Integrated Marketing Communications

University Degree Business and Administrative studies

Marketing Communications

Table of contents

Table of figures

Aims and scope

Within this report there is going to be a detailed approach of IMC and also there is going to be analyzed the adoption and implementation of IMC programs from different companies.

Introduction in IMC

In the 1980s many companies felt the need for an integration of their promotional functions, due to dissimilar interpretation of the messages customers received from a product or brand. Firms like these moved towards to the process of Integrated Marketing Communications, which deals with the harmonization of a variety of promotional functions and other marketing activities that interact with the customers of a firm.

Marketing communications are messages and also related media used to communicate within a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales promotion and online marketing are termed as marketing communicators (Chris Fill, 2006).

It has been almost a decade since the development of Integrated Marketing Communications and there have been many definitions considering the IMC. Tom Duncan suggested that IMC is a cross-functional process for beneficial relationships between customers and stakeholders by transmitting unified and appropriate messages to these groups and encouraging bidirectional communication (Tom Duncan, 2002). David Picton defines IMC as a management process which integrates all marketing functions across related audience which aims to realize wider brand consistency (David Picton et al., 2005). IMC combines functions as advertising, direct response, sales promotion and public relations in order to provide consistency and utilize communications to achieve a synergistic effect. The primary target of IMC is the transmission of a message in a unique voice from the marketer in order to fully utilize the communication investment.

Consumers perceive an idea of a company and its different brands from the messages they receive or the interaction they have from advertisements, product packaging, marketing, sales, e-commerce and even the distribution channels the products are supplied. IMC aims to centralize the outgoing messages so as to produce a uniform image of the company. These messages can be different but can not be contradictory since it is vital to attain a “common brand understanding and common brand passion, not a standardized message” (Kendall 1999).

IMC framework

Figure 1 IMC framework (adapted from David Picton, 2005)

IMC Process Model describes how the messages are sent from the sender to the receivers. There are four basic components; all of them are vital elements of the marketing communication process. The sender, the message, the media (which carries the message e.g. prospectus, news paper) and the receivers the audiences for the message. The process is quite complicated one can involve miscommunication through distortion and noise as the sender decides on the message to be send (encoding) and the receivers trying to make sense of them (decoding) . The message is prone to face some problems when transmitted, it may not be received, it may be received but not from the targeted audience, it may be received from the targeted audience but no action from the recipients follows.

RABOSTIC planning model it is an acronym for: Research and analysis, Audience, Budget, Objectives, Strategy, Tactics, Implementation, and Control. These elements are part of the Research and Decision-making Cycle. The model consists of two important parts, the research and decision making cycle which includes the initial stage of analysis and proceeds to decision making, action and evaluation of outcomes. The second one important part is the information stream which is a constant flow of information through out all the model stages and in this way it ensures a prompt monitoring, evaluation or modification of actions. Objectives, Strategies and Tactics included in the model can be used to shift audience towards the hierarchy of effects. People are being moved through the stages of awareness, interest, desire, action (AIDA model) (David Picton et al., 2005).

IMC Mix Model it forms a link between all the marketing communication elements. There are many marketing communication activities which they are called marketing communications mix or promotional mix. There are various approaches to classify the mix, the most basic four classifications (David Picton et al., 2005) are:

Advertising: The use of paid mass media, by an interested party, to deliver marketing communications message to target audiences.

Public relations: The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics.

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Sales promotions: Is covering a plethora of promotional activities, excluding advertising, PR and personal selling. Sales promotion is associated with free offers, price deals, premium offers, and other promotions including merchandising, point-of-sale displays, leaflets and product literature.

Personal selling: Is oral communication with potential buyers of a product with the intention of making a sale. It focuses initially on developing a relationship with the potential buyer and continues with the attempt to sell.

There are many overlapping marketing communication activities, what is important to the mix is these activities to be integrated.

Marketing communications development

In order ...

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There are many overlapping marketing communication activities, what is important to the mix is these activities to be integrated.

Marketing communications development

In order to develop an effective marketing communications eight steps have to be followed:

1. Identification of the target audience

2. Determination of the communication objectives

3. Formation of the message

4. Communication channels selection

5. Determination of the total communications budget

6. Selection of the communications mix

7. Measurement of the communications results

8. Re-plan and manage the IMC process.

The communications process management required for IMC is a concept that recognizes the added value of a consistent plan that underpins the strategic roles of a variety of communications functions and bonds these functions together in order to provide precision, uniformity, and maximum communications impact through the flawless integration of distinct messages (Philip Kotler, 2002).

Marketing communication effects models

Many marketing and promotional managers recognize the need to set detailed communications objectives and their vital role as operational guidelines to the testing, planning, execution, and evaluation of the promotional campaign. Communications objectives are the criteria used in the DAGMAR (Defining Advertising Goals for Measured Advertising Results) (Russell Colley, 1961) approach to set important advertising goals and objectives, which has become one of the most influential approaches to the advertising planning process. Many marketing planners use this model as a basis for setting objectives and assessing the effectiveness of their campaigns.

DAGMAR also diversified advertiser’s attention on the value of using communications instead on the sales-based objectives to determine advertising effectiveness and facilitate the measurement of the response to assess a campaign’s impact. This leads to less subjective results and helps to establish better relationships between the client and the agency (George. E. Belch, Michael. A. Belch, 2003).

AIDA model (Elmo Lewis) stands for Awareness, Interest, Desire and Action. This model suggests that buyers move from one stage to another in order to reach the final act of consumption. In sequence stage models like this there are difficulties in reaching the desired level of awareness in order to proceed to the next stage and therefore in consumption too (David Picton et al., 2005).

Promotion Mix Strategies

The two primary promotion mix strategies are push promotion and pull promotion. A push strategy implicates “pushing” the product through distribution channels to final consumers. The producer manages its marketing activities through distribution channels to persuade them to bring the product and to promote it to final consumers.

Figure 2 Push versus Pull promotion strategy (adapted from Philip Kotler, 2002)

On the other hand when using a pull strategy, the producer manages its marketing functions toward final consumers to induce them to buy the product. If the pull strategy is effectual, consumers then will require the product from the distribution channels, which will in turn require it from producers. Therefore, in a pull strategy, consumers’ require “pulls” the product through the channels (Philip Kotler, 2002).

The effects of IMC in advertising

The introduction of the IMC has affected both agencies and their clients. During the 1980s many of the large agencies realized that their clients were shifting their promotional budget away from traditional advertising to other forms of promotion and began developing IMC capabilities. Some did this through mergers and acquisitions and became superagencies consisting of advertising, public relations, sales promotion, and direct-response agencies (George. E. Belch, Michael. A. Belch, 2003). Omnicom a worldwide advertising agency also underwent some circumstances which forced an evolution due to the fact that “the world has changed, the nature and forms of communication have changed, and, therefore, the practice of developing and managing marketing and communication must change as well” (Kitchen and Schultz, 2000).

Omnicom and other advertising agencies invested and organized to provide all communications capabilities in addition to traditional advertising services, such as sales promotion, public relations, collateral materials, and direct mail. This shift was motivated by economics since budgets were moving away from media advertising to other resources, and agencies wanted to retain that income. Although clients were not confident that agencies could provide satisfactory specialized services and preferred to turn to experts for special services. Also if the client decided to replace the agency which provided specialised services as well, the transition process would be considerably more complicated (George. E. Belch, Michael. A. Belch, 2003). Omnicom success relied mainly to its client centric approach and strategy of building a geographically balanced network of operations and entering into different business sectors in various regions.

Companies advertised have also been affected from the introduction of IMC. Skoda, which is now fully owned by the VAG (Volkswagen Audi Group), had to integrate its functions and communications since Skoda cars were perceived as cheap low quality cars and now VAG wanted Skoda cars to be considered as quality, safe and good for value. When Skoda launched the first car in association with VAG, the sales where disappointing since the sigma of owning a Skoda has not been yet eliminated, even though this was a higher quality built car. A new IMC campaign was necessary to change that perception, advertising media like TV, press and posters agencies pursued above and below the line push and pull strategies also opinion forming journalists were targeted to increase media coverage and direct marketing. Skoda expanded to other marketing communication activities, a website was developed which became very popular and techniques like exposure marketing involved displaying cars in shopping centres and events. Retailers also upgraded their premises and showrooms in order to line up with the new image of the company. Before the launch of the new IMC campaign Skoda took a research which helped to form marketing communications objectives, strategies and tactics (David Picton et al., 2005).

Another motor company BMW Mini cooper also faced problems while launching MINI cooper and MINI cooper S in the US market. Cars like SUVs dominate in the US market; a small car like Mini cooper had little chances to reach high volume sales with traditional advertising. An IMC campaign took place, MINIs where placed on top of huge SUVs and toured around the country which meant to mimic a giant roof rack carrying weekend toys such as bicycles, canoes, windsurfs, snowboards. Also in sports events MINIs where placed inside stadiums and printed brochures were handed out with a web address where people could customise the car and sign up to participate in other promotional events. Also traditional media was used, like magazines TV and news papers in a non-traditional way. The campaign attracted more than 115.000 people through the web site and thousands of MINIs were pre-ordered even before they were available in dealer showrooms. BMW combined different marketing communication elements to build an IMC mix model which had to create an image of the MINIs under a different spectrum. This image was transmitted as a plethora of messages through different communication channels. Although these messages were different they were consistent with the image of the product and with the positioning strategy of BMW (Philip Kotler, 2002).

Furthermore Mazda a well known motor company had no brand communication or activity with real support during the recent years in Ireland, as a result consumers had created a perception of Mazda as a good manufacturer in the past but they had no actual knowledge of the cars models range nor what Mazda as a brand stood for in the present. The previous distributor in Ireland MDL did not focus on how to gain bigger market share and had not proceed to any investment in order to enhance the brand awareness. Mazda Ireland set objectives to be achieved, consumer consideration and ultimate choice for Mazda as a brand until a given key time (which is before Christmas and registrations take place in the new year) for the Irish car market. A fresh innovative IMC campaign was necessary to achieve these aims in such short time and to build a brand. Brand building was important since in a research which was conducted before the campaign, Mazda was not among the first choices of the public and certainly was not popular as potential buyers mentioned Mazda only when prompted. Mazda Brand encapsulated the 'Zoom – Zoom' tag line, which stands for challenging, fun, spirited, dynamic. The campaign was based on this philosophy and the concept was named '98FM Mazda Zoom – Zoom – Challenge'. One Guy. One Girl. Two Mazda Cars to be Won. The campaign included a radio contest where two strangers where paired together and answered questions regarding Mazda, the audience and the contestants while listening conveyed key brand values. The final event was held in the premium Dublin Dockalnds venue where the event was broadcasted live and contestants participated to win their prize, a Mazda. During the campaign there were other communication channels used, outdoor advertising included advertisement on bus side and billboards. Also printed material and sampling stuff was handed out at key locations. In addition an outdoor broadcasting unit broadcast live from key city centre locations with the cars on display. All messages conveyed by different communication means integrated the same meaning and were consistent with the objectives and the strategy followed. Mazda before the end of the campaign had already increased its sales, and once it was completed the sales volume exceeded their expectations. Also people had seen Mazda under a new perspective and had understood the “Zoom-Zoom” spirit. Mazda’s campaign in Ireland won a Bronze award in IMC European Awards 2007 (European Association of Communications Agencies, 2007).

Advantages and pitfalls of Integrated Services

With the development of faster communication, transportation, and financial transactions, time and distance are no longer barriers to global marketing. Products and services developed in one country quickly find their way to other countries where they are finding enthusiastic acceptance.

IMC is not new a concept, many small agencies have been coordinating different promotional tools while larger agencies are trying to attract all fields of their client’s advertising. When implementing an IMC campaign there can be identified both advantages and pitfalls (David Picton et al., 2005, George. E. Belch, Michael. A. Belch, 2003). The benefits produced from an IMC campaign are:

The establishment of a strong brand identifiable in the market where all the messages are tied together across all marketing communication venues and reinforce the company’s position.
The continuing tracking of advertising expenditures in every stage of the campaign including all promotion mix tools used. Unnecessary expenditures are avoided due to precise marketing planning. Also a margin for improvement in the future is provided.
More convenient for clients to coordinate all promotional efforts with one agency. Agencies which have IMC capabilities are able to produce a single unified image through promotional mix.
Higher effectiveness and efficiency of marketing communications is achieved. Efficiency is derived form the crucial part that each promotional tool has, whereas effectiveness appears the numerous elements employed. Stakeholders become better informed. The message can hardly be misses due to the various channels used.
Communication experts in agencies argue that maintaining control of the entire promotional process achieves greater synergy among each of the communications program elements.

Despite the advantages that IMC provides there are also some pitfalls when IMC is involved (David Picton et al., 2005, George. E. Belch, Michael. A. Belch, 2003). These pitfalls can be summarised as:

Internal conflicts often arise within various departments within a large agency over areas such as advertising, public relations or sales promotion.
Limits client’s ability to take advantage of specialists in various IMC areas.
Creative specialists in agencies and subsidiaries resist becoming involved in sales promotion or direct marketing, they prefer to develop press ads rather than direct mail forms.
The providers become involved in a political strife over budgets, do not communicate with each other as well and as often as they should, and do not achieve synergy. Synergy and economies of scale, while nice in theory, have been difficult to be achieved in a single agency handling all communication areas. Competition and conflict among agency subsidiaries have been a major problem.
Marketing executives argue that the biggest obstacle to implementing IMC is the lack of people with the broad perspective and skills to make it work. Internal territorial battles, agency egos, and fear of budget reductions are also considered as major barriers to successful integrated marketing campaigns.
The implementation of integrated communication is also restrained by the absence of databases and the accompanying technology to track and profile of customers and other key stakeholders.

Many companies use a variety of vendors for communication functions, choosing the specialist they believe is best suited for each promotional task, be it advertising, sales promotion, or public relations. While many ad agencies are working to master integration and compete against one another, they still must compete against firms that offer specialized services. The primary benefit gained from the integration of marketing communications is synergy. This is achieved by accumulating the various elements of marketing communications in a supportive cooperation to result in a unified workmanship. Considering the implications of not achieving integration there should not be assumed that the lack of integration results in a neutral situation. This action it is likely to result in a negative synergy, the promotional elements will perform independently and this conclusively will result in unproductive negative results (David Picton et al., 2005).

Conclusion

A number of factors lie beneath the move from traditional advertising to IMC by marketers and other promotional service providers. This can relay on a number of facts including the continuously changing environment with reverence to consumers, technology, and media. The movement towards IMC is also being affected by changes regarding companies market their products and services. The continue growth and development of database marketing are some of the major changes taking place (Philip Kotler, 2002).

Promotional mix includes Advertising Public relations Sales promotions Personal selling advertising and interactive Internet marketing. The advantages and pitfalls of each of these promotional mix elements influence in the overall marketing program. When developing the promotional program, the marketing expert must make a decision which tools to use and how to merge them to accomplish the organization’s marketing and communication objectives. All of these must be matched together to present an integrated marketing communications outlook, in which the positioning strategy is supported by unity. In addition product, pricing, and distribution strategies must be made with the aim of contributing to the total image of the product or brand (George. E. Belch, Michael. A. Belch, 2003).

Furthermore, communication has to move from tactics to strategy. In the continuously changing and highly competitive world of the twenty-first century only carefully implemented IMC can help business to make a progress. However, a majority of firms have remained on a level mainly dealing with traditional coordination of promotional elements and very few have moved to financial and strategic integration (Kitchen and Schultz, 2000).

References

[1] Pickton, D. and Broderick, A. (2005), Integrated Marketing Communications, Pearson Education Limited, Harlow.

[2] Kotler, P. (2002), Marketing Management, 11th ed., Prentice-Hall/Pearson Education, Englewood Cliff, NJ.

[3] Belch, G. E. and Belch, M. A. (2003), Advertising and Promotion, 6th ed., McGraw Hill.

[4] Fill, C. (2006) Marketing Communications, 4th ed., Financial Times/ Prentice Hall.

[5] Kitchen, P.J. and Schultz, D.E. (2000), “A response to ‘Theoretical concept or management fashion”, “Journal of Advertising Research”, Vol. 40 No. 5, pp. 17-21.

[6] European Association of Communications Agencies, viewed 26 March 2007, <http://www.eaca.be/pmc>

Bibliography

[1] Kitchen, P.J. and Schultz, D.E., et al. (2003), “Will agencies ever “get” IMC?”, “European Journal of Marketing” Vol. 38 No 11/12.

[2] Ilchul, K., Dongsub, H. and Schultz, D.E., (2004), “Diffusion of IMC”, “Journal of Advertising Research”.

[3] Cornelissen, P.J., Thøger, C., Vijn, C., (2006) “Understanding the development and diffusion of integrated marketing communications”, “NRG working paper”.

[4] Holm, O., (2006) “Integrated marketing communication: from tactics to strategy”, “Corporate Communications: An International Journal”, Vol. 11 No. 1, pp. 23-33.

Appendix

Mazda’s campaign in Ireland won a Bronze award in IMC European Awards 2007.

BMW Mini campaign in US meant to mimic a giant roof rack carrying weekend toys such as bicycles, canoes, windsurfs, snowboards, surfboards etc.

Interactive/Internet Marketing

Nowadays, dynamic and revolutionary changes take place concerning marketing, as well as advertising and promotion. These changes are being driven by advances in technology and developments that have led to dramatic growth of communication through interactive media, particularly the Internet. Interactive media allow for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Unlike traditional forms of marketing communications such as advertising, which are one-way in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions, and, of course, make purchases (George. E. Belch, Michael. A. Belch, 2003).

Test marketing research

Sales-Wave Research. In sales-wave research, consumers who initially try the product at no cost are reoffered the product, or a competitor’s product, at slightly reduced prices. They might be reoffered the product as many as three to five times (sales waves), with the company noting how many customers selected that company’s product again and their reported level of satisfaction. Sales-wave research can be implemented quickly, conducted with a fair amount of security, and carried out without final packaging and advertising.

Simulated Test Marketing. Simulated test marketing calls for finding 30 to 40 qualified shoppers and questioning them about brand familiarity and preferences in a specific product category. These people are then invited to a brief showing of either well-known and new commercials or print ads. Consumers receive a small amount of money and are invited into a store where they may buy any items. The company notes how many consumers buy the new brand and rival brands. This provides a measure of the ad’s relative effectiveness next to competing ads in stimulating trial. Consumers are asked the reasons for their purchases or non-purchases. Those who did not buy the new brand are given a free sample. Some weeks later, they are re-interviewed by phone to determine product attitudes, usage, satisfaction, and repurchase intention and are offered an opportunity to repurchase any products.

Controlled Test Marketing. In this method, a research firm manages a panel of stores that will carry new products for a fee. The company with the new product specifies the stores and the locations it wants to test. The research firm delivers the product to the participating stores and controls shelf position, number of facings, displays, and point-of-purchase promotions and pricing. Sales results can be measured through barcode scanners at the checkout. Controlled test marketing allows the company to test the impact of in-store factors and buying behaviour. On the positive side, the company does not have to use its own sales force. However, controlled test marketing provides no information on how to sell the trade on carrying the new product.

Test Markets. The ultimate way for testing a new consumer product is to be placed into full-blown test markets. The company chooses a few representative cities, and the sales force tries to sell the product and giving it good shelf exposure. The company puts on a full advertising and promotion campaign in these markets similar to the one that it would use in national marketing. Unfortunately the cost for this kind of test is relatively high.

In a fast-changing marketplace, companies are eager to get to market first. Test marketing slows them down and reveals their plans to competitors (Philip Kotler, 2002).