Integrated marketing communications project by Aftab syed
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  • 1. A PROJECT ON A REPORT ON INTEGRETED MARKETING COMMUNICATION WITH SPECIAL REFRENCE TO MARKETING. An In-Depth Study PROJECT BY: MOHAMMED ATIQUE IDRISI TYBMS (SEM V), 2010- 2011 Project Co-ordinator: PROF. MAZHAR THAKUR DATE OF SUBMISSION: ____/_____/_20 AKBAR PEERBHOY COLLEGE OF COMMERCE AND ECONOMICS
  • 2. A REPORT ON INTEGRETED MARKETING COMMUNICATION WITH SPECIAL REFRENCE TO MARKETING. Submitted by: MOHAMMED ATIQUE IDRISI TYBMS [Semester V] AKBAR PEERBHOY College of Commerce and Economics. Project Co-ordinator: PROF; MAJHAR THAKUR Submitted on : ____/____/20 Integrated Marketing Communications 2
  • 3. Declaration I MOHAMMED ATIQUE IDRISI student of AKBAR PEERBHOY COLLEGE OF COMMERCE AND ECONOMICS, MUMBAI – 400008, T.Y.B.M.S SEM V, here by declared that I have completed Project on A REPORT ON INTEGRETED MARKETING COMMUNICATION WITH SPECIAL REFRENCE TO MARKETING. in the academic year 20010-11 .The information submitted is true and original to the best of my knowledge. Place: Mumbai. Date: Signature of the students. Integrated Marketing Communications 3
  • 4. Certificate This is to certify that the project entitled A PROJECT ON INTEGRETED MARKETING COMMUNICATION WITH SPECIAL REFRENCE TO MARKETING. by MOHAMMED ATIQUE IDRISI student of AKBAR PEERBHOY COLLEGE OF COMMERCE AND ECONOMICS MUMBAI – 400008, T.Y.B.M.S SEM V, during the year 2010-11, in partial fulfillment of degree of bachelor of management studies (B.M.S.) and that the dissertation has not formed on the basis for previous degree, diploma or any other similar title. Integrated Marketing Communications 4
  • 5. ACKNOWLEDGEMENTS I would like to thank Prof; Mazhar Thakur, The university of Mumbai and Akbar Peerbhoy College of commerce and economics and the project guide and my big brother who cooperate me to make this project without their cooperation I could not make the Project Co-ordinator PROF; MAJHAR THAKUR MOHAMMED ATIQUE IDRISI ROLL NO.23 T.Y.BMS SEM V Integrated Marketing Communications 5
  • 6. A ROADMAP TO THE REPORT TOPIC Page no. PART I Introduction…………………………………………………………………… 09 What Is Integrated Marketing Communication ………………………. 11 An Analogy – The Symphony Orchestra ……………………………….. 15 Components of IMC……………………….………………………………… 17 Factors contributing to IMC's rising prominence ……………………. 19 Heart Of IMC – 5 Power Concepts ……………………….………………. 22 Levels of Integration …………………….…………………….…………….. 24 Consumer Psyche and Information Processing ……………………….. 27 CASE I How the Entertainment Industry Capitalizes on IMC ……… 30 Success Factors and Advantages of IMC ……………………………….. 43 PART II - PROCESS OF IMC Characteristics of an IMC approach 46 Communications Mix Hierarchy 48 The Actual Process: 50 Model for Planning Integrated Marketing Communication 52 CASE II Godrej Consumer Products Ltd. 55 Issues In Co-Ordination Of An IMC Campaign 67 PART III - REINVENTING THE AGENCY Reinventing the Agency 73
  • 7. PART IV - EVALUATION AND BARRIERS Evaluation – IMC Audit 78 Barriers To Implementation 85 Necessary Conditions for IMC Success 93 Conclusion 94 ANNEXURE A IMC AUDIT FORM The Integrated Marketing Audit ANNEXURE B IMC IN GLOBAL ARENA ANNEXURE C QUESTIONNAIRE BIBLIOGRAPHY Integrated Marketing Communications 2
  • 8. PART I I M C AN INTRODUCTION Integrated Marketing Communications 3
  • 9. Integrated Marketing Communications 4
  • 10. Introduction Pepsi, announced some time back that it was scrapping its familiar red, white, and blue design and switching to a radical new electric blue package and logo design, the reason being that Pepsi's image, particularly in international markets, had been losing something in translation. As The Wall Street Journal observed in reporting on the Project Blue launch, "Pepsi’s image is all over the map." The story explains that a grocery store in Hamburg uses red stripes, a bodega in Guatemala uses '70s-era lettering, a Shanghai restaurant displays a mainly white Pepsi sign, and a hodgepodge of commercials feature a variety of spokespeople, ranging from cartoons and babies to doddering butlers. It's not just Pepsi's marketing communication that sends different messages to different people. Consumers say the cola tastes different in different countries, so PepsiCo's plans also call for revamping manufacturing and distribution to get a consistent-tasting drink marketed throughout the globe. And some of its European marketing communication partners were mixed in their support of the plan because they felt they weren't consulted about how it was to be implemented, so there's work to be done there, too. Everything Sends a Message: What happened to Pepsi dramatizes the point that message consistency is a systemic problem, as well as strategic. It has to be approached from the viewpoint of the whole company and its total business operations, not just from how the company executes its marketing communication or corporate image programs. Integrated Marketing Communications 5
  • 11. As Nicolas Hayek, CEO of Swatch, says, "Everything we do, and the way we do everything, sends a message." And that’s where Integrated Marketing Communications comes in. Integrated marketing communications is a process that manages all of a company or brand's interactions with customers and other key stakeholders. Its premise is that everything a company does, and sometimes what it doesn't do, sends a message. In the marketplace of the 21st century ... the driving force is not a company with products to sell but customers controlling what, where, and how they want to buy. Thanks to the Internet, 24-hour toll-free phone numbers, credit cards, and express delivery services, consumers are accessing information on demand and seeking out the products and services that interest them. Gone are the days when a company determined where, when, and how it sells its product. This new approach not only changes the way we make our purchasing decisions, it also revolutionizes how companies market to their customers. For most companies to win, they must replace outdated mass-marketing tactics with a targeted, customer-focused approach. Integrated marketing communications (IMC) is one such customer- centric, data-driven method of communicating with consumers. Nestle, IBM, Sprint, Microsoft, Apple computers, Nike and many other companies have adopted the IMC approach. Integrated Marketing Communications 6
  • 12. What is Integrated Marketing? Integrated marketing is a comprehensive approach to internal and external organizational communication. Definition of IMC: As per American Association of Advertising Agencies 'The concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines - for example, general advertising, direct response, sales promotion, and public relations - and combines these disciplines to provide clarity, consistency and maximum communications impact'. According to Don Schultz, Integrated marketing Communications is a new way of looking at the whole, where once we only saw parts such as advertising, public relations, sales promotion, purchasing, employee communications, and so forth. It is realigning communications to look at it the way the customer sees it - as a flow of information from indistinguishable sources. A successful IMC campaign requires that the firm find a right combination of promotion tools and techniques, defines their roles and the extent to which they can or should be used, and coordinate their use. In the words of Duncan and Everett, Integrated Marketing Communications may be defined as “The strategic coordination of all the messages and media used by an organization to influence the perceived brand value” The focus here is on two aspects: Integrated Marketing Communications 7
  • 13. 1) Being present at all the contact points 2) Managing the communications well that your brand speaks one language. As Nowak and Phelps say - your brand should have ‘One voice’ reaching to your customers, may it be by any number of channels. If this does not happen: a) You may miss out on some of the contact points where your customer awaits your communications but he does not find you and he abnegates the brand. b) You may reach different contact points but different communications (including the intangibles) speak differently, your customer gets confused as to what he should associate with your brand. Thus the first aspect creates awareness and the second aspect creates and maintains loyalty. Other views on what Integrated Marketing Communication is: “Integrated marketing is a cross-functional process to create, maintain and grow profitable relationships with customers and other stakeholders, with the intended result being a gain in brand value for the company, as well as it's products/services.” “IMC is the management of all organizational communications to build positive relationships with customers and other stakeholders -- stresses marketing to the individual by understanding needs, motivations, attitudes, and behaviors.” Integrated Marketing Communications 8
  • 14. “Integrated marketing unifies the core purpose, key goals and strategies and company-wide processes to create congruent messages and sufficient dialog with all stakeholder groups.” Necessary conditions for an Effective IMC program: Today, IMC definitions are broader in application, as a brand is developed in stakeholders' minds as a result of all interactions they have with a company, and not just as a result of a campaign they are exposed to. The premise is virtually the same — synergies are achieved when all brand contacts work in concert. While definitions differ, the practice of IMC involves the same success factors and helps organizations build and deepen relationships with their many stakeholders. The following conditions should be considered "necessary," but not sufficient conditions of IMC practice: 1. It must speak to all stakeholders with a "single," consistent voice. 2. It must assume the consumers' point of view. 3. Its strategic communications disciplines must be internally integrated. 4. It must have a clear and consistent message that is more efficient and effective than competing messages. 5. Its messages must cut through the increasingly cluttered commercial landscape. 6. It must foster a two-way dialogue between consumers and itself. 7. It must build bonds that lead to long-term, consumer-to-brand relationships. 8. It must not place excellent marketing ahead of corporate reputation. Thus in the IMC approach, the different communications are in the form of arcs making up a 360-degree circle, at the center of which lies the customer. With too much communication surrounding the customer he Integrated Marketing Communications 9
  • 15. gets confused, he being a center of many brand communications circles and still more if the communications from a single brand are not integrated. Thus the communications need to be spread and integrated on a holistic basis what forms the basis of IMC. Integrated Marketing Communications 10
  • 16. An Analogy – A Symphony Orchestra 'Integrated communications' are like a band. The different communications instruments-advertising, public relations, database marketing, media specialists, sponsorship, interactive, event marketing and the rest - are just like different musical instruments: piano, trumpet, trombone, violin, clarinet, percussion and the rest. This analogy is neither as silly nor as simple as it sounds. The first thing to note is that although all the instruments normally play the same tune, they are not interchangeable; they make different noises. When each plays alone, the melody will be recognizable. But if you think a piano playing Rule Britannia is the same as a trumpet playing Rule Britannia, you are tone deaf. Very few consumers are tone deaf. They will recognize that the underlying messages being conveyed, say, by public relations and sponsorship, are identical, but the tone will be entirely different. The form in which a message (or melody) is conveyed is nearly as important as its content, sometimes more important. Second, all the different disciplines must play in harmony. But, third, it does not always mean they must play exactly the same tune. There are many occasions when they should be playing in counterpoint. On their own, it may not be apparent they are playing the same melody at all. Each may be exploiting its own virtuosity, instead of echoing the others. Badly done integrated marketing campaigns squeeze different communications media into straitjackets which minimize their individual vitality. To force all types of communications to use the same message, Integrated Marketing Communications 11
  • 17. instead of allowing them to deploy their own strengths and complement each other is direly inefficient. The Analogy leaves several questions unanswered: . Who is to be bandleader, and how is the band to be led? . Would the traditional jazz formula be best, in which all the musicians go through the harmonies beforehand, and then more or less do their own thing? . Or is the discipline of a powerful conductor needed, to control the tendency to wander and restrain the egos of the players? A company that wants to make maximum use of the synergy of integrated marketing communication has to do more than simply initiate advertising, direct marketing, public relations and data base management. It requires total management commitment to a multi-faceted program of operations and marketing. Integrated Marketing Communications 12
  • 18. The Components of IMC Integrated Marketing will require strategic combination of two or more of the following basic marketing elements/instruments used in concert to multiply the effectiveness of a campaign: • Advertising (Print/ Television/Radio) - used to inform and entice a prospect about a company's product or service, draw attention to the company Web site and stimulate trial use. • Public Relations - also used to inform, but adds credibility by use of a third party endorsement. • Web Site/ Internet - used by both existing customers and prospects to obtain product and service information and, with the implementation of eCommerce, conveniently purchase online. • Sales Promotion - provides short-term incentives to buy. Best used when offered to prospects who are already familiar with the product or service. • Direct Marketing - used today mostly to establish an ongoing relationship with a current customer or prospect in order to stimulate repurchase and build loyalty. • Special events • Video and audio presentations • Multimedia presentations Integrated Marketing Communications 13
  • 19. There are TWO CRITICAL FACTORS that have the most influence on the effectiveness of an Integrated Marketing campaign. . The first is the strategic combination or "mix" of the basic elements. Achieving the most effective mix is usually the result of experience. . The second critical factor is the consistency of the theme across all elements in the campaign. Logically, consistency is best achieved through the use of a single source responsible for defining the role of each element, creating the theme, and coordinating the timely implementation of the campaign. However, consistency is where most companies who believe they are already integrating their marketing efforts usually fall short. The following Research compiled from the U.S. Department of Commerce, the American Management Association, and the Direct Marketing Association reiterates the fact that strategically combining the basic marketing elements with a consistent theme will impact results: . Average stand-alone direct mail campaign generates 3.3% response rate. . One basic marketing element added to stand-alone direct mail campaign, response rate increases to 5.4%. . Two basic marketing elements added to stand-alone direct mail campaign, response rate increases to 6.7%. . Three basic marketing elements added to stand-alone direct mail campaign, response rate increases to 6.9%. Integrated Marketing Communications 14
  • 20. Factors contributing to IMC's rising prominence 1. Fragmentation of media - both the print and the Television media have proliferated dramatically in the past decade which has resulted in less reliance on mass media and more emphasis on the other promotional options, such as direct mail and event sponsorship. 2. Better audience assessment - More sophisticated research methods have enabled more accurate and specific targeting, leading the marketer away from the mass media to promotional tools that reach only the segment that has been targeted. 3. Consumer empowerment - empowered consumers are more skeptical of commercial messages and demand information tailored to their needs. 4. Increased advertising clutter has diluted the effectiveness of any single message. There seems to be no end in sight to this 'media' proliferation. 5. Many marketers feel that traditional advertising is too expensive and is not cost effective. Hence there is a trend of shifting of budgets from media advertising to other forms of promotions. 6. Database technology can be used to create accurate customer and non-customer profiles for developing highly targeted direct response & telemarketing programs can be implemented. 7. Channel Power - Retail channels are developing power and hence are able to demand promotional fees and allowances from manufacturers, which diverts funds away from advertising and into special events or other promotions. 8. Increased Accountability have led the firms to reallocate marketing resources from advertising to more short-term and more easily measurable methods such as direct marketing and sales promotion. Integrated Marketing Communications 15
  • 21. 4P’s versus the 4 C’s The current revolution in the market has brought about several ‘Differents’. This has led to the replacement of 4 P's of marketing by the 4 C's of marketing. The 4P’s v/s the 4C’s: Not PRODUCT, but CONSUMER : Understand what the consumer wants and needs. Times have changed and you can no longer sell whatever you can make. The product characteristics must now match what someone specifically wants to buy. And part of what the consumer is buying is the personal "buying experience." Not PRICE, but COST : Understand the consumer's cost to satisfy the want or need. The product price may be only one part of the consumer's cost structure. Often it's the cost of time to drive somewhere, the cost of conscience of what you eat, and the cost of guilt for not treating the kids. Not PLACE, but CONVENIENCE : As above, turn the standard logic around. Think convenience of the buying experience and then relate that to a delivery mechanism. Consider all possible definitions of "convenience" as it relates to satisfying the consumer's wants and needs. Convenience may include aspects of the physical or virtual location, access ease, transaction service time and hours of availability. Integrated Marketing Communications 16
  • 22. Not PROMOTION, but COMMUNICATION : Communicate, communicate, communicate. Many mediums working together to present a unified message with a feedback mechanism to make the communication two-way. And be sure to include an understanding of non- traditional mediums, such as word of mouth and how it can influence your position in the consumer's mind. How many ways can a customer hear (or see) the same message through the course of the day, each message reinforcing the earlier images? Integrated Marketing Communications 17
  • 23. The Heart of IMC In keeping with the above trends, there are Five power concepts that go in IMC and make the communications efficient and effective. 1. Customer Focus i.e. Your message must be appealing, relevant and accurately timed and must be based on the understanding and anticipation of what the customer expects and wants, when he wants it, and how he wants it to be delivered to him. 2. Customer Empowerment i.e. you empower your customer to define the relevance, you do not define it for him and do not force the content as per your convenience. You allow him to decide how deeply he wants to be involved in the communications. This concept extends beyond the permission from customer. Her you are asking your customer to take the lead. 3. i.e. you need to be consistent at all the contact points and need to have continuity such that all the roads of different media lead down the same path to the brand. The beauty of your communications lies in that the consumer gets the option only to decide how far to go and not what different objective to go for. 4. Brand Resonance i.e. your communication while creating relationship must stand for something that the customers think is worthy of a relationship with them. 5. Emotional bonding i.e. your brand develops a relationship with your Customer based on the insights about the customer. He is not only loyal to your brand but he treats the brand as a friend, a trustee, a Integrated Marketing Communications 18
  • 24. close relative, or as an inseparable part of his life. In this case he becomes an advocate for your brand and propagates your message himself. In other sense he becomes a contact point for the other consumers. Thus the communications become vital to be managed so well that even this newly created contact point speaks the same voice. Correctly implemented, the IMC program is a continuous cycle of gathering data and implementing response-generating marketing communications, which are based on previously, gathered data. Marketing communications derived from consumer need can build perceived value into your product or service, and separate it from the competition in the minds of your customers and prospects. Integrated Marketing Communications 19
  • 25. Levels Of Integration Integration of communication goes beyond the definition of one message, one voice to which so many marketers ascribe. Integrated marketing communications is not just merely a piece of advertising, a piece of public relations and a piece of direct mail that all look the same. Rather, IMC is the management of all brand contact points through an integrated, consumer-driven strategy. It means realigning your communications from your customer’s perspective so that your public relations is indistinguishable from your advertising, your direct marketing is indistinguishable from your promotions and so on. There exist various levels at which such integration can take place. The following table details each of such stages. Stages of Integration of Marketing Communication LEVEL I Tactical Co-ordination To create ‘one sight, one sound’ by consolidating communications planning. Often leads to attempts at cross-functionality, where teams of specialists from different areas of expertise are formed to increase synergy. LEVEL II Redefining the Scope of Marketing Rather than considering Integrated Marketing Communications 20
  • 26. Communications communications as an outbound activity, the firm looks at all points at which the consumer and the brand are in contact. Most important result of this level of integration is inclusion of Employees as both target for and proliferators of Marketing communications. LEVEL III Application of IT The key ingredient here is the use of databases to capture individual transactions. This enables the firm to market to groups of individuals rather than the average customer at the middle of the segment. LEVEL IV Strategic and Financial Integration In this level two issues are paramount: a. The ability to measure the return on customer investment b. Ability to use the marketing communication to drive organizational and strategic directions. Rather than measuring say, extra sales resulting from an advertising campaign, the firm would now measure the returns from a specific Integrated Marketing Communications 21
  • 27. group of customers against costs associated with that group. Integrated Marketing Communications 22
  • 28. Consumer Psyche & Information Processing Key to effective communication is understanding how consumers process the vast amount of information that comes their way each and every day. To cope, we select only that information that we perceive to be important and ignore the rest. Thus, we limit our span of perception as a way of coping. If the marketing message is to be selected and processed, it must: . Consist of sensory and life experiences that can easily be identified and transformed into a unified concept, . Have mental relationships to other categorized ideas, and . Fit into the categories and mental linkages that people have already created for themselves. Marketing communication messages that are not recognizable, are not related to each other, conflict with what has already been stored, or are simply unrelated or unimportant to the person will simply not be processed, but ignored. Communication only occurs when the consumer accepts, transforms, and categorizes the message. Two models of information processing have been proposed are as follows: Models of Information Processing 1. assumes that it is possible for the marketer to "replace" previously The Replacement Model stored information chunks with new ideas. What is said does not matter as much as how often and how loud the message has been transmitted. With enough exposure, the new will replace the old. Integrated Marketing Communications 23
  • 29. 2. The Accumulation Model of information processing assumes that message consistency is critical since the consumer accepts, processes, and stores information about the product or service relative to what has already been mentally accepted. The storage and retrieval system works on the basis of matching incoming information with what has already been stored in memory. If the information matches or enhances what is already there, then the new information will likely be added to the existing concepts and categories. If it doesn't match, the consumer has to make a choice, either the new information can replace what is already there or the new information can be rejected. If rejected, the consumer would continue to use existing concepts and categories and ignore the new. This is called a "judgment system" - in that consumers match or test new information against what they already have and then make a judgment to add to, adapt, or reject the new material. The judgment system (perceptual consistency) prevents consumers from having multiple concepts or categories for the same message. When consumers reject the information or do not add or attach it to what they already have, there is a failure to communicate. In many cases, the failure to communicate is the result of the marketer being unable to match his or her messages or fields of experience with those of the prospect or customer. Consumers use the same information processing approach whether the new data comes from advertising, sales promotions, a salesperson, an article in a newspaper or magazine or from what their neighbor is telling them. The marketer who presents non-integrated messages risks not having any of his or her messages processed because of the conflict that Integrated Marketing Communications 24
  • 30. occurs in the consumer's information processing system. If for no other reason that the risk of confusion, marketers must integrate their messages or consumers will simply ignore them. As we shall see in the case of the Entertainment industry, Rugrats uses this model of Consumer Information Processing. Via communication across media like computer games, CDs, magazines, books, comic strips, toys, an amusement park, live stage shows, Nickledeon attaches newer information with the prior information and leads to the creation of a Whole Big Picture. Coupled with a good quality product, Rugrats became such a success that a sequel to it is already on its way to premier. Integrated Marketing Communications 25
  • 31. Case I How The Entertainment Industry Capitalizes On IMC As the entertainment industry is forced to become more creative in reaching its audiences, the opportunities for marketing communications are endless. As Hollywood creates more and more ways to communicate with its audiences, the need for integration is paramount. With burgeoning franchises, entertainment companies have begun to delve deeper into marketing strategies that enable them to connect with their customers across their whole range of properties and communication divisions. The hype about integration has created a "buzz" in Hollywood that has the industry turning out some of the best marketing strategies and campaigns in years. Entertainment companies are defining their success with well-thought- out, consumer-driven strategies and are using an array of marketing tools to connect with audiences in more relevant and creative ways. In the process, integrated marketing communications (IMC) is beginning to take center stage as the entertainment industry’s shining star. IMC Takes Center Stage IMC has taken center stage in the entertainment industry as a result of several factors and trends. Two of the greatest of these factors driving IMC principles are:  The proliferation of media choices The proliferation of media has fragmented audiences, making it harder and harder to reach them through traditional means. Long gone are the days when a single 30-second television commercial could capture the attention of an entire target audience. Today’s media competitive Integrated Marketing Communications 26
  • 32. frame includes 12 networks, 213 cable channels, hundreds of radio stations and even more magazines (www.ultimatetv.com). At the same time, consider the number of movies and home videos released each month. Even still, we must add the thousands of websites available on the Internet to this media mix.  The changes in consumer media consumption. As the number of media options has increased, audiences have become more diversified. Viewers are now able to make choices in their media consumption that match their specific interests. Television for the masses is passe. As the number of media outlets is rising, ratings are decreasing. For example, the last episode of Seinfeld drew fewer viewers than a regular episode of the Beverly Hillbillies. It is clear that advertisers must become more sophisticated in their media targeting if they are going to reap the benefits that these changes in media consumption can offer. However, as an industry that is dependent on media for advertising, as well as for the delivery of its product, these facts are even more striking. Hollywood has responded to the situation by flexing its marketing muscle to leverage communication across all of its customers’ brand contacts, not just advertising. This strategy has led the industry to focus on aligning its marketing efforts for a property around all of its company divisions, rather than limiting its marketing power to the division responsible for the main product, such as theatrical or home video. Integrated Marketing Communications 27
  • 33. Using creativity and marketing savvy, the entertainment industry has successfully capitalized on aligning communication vehicles through the following four principles:  Principle I - Focus on the consumer The industry is increasingly becoming more consumer-focused, using media outlets to find out what their consumers want and then deliver it to them through well-defined, specific formats and programming. Entertainment companies are proving that they know this tenet better than most others. The business is using integrated marketing principles to connect with its customers not only through its advertising messages, but also through the entertainment product it offers. As explained earlier, the proliferation of media today has resulted in extreme audience segmentation. For example, the WB network reaches ethnic viewers, FOX offers specific children programming, Lifetime TV’s format targets women, and ESPN attracts sports fans. The rise of such specific television formats indicates that the industry is moving toward segmentation strategies. The effects of audience segmentation in the entertainment industry have led to marketing strategies shaped by the consumer. Consumers shape brands based upon their individual perceptions and judgments, and marketers must measure the significance these brands hold in relation to their targets and build identities around these meanings. Franchises are demonstrating that consumers own the brand through the branding strategies and promotional partners they utilize. For example, networks and shows are starting to brand themselves in consumer-specific ways. As a result, we have seen Integrated Marketing Communications 28
  • 34. the emergence of networks defining their brand identity according to their audience’s perspective. "Everything we do, every contest we run, is from a kid’s point of view," says Cyma Zarghami, general manager and executive vice president of Nickelodeon. "It permeates the way we work and what we do." Such networks are branding themselves through their consumers’ voice with such slogans as Lifetime TV’s "Television for Women." Slogans such as this reinforce that networks are talking to specific customers with specific interests, instead of a mass audience. Case in Point: The Rugrats on Nickelodeon Nickelodeon demonstrates this principle in its explicit commitment to its consumers — kids. Nickelodeon is the creator of the first television network for kids. The network became the 24-hour cable ratings leader for the first time in 1995 and continues to hold the title today. Kids are at the very core of this network. As its website touts, kids are the creators, drawers, thinkers and writers for everything that takes place on Nickelodeon. In fact, the grown-ups behind the scenes display all of the pictures that kids send them and post them on refrigerators throughout the company as a constant reminder of their audience. As a result of this cable channel’s philosophy, much of its programming follows the same lead. For example, The Rugrats, is an animated series about life from a toddler’s point of view and is written completely from a child’s perspective. Debuting in 1991, this hit series has won several awards including the Emmy, Cable Ace and Parent’s Choice. It began as a Sunday morning cartoon and now airs 13 times each week with more than 23 million viewers. Integrated Marketing Communications 29
  • 35. The growing success of this animated series could be trumpeted as the result of the audience perspective upon which it is based.  Principle II - Aligning marketing communications vehicles Another essential communication principle appearing in entertainment marketing strategies involves the various communication tools employed in delivering messages to consumers. The spotlight on the entertainment industry’s marketing strategies is most evident through the creative executions that the various marketing mix elements offer the entertainment industry. With all of the competition, Hollywood can no longer create something and expect people to come see it. Instead, it has to promote it and promote it right. This means communicating with its audiences at every point that they interact with the brand. Chris Moseley, senior vice president of marketing and communications at Discovery Networks, reinforces the importance of alignment of all customer contact points: "I think all four parts of the equation — programming, marketing or promotions (and I use them interchangeably), sales and research — are key factors in how well anything performs." The result is an integrated marketing experience that builds relationships between the company and its consumers. Case in Point: The Rugrats Movie The marketing campaign for the release of Nickelodeon’s The Rugrats Movie demonstrates how a successful entertainment Integrated Marketing Communications 30
  • 36. marketer builds this experience across all brand contacts. The movie was scheduled to open November 25, 1998. The integrated marketing strategy for this animated film based on the TV series already includes computer games, CDs, magazines, books, a comic strip, toys, an amusement park and a live stage show. • The official buildup of the movie began with on-channel promotion, including new TV episodes, leading to one that sets up the movie by revealing that the main character’s mom is pregnant. • Other Rugrats promotional support includes a partnership with Burger King for a Kids Club promotion. • Also in the marketing mix is the release of two computer programs in the month preceding the movie release, one of which is based on the movie itself. • Broderbund Software and Nickelodeon plan to launch numerous cross-promotions with the release of the game, including print advertising, contests and in-theater promotions beginning in September. • Furthermore, the Rugrats marketing blitz includes: (a) A newspaper comic strip (b) A guest appearance at Paramount’s King Island where kids will have an opportunity to meet their favorite Rugrats characters during a "Rugrats Weekend’ (c) A live musical tour (d) A Simon & Schuster book series to coincide with the U.K. release of the movie (e) Rugrats merchandise and hundreds of licenses for Rugrats items (including dolls, board games, clothing, bedding, Integrated Marketing Communications 31
  • 37. videos, fruit snacks, school supplies, greeting cards and party goods) Through this comprehensive marketing strategy, Nickelodeon has brought ‘The Rugrats’ and the movie into the lives of its audience in all ways that it interacts with the brand.  Principle III - Internal corporate synergy Entertainment companies are building alliances across their entire franchises in order to bring their entertainment properties to life across as many mediums as possible. Andrew Capone, senior vice president of marketing for NBC explains, "I want to find a way we can combine a number of our properties, including cable and our stations, to help clients in integrated marketing solutions." In order to heighten the success of their products, as well as those of their advertisers, entertainment companies are realizing that they must build alliances across all the divisions of their brands. The opportunity to tap into their sister companies is certainly an advantage for this industry in capitalizing on this idea of synergy. Twentieth Century Fox boldly executed this IMC principle to successfully market the studio’s first self-produced animated feature. The marketing strategy behind News Corporation’s recent release of Twentieth Century Fox’s Anastasia positioned each division to contribute to the success of the animated feature in the following manner: • Harper Collins published a series of Anastasia-based children’s books Integrated Marketing Communications 32
  • 38. • The Fox network interspersed Anastasia minutes (behind-the- scenes looks at how the movie was made) into its prime schedule • News America offered the cover of its weekly FSI Leveraging the entertainment properties within its own company proved to contribute significantly to the overall success of the film, giving Fox a platform to continue making animated movies in the future. Steven M. Ross, executive vice president of worldwide promotions and product placement at Twentieth Century Fox, further supports, "It’s a huge advantage having such resources available through sister companies." Many marketers in the industry are aware of this fact, and as a result, are making great efforts to build alliances with their other divisions in their companies.  Principle IV - Measurement and feedback loop As the entertainment industry has moved toward more consumer- focused strategies, it has integrated the customer into the feedback loop in order to find out exactly what its specific target is seeking. The Internet is one of the most recent ways that Hollywood franchises are working to close the loop in communicating with their audiences. The Internet allows the entertainment industry to receive first-hand feedback about products from its audiences, while building relationships in the process. The traditional forms of relying solely on Nielsen ratings and box office sales, the industry traditionally only has been able to measure its success according to number of viewers, but never has had the ability to learn much Integrated Marketing Communications 33
  • 39. about their audiences beyond the surface level. The primary interaction it has had with fans has been limited to focus groups. The Internet changes all of that. The interactivity available through this medium enables entertainment franchises to communicate directly with audiences about their likes and dislikes, plot ideas, etc. As a result, the Internet not only builds relationships between these franchises and their audiences, but also provides entertainment companies with valuable information about their audiences that they can utilize in the creative development process and in their marketing communications. Case in Point: Disney.com Entertainment franchises are quickly learning how to take advantage of this new opportunity called the Internet. Disney has long set the standard for marketing success, utilizing several integrated marketing principles such as corporate synergy. Recently the marketing franchise has expanded its ability to connect with its audience through its corporate home page. According to a survey, Disney’s website was recently ranked number nine on a list ranking several websites’ ability to build relationships. Disney.com incorporates several vehicles to connect with its audience: (a) One method Disney utilizes to accomplish this task is through live chat events where kids can talk to their favorite Disney stars online. The use of such tactics is building relationships with their viewers that were never possible before. (b) Another way that Disney.com builds relationships is by expanding the entertainment experience online. Its website features opportunities such as Club Disney, real play areas in Integrated Marketing Communications 34
  • 40. two locations, where they can plan their trips, tours and birthday parties online before they visit. (c) Another part of the website features Disney Blast, a new online service offered to kids featuring games, stories and other interactive opportunities. (d) In addition, the website provides kids and their families direct access to all aspects of the Walt Disney franchise including its movies, the amusement parks, the Disney Channel, Radio Disney, its TV shows, the company’s cruise line, the Disney Vacation Club, the Disney Magazine, and all of the other various company divisions spanning computer software to home video. In this way, Disney is always accessible to kids and their parents. Also, the way in which Disney.com provides audience contact with all divisions of the company helps to reinforce all that Disney has to offer its customers. Kids and parents can click on any one of the departments and send a message to them. Disney.com serves as a model of how companies can expand their audience’s experience with the franchise while helping to strengthen the relationships built through those experiences in the process. The outstanding performances that the entertainment industry has executed certainly suggest that integrated marketing communications deserves a star on Hollywood’s famous "Walk of Fame." However, the industry would be amiss if it did not recognize the ways in which it could further its alignment with IMC practices and principles. The industry’s application of the aforementioned principles is leading marketers to believe that successful entertainment properties are all about good marketing. The industry’s ability to capitalize on such Integrated Marketing Communications 35
  • 41. principles appears to be a formula for success for networks such as Nickelodeon and studios such as Twentieth Century Fox and Disney. Integrated Marketing Communications 36
  • 42. Words of caution: While the entertainment industry has demonstrated its ability to integrate a consumer message across all marketing communications vehicles and company divisions, it still has not mastered the ability to align itself internally. • In several of the entertainment franchises, the synergy across divisions is siloed. Dealing with a sister company may make it easier to start the negotiating process, but in many entertainment conglomerates no formal internal structure exists to make marketing alliances a natural, synchronized process. Having demonstrated the benefits that synergy has to offer, the entertainment industry should work toward fleshing out the internal structures that make this alignment possible. • Companies also have room to grow in their focus on the consumer. While entertainment has made great strides in communicating with children’s markets through new tools like the Internet, many other strategies are still not consumer-driven. A significant number of networks and studios do not have feedback mechanisms in place, or if they do, they are not using them to their full potential in order to deliver on their audiences’ wants and needs. • Entertainment companies cannot rely solely on ratings and box office grosses to learn about and connect with their customers. With the technology available through the Internet, entertainment companies should actively work toward aligning their strategies with this principle. As companies such as Nickelodeon and Disney demonstrate, the benefits of consumer focus are multifaceted and advantageous for both the company and its advertisers. • Last, entertainment franchises must use an element of caution when applying integrated marketing principles. Implementing a strategy that utilizes all parts of the marketing mix, such as advertising, public Integrated Marketing Communications 37
  • 43. relations, direct marketing and sales promotion, does not necessarily constitute integration. A complete commitment is essential to achieve this level of comprehensive communication; simply applying all of the independent tools is not enough. This means aligning the entire company with the same goals, missions, objectives, standards and accountability — the company’s culture, the employees hired, the company’s promotional partners, the types of programming and products produced, and the types of marketing strategies executed. Everything about the company must create the same experience for, and give the same message to, its consumers. It is the application of these marketing principles that demonstrates the entertainment industry as a stellar case study in the field of integrated marketing communications -----------********------------ Integrated Marketing Communications 38
  • 44. Success Factors The Entertainment Industry’s use of IMC, highlights some success factors for effectiveness and these include: • Segmenting valuable customers. • Analyzing profitability. • Examining customer, brand & stakeholder contact points with the company. • Marketing based on consumer differences, not similarities. • Using databases for behavioral segmentation and lead management. • Creating strategic, effective communications-based initiatives. • Driving communications to a new level of customer and stakeholder fulfillment retention. • Achieving consumer satisfaction and bottom-line profitability. 1. The customer becomes the primary focus of everyone. 2. There is no needless duplication of services. PR messages combine with advertising, marketing and internal communications— everything is congruent and clearer to customers. 3. There is almost no likelihood of "the left hand not knowing what the right hand is doing." 4. It fosters intra-departmental cooperation in your company. Workers experience more harmonious working relationships with their peers and senior management. 5. Studies verify increased productivity, which positively impacts the bottom line. 6. Executive "oneness of focus" on mission and results; one mission— one vision with all the "parts" aligned with it. Integrated Marketing Communications 39
  • 45. 7. The core processes of the organization become much clearer and people start pulling together rather than in several directions at once. 8. It takes fewer people, energized around a fewer number of central themes to get more work done than before because human potential and energy is not wasted. 9. Marketing programs become more effective because they are focused and more efficient. They are more powerful in delivering the key message without waste and overlap to no effect. 10. Sales programs become more dynamic because the objectives become much clearer to the existing sales force. The job of the salespeople is made more effective because the "home office" is supporting their steps and making them look much better in the eyes of your customers. Integrated Marketing Communications 40
  • 46. PART II PROCESS OF IMC Integrated Marketing Communications 41
  • 47. Characteristics of an IMC approach Planning for an Integrated Communications program goes beyond merely using the right tool under the right conditions. Strategic planning for IMC is distinguished from the traditional use of multi-dimensional promotions by the following four factors:  An Outside-In approach is used to plan communications – That essentially means that a firm, designing communications, starts with the customer or prospect and looks backward, identifying what the customer deems as important information. This approach helps to deliver the information that the customer wants rather than in the form at a time that the firm deems appropriate. Similarly Tom Duncan suggests the use of Zero-based communication planning – it involves determining what tasks need to be done and which marketing communications function should be used and to what extent.  IMC planning requires comprehensive and detailed knowledge about the customers, prospects and other stakeholders.  An IMC plan is built around brand contacts like packaging, employee contacts, in-store displays etc. Each contact must lbe evauated for clarity and consistency with the overall IMC program.  Control of the IMC plan is highly centralized. The effectiveness of the program is highly increased by Integrated Marketing Communications 42
  • 48. appointing a single person or team to control and evaluate all contacts with targeted customers. Integrated Marketing Communications 43
  • 49. Communications Mix Hierarchy In the process of implementation of IMC, the marketer assumes a major responsibility for developing the marketing program and making the final decisions regarding the advertising and promotional program to be employed. The marketer typically brings to the process a marketing plan, goals, objectives, and perhaps a database that will identify current and potential customers. The agency on the other hand will help research the market, suggest creative strategies, and produce IMC materials. Quite a few times the agency does not have all the internal expertise necessary to develop and manage every marketing tool. Often the agency is an expert with the development & Placement of mass media advertising, and hence is often criticized for their tendency to push mass media as the best form of communication. When the marketers want other communication options, they often hence turn to External facilitators to get the expertise they are looking for. The hierarchy in this case is as shown on the next page. Once the specialist agencies come into the picture, co-ordination and integration of a marketing communications program becomes much more complex. These various agencies view each other as competitors for the client’s dollars and will most likely champion their particular specialty. Thus instead of ending up in coordination and integration, it created a situation characterized by conflict and disintegration. Realizing these challenges, many advertising agencies attempted at redesign to add more internal expertise to foster the goals of IMC. Integrated Marketing Communications 44
  • 50. The Communication Hierarchy Integrated Marketing Communications 45 Marketing Organization Marketing plan Goals and objectives Customer/ prospect databases Advertising Agency Research Creative strategies Production Message placement Specialized marketing communications organizations Media organizations Event management firms Web site designers Sales promotion agencies Direct marketing agencies Public relations firms Mass- media Advertising Event participation Internet advertising Sales promotion Direct marketing Publicity Customer
  • 51. eThe Actual Procss Integrated Marketing Communications is a process and it involves the companies, the communication design/creative agencies and the execution agencies. The first step in this process is consumer research and planning followed by creative and Implementation. The planning is at the strategic level. Generally it relates to the entire strategic framework as to what does the product stand for, its attributes, the differentiation and then segments which it wants to enter. As mentioned earlier, IMC is centered around the customer and has its essence of understanding him to the fullest degree is a must. Thus the plans need to be based which must answer: ? What contact opportunities do I have (taking into consideration the costs and the benefits)? ? What depth do I want to gain in any media? ? What is my media strategy i.e. whether I want to just ensure my presence in the medium or I want to dominate that particular medium? The marketing manager needs to provide the agency with information about the consumer segments, product, positioning ideas, competition etc. This is the basic framework, based on which all the communications are designed. This plan is briefed to the creative and the execution agency and discussed The promotional planner after reviewing all the information should see how IMC fits into the marketing program and what are the objectives set for IMC to achieve. (Thus the objective could either be only to Integrated Marketing Communications 46
  • 52. communicate to the customer about the product or service to achieve a certain market share or growth in sales) The next step is to set objectives in terms of specific communications goals/ tasks for each tool. The next step following is the designing of the creative which rests on the creative / advertising agency. Nowadays increasingly most of the advertising agencies handle the entire account of a brand single handedly (even including the consumer researches for media and advertising). The creative here is designed for all the communications whether the tangibles or the intangibles e.g. packaging, print ads, TV ads, interstitial etc. This also includes the coordination of the events and PR based on a one-voice platform. The final step in the process is the Implementation. This includes the actual communication and the different activities communicating about the brand like promotions and events etc. ANALOGY with the orchestra Thus…Back to our analogy of the Orchestra - The score (written by ORCHESTR the company) is interpreted by the maestro (the agency), who directs the a (the functional communications tools). Consistent communication of key product and corporate messages, combined with visual continuity in art design and direction, are critical factors in generating market awareness and building a strong brand image. Integrated Marketing Communications 47
  • 53. Model for Planning IMC Tension, Stress, creativity, deadlines, collaboration, synergy, conflict, misunderstandings, expertise, complexity, details, details, details….are all things that characterize the process of preparing to launch an IMC campaign. There are many different models that guide the process of planning an IMC campaign. One such model being discussed is the ‘Strategic Planning Triangle’ – proposed by advertising researchers Esther Thorson and Jeri Moore in their book ‘Integrated Communication: Synergy of Persuasive Voices’. As shown alongside, the apexes of the planning triangle entail the segment(s) selected as targets for the IMC campaign, the brand’s value proposition, and the array of persuasion tools that might be deployed to achieve campaign objectives. (a) The firm starts with customer, prospect, stakeholder definition, as identification and specification of the target segment as a paramount apex of the triangle. Building a consensus between the client and the agency about which customers will be targeted is essential to the campaign’s effectiveness. Complex IMC campaigns may end up targeting multiple segment. In such a case it is critical to analyze if Integrated Marketing Communications 48 Prospect Definition Brand’s Value Proposition Persuasion Tools evaluation Strategic Planning Triangle
  • 54. and how different target segments will interact to support or disparage the campaign. The description of the target hence has to be both Personal and Precise. (b) The second important apex in the Planning triangle entails a specification of the Brand’s Value Proposition. A brand’s value proposition is a statement of the functional, emotional, and self- expressive benefits delivered by the brand that provide value to the customers in the target segment. Factors like what the brand has stood for in the past, as well as what new types of value or benefits one wants to claim for going forward need to be considered here. (c) The final apex of the planning triangle considers the various persuasion tools that may be deployed in executing the campaign. The mix of the various tools should depend on the objectives that are set for the IMC campaign. Collaboration between the agency and the client is the key to ensure that the approval process proceeds in a timely fashion. The Process of an Integrated Marketing Program thus: . Encourages the establishment of a marketing-team approach to discuss strengths and weaknesses, mission and vision, and niche and quality, and to reach a consensus on the primary messages to be delivered to priority audiences. Integrated Marketing Communications 49
  • 55. . Involves working in teams, typically with members from other campus offices, to reach prospective students, parents, donors, and community and government officials with maximum impact. . Uses quantitative and qualitative research techniques, including focus groups and survey research, to determine constituent attitudes and opinions, and effectiveness of various communications messages and techniques. . Calls for a communications analysis to determine what messages are being sent to key audiences, including the sequence and flow of these messages. . Calls for the examination of your existing message vehicles for clarity, consistency, and effectiveness. Combines this assessment with the results of your research to provide your key audiences with the information they need, in the ways they have asked to receive it. . Focuses on long-term advantages and incorporates interactive communication to develop more personal relationships. May include the use of technology like email and the World Wide Web to get feedback from key audiences. Integrated Marketing Communications 50
  • 56. Case II Godrej Consumer Products Ltd. The Godrej Group - Corporate profile Everyday, every Indian encounters the ‘Godrej’ name sometime somewhere. A person may begin the day bathing with Godrej soap, shaving with a Godrej shaving cream, storing clothes in a Godrej Storewell cupboard, cooking food in a Godrej cooking oil and preserving it in a Godrej refrigerator. Money and valuables are kept in a Godrej safe, work is done on a Godrej computer or typewriter while sitting on a Godrej chair and drinking a Godrej fruit drink. Innovation has been the key to the growth of the Godrej group. It is this spirit that has built Godrej and carried it for over a hundred years. Existing in diverse industries ranging from cupboards to soaps, hair dyes to edible oils, and packaged foods to refrigerators, the group in recent years has forged several partnerships with international giants like General Electric, Pillsbury, Fiskars and Sara Lee, bringing Godrej membership in the Global village that will carry it forward into the 21st century. Godrej has always been a crusader for a better world with programs that benefit endangered forests, wild life and mangroves. Every year the Pirojsha Godrej Foundation dedicates funds towards promoting education, housing, social upliftment, conservation, population management and relief of natural calamities. Integrated Marketing Communications 51
  • 57. GCPL – An Overview Godrej Consumer Products Limited (GCPL), has started operations w.e.f. 1st April 2001. This new company is the result of the demerger of Godrej Soaps Limited, the flagship company of the Rs. 34 billion Godrej Group. GCPL is a true FMCG business with focus on four key markets:  Personal care with brands like All Care, Fair Glow, Cinthol, Nikhar, No.1, Godrej Shaving Creams etc.  Hair care – Godrej Shikakai. Crowning Glory, Color Soft, Color Gloss, Anoop Hair Oil etc.  Fabric care and – Ezee and Trilo  Household care – Godrej Liquid Cleaner With a turnover of Rs. 470 crore, the company employs 950 persons and has two modern manufacturing facilities at Malanpur (M.P.), and Silvassa (U.T.). GCPL is India's largest marketer of Hair Colourants and Liquid Detergents and the third largest marketer of toilet soaps. GCPL is committed to providing world-class products and services and its efforts are aimed at fulfilling the daily needs of consumers through innovative, value for money, products that improve their quality of life. GCPL is a high growth, highly profitable FMCG operation. It will own all its brands among which are the high profile Cinthol, Fair Glow, Ezee and Godrej Hair Dye. GCPL is expected to have ROCE and RONW ratios comparable with the best FMCG companies in India. It is a professionally managed company Integrated Marketing Communications 52
  • 58. under the leadership of Mr. Adi B. Godrej, as the Chairman and Managing Director. Associate Companies include Godrej Industries Ltd., Godrej Sara Lee Ltd., Godrej Foods Ltd., Godrej Agrovet Ltd. and Godrej Properties and Investments Ltd. IMC and its importance at Godrej Consumer Products Ltd. Mr. Girish Korde, Brand manager, FairGlow, defines IMC as “ a multi- dimensional, multi media communication system that is based on a pre-designed strategy. It necessitates across the board implementation for effectiveness”. The Integrated marketing process is being implemented by Godrej Consumer products for all its brands across product categories. This is because with a slate of launches and relaunches, it is very essential for the brands to not lose focus. Besides concentration of communication on a central theme, with ‘one look, one voice’ enhances the recall and Impact of communication on the consumers. Godrej also believes that use of Integrated Marketing Communication helps the brands to get a noticeable ‘Share of Voice’ and ‘Share of Mind’. In today’s arena where the messages need to make an effort to stand out of the immense Clutter and where the messages are prone to different interpretations in different contexts, use of Integrated Communications reduces the risks associated with such loses. Integrated Marketing Communications 53
  • 59. The use of Integrated Communications also leads to an emergence of a sharper brand personality as the personality gets re-inforced over usage and exposure to the audiences. In fact Mr. Girish also specifies that only Integrated Communications is often not enough to ensure all the benefits. The process of integration of communication should be complemented and supported by the Integration of the Product and Marketing functions too. This essentially means that the product should live upto the expectations created by the communication and all the extensions should also be integrated with the overall brand. Hence the FairGlow brand was extended to Fairness Creams and innovations like the sachets packs etc. continued to deliver the brand promise in an integrated and True manner. THE BRAND - FAIRGLOW Launched in Jan 2000, the brand FAIRGLOW has captured 3.5% market share, in some areas where it has been launched. There has been overwhelming consumer response to this unique product from Godrej Soaps. Letters are being received by the company which reveal that consumers who used FAIRGLOW have become noticeably fairer in a short period of usage. The Objective of the brand – ‘Creating an entirely new category in the stagnant toilet soaps market’. The Mission for the FairGlow team - ‘To work towards ensuring that the brand maintains it’s market creator and leader status’ The Product - FAIRGLOW is a high quality toilet soap with 76% TFM (total fatty matter) and an excellent floral perfume. It is packaged in a polyester Integrated Marketing Communications 54
  • 60. wrapper with attractive graphics. FAIRGLOW is available all across India and has an introductory price offer of Rs. 10.00 for a 75 gm pack. The Formula - FAIRGLOW has a unique Bio-extract ‘Natural Oxy-G’ that is of vegetable origin and absolutely safe. Its natural action involves reduction of the black melanin in the skin without changing the skin’s natural balance. The Natural Oxy-G also helps remove blemishes to give the user a smooth and glowing complexion. FAIRGLOW therefore, provides fairness for the face and the whole body without any extra effort. In sum, it gives the twin advantages of a clean and fresh bath while also providing the fairness benefit. Activities undertaken by FairGlow:  Television advertising on a large scale to ensure awareness  Magazine and News paper advertising  Press articles and other public relations  Outdoor advertising –Hoardings  FairGlow Express  Net advertising  Skin care section – advisor etc.  ‘FairGlow Face of the Fortnight’ series  Radio advertising (FM)  Seminars on skin care  Events – friendship day, valentines party etc.  Direct advertising to members of SIBHA ( South Indian Beauty and Hair associates)  Promotions – both trade and consumer Integrated Marketing Communications 55 FairGlow Express
  • 61. The Process Of Communication Generation The component design – Factors: In the process of designing the communications mix, there are various factors that are taken into account at Godrej Consumer Products Ltd. The mot important factors that have a bearing on the variables in the mix are: (a) The objective of the brand communication – a brand that seeks to gain awareness will have greater proportion of mass media. Thus maintaining the brand reputation and developing brand awareness would see two different mix of target contact points. Also the magnitude of the objective would also be a contributing factor. For example ‘gaining a 5% share of the competitor’s market would require a more aggressive strategy as compared to an objective of gaining a 2% market share’ (b) The competitors’ activities – Selection of nuances between the available options at times is also based on the actions of the competitors. Thus if the competitor is making efforts through the trade promotions to create ‘dealer push’, a brand like Cinthol would splurge on mass media or create a consumer promotion, to create a ‘Consumer Pull’ (c) The stage of the Product Life Cycle in which the brand operates will also be a factor in the formation of the communication mix. (d) The Brand Philosophy, character – A brand that symbolizes and associates itself to Safety, Care, Environment etc. would lend itself easily to collaborative advertising which may not be the case with all brands. (e) Product Category is yet another actor. Some brands like Cinthol are youthful in character and hence lend themselves to Events, Mass Integrated Marketing Communications 56
  • 62. media etc. but a personal care product like Condoms may not lend themselves to Outdoor communication like the Trains, Hoardings etc. (f) The Target group also plays an important role in the communication mix definition. Thus a brand like FairGlow lends itself more to Events promotion as compared to a family brand like ‘All Care’ (g) The Impact of Expenditure that a brand would earn also be of consideration. Thus thanks to the novelty factor attached o the FairGlow brand, the impact of the expenditure incurred was quite higher as compared to the expenditures incurred by Cinthol. (h) Qualitative parameters like the Brand Image, Brand Personality also would be a decisive factor in the process of strategizing for Communication. (i) Geographical diversity of a brand and the regional preferences and performances are another factor to be taken into account. Thus if Direct marketing has always shown a poor response in the Southern markets, which happen to a stronghold area for the brand, the strategy would reduce the proportion spend on Direct even if it may seem to a desirable alternative. (j) One of the most important parameters in the decision making would be the Budgets allocated to the brand for the communications exercise. As these budgets would be based on a forecast of the market’s purchasing ability and other factors, this actor is of paramount importance to ensure the viability of the brand. Integrated Marketing Communications 57
  • 63. (k) And of course the Skill and the Experience of the Brand manager also is important in the process of strategizing the communications mix as that often happens to be a source of innovations and experimentation. The Agencies Involved:  Client – Brand Team of Godrej  Creatives and Strategy - All of the communication for most brands is handled by Mudra excepting Cinthol, which is handled by Leo Burnett.  Media Buying and Planning – This function is centralized with Madison, the Agency Of Record for Godrej.  Specialists – Most of the times, Mudra proves to be self-sufficient agency for functions like direct marketing etc. As and when required, Mudra internally outsources specialists for tasks where it may not be as competent (Net advertising)  Others – Besides these agencies at times there are Event management outfits etc. who may be involved for specific events. Factors that lead to smooth flow of the process:  ‘Centralization of communication’ is an essential for ensuring that the communication flows the way it is expected to. In fact for all the regional sales zones, the communication is designed at the corporate office by the marketing team keeping in mind the inputs from the Regions. The communication plan along with the creative is then passed on to the regional areas, where they are implemented.  The existence of one central agency for all of its communication facilitates coordination and effective implementation of various communication strategies.  An effective Creative director would be a great benefit to the communication process, as he would not only germinate the ‘Big Idea’, Integrated Marketing Communications 58
  • 64. but would also mobilize the various specialist aid required at all points and time for communication implementation. Integrated Marketing Communications 59
  • 65. The methodology adopted at Godrej Consumer Products Ltd.: 1. The brand team identifies the objectives of the brand and the overall strategy. 2. From the strategy develops the details of the consumer (target group), short term and long term objectives etc. 3. The marketing brief is explained to both Madison and Mudra executives. 4. The creative teams gets to work to crystallize the idea that would communicate the message. 5. The plans for media are prepared through a series of meetings between the three concerned parties (FairGlow brand team, Mudra CS and Account Planner, Madison executives) 6. In keeping with the drafted media plan, creatives would be designed for the various media. 7. In case of special events, promotions etc. too the execution plan is coordinated with the agency, which designs the creatives for the same. The process of Implementation of IMC at Godrej Consumer Products Ltd. Integrated Marketing Communications 60 Client’s Marketing Strategy Creative agency - Mudra Agency of Record - Madison Specialists – Events etc. Specialist outfits - Net advertising, Direct Marketing etc. Communication Strategy Execution (Creatives) Media Strategy Event Strategy Event Creatives Outsourcing for Certain areas of Strategy
  • 66. The responsibility of coordination of all the brand building efforts rests with the Brand Team, which is the Final authority on all components and mixes adopted by the brand. While the Brand team has complete freedom to execute strategies that are in keeping with their brand philosophy, they also keep in mind the association of the brand with the Corporate Brand – Godrej and the synergy between the two brands. This ensures that no brand lends a negative rub-off to the corporate brand and works within its purview, enhancing it at the same time. The entire process of implementation of a communication program is documented in a confidential “BRAND Book”. This book contains not only the process adopted, but also contains update information of all the communication activities conducted under the various brands. The Corporate Brand GODREJ According to Mr. Korde there exists a two-way relationship between the corporate brand Godrej and each of the brands in the Godrej Stable. The Godrej brand stands for TRUST, RELIABILITY and QUALITY and that is an integral part of each brand that evolve with the Godrej Name. The Godrej name also lends stability to the new brand, reducing the efforts required to build a new brand. Integrated Marketing Communications 61 The Godrej Brand Indivudual brands (FairGlow, Cinthol etc.) Two-way synergistic relationship
  • 67. On the other hand, with newer brands emerging from Godrej, the Godrej brand too earns a younger, vibrant and versatile image. Each brand manager ensures that his brand philosophy lies well within or is related to the overall Godrej philosophy of commitment to Quality and well-being of the consumer. The senior management (Board of directors et al) ensure that the vision of the company translates into brands that are diverse and yet converge synergistically under the Godrej Brand. -----------********------------ Integrated Marketing Communications 62
  • 68. Issues In Co-Ordination Of An IMC Campaign Issue I - Stages of Integration of Marketing Communications The IMC program can be integrated at several Stages. The company needs to identify which level is it at currently, and what does it seek to achieve in a specific campaign. The following table details the various stages and explains them alongside. Levels of Integration Explanation Awareness Stage Those responsible for communications realize that a fragmented approach is not the optimum one. Planning Integration The co-ordination of activities. There are TWO broad approaches: 1. Functional Integration - which co-ordinates separate tools to create a single message where appropriate. 2. Instrumental Integration – combines tools in a way that they reinforce one another. Integration of Content Ensuring that there are no contradictions in the basic brand or corporate messages, integrating Integrated Marketing Communications 63
  • 69. themes of communication to make same basic messages. Formal Integration Using same logo, corporate colours, graphic approach and house style for all communications Integration between planning Basic content remains the same periods from one campaign to next or the same executional approach is used in different projects. Intra-organizational integration Integration of activities of all involved in communication functions. Inter-organizational integration Integration of all outside agencies involved in the firm’s communication activities. Geographical Integration Integration of campaigns in different countries – strongest in large multinationals operating globally. Integration of publics All communication is targeted at a segment are Integrated (Horizontal) or All communication targeted to different segments are attuned (Vertical) Integrated Marketing Communications 64
  • 70. Issue II - How many Stakeholders should be taken into Account: A well-managed IM program identifies all key stakeholder groups and the impact, both positive and negative, that each can have on an organization. As Tom Duncan and Sandra E. Morarity, point out in Driving Brand Value, there are five reasons why all stakeholder groups must be taken into consideration in integrated marketing: 1e. A value field of int ractions: A company exists within a value field (rather than a linear value chain) of stakeholder interactions. Companies communicate directly with customers and retailers at the same time retailers are talking with customers and customers are talking among themselves. The interactions among suppliers, distributors, and even competitors can affect brand value. 2. Stakeholders overlap: An example of the integrated nature of stakeholder relationships is the employee stakeholder group where a person may also be a customer, an investor, and a voter in the local community. These interacting and overlapping relationships demand that a company be strategically consistent in its basic core values and brand messages. A company can't say one thing to investors, something else to employees, and still another message to customers. 3. Integrity builds trust: Integration means unity of effort or purpose. When an organization becomes more integrated, its interactions become more consistent, its reputation more distinct, and its stakeholders more trustful. Integration produces integrity because an organization seen as working together rather than as a collection of fragmented, autonomous functions is perceived as being more sound and trustworthy-prerequisites for sustaining relationships. Integrated Marketing Communications 65
  • 71. 4. Brand equity equals support: Just as brand share is the result of a brand's customer franchise, brand equity is the result of a company's stakeholder franchise. All stakeholders, not just customers, choose to what extent they support a brand or company. People have a choice where they work; investors have a choice of investment opportunities; and customers have an ever-increasing choice of what they buy. In other words, people choose to be stakeholders. And when they do, this gives them the right to understand and influence what a company does. A brand exists in people's minds; it is owned by them, as much as by the company. 5. Profitability is the relationship bottom-line: Profits can be improved by increasing revenues and/or decreasing costs. Therefore, all stakeholders can affect the bottom line as their actions can have an impact on costs, as well as revenues. Both can increase or decrease depending on the efforts, attitudes, ideas, and support of all stakeholders. Actions of groups such as the financial community, government regulators, and employees can often affect profits more quickly and significantly than can changes in customer behavior. Issue III - Importance of teams Creativity in the preparation of an IMC campaign can be fostered by trust and open communication that are hallmarks of effective teams. The position of the creative director in an agency becomes special as much like the maestro of the symphony orchestra, the creative director must encourage personal excellence, but at the same time demand team accountability. Integrated Marketing Communications 66
  • 72. Principles to be relied on in orchestrating the teams:  Take care in assigning individuals to a team in the first place. It is important t be sensitive to existing wok loads and keep in mind the proper mix of expertise required to do the job for the client.  Take time to know the work style of each individual to ensure that you create the most conducive environment.  Make teams responsible to the client – empower them!  Beware of adversarial relationships between individuals and teams.  Rotate teams to foster fresh thinking. Issue IV - Problems of coordination As per the research by Beard in 1993, one of the major hurdles to IMC is the question of who should coordinate the programs- the client or the agency? Who will handle the IMC programs – the client or the agency? Who should be primarily responsible for it? The answer is provided by the research studies done by George S Low of Texas University combined with the earlier researches done in this field. The results of their studies suggest that the clients should be responsible for the strategic direction and planning which form a basis for the IMC programs, while the agencies should be responsible for message consistency and coordination of communications programs. Further the studies suggest that the clients have more room for IMC improvement in their strategic planning role than do the agencies in their tactical implementation role. Nevertheless the key word in the role of agencies is consistency. As much lip service as advertisers give to pursuing the "one-voice" and "seamless communication" that a well-designed IMC program can provide, Integrated Marketing Communications 67
  • 73. there seems to be one major roadblock to implementation: the advertisers themselves! According to John McLaughlin, a marketing consultant, the reasons lie in: • Clients often don't see a clear-cut cost advantage in dealing exclusively with a primary agency rather than several suppliers. • Clients often don't have confidence in the ability of advertising agencies to deliver specialized services. • Clients have strategic concerns about putting all their eggs in one creative/ executional basket. Due to these concerns at times the firms not only hesitate to use the services of the newly developed capabilities but in fact also delay the implementation of the IMC program itself. Integrated Marketing Communications 68
  • 74. PART III REINVENTING THE AGENCY Integrated Marketing Communications 69
  • 75. ENREINVTING THE AGENCY Thomas Eppes, president of Charlotte, N.C. based Price/McNabb sees a change arriving, a trend that looks at a ‘New Avataar’ of an agency. He says, "I think the change is going to be so dramatic that in the future there won't be any such thing as an advertising agency. . . We have begun to refer to ourselves as a communications company, and that might change because we are getting involved with our clients' business in ways that go beyond communications." IMC is a specialized concept and while many agencies claim to deliver on this, there are truly very few agencies capable of integrated communication. Agencies having separate cells/departments for different functions e.g. LINTAS has Pathfinders (Research), LinOpinion (PR), Linteractive (Net related communications), Advent(Events) and Lintas Direct(for Direct Marketing); Similarly Ogilvy& Mather with Ogilvy One, Ogilvy Rural, Ogilvy PR; HTA – with IPAN, FULCRUM, HTA Direct etc. are some such agencies. According to Mr. Ajay Kelkar, Sr. Marketing Manager, Shoppers Stop, “It has been my experience that there are two stands one must consider before identifying whether the brand should take a specialist route or a one-stop shop route. These points are: 1. Can you afford to have specialist agencies, as these agencies would mean splitting your marketing spends across various agencies. 2. The Creative approach generally is different for mainly three components – Public relations, Direct Marketing and Advertising. Can your agency handle the contradictions within, or do you have the resources (time and expertise) to consolidate them at your end. Integrated Marketing Communications 70
  • 76. In case too many agencies are involved in the branding process, the control generally resides with the brand team who provides guidelines for implementation and where the agencies’ tasks are often only left to the execution. And that’s not enough reason for the agency to exist. Instead a route to a common agency who could provide specialist skills under one roof, either from its internal processes or through Out-sourcing could be ideal”. Need for a One-Stop Shop Agency  Strategizing with the brand communication with several agencies, leaves no meaning to the brand route as there tend to be too many so- called ideas, conflict of interests etc.  Dealing with one-agency aids quicker implementation of the strategies, due to less time involved in co-ordination.  Reduces the problems of coordination and duplication, as all the concerned entities know well enough the objectives and the directions.  The merging of ideas prove to be a ‘synergistic beauty’, as there are rare clashes between the creatives for various media.  Besides after working for all communication with one agency, there arrives a point where the brand team and the agency vibe well and therefore there exists a comfort zone that allows free flow of ideas. Pros and Cons of Integrated services: Proponents of Integrated marketing and one-stop shop services agency contend that maintaining entire control of the promotional process achieves greater synergy among each of the communication program elements. They also note that its is convenient for the client to coordinate Integrated Marketing Communications 71
  • 77. all of his marketing effort. An agency with integrated marketing capabilities can create a single image for the product or service and address everyone from the wholesaler tot he consumer with one voice. On the other hand opponents of such agencies say that the providers get involved in political wrangling over budgets, do not communicate as often and do not achieve synergy. They claim that the efforts by agencies to control all aspects of the promotional program are nothing more than an attempt to hold on to the business that might otherwise be lost to competitors. What Clients Seek from A One-stop Shop agency? According to Mr. Korde, Brand manager, Fairglow, a one-stop agency should be:  Self sufficient in the major areas of service like creative for mass media, direct marketing, outdoor etc.  If instead the agency manages to obtain specialists in each field, while delivering the quality insisted, that would be desirable too. In such a case, the Client Servicing executive and the Account planner would act as Gatekeepers to ensure only the Fittest fits into the picture.  The agency needs to be Flexible, since plans and implementation ideas are constantly evolving.  But the most important and major influencer in most cases is the agencies ability to understand the Brand, the category and the other players in the market, Its expertise at a cohesive Strategy Development, and the ability of conversion of this strategy into a beautiful blend of components. Integrated Marketing Communications 72
  • 78. PART IV EVALUATION AND BARRIERS Integrated Marketing Communications 73
  • 79. Evaluation – IMC Audit With today's marketplace conditions, emphasis must now be placed on retaining and growing the value of existing customers, as much as on acquiring new ones. Consequently, companies are setting up cross- functional processes and making other structural changes to better manage brand relationships. This means there is an increasing need to audit these internal processes to make sure that they are, in fact, integrated, and operating efficiently and effectively. Recognizing this, Tom Duncan and Sandra M. designed the Integrated Marketing (IM) Audit. IM Audit findings should be used in conjunction with customer satisfaction and other types of output controls. In other words, an audit should not be used in place of, but in addition to, traditional output controls. Who should do it An IM audit should be done by an outside, objective team and should be a census (not just a sample) of the managers of all departments impacting on brand relationships. At the audit orientation meeting with top management, the audit instruments are reviewed and customized to fit the organization's structure and needs. Audit Tools The audit tools include three basic interviewing instruments, as well as a variety of optional tools depending on the type of business and how in- depth the organization wants the audit to be. 1. Knowledge, Attitude, and Practices Questionnaire This questionnaire determines the respondents' knowledge of the marketing Integrated Marketing Communications 74
  • 80. and marketing communication plans and targeted audiences. Answers to these questions are then compared to what employees are actually working to accomplish. Specifically, this instrument evaluates the following areas and conditions: Objectives. What are the target/stakeholder priorities? Which stakeholders are most important? Is there agreement on communication objectives and the brand's positioning among the various marketing groups/departments/ functions? Does the objective-setting process include everyone who contributes to creating messages? What are the key messages for each of the target audiences? Organization. How much agreement exists among and within the groups on the responsibilities of the various marketing communication departments/functions? How is coordination managed? Who is responsible for coordinating communication efforts? To what extent is managing brand relationships a cross-functional process? Customer Databases. To what extent do customer databases exist within the organization? How accessible are they, and how often are they used? What are the procedures for capturing customer dialogue and other interactions? Is there sharing of databases, market research findings, and other types of planning information? Contact Points. Are these identified? What messages are being sent? Are they consistent? Do they amount to a strategy? Are these experiences measured and analyzed? Who controls them? Integrated Marketing Communications 75
  • 81. Integration. What's the brand's current level of integration? What are the advantages and disadvantages of integration? What are the major barriers to being more integrated? Outside Agencies. To what extent are marketing communication agencies involved in strategic planning? How much communication/sharing of ideas is there among clients' agencies? Interactivity. How far has the company moved into interactive, two- way communication with customers? Planning. Does the organization use zero-based planning, especially for annual and short-term programs? To what extent are objectives based on some kind of prioritized SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis? To whom are testing results distributed, and to what extent are they used in planning? 2. Communication Network Survey This is a matrix of closed- ended questions to pinpoint the following information: Who talks to whom, how often, and about what? Who drives planning and decisions? Who influences them? How often are respondents involved in MC planning (formal/informal)? What information sources do they read? How much and what kind of information sharing is there (research, other information)? What are the patterns of internal communication among departments? Is one department doing more talking than listening? Integrated Marketing Communications 76
  • 82. 3. Content Analysis All marketing communication or planned messages used by the company over at least a 12-month period are contently analyzed to determine whether they are consistent with marketing communication objectives? Whether key messages are appropriate for key audiences; and whether there is consistent portrayal of company/brand positioning and image; and the amount of creative strategy and execution consistency. Specifically, the analysis looks at the following elements: the objective of the piece, the audience, key themes, the tone, brand/corporate image/position cues, use of response devices (active and passive), and mission/vision cues. Content analysis findings are then compared with interview findings to determine the organization's actual level of integration. The content analysis also helps identify gaps in performance. What Can Be Learned From an IM Audit? The benefits of auditing the organization, and the processes that are responsible for acquiring, retaining, and growing customer relationships, can uncover major inefficiencies and integration gaps. These may include: Confusion about objectives. In one company, managers gave nine different responses when asked what the corporate marketing communication objectives were and ten different responses for the brand marketing communication objectives. When people are working against different message objectives, it is impossible to have message consistency; a facts subsequently proven by a content analyses undertaken as part of the Audit. Lack of agreement on message themes. A retail chain had begun advertising "Low Prices Every Day." However, there was no agreement Integrated Marketing Communications 77
  • 83. among managers on what this meant in the context of the chain's pricing strategy. Interviewees offered a total of seven different explanations of what this new strategy involved. None was given by more than 15 percent of those interviewed. Another example: In a national consumer goods company, one message theme was used in 100 percent of television advertising, but only 22 percent of other advertising; another theme was used in 80 percent of television advertising, but only 20 percent of sales promotion materials and collateral materials (of which there were more than 100). Messages not targeted to primary stakeholder groups. In one company it was found that 24 percent of all printed messages were not targeted to any of the high priority stakeholder groups identified by management, and only 1 percent were specifically directed to the target audience rated most important. Not enough information available. In almost all the audits conducted, the majority of marketing managers say that half the time they do not receive enough information from other departments to do their jobs effectively. The types of information frequently mentioned as difficult to get were sales results, research results, and promotional and other special marketing plans for specific events and programs. Limited use of research results. One packaged-goods company was spending approximately $150 million on marketing communication. Yet 37 percent of the managers said they did not know of any market analysis being done by the company, 33 percent said some was being done but didn't know if it was being used, and 15 percent said very little was used. Integrated Marketing Communications 78
  • 84. Little knowledge of annual planning. In one company, 60 percent of the managers did not know how the budget was allocated among departments, and half of the managers did not know to what extent each year's communication plan compared to the previous one. Lack of agreement on which stakeholders are most important. In a health care facility, patients/families received the third highest rating when all responses were averaged, but were ranked eighth by top management responses. Political leaders were ranked ninth, but third by public affairs/public relations. This was in response to the question: "What is the overall importance to the whole organization of the organization's stakeholders?" Limited use of computers for networking and consumer databases. One company had a relatively small number of industrial customer; yet it did not capture customer buying behavior information, although there were many opportunities for doing so. Unexamined Assumptions An audit can identify problems a company doesn't even know it has. For example, while auditing a high-tech manufacturer (annual sales over $300 million), the auditors were told that the company was working hard to apply for the Baldridge Award and also was getting ready for its ISO 9000 evaluation. Consequently, the manager of marketing services was confident the company had maximized the integration of its processes and was doing everything it could to integrate its marketing communication. The audit discovered, however, that the marketing communication department had little knowledge of, and made little use of, the company's databases even though the company had fewer than 200 customers. (Most of the company's marketing communication messages were in the form of ads in industry trade magazines.) Integrated Marketing Communications 79
  • 85. Thus although the IM Audit was designed to be an evaluation tool, it also provides a road map for showing how a company can become more integrated. The audit provides an objective, well-documented list of what must be changed in order to strengthen brand relationships. Integrated Marketing Communications 80
  • 86. BARRIERS TO IMPLEMENTATION IMC is indeed enjoying a growth in awareness, particularly among larger companies. Nearly three fourths of the companies surveyed report using a database to better target their customers- an essential part of implementing IMC; but only 30 percent say they are doing extensive profiling and segmenting of customer buying habits using a database. This suggests that many companies have not yet reached a full implementation of IMC. The widespread attention paid to IMC is largely a function of its strong intuitive appeal - it makes good sense. Despite its appeal, more than a decade has passed since the concept was first introduced, and most major U.S. corporations have yet to fully implement the foundational ideas contained in IMC. Proponents of IMC are left with a compelling question, a variation of a rhetorical question: If IMC is so good, why isn't it being fully implemented in corporate America? Case in Point: Procter & Gamble - The World's Great Consumer Products Company Procter & Gamble is considered by business scholars to be a world-class marketing company. Like the Nike brand, Procter & Gamble possesses some of the most recognizable brands in the world including: Tide detergent, Crest toothpaste, Jiff peanut butter, Cover Girl cosmetics, and Duncan Hines cake mix. It also has dominant market share with many of its premier brands. For some time now P&G has been lauded for its efforts in implementing the Integrated Marketing Communications. But is Procter & Gamble a perfect IMC exemplar? If beginning with stakeholders and speaking to them with one voice across all communications channels is an important criterion of IMC, the answer must be "NO." Integrated Marketing Communications 81
  • 87. Despite Procter & Gamble's marketing preeminence, it has a history of internal and external communication blunders: • Procter & Gamble publicly mishandled both the Rely Tampon crisis and allegations that their packaging symbol documented the company's satanic links. • Recently, Procter & Gamble lost face publicly and alienated employees when it was revealed that the company had phone-tapped three employees they suspected of leaking company information. • This was followed by a botched job of dealing with some of the physiological effects of its new fat substitute, Olestra. Without considering public reaction, they allowed their scientists to term the discharge of Olestra, "anal leakage" (Henkoff, 1996), raising another wave of public controversy. • Lately Proctor & Gamble shot itself in the corporate reputational foot again. The Chief Financial Officer (CFO) announced to the financial media that Proctor & Gamble fully expected to meet its earnings forecast for the end of the quarter. Two weeks later, new CEO Durk Jager was forced to announce to the same media that they had badly overestimated their quarterly earnings and that the company would fall significantly short of its quarterly earnings forecast. Over the following week, the company's stock fell precipitously as shareholders and financial markets lost faith in the venerable company. The Proctor & Gamble Board of Directors subsequently fired Mr. Jager. Despite characterizations to the contrary, these examples illustrate just how far away Proctor & Gamble has been operating from the necessary IMC condition of speaking to all stakeholders with one voice. Integrated Marketing Communications 82
  • 88. The Problem with Implementing IMC Companies like Nike and Procter & Gamble do an excellent job with the marketing side of marketing communications without integrating their public and employee relations functions and hence their corporate reputations have suffered. IMC theory has given short shift to the organizational barriers that often prevent companies from implementing IMC completely or effectively. (a)Organizational Barriers Companies like Procter and Gamble have comprehensively or effectively integrated their many communications functions seamlessly or spoken to their stakeholders with one voice. They are very strong in marketing, but remain weak in public relations, employee communications, or both. The question remains, how do great companies like these miss the IMC mark? The answer to this important question lies, to a great extent, in their respective organizational structures. Procter & Gamble is marketing organizations, organized around product marketing. Procter & Gamble exemplifies a "brand management" organization where both line and staff functions are situated within a company's various products or brands. While Procter & Gamble's organizational structure has evolved over the years, staff communication functions such as public relations and employee communications are organized around and directly support each brand or group of brands. Brands receive the greatest resources and exert huge internal influence. Integrated Marketing Communications 83
  • 89. (b)Structure, Function and Culture Schultz, et. al. (1992) argue that there are three organizational issues that must be resolved before IMC can be implemented: marketing planning systems and basic marketing thinking, organizational structure, and capabilities and control. They believe that because functional specialists within an organization try to keep the various communications programs separate, they are a major hindrance to IMC implementation. One of the authors' programmatic solutions is to establish a "communications czar" who has control of all communication functions and presumably would ensure that all communications programs are effectively integrated. What promoters often fail to consider is how, structurally and functionally, a communications czar could come into being in the modern organization. Also, since in companies like Proctor & Gamble i.e. in strong marketing cultures, most communications heads are subordinate to the chief marketing officer. So, an initiative establishing a communications czar is very unlikely to come from any of the three or more functional heads that risk losing authority and responsibility in the process of integration. Perhaps the most logical and effective way for the position of a communications czar to be established is by the CEO of the company. Unfortunately, the power of the CEO remains neglected as a barrier or enabler to implementing IMC. (c)The Importance of CEO Control The importance of the CEO in implementing IMC has been largely ignored. There in fact are numerous ways CEOs can undermine IMC. Without their active support or stewardship, IMC will likely never get off the ground. But even when they support IMC, there are numerous Integrated Marketing Communications 84
  • 90. examples of CEOs acting against its principles. This is because many CEOs have a great deal of power and control and egos that come along with these forces. CEOs often act in self-interest or according to their predilections, instead of advice from their communications czar. One of the more recent examples is the controversial series of full-page ads for CrossWorlds, a Silicon Valley software company. These ads appeared in leading business publications such as Fortune and the Wall Street Journal and showed CEO Katrina Garnett in a revealing black dress, despite public relations advice to the contrary. While the ad garnered a great deal of publicity, it also spawned critical articles like the one in Fortune titled: "Techno-Cleavage" (Bass, 1998). This ad prompted a series of parodies by competitors including one by arch- rival Active Software, where its CEO pulls a CD-ROM from his pocket and says: "Software, not evening wear." The fact is that CEOs have the power to market their companies any way they want, with or without the guidance of IMC. The fact is that many CEOs want commercials that get rave reviews among their close circle of peers and notoriety from the public, no matter what effect they have on consumers or the company's bottom line. To minimize the influence of the CEO on company marketing is naïve, but to exclude the CEO in any substantive discussion of IMC adoption and implementation is simply deficient theory building. (d)Putting Organization and Culture into IMC Theory If structure, function and CEO support are given short shrift in IMC theory, culture is virtually ignored. There are several important elements often missing from the IMC implnetatator’s treatment of culture. Integrated Marketing Communications 85
  • 91.  First, culture is treated as a determinant of organizational behavior. While we know culture affects behavior, it is also true that behavior has a reciprocal impact on culture. This mutual influence has been established between organizational culture and organizational communication.  Second, some cultures are so strong and directed away from centralized control of communication that implementing IMC would be impossible. For example, regulated monopolies like AT&T (before the 1996 divestiture) and electrical utilities have developed cultures where marketing has not been an important requirement while public relations has been seen as critical. When AT&T was first divested in 1983, the biggest challenge was overcoming the "utility culture" and becoming a market-driven company. Most of the communication power and resources rest with the public relations department and its chief, who likely has the ear and confidence of the CEO. Contrast these cultures with those of Nike and Procter & Gamble, where public relations has significantly less structural power and fewer resources than marketing. Whether a company has a service or a marketing culture will have a great impact on how and whether IMC gets implemented.  Third, in some organizations there is so much competition for resources that the amount of cooperation and collaboration required by IMC is virtually impossible to achieve. In the case of mergers and acquisitions, resources are scarce and competition between departments great. The areas first to suffer are employee communications and public relations. Integrated Marketing Communications 86
  • 92.  Fourth, some cultures have very narrow views of the communications function. For example, Microsoft, despite its size and influence on capital markets, did very little public relations or government relations until the federal government indicted them for unfair trade practices. Most high technology companies have a similarly narrow view toward communications and are unlikely to spend much effort or resources "experimenting" with IMC.  Finally, in companies where there is a strong or even egomaniacal CEO, IMC may be either impossible or likely to be circumvented at the whim of the CEO. For example, Sunbeam Corporation, under the leadership of Al Dunlap was unlikely to engage in the IMC process given his desire for strong operational control. Integrated Marketing Communications 87
  • 93. Recommendations The above explanation offers adequate rationale for the corporate neglect of IMC. The recommendations that flow from the analysis are: 1. First, existing IMC theory gives considerably more emphasis to implementation than adoption of IMC. For IMC to be a reality in a corporation, adoption must precede implementation. This means the IMC proponent must negotiate his/her way through the maze of corporate politics, get CEO and other top-level management buy-in before the first implementation step can be taken. 2. Second, once top-level buy-in has been achieved, an implementation plan must be developed that can be reconciled with the organization's existing structure and functional realities. In some instances, a "communications czar" is out of the question, but a team of structurally equal marketing and communications executives might work. 3. Third, organizational culture must be dealt with in a substantive way in future IMC adoption models. This means placing the communication process itself alongside organizational culture. It also means looking at organizations historically to see how they have developed and evolved over time. Just as the IMC process must be built around the customer, so to an IMC operation must reflect the culture of the organization in which it is being implemented. Integrated Marketing Communications 88
  • 94. Necessary Conditions for IMC Success There are series of necessary conditions that must be present for IMC to be adopted effectively by a company. Based on these conditions, six recommendations for optimal adoption of IMC are offered: • IMC is a concept that must be implemented systemically and simultaneously at all levels and functions of a company. One program in which the public relations and marketing functions are integrated does not qualify the company as an IMC exemplar. • The CEO must voice direct support for adopting IMC, because without this critical element, IMC efforts are doomed. Beware of companies with strong marketing cultures, because issues like corporate reputation will take a back seat to the provincialism of brand management. • Structural and functional issues must become a critical component of any effective IMC program. Of particular importance is establishing a communications czar who will become the evangelist and conscience of the IMC implementation effort. • Any IMC program must be adapted to the unique character of a particular organizational culture. A "one-size-fits-all" IMC program does not exist. For an IMC program to work effectively, it must reflect the unique culture in which it must operate. • We must look beyond narrow IMC successes in traditional businesses for exemplars. Many of America's most venerable Integrated Marketing Communications 89
  • 95. companies do a few aspects of IMC well, but fail to exemplify company-wide integration. We would do well to look to e- commerce and high technology companies and recognize that attorneys, accountants, and economists can be as effective or even more effective at promoting IMC than the traditional roles of public relations and marketing. Integrated Marketing Communications 90
  • 96. Conclusion The New Economy is Integrated Marketing's Time to Shine!! Ten years ago, the business world was not quite ready to embrace the principles of IMC. But as the environment developed over the past decade, IMC grew in stature because it makes good business sense, especially in today's fast-moving economy. IMC and the four major new economy mega trends - technology, intangibles, globalization, and the war for talent - are made for each other. Technology has opened up numerous doors in terms of knowledge of the customer, speed to market and connectivity. Globalization has increased the importance of a unified strategy while highlighting the need to recognize and address cultural differences. The increasing value assessed to intangibles such as brands, employees and customer/supplier relationships is changing financial outlooks across the board. The war for talent has turned the recruiting tables upside down, because an information economy cannot exist without human capital. The corporate focus of integrated marketing must be on relationships and on more audiences than just customers. Only in this way can an organization have a unified brand image and eliminate the fragmentation that can destroy its brand/corporate reputation. In a business environment where all four mega trends effect the way we go to market, following the IMC principles of knowing your customers, building your brand and measuring effectiveness will put companies one step ahead of the competition. Integrated Marketing Communications 91
  • 97. For companies that currently embrace IMC, the new economy mega trends translate into opportunities. Placing the customer and other key stakeholders at the center of your business strategy has never been more important. The highly competitive marketplace has made relationship building paramount in the quest for success. For companies who do not see IMC as vital, it is time to reconsider. Integrated Marketing Communications 92
  • 98. Annexure A IMC Audit Form The Company that can implement IMC A concise, integrated marketing plan can be developed only after a company identifies itself. Only when you know who you are and what you have to offer can you tell others about it. Defining yourself and staking out a clear position in the minds of your target audience is crucial. Every savvy company knows it must stand for something in the marketplace Seek ways to set yourself apart from your competition. Why are you different? Why should people come to you instead of going to someone else offering the same service or product? Corporate Images (An IMC Provider) has developed a process called “The Integrated Marketing Audit” - adapted from Tom Duncan and Sandra Moriarity in Driving Brand Value - to evaluate an organization's internal and external processes for developing communication strategies and programs. Once you've defined who you are and have set your sights on where you want to go in the marketplace, how do you get your message to your market and project an image that fits your company? And how do you say it to all of your publics in a consistent voice? How integrated is your company? Because all companies are integrated to some extent, this audit helps determine which areas companies need to focus on to become more Integrated Marketing Communications 93
  • 99. integrated. Since the complete audit is quite complex and takes a research team anywhere from six to eight weeks to complete, the authors have developed an Integrated Marketing mini-audit which they use in workshops and seminars. The 20 questions that follow provide executives with a rough idea where their organizations stand on the integration scale. One of the most helpful applications of this Integrated Marketing mini- audit is when a group of executives from the same company complete it and then compare their answers. Seldom is there a consensus, which prompts some interesting and useful discussions. To get a quick idea to what extent your own company is practicing Integrated Marketing, take this survey and find out how you rate. For each of the statements, click the number in the mini-audit that best describes how your organization operates (one is "Never do" and five is "Always do"). If a question does not apply to your organization, leave it blank. The Integrated Marketing Audit Organizational Infrastructure 1. In our company, the process of managing brand/company reputation and building stakeholder relationships is a cross- functional responsibility which includes departments besides marketing such as production, operations, finance, human resources, etc. Never 1 2 3 4 5 Always Integrated Marketing Communications 94
  • 100. 2. The people managing our communication programs have a good understanding of the strengths and weaknesses of all major marketing communications tools such as direct response, PR, sales promotion, advertising, and packaging. Never 1 2 3 4 5 Always 3. We do a good job of internal marketing, informing all areas of the organization about our objectives and marketing programs. Never 1 2 3 4 5 Always 4. Our major communication agencies have (at least) monthly contact with each other regarding our communication programs and activities. Never 1 2 3 4 5 Always Interactivity 1. Our media plan is a strategic balance between mass media and one-to-one media. Never 1 2 3 4 5 Always 2. Special programs are in place to facilitate customer inquires and complaints. Never 1 2 3 4 5 Always Integrated Marketing Communications 95
  • 101. 3. In our databases, we capture customer inquiries, complaints, compliments, offers, and sales behavior (e.g., trial, repeat, frequency of purchase). Never 1 2 3 4 5 Always 4. Our customer databases are easily accessible (internally) and user friendly. Never 1 2 3 4 5 Always Mission Marketing 9. Our organization's mission is a key consideration in our communication planning. Never 1 2 3 4 5 Always 10. Our mission provides an additional reason for customers and other key stakeholders to believe our messages and support our company. Never 1 2 3 4 5 Always 11. Our corporate philanthropic efforts are concentrated in one specific area or program. Never 1 2 3 4 5 Always Strategic Consistency 12. We periodically review all our planned messages (e.g., advertising, sales promotion, PR, packaging, direct marketing, events) to determine the level of strategic positioning consistency. Never 1 2 3 4 5 Always Integrated Marketing Communications 96
  • 102. 13. Our current big idea is conceptually broad enough to allow for compatible sub campaigns aimed at all key stakeholder groups. Never 1 2 3 4 5 Always 14. We think carefully about the messages being sent by our pricing, distribution, product performance, service operations, and others beyond the control of the company. Never 1 2 3 4 5 Always Planning and Evaluating 15. A SWOT analysis is used to determine the strengths and opportunities we can leverage, and the weaknesses and threats we need to address, in our marketing communication planning. Never 1 2 3 4 5 Always 16. We use a zero-based approach in marketing communication. Never 1 2 3 4 5 Always 17. When doing annual marketing communication planning, first priority is given to fully utilizing intrinsic brand contact points before investing in creating new brand contact points. Never 1 2 3 4 5 Always 18. Our company uses some type of tracking study to evaluate the strength of our relationships with customers and other key stakeholder groups. Integrated Marketing Communications 97
  • 103. Never 1 2 3 4 5 Always 19. Our marketing strategies maximize the unique strengths of the various marketing communications tools. Never 1 2 3 4 5 Always 20. The overall objective of our marketing communication program is to create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging purposeful dialogue with them. Never 1 2 3 4 5 Always Adapted from Tom Duncan and Sandra Moriarity in Driving Brand Value (New York: McGraw-Hill 1997), p. 27-28. Integrated Marketing Communications 98
  • 104. Annexure B IMC in Global Arena In the international marketplace Cross-cultural business communication is especially important. In order to gain a competitive advantage, global marketers must have an understanding of the underlying motives of buyer behavior, without regard to their geographic locations. Organizations in the global arena must communicate their marketing strategy both internally to their employees and externally to domestic and international customers. This integrated marketing communications requires a vast array of strategic and tactical tools. The ability to proactively respond to what motivates consumer demands, regardless of geographic allocation, is vital to organizational success. In international marketing, although language translations may be accurate, they are, after all translations and have their limitations. The development of an IMC program in the international arena focuses on long- term relationships with the consumer at the local level. This strategy conflicts with the traditional product-driven, short-term focus at the corporate level. There are several characteristics that need to be considered in the implementation of an integrated communication plan in an international market. Some of these characteristics are discussed in brief below.  Establishment of long-term relationship The most important aspect of internationalization is that it will require long-term commitment on the part of the product or service provider, the different nations involved in the business, and the consumer in the Integrated Marketing Communications 99
  • 105. domestic as well as the international market. The marketing communication strategies should be developed based on the type of product that the company is trying to introduce in the Market. For example, pharmaceutical products such as ViagraÆ that has been considered by many as a 'wonder drug,' may not perform as well in the Asian Market. In the U.S., ViagraÆ is considered as a 'lifestyle drug', which is used for treatment of a rarely deadly disease. Open discussion regarding matters related to this product quite openly in the relatively conservative societies, such as the Asian society, has the potential of backfiring.  Awareness of Cultural and Language Barriers Multinational corporations should thoroughly explore cultural, language, and religious differences that exist in the host countries. One common solution to manage the cultural difference is by hiring locals as managers of the company to perform the local and day to day operations. However, in order to maintain a close link of this remotely located unit, as compared to the parent organization, the company should train the individual at the organization's central location. Proper awareness of local language, sign, symbols, gestures, and other similar relatively minor but extremely critical local characteristics would help in avoiding embarrassing situations during the marketing communication process.  The Role of family Multinational corporations should be aware of the significant roles that the family relationship plays in many foreign, and particular in Asian societies. At times, many decisions made by the employees and customers in Asia are often determined by the closeness that they have with their family members. Awareness and acceptance of this closeness will benefit western companies in establishing effective communication models in Integrated Marketing Communications 100
  • 106. Asia. Most Asians would go to all lengths in order to take care of their family and friends.  Language and Religious Sensitivity Asia is a continent of many languages and religions. Despite the fact that English is perhaps the most widely used language worldwide, in order to succeed in Asia, companies should make sure that the language used in communicating with the customer as well as with employees in the company is not disrespectful based on their language and religious beliefs. Even the product names should be carefully analyzed to determine whether they are appropriate and are not disrespecting to the customers. Discussion regarding certain topics relating to certain products and services may not be as readily accepted as they are in the United States. For example, news reports relating to sexual problems and functions are acceptable by the general consumer in the U.S. and in many western countries. However, this may not be the case for many Asian countries. In many Asian countries, talking about sex among family members is not common and acceptable. Even sexual innuendoes in commercials are highly disregarded among many Asians because television is usually watched by the whole family together. A good way of reducing this potentially harmful situation is by having local employees and advertising agencies. Culturally sensitive studies should also be conducted to avoid mishaps.  Culturally Sensitive Studies Culturally sensitive strategies will have to be used by multinational products and services providers, depending upon which country they are in. Care must be taken not to be condescending on consumers. Appropriate copy editing must be carried out so that local opinion- leaders, particularly politicians, are not offended. Public relations efforts to highlight significant involvement in social programs and support for Integrated Marketing Communications 101
  • 107. Asian cultural activities will help to build and foster a sense of contribution to stakeholder welfare maximization. Annexure C Questions for Integrated Marketing Communication 1. How would you define the concept - Integrated Marketing Communication? 2. Is your entire campaign designed by a one-stop agency or by specialists in each field? What was the rationale in selecting the specific approach? 3. What are the criteria adopted for selecting an agency to handle the brand? 4. What level of integration is expected from the various agencies (e.g. integration of concept with diverse content, integration of content, logo and tag line co-ordination etc.)? 5. How is the process of integration carried out - through the brief given to the agency, through common meetings across agencies or some other method? 6. How is the responsibility of integration shared between the client and the agencies? 7. Is the process of integration documented and followed as a guide? 8. Who are the target audiences for the various consumers - is it only external customers or also the internal consumers? Who is Integrated Marketing Communications 102
  • 108. responsible for communication with the internal consumer in that case? 9. Effects of IMC on the Consumer Psyche, if any. 10. What factors play an important role in developing the IMC strategy (PLC stage, Target etc.) and what variables (components) would they influence? 11. Would you please compare the IMC campaigns of Fairglow, Godrej All Care, Cinthol on the following parameters: (a) Objectives (b) Budgets (c) Components (d) Proportions of the components and allocations made to each of them (e) Consumer’s perception of the Brand Image (f) Sales and other parameters of evaluation (g) Any other effects on Consumer Psyche (h) Any other 12. How is the synergy between the Corporate Brand ‘Godrej’ and all the other consumer products brands achieved? Integrated Marketing Communications 103
  • 109. References Online Resources http://www.morse-balegno.com http://www.tri-media.com http://www.corporate-images.com http://www.harcourtcollege.com http://www.bi.no/users/fgl96053/imcmsc/imcplanning.htm http://www.northernlight.com http://spot.colorado.edu http://www.medill.nwu.edu/imc http://www.apqc.org http://about.com http://askjeeves.com Books & Authors: George Belch & Michael Belch - ________________ O’Guinn_____________________________________ Maketing Communications ______________________ Schultz, D.E., Tannenbaum, I &Lauterborn, - Integrated Marketing Communication:Putting it together & making it work. Weber, Barrett, Mandel, and Laderman1998 DeMooij and Keegan 1991 Clinton and Chandra 1996 Esther Thorson and Jeri Moore, Integrated Communication: Synergy of Persuasive Voices) Integrated Marketing Communications 104
  • 110. Tom Duncan and Sandra Moriarity in Driving Brand Value Loyd S. Pettegrew, Ph.D. Argyris, Putnam & Smith, 1985; Van deVen, 1989 Weick, 1983) Stephanie Baca Kennedy & Deal, 1981 Daft & Weick, 1984 Pacanowsky & Trujillo, 1983 VanMaanen & Schein, 1979 Temin & Galambos, 1989 Caywood, 1992 McKenzie, 2000 Magazines & Journals: Journal of integrated marketing communication Advertising Age, October 1993: Don Schultz, “ Maybe we should start all over with an IMC organization”, 1 Source: Council for the Advancement and Support of Education CURRENTS Magazine, 1998 2 Source: “Sales & Marketing Management" September, 1996 Promotion Marketing Association - Publications, 1998. Marketing News - Moriarty, Sandra (1997), "IMC needs PR's stakeholder focus," Communication World - Reich, Ken (1998) "IMC: Through the looking glass of the new millennium," Schultz, Don (1998), "Invest integration". Industry Week, 247:10, May 18, 20. Schultz, Don E. & Kitchen, Philip J.1997. Integrated marketing communications in U.S. Journal of Advertising Research, 37:5, September/October, 7-18. Integrated Marketing Communications 105
  • 111. Sales & Marketing Management - Yarbrough, John F. 1996. Putting the pieces together. Integrated Marketing Communications 106