MKT304

Advertising & Promotion

An Integrated Marketing Communications Perspective
Introduction to Integrated
Module 1.
Marketing Communications
lecture notes

Truong Dinh Hong Thuy

[email protected]
M o d u l e C o n te n t

1. What is Integrated Marketing Communication?

2. Basic tools of IMC
3. PEO framework
4. IMC planning process
What is IMC?
1. What is Integrated Marketing Communications?

marketing mix 4Ps

▷ product
▷ price
▷ place (distribution)
▷ promotion
1. What is Integrated Marketing Communications?

a consistent, unified brand

image to the marketplace

coordination of various promotional elements and

other marketing activities that communicate with a
firm’s customers.

consistent perceptions of customers about a

company and/or its various brands
1. What is Integrated Marketing Communications?
1. What is Integrated Marketing Communications?
1. What is Integrated Marketing Communications?
1. What is Integrated Marketing Communications?

I M C re co g n i ze s

• t h e a d d e d va l u e o f a co m p re h e n s i v e p l a n t h a t
eva l u a t e s t h e s t ra t e g i c ro l e s o f – A d v e r t i s i n g , D i r e c t
R e s p o n s e , Sa l e s P r o m o t i o n a n d P u b l i c R e l a t i o n s – a n d
co m b i n e t h o s e p r i n c i p l e s to p rov i d e c l a r i ty ,
co n s i s t e n c y a n d m a x i m u m co m m u n i c a t i o n s i m p a c t .
(American Association of Advertising Agencies)

• to a s s u re t h a t a l l b ra n d co n t a c t s re c e i ve d b y a
c u s to m e r o r p ro s p e c t fo r a p ro d u c t , s e r v i c e , o r
o rg a n i z a t i o n a re re l eva n t to t h a t p e r s o n a n d
co n s i s t e n t ov e r t i m e . ( T h e A m e r i c a n M a r k e t i n g A s s o c i a t i o n )
1. What is Integrated Marketing Communications?

Co m m o n I M C o b j e c t i ve s

• To d ev e l o p b ra n d a w a re n e s s
• To i n c re a s e d e m a n d fo r a p ro d u c t
• To i n f l u e n c e b e h a v i o r s / a t t i tu d e s / b e l i e f s
• To e n h a n c e p u rc h a s e a c t i o n s
• To i m p rov e t ra f f i c ( to s to re s , to w e b … )
• To e n h a n c e b ra n d i m a g e
• To i n c re a s e m a r ke t s h a re
• To i n c re a s e s a l e s
• To re i n fo rc e p u rc h a s e d e c i s i o n s
Basic Tools of IMC
2. Basic tools of IMC

Sales Direct
Packaging
promotion response

Point of Advertising
Public
purchase relations
Mass media
Social advertising Publicity
media

Digital
marketing Direct
Special
marketing
events
2. Basic tools of IMC

• S co p e : b ro a d , e n co m pa s s i n g a l l m a r ke t i n g
co m m u n i ca t i o n e f fo r t s
• Fo c u s : c ro s s - c h a n n e l s y n e rg y
• T i m e f ra m e : l o n g t e r m
• M ea s u re m e n t o f s u cc e s s : b ra n d - re l a t e d co n c e p t s
PEO framework
 success or failure of the company or brand. Customer-initiated and intrinsic messages
fall in between unexpected and company-created messages with respect to impact as
3. PEO framework well as the ability of the marketer to control them.

Paid, Owned, and Earned Media

E: communication
P: channels to pay O: channels that a
Another categorization of the various types of customer touch points that has become
generated by
very popular is that of paid, owned, and earned media, as shown in Figure 1–7.56
to leverage the company controls
Paid media refers to channels a marketer pays to leverage and includes traditional
FIGURE 1–7 outside entities
communication
Paid, Owned, and Earned
Media

Paid Owned Earned

Company pays to leverage Company controls the Company’s customers or

the channel channel media become the channel
● Television, radio ● Website, microsites ● Word-of-mouth
● Magazines, newspapers ● Mobile apps ● Social media mentions,
● Outdoor, direct mail ● Facebook, Twitter, comments
● In-store media Instagram, Snapchat ● Shared videos, pictures
● Online banner ads, videos ● Blogs ● Posts, reposts
● Paid search ● Brochures ● Online reviews
● Social media ads ● In-store displays ● Online communities
● Media coverage
IMC Planning Process
4. IMC planning process

To s t a r t ,

• audience targeting: needs & wants

• messaging strategy: resonates with audience targeting
across all channels
• channel integration: cohesive messages
• performance measurement: data analytics & metrics
4. IMC planning process

• audience targeting: health-conscious consumers

• messaging strategy: the product’s health benefits, natural ingredients,

unique flavor, brand’s commitment to sustainable sourcing & packaging

• channel integration: social media to build

awareness, mass media to reach the market,
email marketing to promote new products,
PRs to secure media coverage and
endorsement from influencers
• performance measurement: web traffic,
social media engagement, email open
rates, sales data, …
4. IMC planning process

air-purifier
 Final PDF to printe
4. IMC planning process
IMC and marketing
Marketing
Strategy and Target Marketing Marketing Planning
Analysis Process Program Development Target Market
Promotion
to final buyer
Opportunity Identifying Product
analysis markets decisions
Promotional
decisions
Advertising
Direct
marketing Ultimate
Competitive Market Pricing Interactive Digital/ consumer
analysis segmentation decisions marketing interactive Consumers
Sales Businesses
promotion
Publicity
how marketing and public
relations
Promotion
to trade
strategies influence the Target
marketing
Selecting a
target market
Channel-of-
distribution
Personal
selling
role of promotion and decisions Resellers

how promotional
decisions must be Positioning
Purchase
through
coordinated with other marketing
areas of marketing mix. strategies
Marketing and Promotions Process Model
4. IMC planning process
IMC and marketing

Marketing Strategy and Analysis >> Opportunity analysis

needs and wants are not

market opportunities = being satisfied

favorable
demand
trends

market analysis: the

marketplace, demand
trends and competition in
various segments
4. IMC planning process
IMC and marketing

Marketing Strategy and Analysis >> Competitive analysis

COMPETITVE ADVANTAGE
direct brand
competition
more indirect forms, e.g. product
substitutes
 Because few, if any, products can satisfy the needs of all consumers, companies often
4 . I M C p l a n n i n g develop
p r o c edifferent
s s marketing strategies to satisfy different consumer needs. The process
LO 2-2
which marketers do this (presented in Figure 2–2) is referred to as target marketing
I M C a n d m a r k e t i n by
g
and involves four basic steps: identifying markets with unfulfilled needs, segmenting the
market, targeting specific segments, and positioning one’s product or service through
FIGURE 2–2
Marketing Strategy and Analysismarketing
>> Target Marketing
strategies. >> Target Marketing Process
The Target Marketing
Process

Identifying Determining Selecting a Positioning

markets with market market through marketing
unfulfilled needs segmentation to target strategies

“the art & science of fitting

the product/ service to one or
Identifying Markets more segments of the broad
marketthe
When employing a target marketing strategy, the marketer identifies in such a way
specific as to set
needs
it meaningfully
of groups of people (or segments), selects one or more of these segments asapart from
a target,
competition”
and develops marketing programs directed to each. This approach has found increased
applicability in marketing for a number of reasons, including changes in the market
• consumer:
(consumers are becoming much more diverse in their needs, attitudes, and product
lifestyles);
increased use of segmentation by competitors; and the fact thatbenefits
more managers
vs. needs are
trained in segmentation and realize the advantages associated with this strategy. Per-
• competition
haps the best explanation, however, comes back to the basic premise that you must
 Final PDF to printer

4. IMC planning process

IMC and marketing
THE TARGET MARKETING PROCESS
Because few, if any, products can satisfy the needs of all consumers, companies often
LO 2-2 develop different marketing strategies to satisfy different consumer needs. The process

Marketing Strategy and Analysis >> Target Marketing

by which marketers do this (presented in Figure 2–2) is referred to as target marketing
and involves four basic steps: identifying markets with unfulfilled needs, segmenting the
market, targeting specific segments, and positioning one’s product or service through
>> Target Marketing Process
FIGURE 2–2
marketing strategies.
The Target Marketing
Process

Identifying Determining Selecting a Positioning product

markets with market market through marketing
unfulfilled needs segmentation to target strategies attributes &
benefits
Identifying Markets re- price/
When employing a target marketing strategy, the marketer identifies the specific needs positioning quality
of groups of people (or segments), selects one or more of these segments as a target,
and develops marketing programs directed to each. This approach has found increased
applicability in marketing for a number of reasons, including changes in the market
(consumers are becoming much more diverse in their needs, attitudes, and lifestyles);
increased use of segmentation by competitors; and the fact that more managers are

positioning
trained in segmentation and realize the advantages associated with this strategy. Per-
haps the best explanation, however, comes back to the basic premise that you must
understand as much as possible about consumers to design marketing programs that cultural use or
meet their needs most effectively.
symbols application
strategies
Target market identification isolates consumers with similar lifestyles, needs, and
the like and increases our knowledge of their specific requirements. The more market-
ers can establish this common ground with consumers, the more effective they will
be in addressing these requirements in their communications programs and informing
and/or persuading potential consumers that the product or service offering will meet
their needs.
Let’s use the beer industry as an example. Years ago, beer was just beer, with little
differentiation, many local distributors, and few truly national brands. The industry
began consolidating; many brands were subsumed by the larger brewers or ceased to product
exist. As the number of competitors decreased, competition among the major brewers competitor
increased. To compete more effectively, brewers began to look at different tastes, life- class
styles, and so on of beer drinkers and used this information to design their marketing
strategies. This process resulted in the identification of many market segments, each of product
which corresponds to different customers’ needs, lifestyles, and other characteristics.
The beer market has changed dramatically over the past few years, with domestic user
brands and imports increasing their consolidation efforts. One of the faster-growing
segments—craft breweries—itself now consists of a number of segments with numer-
ous offerings available in each (Figure 2–3). Most of the large traditional brewers also

FIGURE 2–3
4. IMC planning process
IMC and marketing
Marketing Planning Program Development

distribution
product price promotional
channel
decisions decisions strategies
decisions
cost-based, competition-based direct or indirect? push or pull?
market skimming, market penetration
product mix pricing
Omni? relations with the
Webrooming? trade, promotional
Showrooming? … budget, demand of
consistent with the products
perceptions of the product
price-ads-distribution
channels: unified voice

product symbolism, branding, packaging

convenience, shopping, specialty, unsought
4. IMC planning process
IMC and marketing
Marketing Planning Program Development

PuLL vs. PuSH

end-user marketing initiatives channeling marketing efforts through

intermediaries/ broader audience
enhance loyalty, customer engagement, build boost short-term sales, increase brand
strong brand, establish long-term relationships, awareness, launch new offerings, enter a special
… market, …
social media, email marketing, website, ads, trade shows, sales visit, direct marketing, mass
WOM, influencer… media, …
valuable & informative content, engaged direct & promotional messages focus on product
storytelling, emotional appeals… features, benefits, discounts, …
4. IMC planning process

review of analysis of analysis of budget develop integrate and

marketing promotional communication determination IMC implement MC
plan, program process program strategies
brand situation set & allocate
status

internal analysis monitor,

external analysis: channel integration: evaluate,
consumers, STP objectives, budget, and control
messages, strategy IMC program

overall marketing plan MKT funnel &

and objectives customer journey
competitive analysis elements of
environmental communication
influences goals & objectives
4. IMC planning process
Create strategic options by internal strengths & weakness

Strengths Weaknesses

Opportunities

SO WO focus on overcoming
leverage strengths to
maxi-maxi mini-maxi weaknesses by taking
capitalize on opportunities
advantage of opportunities

ST WT avoid or reducing
use strengths to
maxi-mini mini-mini weaknesses and threats
minimize threats

Threats
4. IMC planning process
Create strategic options by internal strengths & weakness
Strength Weakness
good SEO ranking poor PPC performance

Opportunities
User-friendly page >>
+ PPC performance
Adopt SEO capability to improve Hire expert or incorporate new
webpage ranking >> improve the technology to equip necessary skills
relevance of the web and PPC to exploit the opportunities

Maximize the strength in SEO to gain Change the strategy or

the top1 ranking on web search >> improve the capability first,
Threat
create a chance of securing a better before considering using PPC
Competitors with treatment within PPC
good PPC results
IMC Planning Background
 Assignment _ Sistuation Analysis

• Company analysis
• Communication Market analysis
• Customer analysis
• SWOT analysis
• Key communication problem(s) to be solved
 Assignment _ Situation Analysis

• Company analysis
o Company background: brand name, development history, mission & vision,
o Product description
o Target customers of the company/ brand/ product
o Existing (digital) marketing assets/ activities: description, strengths and weaknesses
o Any communication activities at the moment?

Þ What are strengths and weakness of the company/ brand/ product?

Þ Key products’ value propositions? Unique selling points? Capabilities of the
company/ brand?
Þ How is the company/ brand/ product perceived by the target customers?
 Assignment _ Situation Analysis

• Communication market analysis

o Market trends
§ the current issue of sustainability in Vietnam, its importance and/ or impact to the society;
perceptions and/ or attitudes of the Vietnamese people towards that issue
o Competitive analysis: who are competitors? Statements about competitors (product-related, ads,
promotion materials, website content, …)
o Communication Opportunity analysis: any gaps related to sustainability issues that have not yet
been exploited/ mentioned/ used as a communication theme in the market?

Þ Why is the company/ brand/ product uniquely capable of capitalizing on the market opportunities?
(consider value propositions of the product, brand reputation of the brand/ company)
Þ How sustainable is the competitive advantage of the company/ brand?
Þ Communication gap in the theme
 Assignment _ Situation Analysis

• Target market analysis

o Customer analysis
§ Customer demographics
§ Behavioral analysis – buying criteria (why customers choose to buy your products over ones
offered by your competitors): quality, price, convenience and prestige.
§ Behavioral analysis - purchase process & patterns: decision-making process, buying habits
(reason/ occasion of buying, buying frequency, buying timetable, purchased volume,
purchase length, how & where products are consumed, … )
o Market Segmentation
o Select target market(s) and positioning: perception of target customers about brand/ product
(value propositions), product’s position/ standing relative to competitors

Þ Identify target customers, specify their needs, know how to satisfy them, and especially predict if the
new theme of sustainability can attract their attention and persuade them to buy
 Assignment _ Situation Analysis

• SWOT analysis
o O & T: capturing from the market analysis
o S & W: from the company analysis by key areas in marketing, including but not limited to brand
name, marketing mix 4Ps
o Develop the strategic direction(s) to follow: maxi-maxi, maxi-mini, mini-maxi, mini-mini

Þ How sustainable is the competitive advantage of the company/ brand?

Þ Which strategies that the company/ brand can adopt to win the market
opportunity or perform the communication problem(s)?
MKT304
Advertising & Promotion
An Integrated Marketing
Communications Perspective