CONTENTS

NO.
1. 2.

SUBJECT
INTRODUCTION SIGNIFICANT CONCEPTS OF INTEGRATED MARKETING COMMUNICATIONS IMC Characteristic Element in IMC Advantages of IMC Disadvantages of IMC Barriers to IMC

PAGE
4 56 67 7 78 89 9 10 11 13 14 17 17 18 19 20 21 22 23 24

3. 4.

MARKETING COMMUNICATIONS MIX KEY STEPS INVOLVED IN INTEGRATED COMMUNICATION PLANNING The Planning Process of IMC

5. 6. 7. 8.

CONCLUSION CASE STUDY REFERENCES PRESENTATION SLIDE

INTEGRATED MARKETING COMMUNICATIONS

INTRODUCTION
Integrated Marketing Communications (IMC) is a concept that has caused considerable debate since its theoretical inception in the late 1980s. It is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. A heated debate has emerged, however, over the merits and validity of the IMC concept. Proponents of the concept suggest that the concept represents a revolutionary way to organize and enhance their marketing efforts and build brand equity (Duncan, 2002; Ogden, 1998; Schultz, 1996; Schultz et al., 1993). Some even suggest that organizations employing an IMC strategy can gain competitive advantage (Caywood & Ewing, 1991; Gorning, 1994). Critics of IMC, however, have charged that the concept is simply a management fashion (Cornelissen & Lock, 2000: 10) that lacks a solid theoretical base. Others contend that it suffers from ambiguity in terms of its definition and practice (Wolter, 1993), or that it simply reinvents existing marketing theory using different terminology (Spotts et al., 1998: 210). Some critics even go so far as to proclaim the death of the IMC concept (Drobis, 1998) because it has been misunderstood by so many practitioners and academics. It is indeed arguable whether integrated marketing communications is a truly new innovation in communications or an old idea revived through the intercession of modern technology. Despite nearly 20 years of debate most practitioners still see integrated marketing communications as an emerging discipline (Eagle and Kitchen 2000) rather than a fully formed concept.

SIGNIFICANT CONCEPTS OF INTEGRATED MARKETING COMMUNICATIONS

Integrated marketing communication is integration of all marketing tools, approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost. Generally marketing starts from "Marketing Mix". The concept includes online and offline marketing channels. The most often cited definition is that of the American association of Advertising Agencies (4As) formulated in 1989. This stated that integrated marketing communications was: A concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines such as general advertising, direct response, sales promotion and public relations and combine these disciplines to provide clarity, consistency and maximum communication impact
(Eagle and Kitchen 2000: 667)

This sees IMC as the process of using promotional tools in a unified way to create synergy (Semenik 2002) and, by taking a holistic view, as an approach that also ensures the continual consideration of brands contribution to and inclusion in each and every communication. Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent and compelling message about the organization and its brands. Consequently, integrated marketing communications is felt to be concerned with getting all of the various communications messages to work together in order to present a unified message.

Novak

and

Phelps

(1994)

suggested

that

integrated

marketing

communications was based on three conceptualizations: One-voice marketing communications: integration which creates a clear consistent image, position, message and/or theme across all marketing communications disciplines or tools.

Integrated communication: the creation of both brand image and a behavioural response that emanates directly from marketing communications material (e.g. adverts). Co-ordinating marketing communications: that associates

integration with the concepts of co-ordination of all marketing communication tools to produce a holistic campaign that both develops awareness and build brand image, at the same time evoking a behavioural response from target audiences. What Smith (1998) describes as wrapping communications around customers and helping them through the various stages of the buying process.

IMC CHARACTERISTICS
(i) IMC is comprehensive, coordinate and institution wide because it has its goal the communication of strategic messages. It must be able to draw on the full range of resources: people, budget and time. (ii) IMC focused on strategic communication, not merely promotion. Strategic communication involves careful listening. (iii) IMC has as its goal the transmission of mission-critical values and messages not simple slogan and themes, but enduring messages that represent the core values that grow directly from the companys mission and vision.

(iv)

IMC seeks to communicate in ways that target audiences notice, understand respond to. IMC recognizes that some audiences are strategic importance and that company must develop segment-based, often highly customized, messages that meet the needs of strategic audiences.

IMC is generally considered to be a philosophy or process related to strategically managing the all brand messages in a way that contributes to the building of strong brands. Authors Kitchen, Joanne and Tao suggest the IMC is the major communication development of the last decade, and that are a potential drivers of competitive advantage. The power of IMC is said to counter a range of changes in the marketing communication environment that are having an impact on the ability of companies to attract, retain and leverage customers.

ELEMENTS IN IMC
(i) (ii) (iii) (iv) Awareness of audiences information sources Understanding of audiences knowledge and beliefs Mix of promotional tools contributing to common goal Promotional effort coordinated to communicate a consistent message tailored to needs

ADVANTAGES OF IMC
The potential advantages of integrated marketing communications are as follows: The co-ordination of both creative application and production has obvious benefits in terms of cost and performance efficiencies. The increased control and co-ordination of brand-related messages

increases the overall synergy of communications even further and taken together, the impact should result in more effective communication. Reduces dependence on mass-media advertising, encourages

investigation of targeted mediums, heightens demands on agencies to multi-tasking and outsourcing and stimulates efforts to assess the return on investment (ROI) on organizational communications. Offers the potential of reducing the ambiguity of messages coming from organization and reducing duplication of effort such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together for briefings, creative sessions, tactical or strategic planning. reduces workload and subsequent stress levels. IMC wraps communications around customers and helps them move through the various stages of the buying process. This can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused and ultimately to make a purchase. The organization simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers. This relationship marketing cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage. IMC also increases profits through increased effectiveness. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the noise of over five hundred commercial messages which bombard customers each and every day. This

IMC makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.

DISADVANTAGES OF IMC
Every concept has its dark side. Among the potential disadvantages of IMC are: It encourages centralization (which may or may not be a good thing) and bureaucracy. Has the potential to dilute creative opportunities as a result. There is also danger in a strict uniformity of communication (although some authors support this) because this has the potential of boring the consumers because repeated message can lead to wearout. Doubts have also been raised about the ethical issues of intrusive campaigns, some of which hide under the mantle of permission marketing and whether the resultant (physical and mental) clutter is socially justified. Difficult to measure and evaluate effectively.

BARRIERS TO IMC
Although IMC can dramatically improve communication effectiveness and impact implementing the IMC process in an organization is not an easy task. Though the awareness about IMC is on the rise, implementation has been slow. The following barriers are some of the reasons why the implementation has been low:

Lack of Top Management Support Without top management support, its hard for any plan or project to be successful. Some of the managers still think that the marketing budget gets diluted and effectiveness suffers if multiple tools are employed or even fail to see that they can reach the target audience via multiple media channels (not just the traditional ones). Lack of Accurate Metrics As long as there will not be accurate metrics to measure marketing productivity, marketing expenditures in general will be seen by some CEOs as an expense that can be easily cut. Its even harder to measure the actual impact of a specific channel as part of the overall impact. Lack Of Manpower Small businesses do not usually have the manpower with cross-disciplinary skills to integrate their marketing communications. The implementation requires proper planning, redefining the scope of marketing communication, application of information technology and financial and strategic integration. Changes Needed In The Organization To implement the IMC process effectively, a company needs to follow certain guidelines. It should adopt a flexible organizational structure and change the mindset of the employees. It should adopt a customer centric strategy to design communication campaigns from the consumer perspective. A collaborative strategy is needed, that enables coordination and cooperation between various departments in the organization. This is sometimes easier said then done as rigid organizational structures (silos) are often infested with managers who protect both their budgets and their power base. Lack Of Theoretical And Practical Foundations Although there is a lot of information about IMC in general and IMC tools in particular, there is still not a standard procedure that can be followed. What should a

truly integrated marketing department look like? Should the PR department report to Marketing? Also, no more wild and wacky sales promotions unless they fit into the overall marketing communications strategy and so on. The practical aspects are still to be defined. Most of the barriers that relate to HR and organizational changes can be overcome by training the staff. There is an innate resistance to change in people but with proper change management, the anxiety and fear of change can be put aside. The lack of accurate metrics however, can not be easily overcome as getting accurate information is usually expensive and sometime not even available.

MARKETING COMMUNICATIONS MIX

The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives.

Personal Selling Advertising

Sales Promotion

Direct Marketing

Marketing Communicatio ns Mix

Public Relations

(i)

Advertising:

Any paid form of non-personal presentation and

promotion of ideas, goods or services by an identified sponsor. Reach large masses of geographically dispersed. Allows for repetition and targeting of audience. Builds awareness, image, positioning.


(ii)

Provides wide artistic possibilities. Can be expensive, impersonal, one-way. Media fragmentation makes finding large audience difficult.

Personal Selling: Personal presentation by the firms sales force for the purpose of making sales and building customer relationships. Personal, feedback. Builds preference, conviction, action. Suited to complex, higher priced products. Basis for building a buyer relationship. Most expensive on a per contact basis. Requires long-term commitment and ongoing management. flexible, two-way communication, provides direct

(iii)

Public Relation: Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events. News stories, features, press conferences, corporate website. Seen as more believable than advertising messages. More cost efficient. Can be difficult to control. Can be proactive and reactive. annual reports,

(iv)

Sales Promotion: Short-term inducement/incentives to encourage the purchase or sale of a product or service.

Coupons, rebates, samples, sweepstakes, contests, premiums, incentives. Used to attract attention. Provide incentive for trial or purchase. Generates results now versus later.


(v)

Effectiveness easier to track than advertising. May detract from brand equity and loyalty.

Direct Marketing: Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships the use of telephone, mail, fax, e-mail, the Internet and other tools to communicate directly with specific consumers. Involves sending an offer, announcement, reminder or other item to a person at a particular address. Permits high target-market selectivity. Personal and flexible. Easy to measure results.

Other communications elements with which promotion must be coordinated are: The product itself - Product communication, including brand name, design of packaging and trade-marks are all product cues which convey a message about the total product offering. Price - can communicate different things under varying circumstances, for instance conveying prestige appeal for those buyers who perceive that a high price is equal to quality and prestige. Place Which the products are to be found also has notable Retail stores have personalities that

communications value.

consumers associate with the products they sell. Products receive a halo effect from the outlets in which they can be found and two stores selling similar products can project entirely different product images. For example, a perfume sold through an upmarket store will have a much higher quality image than one sold through supermarkets.

KEY STEPS INVOLVED IN INTEGRATED COMMUNICATION PLANNING

Integrated means fits together where message is consistent across all channels and was generate leverage through repetition and multiple sources with the same message. Meanwhile, integrated communications response to fragmented mass markets and new technologies and allows promotions to be more targeted. There are a lot of definitions about what integrated communications planning is all about. Some have called it strategic communications planning, Still some call it consumer experience planning or communications channel planning communications architecture, or 360degree planning. consumer engagement planning. Key steps involved in integrated communication planning are as follows: PHASE 1: FORMATIVE RESEARCH

During the first phase the focus is on the preliminary work of communication planning, which is the need to gather information and analyze the situation. In three steps, the planner draws on existing information available to the organization and at the same time, creates a research program for gaining additional information needed to drive the decisions that will come later in the planning process. Step 1: Analyzing the Situation. Your analysis of the situation is the crucial beginning to the process. It is imperative that all involved-planner, clients, supervisor, key colleagues and the ultimate decision maker-are in solid agreement about the nature of the opportunity or obstacle to be addressed in this program. Step 2: Analyzing the Organization. This step involves a careful and candid look at three aspects of the organization: (a) (b) (c) Its internal environment (mission, performance and resources) Its public perception (reputation) Its external environment, (competitors and opponents, as well as supporters) Step 3: Analyzing the Publics. In this step, identify and analyze your key publics-the various groups of people who interact with your organization on the issue at hand. Strategic Planning for integrated communication provides an objective technique for setting priorities among the various publics, helping you select those most important on the particular issue being dealt with. This step includes an analysis of each public in terms of their wants, needs and expectations about the issue, their relationship to the organization, their involvement in communication and with various media, and a variety of social, economic, political, cultural and technological trends that may affect them. PHASE 2: STRATEGY

The second phase of the planning process, Strategy, deals with the heart of planning: making decisions dealing with the expected impact of the communication, as well as the nature of the communication itself. Step 4: Establishing Goals and Objectives. Focus on the ultimate position being sought for the organization and for the product or service. This step helps you develop clear, specific and measurable objectives that identify the organizations hoped-for impact on the awareness, acceptance and action of each key public. A good deal of attention is given to objectives dealing with acceptance of the message because this is the most crucial area for public relations and marketing communication strategists. Step 5: Formulating Action and Response Strategies. A range of actions is available to the organization, and in this step you consider what you might do in various situations. responses. Step 6: Designing Effective Communication. Step 6 deals with the various decisions about the message, such as the sources who will present the message to the key publics, the content of the message, its tone and style, verbal and nonverbal cues, and related issues. Lessons from research about persuasive communication and dialogue will be applied for the ultimate purpose of designing a message that reflects the information gained through Step 3. PHASE 3: TACTICS This section includes typologies of initiatives and

During the Tactics phase, various communication tools are considered and the visible elements of the communication plan are created. Step 7: Selecting Communication Tactics. This inventory deals with the various communication options. categories: (a) Face-to-face communication and opportunities for personal involvement Specifically, the planner considers four

(b) Organizational media (sometimes called controlled media) (c) News media (uncontrolled media) (d) Advertising and promotional media (another form of controlled media). While all of these tools can be used by any organization, not every tool is appropriate for each issue. packages the tactics into Following the menu review, the planner a cohesive communication program.

Step 8: Implementing the Strategic Plan. In Step 8, you develop budgets and schedules and otherwise prepare to implement the communication program. This step turns the raw ingredients identified in the previous step into a recipe for successful public relations and marketing communication. PHASE 4: EVALUATIVE RESEARCH

The final phase, Evaluative Research, deals with evaluation and assessment, enabling you to determine the degree to which the stated objectives have been met and thus to modify or continue the communication activities. Step 9: Evaluating the Strategic Plan. This is the final planning element, indicating specific methods for measuring the effectiveness of each recommended tactic in meeting the stated objectives.

The process of these steps is deliberate, and they must be taken in sequence. Careful planning leads to programs that are proactive and preventative, rather than to activities that are merely reactive and remedial. At the same time, the steps in this process are flexible enough to allow for constant monitoring, testing and adjusting as needed. A few practitioners may admit (somewhat guiltily) that they don't do much planning. If they are being honest, they'll tell you they know they've been lucky so far with their hunches. Perhaps they don't do formal planning because they don't have the time or because the environment is so unstable that all they can do is react. Some practitioners may tell you their bosses and

clients want action rather than planning (though such shortsighted bosses and clients usually don't remain in business very long). If you could observe how professionals work, however, you'd probably find that effective communication managers do plan. The good ones have learned how to build the research and planning components into their work and "sell" it to their clients and bosses.

THE PLANNING PROCESS OF IMC

The first step in the IMC planning process is to review the marketing plan and objectives. Before developing a promotional plan, markets must understand where the company (or the brand) has been-its current position in the market, where it intends to go, and how it plans to get there. Authors Belch G. & M. Belch presented that IMC planning model consists of: 1. Review of marketing plan (examine overall marketing plan and objectives, competitor analysis, role of advertising and promotion). 2. Analysis of promotional program situation (External and Internal analysis).

3.

Analysis of communication process (Analysis receivers response process, source, message, channel factors, establish communication goals and objectives.

4.

Budget determination (set tentative marketing communication budget, allocate budget).

5.

Develop Integrated Marketing Communication Process (Advertising, Direct marketing, Internet marketing, Sales promotion, Public Relations/Publicity, Personal selling).

6.

Integrate and implement marketing communication strategy (create and produce ads, purchase media time, space, design and implement promotional mix programs).

7.

Monitor, Evaluate and Control Integrated Marketing Communication Programs (take measures to control and adjust promotional strategies).

According to Duncan six steps of IMC planning process are: Identification the target audience, analyzing SWOT, determining the MC objectives, developing strategies and tactics, setting the budget and evaluating and evaluating the IMC program. Each methodology of IMC planning process needs to answer on three questions; what are our communication objectives? What is the brand attitude strategy? What do we want people to do as a result of our communication?

CONCLUSION
The term IMC gained fluency in the 1980s (Schultz, Tannenbaum & Lauterborn, 1993), driven by dramatic changes in the marketing and mass communications environments, although some argue that the concept emerged much earlier within the context of the marketing discipline (Hutton, 1996; Spotts et al., 1998). Regardless of its historical origins, by the year 2000, IMC was seen by many as a way to better manage the growing range

of marketing communications choices which were becoming available to marketers, including the Internet and sophisticated consumer databases (Duncan, 2002). Integrated marketing communications has emerged, therefore, for a number of reasons, some proactive and other reactive. Among the most powerful were in reaction to structural inadequacies of the industry and the realization by clients that their communication objectives could be achieved more effectively and efficiently. As integrated marketing communications pioneer Don E. Schultz (Schultz and Schultz 1998) has noted: integration just plain makes sense for those planning to succeed in the twenty-first century marketplace. Marketers, communicators and brand organizations simply have no choice. Even though the concept has been debated for a decade and research suggests a strong commitment on both the client and the agency side to integrated marketing communications, research has further revealed substantial differences in perception between the two groups (Engle and Kitchen 2000). On the one hand, clients perceive integrated marketing communications as a counter to the structural inadequacies of the communications industry as a whole and the means to rise above these and better meet their underlying objectives. As such, they essentially see integrated marketing communications as offering them a control they has previously lacked. Large agencies, on the other hand, argue that control and co-ordination should be left to them in their capacity as the dominant supplier. Neither perspective though seems to wholly achieve the ambitions of integrated marketing communications. Total integrated marketing communications is clearly only achievable when all external agencies, outsourcing providers and partners work together with the organization to deliver perceived consistency to customers in terms of the

promises given, the actions undertaken and in the overall customer experience. Sceptics, though, might question whether agencies can actually deliver these expectations. Inevitably there will need to be some level of trade-off between the expertise an agency can provide and the degree of integration it can achieve and no matter how agencies might develop or grow, the need to compromise will not disappear.

CASE STUDY
SKODA: BRIDGING THE PERCEPTION GAP

Formerly one of Europes leading car manufacturers, the Czechoslavakian car company Skoda, had seen the popularity off its brand drop dramatically after the Second World War. In the UK Skoda cars developed a reputation for poor quality and unreliability and by the time that Volkswagen took over the beleaguered company in the early 1990s, the brand had a major image problem. By the late 1990s, the company had one of the world most efficient car plants and was manufacturing cars which were on par with its competitors in terms of function, style and value for money. However the brand still retained its negative image and was generally being rejected by consumers. In 2000, Skoda launched a new integrated marketing strategy aimed at bridging the gap between image and reality. The strategy involved confronting consumers negative preconceptions head-on, with a common theme that was to link all marketing communication: We know what you think about Skoda, but think again. The task was to extend the target market beyond existing Skoda owners to a wider population, and convince them that Skoda had changed. With a limited annual marketing budget of only 4 million (a fraction of what rival car brands spend), it was important that all marketing communication worked synergistically for maximum effectiveness and cost efficiency. Whilst advertising would play a lead role, it was clear that public relations would be a major component of the campaign. The initial print advertisements featured the Skoda Fabia, and made brand statements which were accompanied with the strapline: The new Fabia, Its a Skoda. Honest. Subsequent commercials depicted prospective buyers fleeing showrooms in panic or throwing themselves out of the vehicle during a test drive, in fear or worry over the negative perceptions that surround the brand. Direct marketing also played an integral role. Care was taken to ensure that the creative idea, tone and style of Skodas advertising was consistent throughout. A mailing to cold prospects, comprised of a boxed Skoda badge

for recipients to fix to their existing car, enabling them to test drive the brand before purchase. In 2000, sales of Skoda grew by 33 per cent year on year in an otherwise flat car market. By 2002, the number of customers claiming they would never consider a Skoda had fallen from 60 per cent to 40 per cent. The new marketing communications strategy won advertising industry plaudits at a number of awards schemes including the D& AD, and a Gold in the IPA Effectiveness Awards.
Case study written by Nik Mahon, Faculty of Media, Arts and Society, Southampton Solent University (source: D&AD Creativity Works 2003)

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