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Article Review
Integrated Marketing Communications in U.S. Advertising
Agencies: An Exploratory Study
By
Oan
Review
Summary
The study wasbaseduponthe “construct explication”approach.IMCwas defined,bothconceptually
and operationally,and“real world”measurementswere thendevelopedthroughaseriesof scaled
questions.The conceptual definitionof IMCusedinthisresearchwas:
“IMC isa conceptof marketingcommunicationsplanningthatrecognizesthe addedvalue of a
comprehensive planthatevaluatesthe strategicrolesof avarietyof communicationsdisciplines(for
example,general advertising,directresponse,salespromotion,andpublicrelations)andcombines
these disciplinestoprovide clarity,consistency,andmaximumcommunicationsimpact”
The researchinstrumentwasan89- item, self-administeredquestionnaire (estimatedcompletiontime-
30 minutes).Questionswere organizedintothree majortopicareas,eachrelatedtothe three
objectives:(1) reactiontothe definition;(2) personal andorganizational demographics;(3) agreement
or otherwise withcontingentstatementsusinga10-pointLikertScale (l-stronglydisagree tol-strongly
agree).The remaindersof the questionswere categorical,descriptive,oropen-ended.
Review
From thisstudy,itisclear that compensation,measurement,andIMCdevelopmentintermsof
executionandimplementationof integratedprogramsappeartobe the keyareas forfuture research.
Thisis to be expectedinanyemergingfieldandIMC certainlyappearstobe that inthe UnitedStates.
The measurementissue seemstobe particularlyimportant.Whileagencyexecutivesbelieve IMC has
value,measurement,whichwouldjustifythese “gutfeelings,”appearstobe critical to the development
of the area.If there isno evidencethatanIMC approachis betterthanor more effective thanthe
traditional approachesagencieshave beenusing,itislikelyclientsandagenciesbothwill andshould
challenge the needforsuchIMC programs.Thus,measurementwouldappeartobe a keyelementfor
future research.
The secondmajor areafor additional researchisthatof how clientsandagenciescan or shouldwork
togethertodevelopandimplementanIMC program.Clientsapparentlybelieve,andagenciesagree,
that the clientmustdrive the integrationprocess.Yet,havingone groupdrive the processcreatesmajor
issuesforthe agency.Howdo and howshouldclientsandagenciesworktogetherinthisnew
communicationarena?Thatappearsto be a critical question.
Accordingto the article the researchhas3 mainobjectivesonwhichhe/shehasfocused
 To deepenunderstandingof how andinwhat areasthe IMC conceptis developinginthe United
States
 To examine the extenttowhichagroup of majorU.S. advertisingagencyexecutivesis
developing,practicing,orutilizingIMConbehalf of theirclients
 To understandthe importance andvalue of traditional advertisingagenciesinamarketplace
where IMC isapparentlybecomingmore important
Thispaperreviewsthe developmentof the conceptof IntegratedMarketingCommunications(IMC) in
termsof itstheoretical foundationsthroughanexploratorystudyof IMCwithinajudgmentsample of
U.S. advertisingagencies(total estimatedbillings$20.4 billion).The paperconsidersthe arguments
advancedfrombothacademicand practitionersidesinrelationtowhatIMC is andwhetheritoffers
significantvaluetoadvertisingagenciesandtheirclientsinthe rapidlychangingcommunicationsmarket
space leadingtowardthe nextmillennium.
Major Area of Findings:
 Who responded?
 Amountof time devotedtoclientIMCprograms
 How agenciesare compensatedforIMC?
 IMC impact onbudgets
 Are there barriersto IMC implementation?
 Reactionsof IMC Definition
 PerceivedBarrierstoIMCPrograms
 IMC and Measurement.
 Internal BeliefsandConsiderationsaboutIMC
 PerceivedInteractionamongDifferentCommunicationAgencies
 IMC measurementIssues
 MarketingCommunicationCriteria
Criticize:
Operational explorationfocusedonareasrelatedtothisdefinition.The original researchinstrumentwas
developedtoquantifyperceivedconceptual andoperational aspectsof IMC and wasadaptedfromthe
original NorthwesternUniversitystudy(Caywoodetal.,1991). Thus,some comparisonsof the U.S.
adoptionanddevelopmentin1990 and the diffusionof the conceptin1997 are possible.
It isinterestingtonote thatalmost60 percentof small agenciesdevoteover50 percentof theirtime to
IMC programs forclients.Only46 percentof mediumand36 percentof large agenciesresponding
devote over50 percentto clientIMCprograms.Alsoof interestisthe highpercentage of medium-size
agenciesreportingover75percentof theirtime devotedtoIMC and a much lowerpercentage forlarge
agenciesatabout 17 percent.Almost 40 percentof large agenciesreportedspendinglessthan25
percentof theirtime developingclientIMCprograms while small andmediumwere bothabouthalf
that. Thisdata appearsto confirmthe industryperceptionthatsmall agenciesspendmore time devoted
to clientIMC programsthan dolarge or largeragencies.
Agencyexecutivesdonotstronglyexpectclientsto workwithlarge numbersof unaffiliatedagenciesto
provide marketingcommunicationsolutions.The broaderrange of servicesmaybe relatedtoa “one
stop” shoppingmentalityforall marketingcommunicationstactical needs,butitalsomaybe more than
that. Clientsmaybe expectingmore involvementinstrategicdevelopment,customerinformation
gathering,ora whole spectrumof servicesalongthe value chain.
ClientsandagenciesdevelopingandexecutingIMCprogramsdo notperceive IMCas avoidingthe issue
of measurement. There is,however,nostrongagreementonwhetherthe measurementscurrentlyused
can be effective inmeasuringIMCprograms.How to measure IMC programsseemstobe an issue that
mostexecutivesare notable toclearlyanswer,thoughitisa criteriawhichisveryimportanttothem.
 Each elementneedstobe measuredindividually.
 The total programshouldbe evaluatedagainstitsobjectivesandgoals.
 The objectivesshouldbe measurable.
 Resultsshouldbe measured.
From the responsestothese questionsitisclearthatno satisfactorymethodologyiscurrentlyknownto
agencyexecutivesortheirclientstomeasure marketingcommunicationseffectiveness.Or,if there is
such a methodologyavailable,ithasnotbeensufficientlydisseminatedamongIMCpractitioners,
especiallyagencyexecutives.
From thisstudy,itdoesappearthat IMC has movedfromthe “what isit?” to the “how can we doit?”
stage of developmentinthe UnitedStates.Agencyexecutivesappeartobelieve thatIMCisimportant,
that itis goodfor theirclients,andare readyto “geton withit.”Some naggingconcernsstill appearto
be evident.The compensationissueappearstobe one.Measurement,asmentionedearlier,isanother.
And,the issue of howthe agencycan become skilledandcapable inall areasof communicationis
another.These are not easyissuestoaddressnordoesthere appearto be much agreementamong
agencyleadershowthismightbe done.
JMC doesnot appearto be a fad.It isbeingdrivenintoclientorganizationsdue toreal businessneeds
and isnot the “philosophyof the day.”Agencyexecutivesnote anumberof reasonsforthe adoptionof
IMC by manyclients.Table 13 showsresponsestoquestionsregardingwhereIMCiscomingfromand
whyit ismovingahead.
…………………………………………………………

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Article review

  • 1. Article Review Integrated Marketing Communications in U.S. Advertising Agencies: An Exploratory Study By Oan
  • 2. Review Summary The study wasbaseduponthe “construct explication”approach.IMCwas defined,bothconceptually and operationally,and“real world”measurementswere thendevelopedthroughaseriesof scaled questions.The conceptual definitionof IMCusedinthisresearchwas: “IMC isa conceptof marketingcommunicationsplanningthatrecognizesthe addedvalue of a comprehensive planthatevaluatesthe strategicrolesof avarietyof communicationsdisciplines(for example,general advertising,directresponse,salespromotion,andpublicrelations)andcombines these disciplinestoprovide clarity,consistency,andmaximumcommunicationsimpact” The researchinstrumentwasan89- item, self-administeredquestionnaire (estimatedcompletiontime- 30 minutes).Questionswere organizedintothree majortopicareas,eachrelatedtothe three objectives:(1) reactiontothe definition;(2) personal andorganizational demographics;(3) agreement or otherwise withcontingentstatementsusinga10-pointLikertScale (l-stronglydisagree tol-strongly agree).The remaindersof the questionswere categorical,descriptive,oropen-ended. Review From thisstudy,itisclear that compensation,measurement,andIMCdevelopmentintermsof executionandimplementationof integratedprogramsappeartobe the keyareas forfuture research. Thisis to be expectedinanyemergingfieldandIMC certainlyappearstobe that inthe UnitedStates. The measurementissue seemstobe particularlyimportant.Whileagencyexecutivesbelieve IMC has value,measurement,whichwouldjustifythese “gutfeelings,”appearstobe critical to the development of the area.If there isno evidencethatanIMC approachis betterthanor more effective thanthe traditional approachesagencieshave beenusing,itislikelyclientsandagenciesbothwill andshould challenge the needforsuchIMC programs.Thus,measurementwouldappeartobe a keyelementfor future research. The secondmajor areafor additional researchisthatof how clientsandagenciescan or shouldwork togethertodevelopandimplementanIMC program.Clientsapparentlybelieve,andagenciesagree, that the clientmustdrive the integrationprocess.Yet,havingone groupdrive the processcreatesmajor issuesforthe agency.Howdo and howshouldclientsandagenciesworktogetherinthisnew communicationarena?Thatappearsto be a critical question. Accordingto the article the researchhas3 mainobjectivesonwhichhe/shehasfocused  To deepenunderstandingof how andinwhat areasthe IMC conceptis developinginthe United States
  • 3.  To examine the extenttowhichagroup of majorU.S. advertisingagencyexecutivesis developing,practicing,orutilizingIMConbehalf of theirclients  To understandthe importance andvalue of traditional advertisingagenciesinamarketplace where IMC isapparentlybecomingmore important Thispaperreviewsthe developmentof the conceptof IntegratedMarketingCommunications(IMC) in termsof itstheoretical foundationsthroughanexploratorystudyof IMCwithinajudgmentsample of U.S. advertisingagencies(total estimatedbillings$20.4 billion).The paperconsidersthe arguments advancedfrombothacademicand practitionersidesinrelationtowhatIMC is andwhetheritoffers significantvaluetoadvertisingagenciesandtheirclientsinthe rapidlychangingcommunicationsmarket space leadingtowardthe nextmillennium. Major Area of Findings:  Who responded?  Amountof time devotedtoclientIMCprograms  How agenciesare compensatedforIMC?  IMC impact onbudgets  Are there barriersto IMC implementation?  Reactionsof IMC Definition  PerceivedBarrierstoIMCPrograms  IMC and Measurement.  Internal BeliefsandConsiderationsaboutIMC  PerceivedInteractionamongDifferentCommunicationAgencies  IMC measurementIssues  MarketingCommunicationCriteria Criticize: Operational explorationfocusedonareasrelatedtothisdefinition.The original researchinstrumentwas developedtoquantifyperceivedconceptual andoperational aspectsof IMC and wasadaptedfromthe original NorthwesternUniversitystudy(Caywoodetal.,1991). Thus,some comparisonsof the U.S. adoptionanddevelopmentin1990 and the diffusionof the conceptin1997 are possible. It isinterestingtonote thatalmost60 percentof small agenciesdevoteover50 percentof theirtime to IMC programs forclients.Only46 percentof mediumand36 percentof large agenciesresponding devote over50 percentto clientIMCprograms.Alsoof interestisthe highpercentage of medium-size agenciesreportingover75percentof theirtime devotedtoIMC and a much lowerpercentage forlarge agenciesatabout 17 percent.Almost 40 percentof large agenciesreportedspendinglessthan25 percentof theirtime developingclientIMCprograms while small andmediumwere bothabouthalf
  • 4. that. Thisdata appearsto confirmthe industryperceptionthatsmall agenciesspendmore time devoted to clientIMC programsthan dolarge or largeragencies. Agencyexecutivesdonotstronglyexpectclientsto workwithlarge numbersof unaffiliatedagenciesto provide marketingcommunicationsolutions.The broaderrange of servicesmaybe relatedtoa “one stop” shoppingmentalityforall marketingcommunicationstactical needs,butitalsomaybe more than that. Clientsmaybe expectingmore involvementinstrategicdevelopment,customerinformation gathering,ora whole spectrumof servicesalongthe value chain. ClientsandagenciesdevelopingandexecutingIMCprogramsdo notperceive IMCas avoidingthe issue of measurement. There is,however,nostrongagreementonwhetherthe measurementscurrentlyused can be effective inmeasuringIMCprograms.How to measure IMC programsseemstobe an issue that mostexecutivesare notable toclearlyanswer,thoughitisa criteriawhichisveryimportanttothem.  Each elementneedstobe measuredindividually.  The total programshouldbe evaluatedagainstitsobjectivesandgoals.  The objectivesshouldbe measurable.  Resultsshouldbe measured. From the responsestothese questionsitisclearthatno satisfactorymethodologyiscurrentlyknownto agencyexecutivesortheirclientstomeasure marketingcommunicationseffectiveness.Or,if there is such a methodologyavailable,ithasnotbeensufficientlydisseminatedamongIMCpractitioners, especiallyagencyexecutives. From thisstudy,itdoesappearthat IMC has movedfromthe “what isit?” to the “how can we doit?” stage of developmentinthe UnitedStates.Agencyexecutivesappeartobelieve thatIMCisimportant, that itis goodfor theirclients,andare readyto “geton withit.”Some naggingconcernsstill appearto be evident.The compensationissueappearstobe one.Measurement,asmentionedearlier,isanother. And,the issue of howthe agencycan become skilledandcapable inall areasof communicationis another.These are not easyissuestoaddressnordoesthere appearto be much agreementamong agencyleadershowthismightbe done. JMC doesnot appearto be a fad.It isbeingdrivenintoclientorganizationsdue toreal businessneeds and isnot the “philosophyof the day.”Agencyexecutivesnote anumberof reasonsforthe adoptionof IMC by manyclients.Table 13 showsresponsestoquestionsregardingwhereIMCiscomingfromand whyit ismovingahead. …………………………………………………………