A Systems Model for

Integrated Marketing Lommunications

4-1 Introduction
4-2 The Systems Model of Integrated Marketing Communications
4-3 Strategy + Objectives + Tactics

4-4 Budgeting 4-5 Setting Objectives - -

4-6 Monitoring and Control

4-7 Analysis and Planning
4-7a Strategy Selection 4-7b Setting Objectives 4-7c Budgeting

fa

4-8 Marketing Communications Integration

Summary Discussion Questions :Yellow Pages versus Search Engines Suggested Readings

affective (feeler) strategy (p. 77) brand association (p. 77) brand awareness (p. 77) brand preference (p. 77) brand purchase (p. 78) brand trial (p. 78) budget (p. 78) buildup approach (p. 78) conjoint analysis (p. 83) demographics (p. 83) divestment strategy (p. 77) growth strategy (p. 77) habit-formation (doer) strategy (p. 78) harvest strategy (p. 77) informative (thinker) strategy (p. 77) innovation strategy (p. 77) integration (p. 75) means-end chains (p. 75) multiattribute attitude models (p. 83) psychographics @. 83) self-satisfaction (reactor) strategy (p. 78)

The achievement of onegoal should be the starting point of another.

-Alexander Graham Bell (1847-1922), Scottish-Americaninventor, ~nvented telephone and phonograph

4-1 Introduction
Marketers often consider the college student market as a fairly well-defined and homogeneous type of market. While not completely true, the college market does offer a defined IMC environment to which most of us can relate. The college market is the target market for a variety of products that run the gamut from lowinvolvement, low-cost brands to high-involvement, high-cost brands. Marketers are constantly trying to entice this group with "fiee" products for trial. The college student is the recipient of shaving cream and razors, magazines, and even credit cards that offer "interest fiee" and no fees for a limited period of time if the student starts to use them. Food marketers such as Kellogg's and their Pop-Tarts brand have distributed fiee samples to incoming students at the beginning of the school year. Local and chain restaurants put two-for-one coupons in campus mailboxes; and, at sporting events, cell phone companies give away T-shirts and other paraphernalia that have their logo and contact information emblazoned on them. General Motors has worked with student groups at campuses across the country to stage brand events for their Pontiac and Chevrolet brands that include live music, vacation giveaways, and free food-all done to provide the college market with a chance to interact with the brand. College newspapers are full of advertisements from both national and local businesses. Companies also advertise their products o n television programs such as Z%e OC with both media buys and product placements. Reality shows, such as Survivor, which score high in ratings with the college demographic, are full of brand promotion executions. To further the brand relationship with students, marketers are also active in cyberspace through interactive websites, emails, and instant messaging. Specialty magazines target the college market, and many advertisers buy space in them hoping to gain exposure to the college market. Companies such as Marketsource have focused o n providing full IMC solutions to attract the collegeage population. SMC Marketplace Watch 4-1 gives an example of a very focused media approach to the market developed by recent college graduates. Consider a marketing program that is centered on campus movie cross-promotion events. Marketers could place several movie trailers to run before the movies are shown. Corporate sponsors of these trailers would then promote the movies in campus newspapers and hand out literature and samples at the campus theater. However, at times, marketers have not always been as successful as they could be in the college student market due to a number of problems related to integration. In the past, for example, different promotional materials were made with different slogans and often contradictory messages. Some messages appeared to emphasize certain product benefits, while other messages emphasized other benefits. Some promotional materials had trademarks and logos, while others did not. No attempt had been made to set concrete objectives and measure performance. Tactical problems were rampant. For example, visiting high school students snapped up free samples distributed in the dorms. Posters promoting a specific event were not put up. Advertisements were run

The college market spends over $200 billion per year. As a consequence, this market is extremely lucrative for marketers who can figure out how to tap into it. Campus Connections, a company launched by three recent college graduates-Christian Thornburg, Cristian Stenstrom, and Heather Tillett-believe they have created a great way to access that market through the development of a new marketing communications venue. Thornburg relates his experiences while a student at Notre Dame as the genesis of the idea. "Marrying the concept of a cohesive magazine with content specifically pertinent to college students inspired us to create GenZ Magazine." Stenstrom says, "We believe we have found the answer and, based on the outstanding response to our first issue, advertisers seem to thlnk so too." GenZ Magczine was launched in 2004 with an issue and a website. Initially heading out to one hundred campuses, GenZ Magazine positioned itself as the first magazine to be circulated exclusively through the use

of pre-insertions into college bookstore bags. By doing so, they drove circulation to one million copies in the fall of 2004, and hoped to keep on growing with the strategy. GenZ tries to blend a number of features focused on the college and university setting by delivering content specific to that setting. That content runs the gamut from a lot of "how-to" practical information kinds of things to advice on careers, travel tips, and even on such matters as politics. GenZ gets published twice an academic year at the start of the semester cycle. The recently graduated entrepreneurs now have an exclusive deal with the National Association of College Stores (NACS) and also have hooked up with another company that focuses on the college market, Follett Corporation (http://www.follett.com) to increase circulation in the future.
Sowrce: Adapted from http://www.writenews.com/2004/ 082704-genz-rnagazine.htm.

in the campus paper after the target event had already taken place. Samples distributed at bookstores were not effective because the store employees were too busy t o enforce the company's policy requiring students to sign a log sheet and show a school ID. Promotion materials that were supposed to go into mailboxes were not distributed. The people distributing these would stick a big pile next t o the mailboxes, come back a couple of days later, and throw away whatever had not been picked up.' While these problems may seem to be ones that are unique t o the college environment, they are not. It is not uncommon t o encounter these in almost any campaign promoting all kinds of products in all kinds of markets. Often these problems can be traced directly t o a lack of integration on the part of the marketer. The elements of any marketing communications program have t o be managed in such a way t o achieve corporate and marketing objectives. The management process requires that the elements be selected in ways t o achieve the marketing objectives (which in turn should be instrumental in achieving corporate objectives). Each element of the marketing communications mix has to be driven by specific and explicit objectives that have to be monitored over time to ensure continuous progress. The objectives pertaining t o each element of the marketing communications mix have t o be consistent with the strategies and tactics associated with that element. Implementing these strategies and tactics requires resources, and these resources have to be effectively budgeted. A process of control has t o be in place to identify problem areas and implement immediate corrective action. These are all issues of integration, which is the focus of this book. This chapter introduces you t o a systems model 6f marketing communications. The systems model shows how the entire process of marketing communications can be planned t o ensure strategic integration. All marketing communications processes are structured hierarchically: at the top, processes are related to the corporate level; next, the marketing department level; then the marketing communications level; and, finally, each element of the marketing communications mix. In addition, specific objectives and subordinate processes can be identified as a direct function of a given process at any hierarchical level. The

Chapter Four A Systems Model for Integrated Marketing Communications

75

model shows that system integration can be effectively achieved by allocating adequate resources for the implementation of the process elements within a given hierarchical level, monitoring performance against the stated objectives, exerting continuous control, and analyzing and planning.

4-2 The Systems Model of Integrated IVlarketing Communications

The systems model forms the theoretical framework organizing topics in this book and shows how these topics are integrated into a "whole." The model posits that all organizational processes are structured hierarchically. Specific objectives and subordinate processes are identified as a direct function of a given process at any hierarchical level. Thus, marketing communications planning can be described in terms of a process hierarchy involving at least four levels: corporate, marketing, marketing communications, and within each element of the marketing communications mix (advertising, public relations, direct marketing, sales promotions, reseller support, and word-of-mouth communications). Within each level of this process hierarchy, the marketing communications manager selects a strategy from a pool of optional strategies. The selected strategy at a given hierarchical level guides the manager to articulate quantitative objectives consistent with that strategy. Similarly, the marketing communications manager selects a strategic mix (subordinate processes) that is designed to meet the goal of the selected strategy (i.e., its objectives). Integration can be achieved by building and reinforcing links among the system's components within each level of the process hierarchy (see Figure 4-1).

4-3 Strategy + Objectives + Tactics

Let us recap from the previous chapter for a moment. A systems model is developed here for the specific purpose of integrating the various elements of the marketing communications mix. The model asserts that any organizational process can be viewed as a hierarchy of processes. Thus, organizational tasks can be viewed as involving a set of processes organized hierarchically. At any given level of the process hierarchy, there is a mix of process elements. Remember, to implement a strategy, the strategy becomes a goal, which is achieved through objectives. Thus, objectives are nothing more than quantitative goal states that reflect a strategy. Objectives guide the formulation and the implementation of tactics. This perspective may be somewhat confusing to someone who has been taught in a nonintegrated manner. Those approaches tend to follow the traditional objective + strategy -+ tactic model for each and every level independent of the higher or lower level of a business entity. Conceptually, the only difference here is that the systems approach integrates throughout a system. Consequently, calling the element a strategy or objective is a function related to the particular level of the entire system from which the decision maker is viewing the process. Also, in this systems model, the selection of one or more subordinate process elements (elements of a strategic mix) is directly influenced by the selection of the corresponding superordinate process (strategy). Correspondingly, the selection of a specific strategy (main process at any given hierarchical level) is influenced by the implicit or explicit selection of the strategic mix (process elements). That is, the process hierarchy is designed using both top-down and bottom-up approaches. It does not matter which comes first-a given process (strategy) or its elements (strategic mix). The idea is that planning entails the selection of hierarchical processes that create means-end chains and that subordinate processes (means) are selected in such a way to achieve the goals of a superordinate process (end) at any level of the process hierarchy, and vice versa.

integration The state of combination or the process of combining into completeness and harmony. It is one of the hallmarks of an on-demand business, and one of the four characteristics of the ondemand operating environment.

means-end chains Conceptual frameworks for advertising stracgy that are used to link message elements to consumers' personal values. The standard linkages will move from the attributes presented to benefits sought by the consumer, which are then leveraged to impact personal values of the individual.

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Part One Overview

: Corporate : Decisions

Marketing Decisions

: : :
Figure 4-1

Marketing Communications Decisions

The Marketing Communications Systems at Large

Applying the process hierarchy to marketing communications, the marketing communications manager has to, first and foremost, identify all superordinate processes of marketing communications. There are two types of superordnate processes in marketing communications. These are processes related to the corporate level and, next in line, processes related to the marketing level (see Figure 4-1). Thus, at the corporate level, a given corporate strategy is implemented through a corporate mix (process elements at that level). The elements of the corporate mix may be viewed as organizational functions related t o research and development (R&D), engineering, manufacturing, finance, accounting, personnel, and marketing. More sp%cifically,the traditional corporate strategies that managers typically choose from include grow, maintain position, harvest, innovate, and divest. These corporatelevel strategies are popular and commoilly used. A corporate strategy is implemented through the corporate mix. The corporate mix here is viewed as involving the traditional functional units of an organization ( R 8 m , engineering, manufacturing, marketing, accounting, finance, employee relations, insurance, legal, etc.). Thus, a corporate strategy tends to configure the corporate mix in such a way that certain

Chapter Four A Systems Model for Integrated Marketing Communications

elements of the corporate mix are emphasized. For example, a growth strategy dicbe tates that en~phasis placed on marketing because marketing most effectively communicates the product's benefits t o new consumers in new market^.^ In contrast, an innovation strategy places more emphasis o n the working dynamics of R&D and engineering, a divestment strategy places the emphasis on the finance element of the corporate mix, and so on. The implementation o f any corporate strategy necessitates the articulation of specific objectives. These objectives guide the formulation of the selected corporate strategy. For example, a growth strategy is usually articulated in terms of increases in sales and markct share and is stated as corporate objectives. A maintain-position strategy is typically articulated in terms of maintenance of sales and market share. A harvest strategy, o n the other hand, is typically expressed as maximization of profit. An innovation strategy aims for a certain level of sales. Finally, a divestment strategy typically calls for increases in cash flow. The model acknowledges four typical marketing strategies. These are strategic product focus, rtrategic price focus, rtrategzc place focus, and strategic prospects focus. Each of these strategies is described in terms of several positioning approaches. For example, the strategic product focus can be accomplished through positioning by product class, product attribute, intangible factor, competitors, and country of origin. The strategic price focus can be accomplished through positioning by relative price and positioning by low price. The stratcgic placr focus can be accomplished by positioning through brand-distributor tie-in, distributor location, and distributor serviceability. Finally, strategic prospects focus is operationalized through positioning by celebrity/spokesperson, lifestyle/personality, customer benefits, user/customer image, and use/application. Of course the implementation of any o f the aforementioned marketing strategies is predicated o n the notion that the market is already segmented and a specific consumer segment is targeted. Any of the aforementioned marketing strategies is in turn implemented through the marketing mix (product, price, hstribution, and marketing communications). Also, just as each corporate strategy entails a different configuration of the corporate mix, similarly each marketing strategy entails a different configuration of the marketing mix. For example, positioning by product attribute is a marketing strategy that is effectively carried o u t through a host of product and marketing communications decisions, while positioning by relative price places more emphasis o n the price and promotion elements of the marketing mix than other elements. To carry o u t any marketing strategy through implementation of the marketing mix, the marketing communications manager has to identify the objectives that reflect the marketing strategy. For example, if a strategic product focus is selected and operationalized in terms o f positioning by product attribute, then the objective is t o establish a brand association with an important product attribute. Thus, marketing objectives are a direct hnction of the marketing strategy and its operatiorlalization in terms of positioning. With respect to marketing communications strategies and tactics, the model posits that the marketing communications manager usually has at least four strategic options. These are traditionally expressed as informative (thinker), affective (feeler), habit formation (doer), and self-satisfaction (reactor). These strategies are well known in advertising but can bc easily applied t o all forms of marketing communications. The informative (thinker) strategy is typically applied in relation to products that are highly involving and are of the thinking type. For thinking-type products, messages about the product are usually processed semantically, cognitively, or "rationallyn (left-brain processing). Thus, marketing communications programs for this strategy focus o n brand awareness and learning. That is, the objective here is to reach as many consumers as possible to create brand awareness and brand associations o r knowledge. The affective (feeler) strategy conlmonly applies to high-involvement products of the "feeling" type. This strategy is typically expressed in terms o f desired increases in b r a n d preference, attitude, or liking. The

growth strateby A corporate strategy that guides the corporate executive to set corporate objectives in terms of increases in sales and markct share. The aim here is to expand the market by going after ncw prospects and/or encouraging customers to purchase more. innovation strateg A corporatc strategy that guides the corporate executive to set corporate objectives in terms of increases in sales. The aim here is to develop a new product to increase sales. divrstment strateg A corporate strategy that guides the corporate executive to set corporate objectives in terms of cash flow. The focus here is to generate necdcd cash flow by sclling off the firm's least prosperous organizational entities. Ilarvest strategy A corporate strateby that guides the corporate executive to set corporate objectives in terms of maximizing profit. The intent here is to stop investing and making improvements and thus reduce costs of doing business. Therefore., orofit maximization can be achieved through cost reduction.

brand association A marketing goal. Thc tcrm is used interchangeably with tcrms such as brand equity, brand image,and brand knomled~e. describes a It desirable situation in which target consumers associate the brand with desirable features, events, and/or people. informative (thinker) strategy A marketing communications strategy that guides the marketing communications manager to providc target consumers with information about the firm's brand-that is, to educate consumers about the product costs and/or benefits.

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Part One Overview

brand awareness (see p. 7 7 ) A marketing communications goal. It describes a situation in which target consumers recognize or recall the brand name as related to a product category. affective (feeler) strategy (see p. 7 7 ) A marketing communications strategy that guides the marketing communications manager to elicit an affective response, a feeling that helps build a positive attitude toward the firm's brand. The focus here is on feelings, much more so than learning or inducing purchase. brand preference (see p. 7 7 ) A marketing communications goal. It describes a desirable situation in which target consumers recognize the firm's brand as preferable to competitor brands. habit-formation (doer) strategy A marketing communications strategy that guides the marketing communications manager to induce purchase or an overt behavioral response. The focus here is on inducing action. brand trial A marketing communications goal. It describes a desirable situation in which target consumers have psychologically committed themselves to trying the firm's brand. brand purchase A marketing communications goal. It describes a desirable situation in which target consumers have actually purchased the firm's brand. self-satisfaction (reactor) strategy A marketing communications strategy that guides the marketing communications manager to induce purchase. That is, the focus here is on inducing action, whch in turn sparks certain positive feelings for the brand.

habit-formation (doer) strategy applies to low-involvement products that are of the "thinlung" type. The objectives are usually stated in terms of brand trial o r brand purchase and brand learning. Finally, the self-satisfaction (reactor) strategy typically applies t o low-involvement products that are of the "feeling" type. The objectives are articulated in terms of brand trial or purchase and attitude. The implementation of any marketing communications strategy is done through the marketing communications mix-advertising, sales promotion, reseller support, direct marketing, public relations, and word-of-mouth commu_nications. Also, justas corporate and marketing strategies dictate the configurations of the corporate and marketing mix, respectively, marketing communications strategy guides the marketing manager t o work with certain elements of the communications mix and not others. For example, the informative (thinker) strategy can be effectively implemented through print advertising, certain forms of public relations (such as the press release), certain forms of reseller support programs (such as trade shows), and word-of-mouth communications (such as the use of referrals). A self-satisfaction (reactor) strategy can be effectively implemented through outdoor advertising, sales promotion (such as the use of premiums and contests and sweepstakes), and direct marketing (such as selling parties and teleshopping).

4-4 Budgeting
Allocating resources t o the elements of the strategic mix is, in essence, a budgeting decision. Such decisions, t o begin with, need to be based o n solid market information regarding the target market of interest. As SMC Marketplace Watch 4-2 reveals, data o n the market's behavior and use of information sources can help direct resources where they are most effective given their strategy. The manager must decide what resources are needed t o implement the selected strategy and its respective strategic mix. For example, given the decision t o advertise the product through Internet advertising, the marketing communications manager determines the amount of money needed t o launch an Internet advertising campaign t o achieve the goal of the marketing communications strategy, possibly t o achieve a certain level of knowledge about the benefits of a brand. This method is referred t o as the buildup approach commonly used in advertising (sometimes also referred t o as the objectivetask method). The buildup method can be used effectively to find out the costs of the marketing communications programs needed to achieve the marketing communications objectives. Then, the manager sums up the total costs related t o the implementation of these subordinate tasks to derive the required budget. O f course, this method of allocating marketing communications resources is predicated upon the assumption that each task or tactic is effectively designed to meet higher-order objectives.

4-5 Setting Objectives

Setting objectives is an organizational task involving three key processes: (1) identification of one o r more objective dimensions, ( 2 ) identification of the measures used to gauge outcomes related t o each objective, and ( 3 ) identification of the desired level and time frame associated with each objective dimension. Since this is an introduction t o the model, we will discuss how marketing communications managers go about identifjing objective dimensions that reflect the selected strategies. The other remaining processes will be discussed in some detail in the following chapters. The marketing communications manager tries to select appropriate objectives related t o each strategy at the three hierarchical levels (corporate, marketing, and

B%d~et Allocation and Monitorin.

A study by cornscore Networks showed that Internet yellow pages (M')drew customers much more ready to buy and spend more money than search engines like Google and Yahoo! local-search services. The survey showed that consumers who used online yellow pages directories to locate retailers in their local area only did five searches before purchase, while those on Google and Yahoo! did eight. This data can be interpreted to mean that yellow page consumers were nearer to the actual transaction. Most of the major search engines like Google, Yahoo!, MSN, America Online, and AskJeeves upgraded local-search systems to target in on the local markets all across the United States. These upgrades have really heated up the competition for local-market consumers. Head-to-head comparisons yield pros and cons to both search engines and the yellow pages. Search engines offer a lot of new technology like mapping routes to retail businesses. The consumer perceptions of Google and others lead them to think of those engines as the way to "search for anything" on the Internet. The yellow pages, though, have a long history of being the "go to" place for locating retail for consumers, and they have a sales force familiar with the local retail market to back it up. For a business that has routinely bought advertisements in the yellow pages every year, going to buy that advertisement online as well may not be a difficult readjustment in thinking and spending. The survey data showed that online, IYP consumers spent on average between 5 percent and 1 7 percent more than they did on the search engines in the product category of ths search. These IYP users also were more likely to visit the actual store, and they spent between 13 percent and 1 7 percent more there. Some suggestions gleaned from the data are that advertisements in the online yellow pages may want to focus on facilitating the transaction at the store by using such tactical things as special promotions and coupons. Since the people are closer to the sale point, they may just need a little push to get them to complete the sale. Where the online search engines of Google and Yahoo! performed best were for those searches that are considered by consumers to have more of an online presence to them. The consumers who were using the local-search engines were more likely to visit entertainment and straight information sites, like community and gaming sites. Kids and teen sites also showed higher access possibly due to a higher interaction with the web than with traditional yellow pages by the younger user. The data were derived from a market research firm hired by the Yellow Pages Association, but research was done independently of the association. The data were gathered in 2004 from the association's panel of 1.5 million consumers.
SMC Quicklink

YellowPages.com http://www.yellowpages.com/lndex.aspx

Source: Adapted from Kris Oser, "Online Yellow Pages Users Buy Quicker and Spend More," Advertising &e, April 25,2005, http://adage.com/news.crns?newsId=44859 (accessed

April 26,2005).

marketing communications). The selected objective dimensions have to reflect the essence of the selected strategies. Remember that the corporate strategies are: grow, maintain position, harvest, imovate, and divest. The growth strategy usually entails the use of sales and market share objectives. That is, the marketing communications manager may translate the corporate vision of growth in a certain market into a marked increase in sales and market share in the specified market. Similarly, the corporate vision of maintaining position may translate into maintenance of current levels of sales and market share. In contrast, a harvest strategy may entail different objective dimensions altogether. The apdropriate objective dimension for a harvest strategy is profit. Here the objective is to increase or maximize profit, not necessarily through increases in sales and market share. A harvest strategy usually signals the manager to be cost-efficient and to generate profit through cost reductions. The objective dimension for an innovation strategy is only sales. New products that are launched may not have competitors; therefore, market share is not an appropriate objective. Profit is also not an objective because new products are expected to be in the red for some time. Finally, the divestment strategy entails a cash flow objective.

buildup approach (see p. 78)

A method of building up the

expenditure levels of various tasks to help establish an advertising budget. budget (see p. 78) The amount of monetary resources allocated to implement rertain tactics (or a course of action).

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Part One Overview

Most firms divest strategic business units (SBUs) that are continuously losing sales, market share, and profit. The goal in divestment is to increase cash flow. At the marketing level, objectives are selected in drect correspondence with the selected positioning strategy. AU objectives at this level relate t o brand equity (i.e., brand associations). For example, positioning by product attribute entails creating or reinforcing a brand association with an important product attribute (usually an attribute that consumers consider when making decisions); positioning by customer benefit entails creating or reinforcing a brand association with an important customer benefit (usually a benefit that is an important criterion in the consumer purchase decision); and SO on. At the marketing commzrnications level, objectives are selected as a direct function of marketing communications strategies-informative (thinker), affective (feeler), habit formation (doer), and self-satisfaction (reactor). Based o n these strategies, marketing communications objectives are typically articulated in terms of brand awareness, learning, attitude (or liking), trial (or purchase), and repeat purchase over an extended time frame. The informative (thinker) strategy entails a learn +feel + do sequence. That is, brand awareness and learning objectives are considered the most important in the initial phase of the campaign. Brand attitude is considered the most important objective in the second phase of the campaign, while brand trial or purchase is considered the most important in the last phase of the campaign. The affective Cfeeler) strategy entails afeel+ learn + d o sequence. That is, the initial phase of the marketing communications campaign should emphasize establishing brand liking. The second phase should emphasize brand associations, while the last phase of the campaign should emphasize brand trial and purchase. The habitformation (doer) strategy reflects a do + learn --t feel sequence. That is, the initial phase of the campaign should attempt t o induce target consumers to buy the product on a trial basis. The second phase of the campaign tries t o educate consumers about the product benefits-brand associations-while the third phase of the campaign concentrates on establishing good feelings about the product-brand lilung. Finally, the self-satisfaction (reactor) strategy entails a do +feel + learn sequence. That is, the initial phase of the campaign should emphasize brand trial and purchase. The second phase of the campaign focuses on establishing good feelings toward the brand, while the third phase concentrates o n brand learning. For example, a communications campaign of a national pizza restaurant called Roni's has pizza places o n college campuses throughout the United States. The marketing communications manager targets freshman students by directing messages that speak to the freshman students at the beginning of every school year, changing the nature of the message in the middle part of the school year and changing again during thc last part of the school year. The idea is to guide freshman students through a sequence of psychological processing (any sequence such as learn +feel + do, feel + learn + do, do + learn + feel, or do + feel + learn). Doing so will ensure that these students will be able t o learn about the product benefits, establish good feelings for it, and try it at least once. A freshman student having learned about the pizza, established good feelings about the pizza, and tried it at least once is likely to buy it repeatedly (repeat) during the next 3 years in college. The questions then are: What marketing communications strategy is most appropriate for Roni's Pizza? and How does the marketing communications manager set objectives varying in time? Table 4-1 shows examples of marketing communications objectives that reflect the four different strategies. Note from Table 4-1 how the desired level of each communications objective changes as a direct function of the marketing communications strategy. If the manager chooses an informative (thinker) strategy, this leads the manager to initiate the campaign using educational messages. Thus, during the first 3 months of the academic year, Roni's marketing communications manager may expect that 80 percent of the freshman students should learn about the benefits of Roni's Pizza, 20 percent should be able to form a positive attitude toward Roni's Pizza, and 10 percent

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Marketing Communications Objectives as a Direct Function of Marketing Communications Strategy

I
I

1
i

i
i

Marketing Communications Strategy Informative (Thinker)Strategy First 3 months Second 3 months Third 3 months

Brand Learning

Brand Liking

Brand Purchase

(Learn)

(Feel) -

(Do1

)1 (Learn i feel -- do)

1

80%

20%

10%

1 Affective (FeelerjStrategy

1
/
1
j

(Feel--r learn 4 do) First 3 months Second 3 months Third 3 months Habit-Formation (Doer)Strategy feel) First 3 months Second 3 months Third 3 months

20% 50% 60/0

80% 90% 95%

10% 20% 50%

I (Do -, learn

20% 50% 60%

10% 20% 50%

Self-Satisfaction (Reactor) Strategy (Do4 feel -- learn) First 3 months Second 3 months Third 3 months

10% 20% 50%

20%
50% 60%

Note:The first 3, second 3, and third 3 months refer to a 9-month markeling commun~cations campaign. The percentages in the table refer to quantitative goals. For example, if Me marketing communications manager has decided to use an informative (thinker) strategy, then the first 3 months of the campaign should strive to establish awareness and learning in the minds of 80 percent of the target market, establish positive feelings toward the brand in 20 percent of the target market, and entice 10 percent of the target markel to purchase the brand on a trial basis.

should have tried it. Note that the 8 0 percent brand learning objective is a goal that reflects the importance placed o n that goal compared to brand liking and brand purchase. The next 3 months, around 1 0 percent more of the freshman students are expected to be educated about Roni's Pizza (to a total of 9 0 percent); but note that the emphasis is now placed on the second component of the hierarchy of effectsthe feel component. Here the goal is established at 50 percent. The underlying assumption is that consumers are now ready to establish an attitude toward Roni's Pizza, after being educated about its benefits the first 3 months of the academic year. Thus, the nature of the message changes in tone, from that of cognitive to affective. This shift underscores the notion that brand attitude develops after brand learning (learn -t feel). The third 3 months of the campaign focuses on brand purchase. Here the goal is established at 50 percent, that is, 50 percent of the freshman students should have tried Roni's Pizza at least once. The us? of a coupon similar to that in Exhibit 4-1 may be the last piece of the plan to achieve that level of trial. Again, this reflects the notion that consumers are likely to purchase the product after feeling good about it Cfee1-t do). Note how objectives pertaining t o brand learning, liking, and purchase dramatically change with other marketing communications strategiesthe affective (feeler) strategy, the habit-formation (doer) strategy, and the selfsatisfaction (reactor) strategy. The challenge here is t o identify the appropriate objectives that are consistent with the selected strategy and its strategic mix. Therefore, the point to remember is: Select appropriate objectives that closely match the selected strategy and its strate@ mix.

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Part One Overview

Exhibit 4-1 Domino's Pizza

This is an example of an advertisement that includes coupons to facilitate purchase behavior.
Sourcc: O Used by permission of Domino's Pizza LLC.

4-6 Monitoring and Control

The control function involves the use of a feedback mechanism. A feedback mechanism generates a stress signal when a specific measured outcome is significantly below the stated objective. Negative feedback can occur at the corporate level, the marketing level, and/or the marketing communications level. Negative deviations observed at any hierarchical level necessitate corrective action. Corrective action may take the form of changng the strategy and/or tactics, changing the budget, and/or changing the stated objectives. For example, a communications objective may be a 50 percent increase in brand awareness as measured by a brand-recognition method 6 months from the launch of the campaign. After 6 months, the marketing communications manager assesses the outcome using the designated method and finds out that brand awareness only inched up 10 percent. That is, a negative deviation of forty points from the goal was detected. Significant negative deviations "raise red flags" and motivate the manager t o make adjustments. These adjustments may involve one or more of the following:

1. Change the strategy and corresponding tactics. For example, through negative feedback, the marketing communications manager realizes that perhaps the informative (thinker) strategy is not the best strategy; perhaps an affective (feeler) strategy may have been more effective. Thus, based o n feedback, the marketing communications manager develops a new communications campaign that is consistent with an affective (feeler) strategy. 2. Change the budget. For example, through negative feedback, the marketing comn~unications manager may realize that the amount of money budgeted t o implement the strategic mix of the informative (thinker) strategy is not adequate; more money is needed.

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3.

Change the objective. For example, expecting a 50 percent increase in brand awareness may not be realistic, perhaps because the marketing communications manager has failed to take into account certain conditions that are detrimental t o the communications campaign. Thus, the marketing communications manager may lower the desired level t o 40 percent in the planning of the next campaign.

Failure to meet objectives at either the marketing o r the corporate 'level also requires the marketing communications manager t o take similar corrective action, that is, change marketing or corporate strategy and/or tactics, change resource allocation at either the marketing or corporate level, and/or change the stated objectives t o align them with actual performance.

demographics The characteristics of people and population segments, especially when used to identi@ consumer markets. Popular demographics used in media planning and buying typically include gender, age, household income, education levels, household size, and ethnicity. psychographics While demographics are objective characteristics of a population, psychographics are subjective lifestyle psychological characteristics that are based on consumers' responses to questions regarding their activities, interests, and opinions (AIO). These A10 variables are usually combined with demographics to get a more complete picture of consumer market segment types. conjoint .analysis A multivariate statistical technique that is used by marketers to assess the consumer's relative importance and utility of levels of various attributes that a product/ service possesses. muitiattribute attitude models Theoretical models used by marketers that view attitudes as being comprised of a number of attributes (dimensions)upon which consumers build up to a total attitude. The models generally include both attribute importance and a belief regarding whether or not the brand/product/service being evaluated possesses the specific attribute. The consumer's complete attitude is then a summation of the crossproducts of these importance and belief components. An example would be A, = C B, ' E, where Al is the attitude toward the brand, Bi is the belief regarding performance on the brand attribute being evaluated, and Ei is the importance to the consumer of the attribute being evaluated regarding the brand.

4-7 Analysis and Planning

The marketing communications manager gathers much information, ailalyzes this information, and makes decisions at the corporate, marketing, and marketing communications level. These decisions involve strategy selection, setting objectives, and allocating resources. Analysis and planning facilitate decision making by providing the marketing manager with relevant information. 4-7a Strategy Selection Remember that the marketing communications manager may be directly or indirectly involved with selecting (or changing) strategies at the corporate, marketing, and marketing communications levels. Also remember that all strategies and tactics are formulated in relation t o a specific SBU. At the corporate level, optional strategies are t o grow, maintain position, harvest, innovate, and divest. At the marketing level, optional strategies include differentiation, cost leadership, and focus. At the marketing communications level, optional strategies are informative (thinker), affective (feeler), habit formation (doer), and self-satisfaction (reactor). How does the marketing communications manager select the best strategy at each level? The marketing communications manager uses situation analysis. At the corporate level, situation analysis is conducted through the use of a strategy-selection model such as the Boston Consulting Group (BCG) Matrix or the Multifactor Portfolio Matrix. These models direct the manager t o gather specific information such as market share and market growth t o assess the strengths and weaknesses of the SBU in question. For example, knowing that the SBU has a low market share but is in a high-growth market may lead the manager t o select a growth strategy. This selection of corporate strategy is a direct logical deduction of the BCG Matrix. At the marketing level, the selection of a positioning strategy is facilitated by situation analysis. The manager gathers information about a host of factors from customer demographics and psychographics, consumers' perception of the brand in relation t o competitor brands, consumers' perception of the ideal product, and consumers' decision-making criteria, among others. There are many positioning models-for example, perceptual maps, means-end chains, conjoint attitude models. All of these models are designed analysis, and multiattribu~e t o help marketing communications managers select an optimal positioning for the brand in question. At the marketing communications level, the manager has t o select one or more strategies from the following optional strategies: informative (thinker), affective (feeler), habit formation (doer), and self-satisfaction (reactor). In doing so, the manager gathers information about many factors that can facilitate strategy selection. Two factors commonly used in situation analysis are product involvement and product type (thinking versus feeling). For instance, if consumers are likely to be highly

Part One Overview

involved with a thinking-type product, they may be highly motivated t o seek information and learn about the product and alternative brands. Thus, an informative (thinker) strategy may be best. 4-7b Setting Objectives The marketing communications manager has to be involved drectly or indirectly in the setting of corporate, marketing, and marketing communications objectives. Situation_ analysis is used to assist in this endeavor. At the corporate level, the objectives are usually stated in terms of sales, market share, profit, and cash flow. Each strategy has its own objective dunensions. Specifically, the goal of the growth strategy is usually articulated in terms of sales and market share: maintain position in terms of sales and market share, harvest to increase profits, innovate to stimulate sales, and divest to raise cash flow. The desired level of the selected objective dimension is determined by information obtained through situation analysis. The manager relies heavily o n information regarding the firm's strengths and weaknesses and the competition to set a desired level of the selected objective. For example, the manager decides t o increase sales by 50 percent within the next year because the product is undergoing a radical improvement (innovation strategy) and the competition is not expected t o develop a comparable improvement. At the marketing level, the manager may rely heavily o n information regarding the norm of the brand association measure. Different methods used to measure brand association may have different norms. In addtion t o the norms of the measure, the manager may conduct a consumer survey t o measure the level of brand association that has been achieved so far and to determine what can be achieved in light of the strengths and weaknesses of the firm's communications campaign and the competition. The final objective may be stated as, "Increase brand association with . . . by . . . percent in the next . . . months." At the marketing communications level, the manager may rely heavily on the norm of the measure pertaining to the selected objective dimension (brand awareness, brand association, brand preference, brand trial or purchase, and repeat purchase). Again using a consumer survey, the manager may find out what the current level is in relation t o the selected objective dimension (e.g., current level of brand awareness is 30 percent). Knowing something about the competition, the firm's skills and capabilities, and anticipated changes in the marketplace and within the firm, the manager may be in a position t o set the desired level of the selected objective (e.g., "Increase brand awareness by . . . percent in the next . . . months."). 4-7c Budgeting The marketing communications manager is likely t o be directly or indirectly involved in determining the marketing communications budget. In setting the budget using the buildup method (objective-and-task method), the manager gathers much information about the cost of the various marketing communications tasks. As a matter of fact, every marketing communications manager has t o have an information database about the costs of using every possible marketing communications tool, especially ones that are more frequently used than others, and the manager must update this information periodically. This is imperative if the manager uses the buildup method t o determine the budget needed t o accomplish various objectives. The use of the buildup method in determining a prefinal marketing communications budget probably offers the most desirable method in the context o f a systems approach. The final marketing communications budget is adjusted as a direct h n c tion of analysis and planning. That is, the manager takes into account factors such as the firm's past expenditures on marketing comn~unications,past and anticipated expenditures by key competitors, average marketing communications expenditures by the industry at large, current and forecasted changes in the marketplace, and anticipated changes within the firm. Information about these factors should help the marketing communications manager adjust the budget. Thus, a final budget is developed.

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4-8 Ma.rketing Communications Integration

The true "integration" of marketing communications can only be achieved by ensuring strong links among the various decision processes made at the corporate, marketing, and marketing communications levels. Lack of integration may o,Ccur at any one or combination of system links. The links are between Strategy, objectives, and tactics Strategy-objectives-tactics and budget Monitoring and control Monitoring-control and strategy-objectives-tactics Monitoring-control and objectives Monitoring-control and budget Analysis and planning Analysis-planning and strategy-objectives-tactics Analysis-planning and objectives Analysis-planning and budget An examination of one of these system links may help in seeing how integration works in terms of one of these links. Let us focus on the first link-the link between strategy, objectives, and tactics. Suppose the corporate strategy is determined t o be "maintain position." This may be due to the realization that competition is becoming fierce and the best that the firm can d o is t o defend the current market position. However, the corporate objective is stated as "increase market share by 5 percent in the next quarter." This corporate objective is certainly not consistent with the corporate strategy of "maintain position," that is, there is no link between corporate strategy and corporate objective. To exacerbate the situation, suppose that the CEO instructed all departments t o implement a drastic cost-cutting measure of 10 percent. Cost cutting is a corporate tactic that is supposed to have been guided by a "harvest" strategy, not a "maintain position" strategy. This is because a "harvest" strategy is most effective when the product is in the decline stages of its life cycle and the firm cannot make further improvements to the product t o offset the competition. In thls situation, cost cutting becomes important t o maximize profitability before "the product is pronounced dead." Again, lack of consistency between strategy and tactics means syrtem breakdown--or, specifically, a breakdown of an important link in the system. It is only when the system is considered as a whole that nonintegrative decisions can be identified and dealt with in a timely manner to head off such a system breakdown.

In this chapter, you are introduced t o a systems model of marketing communications. An effective system, by definition, is an integrated system. system integration can be achieved through ensuring that the processes are integrated hierarchically, that the objectives of each process are consistent with the selected process elements, that resources are allocated in a manner consistent with the selected processes and their corresponding objectives, that performance is monitored against the objectives, and that control is continuously exerted throughout the process hierarchy. How the model works is described in a cursory fashion. Strategies and tactics are formulated at the corpo-

rate, marketing, and marketing communications levels. Objectives are set in direct relation to corporate, marketing, and marketing communications strategies. Determining how to allocate resources to achieve an effective marketing communications budget within the systems model is discussed. The use of an effective method-the buildup method of a budget-is introduced. Monitoring and control and how these are done at the three different levels of the system are brietly addressed. Finally, the kind of analysis and planning that marketing communications managers perform to select strategies, set objectives, and allocate resources at the three different levels are discussed.

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Part One Overview

Assume you are a marketer for a large copy and document reproduction business with a number of retail shops in a large metropolitan area and you re&ze that you need t o launch an aggressive marketing communications campaign. You have recently bought all new digital printing equipment for your hsiness. Digital printing is different from offset printing in that it can print directly from a computer disc and print only as many copies as needed-no more, n o less. You also have a great deal of sunk cost in state-of-the-art offset printing equipment. Offset printing has the advantage of economies of scale. That is, the more copies one prints, the less cost per unit. In contrast, hgital printing has the advantage of economies of scope. That is, for less cost, the consumer can print a few copies and make changes and print more copies based on the altered version. Offset printing costs too much t o print a few copies and has little or n o flexibility to customize orders. 1. What d o you think is an effective marketing communications strategy for this copy and document reproduction business? Would you choose t o work with an informative (thinker) strategy? An affective (feeler) strategy? A habit-formation (doer) strategy? O r a self-satisfaction (reactor) strategy? Why? 2. What d o you think is an effective marketing strategy for this copy and document reproduction business? Select a marketing strategy and justify your selection.

3. What d o you think is an effective corporate strategy for thls copy and document reproduction shop? Would you select a growth strategy? A maintain position strategy? A harvest strategy? An innovation strategy? O r a divestment strategy?.Why? 4. Tie the selected marketing communications strategy with the superordinate strategies at the marketing and corporate levels. D o the strategies fit together? If they d o not fit, revise the strategies and make them fit. 5. Set corporate, marketing, and marketing comrnunications objectives that are directly deduced from the strategies. 6. What kind of monitoring would you recommend for the copy and document reproduction business? What kind of corrective action would you recommend to exert control and improve marketing communications performance? 7 . Think about analysis and planning. What information d o you think you need t o develop an effective strategy at the corporate level? At the marketing level? At the marketing communications level? 8. What information d o you think you need t o set effective objectives at the corporate level? At the marketing level? At the marketing communications level? 9. H o w would you g o about determining a marketing communications budget for the copy and document reproduction business? What information d o you dunk you need t o determine an optimal budget?
'

Note: You can find the correct answers t o these questions by taking the quiz and then submitting your answers in the Online Ehtion. The program will automatically score your submission. If you miss a question, the program will provide the correct answer, a rationale for the answer, and the section numberin the chapter where the topic is discussed.

1. All marketing communications processes are structured hierarchically. Which of the following processes would one find at the top? ,. a. processes related t o the marketing department level b. processes related t o the marketing communications level c. processes related t o the corporate level d. processes related t o each element of the marketing communications mix

2. Which model of I M C posits that all organizational processes are structured hierarchically? a. systems b. strategic c. cognitive d. analytical 3. In the systems model of IMC, what is a process at a superordinate level usually referred t o as? a. action plan b. tactic c. strategy d. strategic mix

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4. Which of the following is an incorrect observation? a. A tactic becomes an objective once we move down the hierarchy of processes and focus on that tactic. b. T o implement a strategy, the strategy becomes a goal, which is achieved through objectives. c. Objectives are quantitative goal states that reflect a strategy. d. Objectives guide the formulation and the implementation of tactics. 5. Identify the corporate strategy that is typically expressed as maximization of profit. a. b. c. d. divestment harvest innovation maintain position

6. Which marketing communications strategy can be applied t o low-involvement products that are of the "thinking" type? a. informative (thinker) b. self-satisfaction (reactor) c. affective (feeler) d. habit formation (doer) 7. Which of the following strategies can be effectively implemented through outdoor advertising, sales promotion (such as the use of premiums and contests and sweepstakes), and direct marketing? a. b. c. d. informative (thinker) self-satisfaction (reactor) affective (feeler) habit formation (doer)

8. Given the decision t o advertise the product through Internet advertising, the marketing communications manager of a company determines the amount of money needed t o launch an Internet advertising campaign to achieve the goal of the marketing communications strategy. Which approach is he o r she using? a. plan-ahead strategy b. harvest strategy c. subjective-task method d . buildup approach 9 . Which of the following strategies entails a feel + learn + do sequence? a. informative (thinker) b. self-satisfaction (reactor) c. affective (feeler) d . habit formation (doer) 10. What is conducted at the corporate level using a strategy selection model such as the Boston Consulting Group (BCG) Matrix o r the Multifactor Portfolio Matrix? a. perceptual analysis b. situation analysis c. conjoint analysis d. investment analysis

Yellow Pages versus Search Engines

You are the marketing communications director for a local restaurant. You would like a web presence that drives customers t o visit your restaurant when they are looking for a good place to eat in your town. Using your town as a search point, g o t o http:www.google.com and then g o t o http://www.yellowpages.com/Index.aspx. Conduct a search for the restaurant type of your choice. Which would be a better place t o make sure of a good web presence? Conduct the same kind of search using the two different methods, but assume you are the marketing director for a local car dealership.

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d

Belch, George E., and Michael A. Belch. 2001. Advertising and promotion: An integrated marketing ~~mmunicationsperspective. Ridge, IL: Irwin. Burr Gtchen, Phillip J., Don E. Schultz, IIchul Kim, Dongsub Han, and Tao Li. 2004. Will agencies ever

"get" (or understand) IMC? European Journal of Marketing (Bradford, England) 38 ( 11/12): 14-17. Kliatchko, Jerry. 2005. Towards a new definition of integrated marketing communications (IMC). International Journal of Advertising 2 4 (1): 7-34.

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Part One Overview

Kotler, Philip.2002. A framework for marketing management, 2nd ed. Englewood Cliffs, NJ: Prentice Hall. Park, C. W., and Gerald Zaltman. 1987. Marketing management. Hinsdale, IL: Dryden Press. Percy, Larry, John R. Rossiter, and Richard Elliott. 2002. Strate~ic advertising manacqement. Oxford, UK: Oxford University Press. ". Schultz, Don E., and Beth Barnes. 1994. Strategic advertising campabns, 4th ed. Chicago, IL: NTC/Contemporary Publishing Company. . 1999. Strategic brand communication campaigns, 5th ed. McGraw-Hill.

Schultz, Don E., Stanley I. Tannenbaum, and Robert F. Lauterborn. 1994. Integrated marketinp communications: Pulling it together and making it work. Lincolnwood (Chicago), IL: NTC Business Books. Thorson, Esther, and Jeri Moore, eds. 1996. Integrated communication: Synergy of persuasive voices. Mahwah, N J : Erlbaum. 1991. Integrated marketing Wang, P., and L. ~ e t r i s o ~ : communications and its potential effects on media planning. Journal of Media Planning (Fall): 11-17. Weilbacher, William M. 2001. Point of view: Does advertising cause a "hierarchy of effects"? Journal of Advertising Research 4 1 (6): 19-26.

1. Cyndee hlillcr, "College Campaigns Get Low Scores," Alarketin~ News, May R, 1995, 1-2. 2. Note that our systems model starts out with a focus on a specific strategic business unit (SBU). Each firm can casily identifp its strategic husiness units bv dcvcloping a wo-dimensional matrix

in which all its products can be specified along one dimension and all markets specified along the other dimension. The starting point of the systems model is a specific SBU or a product/market unit. All decisions (corporate, marketing, and marketing communications) are then constrained to that SBU.