Integrated Marketing
Communication and
Advertising
BSB 126 Marketing
Today’s Learning Objectives
! To introduce Integrated Marketin
Australia：BSB126 Advertising BB.ppt (Read-Only）代写g
Communication as a new way to think
about communication and advertising
! To be familiar with the four disciplines of
marketing communication – advertising,
public relations, sales promotion and direct
marketing
Today’s Learning Objectives
! To examine what advertising is and how it
works
! To explore the history and role of
advertising
Australia：BSB126 Advertising BB.ppt (Read-Only）代写
! To understand the contribution that
advertising makes to society, its
organisations and its members
Integrated Marketing
Communication: A new way to
think about Advertising
IMC defined
! The concept under which a company
carefully integrates and coordinates its
many communications channels to deliver
a clear, consistent and compelling
message about the organisation and its
product
! Kotler, Brown, Adam and Armstrong 2001
First IMC definition - AAAA 1989
! A concept of marketing communications
planning that recognises the added value
in a program that integrates a variety of
strategic disciplines e.g. general
advertising, direct response, sales
promotion and public relations – and
combines these disciplines to provide
clarity, consistency and maximum
communications impact.
IMC and Marketing
! “In IMC theory, everything marketing does
sends a message – every element of the
marketing mix communications
something.” Schultz
! A $5,000 price tag sends a different
message to a $50 one.
! Buying a present from David Jones
communicates something different than
buying a present from K-Mart or City
Beach.
Key constructs of IMC
! Builds on number of traditional marketing
communication disciplines
! Integrates the strategy and the message
to maximize the impact
! Chooses the marketing communication
discipline based on IMC objectives
! Addresses multiple audiences and builds
Australia：BSB126 Advertising BB.ppt (Read-Only）代写
relationships with them
Key constructs of IMC
! Database central to all
communication
! Continuous, circular, responsive
communication
! Shared budgets and evaluation measures
! Measurable and accountable
! Aims to achieve synergy
Synergy
! The whole is greater than the sum of the
parts.
! In IMC, synergy suggests that an entire
structure of messages – with its links and
repetition – creates impact beyond the
power of any one message on its own and
this happens in situations where there
might be little attention paid to
conventional advertising (Moriarty 1996)
Reasons for the Growth of IMC
! Changes in marketplace
! Changes in organisational structure
! Changes in consumers
! Changes in communication
Marketplace changes
! Mass production/mass marketing/mass
advertising paradigm obsolete
! Shift in marcom dollars to non-advertising
sources
! Rise in database marketing, sales promotion
and direct marketing
! Proliferation and fragmentation of media
! Declining audience numbers
! Cost of advertising increased at rate higher than
CPI
Changing organisational structure
! Consolidation of advertising agency and public
relations agency ownership
! Increasing qualifications of client
! Static advertising agency gross income
! Convergence of industries and technologies
! Growth in outsourcing
! Dramatic shift from product to service economy
! Shift in marketplace power from manufacturer to
retailer
Changing consumers
! Increasing education levels
! More women in the workforce
! Demise of the nuclear family – single parent
families, older population
! Money rich, time poor – decisions made on
factors other than price
! Increasingly knowledgeable and perhaps
skeptical about advertising and marketing
communications
! Declining brand loyalty
Changes in Communication
! Shift from verbal to visual
! Functional illiteracy – reduced need to
read
! Growth in the value and importance of
perception versus the facts
IMC media, tools and technologies
! Mass communication – advertising (with or
without sales promotion incentives) via TV,
radio, newspapers, magazine, outdoor, cinema
and movies
! Targeted communication – (with or without sales
promotion incentives) pay TV, home shopping,
public relations, door-to-door selling, catalogues,
Yellow Pages, events, sponsorships, trade
exhibitions, automatic vending machines.
IMC media, tools and technologies
! In-store communication – (with or without sales
promotion incentives) retail counter selling,
merchandising, location TV and radio, aisle
displays, POS displays, packaging.
! One-to-one communication – (with or without
sales promotion incentives) database marketing,
direct mail, interactive TV, telemarketing,
electronic dispensing and kiosks, personal
selling.
Four IMC disciplines
! Advertising – Any paid form of non-
personal presentation and promotion of
ideas, goods and services by an identified
sponsor
! Sales promotion – Short term incentives to
encourage the purchase of a product or
service
Four IMC disciplines
! Direct marketing – An interactive system of
marketing which uses one or more advertising
media to effect a measurable response or
transaction at any location
! Public Relations – Building good relations with
the company’s various publics by obtaining
favourable publicity, building a good corporate
image and handling unfavourable rumours,
stories and events
Contributions of IMC disciplines
! Advertising - Reaches large audiences quickly
and cost effectively, builds image through
emotion, symbols, visuals and repetition and
can create added value
! Sales Promotion - Provides immediate short-
term boost, but can weaken brand loyalty,
encourage cost cutting and reduce profitability
! Direct Marketing – measurable, targeted,
accountable
! Public relations – credibility, targeted, cost
effective, relationship building
! Personal selling – interactive, relationships
Barriers to the implementation
of IMC
! Organisational structure - silos
! Turf battles and agency egos
! Lack of support of top management
! Lack of database development
! Lack of measurement tools
! Marketers reluctance to put all eggs in one
basket
! Lack of expertise
Australia：BSB126 Advertising BB.ppt (Read-Only）代写
Advertising
What is it, how does it work and
what contribution does it make to
society?
Advertising
! The term advertising is derived from the
Latin ad vertere which means ‘to turn the
mind toward”
! Advertising is any paid form of non-
personal presentation and promotion of
ideas, goods and services by an identified
sponsor
Characteristics of Advertising
! Paid for
! Non personal presentation
! Uses mass media
! Identified sponsor
How advertising is different from
other marcoms
! Advertising is always paid communication
unlike PR, sales promotion or direct
marketing
! Advertising only uses mass media unlike
direct marketing, sales promotion or PR
! Advertising always has an identified
sponsor unlike PR or direct marketing
How advertising is the same
! Consumers view all communication as
advertising – unable to discriminate
between sales promotion, direct marketing
and public relations
Which of these are advertising?
! Help-wanted
classified
! Store sign
! Press release
! Matches from
restaurant
! Shopper docket
! Calendar with real
estate agent’s name
! Yellow Pages
! Advertising is any
paid form of non-
personal presentation
and promotion of
ideas, goods and
services by an
identified sponsor
Advertising is everywhere
! Average Western person is exposed to
between 300 and 2000 advertisements
every day.
! Only 80 of those are consciously noted.
! Only 12 result in some form of response.
Advertising exists because
! It is part of our communication system
! It advises people of the availability of
goods and services
! It assists in making informed decisions
! It advises people of their rights and
obligations as citizens
! It informs, guides, directs, persuades and
warns us
Advertising contributes to society
! As an instrument of marketing
communication
" Integral part of our economic system
" Direct relationship with the manufacture,
distribution, marketing and sale of goods and
services
" Businesses need advertising and advertising
itself is a vital business
Advertising contributes to society
! As a form of social communication
" Delivers messages about a society
" Describes life as we live it or would like to live it
" Demonstrates the values, aspirations and
aesthetics of the people
" Borrows from the contemporary art and culture
History of Advertising
! Pre-marketing era – from start of product
exchange in prehistoric times to middle of
18 th century
" Clay tablets – Babylonia 3000BC
" Papyri – ancient Egypt
" Town criers – Greeks through to Middle
Ages
" Signs in stone or terracotta – Pompeii
" Tavern signs and trade guild logos
History of Advertising
! Mass communication era – from 1500s to
1950s
! Began with the invention of moveable type
(Gutenberg 1438) and driven by
technology
" 1480 Caxton prints first ads in English
" 1525 first pamphlet printed in Germany
" 1875 magazines in America
" 1920s arrival of commercial radio
History of Advertising
! Research era – 1960s to present
! Improved techniques for identifying and
reaching targeted audiences
" 1959 television in Brisbane
" Growth in audit business
" Development of computer and Internet
" Growth of direct marketing
" Evolution of IMC
Role of Advertising
! Makes the prospect familiar with the
product
! Reminds the prospect about the product
! Brings news of new products
! Adds values not intrinsic to the product
! Reassures and helps retain customers
! Increases the enthusiasm of those
marketing the product
How advertising works
! “Only the very brave or the very ignorant
can say exactly what advertising does in
the marketplace.”
! Advertising can produce both
communication and behavioural effects
! But extensive research into advertising
has not established direct relationship
between advertising and sales (expect in
case of direct response advertising)
Advertising as communication
! Sharing of an idea, exchanging information or
the process of developing a commonality of
thought between the sender and the receiver
! Lasswell (1948)
" Who
" Says what
" In which Channel
" To whom
" With what effect
How advertising works
(Vakratsus and Ambler 1999)
Advertising Input
Message, media, repetition
Filters
Motivation, ability (involvement)
Consumer
Australia：BSB126 Advertising BB.ppt (Read-Only）代写
Cognition, affect, experience
Consumer Behaviour
Choice, consumption, loyalty
Sender
Encoding
Channel
Noise
Receiver
Decoding
Feedback
Some blogs and sites for great ads
! www.coloribus.com
! www.adsoftheworld.com
