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Integrated Marketing Communication (IMC)


The fall of McCann & emergence event activation agency). ... Strong brand equity is recognized by the financial market and commonly increases the share price of the ... – PowerPoint PPT presentation

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Title: Integrated Marketing Communication (IMC)

Integrated Marketing Communication (IMC)
  • Sport Marketing
  • USF Sport Management
  • Dr. J. Andrew Choi

  • A process through which companies accelerate
    returns by aligning communication objectives with
    corporate goals (Shultz Schultz, 2003).
  • Strategic marketing initiative focused on
    one-sight, one-sound communication both
    internally and externally.
  • A communication tactic developed in the late 80s
    and early 90s.

Back then
  • The elder Bush occupied the White House.
  • China was just opening the doors to the outside.
  • Internet belonged to geeks.
  • Emails and dot-coms foreign to many.
  • TV advertising dominant form of commercial
  • Marketers thought in terms of products, not
  • Companies were strictly divided into biz
    functions or units, all separate and independent,
    and managed from the top down. No
    cross-functional teams.
  • Integration was a difficult concept.

  • The explosion of technology changed all that and
    IMC finally emerged!
  • Tumultuous business environment of pro and
    anti-integration (too difficult to implement,
    take away creativityetc)
  • A few forward thinking pioneers began to develop
    and implement IMC w/in their org.
  • (Personally lived through this period Brand
  • Today, the IMC has achieved acceptance in
    businesses of all types!

Why the new IMC?
  • WARNING The New IMC will overturn some
    traditional marketing principles and concepts!
  • Customers now relate to brands, not to the
    various forms of marketing or marcomm branding
    becomes the basis of integration.
  • A focus on individuals, not market segments.
  • Increased focus on measurement and accountability
    in sport industry as well.
  • Strategic and value-driven, linked to the short-
    and long-term goals of the entire org, not just
    to product sales objectives! (Strategic issues
    How much to invest, how much ROI, when will ROI
  • A global approach

  • What DROVE the emergence of the
  • new IMC?

The Factors
  • 1. A shift away from the Four Ps
  • 4 Ps Model
  • The traditional theory base for almost all
    marketing education and practice. Governed the
    manner in which businesses conducted their
    marketing activities. If a company got each of
    the Four Ps right, business would grow and
  • Only an internal orientation w/o the mentioning
    of customers or profits!
  • Managers managed things they knew and controlled
    (4Ps) selection of products, setting of
    prices, organization of distribution channels,
    implementation of advertising and promo programs
  • Market share was the gateway to profits in the
    1980s (outspend, out-promote, out-distribute)

The Factors
  • 1990s the Fall of the 4Ps Model in America
  • Cost efficiency was critical and this meant
    integration of business functions.
  • Category killers giant retailers that
    consolidated activities for consumers and
    dominated suppliers (manufacturers) overnight.
  • Ex. Wal-Mart, Home Depot, Toys-R-Us, Best Buy
  • Manufacturers no longer controlled the
    distribution channel (Place) and the other
    components of the 4 Ps slipped away.

The Factors
  • 2. A parallel shift in marketing spending
  • From the promo mix of the 80s (sales force,
    media ad, publicity) to a new breed of comm
    strategies (sales promo, direct marketing, PR
  • Below the line new promo techniques
    (discounts, contests, sponsorships) Push
  • Above the line traditional ad building
    long-term brand image Pull
  • More and more marketing were supported to
    measurable, incremental, fast-acting solutions
    below the line activities.

The Factors
  • 3. Demand for IMC
  • Traditionally, marketing were devoted to ad
    media (TV, NPP, magazines, outdoor, radio)
  • By 2000, a 5050 split in ad and promos!
  • To protect from decreasing revenue streams, ad
    agencies created one-stop shopping (ex. The
    fall of McCann emergence event activation
  • 1st attempt at IMC but a shaky one due to lack of
    all-around expertise.

The Factors
  • 4. Growth drivers of IMC
  • a. Development of digital technology across
    entire spectrum of biz operations.
  • b. Increasing emphasis on branding and
    experiencing brand as the major competitive
    differentiating tool
  • c. Increasing focus on globalization as marketers
    spread across the traditional geographic
  • d. Accountability and the measurement of
    financial returns on marcomm activities.

The new IMC
  • Technology
  • Advent of Internet and e-commerce
  • IMC now a two-way communication channel (outbound
    AND inbound)
  • Consumer insights direct marketing now more
    feasible than before thanks to Internet

The new IMC
  • b. Branding
  • From innovate and grow to copy and improve
    a new breed of competitors emerged.
  • (ex. Private Brands everywhere)
  • No longer a battle of products, but of BRANDS (or
    brand power) and what they meant to consumers.
  • From the battle of the tangibles (products) to
    intangibles (brands)

The new IMC
  • c. Globalization
  • E-communication enabled companies to operate
    real-time, 24/7, around the globe ? Growth of
    multinationals seeking new market opportunities
    in the 90s
  • New communication strategies required Create a
    unified, consistent, and integrated brand
    strategy while remaining responsive to the unique
    needs of individual markets and cultures ?
  • Global strategies, local executions Think
    globally, act locally

Case Study
  • Intel Inside IMC campaign

8 Guiding principles of IMC
  • 1. Become a customer-centric organization

Top Management
Customers Prospects
Traditional Organization
Integrated Organization
8 Guiding principles of IMC
  • 2. Use outside-in planning

Outside-in planning
Lapsed Customer
Retain Present Customer
Inside-out planning Dollar or volume
objectives Costs Contribution
margin Marketing funds Allocation against
prospects Communication choices
Migrating Customer Groups
Grow Present Customer
New Prospect
Emerging Customer
Marketing organization
8 Guiding principles of IMC
  • 3. Focus on the Total Customer Experience
  • How the product or service performs in the
    marketplace, how it is obtained, the capability
    of channel members to provide products in a
    timely and efficient manner, how customer service
    is delivered, and what type of social impact the
    firm makes in the community it inhabits.
  • Create Brand Touch Points

8 Guiding principles of IMC
  • 4. Align consumer goals with corporate objectives
  • The IMC objectives must do one of the following
  • Generate short- and long-term cash flow increases
    greater than the cost of the marketing and
    communication program used to achieve them
  • Accelerate cash flows move the flow of income
    from customers and prospects forward in time, or
    increase the speed with which those cash flows
    are acquired.
  • Stabilize on-going cash flows smooth out cash
    flow fluctuations
  • Build shareholder value by increasing the equity
    of the firm or the brand. Strong brand equity is
    recognized by the financial market and commonly
    increases the share price of the firm, both of
    which will provide value for shareholders. (ex.
    Wharton article on stock investment)

8 Guiding principles of IMC
  • 5. Set customer behavior objectives
  • The 4 outcomes IMC marketers desire
  • Acquire new customers
  • Retain and maintain present customers
  • Retain and grow sales volume or profit from
    existing customers make them buy more.
  • Migrate existing customers through the firms
    product or service portfolio to higher priced
    or higher-margin products
  • Sound familiar? Remember the 4 STRATEGIES?

8 Guiding principles of IMC
  • 6. Treat customers as assets.
  • Customer - the primary unit that generates
    income flows for the org.
  • Marcomm managers are asset managers (I LOVE
    THIS CONCEPT!) -- Should be responsible for the
    initiation, continuation, and maintenance of

8 Guiding principles of IMC
  • 7. Streamline functional activities
  • Too many silos within the marketing function
    create unnecessary battles for turf and budget!
    no relevance to the customer needs!
  • Customers view on marcomm comes down to only
    one of the two Messages and incentives
  • Messages brand concepts, ideas, associations,
    values, and other perceptions the firm wants
    customers and prospects to store away in memory
    ( Pull Marketing Above the Line)
  • Incentives short-term offers or rewards for
    doing something the firm believes will be of
    value to both itself and the consumer or
  • ( Push Marketing Below the line)
  • Simplify and aggregate accordingly!

8 Guiding principles of IMC
  • 8. Converge marcomm activities
  • The blending of traditional marcomm with
    electronic marketing and communication
  • Now, the customers who see the brands TV
    commercials are, for most part, the same ones who
    are accessing websites and shopping online.
  • Convergence will occur sooner than expected.

8 Guiding principles of IMC
  • Extra
  • COMPENSATION for your employees a key driver
    in how well the firm can integrate, how well it
    can become customer focused, how well it can
    develop and deliver on customer wants and
  • Reward system must be consistent with its
    integrated approach how well they serve
    customers (not how many!)

IMC a 5-step process
  1. Identify customers prospects

2. Valuation of customers/ prospects
5. Budgeting, allocation, evaluation
3. Creating delivering messages
4. Estimating return on Customer investment