience perspective upon which it is based.

Case Study
Principle II – “Aligning Marketing Communications Vehicles”
Another essential communication principle appearing in

entertainment marketing strategies involves the various
communication tools employed in delivering messages to consumers.
The spotlight on the entertainment industry’s marketing strategies is

most evident through the creative executions that the various
marketing mix elements offer the entertainment industry. With all of
the competition, the entertainment industry can no longer create
something and expect people to come see it. Instead, it has to promote
it and promote it right. This means communicating with its audiences
at every point that they interact with the brand.
Case in Point: “The Rugrats Movie”
The marketing campaign for the release of

Nickelodeon’s The Rugrats Movie
demonstrates how a successful
entertainment marketer builds this
experience across all brand contacts. The
movie was scheduled to open November
25, 1998. The integrated marketing
strategy for this animated film based on
the TV series included computer games, CDs, magazines, books, a
comic strip, toys, an amusement park and a live stage show.

Case Study
The official buildup of the movie began with on-channel promotion,

including new TV episodes, leading to one that sets up the movie by
revealing that the main character’s mom is pregnant.
Other Rugrats promotional support included a partnership with

Burger King for a Kids Club promotion.
Also in the marketing mix was the release of two computer programs in
the month preceding the movie release, one of which was based on
the movie itself.
Furthermore, the Rugrats marketing blitz included:
• A newspaper comic strip.

• A guest appearance at Paramount’s King Island where kids will
have an opportunity to meet their favorite Rugrats characters
during a "Rugrats Weekend’.
• A live musical tour.
• A Simon & Schuster book series to coincide with the U.K.
release of the movie.
• Rugrats merchandise and hundreds of licenses for Rugrats items
(including dolls, board games, clothing, bedding, videos, fruit
snacks, school supplies, greeting cards and party goods).
• Through this comprehensive marketing strategy, Nickelodeon
brought ‘The Rugrats’ and the movie into the lives of its
audience in all ways that it interacts with the brand.

Case Study
Principle III – “Measurement and Feedback Loop”
As the entertainment industry has moved toward more consumer-

focused strategies, it has integrated the customer into the feedback
loop in order to find out exactly what its specific target is seeking.
The Internet is one of the most recent ways that the entertainment
industry is working to close the loop in communicating with their
audiences. The Internet allows the entertainment industry to receive
first-hand feedback about products from its audiences, while building
relationships in the process.
Case in Point : “Disney.com”
Entertainment franchises are quickly

learning how to take advantage of this
new opportunity called the Internet.
Disney has long set the standard for
marketing success, utilizing several
integrated marketing principles such
as corporate synergy. Recently the
marketing franchise has expanded its ability to connect with its
audience through its corporate home page. According to a survey,
Disney’s website was recently ranked number nine on a list ranking
several websites’ ability to build relationships. Disney.com
incorporates several vehicles to connect with its audience

Case Study
One method Disney utilizes to accomplish this task is through live

chat events where kids can talk to their favorite Disney stars online.
The use of such tactics is building relationships with their viewers
that were never possible before.
Another way that Disney.com builds relationships is by expanding

the entertainment experience online. Its website features
opportunities such as Club Disney, real play areas in two locations,
where they can plan their trips, tours and birthday parties online
before they visit.
In addition, the website provides kids and their families’ direct

access to all aspects of the Walt Disney franchise including its
movies, the amusement parks, the Disney Channel, Radio Disney, its
TV shows, the company’s cruise line, the Disney Vacation Club, the
Disney Magazine, and all of the other various company divisions
spanning computer software to home video.
In this way, Disney is always accessible to kids and their parents.

Also, the way in which Disney.com provides audience contact with all
divisions of the company helps to reinforce all that Disney has to offer
its customers. The outstanding performances that the entertainment
industry has executed certainly suggest that integrated marketing
communications deserves a star on Hollywood’s famous "Walk of
Fame." However, the industry would be amiss if it did not recognize
the ways in which it could further its alignment with IMC practices
and principles.

Case Study
Success Factors
The Entertainment Industry’s use of Integrated Marketing

Communications highlights some success factors for effectiveness
and these include:
Segmenting valuable customers.
Analyzing profitability.
Examining customer, brand & stakeholder contact points with the

company.
Marketing based on consumer differences, not similarities.
Using databases for behavioral segmentation and lead management.
Creating strategic, effective communications-based initiatives.
Driving communications to a new level of customer and stakeholder

fulfillment retention.
Achieving consumer satisfaction and bottom-line profitability.

Conclusion
For many years, the promotional function in most companies was

dominated by mass-media advertising. However, more and more
companies are recognizing the importance of integrated marketing
communications, coordinating the various marketing and
promotional elements to achieve more efficient and effective
communication programs. A number of factors underlie the move
toward IMC by marketers as well as ad agencies and other
promotional facilitators. Reasons for the growing importance of the
integrated marketing communications perspective include a rapidly
changing environment with respect to consumers, technology, and
media. The IMC movement is also being driven by changes in the
ways companies market their products and services
A shift in marketing dollars from advertising to sales promotion, the

rapid growth and development of database marketing, and the
fragmentation of media markets are among the key changes taking
place. Promotion is best viewed as the communication function of
marketing. It is accomplished through a promotional mix that
includes advertising, personal selling, publicity, public relations, sales
promotion, direct marketing, and interactive /Internet marketing. The
inherent advantages and disadvantages of each of these promotional-
mix elements influence the roles they play in the overall marketing
program. In developing the promotional program, the marketer must
decide which tools to use and how to combine them to achieve the
organization’s marketing and communication objectives.

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Introduction to IMC

As The Wall Street Journal observed in reporting on the Project Blue

It's not just Pepsi's marketing communication that sends different

Mapping The Role of IMC in ‘Ad-World’ 1

“Everything Sends a Message”

What happened to Pepsi dramatizes the point that message consistency

As Nicolas Hayek, CEO of Swatch, says, "Everything we do, and the

In the marketplace of the 21st century the driving force is not a

Mapping The Role of IMC in ‘Ad-World’ 2

Integrated Marketing Communication

Integrated marketing is a comprehensive approach to internal and

As per American Association of Advertising Agencies –

“The concept of integrated marketing communications planning that

According to Don Schultz –

“Integrated marketing Communications is a new way of looking at the whole

A successful IMC campaign requires that the firm finds a right

Mapping The Role of IMC in ‘Ad-World’ 3

In the words of Duncan and Everett –

“Integrated Marketing Communications may be defined as “The strategic

The focus here is on two aspects

1) Being present at all the contact points.

If this does not happen

Mapping The Role of IMC in ‘Ad-World’ 4

Necessary Conditions for an Effective IMC Program

Today, IMC definitions are broader in application, as a brand is

1. It must speak to all stakeholders with a "single," consistent voice.

Thus in the IMC approach, the different communications are in the

Mapping The Role of IMC in ‘Ad-World’ 5

An Analogy – A Symphony Orchestra

'Integrated communications' are like a band. The different

Second, all the different disciplines must play in harmony.

Mapping The Role of IMC in ‘Ad-World’ 6

Similarly, badly done integrated marketing campaigns squeeze

A company that wants to make maximum use of the synergy of

There Are Two Critical Factors That Influence The Effectiveness Of

• The first is the strategic combination or "mix" of the basic elements.

Mapping The Role of IMC in ‘Ad-World’ 7

Factors Contributing to IMC's rising Prominence

Fragmentation of media : Both the Print and the Television media

Better audience assessment: More sophisticated research methods

Consumer empowerment: Empowered consumers are more

Increased advertising clutter: This has diluted the effectiveness of

Many marketers feel that traditional advertising is too expensive and

Database Technology: This can be used to create accurate customer

Mapping The Role of IMC in ‘Ad-World’ 8

Channel Power: Retail channels are developing power and hence

Increased Accountability: This have led the firms to reallocate

Mapping The Role of IMC in ‘Ad-World’ 9

4P’s versus the 4 C’s

The current revolution in the market has brought about several

Not PRODUCT, But CONSUMER

Not PRICE, But COST

Not PLACE, But CONVENIENCE

Mapping The Role of IMC in ‘Ad-World’ 10

Not PROMOTION, but COMMUNICATION

Mapping The Role of IMC in ‘Ad-World’ 11

The Heart of IMC

1. Customer Focus: One’s message must be appealing, relevant and

2. Customer Empowerment: One should empower the customer to

3. Immersive Marketing: One need to be consistent at all the contact

4. Brand Resonance: Communicating while creating relationship must

Mapping The Role of IMC in ‘Ad-World’ 12