The Concept of Integrated Marketing Communications from Practice and Academic Perspectives - Term Paper Example

Critically Evaluate the Concept of Integrated Marketing Communications from both Practice and Academic Perspectives Introduction The definition of orwhat is referred to as integrated marketing communication has brought conflict and confusion in the marketing world. There are three aspects that have brought conflict and confusion include; marketing, advertising and public relations. The confusion has largely revolved around the following key issues; (a) the name of the discipline, (b) what should be included in the discipline, (c) who should lead the discipline, and (d) whether it is a part of a new discipline (Hutton 1996, p155). Although it is a common term in the marketing world, integrated marketing communication lacks a unanimously accepted theoretical framework (Humphrey and Owen 2008, p2-3). The definition of integrated marketing communication according to the American Association Advertising Agencies is an idea of marketing communication planning that identifies the added value of an extensive plan that assesses the strategic responsibility of various forms of communication categories such as direct response, general advertising, public relations and sales promotion. The plan combines all these categories of communication to offer clear, consistent and maximum communication effect (Pradhan 2006, p.318). The aspects of marketing communication include the following; sales promotions, advertising, direct marketing, public relations, personal selling, sponsorship and internet marketing (Kitchen and Pelsmacker 2004, p20).Each of the aspect has a particular task to accomplish and the message of each aspect is largely enhanced by the other aspects in marketing communication. The elements of these aspects vary in their effectiveness, the probable overall cost, the ability of each aspect to communicate, and control maintenance; these are some of the key properties of these aspects of communication. Thus, each aspect has an entirely different capacity to communicate and achieve different objectives of the company (Kitchen and Pelsmacker 2004, p20). The term marketing communication has been used as a single term that encompasses everything in the marketing advertising. Integration of the various aspects of marketing communication bore the idea of integrated marketing communication and this became an approach to reach stakeholders and consumers (Kitchen and Pelsmacker 2004, p20). The Concept of Integrated Marketing Communications The concept of mass advertising paved way for marketing advertising in the early 1990s. The mode of making communication was very effective and thus the need to target the audience arose. Synergy among the messages being sent to the audience became very important; the concept of integrated marketing communications (IMC) began (Pradhan 2006, p318). Dell advertisement is an evidence that the foundation of integrated marketing communications is in the synergism that is created when all the components of marketing communications work together to accomplish the desired objectives; the insert advertisement of the Dell Sunday encourages the readers to go online for them to have a look of Dell deals (Laric and Lynagh 2010, p110). Advertisement took a larger portion of the marketing budgets some years ago; this has changed and there is inclusion of consumer promotions, trade promotions, advertising, public relations and branding in the marketing budget. The allotment of communication budgets away from the traditional advertising and mass media has elevated the importance and recognition of integrated marketing communication for effective marketing (Sisodia and Telrandhe 2010, p135). The concept of integrated marketing communications surfaced into an environment that was experiencing radical changes in the market communication practices. The changes included the following; (a) reduced trust in the mass media advertising solely due to rising costs, media clutter and negative consumer reaction, (b) fragmentation of the target audience, (c) increase in perceptiveness, sophistication and interest of the consumers, (d) increase in the dependability on the most targeted communication techniques, (e) demand pressure on the marketing communication suppliers, (f) change in the balance of power from the manufacturers to the retailers, (g) advancement in technology, (h) market globalization, and (i) increased efforts in the assessment of communication return on the investment (Kaijansinkko 2003, p33). The changes have stimulated the marketing communicators to find more feasible, innovative, effective and efficient mechanisms of communication so as to reach, inform, remind and persuade consumers and probable customers on the company’s products and services (Kaijansinkko 2003, p34). Integrated marketing communication leads to the efficiency, economical and effective influence of the transactions between the organization and the existing and potential clients and consumers. Efficiency is achieved through the good use of the resources. Economically, the costs are minimized and it maximizes the impact on the consumer resulting into maximum profits. Effectiveness is achieved through the production of maximum results, that is, the aspects of integrated marketing communication having a greater impact on the consumer (Sisodia and Telrandhe 2010, p135). The concept of IMC is based on the design that makes all the aspects of marketing communication work together as one rather than leaving these aspects work in isolation (Pradhan 2006, p20). It ensures that all the components or aspects of the company’s marketing relay a similar message and that all the people that are working in the company understand and make use of the company’s main message (Jerman and Zavrsnik 2005, p2). The Tools for Integrated Marketing Communication Advertising It is referred to as any type of paid form of non-personal communication regarding an organization, a service, a product or an idea that has been identified by the sponsor. Paid in this case indicates the buying of space and time for the advertisement message. Non-personal communication involves the utilization of mass media (for example, magazines, radio, TV) to relay message to a group of people. It is the most widely used form of marketing communication tool (Kulluvaara and Tornberg 2003, p11). Direct Marketing The organizations communicate directly with the desired consumers to create a transaction and/or a response. It mainly involves activities such as telemarketing, database management, direct response advertisements, and direct selling through internet, direct mail, print media and broadcast (Kulluvaara and Tornberg 2003, p12). Internet Marketing The internet is changing the ways organizations implement and design entire marketing and business strategies. The marketing communication programs are also affected by the internet (Kulluvaara and Tornberg 2003, p14). Sales Promotion Sales promotion is mainly concerned with the changes in the behaviour of a customer. Customers have the tendency of acting when there is an offer, a sale, or an opportunity to win something. Activities practiced in sales promotion include discounts, coupons, trade shows, contests, in-store demonstrations, in-store displays and samples (Uva 2000, p2). There are two orientations in sales promotion; (a) consumer oriented sales promotion and, (b) trade-oriented sales promotion. Public Relations It is mainly concerned with the evaluation of the public attitude, identification of policies and procedures of a person or the organization in regard to public interest. It also concerned with the execution of a program of action to gain the public acceptance and understanding. It mainly uses publicity and other forms of publicity tools (Kulluvaara and Tornberg 2003, p13). Trends That Challenge the Way Business Is Conducted In the Contemporary World and Its Effect on Integrated Marketing Communication The Internet and Technology The internet technology has provided competition strategies among competing companies and a wealth of information to the consumer. The consumers are capable of researching product attributes, compare prices and evaluate competitor’s offerings. The technology has enabled the principles of integrated marketing communication to operate on newer and different levels. The companies now have the ability to go beyond the customer’s expectations and out do the competition (Katrandjiev 2000, p88). Globalization Global acquisitions and mergers are common thing in the contemporary world. The global networks (organizational and technological) are making connections among organizations throughout the world. The companies cannot do away with the unique concepts of culture. In attempt to make global a better place, the companies use marketing communication to convey harmonic and understandable messages (Katrandjiev 2000, p88). The Importance of Brand Image The value of intangible assets in today’s business is very crucial in the success of a business. The importance of brand equity is critical because a high degree of brand equity corresponds to a high number of loyal customers. This can only be achieved through sales promotion and building a strong brand image; integrated marketing communication will play a key role (Katrandjiev 2000, p88). Examples of Integrated Marketing Communication The examples are based on three contexts; (a) business to consumer context, (b) business to business environment context and, (c) a marketing communication program that encompasses both the business customers and consumers. Business to Customer Context This can be well illustrated by Volvo’s involvement in the Whitbread Around the World Race. Volvo Company purchased the whole contest from the Whitbread, a British Brewer. At the time the race was occurring in 2001, it had the name The Volvo Ocean Race. Volvo’s involvement in the contest was to give strength to its brand name and build a positive attitude of the company among its consumers and the entire public (Abrahamsson, Forsgren and Lundgren 2003, p2). The event message put more emphasis on the Volvo’s main values, quality, environment and safety concerns. At every stop of the sailing boats made around the universe, Volvo had an exhibition that showcased its cars and also gave an opportunity to the company to strengthen its customer relations; this was achieved through personal meetings. The event also added more media coverage throughout the sailing race period in that year (Abrahamsson, Forsgren and Lundgren 2003, p2). Business to Business Environment Context This can be well illustrated by the integrated marketing communication program adopted by the General Electric (GE). The main objective of the company was to create awareness among the business customers that the company did more other than manufacturing light bulbs and appliances. The company’s advertising agency dwelt on an integrated campaign that was titled Imagination at Work; the campaign was to assert that the company was also successful in generating security systems, wind power systems, jet engines and other products. The campaign was extensive and it involved a number of advertisement techniques such as print (Forbes, Business Week and Fortune), online advertising and TV. There was a TV advertisement that showed GE produced jet engines; this was well illustrated by broadcasting a classic Wright Brothers period airplane that was equipped with a recent GE jet engine. The campaign was well conducted in Europe and in United States and it successfully changed the business customer’s perception of the company. A research survey that was conducted after the integrated campaign revealed the following; (a) GE perception as an innovative company rose by 35%, (b) there was a 40 percent increment of the opinion that GE was offering high-tech solutions and, (c) the perception that the company was dynamic rose by 50 percent. The GE integrated campaign was very successful because it combined a number of communication elements to modify the perceptions of GE in a positive manner (Shimp 2008, p6). A Marketing Communication Program That Encompasses both the Business Customers and Consumers This can be well explained by an extensive integrated marketing communication campaign that was undertaken by SBC Communications when it acquired AT&T. The campaign introduced a new brand to the business customers, consumers and to the government audiences. Your World Delivered was the banner that introduced the new AT&T to the mentioned audiences; the acquisition also included the redesigning of the corporate logo. The main objective of the campaign was to create awareness that SBC Communications and AT&T had merged and the new merger was under the new name AT&T. The banner Your World Developed was used to relay the message that the company (AT&T) was an innovative company and it sought to deliver the promises made and improve on people’s lives. The global integrated marketing program encompassed a comprehensive magazine, online and TV advertising. AT&T sponsored certain events such as the Winter Olympics, golf’s Pebble Beach tournament, football’s Cotton Bowl Classic, Dick Clark’s New Year’s Rockin’ Eve and soccer’s World Cup. The accomplishment of the campaign was done in less than a year and the results were a fourfold increment in the unaided advertising awareness and threefold increment in the brand awareness of AT&T name (Shimp 2008, p7). References Abrahamsson, J., Forsgren, T. & Lundgren, H. (2003) Sports sponsorship as a marketing communication tool, Thesis (Bachelor’s), Lulea University of Technology. Humphrey, P. & Owen, R. (2008) The structure of online marketing communication channels, Journal of Management and Marketing Research, 1(1), pp1-10. Hutton, J. G. (1996) Integrated marketing communications and the evolution of marketing thought, Journal of Business Research, 37, pp155-162. Jerman, D. & Zavrsnik, B. (2005) The effectiveness of business-to-business marketing communications, Faculty of Economics and Business, pp1-10. Kaijansinkko, R. (2003) Product placement in integrated marketing communications strategy, Thesis (Masters), Lappeenranta University of Technology. Katrandjiev, H. I. (2000) Some aspects of measuring integrated marketing communications (IMC), Economics and Organization, 1(8), pp87-93. Kitchen, P. J. & Pelsmacker, P. (2004) Integrated marketing communications: A primer. London, UK: Routledge. Kulluvaara, C. & Tornberg, J. (2003) Integrated marketing communication and tourism: A case study of Icehotel AB, Thesis (Bachelor’s), Lulea University of Technology. Laric, M. V. & Lynagh, P. M. (2010) The role of integrated marketing communications in sustainability marketing, In: Las Vegas, ASBBS Annual Conference, February 2010, pp108-119. Pradhan, S. (2006) Retailing management 2E. New Delhi: Tata McGraw-Hill. Shimp, T. A. (2008) Advertising promotion, and other aspects of integrated marketing communications. Mason, OH: Cengage Learning. Sisodia, S. & Telrandhe, N. (2010) Role of integrated marketing communication in modern Indian business, Journal of Arts Science & Commerce, 1(1), pp134-138. Uva, W. (2000) Develop a successful promotion program, Department of Applied Economics and Management, pp1-4. Read More