LEARNING MODULE

Program Outcomes:

By the time of graduation, the students of the program shall be able to:
1. Articulate and discuss the latest developments in the specific field of practice.
2. Effectively communicate orally and in writing using both English and Filipino
3. Work effectively and independently in multi-disciplinary and multi-cultural teams.
4. Act in recognition of professional, social, and ethical responsibility.
5. Preserve and promote "Filipino historical and cultural heritage".
6. Perform the basic functions of management such as planning, organizing, staffing, directing and
controlling.
7. Apply the basic concepts that underlie each of the functional areas of business (marketing, finance,
human resource management, production and operations management, information technology, and
strategic management) and employ these concepts in various business situations.
8. Select the proper decision making tools to critically, analytically and creatively solve problems and
drive results.
9. Express oneself clearly and communicate effectively with stakeholders both in oral and written forms.
10. Apply information and communication technology (ICT) skills as required by the business
environment.
11. Work effectively with other stakeholders and manage conflict in the workplace.
12. Plan and implement business related activities.
13. Demonstrate corporate citizenship and social responsibility.
14. Exercise high personal moral and ethical standards.
15. Analyze the business environment for strategic direction.
16. Prepare operational plans.
17. Innovate business ideas based on emerging industry.
18. Manage a strategic business unit for economic sustainability.
19. Conduct business research.
20. To participate in various types of employment, development activities, and public discourse
particularly in response to the needs of the communities one serves.

Course Title: Advertising

Course Description
This course aims to provide thorough understanding about advertising in the real world. It will
help student analyze marketing/advertising opportunities and will be able to know the process in creating
and advertising plans. This course discusses details about advertising foundation and environment,
advertising media, and creating advertising. This will introduce student to the richness and variety of the
advertising world.

Course Outcomes:
In this course, you should be able to:
1. Explain how integrated marketing communications has evolved; how it differs from traditional
media advertising, and its role in the marketing program.
2. Describe the way marketer’s organize for integrated marketing communications and describe
the role and function of advertising agencies, media specialist, and marketing communications
organization.
3. Describe organizations measure the effectiveness of their integrated marketing communication
programs and ways of determining return of investment.
4. Discuss the importance of developing and implementing media strategies.
 5. Identify the advantage and limitations of various media including print, broadcast, and
alternatives media.
6. Create an integrated marketing communication program for an existing business.

Module 1 – Introduction to Integrated Marketing Communications

Introduction:

Marketing communications is a key strategic area for any business, as it gives visibility and
understanding of an organization’s products and or services, providing information that elicits a positive
response. Utilizing a variety of techniques, marketing communications applies a range of tools,
techniques and media to deliver these messages, designing campaigns that drive desired behavioral
responses.
This module gives you knowledge and skills of marketing communication practice. Building
upon theories and concepts of marketing communications you will learn from practice and live case
studies appreciating how communication campaigns are designed. It will look in detail at the media
landscape, providing students with understanding of the role different media has in delivering the
communications mix, both offline and online. This knowledge gained will allow you to determine
whether this is an area you would like to specialize in as you progress with your degree, helping you to
determine whether the advertising and public relations pathway is one you wish to take.

Module Learning Outcomes:

In this module, you should be able to:

1. Explain the role of marketing communications within the context of an organization’s strategy.
2. Engage a critical awareness of the breadth and scope of marketing communications and media
strategies in different platforms of advertising.
3. Make a promotional tool for a local business.

Lesson 1
An Introduction to Integrated Marketing Communications

I. Learning Outcomes:
In this lesson, you should be able to:
1. Describe the marketing communication function and the growing importance of advertising
and other promotional elements in the marketing programs of companies.
2. Explain the concept of integrated marketing communication (IMC) and consider how it has
evolved.
3. Discuss the reasons for the increasing importance of IMC perspective in planning and
executing advertising and promotional programs.
4. Explain the various elements of the promotional mix and consider their roles in an IMC
programs.
5. Describe various marketing and promotional elements that must be coordinated to
communicate effectively.
6. Illustrate the concept of the IMC planning process and examine the steps in developing a
marketing communications program.

II. Pre-Assessment:
1. Another name for a company’s marketing communications mix is:
a. the advertising program.
b. the sales force.
 c. the image mix.
d. the promotion mix.

2. Which tool of the promotional mix is defined as any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor?
a. advertising
b. public relations
c. direct marketing
d. sales promotion
3. Which tool of the promotional mix consists of short-term incentives to encourage the purchase or sale
of a product or service?
a. advertising
b. public relations
c. direct marketing
d. sales promotion

4. The _______________________ is the specific mix of advertising, personal selling, sales promotion,
public relations, and direct marketing tools that the company uses to pursue its advertising and marketing
objectives.
a. value mix
b. integrated dealer mix
c. marketing communications mix
d. marketing control mix

5. If a company wants to build a good ―corporate image,‖ it will probably use which of the following
marketing communications mix tools?
a. advertising
b. public relations
c. direct marketing
d. sales promotion

III. Lesson Map:

Integrated Marketing
Communications (IMC)
Include various

Promotional Tools Marketing Activities

Such as Such as

Advertising Direct Marketing Content Creation Budgeting

That communicate with

CUSTOMERS
Figure 1.1 The figure above shows the factors that are essential in implementing the integrated marketing communications (IMC)
program.
IV. Core Content:
ENGAGE: DETERMINING EFFECTIVE ADVERTISING

Activity 1: Writing Activity

The pictures presented above are posters/billboards of Jollibee Food Corporation that were both
launched during the Christmas season. After observing the pictures, you are expected to write a short
essay.

Guide Questions:
1. Which poster/billboard is more effective and appealing to you and why?
2. What are the differences that you observed in the two posters/billboards? Give at least two.

Write your answer on the space provided.

EXPLORE: DEVELOPING INTEGRATED MARKETING COMMUNICATIONS

Instruction: Read the article entitled ―Do Billboard Advertisements Drive Customer Retention?‖ by John
L. Fortenberry, Peter J. McGoldrick

Do Billboard Advertisements Drive Customer Retention?

With increasing audience fragmentation, advertisers face greater challenges as well as new
opportunities for communicating with current and prospective customers. This change is due in large part
to the proliferation of interactive technologies, which give individuals more choices and, in some cases,
the ability to block content selectively. Digital viewing and recording devices make channel zapping and
advertisement skipping extremely easy while also reducing the viability of some print media.
Billboard advertising may offer a viable option, because no technologies exist to block delivery of
billboard images and messages, although consumers may ignore them if busy with other tasks. Billboards
have received criticism, in some cases accused of causing visual pollution and clutter, environmental
harm if installers remove vegetation, and possible motorist distraction (Scenic America, 2017; Vespe,
1997). Others have expressed concerns regarding billboards that advertised potentially harmful products,
with associated public-health impacts, particularly among disadvantaged communities (Altman, Schooler,
and Basil, 1991; Hackbarth, Silvestri, and Cosper, 1995).
Billboards are defined as ―large format advertising displays intended for viewing from extended
distances, generally more than 50 feet‖ (Outdoor Advertising Association of America [OAAA], 2016). Use
of the medium is widespread, accounting for approximately $7.6 billion of advertising expenditures in the
United States. Although sales declined briefly during the 2007–2009 recession, the trend of consistent
annual growth soon returned, and growth has averaged 3.7 percent annually since 2009 (OAAA, 2016).The
medium enjoys a lower cost per thousand views than other mass media, which makes billboard
advertising a viable option for reaching regional or national audiences (Moriarty, Mitchell, and Wells,
2015; OAAA, 2016).
Billboards have a long history and still attract increasing investment. A body of academic
literature has developed, but there is a need for further investigation of the functions and potential of
billboards. Industry sources report trends and cases of billboard campaigns (e.g., OAAA, 2016), but
assessments of the full range of billboards' potential effects are limited. Both current and prospective
customers usually are advertisers' targets; the former significantly more likely will recognize
advertisements (Vaughan, Beal, and Romaniuk, 2016). Billboards' effects on existing customers have not
been a main focus of previous research studies, however.
Questions have emerged across the advertising industry regarding levels of consumer
receptiveness, given increasing disenfranchisement from efforts to capture their attention, because of the
pervasiveness of advertising messages (Elliott and Speck, 1998; Ha and Litman, 1997; Hammer, Riebe,
and Kennedy, 2009). Information overload has intensified as advertisers try to break through existing
clutter by adding more communication channels (Truong and Simmons, 2010), creating even higher noise
levels (Steinberg, 2008). This onslaught of intrusive messages has resulted in consumers walling
themselves into their own worlds (Kim, Kim, Yeh, and Choi, 2011), many using technologies to help stem
the flow (Mitchell, 2012).
Advertising clutter and goal impediment have become major causes of Internet-advertisement
avoidance (Seyedghorban, Tahernejad, and Matanda, 2016). Previous and existing customers are the
most accessible targets for such advertising, because companies already have knowledge of their interests
and preferences (Bleier and Eisenbeiss, 2015).
An interesting dilemma therefore faces those considering using billboards. On the one hand,
billboards are a distinctive medium and thus are able to stand out in an age of advertising clutter,
information overload, and active blocking by consumers. On the other hand, many people are growing
weary of commercial appeals that are intrusive to their daily life.

Activity 2: Article Review

Guide Questions:
1. Billboards can deliver desired exposure, but does that exposure result in strong persuasion toward the
advertisers especially during today’s pandemic?
______________________________________________________________________________
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_____________________________________________________________________________________

2. From your perspective, are billboards still valuable and how versatile are they as advertising platforms?
______________________________________________________________________________
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_____________________________________________________________________________________

EXPLAIN: COMPREHENDING INTEGRATED MARKETING COMMUNICATIONS

Businesses across the country were either struggling or shutting down amidst the pandemic. In
this section, you will learn the importance of Integrated Marketing Communication so with its roles and
functions.

I. Definitions and Role of Marketing

 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. (American Marketing Association)
 The science and art of exploring, creating, and delivering value to satisfy the needs of a
target market at a profit. (Philip Kotler)
 Is to know and understand the customer so well the product or service fits him and sells itself…
The aim of marketing is to make selling superfluous. (Peter Drucker)

Those definitions of marketing focused on exchange and of course customer satisfaction as a central
concept in marketing and the use of the basic marketing activities to create and sustain relationships with
customers. For exchange to occur there must be two or more parties with something of value to one
another, a desire and ability to give up that something to another party, and a way to communicate with
each other.
However, not all marketing transactions involve the exchange of money for a product or service.
Example: Nonprofit organizations such as charities and religious groups receive millions of money as
donations every year but how?
They used ADS to solicit contributions from the public, such as the one shown below which asks for
clothes donation in order for their organization to sell it then the revenue will be used to fund job
placement and training for people in the community.
 Integrated Marketing Communication (IMC) is the application of consistent brand messaging across
both traditional and non-traditional marketing channels and using different promotional] methods to
reinforce each other

Marketing plays an important role in establishing relationships between customers and the
organizations offering to the market. It gives us the confidence to want to try a new product in the market
as opposed to situations where the products enter the market without publicity. This makes the marketing
function critical in every organization irrespective of whether the organization is a profit or non-profit
centered.
Advertising and promotion plays an important role in the exchange process by informing customers
of an organization’s product or service and convincing them to its ability to satisfy their needs or wants.

II. The Marketing Mix

The basic task of marketing is combining these elements into a marketing program to facilitate
the potential for exchange with customers in the marketplace. The primary focus of this module is on one
element of the marketing mix: the promotional variable. However, the promotional program must be part
of a viable marketing strategy and be coordinated with other marketing activities.
A firm can spend large sums on advertising or sales promotion, but it stands little chance of
success if the product is of poor quality, is priced improperly, or does not have enough distribution to
customers and a firm can spend less but stands more chance of success.
For many years, the promotional function in most companies was dominated by mass-media
advertising. Companies relied primarily on their advertising agencies for guidance in nearly all areas of
marketing communications. Most of them use additional promotional and marketing communication
tools, but sales promotion and direct marketing as well as package design firms were generally viewed as
auxiliary services and often used on a per-project basis.

Refers to any type of marketing communication used

to inform or persuade target audiences of the relative
merits of a product, service, brand or issue. It helps
marketers to create a distinctive place in customers'
mind. The aim of promotion is to increase awareness,
create interest, generate sales or create brand loyalty.
Activity 3.1: Self-Assessment Question

Based on the definitions of Marketing cited and illustration of the Marketing Mix highlighting the
promotional variable, how important ―promotional elements‖ are in the marketing programs of
companies?

______________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

III. The Evolution of Integrated Marketing Communication (IMC)

In 1980, marketers began taking a broader perspective of marketing communication

Rapid development of areas such as sales promotion, direct marketing & public relation

firms began to moving toward the process of Integrated Marketing Communications

Use of ad agencies

Acquiring PR, sales promotion & direct marketing

Terms such as new adverising, orchestration & seamless communication were used to describe the
concept of intergration

Companies now sees IMC as a way to coordinate & manage their marketing communication
programs

IV. Reasons for the Growing Importance of IMC

The move toward integrated marketing communications is one of the most significant marketing
developments that occurred during the 1990s, and the shift toward this approach is continuing as we begin
the new century. The IMC approach to marketing communications planning and strategy is being adopted
by both large and small companies and has become popular among firms marketing consumer products
and services as well as business-to-business marketers.

There are a number of reasons why marketers are adopting the IMC approach.
1. They understand the value of strategically integrating the various communications functions
rather than having them operate autonomously
2. Companies can avoid duplication, take advantage of synergy among promotional tools, and
develop more efficient and effective marketing communications programs. Advocates of IMC
3. Easiest ways for a company to maximize the return on its investment in marketing and promotion

The move to integrated marketing communications also reflects an adaptation by marketers to a

changing environment, particularly with respect to consumers, technology, and media. Major changes
have occurred among consumers with respect to demographics, lifestyles, media use, and buying and
shopping patterns. For example, cable TV and more recently digital satellite systems have vastly
expanded the number of channels available to households. Some of these channels offer 24-hour shopping
networks; others contain 30- or 60-minute direct-response appeals known as infomercials, which look
more like TV shows than ads. Every day more consumers are surfing the Internet's World Wide Web.

Several shifts in the advertising and media industry have caused IMC to develop into a primary
strategy for marketers:
1. From media advertising to multiple forms of communication.
2. From mass media to more specialized (niche) media, which are centered around specific target
audiences.
3. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.
4. From general-focus advertising and marketing to data-based marketing.
5. From low agency accountability to greater agency accountability, particularly in advertising.
6. From traditional compensation to performance-based compensation (increased sales or benefits to
the company).
7. From limited Internet access to 24/7 Internet availability and access to goods and services.

Activity 3.2: Self-Assessment Question

Based on the discussion above about the evolution and growing importance of Integrated
Marketing Communications:
1. Discuss the reasons for the increasing importance of IMC.
______________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

2. How important it is to promote your product/service amidst this pandemic?

______________________________________________________________________________
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_____________________________________________________________________________________
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_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

V. The Promotional Mix: The Tools for IMC

Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of
information and persuasion in order to sell goods and services or promote an idea. The basic tools used to
accomplish an organization’s communication objectives are often referred to as the promotional mix.
Each element of the promotional mix is viewed as an integrated marketing communications tool
that plays a distinctive role in an IMC program.
 The Promotional
Mix

Interactive/
Advertising Direct Marketing Internet Sales Promotion Public Relations Personal Selling
Marketing

1. Advertising—any paid form of presenting ideas, goods, or services by an identified sponsor.

Historically, advertising messages have been tailored to a group and employ mass media such as radio,
television, newspaper, and magazines. Advertising may also target individuals according to their profile
characteristics or behavior; examples are the weekly ads mailed by supermarkets to local residents or
online banner ads targeted to individuals based on the sites they visit or their Internet search terms.

Advantages
 a cost-effective way of communicating, predominantly with large audiences
 ability to create images and symbolic appeals and for differentiating similar products and services
 opportunity to leverage popular advertising campaigns into successful IMC programs which can
generate support from retailers and other trade members
 ability to control the message (what, when and how something is said and where it is delivered)

Disadvantages:
 the cost of producing and placing ads can be very high, particularly television commercials
 it can be difficult to determine the effectiveness of advertising
 there are credibility and image problems associated with advertising
 the vast number of ads has created clutter problems and consumers are not paying attention to
much of the advertising they see and/or hear

Classifications of Advertising
Advertising to Consumer Markets
 National Advertising – done by large companies on a nationwide basis or in most regions of the
country. Most of the ads that are seen on primetime TV.
 Retail/Local Advertising – done by local merchants to encourage consumers shop at a specific
store. Tends to emphasize price, hours of operation, service, atmosphere, or merchandise offered.
 Primary-versus Selective Demand Advertising –designed to stimulate demand for the general
product class or entire industry.
Advertising to Business and Professional Markets
 Business-to-Business Advertising- targeted to individuals who buy or influence the purchase of
industrial goods or services for their companies.
 Professional Advertising – targeted to professionals such as doctors, lawyers, dentists or
professors to encourage them use a company’s product in their business operation.
 Trade Advertising – targeted to marketing channel members such as wholesalers, distributors, and
retailers. The goal is to encourage channel members to stock, promote, and resell manufacturer’s
brand to their customers.

2. Direct Marketing—this method aims to sell products or services directly to consumers rather than
going through retailer. Catalogs, telemarketing, mailed brochures, or promotional materials and television
home shopping channels are all common traditional direct marketing tools. Email and mobile marketing
are two next-generation direct marketing channels.
 Advantages:
 changes in society (two-income households, greater use of credit) have made consumers more
receptive to the convenience of direct-marketed products
 allows a company to be very selective and target its marketing communications to specific
customer segments
 messages can be customized to fit the needs of specific market segments
 the effectiveness of direct-marketing efforts are easier to assess than other forms of promotion

Disadvantages:
 consumers and businesses are being bombarded with unsolicited mail and phone calls which
makes them less receptive to direct-marketing
 direct marketing has image problems
 problems with clutter as there are too many direct-marketing messages competing for consumers’
attention

3. Interactive/Internet Marketing – covers a lot of ground, from Web sites to search-engine, content,
and social media marketing. Digital marketing tools and techniques evolve rapidly with technological
advances, but this umbrella term covers all of the ways in which digital technologies are used to market
and sell organizations, products, services, ideas, and experiences. The rapid penetration of cell phones and
smartphones is leading to a rapid growth in mobile marketing whereby marketing messages are sent
directly to the devices.

Advantages:
 the Internet can be used for a variety of integrated marketing communication functions including
advertising, direct marketing, sales promotion, public relations and selling.
 messages can be tailored to appeal to the specific interests and needs of the target audience
 the interactive nature of the Internet leads to a higher degree of customer involvement when
customers are visiting a website.
 the Internet makes it possible to provide customers with a great deal of information regarding
product and service descriptions and specifications, purchase information and more. Information
provided by marketers can be updated and changed continually.
 The Internet has tremendous creative potential as a well-designed website can attract a great deal
of attention and interest among customers and be an effective way to generate interest in a
company as well as its various products and services.

Disadvantages
 the Internet is not yet a complete mass medium as about a quarter of U.S. households do not have
access to the Internet and many do not have broadband access. In some countries, this percentage
is much higher.
 there are problems with the Internet as an advertising medium as many Internet users do not pay
attention to banner ads and the click-through rate on most is extremely low.
 there is a great deal of clutter on the Internet which makes it difficult for advertising messages to
be noticed and/or given attention.

4. Sales Promotion— Sales promotions are marketing activities that aim to temporarily boost sales of a
product or service by adding to the basic value offered, such as ―buy one get one free‖ offers to
consumers or ―buy twelve cases and get a 10 percent discount‖ to wholesalers, retailers, or distributors.

Advantages:
 provides extra incentive to consumer or middlemen to purchase or stock and promote a brand
 a way of appealing to price-sensitive consumer
  a way of generating extra interest in product or ads
 effects can often be more directly measured than those of advertising
 can be used as a way of building or reinforcing brand equity

Disadvantages:
 many companies are becoming too reliant on sales promotion and focusing too much attention on
short-run marketing planning and performance
 many forms of sales promotion do not help establish or reinforce brand image and short-term
sales gains are often achieved at the expense of long-term brand equity
 problems with sales promotion clutter as consumers are bombarded with too many coupons,
contests, sweepstakes and other promotional offers
 consumers may become over-reliant on sales promotion incentives which can undermine the
development of favorable attitudes and brand loyalty.
 in some industries, promotion wars may develop whereby marketers sales promotion incentives
extensively which results in lower profit margins and makes it difficult to sell products at full
price

5. Publicity/Public Relations
Publicity—non-personal communications about an organization, product, service, or idea that is not
directly paid for nor run under identified sponsorship.
Public Relations—a management functions which evaluate public attitudes, identify the public policies
and procedures of an individual or organization with the public interest and execute a program of action
to earn public understanding and acceptance.

Advantages of Publicity:
 the credibility of publicity is usually higher than other forms of marketing communication
 low cost way of communicating
 often has news value and generates word-of-mouth discussion among consumers

Disadvantages of Publicity:
 lack of control over what is said, when, where and how it is said
 can be negative as well as positive

6. Personal Selling— uses people to develop relationships with target audiences for the purpose of
selling products and services. Personal selling puts an emphasis on face-to-face interaction, understanding
the customer’s needs, and demonstrating how the product or service provides value.

Advantages:
 direct contact between buyer and seller allows for more communication flexibility
 can tailor and adapt the message to specific needs or situation of the customer
 allows for more immediate and direct feedback
 promotional efforts can be targeted to specific markets and customers who are best prospects

Disadvantages:
 high cost per contact
 expensive way to reach large audiences
 difficult to have the consistent and uniform message delivered to all customers
VI. The IMC Planning Process
Review of Marketing Plan
Examine overall marketing plan and objectives
Role of advertising and promotion
Competitive Analysis
Assess environmental influences

Analysis of Promotional Program Situation

Internal analysis External analysis
Promotional department organization Consumer behavior analysis
Firm’s ability to implement promotional program Market segmentation and targeting
Agency evaluation and selection Market Positioning
Review of previous program results

Develop Integrated Marketing Communications Program

Advertising Sales Promotion
Set objectives Set objectives
Determine budget Determine budget
Develop message Develop message
Develop media strategy Develop media strategy
Direct Marketing Public relations/publicity
Set objectives Set objectives
Determine budget Determine budget
Develop message Develop message
Develop media strategy Develop media strategy
Interactive/Internet marketing Personal selling
Set objectives Set objectives
Determine budget Determine budget
Develop message Develop message
Develop media strategy Develop media strategy

Integrate and Implement Marketing Communications Strategies

Integrate promotional-mix strategies
Create and produce ads
Purchase media time and space
Design and implement direct-marketing programs
Design and distribute sales promotion materials
Design and implement public relations/publicity programs
Design and implement interactive/internet marketing programs

Monitor, Evaluate, and Control Integrated Marketing Communications Program

Evaluate promotional program results/effectiveness
Take measures to control and adjust promotional strategies
Activity 3.3: Self-Assessment Question

From the flow chart given above, how does Integrated Marketing Communications work?
______________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________________________________________________

V. Topic Summary
In this lesson, you learned that:
 Marketing has a broad scope but still meet to its core goal which to satisfy customers.
 Advertising and promotion plays an important role in the exchange process by informing
customers of the product/service and convincing them to its ability to satisfy their needs or wants.
 There are now 7P’s of the Marketing Mix from the original 4P’s. Process, Physical Evidence, and
People were added.
 There are various promotional tools that can be used to relay your marketing message to your
target customers.
 Promotional tools can be conveyed personally or nonpersonal. Some are also unpaid.
 Promotional mix includes: Advertising, Personal Selling, Direct Marketing, Sales Promotion,
Integrated/internet Marketing, and Public Relations.
 Most companies, be it small or big has their own way of promoting their products/services/ideas.

VI. Post - Assessment

1. ____________________ must be part of a viable marketing strategy and be coordinated with
other marketing activities.
2. ____________________the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit.
3. ____________________the coordination of all seller-initiated efforts to set up channels of
information and persuasion in order to sell goods and services or promote an idea.
4. ____________________puts an emphasis on face-to-face interaction, understanding the
customer’s needs, and demonstrating how the product or service provides value.
5. ____________________the basic tools used to accomplish an organization’s communication
objectives.
6. ____________________non-personal communications about an organization, product, service, or
idea that is not directly paid for nor run under identified sponsorship.
7. ____________________marketing activities that aim to temporarily boost sales of a product or
service by adding to the basic value offered.
8. ____________________targeted to marketing channel members such as wholesalers, distributors,
and retailers.
9. ___________________any paid form of presenting ideas, goods, or services by an identified
sponsor.
10. ___________________done by large companies on a nationwide basis or in most regions of the
country.
VII. References:

 Belch, George E. and Belch Michael A., Advertising and Promotion (An Integrated Marketing
Communication Perspective), New York: McGraw-Hill, 9th Ed. 2012
 Belch, George E. and Belch Michael A., Advertising and Promotion (An Integrated Marketing
Communication Perspective), New York: McGraw-Hill, 8th Ed. 2009. 659.1
 https://www.academia.edu/31385716/Advertising_and_Promotion__Integrated_Marketing_Com
munication
 http://www.journalofadvertisingresearch.com/content/60/2/135
 https://www.zabanga.us/marketing-communications/reasons-for-the-growing-importance-of-
imc.html
 Lesson 2
The Role of IMC in the Marketing Process

I. Learning Outcomes:

In this lesson, you should be able to:

1. Describe the various decision areas under each element of the marketing mix and how they
influence and interact with advertising and promotional strategy.
2. Explain the concept of target marketing in an integrated marketing communications programs.
3. Identify the role of integrated marketing communications in the marketing process.
4. Explain the use of positioning and repositioning strategies.
5. Illustrate the marketing process and the role of advertising and promotion an organization’s
integrated marketing program.

II. Pre-Assessment:

1. Consistency is not regarded as an important characteristic of IMC.

True False
2. Employees should play an integral role in the development of IMC.
True False
3. Integrated agencies are the best bet for clients wishing to adopt fully integrated marketing
communications.
True False
4. Generally it is not understood who in client organizations should be responsible for IMC.
True False
5. Communication strategy should always be media oriented.
True False
6. Product symbolism refers to what a product or brand means to consumers and what they experience in
purchasing and using it.
True False
7. Target market identification isolates consumers with similar lifestyles, needs, and the like.
True False
8. Differentiated marketing involves marketing in a number of segments, developing separate marketing
strategies for each.
True False
9. The package is often the consumer’s first exposure to the product, so it must make a favorable first
impression.
True False
10. A company can choose not to use any channel intermediaries but, rather, to sell to its customers
through direct channels.
True False
III. Lesson Map:

Identifying Promotional
Opportunity Product decisions
Markets
Analysis Decisions -Advertising
-Direct
Marketing
-Interactive Purchase Ultimate
Market
Competitive Pricing Marketing consumer
Analysis Segmentation Decisions -Sales -Consumers
Promotion -Businesses
-Publicity/
Public
Target Selecting a Channel of Relations
Marketing target market Distribution -Personal
Decision Selling Resellers

Positioning
through
marketing
strategies

Figure 2.1 The figure above shows the role of Integrated Marketing Communications in the Marketing Process by using different
marketing strategies and analysis.

IV. Core Content:

ENGAGE: PICTURE ANALYSIS

Activity 1: Writing Activity

Based on your observations on the illustration presented above, answer the following:

Guide Questions:
1. Describe the illustration above.
2. What do you think is the thought being implied?
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EXPLORE:

Diana Margarine is a product of Dy Buncio & Co., Inc. However, the product is not in the market
anymore. Here’s a short glimpse of the product.

Diana Margarine became popular in the Philippines between the 1930’s and 1940’s. Similar to
Star Margarine, this product was sold in cans and did not require refrigeration. It was manufactured in
Manila by Dy Buncio & Co., Inc.
In the product endorsement shown above, pre-war movie star Carmen Rosales (second from
right) is referred to as the Señorita, the same name of her hit movie produced by Sampaguita Pictures and
directed by Dr. Gregorio Fernandez.
Sitting next to the young Rosales were (from left) Gloria Del Mundo, Rosa Aguirre, Miguel
Anzures (assistant production manager), and Narding Anzures.
Narding, son of Rosa Aguirre and Miguel Anzures, was a popular child actor who would later be
convicted of murder for killing actress Lilian Velez and her housemaid in 1948.

Activity 2

Instructions: Investigate more about Diana Margarine of Dy Buncio & Co., Inc. then answer the given
guide questions briefly.

Guide Questions:
1. What happened to the product?
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2. Are there marketing functions/strategies that were not addressed by the company that caused its
decline? If yes, what are those marketing functions and how it contributed to the decline?
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EXPLAIN: UNDERSTANDING THE ROLE OF IMC IN MARKETING

This lesson discusses how to influence the marketing strategies of promotion activities and how
the promotion decision should be coordinated with other marketing mix elements. This chapter also
discusses the role of advertising and other promotional elements in an integrated marketing program, a
decision to be taken on each element of the marketing mix and find out how decisions that affect and
interact with a promotional strategy, the concept of target marketing in integrated marketing
communications program; the role of market segmentation and its application on integrated marketing
communications programs as well; the use of positioning strategies.

I. Marketing Strategy and Analysis

Any organization that wants to exchange its products or services in the marketplace successfully
should have a strategic marketing plan to guide the allocation of its resources. A strategic marketing plan
usually evolves from an organization’s overall corporate strategy and serves as a guide for specific
marketing programs and policies. It is based on a situation with a detailed assessment of the current
marketing conditions facing the company, its product lines, or its individual brands.

Opportunity Analysis
 A careful analysis of the marketplace should lead to alternative market opportunities for existing
product lines in current or new markets, new products for current markets, or new products for
new markets
 Market opportunities are areas where there are favorable demand trends, where the company
believes customer needs and opportunities are not being satisfied, and where it can compete
effectively
Athletic-shoe companies such as Nike, Reebok, and others see the shoe market as an opportunity to
broaden their customer base both domestically and internationally

Competitive Analysis
 In developing the firm’s marketing strategies and plans for its products and services, the manager
must carefully analyze the competition to be faced in the marketplace. For example, recently the
U.S. market has seen significant growth in the high-end luxury market, with more consumers
spending more of their money on luxury goods than ever before. High-end products from Coach,
Tiffany’s, and Ralph Lauren are all benefiting from this change in consumer spending habits.
 This may range from direct brand competition (which can also include its own brands) to more
indirect forms of competition, such as product substitutes
 An important aspect of marketing strategy development is the search for a competitive advantage,
something special a firm does or has that gives it an edge over competitors
In developing the firm’s marketing strategies and plans for its products and services, the manager must
carefully analyze the competition to be faced in the marketplace. Interestingly, it is not just the wealthy
that are purchasing these very expensive products, but the middle class is doing so as well. Leading
marketers apply labels such as the ―massification of luxury,‖ ―luxflation,‖ or the ―new luxury‖ segments

II. Target Marketing Process

After evaluating the opportunities presented by various market segments, including a detailed
competitive analysis, the company may select one, or more, as a target market. This target market
becomes the focus of the firm’s marketing efforts, and goals, and its objectives are set according to where
the company wants to be and what it hopes to accomplish in the market.
Identifying Markets
 Target market identification isolates consumers with similar lifestyles, needs, and the like, and
increases our knowledge of their specific requirements
 The more marketers 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

Determining Market Segmentation

Market Segmentation is the process of dividing up a market into distinct groups that have common
needs and will respond similarly to a marketing process. The Process involves the following steps:

 Finding ways to group consumers according to their needs

 Finding ways to group the marketing actions—usually the products offered available to the
organization
 Developing a market-product grid to relate the market segments to the firm’s products or actions
 Selecting the target segments toward which the firm directs its marketing actions
 Taking marketing actions to reach target segments

Selecting a target market

1. Determining how many segments to enter:
 Undifferentiated marketing involves ignoring segment differences and offering just one product
or service to the entire market
 Differentiated marketing involves marketing in a number of segments, developing separate
marketing strategies for each
 Concentrated marketing is used when the firm selects one segment and attempts to capture a
large share of this market

2. Determining which segments offer potential: The second step in selecting a market involves
determining the most attractive segment. The firm must examine the sales potential of the
segment, the opportunities for growth, the competition, and its own ability to compete. Then it
must decide whether it can market to this group.
Positioning through Marketing Strategies
Positioning has been defined as ―the art and science of fitting the product or service to one or
more segments of the broad market in such a way as to set it meaningfully apart from competition.‖
Positioning strategies generally focus on either the consumer or the competition.

Developing a Positioning Strategy: To create a position for a product or service, managers must
ask themselves six basic questions:
 What position, if any, do we already have in the prospect’s mind?
 What position do we want to own?
 What companies must be outgunned if we are to establish that position?
 Do we have enough marketing money to occupy and hold the position?
 Do we have the guts to stick with one consistent positioning strategy?
 Does our creative approach match our positioning strategy?
Approaches: Determining the positioning strategy
i. Positioning by Product Attributes and Benefits i. Identifying competitors
ii. Positioning by Price/Quality ii. Assessing consumers’ perceptions of competitors
iii. Positioning by Use or Application iii.Determining competitors’ positions
iv. Positioning by Product Class iv. Analyzing the consumers’ preferences
v. Positioning by Product User v. Making the positioning decision
vi. Positioning by Competitor vi. Monitoring the position
vii. Positioning by Cultural Symbols
viii. Repositioning

Activity 3.1 Self-Assessment Question

1. Explain the use of positioning and repositioning strategies in an integrated marketing communications.
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III. Developing the Marketing Planning Program

The development of the marketing strategy and selection of a target market(s) tell the marketing
department which customers to focus on and what needs to attempt to satisfy. It involves combining the
various elements of the marketing mix into a cohesive, effective marketing program. Each marketing mix
element is multidimensional and includes a number of decision areas.
Likewise, each must consider and contribute to the overall IMC program. We now examine
product, price, and distribution channels and how each influences and interacts with the promotional
program.

Product Decisions
Product is not just a physical object; it is a bundle of benefits or values that satisfies the needs of
consumers. Product symbolism refers to what a product or brand means to consumers and what they
experience in purchasing and using it.
Product planning involves decisions not only about the item itself, such as design and quality, but
also about aspects such as service and warranties as well as brand name and package design. Consumers
look beyond the reality of the product and its ingredients. The product’s quality, branding, packaging, and
even the company standing behind it all contribute to consumers’ perceptions.
 Branding
One important role of advertising in respect to branding strategies is creating and maintaining brand
equity, which can be thought of as an intangible asset of added value or goodwill that results from the
favorable image, impressions of differentiation and/or the strength of consumer attachment to a company
name, brand name, or trademark.
 Packaging
Packaging is another aspect of product strategy that has become increasingly important. The package is
often the consumer’s first exposure to the product, so it must make a favorable first impression.

Pricing Decisions
The price variable refers to what the consumer must give up to purchase a product or service.
While price is discussed in terms of the peso amount exchanged for an item, the cost of a product to the
consumer includes time, mental activity, and behavioral effort. A firm must consider a number of factors
in determining the price it charges for its product or service, including costs, demand factors, competition,
and perceived value.
Relating Price to Advertising and Promotion
Factors such as product quality, competition, and advertising all interact in determining what
price a firm can and should charge. Studies have shown that pricing and advertising strategies so together.
High relative ad expenditures should accompany higher prices, and low relative ad expenditures should
tailor to low prices.

Distribution Channel Decisions

Marketing channels, the place element of the marketing mix, are ―sets of interdependent
organizations involved in the process of making a product or service available for use or consumption.
The distribution strategy should take into consideration the communication objectives and the
impact that the channel strategy will have on the IMC program.
A company can choose not to use any channel intermediaries but, rather, to sell to its customers
through direct channels. This type of channel arrangement is sometimes used in the consumer market
firms using direct-selling programs, such as Avon, and Mary Kay.

IV. The Role of Advertising and Promotion

The marketing program includes promotion both to the trade (Channel members) and to the
company’s ultimate customers. Marketers use the various promotional-mix elements—advertising, sales
promotion, direct marketing, publicity/public relations, and personal selling—to inform consumers about
their products, their prices, and places where the products are available. Each promotional mix variable
helps marketers achieve their promotional objectives, and all variables must work together to achieve an
integrated marketing communications program. The development and implementation of an IMC program
is based on a strong foundation that includes market analysis, target marketing and positioning, and
coordination of the various marketing-mix elements.

V. Topic Summary
In this lesson, you learned that:
 There are two types of analysis that can be used in analyzing your market: the Opportunity
Analysis and Competitive Analysis.
 In the process of target marketing, you must start with identifying markets, determining market
segmentation, selecting a target market, and positioning through marketing strategies.
 There are various approaches on how to segment/divide your market such as Geographic
Segmentation, Demographic Segmentation, Behavioral Segmentation and Psychographic
Segmentation.
 In developing the Marketing Planning Programs, there are decisions to be considered thoroughly.
That includes Product Decisions, Pricing Decisions, and Distribution Channel Decisions.
  The role of advertising and promotion is to inform consumers about their products, prices, and
places where the products are available.
 Advertising and Promotion also helps marketers achieve their organizational goals.

VII. References:

 Belch, George E. and Belch Michael A., Advertising and Promotion (An Integrated Marketing
Communication Perspective), New York: McGraw-Hill, 9th Ed. 2012
 Belch, George E. and Belch Michael A., Advertising and Promotion (An Integrated Marketing
Communication Perspective), New York: McGraw-Hill, 8th Ed. 2009. 659.1
 Batra, Satish K. Advertising & Sales Promotion 2 nd Edition. Excel Books 2004. 659.