Chapter One

Development of Integrated
Marcom
 Introduction
Marketing Communication is…..

‘ are messages and related media used to communicate

with a market. Activities involved include advertising,
branding, direct marketing, graphic designing, marketing,
packaging, promotion, publicity, public relations, sales,
sales promotion and online marketing.’
Answer.com, 2007
Integrated Marketing Communication (IMC)….

‘presents aspiration for companies to develop and

optimal combination of communication elements in
order to maximize effects and minimize losses
(defined as investment which did not result in goal
achievement).’
Answer.com, 2007
 Evolution of Marketing
Communications
Communication starts with..

‘Tukang Canang’
Printed media
Radio
TV
Internet
 Reasons to Communicate..
To Inform

Marketers communicate to inform about a

new product in the market or new
improvements made to the present
product, change of location / address, new
ventures and etc.
 To Persuade

Marketer wants the customer to think that

their brand is the best or give the
customer reasons why they should
consider their specific brand instead of
competitors.
 To induce action

Marketer wants the customer to get into

action such as trying the products that is
being promoted
Factors that brought about to the growth of
marketing communications
1. The impact of globalization
2. Change in consumer’s consumption
pattern.
3. Increased number in working women
4. Decrease in government intervention
Marketing and Marketing
Communication
Name
Product Packaging
Ingredients

Price
Price
Terms of Trade

Retailer
Place Agents
Direct Marketing

Advertising
Promotion Sales Promotion
Personal Selling
 The Marketing Communication
Tools
• Advertising
Any paid from of non-personal communication
used by an identified sponsor. Advertising can
either be mass communication; using TV,
newspaper, radio, direct communication

• Personal Selling
This is a face to face communications where the
seller attempts to persuade the customer and
the prospects for the purpose of making sales.
• Sales Promotion
All marketing activities that attempt to stimulate
quick buyer actions. It is mostly short term
incentives offered to target market to encourage
responses.

• Public relations
The component in marketing communication that
fosters goodwill between the marketer and the
public.
• Point-of-purchase
Consists of all communications efforts carried
out at the place where the buyer comes into
contact with the product or actually buy the
product. E.g. in-store product display, window
displays and exhibitions.

• Sponsorship marketing
Supporting of happenings or events with the
hope of getting good rapport for the marketer.
 Marketing Communications at the Brand
Level
A well-known and
This is the key respected brand is
means for an invaluable asset
differentiating one
company’s offering
from another’s

A successful brand can

create barriers to entry for
competitors

Brand
Integrated Marketing Communications (IMC)

The philosophy and practice of

carefully coordinating a brand’s
sundry marketing
communication elements.
 The Meaning of Synergy
• The payoff from IMC is that brand
managers achieve

– The integration of multiple communication

tools and media yield more positive
communication results than the tools used
individually
Five Key Features of IMC

1. Start with the customer or

prospect.
2. Use any form of relevant contact.
3. Achieve synergy (speak with a
single voice).
4. Build relationships.
5. Affect behavior.
 Changes in
Marketing Communication Practices

• Reduced dependence on mass media

advertising.
• Increased reliance on highly targeted
communication methods.
• Heightened demands on suppliers.
• Increased efforts to assess communications’
return on investment.
 Obstacles to Implementing IMC

• Few providers have the skills required

to execute.
• Mass media campaigns easier than
Direct-to-Customer.
• The real challenge is to make sure that
tools are consistently executed.
 Definition of Brand Equity

Brand equity can be considered

either from the perspective of the
organization that owns it or from the
vantage point of the customer.
 As Brand Equity Increases…

1. A higher market share is achieved

2. Brand loyalty increases
3. Premium prices can be charged
4. The brand earns a revenue premium
Two forms of Brand Knowledge
Brand Awareness

An issue of whether a brand name comes to

mind when consumers think about a
particular product category and the ease
with which the name is evoked.
Two Forms of Brand Knowledge

Brand Image

The types of associations that come to

the consumer’s mind when
contemplating a particular brand.
 Dimensions of Brand
Personalities

• Sincerity - brand is seen as down to earth,

wholesome and cheerful
• Excitement - brand is seen as daring, spirited,
imaginative, and up-to-date
• Competence - brand is seen as reliable, intelligent,
and successful
• Sophistication - brand is seen as upper class and
charming
• Ruggedness - brand is seen as tough and outdoorsy
3 Ways Brand Equity Is Enhanced

1. Speak-for-itself
2. Message-driven
3. Leveraging
 Co-branding and Ingredient
Branding

• Co-branding
A partnership between two brands

• Ingredient branding
Inclusion of one brand within the other
 Characteristics of World Class
Brands

• Delivers benefits consumers want

• Stays relevant
• Price equals value
• Good positioning
• Consistency
 Characteristics of World Class
Brands

• Fits into brand portfolio

• Brand helps build brand equity
• Brand’s managers understand what the
brand means to consumers
• Support over long run
• Monitoring of the sources of brand
equity