Advertising

and Promotion
An Integrated Marketing
Communications Perspective

Chapter # 1
An Introduction to Integrated Marketing Communication

Dr. Reham Farouk

"We've gone from being exposed to about 500 ads a day back in the 1970s to as many
as 5,000 a day today." Jay Walker-Smith, Yankelovich Consumer Research. Sep 17, 2006

Aug 25, 2017 Rony Marchell Digital Marketing experts Digital marketing experts estimate
that most Americans are exposed to around 4,000 to 10,000 ads each day.
When you create more media channels, you'll create more advertising
 How Many Ads Do You See In One Day?
Some of the places you see or hear ads.
◦ TV news What all marketers are
◦ Drive-time radio dealing with is an absolute
◦ TV dramas/reality TV sensory overload.
◦ Surfing the internet
◦ Outlook
◦ Social media:
Unexpected areas where we see ads daily.
Increasing engagement will
◦ Pop help advertising break
◦ Shopping through the clutter
The Growth Of Advertising And Promotion
In the Past Today

Marketers relied on media advertising Companies are integrating their advertising efforts
to attract customers to their products. with a variety of other communication tools such as
wWebsites on the Internet
wDirect marketing
wSales promotion
wPublic relations
wEntertainment marketing Sponsorship of events
 The growth of Advertising and Promotion
Evidence of the increasing importance of advertising and promotion comes from the
growth in expenditures in these areas.
In 1980, advertising expenditures in the USA were over $100 billion
◦ $53 billion was on media advertising
◦ $49 billion was spent on many sales promotion techniques.

By 2017, total advertising and non advertising marketing expenditure in the USA were estimated
to be nearly $571 billion
Total spending on digital advertising by U.S. marketers is expected to reach $100 billion by 2020
and represent 45 percent of all media advertising spending.
 The Role Of Marketing
Marketing Definition
The process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create EXCHANGE that satisfy
individual and organizational objectives. American Marketing Association (AMA)
For exchange to occur:
◦ Two or more parties with something of value to one another.
◦ The Desire & The ability.
◦ A way to communicate.

Not all marketing transactions involve the exchange of money for a product or
service.
The Role Of Marketing
Marketing Revised Definition
AMA adopted revised definition of marketing in 2007

“Marketing is the activity, set of institutions, and processes for

Creating, Communicating, Delivering And Exchanging Offering
That Have VALUE
for customers, clients, partners, and society at large”
 Benefits can be

The Role Of Marketing functional

Provides the customer with
Value is subjective successful companies strive functional utility
to provide value to their segment customers.
experiential
VALUE is the customer perception of all the
Provide customers with a positive
BENEFITS of all product or services weighed
feeling when they purchase or use a
against all the COSTS of acquiring and
particular brand
consuming
psychological
Provide an opportunity
for someone to communicate his or
her self-image.
The Role Of Marketing
Marketing facilitates the exchange process and the development of relationships by:

Carefully examining the needs and wants of consumers

Developing a product or service that satisfies these needs,
Offering it at a certain price,
Making it available through a particular place or channel of distribution,
Developing a program of promotion or communication to create awareness and interest.

These four Ps— product, price, place (distribution), and promotion—are elements of the
marketing mix.
Evolution of IMC
Special Sales
Point of events promotion
purchase Interactive
marketing
Media
Advertising Packaging
Direct
response
Public
relations Direct
marketing Publicity
 Integrated Marketing Communications
Integrated Marketing Communications is a
simple concept.

At its most basic level, IMC means

integrating all the promotional tools, so
that they work together in harmony. To
achieve maximum communication impact.
Integrated Marketing Communications
Many companies have adopted this broader perspective of IMC.

They see it as a way to coordinate and manage their marketing communication

programs to ensure that they send consistent message, unified image about the
company and/or its brands to marketplace.

IMC called for Centralized Messaging function so that everything a company

says and does communicates a common theme and positioning.
Integrated Marketing Communications
Montblanc uses a variety of marketing
Mix elements including:

Price, product design, brand name,

and distribution strategy to create a
high quality, upscale image for its
products.

Incorporating a well-known celebrity

into this ad help reinforce
Montblanc’s image.
Why Marketers Are Adopting The IMC Approach?
A fundamental reason Why Marketers Are Adopting The IMC Approach,
simply because they understand the VALUE of IMC.

ØBy coordinating their marketing communication efforts, companies can avoid

duplication.

ØTake advantage of synergy among promotional tools.

Ø Develop more efficient and effective marketing communication programs.

THE PROMOTIONAL MIX:
THE 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.

promotional mix :The basic tools used to accomplish an organizations communication

objectives.
1-Advertising
•Advertising is any paid form of ONE WAY NON-
PERSONAL COMMUNICATION about an
organization, product, service, or idea by an
identified sponsor.

•The Paid aspect of this definition reflects the fact

that the space or time for an advertising message
generally must be bought.
 Advertising

•The Non-personal component means that advertising involves mass media

(TV / Radio / Magazine / Newspaper ) that can transmit a message to large
groups of individuals, often at the same time.

•The Non-personal nature means there is NO opportunity for immediate

feedback from message recipient.

•It is also a very important promotional tool particularly for companies whose
product and service are targeted MASS CONSUMER MARKET. Ex: Drugs.
 Why Advertising Is An Important Part Of
Many Marketers' IMC Programs?
1. Advertising is still the most cost-effective way to reach large audiences.
2. Advertising is the best-known and most widely discussed form of promotion, probably
because of its pervasiveness. Popular TV shows can reach as many as 25 to 30 million
viewers each week.
3. Advertising is a valuable tool for building brand equity by influencing customer
perceptions.
4. Advertising is powerful way to provide customer with information.
5. Advertising creates favorable, unique image and association for the brand, which can be
difficult to differentiate on the basis of functional attributes .
Classification of Advertising
Advertising to Consumer Markets:
•National Advertising
•Retail/Local Advertising
•Primary-versus Selective Demand Advertising

Advertising to business and professional Markets:

•Business To Business Advertising
•Professional Advertising
•Trade Advertising
Advertising to Consumer Markets:

National Advertising:
Advertising done by
large companies on a
nationwide basis or in
most regions of the
country.
Retail/Local
Advertising:
done to encourage
consumers to shop at
a specific store, use a
local service, or
patronize a particular
establishment.
Primary Demand
Advertising: designed
to stimulate demand
for the general
product class or entire
industry
Selective Demand
Advertising: focuses
on creating demand
for a specific
company’s brands.
 Advertising To Business And Professional Markets

Business To Business
Advertising: targeted
at individuals who
buy or influence the
purchase of industrial
goods or services for
their companies.
Professional Advertising:
targeted to professionals
such as doctors, lawyers,
dentists, engineers, or
professors.
To encourage them to
use a company’s product
in their business
operations.
 2-Direct Marketing
•Traditionally this has not been considered as an element
of promotional mix.

•The development of IT and Internet have made Direct

Marketing a very powerful tool.

•Direct marketing is one of the tool of the IMC in which the

organization communicate directly with target consumer
to generate ( Response and/ or Transaction)
 Direct Marketing
•Direct Marketing is much more than direct mail and mail order catalog.

•It involves a verity of activities including

• Database management • Direct-response ads through direct mail
• Direct selling • Various broadcast and print media.
• Telemarketing

•Direct-response advertising, whereby a product is promoted through an ad that

encourages the consumer to purchase directly from the manufacturer.
 Direct Marketing
•Direct response advertising is primarily interested
in generating conversions.
• The primary purpose is to elicit a specific,
immediate action.

•This action could be to download a resource, sign

up for an account or free trial, schedule a demo, or
even make a purchase.
 Direct Marketing
Changing lifestyles, particularly the increase in two-income households. This has
meant more discretionary income but less time for in-store shopping.

The availability of credit cards and mobile phone has also facilitated the purchase of
products from direct-response ads.

The convenience of shopping through catalogs or on a company’s website and placing

orders by mail, by phone, or online has led the tremendous growth of direct
marketing.
 Direct Marketing
One of the major trends in marketing that has emerged over the past decade is that of
omnichannel retailing whereby companies sell their products through multiple
distribution channels including retail stores, online, catalogs, and mobile apps.

An omnichannel strategy involves using a combination of physical or offline channels as

well as digital or online channels to influence a customer’s shopping experience.

Ex: Under Armour , ZARA, Abu Auf.

Direct Marketing
Marketers use this information to target
Many companies now have Extensive their current and prospective customers
Databases containing customer through a variety of direct-marketing.

•Names; Mail and E-mail addresses;

These databases are an integral part of
•Geographic, Demographic, and companies’ customer relationship
Psychographic profiles; management (CRM) programs, which
•Purchase patterns, involve the systematic tracking of
•Media preferences, customer preferences , customer
behaviors and modifying a product or
•Credit, and other financial information; service to meet individual needs and
•And other relevant customer wants.
characteristics.
 3-Interactive/Internet Marketing
Interactive media allow for a back-and-forth flow of information, whereby users can participate
in and modify the content of the information they receive.
•The new media allow users to perform a variety of functions such as:
• Receive , alter, change and share information and images.
• Make inquiries.
• Respond to questions.
• Make purchases.
ØThe current world population is 7.7 billion as of September 2019.
Ø The number of internet users in June 2019 are 4.39 billion
Increase (9 percent)
ØThe number of social media users in 2019 is 3.48 billion. since this time last year

source: https://www.internetworldstats.com/stats.htm
 3-Interactive/Internet Marketing
•Advertisers usage of the internet

•Social media refers to forms of electronic

communication, through which users Create Online
Communities to create, share and exchange content
(such as Insights, Experiences, Information,
Perspectives and Even Media)
 3-Interactive/Internet Marketing
Mobile marketing is multi-channel online marketing technique

Focused at reaching a specific audience on their smart phone, tablets, or any other related
devices through websites, E mail, SMS and MMS, social media or mobile applications.

•Message to specific location

•Mobile shopping through Apps
•Scan barcode and compare prices App

Mobile marketing allow consumers to make shopping more economical, efficient, productive & fun.
 3-Interactive/Internet Marketing
For example, Starbucks has developed apps
for iPhones and Android mobile devices that
allow customers to
ØFind Starbucks locations,
ØLook up nutritional information,
ØOrder ahead and pick up drinks to avoid
waiting in line, and
ØManage their Starbucks rewards accounts.
Mobile Shopping Through Apps
 4-Sales Promotion
•Sales promotion are those marketing activities that provide extra value or incentives to

Ø The Sales Force

ØThe Distributors
ØThe Consumer
to stimulate immediate sales.

•Sales promotion is generally broken into two major categories:

•Consumer-oriented activities
•Trade-oriented activities
 Sales Promotion
Consumer-oriented activities In general, some of the commonly used
(also called Pull Strategy) consumer-oriented promotion tools are
as follows:
•Directed to consumers, customers and
potential customers. 1. 1. Free samples
•Aimed at increasing the sales to existing 2. 2. Coupons
consumers, and to attract new customers 3. 3. Discounts
to the firms.
•It encourage consumers to make an 4. 4. Premium offers
immediate purchase and thus can 5. 5. Installment sales
stimulate short-term sales.
 Sales Promotion
Trade-oriented activities
Some of the important trade-
(also known as Push Strategy) oriented promotion tools are as
follows:
•Directed at the dealer, wholesalers,
distributors, and retailers. 1) 1.Cash bonuses
2) 2.Stock return
•Aim to motivate them to the sell more of
the company’s brand than other brands by 3) 3.Credit terms
push the brand to the consumers and giving 4) 4.Dealer conferences
it priority over other competitor brands.
5) 5.Dealer trophies
•To encourage the trade to stock and 6) 6.Push incentives
promote a company’s products.
7)
 5-Publicity/ Public Relations
Publicity is Non-paid, non-personal communication to generate visibility or awareness for
the organization, products, services or image not directly done under an identified
sponsorship through media
Publicity usually comes in the form of a news story, editorial, or announcement about an
organization and/or its products and services.

•Like advertising, publicity involves non-personal communication to a mass audience.

•Unlike advertising, publicity is not directly paid for by the company.

•An advantage of publicity over other forms of promotion is its credibility.

 Public Relations
Public Relation is a strategic communication
process that builds mutually beneficial
relationships between organizations and their
publics.

Public relations can also be defined as the practice

of managing communication between an
organization and its publics.
 Public Relations
Public Relation generally has a broader objective which
is establish and maintain positive image of the company
among its various public.

•Numbers of important audience include

Investors , Employees, Supplier
Community, Government, Consumers

Ex: “BAHIA”
PR tools (Fund raising/ community activities / Sponsor special
events) To enhance organization images.

Companies also use advertising as a public relations tool.

 6-Personal selling
Personal selling, is 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.

Using personal selling insures the following:

• Communication flexibility.
• Tailoring the message to the customer's specific needs or situation.
• Immediate and precise feedback.
• Targeting efforts specific markets and customer types that are the best
prospects for the company's product or service.
Integrated Marketing Communications
IMC Used To:
ØInform
ØPersuade
ØRemind People About An Organization Or Its Product
ØImprove brand Image
ØAttract Potential Customers

Its used to influence customer behavior in favor of the product.

Integrated marketing communications management
IMC Management: involves the process of planning, executing, evaluating, and
controlling the use of the various promotional-mix elements to effectively
communicate with target audiences.

• The marketer must consider which promotional tools to use

• How to integrate them to achieve marketing and communication objectives.
• How to distribute the total marketing communications budget across the various
promotional-mix elements.
• What percentage of the budget should be allocated to advertising, sales promotion, the
Internet, sponsorships, and personal selling?
George E. Belch & Michael A. Belch Brakes
The IMC Planning Process Into:
1. Review of the Marketing Plan.
2. Promotional Program Situational Analysis.
◦ (Internal Analysis/ External Analysis)

3. Analysis of the Communication Process.

4. Budget Determination.
5. Developing the IMC Program.
6. Implement marketing communication strategies.
7. Monitoring , Evaluation, and control.
The IMC Planning Process
1.Review of Marketing Plan
1. Detailed situational analysis and environmental factors.
2. Marketing objectives.
3. Marketing strategy ( target market decisions, the 4Ps).
4. Program implementation.
5. Monitoring and evaluating performance.
The IMC Planning Process
2.Promotional Program Situation Analysis
Internal analysis
Promotional
Program
Situation Analysis
External analysis

•It focuses on the factors that influence or are relevant to the development of a
promotional strategy.
 Promotional Program Situation Analysis
A)The internal analysis
A)The internal analysis (FIRM) A)The internal analysis ( PRODUCT)
•Firm’s ability to implement promotional •The relative strengths and weaknesses
program. of the product or service.
•Review of previous program. •Advantages and disadvantages.
•Assessing strength, weaknesses of •Unique selling points or benefits
performing the promotional functions in- •Its packaging, price, and design
house as opposed to hiring an external
agency (or agencies).
•Assessing the strengths and weaknesses of
the firm or the brand from an image
perspective.
 Promotional Program Situation Analysis
B)The external analysis
•An important part of the external analysis
is a detailed consideration of:
B)The external analysis focuses on factors
such as: • Customers' characteristics

•Consumer behavior analysis. • Buying patterns.

•Market segmentation and target marketing. • Their decision processes.

•Positioning strategies and competitors. • Factors influencing their purchase decisions.
•Competitive analysis. • Consumers' perceptions and attitudes.
•Environmental analysis.
• Lifestyles.

• Criteria for making purchase decisions.

 The IMC Planning Process
3.Analysis of the communication process
In this stage we examines
How The Company Can Effectively Communicate With Consumer In Its Target Market

• Analyze the process consumer will go through in RESPONDING to marketing

communications.

• Analyze receiver’s level of involvement .

• Decisions regarding the source, the message, the channel.

• Establish communications goals and objectives

 The IMC Planning Process
3.Analysis of the communication process
Establishing communication goals and objectives is an essential step.
Communication objectives refer to what the firm seeks to accomplish with its promotional
program

•Communication objectives includes:

•Creating awareness or knowledge about a product and its attributes or benefits.
•Creating an image.
•Developing favorable attitudes, preferences.
•Develop purchase intentions.
 Some Important Objectives Of IMC

• Create awareness (Advertising, Publicity , Personal Selling)

• Create brand image
• Create brand loyalty (Sales Promotion, Personal Selling,
• Educate the customer
Efficient Direct Marketing)
The IMC Planning Process
4.Budget Determination
Two basic Questions to be asked:
What will the promotional program cost?
ØSet temporary marketing communication budgets
How will the money be allocated?
ØAllocate temporary budget

wIDEALY / IN REALITY
wAt this stage, the budget is often temporary.
wIt may not be finalized until specific promotional-mix strategies are developed.
 The IMC Planning Process
5.Developing The IMC Program
•Two important aspects of the advertising program are:
• Develop of Message ( creative strategy)
Ø Basic appeal and message want to be convey.

• Develop of Media strategy

ØDetermine the communication channels will be used to deliver the advertising
message to target audience

This task requires careful evaluation of the media options’ advantages and
limitations, costs, and ability to deliver the message effectively to the target
market.
The IMC Planning Process
7.Monitoring, Evaluating and Controlling
wIt is important to:
wEvaluate promotional program
results/effectiveness.
wTake measures to control and adjust
promotional strategies.