Integrated Marketing Communication

The MAANZ MXpress Program

eMarketing Communication

Copyright January 2013.
This Power Point program and the associated documents remain the intellectual property and the
copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These
notes may be used only for personal study associated with in the above referenced course and not in any
education or training program. Persons and/or corporations wishing to use these notes for any other purpose
should contact MAANZ for written permission.


• The primary goal of this topic is to understand
the Internet as a tool for efficiently and
effectively exchanging marketing communication
messages between marketers and their
audiences. You will learn how each marketing
communication tool can carry messages over the
Internet and how marketers buy and use
promotional space on the Net as a
communication medium.

MXpress Course Copyright MAANZ 2

• Internet marketing is a powerful way to start and
strengthen relationships with customers. However,
online marketers must be increasingly clever to design
and deliver brand messages that capture and hold
audience attention —because on the Internet, users
are in control. They can delete unwanted incoming
email and impatiently click away when Web sites don't
quickly deliver desired information. Also, the Internet
allows consumers to widely disseminate their own
attitudes and brand experiences via email and Web
postings, shifting the balance of control over brand
images from companies to consumers.


• Marketing communication (MarCom) tools
that use technology to provide convenience,
in conjunction with value ‐ added product
experiences, are important in capturing
attention and winning long ‐ term customer
relationships. And as a bonus, technology
lowers the costs


Integrated Marketing Communication
(IMC)
• Integrated marketing communication (IMC) is
a cross ‐ functional process for planning,
executing, and monitoring brand
communications designed to profitably
acquire, retain, and grow customers. IMC is
cross ‐ functional because every contact that a
customer has with a firm or its agents helps to
form brand images.


(IMC)
• Every contact with an employee, a Web site, a
magazine ad, a catalogue, the physical store facilities,
and so forth, helps the customer form an image of the
firm. In addition, the product experience, its pricing
level, and its distribution channels enhance the firm's
marketing communication in a variety of online and
offline media to present a strong brand image. The
best advertising can be undermined if these online and
offline contact experiences do not communicate in a
unified way to create and support positive brand
relationships with customers.


(IMC)
• Profitable customer relationships are key to a
firm's existence. Successful firms recognise that
not all customers are equally valuable — some,
such as frequent flyers or buyers, are more
important than others. Using technology, firms
can monitor profits customer by customer and,
based on this analysis, pay more attention to high
‐ value customers. Databases and the analysis
techniques allow firms to differentiate customers
by value and track the results of company
MarCom campaigns.


IMC strategy
• IMC strategy begins with a thorough
understanding of the target stakeholders, the
brand, its competition, and many other
internal and external factors. Then marketers
select specific MarCom tools to achieve their
communication objectives. After
implementation, they measure execution
effectiveness, make needed adjustments, and
evaluate the results.

IMC strategy
• IMC should:

• 1) be more strategic than executional (i.e.,
more than just about 'one voice, one look'),

• 2) be about more than just advertising and
sales promotion messages,


IMC strategy
• 3) include two ‐ way as well as one ‐ way
communication, and

• 4) be results driven.

• Although strategic IMC entails a coordinated
marketing mix and cross ‐ functional
participation, this section focuses on the
promotion mix elements (also called marketing
communication tools), the core of a firm's
marketing communication plan.

Marketing Communication Tools
• MarCom consists of both planned and unplanned messages
between firms and customers, as well as those among
customers. Companies use planned messages when trying
to inform or persuade their target stakeholders. Unplanned
messages include things such as word ‐ of ‐ mouth among
consumers and publicity in media. However, because
consumers have more control over communication on the
Internet, it is nearly impossible for companies to directly
manage unplanned messages. Thus, firms should
concentrate on creating positive product experiences so
that unplanned messages will be positive. In fact, some
firms have experienced tremendous growth almost entirely
based on unplanned email (e.g., Hotmail).


Marketing Communication Tools
• Using innovative technologies, e ‐ marketers can
enhance the effectiveness and efficiency of
traditional MarCom in many interesting ways.
Important technologies include text and
multimedia messages carried via Web pages and
email ; databases to store information; new Web
development, browsing, and email software to
facilitate Internet communication; and a plethora
of digital ‐ receiving devices from PCs to cell
phones for viewing multimedia messages.

Marketing Communication Media
• The Internet is just one of many media used to carry
marketing communication messages. TV, radio,
newspapers, magazines, outdoor (e.g., kiosks, bus
cards, and billboards), postal mail and the various
channels of the Internet are also channels of
communication.

• Because the Internet is often compared with traditional
media, marketers need to understand the major
media's characteristics as well as the Internet's media
characteristics so they can make appropriate choices
when buying promotional space.


Media Characteristics
• Marketing communication can be sent to an individual
(e.g., postal mail) or the masses (e.g., newspapers) and
can range from broadcast (e.g., television) to pointcast
(e.g., email ). Electronic media such as network
television, radio, cable television, the Internet,
facsimile (fax) transmission, and cellular phones can be
viewed as broadcast, narrowcast, and pointcast on the
basis of their capability to reach mass audiences,
smaller audiences, or even individuals with different
messages. Other traditional media competing for
marketing communication dollars include print and
postal mail.


Media Characteristics
• Differences among these and other media
allow marketers to select the best
combination to achieve their goals . For
instance, e ‐ marketers might select email if
they want to customise an offer to one
individual and request an interactive response
via clicking on a hyperlink.


Media
• Broadcast media (TV and radio) have a number of
strengths and weaknesses, TV penetration
reaches 98 percent of households, with one ‐
third owning three or more sets. TV remains the
only medium for advertisers wanting to reach
large numbers of consumers at one time, but it is
costly

• Radio's penetration is also ubiquitous. Almost
every household and car has a radio. Radio
advertising time is inexpensive


Narrowcast Medium
• Cable TV (CATV) is a narrowcast medium. It is
called narrowcast because cable channels contain
focused electronic content appealing to special ‐
interest markets.

• For example, cable channels such as CNN or ESPN
are networks in that they reach extremely large
audiences worldwide, but they still have
specialised programming. CATV advertising tends
to be less expensive than broadcast advertising,
although some exceptions apply.


Pointcast Media
• The folks at pointcast.com, who brought individualised
news service to every computer desktop (and do not
exist today), coined the term pointcast. Pointcast
media are electronic media with the capability of
transmitting to an audience of just one person, such as
the Internet and the cell phone. Pointcast media can
transmit either personalised or standardised messages
in bulk to the entire audience of those who have the
equipment to receive them, and these individuals can
transmit a single message back to the sender using the
same equipment. Receiving devices include pagers, cell
phones, PDAs, computers, TV, fax machines, and more.


Media
• From a media buyer's perspective, the strengths of
the Internet include selective targeting with email
and Web content by using databases, ability to track
advertising effectiveness, flexibility of message
length and delivery timing, ability to reach global
markets with one advertising buy (e.g., the Yahoo!
portal), and interactivity. The Internet is the first
electronic medium to allow active, self ‐ paced
viewing (similar to print media), and it is the first and
best medium for interactivity. In fact, many say that
with the Internet, users create their own content.


Internet weaknesses
• The Internet's weaknesses include the inability to
reach mass audiences, slow video delivery to
many individuals due to low broadband
penetration, and incomplete audience
descriptions. Many of the weaknesses of the Net
are in the process of being remedied. Audience
measurement was initially a weakness, though
companies such as comScore Media Metrix and
Nielsen//NetRatings have made major
improvements in this area.


Print Media
• Print media include newspapers (local and
national) and magazines. The Net is often
compared to print media because its content is
text and graphic heavy, and because many
traditional print media publishers maintain online
versions. Unlike television and radio, print media
allow for active viewing: Readers can stop and
look at an ad that interests them, sometimes
spending quite a bit of time reading the details. In
general, magazine advertising space is much
more expensive than newspaper space.


Direct Postal and Electronic Mail
• Finally, like the email , postal mail allows for more
selective targeting than any mass medium, can be
personalised, gives good message and timing
flexibility, and is excellent for measuring
effectiveness because of response tracking
capability. However, direct mail has a poor image
(junk mail and spam) and postal mail has high
costs for production and postage. Conversely,
email has low costs but limited market coverage
compared with postal mail, which is changing as
companies build extensive email databases.


Broadcast Faxing
• Broadcast faxing, in which faxes are sent to
multiple recipients, is now less common than
in the past. This is partly due to laws in the
United States and elsewhere which regulate
its use for consumer marketing.


Broadcast Faxing
• Roughly 2% of direct marketers use fax, mostly
for business‐to‐business marketing campaigns.
Also, due to the popularity of a variety of
digital communication methods, the overall
use of faxes is less than in the past.


Couponing
• Couponing is used in print and digital media to elicit a
response from the reader. An example is a coupon
which the reader receives through the mail and takes
to a store's check‐out counter to receive a discount.
• Digital Coupons: Manufacturers and retailers make
coupons available online for electronic orders that can
be downloaded and printed. Digital coupons are
available on company websites, social media outlets,
texts, and email alerts. There are an increasing number
of mobile phone applications offering digital coupons
for direct use.


Couponing
• Daily Deal Sites offer local and online deals
each day, and are becoming increasingly
popular. Customers sign up to receive notice
of discounts and offers, which are sent daily
by email. Purchases are often made using a
special coupon code or promotional code.


Direct Selling
• An additional element of the direct‐marketing
program is direct selling, the direct, personal
presentation, demonstration, and sales of
products to consumers in their homes. Avon,
Amway, Mary Kay Cosmetics, and Tupperware
are some of the best known direct‐sellers.
Most direct sales representatives selling
throughout the world; (98 percent of them)
are independent contractors (not employees
of the firm they represent).

The three forms of direct selling are

• 1.  Repetitive person‐to‐person selling.  The salesperson
visits the buyer's home, job site, or other location to sell
frequently purchased products  (for example, Amway).

• 2.  Non‐repetitive person‐to‐person selling.  The
salesperson visits the buyer's home, job site, or other
location to sell infrequently purchased products  (for
example, Encyclopaedia Britannica).

• 3.  Party plans.  The salesperson offers products  to groups
of people through home or office parties and
demonstrations (for example, Tupperware).


Email Marketing
• Email marketing is directly marketing a commercial
message to a group of people using email. In its broadest
sense, every email sent to a potential or current customer
could be considered email marketing. It usually involves
using email to send ads, request business, or solicit sales or
donations, and is meant to build loyalty, trust, or brand
awareness. Email marketing can be done to either cold lists
or current customer database. Broadly, the term is usually
used to refer to:
• Sending email messages with the purpose of enhancing the
relationship of a merchant with its current or previous
customers, to encourage customer loyalty and repeat
business,


Email Marketing
• Sending email messages with the purpose of
acquiring new customers or convincing current
customers to purchase something immediately,
• Adding advertisements to email messages sent by
other companies to their customers
• Researchers estimate that United States firms
alone spent US $1.51 billion on email marketing
in 2011 and will grow to $2.468 billion by 2016


Email Marketing
• Types of email marketing
• Email marketing can be carried out through
different types of emails:
• Transactional emails
• Transactional emails are usually triggered
based on a customer’s action with a company.
Triggered transactional messages include
dropped basket messages, purchase or order
confirmation emails and email receipts.


Transactional email
• The primary purpose of a transactional email is to
convey information regarding the action that
triggered it. But, due to its high open rates (51.3%
compared to 36.6% for email newsletters)
transactional emails are a golden opportunity to
engage customers; to introduce or extend the
email relationship with customers or subscribers,
to anticipate and answer questions or to cross‐
sell or up‐sell products or services.
•


Email Marketing
• Many email newsletter software vendors offer
transactional email support, which gives
companies the ability to include promotional
messages within the body of transactional
emails. There are also software vendors that
offer specialized transactional email marketing
services, which include providing targeted and
personalized transactional email messages
and running specific marketing campaigns
(such as customer referral programs).

Online
• Marketers also use search engine optimisation
to drive traffic to their sites.
• Social Media Sites, such as Facebook and
Twitter, also provide opportunities for direct
marketers to communicate directly with
customers by creating content to which
customers can respond.


Mobile
• Through mobile marketing, marketers engage
with prospective customers and donors in an
interactive manner through a mobile device or
network, such as a cellphone, smartphone, or
tablet. Types of mobile marketing messages
include: SMS: (short message service) —
marketing communications are sent in the form
of text messages, also known as texting. MMS:
(multi‐media message service) — These
messages use elements such as images, video,
and audio; Mobile Applications:


Mobile
• Smartphone‐based mobile apps contain several
types of messages. Push Notifications are direct
messages sent to a user either automatically or as
part of a campaign. They include transactional,
marketing, geo‐based, and more. Rich Push
Notifications are full HTML Push Notifications.
Mobile apps also contain Interactive ads that
appear inside the mobile application or app;
Location‐Based Marketing: marketing messages
delivered directly to a mobile device based on the
user's location;


QR Codes
• QR Codes (quick‐response barcodes): This is a
type of 2D barcode with an encoded link that
can be accessed from a smartphone. This
technology is increasingly being used for
everything from special offers to product
information. Mobile Banner Ads: Like standard
banner ads for desktop Web pages but smaller
to fit on mobile screens and run on the mobile
content network

IMC Goals and Strategies
• Marketers create marketing communication
objectives based on overall marketing goals
and the desired effects within selected target
markets.


• The traditional AIDA model (awareness, interest,
desire, and action) or the "think, feel, do" hierarchy of
effects model is part of what guides marketers'
selection of online and offline MarCom tools to meet
their goals. Both the AIDA and hierarchy of effects
models suggest that consumers first become aware of
and learn about a new product (think), then develop a
positive or negative attitude about it (feel), and
ultimately move to purchasing it (do). The thinking, or
cognitive, steps are awareness and knowledge. The
feeling, or attitude, steps are liking and preference.


• Consequently, emarketers must select the
appropriate IMC tools—which may vary from
one stage to the other, depending on the
desired results. For example, e ‐ marketers
may opt to use traditional IMC tools of sales
promotion, such as giving away free T ‐ shirts
or mouse pads, to create awareness;
television advertising to create interest and
desire; and direct selling by telephone to get
the desired action (buying).

IMC tools

• The think, feel, do model is well accepted for high
‐ involvement product decisions (those that are
perceived as being high financial, emotional, or
social risk). This model works because consumers
spend some amount of time gathering
information and considering alternatives prior to
buying such products. Conversely, for low ‐
involvement decisions, consumers often just hear
about a product, give it a try, and then decide
whether they like it.


IMC tools
• If a firm wants to build its brands and inform
customers, it will operate at the cognitive and
attitude levels of the hierarchy of effects,
perhaps utilising information publishing, Web
advertising, email campaigns, and other
promotional techniques.


IMC tools
• If a firm wants to encourage online
transactions (behaviour), it needs more
persuasive communication messages that tell
how to complete the transaction on the Web
site, over the telephone, and so forth.
Postpurchase behaviour doesn't appear on
the commonly accepted hierarchy, yet many
MarCom strategies seek to build customer
satisfaction after the purchase. Email is
especially well suited for this goal.

The hierarchy of effects model
• The hierarchy of effects model is important because it
helps marketers understand where consumers stand in
relation to the purchase cycle so the firm can select
appropriate communication objectives and strategies
that will move consumers closer to purchase and
loyalty. Bear in mind that some MarCom tools are
more appropriate for building awareness and brand
attitudes (advertising, public relations) and others are
more suited for encouraging transactional behaviour
(direct marketing, sales promotions, personal selling).
Nevertheless, all can be used at each level.


Target markets
• Understanding the desired effects in each
target market is the first step to building an
effective IMC plan and establishing
benchmarks for applying performance metrics
to measure the plan's success.


Branding versus Direct Response
• Marketing communication can be used to build brand
equity or to elicit a direct response in the form of a
transaction or some other behaviour (such as Web site
registration or email inquiry). The goal of brand
advertising online is to put the brand name and
product benefits in front of users. "Brand advertising
creates a distinct favourable image that customers
associate with a product at the moment they make
buying decisions".
• Marketing public relations also aims to build brands,
while sales promotion, direct marketing, and personal
selling primarily attempt to solicit a direct response.


• Direct ‐ response advertising seeks to
motivate action. Brand communication works
at the awareness and attitude levels of the
hierarchy of effects model (heads and hearts),
while direct ‐ response communication
primarily works at the behavioural level (do
something).


• Although every contact with a firm helps to create
brand impressions in the heads and hearts of
consumers, marketers tend to focus on only one type
of strategy in each IMC campaign. Why, then, is all
marketing communication not direct response?
Marketers hope that all communication will contribute
to sales in the long run, but consumers must first be
made aware of a product before they will buy it. For
high ‐ involvement products, consumers must develop
positive attitudes prior to purchase. Marketers must
keep these principles in mind when selecting among
IMC tools.


Internet Advertising
• Advertising is nonpersonal communication of
information through various media, usually
persuasive in nature about products (goods and
services) or ideas and usually paid for by an
identified sponsor. All paid space on a Web site or
in an email is considered advertising. Internet
advertising parallels traditional media
advertising, in which companies create content
and then sell space to outside advertisers. This
can be confusing, especially when a house
banner appears on a firm's own Web site.


Internet Advertising
• The key is exchange: If a firm pays money or barters
with goods for space in which to put content it creates,
the content is considered advertising. Previously
(earlier section) we discussed how firms create
revenue streams from selling advertising space, but
this and later sections discuss the flip ‐ side: buying
advertising space from someone else to reach a firm's
stakeholders. These specific definitions are
meaningless to consumers (who view all commercial
messages as advertising), but they are important to
marketers because various MarCom tools help to
accomplish various specific goals.


The changing face of online advertising
• Over the next few years the online advertising
landscape will change dramatically. Consumer
consumption of video, mobile and social are
all starting to play a role in the way we plan
and buy media however by 2015 our online
media schedules will look very different to
how they look today.


Integrated Marketing Communication

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