Published on February 21, 2014
Integrated Marketing Communication
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 Integrated Marketing Communications 2
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 3
PART I I M C AN INTRODUCTION Integrated Marketing Communications 4
Integrated Marketing Communications 5
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 6
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 customercentric, 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 7
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 8
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 9
“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 10
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 11
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 12
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 13
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 14
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 15
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 16
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 17
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 nontraditional 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 18
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 19
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 20
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 21
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 22
group of customers against costs associated with that group. Integrated Marketing Communications 23
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 24
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 25
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 26
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-thoughtout, 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 27
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 28
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 29
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 30
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 31
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 32
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 33
• The Fox network interspersed Anastasia minutes (behind-thescenes 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 consumerfocused 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 34
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 35
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 36
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 37
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 38
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 39
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 40
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 41
PART II PROCESS OF IMC Integrated Marketing Communications 42
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 43
appointing a single person or team to control and evaluate all contacts with targeted customers. Integrated Marketing Communications 44
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 45
The Communication Hierarchy 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 Massmedia Advertising Event participation Internet advertising Sales promotion Direct marketing Publicity Customer Integrated Marketing Communications 46
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 47
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 48
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 Prospect Definition ‘Strategic Planning Triangle’ – proposed by advertising researchers Esther Thorson and Jeri Moore in their book ‘Integrated Communication: Synergy of Persuasive Voices’. Brand’s Value Proposition Persuasion Tools evaluation Strategic Planning Triangle 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 49
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 selfexpressive 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 50
. 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 51
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 52
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 53
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 multidimensional, 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 54
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 55
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 FairGlow Express Hair associates) Promotions – both trade and consumer Integrated Marketing Communications 56
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
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