IMC Unit 5
IMC Unit 5
• Horizontal Integration occurs across the marketing mix and across business functions – for
example, production, finance, distribution and communications should work together and be
conscious that their decisions and actions send messages to customers.
• While different departments such as sales, direct mail and advertising can help each other
through Data Integration. This requires a marketing information system which collects and shares
relevant data across different departments.
• Vertical Integration means marketing and communications objectives must support the higher
level corporate objectives and corporate missions.
• Meanwhile Internal Integration requires internal marketing – keeping all staff informed and
motivated about any new developments from new advertisements, to new corporate identities, new
service standards, new strategic partners and so on.
• External Integration, on the other hand, requires external partners such as advertising and PR
agencies to work closely together to deliver a single seamless solution – a cohesive message – an
integrated message.
Definitions of Integrated Marketing Communications (IMC)
1. Identify target audience: Promotional process must start with identify target audience by
using segmentation, which is defining buying preferences and characteristics of buyers and dividing
them into segments. The goal of identify target audiences is to design promotional strategies that can
meet the customer expectations more accurately. Thus, IMC which integrating and coordinating of
all types of marketing promotional tools that maximize satisfaction of buyers will be very useful to
the firm’s promotional strategies. This is because IMC can help the company by providing customer
databases to sellers and marketers to identify information about the buyers precisely and accurately.
2. Determine the communication objectives: In the second stage, company need to develop a
clear objective and the goals of promotional strategies. The objectives of promotional strategies
include creating products and services awareness in the buyers’ mind, developing competitive
advantages against competitors, creating brand equity of buyers, retaining current buyers and
changing buyers’ behaviors. Meanwhile, Integrated Marketing Communication (IMC) develops
different types of promotional tools, which have containing different functions to achieve the
communication objectives of the promotional strategies effectively and efficiently.
3. Design messages: An effective message will get the attention from buyers and maintain their
interest toward the messages about their brand of products. Therefore, promotional team of a firm
should implement IMC when designing the messages deliver to each segment in order for the
messages to be delivered effectively. Although a tailored message for each target segments designed
by using several promotional tools in IMC process, but the messages of promotions must have same
meaning and theme. This is because each of promotional tools must used to achieve the same
communication objectives and goals within the firm.
4. Implementation of promotional strategy: Promotional channels can divide into two
categories, which consists of personal communication and non personal communication channels. So
when incorporated IMC into the promotional strategy, it needs to select and implement the right
marketing channels and methods. No single channel can dominates in all aspects, which means that
the channels need to be adjusted based of the markets needs and changes from time to time. This has
proven that IMC which integrating and coordinating of all types of marketing promotional channels
can be very useful when it comes to the implementation of promotional strategy process.
5. Collecting feedback: Finally the firms will carry out some surveys in order to get some
feedback from the target audience as the final step in the IMC process. For example, the firm will ask
how effectively the message was delivered to the target audience, such as how many times the
audience saw the advertisement or can the audience remember what the message marketers are going
to inform and etc. Based on that, the firm will conduct a report about the behavior resulting from the
message, such as how many of the target audiences buy the product or visit the store after they saw
the advertisement. These information could be very important to the firm promotional strategies as it
could directly affects the volume of sales, profits and indirectly reflect to the successfulness of the
promotional strategies that had been implemented. Hence, all this information can get from the
customer database to create more accurate and reliable feedback.
Why Companies are Adopting Integrated Marketing Communications (IMC)?
Companies look at Integrated Marketing Communications (IMC) as a way to coordinate and manage
their marketing communication programmes to ensure that they give customers a consistent message
about the company or its brands. IMC represents an improvement over the traditional method of
treating the various marketing and communication elementsas virtually separate activities. The IMC
approach helps companies identify the most appropriate and effective methods for communicating
and building relationships with their customer as well as other stakeholders such as employees,
suppliers, investors, interest groups and the general public.
• Can consolidate image of company, develop a dialogue and nurture its relationship with
customer: Integrated Marketing Communications focuses on using all the organizations advertising
and promotional efforts towards delivering the same united message. It can make the intended
information and messages including slogans, quotes, facts, and figures more consistent in the process
of transmitting messages from producers to buyers. It can be used in consolidating the image of
company, develop a dialogue and nurture its relationship with customer. Clear and consistent
marketing message are able to reach the target audience in the shortest time without confusing them
and ensure that all the segment of the campaign can be reached. Hence, it creates a long term
relationships with our target customer. These customers could be present or future, internal or
external. This will help company to keep the profitable customer for life. Adversely, if different
division handling their own marketing activities in the company, it may result in the situation in which
sales people giving out different marketing message while corporate department giving out another
inconsistent message that lead to confusion. Lack of consistent of messages just may confuse or
distract the buyers. In addition, it also helps buyers to shorten their buying process, especially stage
of search information about each alternative of products with different brand. In conclusion, IMC is
very important in deliver the consistent image and message.
• Reduce Confusion of the product: Through IMC, buyer can reduce their confusion when
choosing a product which can deliver superior value and satisfactions to them by presented in a planed
sequence with communication tools. IMC also help buyers by update new information about a
product or special offers; give reminders about existing product timely and others. Therefore, buyers
and consumers can afford a new product within fastest time and repurchase a product when they are
always persuaded by the communication tools such as advertising or buy additional services and
products from the same sellers.
• Increase the profit through increase effectiveness: Besides, Integrated Marketing
Communication also can increase the profit by increase its effectiveness. This is because impact of
unified message on the customer’s mind is bigger than impact of disjointed myriad of messages. By
using Integrated Marketing Communication, message transmitted has a better chance of cutting
through the barriers of commercial message that bombard customer each day. When customer
received a crystal clear message about the product and service, they will tend to build a long term
relationship with the company and hence the market share will increase gradually. It will be profitable
for the company for long term. By providing clearer message and develop a strong strategy
positioning company product in the market, competitive advantage can be delivered to differentiate
themselves from other competitor. Thus it will increase the customer satisfaction and promote
increasing profit in the long run. It can be proved by research from Centre for Integrated Marketing
which shown that by adopting integrated marketing communication, it can enhance business
performance by 10% to 25%.
• Integrated Marketing Communication can boost sales by stretching message across
several communication tools: It is profitable when customer practice Integrated Marketing
Communication which will deliver superior value more effectively by using a combination of variety
communication channel like sales promotion and direct marketing. By stretching messages across
several communication tools, purchase can be increased gradually because it create more avenues for
customer to become aware about the product itself and its benefit. It will definitely boost sales by
gradually increase in customer purchase. This is because by using the integrated marketing
communication, we can deliver our information toward more specific target audiences. It is like a
more specialized media compare to other mass media. So, it can reach the potential target customer
with the high accuracy and the probability of those customers to purchase product offer is higher. It
can maximize the effect on customer with lower cost if integrated marketing communication is used
wisely.
• Integrated marketing communication can help the company to save money: Any
communication tool should integrate with and draw on as many other communication tools as
possible in order to maximize cost effectiveness. Integrated marketing communication can saves a
lot of money in the promotional effort as compared to other who does not adopt it. This is because it
enables the company to reduce unnecessary cost by cutting down number of agencies. By choosing
the same service supplier, it can coordinate photography, design and printing of advertisement and
also sales literature. Hence it will save a lot of money and work effort because it avoids duplication
in areas such as graphics and photography. Moreover, it also can save a lot of time. Times can be
saved when we organized meeting that bring all the agencies together for briefing, creative session,
tactical or strategy planning. Hence, workload and subsequently stress level can be reduced when
company practice integrated marketing communication.
• Reliability of the messages: In the un-integrated communication marketing, sellers or
marketers always send out of disjointed of messages and information to buyers. As a result, it directly
dilutes the impact of messages and many messages will fail to arrive, misunderstood, simply ignored
by buyers because of its reliability. Moreover, without using IMC method, it may bring anxiety
frustrate and confuse to buyers, and then buyers will not have confidence and trust in this brand and
their product. This also gives bad effect such as transactions in market which cannot carry out
smoothly, and sometimes buyers are unlikely to buy the product again because the performance of
the product cannot meet their expectations and cannot provide them satisfactions. Then it affects the
volume of product sales, which also give bad impact to the business objectives and normally sellers
were blamed as they did not achieve the target given to them. The problem of un-integrated
communication marketing can be solving by using IMC method. Ability of sellers to use several
communication tools for creates the messages and information in a form that can be easily understood
by the buyers which give reliable, inspire, reassure of sense to buyers in the buying process.
• Customer Database: Moreover, IMC also provides customer databases to sellers and
marketers to identify information about buyers precisely and accurately. Sellers can know detail
information such as which buyers need what information throughout their buying life, name and email
address of every customers the sellers have sold to and also include what the customers purchase and
when they purchase the product. Based on all information inside the customer databases, sellers and
marketers can decide which promotional strategy should used to create effectiveness in targeting their
market. In other meaning, customer databases can be say is the best marketing tool in the IMC for to
track buyer’s interest precisely.
• Relationship marketing: In the IMC method also include “relationship marketing” which is
a form of marketing strategy emphasizes customer satisfaction and retention, rather than focus on
sales transactions for obtain short-term profits only. “Relationship marketing” different from other
types of marketing strategy in that it can recognizes value of customer relationships in long term and
protect customers from intrusive sale promotional messages and advertising. Besides that, it also
builds a bond of loyalty with buyers which can provide them protection from the unavoidable
onslaught of competition in market. Sellers and marketers can gain competitive advantages when
they can to keep a long-term customer for lifetime, offering greater customer value within IMC
method.
Factors Contributing to IMC’s Growing Popularity
1. More contact points: Traditional mass media such as radio and TV is used to be a way to
advertising a product, brand or service. This type of promotional strategy only can transmit the
information to some of the target customers but not all. Therefore, IMC is a form of promotional
strategy where all the promotional strategies are integrated so that the company able to transmit the
message to all the target customers and also the customers can interact with the company brand in
many ways. For example, a customer may have heard about one restaurant from their friend which
they had been go there before and had a great experience dining at there. After that, the customer
goes online to search information about that restaurant which include the menu and price and also
make reservations. When the days come, your restaurant have to notice how cozy the place is and
also get the chef’s recommended dishes for that night to make sure the customer satisfy what they
expected. From the example above, the IMC cover all the contact points which include customer
service, store design, direct marketing, internet, word-of-mouth marketing, after sales service, new
media and etc. Thus, IMC can be said that it is a very useful tool where it can generate more contact
point from customers.
2. More specialized media: It is used to be enough for mass media to cover any advertiser’s
needs. Due to the rising of ad clutter, greater confrontation to advertising and shorter attention spans,
and this cause the customers tend to be a lot more selective which they shut off the material that they
feel no need and select with the thing that they need. IMC can generates specialized media where not
only one of the promotional strategy is use to advertise one of the product or service. For example,
the magazines may provide to entrepreneurs, pet owners, budget travelers, sport fans and mothers.
There are also other example which are viral video clips of cats, blogs on cheap hotels and resorts in
Asia Pacific, have podcasts now that talk about starting up a successful small business.
3. Marketing in now more data-based: Nowadays, the companies like to make advertisement
through media such as TV. But the problem is do they know exactly how many people watched their
ad? The advertisers do not like to shell out wads of cash for media buy without knowing their ways
of getting the media investment back. They always want to see figures like how much they had spent
for the ad and how much they are getting back in return to support their decision. This is to evaluate
whether the time and effort that they need spent is worth it or not. So based on these facts, it shows
that IMC is playing an important role in firm promotional strategies. This is because IMC in now
more data-based. It can provide the useful and accurate data form information that needed by the
marketer and advertiser.
4. More than ever, customers are king: The power has shifted from those who make a product
to those who actually see the product. As we know, it is difficult to win back the customer you lost
than keeping an existing customer happy. Therefore, the retailers have to put more attention on
protecting their clientele and also participate in whipping up the best experience before, during and
after the sales for patrons. Promotional tool performance increase when IMC is incorporated in the
promotion of company product and service that is needed by our target customer. When IMC can
help the marketer to carry out the promotional strategy more effectively, it can meet the customer
expectation and hence create the customer delight. As an example, if the customer needs some
information for a particular product, the promotional too can help them to get the reliable and accurate
information that help the customer making the buying decision. After that, when the customer uses
the product offer by the company and found that information that the promotional tool convey match
with the product’s performance. Customer will feel delight and satisfied. This will help the company
to retain existing customer and attract new customer.
5. More widespread internet use: The customers can use the worldwide web to check what
they want anytime and anywhere they feel like it. It is also good for business people where they can
exist outside their business hours. Every company should have an online presence but no need to be
a static-brochure type website. For example, company blogs which allow us to interact with our online
audience. Normally, innovative and new promotional activities can help to bring in new business.
Through this worldwide web, we can know that our clientele are discussing about our product, brand
or service that has made a tremendous impact to them either good or bad ways. Besides, we can also
integrate promotional tool to convey the information of the product. For example, we can excess
internet to view the advertisement of the company offer. The company not only displays their
advertisement beside the road or through the television, they also can place the advertisement on the
internet so that more people can view it and excess to the company offering. In the other hand, we
can also get coupon from the internet which is also a form of integrated marketing communication
tool which incorporated the internet sources and the sales promotion. So, it is more convenience rather
than visiting the product stall to get couple.
Barriers to Integrated Marketing Communication
In spite of its many profits, Integrated Marketing Communication has many barricades. Totaling up
to the accustomed confrontation to adjust and the unique troubles of being in touch with an extensive
diversity of goal spectators, there’re further more obstruction which defies Integrated Marketing
Communication. If some companies use integrated marketing communication for its vascular
advantages other companies do not prefer to use it for several reasons:
1. Functional Silos: Resources, support and guidance of upper management are needed to build
a successful integrated marketing communications campaign. The job of upper management is to
make sure that all the resources are thoroughly no matter is for budgets, sharing data or people across
teams. However, the problem now is integrated marketing communication don’t control by one
manager only. All the managers involve in the information transmitting process have to work together
in controlling the process. It mean that all the manager of advertising team, public relation team and
also the marketing team have to coordinate in the process of delivering information about the product
and service of the company to the target customer. When the control is shared among all the team
manager, which can prove to be a difficult concept for some member of upper management, creating
a barrier to integrated marketing communication.
2. Restricts creativity: IMC can restrict creativity. With a variety of team involved in launching
an integrated marketing campaign, each team have to ensure that all the task carry out must fit the
overall goals and message of the campaign. As an example, when the promotional team comes up
with a creative idea for a sweepstakes, it must match with the integrated campaign goal to ensure the
communication process effectiveness. But, if it doesn’t fit with the realm of integrated marketing
goals, the creative plan cannot implement by the particular team no matter how high the level of
creativeness it may seem. All the teams have to follow the unified strategy to convey a consistent
message to send to our target customer.
3. Lack of Resources: When the integrated marketing communication is practiced, it requires
the entire member in the organization to take part in the process of transmitting the information to the
customer. So, in order to make sure the process of transmitting consistent and useful information to
carry out smoothly, the entire member in the organization needs to have the required knowledge and
skill to executive the strategic plan. Because skills and knowledge are the key needs, some staff
members receive training in areas they may not familiar with to ensure the success of the transmitting
information about the product and service the company offer. Hence, it will increase the company
cost and hence it will become more costly to practice integrated marketing communication. Besides,
integrated marketing communication also required proper planning and time management to ensure
the communication transmitting process become more effectively. When the marketing team delays
their work process, it will affect the sales rape work task because they are interdependence. So,
information transmitting process tends to become less effective when practice integrated marketing
communication.
4. Different Corporate Cultures: Integrated marketing communications generally include
more than just one company working to put together in a campaign. For example, pitching articles to
the press about a product launch is in charge by the public relations firm and a print advertisement
may develop by an advertising agency. The problem occur when each company take part in the
customer transmitting process tend to operate in its own unique culture, but when it is needed to
meshed with a new company culture, the result is not always positive. There is one of the potential
barriers the organization must overcome when the company practice integrated marketing
communication. As an example, the advertising company may take relaxed approach to completing
task, paying little or no attention to looming deadlines, but the public relation firm may be dead-line
driven. This different culture between the companies may cause the integrated marketing
communication process less effective to carry out.
Above the Line (ATL), Below the Line (BTL), & Through the Line (TTL) Marketing
Marketing activities (basically advertisements) today can be divided into three segments – Above the
Line (ATL), Below the Line (BTL), & Through the Line (TTL) Marketing. The line was originally
used to separate marketing activities which had mass penetration (above the line) to those which had
specific penetration (below the line). But then, because of the increased competition and development
in technology, emerged through the line marketing activities which blurs the line and include the use
of both ATL & BTL advertising activities.
ATL, BTL, & TTL Advertising
Advertising activities can be differentiated on the basis of marketing motives, target groups, and the
budget of the marketer.
Above the Line
Above the Line advertising (often referred as Above the Line promotion/ Above the Line marketing/
ATL marketing/ ATL advertising) consist of advertising activities that are largely non-targeted and
have a wide reach. ATL communication is done to build the brand and inform the customers about
the product. Conversions are given less importance in above the line advertising.
To make it simpler-
Above the line marketing includes mass marketing strategies which are largely untargeted and
are focused on building the brand.
By ‘untargeted’ we mean that the communication isn’t directed towards a specific group. The
mediums convey the message to everyone who has an access to them.
Examples of Above the Line Promotion
• Television
An average American watches 4.3 hours of TV in a day. It’s the similar case with the rest of the
world. TV advertisements have a reach from local, to national, and international audience depending
on the TV channel and the contract between the parties. TV advertisements have a better connection
with the users as moving images with audio are preferred over still images or audio alone.
• Radio
Psychologists tell us that consumers need to be exposed to an advertising message at least three times
before it begins to penetrate. No other media other than radio provide such affordability when it
comes to this frequency.
Radio is a perfect option for marketers to fulfill all the frequency and creative demands of an
advertisement. Radio to have a local, national, and international reach just like TVs.
• Print Advertisements (magazine & newspaper)
Local, regional and national print media have a wider reach than any of the other mediums.
Newspapers have fixed ad-slots that are used by the marketers to inform customers / prospective
customers about the brand or offers.
Magazines exist in niches and make it easier for marketers to reach their niche directly through them.
Advantages of Above the line marketing
• Wider Reach
Above the line advertising mediums have a wide (national/international) reach.
• Better Connect with the audience
The mediums like TV and radio use audio-visuals which have a better connect with the audience.
• Brand Building
Media advertising is a crucial tool in defining and realizing brand identity. A brand is built by the
customers. The role of marketers in brand building is to reach as many prospective customers as they
can and communicate to them about the brand and its benefits creatively. Above the line marketing,
hence, plays an integral role when it comes to brand building.
Below the Line
Below-the-line advertising (often referred as Below the Line promotion/ Below the Line marketing /
BTL marketing / BTL advertising) consists of very specific, memorable and direct
advertising activities focused on targeted groups of consumers. Often known as direct marketing
strategies, below the line strategies focus more on conversions than on building the brand.
To make it simpler –
Below the line marketing include direct marketing strategies directed to specific target
groups and focused on conversions rather than building the brand.
Examples of Below the Line Promotion
• Outdoor Advertising
Outdoor advertising is usually done in public places and are constantly on display, have a greater
(and more targeted) reach depending on the locations. They include Flags, Banners, Wraps,
Billboards, etc.
• Direct Mail Marketing
One of the most personal strategies used by marketers, direct mails (e-mails, text messages, etc.)
are tailor-made messages about the brand or different offers drafted according to the needs of each
customer. Hence this BTL strategy could result in more conversions if planned properly.
• Sponsorship
Sponsorship is a partnership with different corporates or events to get more impressions and is usually
carried as a part of brand building strategies at a BTL level.
• Brand Activation
Brand Activation is the art of driving consumer action through brand interaction and experiences. The
key aim of these campaigns is to get consumers to act and to bring brands to life via experiences and
forming long-term emotional connections.
• In Store Marketing
Marketing activities done within the retail store are called In-store marketing activities. These below
the line activities make use of various point of sales to get the most return out of the investments.
Advantages of Below the line marketing
• Extremely Targeted
Conversions are better when the communication is done according to the customer wants. Since BTL
marketing strategies are extremely targeted, results are better in terms of conversions.
• Better ROI
Below the line promotional efforts are focused on the specific target group, have a better reach, can
be easily executed, tracked, and controlled. Hence BTL strategies provide a better ROI and MROI in
terms of conversion.
• Easy Control
The return from these activities can be easily tracked and monitored and steps can be taken to improve
ROI.
• Tailor-Made
Below the line advertising strategies are designed according to the needs of a specific target group
and hence can be molded differently for different customer groups.
Through the Line
Through the Line advertising (often referred as Through the Line promotion/ Through the Line
marketing / TTL marketing / TTL advertising) involves the use of both ATL & BTL marketing
strategies. The recent consumer trend in the market requires integration of both ATL & BTL strategies
for better results.
To make it simper-
Through the marketing involves marketers to create marketing campaigns which include both ATL
& BTL strategies. It refers to 360-degree advertising where campaigns are developed with the vision
of brand building as well as conversions.
Sometimes above the line strategies are used to execute their direct marketing strategies. This
too comes under TTL marketing.
Examples of Through the Line Promotion
360° Marketing
Marketing strategies can be planned and carried out with an integrated approach of using both ATL
& BTL advertising mediums to get the maximum advantage. Most of the marketing campaigns today
are TTL campaigns.
Digital Marketing
It is possible to carry out a digital marketing strategy which offers above the line marketing benefits
while acting as a below the line communication to the customer. This type of advertising is cookie
based. Users get highly personalized communication based on their needs/wants/choices. This
strategy has a better ROI and is considered better by the consumer.