Marketing Communications

(Marcom)

Tony Wijaya (FE UNY)

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 Marketing Communications (Marcom)

Integrated Marketing
Communication (IMC)
Programs

Business-to-Consumer Business-to-Business Integrated Marcom

(B2C) (B2B) B2C&B

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Table 1.1 The Tools of Marketing Communications

1. Media Advertising 5. Trade- and Consumer- 6. Event Marketing and

• TV Oriented Promotions Sponsorships
• Radio • Trade deals and buying • Sponsorship of sporting
• Magazines allowances events
• Newspapers • Display and advertising • Sponsorship of arts, fairs,
allowances and festivals
2. Direct Response and
Interactive Advertising • Trade shows • Sponsorship of causes
• Direct mail • Cooperative advertising 7. Marketing-Oriented Public
• Samples Relations and Publicity
• Telephone solicitation
• Coupons 8. Personal Selling
• Online advertising
3. Place Advertising • Premiums
• Billboards and bulletins • Refunds/rebates
• Posters • Contests/sweepstakes
• Transit ads • Promotional games
• Cinema ads • Bonus packs
4. Store Signage and Point-of- • Price-off deals
Purchase Advertising
• External store signs
• In-store shelf signs
• Shopping cart ads
• In-store radio and TV

Source: Adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro Perspectives
on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851.
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The Integration of Marketing
Communications
• Why Not Integrated?
 Tradition of separation communication tools
 Influence of specialized outside suppliers
 Managerial parochialism
 Fear of budget cutbacks
 Loss of power and authority
 Resistance of outside suppliers to broadening their
functions
 Skeptics who consider IMC to be a fad

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The Integration of Marketing
Communications (cont’d)
• IMC and Synergy
 Using multiple communication tools in conjunction
with one another can produce greater results
(synergistic effects) than tools used individually and
in an uncoordinated fashion.

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And Now a Definition of IMC
• Integrated Marketing Communications (IMC)
• Is a communications process for planning, creation, integration,
and implementation of diverse forms of marcom delivered to a
brand’s targeted customers and prospects
• Has as its goal influencing or affecting behavior of targeted
audience
• Considers all touch points a customer/ prospect has with the brand
as potential delivery channels for messages
• Requires that all of a brand’s communication media deliver a
consistent message
• Has customer/prospect as its starting point for determining types of
messages and media to inform, persuade, and induce action

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Key IMC Feature # 1
• The Consumer or Business Customer Must
Represent the Starting Point for All Marketing
Communications Activities
• Takeaway:
 Consumers in Control
 Outside-in approach: learn the media preferences and
lifestyles of customers/prospects to know the best contexts to
reach them with brand messages.
 Reduced Dependence on Mass Media
 Consumers are increasingly in control of their media choices
for acquiring information about brands.

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Selecting the Appropriate Marcom Tools

Media-Neutral
Approach

Identify Marcom
Program Goals

Determine Best
Way to Allocate
Marketing Budget

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Obstacles to Implementing IMC
• Integration requires tight coordination among all
elements of a marcom program.
 Few providers of marketing communication services
have the diversity of skills required to execute an IMC
program.
 Direct-to-customer advertising is more difficult than a
mass media campaign.
 The greatest challenge is making sure that all
marcom tools are consistently executed.

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Marketing Communications
• Marketing Communications’ Objective
 To enhance brand equity by moving customers to
favorable action toward the brand—trying it, repeat
purchasing it, and becoming loyal toward the brand.
• Brand Equity
 The degree to which consumers favorably perceive
the brand’s features and benefits as compared to
competitive brands and how strongly these views are
held in memory

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Figure 1.1 Making Brand-Level Marcom Decisions and Achieving
Desired Outcomes

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Fundamental Marcom Decisions

Fundamental
Marcom Program
Decisions

Setting
Targeting Positioning Budgeting
Objectives

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Fundamental Marcom Decisions (cont’d)

Top-down
(TD)

Top-down/Bottom-up
(TD/BU)
Budgeting
Procedures
Bottom-up/Top-down
(BU/TD)

Bottom-up
(BU)

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 Fundamental Marcom Decisions:
Commit-to-Memory Mantra
All marketing
1. Directed to a specific
communications target market
should be:

2. Clearly positioned

3. Created to achieve
a specific objective

4. Undertaken within
budget constraints

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Marcom Implementation Decisions

Marcom Program
Implementation
Decisions

Mixing Creating Selecting Establishing

Elements Messages Media Momentum

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Marcom Outcomes

Marcom
Outcomes

Enhancing Affecting
Brand Equity Behavior

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Marcom Program Evaluation

Marcom Program
Implementation

Measuring Results Taking Corrective

for Accountability Action
Behavioral Greater Investment
Impact Providing Different
Communication Feedback Communication
Outcomes Combinations
Revised Strategy
Revised Allocations

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Basic IMC Issues

Marketing
Communicators

How to
How to affect How to justify
How to enhance demonstrate
customer marcom
brand equity financial
behavior investments
accountability

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 Basic IMC Issues
• What can marketing communicators do to
enhance the equity of their brands?
• How can marketing communicators affect the
behavior of their present and prospective
customers?
• How can marketing communicators justify their
investments in advertising, sales promotions,
and other marcom elements?
• How can marketing communications
demonstrate financial accountability?

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–19

Brand Associations

Brand image
associations that
build brand equity

Positive Perceived Favorable

Attributes Benefits Attitude

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 Dimensions of Brand Personalities

Sincerity

Excitement Competence

Sophistication Ruggedness

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 Ways of Enhancing Brand Equity

Enhancing Brand
Equity

Speak-for-Itself Message-Driven Leveraging

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Types of Branding for Leveraging
• Co-Branding
 A partnership between two brands
• Ingredient Branding
 Inclusion of one brand within the other

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What Benefits Result from Enhancing
Brand Equity?
• Increased consumer loyalty
• Long-term growth and profitability for the brand
• Maintain brand differentiation from competitive
offerings
• Insulate brand from price competition

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Measuring World-Class Brands

Evaluating
World-Class Brands

Quality Salience Equity

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Characteristics of a World-Class Brand
• Delivers benefits • Brand helps build brand
consumers want equity
• Stays relevant • Brand’s managers
understand what the
• Price equals value
brand means to
• Good positioning consumers
• Consistency • Support over long run
• Fits into brand portfolio • Monitoring of the sources
of brand equity

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Measuring Marketing Investment
Performance
• Return on Marketing Investment (ROMI)
 Measures the effect of marcom, or of its specific
elements such as advertising, in terms of whether it
generates a reasonable revenue return on the
marcom investment
• Why Measure Marcom Effectiveness?
 Demands for greater accountability on the marketing
function
 To become better at marcom activities

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Measuring Marketing Investment
Performance
• Difficulties in Measuring Marcom Effectiveness
 Choosing an appropriate metric
 Gaining agreement on measures
 Collecting accurate data for marcom assessment
 Determining effects of specific marcom elements

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Difficulties in Measuring Marcom
Effectiveness: Choosing a Metric

What to Measure?

Improvement
Change in Increased
in attitudes Larger sales
brand purchase
toward volume
awareness intentions
the brand

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Difficulties in Measuring Marcom
Effectiveness: Gaining Agreement
• Finance Departments’ • Marketing Departments’
Measures of Success: Measures of Success:
 Discounted cash flows  Measures of brand
 Net present values of awareness, image, and
investment decisions equity

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Difficulties in Measuring Marcom
Effectiveness: Collecting Accurate Data and
Calibrating Special Effects

• What exact sales figures should be used to

calculate sales?
• How much relative effect does each program
element have on sales volume compared to the
effect of other elements?

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