Integrated Marketing Communication

The 3^rd PBL addresses Integrated Marketing Communication (IMC). Having read the trigger about  the company example Mountain Dew and its integrated marketing approach, the group defined the following problem: How to keep the brand’s message consistent over different communication tools?

In the closing PBL, the ensuing learning objectives should be discussed:

• Coordinating IMC
• Tools and Channels of IMC
• Importance of Messages in IMC

1. Coordinating IMC

Definition and development of IMC

IMC evolved in the late 20^th century with the need for a strategic integration of promotional tools. Companies asked their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. (Stockmyer 2012, 9-10) Don Schultz of Northwestern University has developed a comprehensive IMC-definition: Integrated marketing communication is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value.  (Schultz, cited in Stockmyer 2012, 11) According to Saeed (2013, 1) IMC is performed in a manner of synergy rather than isolation.

Fill (2013, 294) states that contemporary marketing communication strategies are based on personalized, customer-oriented and technology-driven approaches (IMC). The main drivers for IMC are market-based, drivers from changing communication and those driven from opportunities arising from within the organization itself. (Fill 2013, 318)

What are the main advantages of IMC? (Fill 2013, 297)

• Synergistic and effective communications
• Competitive advantage through clearer positioning
• Coordinated brand development
• Causes management to review its communication strategy

Involved parties in IMC

A wide range of elements need to be integrated, including communication tools, media and messages, elements of the marketing mix, brands, strategies, employees and agencies. (Fill 2013, 297) The following pyramid summarizes the elements to be integrated (Fill 2013, 299).

Involved parties in IMC (own illustration according to Fill 2013, 299)

How to successfully coordinate their activities?

In order to successfully coordinate the activities of the involved parties, it is essential to develop an IMC plan, as summarized in the illustration below. The first step in the IMC planning process is to review the marketing plan (describing the overall marketing strategy & programs). The next step is to conduct the situational analysis (internal and external). According to Clow and Baack (2012, 100) briefly said, the analysis of the three Cs is required: Customers, Competitors and Communications. The internal analysis includes the following aspects: capabilities of a firm to implement a successful promotional program, organization of a promotional department, success and failures of past programs. The external analysis includes: characteristics of the firm’s customers, market segments, positioning strategies and competitors. Attention must also be given to consumers’ perceptions and attitudes, lifestyles, and criteria for making purchase decisions. (Stockmyer 2012, 27) It also includes an analysis of the marketing environment and current trends. In a following step, the communication process is analyzed, implying the company’s approach of communicating with consumers in target markets. Afterwards, communication objectives should be defined. Those objectives refer to what the firm seeks to accomplish with its promotional program and should be the guiding force for development of the overall marketing communications strategy and of objectives for each promotional-mix area. (Stockmyer 2012, 31) Having defined the objectives, the promotional budget needs to be addressed. Two key questions arise: What will the promotional program cost? How will the money be allocated? Finally, the IMC program is developed, including the objective, message, media strategy and tactics development. The specifications of the different marketing tools will be explained in the second learning objective.

 

Sources:

• Clow K. & Baack D. 2012. Integrated Advertising, Promotion and Marketing Communications. 5^th edition. Pearson.
• Fill C. 2013. Marketing Communications. 6^th edition. Pearson.London.
• Marcvsantonivs 2011. An Introduction to Integrated Marketing Communications. http://de.slideshare.net/marcvsantonivs/introduccin-a-las-comunicaciones-de-marketing-integradas Quoted: 10.09.2015.
• Saeed et al. 2013. Integrated Marketing Communication: A review paper. In: Interdisciplinary journal of contemporary research in business. Vol. 5.  http://journal-archieves35.webs.com/124-133.pdf Quoted: 10.09.2015
• Stockmeyer J. 2012. An Introduction to Integrated Marketing Communications. http://www.johnstockmyer.com/enmu/452ch1.pdf Quoted: 10.09.2015.

2. Tools and channels of IMC

 

The illustration shows the complexity of the integrated marketing communication. In the following, the different channels will be examined closer, as described in Fill 2013.

Advertising

• Matching a noticeable message with the appropriate media
• Decision: in-house apartment or external advertising agency?

Sales/ Promo

• Direct inducement to encourage audiences to buy a product and is presented as an added value
• Objective: Stimulate action
• Notion of loyalty

PR and Publicity (Fill 2013, 471)

• Develop and maintain a portfolio of relationships with key stakeholder audiences
• Maintenance of corporate goodwill
• Cost-effective means of carrying a message
• Internal PR (employees), Financial or investor relations (financial groups), Media relations (Customers) and Corporate Public Relations
• Enables to position themselves
• Plays an important role in preparing for and constraining the impact of a crisis

Personal selling (Fill 2013, 531)

• Four different tasks: order takers, order getters, order collectors, order supporters
• Increased opportunities and touchpoints to reach brands
• Key account relationship

Direct marketing

• Intermediary-free communication with the customer
• Management of customer behavior
• Direct mail and telemarketing (offline), email, mobile and affiliate marketing

Sponsorship

• Opportunity to exploit an association with a target audience of another organization in return for funds, services, resources
• Reaching wider target audience
• Works through associations that consumers will make with the brand
• Collaborative communication
• Areas: Sports, Arts + growing in wildlife conservation and education

Sources:

• Fill C. 2013. Marketing Communications. 6^th edition. Pearson. London.
• Mindfulkreative 2015. Convergence: The best of both worlds. http://mindfulkreative.com/tag/integrated-marketing-communications/ Quoted: 11.09.2015.

 3. Importance of messages in IMC

In order to answer this learning objective, I would like to present a successful integrated marketing campaign launched by the West Indies Rum and Spirits Producers’ Association (WIRSPA). The campaign would aim to raise consumer and trade awareness of the provenance of Caribbean Rum through the launch of the Authentic Caribbean Rum (ACR) Marque, in the UK, Spain and Italy. The responsible agency utilised the skills of strategic planning, PR, advertising, experiental and events teams to reach the core audiences with a unified message conveying the depth of history, honesty and passion behind the production of Caribbean rum.
As a direct result of the integrated True Rum campaign, sales of ACR brands grew 2.5% in and the golden rum category was up 19%, in contrast to the rum category as a whole which contracted by 1.3%, according to Nielsen data. Within the UK trade, ACR marque rum producers obtained new distribution for 10 new brands. 

Wirspa Campaign

Source:

Bray Leino 2015. The true story of change leading to growth. http://www.brayleino.co.uk/wirspa/the-true-story-of-change-leading-to-growth Quoted: 13.09.2015.

Keywords:

Integrated Marketing Communication, Strategic, Longterm brand, Synergy, Communication Tools, IMC Planning Process