Lecture Advertising and promotion (2/e) – Chapter 2: Integrated marketing communication

Chapter 2
Integrated marketing
communication: how marketing
communication evolved

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Learning objectives
1. To review the concept of marketing, examining how
marketing communications has changed.
2. To introduce and define the concept of integrated
marketing communication (IMC).
3. To examine reasons for the increasing importance
of IMC.
4. To explore the concept of integration, its different
types and the necessity of integrating the whole
organisation, not just the marketing communication
tools.
5. To examine how IMC has been implemented and
the typical barriers to implementation.
Copyright 2012 McGraw-Hill Australia Pty Ltd
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Relationships

and value

Marketing
mix

Advertising

Marketing
evolution

Direct
marketing
Interactive
Sales
promotion

Tools

IMC

Implementation

Evolution

IMC as a
discipline
Integration

Definition &
direction

Importance
of IMC

PR
Sponsorship

Barriers
Types

Personal
selling

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Integrating the
organisation

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Air New Zealand Nothing to hide
campaign

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Air New Zealand Nothing to hide
campaign (cont.)
Campaign objectives were to :
 hold Air New Zealand’s market share
 leverage the campaign for retail promotional
sales
 convey that Air NZ airfare was all-inclusive—
unlike the competition
 build on the airline’s leadership and innovation
credentials
 lift Air NZ brand profile in offshore markets,
primarily through unpaid media.

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Relationships
and value

Marketing
mix

Advertising

Marketing
evolution

Direct
marketing
Interactive
Sales
promotion

Tools

IMC

Implementation

Evolution

IMC as a
discipline
Integration

Definition &
direction
Importance
of IMC

PR
Sponsorship

Barriers
Types

Personal

selling

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Integrating the
organisation

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Marketing: where IMC begins
Traditional
Traditional definition
definition
Marketing
Marketing is
is the
the process
process of
of conception,
conception, pricing,
pricing,
promotion
promotion and
and distribution
distribution of
of goods,
goods, services
services and

and
ideas.
ideas.

Revised
Revised definition
definition of
of marketing
marketing
Marketing
Marketing is
is the
the activity,
activity, set
set of
of institutions,
institutions, and
and
processes
processes for
for creating,
creating, communicating,
communicating, delivering
delivering
and
and exchanging
exchanging offerings
offerings that
that have
have value

value for
for
customers,
customers, clients
clients and
and society
society at
at large.
large.

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Marketing: where IMC begins
(cont.)
Marketing
Marketing is
is the
the activity,
activity,
set
set of
of institutions,
institutions, and
and
processes
processes for

for creating,
creating,
communicating,
communicating,
delivering
delivering and
and
exchanging
exchanging offerings
offerings that
that
have
have value
value for
for
customers,
customers, clients
clients and
and
society
society at
at large.
large.
AMA,
AMA, 2007
2007

Value
Value co-creation
co-creation

Social
Social impact 
impact 

Exchange
Exchange
Relationships
Relationships

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Relationships and value

Value
Value

=

Benefits 
Benefits 

Minus

Costs
Costs

Value refers to the customer’s perception of all the benefits
of a product or service weighed against the costs of
acquiring and consuming it.

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Relationship marketing
Relationship marketing involves creating,
maintaining and enhancing long term
relationships with consumers, as well as other
stakeholders for mutual benefit.

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Factors driving shift to relationship
marketing
Demanding
Demanding
customers
customers

Desire

Desire for
for
superior
superior value
value

Relationship
Relationship
marketing
marketing

Advances
Advances in
in IT
IT

Flexible
Flexible
manufacturing
manufacturing
processes
processes

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Value co-creation

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Value co-creation (cont.)

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The marketing mix
Product
Product

Price
Price
Customer
Customer
needs
needs

Place
Place

(distribution)

(distribution)

Promotion
Promotion

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Expanded marketing mix
Product
Product
People
People

Price
Price
Customer
Customer
needs
needs

Place
Place

(distribution)
(distribution)

Processes
Processes
Promotion
Promotion

Physical
Physical
evidence
evidence

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IMC and the marketing mix

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Relationships
and value

Marketing
mix

Advertising

Marketing
evolution

Direct
marketing
Interactive
Sales
promotion

Tools

IMC

Implementation

Evolution

IMC as a
discipline
Integration

Definition &
direction
Importance
of IMC

PR
Sponsorship

Barriers
Types

Personal
selling

Copyright 2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

Integrating the
organisation

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Evolution of IMC
 Companies relied primarily on advertising
agencies for guidance.
 This led to the dominance of advertising
with other marketing communication
elements added on as an auxiliary or
afterthought.
 Many marketers built barriers around
promotional functions.
 Recognising the need to integrate all
elements of the communication mix,
marketers developed the concept of IMC
to present a consistent image.

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Fragmented approach to
marketing communication
Point of
purchase

Special
events
Public
relations

Publicity

Media
Advertising

Direct
marketing

Sales
promotion

Packaging
Direct
response

Interactive
marketing

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Coordinated IMC approach
Sales
promotio
n

Packaging

Media
advertising

Point of
purchase

Publicit
y
Interactive
marketing

Direct
marketing

Direct
response

Public
relations

Special
events

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Consumer evolution
Many market-related factors have contributed to the
rise of IMC, including:
 demographics

 lifestyles
 media usage
 purchasing habits

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Axe Wake up campaign

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Agency evolution
Many industry factors contributed to the rise of
IMC, including:
 increasing professionalism of sales promotion,
direct marketing and PR
 competition between advertising agencies and
specialist communications service providers
 clients expectations that agencies offer a broader
range of services
 marketers redefining their activities in a more
strategic and coordinated manner
 consumer’s perceptions of brands as a synthesis
of the bundle of messages received or contact points
with a brand.

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IMC defined

A concept of marketing communications planning that recognises the 
A concept of marketing communications planning that recognises the 
added value of a comprehensive plan that evaluates the strategic roles of 
added value of a comprehensive plan that evaluates the strategic roles of 
a variety of communication
a variety of communication
disciplines—for example, general advertising, direct response, sales 
disciplines—for example, general advertising, direct response, sales 
promotion, and public relations—and combines these disciplines to 
promotion, and public relations—and combines these disciplines to 
provide clarity, consistency, and maximum communications impact.
provide clarity, consistency, and maximum communications impact.
American
American Association
Association of
of Advertising
Advertising Agencies
Agencies (4As)
(4As)

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IMC defined
Integrated marketing communication is a strategic business process used 
Integrated marketing communication is a strategic business process used 
to plan, develop, execute and evaluate coordinated, measurable, 

to plan, develop, execute and evaluate coordinated, measurable, 
persuasive brand communications programs over time with consumers, 
persuasive brand communications programs over time with consumers, 
customers, prospects, employees, associates and other targeted relevant 
customers, prospects, employees, associates and other targeted relevant 
external and internal audiences. The goal is to generate both short­term 
external and internal audiences. The goal is to generate both short­term 
financial returns and build long­term brand and shareholder value.
financial returns and build long­term brand and shareholder value.
Don
Don Schultz,
Schultz, North
North Western
Western University
University

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