CHAPTER 1
AN INTRODUCTION TO INTEGRATED MARKETING
COMMUNICATIONS
Chapter Overview
The purpose of this opening chapter is to provide the student with an overview of the field
of advertising and promotion and its role in the marketing process. We introduce the
concept of integrated marketing communications (IMC), its evolution, and examine how
various marketing and promotional elements must be coordinated to communicate
effectively. We also discuss the reasons for the increasing importance of the IMC
perspective in planning and executing advertising and promotional programs. Marketers
understand the value of strategically integrating the various communication functions
rather than having them operate autonomously. The move to integrated marketing
communications also reflects an adaptation by marketers to a changing environment,
particularly with respect to consumers, technology, and media. The various elements of the
promotional mix are introduced in this chapter along with a brief discussion of these basic
tools of IMC. We discuss how many companies are taking an audience contact or touch point
perspective in developing their IMC programs and consider four basic categories of touch
points. This chapter also examines the various tasks and responsibilities involved in
advertising and promotion management and a model of the integrated marketing
communications planning process is presented. Lastly, we give an overview of the
perspective and organization of the rest of the text.
Learning Objectives
1. To examine the marketing communication function and the growing importance
advertising and other promotional elements play in the marketing programs of
domestic and foreign companies.
2. To introduce the concept of integrated marketing communications (IMC) and
consider how it has evolved.
3. To examine the reasons for the increasing importance of the IMC perspective in
planning and executing advertising and promotional programs.
4. To introduce the various elements of the promotional mix and consider their role in
an IMC program.
5. To examine the various types of contact points through which marketers
communicate with their target audiences.
6. To introduce a model of the IMC planning process and examine the steps in
developing a marketing communications program.
,Chapter and Lecture Outline
I. INTRODUCTION TO ADVERTISING AND PROMOTION
The chapter begins with a brief discussion of the changing roles of advertising and
promotional strategy in modern marketing. Instructors should note the role and importance
of an organization’s promotional efforts in various industries and markets. These might
include the automotive market, the beer industry, soft drinks, and consumer electronics.
The opening vignette on Gatorade provides a very good overview of this how various IMC
tools are used by major marketers to communicate with their target audiences.
II. THE GROWTH OF ADVERTISING AND PROMOTION
Advertising and promotion are integral parts of our social and economic systems.
Advertising has evolved into a vital communication system for both consumers and
businesses. In market-based economies, consumers rely on advertising and other forms of
promotion to provide them with information they can use in making purchase decisions.
Corporations rely on advertising and promotion to help them market their products and
services.
Evidence of the increasing importance of advertising and promotion in the marketing
process comes from the growth in expenditures in these areas over the past decade. In
1980, advertising expenditures in the U.S. were $53 billion and $49 billion was spent on sale
promotion. By 2013 an estimated $198 billion was spent on advertising while sales
promotion expenditures increased to more than $300 billion! Advertising expenditures
outside of the U.S. increased from $55 billion in 1980 to $365 billion by 2013. Billions more
are spent by both domestic and foreign companies in other promotional areas such as direct
marketing, event sponsorship, interactive marketing, sponsorships and public relations. The
tremendous growth in expenditures for advertising and promotion reflect the growth of the
U.S. and global economies. Expansion-minded marketers are taking advantage of growth
opportunities in various regions of the world and taking advantage of integrated marketing
opportunities through methods such as event sponsorship and the use of the Internet.
Particularly noteworthy is the increase in the amount of marketing communications dollars
being spent online. Nearly $21 billion was spent for online and mobile search marketing in
2013 and another $4.6 billion on social media sites. Spending on Internet advertising –
which includes mobile, social, display, and search ads – is growing rapidly and is expected
to account for over 20 percent of advertising expenditures by 2014.
Professor Notes
,III. THE ROLE OF MARKETING
A. Many students may already have had a marketing course; however, it is still helpful
to define marketing and stress that it involves more than just selling or other
promotion functions. For more than two decades, the American Marketing
Association, the association that represents marketing professionals in the United
States and Canada, defined marketing as:
the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives.
This definition of marketing focused on exchange as a central concept and the
various activities involved in the marketing process. Many experts argue that
exchange is the core phenomenon or domain for study in marketing. The discussion
can focus on the nature of exchange and what is needed for this process to occur
including: two or more parties with something of value to one another; a desire and
ability to give up their something of value to the other party; and a way for the
parties to communicate with one another.
B. Revised Definition of Marketing — In 2007 the AMA adopted a revised definition of
marketing:
Marketing is the activity, set of institutions, and processes for creating,
communicating, and delivering exchange offerings that have value for
customers, clients, partners and society at large.
This definition of marketing is more reflective of the role non-marketers to the
marketing process. It also focuses on the important role marketing plays in
developing and sustaining relationships with customers and delivering value to
them.
Value is the customer’s perception of all of the benefits of a product or service
weighed against all the costs of acquiring and using it. Benefits can be functional,
experiential or psychological. Costs include the money paid for the product or
service as well as other factors such as acquiring information, making the purchase,
learning how to use a product/service, maintaining, and disposing of it.
C. The Marketing Mix—The four elements of the marketing mix (product, price, place,
and promotion) can be introduced and the task of combining these elements into an
effective marketing program for facilitating exchange with a target audience should
be noted. The instructor should point out that while this course focuses on the
promotion element of the marketing mix, the promotional program must be part of
, a viable marketing strategy and coordinated with other marketing mix variables.
This leads into a discussion of the concept of integrated marketing communications.
Professor Notes:
AN INTRODUCTION TO INTEGRATED MARKETING
COMMUNICATIONS
Chapter Overview
The purpose of this opening chapter is to provide the student with an overview of the field
of advertising and promotion and its role in the marketing process. We introduce the
concept of integrated marketing communications (IMC), its evolution, and examine how
various marketing and promotional elements must be coordinated to communicate
effectively. We also discuss the reasons for the increasing importance of the IMC
perspective in planning and executing advertising and promotional programs. Marketers
understand the value of strategically integrating the various communication functions
rather than having them operate autonomously. The move to integrated marketing
communications also reflects an adaptation by marketers to a changing environment,
particularly with respect to consumers, technology, and media. The various elements of the
promotional mix are introduced in this chapter along with a brief discussion of these basic
tools of IMC. We discuss how many companies are taking an audience contact or touch point
perspective in developing their IMC programs and consider four basic categories of touch
points. This chapter also examines the various tasks and responsibilities involved in
advertising and promotion management and a model of the integrated marketing
communications planning process is presented. Lastly, we give an overview of the
perspective and organization of the rest of the text.
Learning Objectives
1. To examine the marketing communication function and the growing importance
advertising and other promotional elements play in the marketing programs of
domestic and foreign companies.
2. To introduce the concept of integrated marketing communications (IMC) and
consider how it has evolved.
3. To examine the reasons for the increasing importance of the IMC perspective in
planning and executing advertising and promotional programs.
4. To introduce the various elements of the promotional mix and consider their role in
an IMC program.
5. To examine the various types of contact points through which marketers
communicate with their target audiences.
6. To introduce a model of the IMC planning process and examine the steps in
developing a marketing communications program.
,Chapter and Lecture Outline
I. INTRODUCTION TO ADVERTISING AND PROMOTION
The chapter begins with a brief discussion of the changing roles of advertising and
promotional strategy in modern marketing. Instructors should note the role and importance
of an organization’s promotional efforts in various industries and markets. These might
include the automotive market, the beer industry, soft drinks, and consumer electronics.
The opening vignette on Gatorade provides a very good overview of this how various IMC
tools are used by major marketers to communicate with their target audiences.
II. THE GROWTH OF ADVERTISING AND PROMOTION
Advertising and promotion are integral parts of our social and economic systems.
Advertising has evolved into a vital communication system for both consumers and
businesses. In market-based economies, consumers rely on advertising and other forms of
promotion to provide them with information they can use in making purchase decisions.
Corporations rely on advertising and promotion to help them market their products and
services.
Evidence of the increasing importance of advertising and promotion in the marketing
process comes from the growth in expenditures in these areas over the past decade. In
1980, advertising expenditures in the U.S. were $53 billion and $49 billion was spent on sale
promotion. By 2013 an estimated $198 billion was spent on advertising while sales
promotion expenditures increased to more than $300 billion! Advertising expenditures
outside of the U.S. increased from $55 billion in 1980 to $365 billion by 2013. Billions more
are spent by both domestic and foreign companies in other promotional areas such as direct
marketing, event sponsorship, interactive marketing, sponsorships and public relations. The
tremendous growth in expenditures for advertising and promotion reflect the growth of the
U.S. and global economies. Expansion-minded marketers are taking advantage of growth
opportunities in various regions of the world and taking advantage of integrated marketing
opportunities through methods such as event sponsorship and the use of the Internet.
Particularly noteworthy is the increase in the amount of marketing communications dollars
being spent online. Nearly $21 billion was spent for online and mobile search marketing in
2013 and another $4.6 billion on social media sites. Spending on Internet advertising –
which includes mobile, social, display, and search ads – is growing rapidly and is expected
to account for over 20 percent of advertising expenditures by 2014.
Professor Notes
,III. THE ROLE OF MARKETING
A. Many students may already have had a marketing course; however, it is still helpful
to define marketing and stress that it involves more than just selling or other
promotion functions. For more than two decades, the American Marketing
Association, the association that represents marketing professionals in the United
States and Canada, defined marketing as:
the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives.
This definition of marketing focused on exchange as a central concept and the
various activities involved in the marketing process. Many experts argue that
exchange is the core phenomenon or domain for study in marketing. The discussion
can focus on the nature of exchange and what is needed for this process to occur
including: two or more parties with something of value to one another; a desire and
ability to give up their something of value to the other party; and a way for the
parties to communicate with one another.
B. Revised Definition of Marketing — In 2007 the AMA adopted a revised definition of
marketing:
Marketing is the activity, set of institutions, and processes for creating,
communicating, and delivering exchange offerings that have value for
customers, clients, partners and society at large.
This definition of marketing is more reflective of the role non-marketers to the
marketing process. It also focuses on the important role marketing plays in
developing and sustaining relationships with customers and delivering value to
them.
Value is the customer’s perception of all of the benefits of a product or service
weighed against all the costs of acquiring and using it. Benefits can be functional,
experiential or psychological. Costs include the money paid for the product or
service as well as other factors such as acquiring information, making the purchase,
learning how to use a product/service, maintaining, and disposing of it.
C. The Marketing Mix—The four elements of the marketing mix (product, price, place,
and promotion) can be introduced and the task of combining these elements into an
effective marketing program for facilitating exchange with a target audience should
be noted. The instructor should point out that while this course focuses on the
promotion element of the marketing mix, the promotional program must be part of
, a viable marketing strategy and coordinated with other marketing mix variables.
This leads into a discussion of the concept of integrated marketing communications.
Professor Notes:
