INTEGRATED MARKETING INTEGRATED MARKETING COMMUNICATIONSCOMMUNICATIONS

LECTURE 1: MARKETING LECTURE 1: MARKETING COMMUNICATIONS IN COMMUNICATIONS IN

CONTEXTCONTEXT

ObjectivesObjectivesAt the end of this input the participant At the end of this input the participant

will be able to:will be able to:• have an understanding of the philosophy have an understanding of the philosophy

behind the module and the basic behind the module and the basic communications mixcommunications mix

• have an understanding of the nature of have an understanding of the nature of I(M)C and the make-up of the I(M)C and the make-up of the communications mix in general in relation communications mix in general in relation to various kinds of markets to various kinds of markets

• appreciate the importance of integration in appreciate the importance of integration in communicationscommunications

• appreciate the benefits of applying appreciate the benefits of applying integration in comms to target marketsintegration in comms to target markets

MANAGINGMANAGING CHANGE: Focus CHANGE: Focus shift shift HISTORICAL CURRENT 21ST HISTORICAL CURRENT 21ST

CENTURYCENTURY

MARKETERMARKETER MARKETER MARKETER MARKETER MARKETER

CHANNEL CHANNEL CHANNELCHANNEL CHANNEL CHANNEL

MEDIA MEDIA MEDIA MEDIA MEDIAMEDIA

CONSUMER CONSUMER CONSUMER CONSUMER CONSUMERCONSUMER

Communications MixProduct, Price, Place, Product, Price, Place,

PromotionPromotion

Advertising Advertising Sales promotionSales promotion

Public relations Personal Public relations Personal sellingselling

Corporate PR Direct Corporate PR Direct marketingmarketing

And othersAnd others

Marketing Planning, the Marketing Planning, the Communications Mix and Communications Mix and IntegrationIntegration

Marketing Objectives and StrategyMarketing Objectives and Strategy

Marketing PlanMarketing Plan

The Marketing Communications The Marketing Communications StrategyStrategy

Managing the Communications Managing the Communications MixMix

• Planning frameworks can assist Planning frameworks can assist planning, management and controlplanning, management and control

• Many Marcomms planning models Many Marcomms planning models exist e.g. Copley APIC, Smith SOSTAC exist e.g. Copley APIC, Smith SOSTAC etcetc

• All include similar stages of analysis, All include similar stages of analysis, planning, implementation and planning, implementation and evaluationevaluation

APIC MODELAPIC MODEL

• ANALYSISANALYSIS: the present situation (organisation, : the present situation (organisation, product/service, competitors, customers, product/service, competitors, customers, environment etc)environment etc)

• PLANNINGPLANNING: objectives, positioning, strategy : objectives, positioning, strategy and tacticsand tactics

• IMPLEMENTATIONIMPLEMENTATION: costing, budgeting, : costing, budgeting, production, scheduling etcproduction, scheduling etc

• CONTROLCONTROL: research, monitoring and : research, monitoring and evaluationevaluation

Copley 2004Copley 2004

DECISION SEQUENCE DECISION SEQUENCE MODELMODEL

Situation analysisSituation analysis

objectives and positioningobjectives and positioning

strategiesstrategies budgetbudget

implementationimplementation

evaluationevaluationRothschild 1987Rothschild 1987

Decision Sequence ModelDecision Sequence Model

• Situation Analysis:Situation Analysis:

• Where are we now? Where are we now? – Assessment of consumerAssessment of consumer– Assessment of product classAssessment of product class– Assessment of the organisationAssessment of the organisation– Assessment of the EnvironmentAssessment of the Environment

Decision Sequence ModelDecision Sequence Model

• Objectives and Positioning:Objectives and Positioning:– Where do we want to go?Where do we want to go?– Time, task, target and amount of changeTime, task, target and amount of change

• Strategies:Strategies:– How do we get there?How do we get there?– Integrated Marcomms MixIntegrated Marcomms Mix

• Budget:Budget:– How much can we/do we need to spend?How much can we/do we need to spend?

Decision Sequence ModelDecision Sequence Model

• Implementation:Implementation:– Test Marketing etcTest Marketing etc

• Evaluation: Evaluation: – Were the objectives achieved?Were the objectives achieved?– Feedback to inform the next situation Feedback to inform the next situation

analysisanalysis

Fill’s Decision Sequence Fill’s Decision Sequence ModelModel• Similar approach to Rothschild and APICSimilar approach to Rothschild and APIC• Features a Key Factor or Content Analysis, Features a Key Factor or Content Analysis,

instead of the Situation Analysisinstead of the Situation Analysis• Explicit recognition of the role of agenciesExplicit recognition of the role of agencies• Explicit recognition of the part research Explicit recognition of the part research

plays in the whole processplays in the whole process

Fill 1995 and 2002Fill 1995 and 2002

Integrated Communications: the philosophy

““careful planning creates careful planning creates marketing communication marketing communication synergysynergy that reinforces a that reinforces a

consistentconsistent message or image message or image in a in a cost effectivecost effective manner” manner”

Smith 1993Smith 1993

INTEGRATED (MARKETING) INTEGRATED (MARKETING) COMMUNICATIONSCOMMUNICATIONSIMC DEFINED:IMC DEFINED:

““IMC is the process of developing and IMC is the process of developing and implementing various forms of persuasive implementing various forms of persuasive communications programs with customers communications programs with customers and prospects over time”and prospects over time”

(Shimp, (Shimp, 1997)1997)

INTEGRATED (MARKETING) INTEGRATED (MARKETING) COMMUNICATIONSCOMMUNICATIONSIMC CAN BE DESCRIBED AS:IMC CAN BE DESCRIBED AS:• Single voice, Gestalt, SynergySingle voice, Gestalt, Synergy

1. Moving people to action1. Moving people to action2. Use of all forms of contact2. Use of all forms of contact3. Start with the consumer3. Start with the consumer4. Achieve synergy4. Achieve synergy5. Build relationships5. Build relationships

(Shimp, 1997)(Shimp, 1997)

Implications of: GESTALTImplications of: GESTALT• consistency in brand developmentconsistency in brand development

• synergy of effortsynergy of effort

• closer client-agency relationshipcloser client-agency relationship

• teamworkteamwork

• effective measurementeffective measurement

i.e. The whole is greater than the sum i.e. The whole is greater than the sum of the partsof the parts

INTEGRATED (MARKETING) INTEGRATED (MARKETING) COMMUNICATIONSCOMMUNICATIONS• Communications elements working Communications elements working

together with a “unified message”together with a “unified message”• Below the line supports above Below the line supports above

activity and vice versaactivity and vice versa• A consumer-focussed approachA consumer-focussed approach

Eight possible themes to Eight possible themes to explore the question “what is explore the question “what is IMC?”:IMC?”:1.1. Attitude of mind.Attitude of mind. IMC is an attitude, not a IMC is an attitude, not a

science. science.

2. 2. One spirit.One spirit. The single theme to support the The single theme to support the brand, the intellectual message. brand, the intellectual message.

3. 3. One strategy.One strategy. Of the marketing and then promo Of the marketing and then promo mix - a single communications strategy which mix - a single communications strategy which embraces what it needs to achieve objectives.embraces what it needs to achieve objectives.

4. 4. Synergy.Synergy. A unified message where each part A unified message where each part reinforces the others, each drawing from each reinforces the others, each drawing from each other.other.

Eight possible themes to Eight possible themes to explore the question “what is explore the question “what is IMC?”:IMC?”:5. 5. Equal status.Equal status. The ‘line’ has gone and the mix The ‘line’ has gone and the mix

is dictated by the brief, not the agency. is dictated by the brief, not the agency. Advertising’s dominance is being challenged.Advertising’s dominance is being challenged.

6. 6. Merging disciplines or blurred edgesMerging disciplines or blurred edges, since a , since a lot of advertising contains (say) PR or SPs lot of advertising contains (say) PR or SPs

7. 7. Stakeholder emphasis.Stakeholder emphasis. But IMC is not a But IMC is not a panaceapanacea

8. 8. Marketing orientation.Marketing orientation. Understanding needs Understanding needs

and how to satisfy them with the help of IMCand how to satisfy them with the help of IMC

WHAT DRIVES IMC?WHAT DRIVES IMC?

1. 1. Financial factors.Financial factors. Schultz (1994) suggests: Schultz (1994) suggests:- recession- recession- the trend toward pay by - the trend toward pay by

results/accountabilityresults/accountability- restructuring of how agencies are paid re - restructuring of how agencies are paid re

billing/income/profitbilling/income/profit- pressure to reduce media billing- pressure to reduce media billing- media fragmentation- media fragmentation

All have contributed toward consideration All have contributed toward consideration of IMC.of IMC.

WHAT DRIVES IMC?WHAT DRIVES IMC?

2.2. The sophisticated client.The sophisticated client. Most Most commentators would agree that clients are commentators would agree that clients are a lot more sophisticated and knowledgeable a lot more sophisticated and knowledgeable than in the past. The mystique of than in the past. The mystique of advertising is diminished and a power shift advertising is diminished and a power shift occurred. occurred.

3.3. Disillusionment Disillusionment with the brand, advertising with the brand, advertising and agencies. In a similar vein to the above, and agencies. In a similar vein to the above, own labels are stronger and advertising less own labels are stronger and advertising less revered. Other elements of communications revered. Other elements of communications deemed important. Agencies have had to deemed important. Agencies have had to change, but should see this as a set of change, but should see this as a set of opportunities not threats.opportunities not threats.

WHAT DRIVES IMC?WHAT DRIVES IMC?

4. 4. Power shiftPower shift to retailers generally and to retailers generally and what they need/expect has meant what they need/expect has meant more spend on below the line.more spend on below the line.

5. 5. Environmental factorsEnvironmental factors such as the such as the new media, attitudes toward new media, attitudes toward modernist marketing etc. have modernist marketing etc. have changed the way in which changed the way in which communication is viewed.communication is viewed.

THE BENEFITS OF IMCTHE BENEFITS OF IMC

Linton and Morley (1995) Linton and Morley (1995) provide a clear list of benefits provide a clear list of benefits of IMC to organisations: of IMC to organisations:

1. 1. Creative integrityCreative integrity - theme and style - theme and style consistent throughout, therefore consistent throughout, therefore impact not confusion. Can aid impact not confusion. Can aid campaign build-up and provide campaign build-up and provide materials for other uses.materials for other uses.

THE BENEFITS OF IMCTHE BENEFITS OF IMC

2. 2. Consistency of messagesConsistency of messages - following on - following on from 1. above, straplines and other from 1. above, straplines and other parts of the message can provide the parts of the message can provide the basis for reinforcement, reminder basis for reinforcement, reminder leading to the development of the key leading to the development of the key message, visual standards, use of message, visual standards, use of company colours consistently etc.company colours consistently etc.

THE BENEFITS OF IMCTHE BENEFITS OF IMC3. 3. Unbiased recommendationsUnbiased recommendations - usually through one - usually through one

agency, “through the line” with no worries about agency, “through the line” with no worries about earning commission from advertising billing only. earning commission from advertising billing only. Seek objectivity from start.Seek objectivity from start.

4. 4. Better use of all mediaBetter use of all media - allow each to work with - allow each to work with each other to get the best out of all of it.each other to get the best out of all of it.

5. 5. Greater marketing precisionGreater marketing precision - via data bases and - via data bases and information processing generally. Allows the use of information processing generally. Allows the use of different elements to achieve different objectives.different elements to achieve different objectives.

6. 6. Operational efficiencyOperational efficiency - Takes fewer people , can - Takes fewer people , can be a single interface and so less conflict. Simple be a single interface and so less conflict. Simple compared to the potentially messy multi-agency compared to the potentially messy multi-agency situation.situation.

THE BENEFITS OF IMCTHE BENEFITS OF IMC

7. 7. Cost savingsCost savings - re. admin., rationalisation of - re. admin., rationalisation of materials, artwork etc.materials, artwork etc.

8. 8. High calibre serviceHigh calibre service - to all areas. IMC means - to all areas. IMC means professionalism for below-the-line as well as above. professionalism for below-the-line as well as above. Overall service improved “through the line”.Overall service improved “through the line”.

9. 9. Easier working relationshipsEasier working relationships - One agency means - One agency means no new learning curves because of knowledge of no new learning curves because of knowledge of the client’s business, simplified admin., no re-the client’s business, simplified admin., no re-learning but ongoing, consistent.learning but ongoing, consistent.

10. 10. Agency accountabilityAgency accountability - This has to be true if only - This has to be true if only one agency is used. Value for money should result.one agency is used. Value for money should result.

INTEGRATED (MARKETING) INTEGRATED (MARKETING) COMMUNICATIONSCOMMUNICATIONS

WHAT INHIBITS IMCWHAT INHIBITS IMC• Practical difficulties, for example Practical difficulties, for example

the complexity of different the complexity of different objectives being achieved by objectives being achieved by different strategy and tactics, don’t different strategy and tactics, don’t help. Implementation can be very help. Implementation can be very difficult to achieve.difficult to achieve.

WHAT INHIBITS IMCWHAT INHIBITS IMC

• Cultural factors. The main factor is Cultural factors. The main factor is change, or resistance to it. The change, or resistance to it. The culture of the organisation for culture of the organisation for example may be hung up on flashy example may be hung up on flashy ads on TV. Or it may be that sales ads on TV. Or it may be that sales promotions have been the norm, promotions have been the norm, linked to bonuses. Any change linked to bonuses. Any change would be accompanied by conflict.would be accompanied by conflict.

STAGES IN IMCSTAGES IN IMC

4TH STAGE: FINANCIAL AND STRATEGIC 4TH STAGE: FINANCIAL AND STRATEGIC INTEGRATIONINTEGRATION - monitoring performance for ROI - monitoring performance for ROI3RD STAGE: APPLICATION OF IT3RD STAGE: APPLICATION OF IT - data sources - data sources and bases, planning and implementation, data and bases, planning and implementation, data to knowledgeto knowledge2nd STAGE: REDEFINING THE SCOPE OF 2nd STAGE: REDEFINING THE SCOPE OF MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS - gather - gather information and apply to communicationsinformation and apply to communications1st STAGE: TACTICAL COORDINATION OF 1st STAGE: TACTICAL COORDINATION OF MARKETING COMMUNICATIONS -MARKETING COMMUNICATIONS - interpersonal interpersonal and cross-functional communications and cross-functional communications

Any QuestionsAny Questions