INTEGRATED MARKETING COMMUNICATIONS AND THE ROLE OF E-MARKETING

Word Count: 2,331 words

TABLE OF CONTENTS

Introduction ........................................................................................................................... 3 E-Marketing: The Contemporary Marketing Communications Channel ...................... 5 Integrated Marketing Communications ............................................................................. 7 Academic View of IMC: Micro Perspectives .......................................................... 8 Practitioner View of IMC: Macro Perspectives ..................................................... 9 Coca-Colas 125-Year Celebration .................................................................................... 12 The Strategy .............................................................................................................. 12 The Tactics: E-Marketing Focus ............................................................................. 13 Recommendations and Conclusion ...................................................................................... 15 Appendix A ............................................................................................................................ 18 Appendix B ............................................................................................................................ 20 Appendix C ............................................................................................................................ 22 Appendix D ............................................................................................................................ 25 Appendix E ............................................................................................................................ 26 Appendix F ............................................................................................................................ 31 Bibliography .......................................................................................................................... 32

INTRODUCTION If marketing is the heart of a business, as many authors imply (Jobber&Fahy, 2009), marketing

communications are the limbs. They add meaning and value to the product or service offerings of a business.

In a world where more and more products are in the maturity stage of their lifecycle and thus at parity (Keller, 2001), effective marketing communication can help create points-of-differences. A myriad marketing communication channels are available today and form what marketers call the communication mix1. E-marketing is the most cotemporary and lucrative channel yet; however, it is incumbent on marketing managers to ensure that the voice of the brand is not lost amidst all these media. This is precisely why integrating the various marketing communications at a companys disposal is required.

With the primary objective of delivering competitive advantage by influencing consumers to choose ones own brand rather than the competitors (Shimp, 2007), Integrated Marketing Communications (IMC) works on the DRIP principle i.e. Differentiate, Re-enforce, Inform and Persuade (FillAssociates, 2011).

Coca Cola is a fine example of a truly market oriented company and one that appreciates the
1

A host of tools that might comprise a communication mix have been listed in Appendix A, along with further

considerations. 3

intricacies of IMC. Despite the challenges of its global footprint, it has demonstrated excellence in marketing communications since 1886. Interbrands2 global brand rankings have cansistently ranked Coca-Cola as the top global brand for more than a decade - a current brand value of $ 71,861 million is testament to its IMC success.

This report analyses their IMC program for the 125th anniversary celebrations with specific focus on e-marketing as an essential component of the communication mix.

A brand consultancy 4

E-MARKETING: THE CONTEMPORARY MARKETING COMMUNICATIONS CHANNEL In todays globalised society, marketers are required to create separate communications for a very diverse consumer base. Consumer types are also fast changing; for instance, unlike in present times, a decade ago one could easily predict the soft drink that a 42-year might opt for (Florin et al., 2007). 15% of the worlds 6.3 billion actively using the internet (CocaColaAnnualReport, 2010); Information Technology provides new communications avenues and opportunities in this context. In fact, E-marketing is touted as the (direct marketing) channel with the most potential to expand customer reach (Best, 2009). Its ability to reach out to a varied demographic, from the hipsters to the baby boomers; from the early adopters to the close seconds; and so on, is unparalleled.

When deconstructed, the channel is found to comprise of the following media3: websites,
3

Source: Authors own research Websites - A plethora of information exists at this one-stop-shop. Details like company information,

1.

brand imagery/message, brochures, presentations, webcasts, podcasts, online adverts, help & support functionality, contact us, and far more might all be found on the website alone.

2. 3. 4. 5. 6. 7.

Specialized Portals - An online TV channel, specific stakeholder support requirements, and the like E-Collaboration - Things like social media, online campaigns, online communities, etc. get covered Mobile Marketing - Mobile phone applications and SMS are innovative ways of marketing. E-Mail Marketing - Sending personalized emails to various stakeholders can go a long way in building Media Mentions and Online Partnerships - Enlistment/adverts on other sites, co-promotions, and the Search Engine Marketing (SEM) via Search Engine Optimisation (SEO)

might be hosted on dedicated sites or portals. under this banner.

loyalty and customer retention. like help build brand visibility.

specialized portals, e-collaboration and social media, mobile marketing, e-mail direct marketing, media mentions and online partnerships, and search engine marketing. E-marketing is particularly useful in achieving an integrated mix of marketing communications. It plays a pivotal role in many marketing oriented companies; Coca-Cola allocates approximately 20 30% of its marketing budget to this media (Costa, 2011).

Before one delves right into how e-marketing can and is being used within the companys integrated marketing communications program, it is advisable to consider the theory surrounding IMC.

INTEGRATED MARKETING COMMUNICATIONS As mentioned, with the changing marketing environment, there is a move towards integrating marketing communications. Among the many benefits that can be attributed to such integration, creative integrity, consistency of messages, and greater marketing precision are intuitive.

Several authors have written about the evolving concept and process that is IMC, and have used various approaches to analyzing it (eg: Duncan, Caywood&Newsom, 1993; Hartley&Pickton, 1999; Schultz&Schultz, 1998; Keller, 2001). Keller (2001) has perhaps provided the most representative definition4. He suggests that an Integrated Marketing Communications (IMC) program is one which involves the development, implementation, and evaluation of different marketing communication programs that use multiple communication options, wherein the design and execution of any one communication option reflects the nature and content of other options that also make up the program (Keller, 2001).

Research and practice, however, do not always agree in their applicability of IMC.

Schultz and Schultz (1998) have described a four-level transition process for IMC development within

organisations. These are, first, tactical co-ordination, then redefining scope of marketing communication, then application of information technology, and finally the financial and strategic aspects at the highest level. Picton and Hartley (1998) have proposed dimensions of integration, which include promotional mix, promotional mix with marketing mix, creative, intra-organisational, inter-organisational, information and database systems, target audience, corporate and unitised, and geographical. Keller (2001) has picked up on both views and concentrated on the tactical level identified by Schultz and Schultz (1998), and the promotional mix dimension suggested by Picton and Hartley (1998).

ACADEMIC VIEW OF IMC: MICRO PERSPECTIVES A rather informative model to study the concept of IMC is the Marketing Communication Tetrahedron (MCT). It explores the micro dimensions of IMC programs based on consumer behaviour theory.

The model represents four sets of factors that influence marketing communication effectiveness: consumers, communication, response and situation (Keller, 2001).

These are the micro perspectives of IMC programs; the model is illustrated below, with a detailed description in Appendix B.

Source: Adapted from Keller, 2001.

The implications of MCT are that the same communication may be processed differently depending on the characteristics of the consumer, the type of exposure situation, the extent and nature of competitive marketing communications, etc.
8

This fact is rooted in cognitive, social and consumer psychology (Keller, 2001). PRACTITIONER VIEW OF IMC: MACRO PERSPECTIVES While the MCT provides research insights into how different consumers would respond to individual marketing communication options under various circumstances, marketing managers (i.e. practitioners) must ultimately design and evaluate IMC programs as a whole. This is one of the key differences between academic and practitioner perspectives of IMC. Practitioners also have a greater interest in the measurement of marketing effectiveness which academicians often neglect. Lately however, with the influence of marketing in the boardroom deteriorating precipitously (Zinkin, 2006), there has been some effort in making marketing literature more usable for practitioner purposes.

The macro perspectives, that are especially relevant for managerial planning, include the following dimensions (Keller, 2001):
1.

Coverage i.e. the proportion of audience that each communication option reaches and

the degree of overlap

2.

Contribution i.e. the inherent ability of a marketing communication to create the

desired response
3.

Commonality i.e. the extent to which common associations are reinforced across

communication options
4.

Complementarity i.e. the extent to which different associations and linkages are

emphasized across communication options

5.

Robustness i.e. the extent to which the communication option is flexible and works for

different groups of consumers

6.

Cost considerations

Collectively, these are also known as the IMC choice criteria (Keller, 2001). Many writers (eg: Duncan&Moriarty, 1997; Edell, 1993; Percy, 1997; Schultz,

Tannenbaum&Lauterborn, 1994). have advocated the employment of IMC for companies to support their brands5 and Coca-Cola has achievd this consistently, making them the biggest brand today
(InterbrandGlobalBrandRanking, 2011).

Based on the authors research of Coca-Colas 125-year event communications, a micro and macro perspective matrix has been constructed as depicted below:

MICRO PERSPECTIVES
TV Attract attention Convey product information Create emotional response Link to brand Encourage or facilitate purchase PRINT SALES EVENTS AND E-MARKETING PROMOTIONS SPONSORSHIPS

MACRO PERSPECTIVES
5

Brands are clusters of functional and emotional values which promise stakeholders unique experiences. (De

Chernatony, 2001). 10

TV Coverage Contribution Commonality Complementarity Robustness Cost

PRINT

SALES PROMOTIONS

EVENTS AND SPONSORSHIPS

E-MARKETING

To fully appreciate both perspectives, it might be useful to take a closer look at Coca Colas IMC strategy for its 125th anniversary celebrations.

11

COCA-COLAS 125 YEAR CELEBRATION

THE STRATEGY In an interview with Marketing Week, Wendy Clark, Coca-Colas senior vice-president for IMC, explained that 70% of the marketing budget is allocated for big, traditional campaigns, which drive Coca-Colas core business. 20% of the budget goes to innovation around known success channels, such as social media; and the final 10% is spent on high-risk, high-reward ventures, such as pursuing new technologies (Costa 2011). When done correctly, further innovation and synergy is driven through the investments- the 10% then informs the 20%, and so on. This strategy is becoming visible in Coca-Colas bottomline (Costa, 2011).

Further, it is the mission of a company which drives the IMC strategy and defines the scope and sentiment of the messages that would comprise the communications content. Coca-Colas company mission is threefold (CocaColaOfficialWebsite, 2011):

To refresh the world - in mind, body and spirit To inspire moments of optimism - through our brands and actions To create value and make a difference everywhere we engage

This feeds into the mission of the IMC team: big ideas, brilliantly integrated (Choueke, 2011).

For the purpose of their 125th year anniversary, the company has decided to super-impose the underlying theme of open happiness (CocaColaOfficialWebsite, 2011) with the 125 years of spreading happiness message. This is re-enforced through every communication channel used, and e-marketing is no exception. A solid IMC strategy.

12

THE TACTICS: E-MARKETING FOCUS The 125-years celebrations have exploited a host of communication channels; e-marketing has been used not only to integrate these media but also to serve as a channel for fresh interactive content (CocaColaOfficialWebsite, 2011). Whether it is placing 125th anniversary heritage artwork on millions of packs, having special celebratory cultural festivals, letting users design their very own retro 125th anniversary posters, running a host of sites dedicated to Coca-Cola, or engaging channel partners to promote the 125th anniversary event; e-marketing is seen throughout (MediAvataarNewsDesk, 2011; TheCocaColaStory, 2011; MomentumCaseStudy, 2011; O'Reilly, 2011;

SmartwaterCommercial, 2011; CocaColaAnnualReport, 2010; Baker, 2011; Costa, 2011). The website network6 has been used to deliver interactive content and allow consumers to experience Coca-Cola like never before. For instance, fans can download Coca-Cola apps from the web, journey through the wonder years (at theverybestofcocacola.com), upload their own special Coca-Cola moments, become a part of the archive and sift through the history of happiness itself. Coca-Colas own official sites, such as Cokezone in the UK and MyCokeRewards in the US have also played a strong role in the 125 years campaign (Choueke, 2011). Appendix C illustrates the various media and communications used to draw attention to Cokes 125th birthday.

Coca-Cola appreciates that in todays digital age, one needs to actively participate to co-create the content and conversation of ones brands with consumers (CocaColaAnnualReport, 2010).
6

The website network includes sites such as Coca-Cola125.com, cokezone.com, theverybestofcocacola.com,

theCoca-Colacompany, Coca-Colaconversations.com, Coca-Cola.com, I tunes, Facebook, Twiter, Flicker, Youtube, Blogs and PR release sites.

13

Such form of participatory marketing underscores Cokes evolving view of marketing (CocaColaAnnualReport, 2010). In fact, Wendy Clark has recently been announced as the inaugural member of the new Facebook Advertising Council. Coca-Cola wishes to advance their social media marketing7, and they believe this is the right platform (Costa, 2011). Mobile marketing is another channel that Coca-Cola is wielding rather comfortably; mobile phone apps, like the 125 year heritage timeline and 125 reasons to belive in a better world, pay tribute to its 125th year of spreading joy. Appendix D depicts the various Coca-Cola apps available.

Further, viral marketing is also popular; Cokes Happiness Machine viral video has been viewed more than 3 million times and received a coveted Gold Clio award (CocaColaAnnualReport, 2010). These virals can be found interspersed with other 125th anniversary content on the internet. Additionally, e-marketing has been prudently employed for Market Research. Consumer perceptions of the 125 years campaign were mapped through online voting applications amidst general content. Facebook likes8, Youtube views Twitter tweets were also a good measure of what their consumers think of them. It is easy to see how e-marketing has been used by Coca-Cola to deliver messages to varied consumer segments with content tailored to their appeal. The channel has been use to pool communications from other channels and re-enforce their messages9. The true power of IMC lies in developing synergies and e-marketing has proven to be a powerful channel in this context. `
7

Incidentally, Coca-Cola, with more than 26 million fans, is the number one brand on Facebook (Choueke, The 125 years archive at http://www.Coca-Cola.com/music/en_US/125year/postlive.html?lang=en for instance,

2011).
8

got 61,000 Facebook likes.

9

Please see Appendix E for a flavor of some of Coca-Colas online campaigns within the events IMC program. 14

RECOMMENDATIONS AND CONCLUSION

Having visited both, the theory and a practical application of IMC, the author finds it appropriate to recommend that marketing managers pay heed to the micro perspectives of IMC within the macro context; Coca-Colas marketing success is no accident. They have a secret marketing research laboratory, wherein details of consumer behaviour are tested and applied to their marketing practices (TheCocaColaStory, 2011). This ensures that micro perspectives are catered to before venturing into macro aspects.

Moreover, creating an effective marketing communication begins with a clear sense of its objective. Goals of most marketing communications fall within three general categories: brand building, interest arousing, and motivating action (Best, 2009). A business needs to first identify the customer response the message is supposed to invoke. Next, when considering the integration of the communication mix, the link between the brand essence and the target audience needs to be well established (Thorson &Moore, 1996).

It has been demonstrated that e-marketing is a confluence of the various marketing channels. The website, www.Coca-Cola.com, for instance, combines traditional media like Coca-Cola adverts, promotions, Coca-Cola rewards, etc. with more contemporary media like mobile and facebook applications. It also serves to integrate the various marketing media and draw attention to the entire gamut of communications; the consumer can choose his/her area of interest and explore the Coca-Cola moments of happiness as per his/her liking.

A practitioner might benefit from the customised e-business model outlined in Appendix F.

15

Clearly, the power of e-marketing needs to be exploited smartly. In case of Coca-Cola - a company that has rested on TV ads for the longest period - delivering compelling content on several digital endpoints is indeed a challenge (Choueke, 2011). The success of an e-marketing campaign, much like any other, rests on Specific, Measurable, Attainable, Realistic and Timely (SMART) objectives. Under this pretext, Coca-Colas 125th anniversary e-marketing communications could be driven to achieve the following SMART goals:

IMC Go al

E-m arke ting Com unications Goals for the1 5th m 2 Annive ary Ce brations rs le Rise above the noise in the FMCG market; enhance brand awareness and consumer perceptions by 15%. For all Coca-Cola brands and sub-brands Re-enforce other media communications and increase their effectiveness by 10% Use online media extensively to inform consumers about the central theme i.e. Happiness; Coca-Cola values; involvement in societal and environmental causes; and the 125 years of commitment to Happiness in different walks of life

SMART?

D: Differentiate

R: Reinforce

I: Inform

P: Persuade

Increase consumption over the 125-day period by 15 20 % above the usual anticipated consumption

The timeline for each DRIP objective is 125 days- which is the length of the 125th anniversary promotional period. Measuring the effectiveness of the communications would be through effective Marketing Resarch and metrics10.
10

Measuring the effectiveness of Marketing Communications - Supplier audits, sales data, sales force

interviews, coupon redemption data, blogs and comments on network sites (mentioned earlier). Other Key 16

Finally, in the context of attainability, considering Coca-Colas vision to double its current consumption by 2020 (CocaColaOfficialWebsite, 2011), the SMART goals agree with this aggressive strategy; all within the confines of the 20 30 % annual budget set aside for emarketing this year (Costa, 2011).

Performance Indicators include website hits, Youtube views, Facebook likes, Twitter tweets, points redeemed online, number of apps downloaded, customer conversion rates, etc. Focused post-promotional marketing research could be undertaken to measure effectiveness of softer, qualitative aspects of Differentiate and Inform.

17

APPENDIX A

THE COMMUNICATION MIX A companys total marketing communication mix- also referred to as its promotional mixconsists of a blend of marketing tools. No area of marketing has seen more dramatic changes over the years than marketing communications. With the fragmentation of traditional advertising media and the emergence of new, non-traditional media (Keller, 2001)- such as event sponsorships and product placementthere are a host of communication options now available, including:

Advertising Personal selling Sales promotion PR Direct Marketing Events and Exhibitions Sponsorship Telemarketing Product placement/entertainment marketing/brand placement/stealth marketing11 Viral/buzz marketing Guerrilla marketing E-Marketing

11

This is a hybrid promotional technique, combining aspects of sponsorship, celebrity endorsement and

publicity (PR) 18

Planning an effective communications involves the following (Keller, 2001): 1. 2. 3. 4. 5. 6. Research and identify target market Define communication objectives Determine budget Design message Decide mix Evaluate effectiveness

In developing the communication mix, one must additionally factor in the following (Jobber, 2007; Keller, 2001): 1. The Product Lifecycle stage 2. Type of product/market 3. Buyer/readiness stage 4. Push v/s pull strategy for marketing

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APPENDIX B

THE MICRO PERSPECTIVES OF IMC

CONSUMERS: the Who and Why The main point of study vis--vis consumers is that consumers may differ in a) a) b) their prior knowledge, especially in terms of what they know; their goals, or stage of readiness, with respect to the brand or product category; and their processing of goals, in terms of what they would want to get out of the specific

marketing communication to which they are being exposed (Keller, 2001).

COMMUNICATION: the What As per Keller (2001), it is essential to study the different responses created by the interactions of the very basic aspects of marketing communications, such as sight, sound, motion and words- in static, dynamic, customized, or some other nature- with consumer characteristics and the surrounding context. This is where e-marketing shines. With the ability to present information in virtually any form, it presents the opportunity to forge strong, long-lasting customer relationships.

RESPONSE: the How Consumers will respond to marketing communications differently, and in different measures. That is, a consumer might have a specific reaction to a product or brand; perhaps a particular emotion, like warmth, or pride, when viewing an advert, that would shape his/her overall judgement of the brand.

20

SITUATION: the When and Where Factors external to the communication itself also play a part in affecting consumers and consequently impacting communication effectiveness. For instance, exposure location, extent and nature of competing stimuli (advertising or otherwise) at the time of communication exposure, and the amount of time lag involved before measuring response or outcomes (Hutchinson&Moore, 1984) could all influence the effectiveness of the communication.

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APPENDIX C

125 YEARS OF COCA-COLA: CELEBRATING HAPPINESS OPEN HAPPINESS

1.

Employing agencies to support the marketing for the event. For instance, Momentum,

an IMC Agency, produced a retail activation toolkit across Europe to engage consumers at every step of their in-store journey. Specially created assets, supported with print specifications, placement recommendations and messaging options were developed (MomentumCaseStudy, 2011)
2.

Placing 125th anniversary heritage artwork on millions of packs, and including free

branded fridge magnets within the packs (MediAvataarNewsDesk, 2011)

3. 4.

Releasing limited edition glass bottle range (MediAvataarNewsDesk, 2011) Running outdoor ads and special builds that use 3D technology and having bubble

machines displayed at consumer sites across the UK (MediAvataarNewsDesk, 2011)

5.

Allowing visitors to design their own Coca-Cola posters using the ad archive at the Poster Maker microsite on Coke Zone, Coca-Colas online loyalty site

Retro

(MediAvataarNewsDesk, 2011)
6.

Running a storytelling campaign featuring the drinks inventor Dr John Pemberton and a

secret formula theme (Costa, 2011)

7.

Distributing

free

Coca-Cola

to

passers-by

on

the

day

of

event

(MediAvataarNewsDesk, 2011) 8. Engaging McDonalds:

a. McDonalds gave away retro Coke glasses and launched a retro photo

app as part of Coca-Colas 125 anniversary campaign. Further,

22

McDonalds ran a TV, outdoor and in-store campaign to support the promotion (Baker, 2011) b. McDonalds also ran a digital campaign that allowed customers to

upload photos and provide a retro-style makeover via its Flashback Booth app; these photos would then be published on Facebook (Baker, 2011)

Additionally, the website network described previously was used to deliver the following traditional and interactive content for the 125th anniversary celebrations:
1. The recent library commercial is laced with the 125 years coke celebrations and the

unique 125th anniversary bottle the message remained the same: open happiness
2. Coca-Cola Heritage Timeline - developed for the smartphone. Celebrating 125 years of

Coca-Cola and its business since 1886. The mobile application is delivered through the e-marketing route. While reading about this app one will also have the option to experience other apps, like the satas helper game and fill the Coca-Cola bottle game
3.

An entire summer of fun (125 days of promotions, rewards and festivity) with CocaCola. Spreading happiness

4. 125 days of fun press release. Available at blogs, the Coca-Cola site, and feature sites 5. Special 8 oz bottles used to celebrate 125 days of summer fun 6. Special 1.25 lit bottles hit the shelves just in time for the anniversary celebrations 7.

Print and TV ads were drawing a connection between 1.25 litres and 125 years of spreading joy

8. New Coca-Cola packaging to reflect the summer fun with sun glasses, flip flops, surf

boards and of course the 125 years celebrations

9. Music festival and Scholarship making donations to lesser fortunate and talented

students. A social and festive twist to the 125 year celebrations

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10. Coca-Cola and the Statue of Liberty - Shared celebration with a 1 million donation from

the Coca-Cola foundation

11. Coca-Cola and 125 years of community services: Coca-Cola and Ebenezer Baptist

Church helped Georgians. More than 300 volunteers distributing food, disaster relief kits and clothing in down town Atlanta
12. Social Media Apps facility to upload favourite coke memories on facebook, twiter,

flicker and so on. These uploads then have a chance to enter the Coca-Cola archives
13. Anniversary weekend Coca-Cola celebrated like it always has, by bringing people

together through music, art and entertainment

14. 125 years of bright Coca-Cola happiness - As part of the 125 years anniversary, Coca-

Cola lit up the coke headquarter building

15. The very best of Coca-Cola.com an electronic archive of all the Coca-Cola moments,

ads, artwork till date. The theme is 125 years of sharing happiness
16. A special celebratory advert. 17. Promotions - 125 rewards at the coke zone 125 years website 18. Youtube Several Anniversary videos, comments, blogs, chats and so on 19. 125 years artwork book - Coca-Cola advertising, photography and artwork will be

captured in a commemorative book, published by Assouline, as a reflection of the brand's relevance in popular culture over the past 125 years. The books will be available at retail stores worldwide and at www.assouline.com with a digital version also available for downloading

24

APPENDIX D

COCA-COLA iPHONE APPLICATIONS

25

APPENDIX E

COCA-COLA 125 YEARS CELEBRATION: The Role of IMC and

the E-Marketing Communications Challenge

26

27

28

Note: Facebook like button on the top to integrate with all the content on facebook, including

apps, games, contests, promos, social awareness, celebration details, fun celebration facts, invitations and more. Can personalise ones coke experience using this facebook plugin.

29

APPENDIX F The following pyramid depicts a customized e-business model with the various e-marketing tools and tactics classified in stages to deliver an increasing level of business impact.

Source: Adapted from Strauss, et al. ,2006.

30

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