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Integrated Marketing Communication

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Title: Integrated Marketing Communication


1
Integrated Marketing Communication
2
Mental models The ladder of inference
3
Applying the Ladder of Inference
  • The ladder provides a means to ask questions...
  • What is the observable data behind that
    statement?
  • Does everyone agree on what the data is?
  • Can you run through your reasoning?
  • How did we get from that data to these abstract
    assumptions?
  • When you said your inference, did you mean
    my interpretation of it?

4
Essential skills for working with mental models
  • Reflection
  • Becoming more aware of your own thinking and
    reasoning.
  • Inquiry
  • Inquiring into others thinking and reasoning.
  • Advocacy
  • Making your own thinking and reasoning more
    visible to others.
  • Reveal where you are least clear in your
    thinking, invite improvement.
  • Listen, stay open, encourage others to provide
    different views.

5
Gaps Model of Behavior
Expected Behavior
Stakeholders
Perceived Behavior
Behavior Delivery
External Communications to Stakeholders
GAP 1
GAP 4
Company
GAP 3
Stakeholder-driven designs and standards
GAP 2
Company perceptions of stakeholder expectations
6
Key Factors Leading to Stakeholder Gap
Stakeholder Expectations
Stake-holder Gap
  • Gap 1 Not knowing what stakeholders expect
  • Gap 2 Not selecting the right behavior
  • Gap 3 Not delivering to behavior standards
  • Gap 4 Not matching performance to promise

Stakeholder Perceptions
7
Corporate identity and reputation
Fombrun, C. J., Reputation, Harvard Business
School Press
8
Strategy
Identity
Image
Common Starting Points
Organizational Communication
Marketing Communication
Management Communication
van Riel, C., Principles of Corporate
Communications
9
Stakeholders
...a group or individual who can have an effect
on or be affected by the organization.
Organization
10
What stakeholders want
  • Visibility
  • information
  • Virtue
  • good organizational behavior
  • Verifiability
  • access to information

11
Management Communication
  • Role of managers within organizations
  • Developing a shared vision
  • Establishing and maintaining trust in leadership
  • Initiating and managing change process
  • Empowering and motivating employees

12
Organizational Communication
  • Public Relations
  • Public Affairs
  • Environmental Communications
  • Investor Relations
  • Internal Communication
  • Corporate Advertising

13
Marketing Communication
  • Those activities supporting sales of particular
    goods and services
  • Advertising
  • Sponsorship
  • Direct Marketing
  • Personal Sales
  • Product PR
  • Others

14
Effectiveness of Communication Tools
Word of Mouth
cost/ effect of promotion
Advertising
Sales Promotion
Inform
Persuade
Reinforce
Stages in the buying cycle
15
Traditional MC and I (M) C
Traditional
New
  • Transactions
  • Functional organization
  • Specializations
  • Mass marketing
  • Stable of agencies
  • Customers
  • Mass Media
  • Ads Promotions
  • Cause Marketing
  • Adjust prior plan
  • Relationships
  • Cross-functional org.
  • Core Competencies
  • Data-driven marketing
  • CMO agency
  • Stakeholders
  • Purposeful interactivity
  • Strategic consistency
  • Mission marketing
  • Zero-based planning

16
I (M) C
  • Cross-functional approach for managing
    profitable, long-term relationships
  • Bringing people and corporate learning together
  • In order to maintain strategic consistency in all
    communications
  • Encourage and facilitate purposeful dialogues
    with customers and other key stakeholders
  • Create awareness and commitment to the corporate
    mission.

17
Relationship Building
  • Key element of I(M)C
  • Not just with customers
  • Mass communication unable to deliver

Knowing Responsive Trusting Affinity
Consistent Likeable Accessible Committed Co
nstructs determining strength of relationships
18
Evolutionary Integrated Communications
Duncan and Caywood, artikle samling, (ORG 9980)
p. 174,
  • Stage 1 Integration Awareness
  • Proposition the greater the degree of change on
    the existence of specific market pressures, the
    grater the likelihood that integrated marketing
    communication will emerge
  • Stage 2 Integration Image Integration
  • Need for consistency message, look and feel.

19
  • Stage 3 Integration Functional Integration
  • Greater degree of involvement among still
    traditionally separated areas.
  • Stage 4 Integration Coordinated Integration
  • Barriers starting to disappear, each function
    becoming more equal.

20
  • Stage 5 Integration Consumer-Based Integration
  • The value of a refined customer and prospect
    database. Elements begin to work together.
  • Stage 6 Integration Stakeholder-Based
    Integration
  • IMC becomes more broadly defined to become
    integrated communications.

21
  • Stage 7 Integration Relationship Management
    Integration
  • A fully integrated communication strategy
    reaching all stakeholders brings communications
    professionals into contact with all management
    functions.

22
INTEGRATING COMMUNICATION
So that management can harmonize all consciously
used forms of internal and external communication
as effectively and efficiently as possible in
order to create a favorable basis for
relationships with groups upon which the company
is dependent. Cees B. M. van Riel
23
  • Organizational Issues Surrounding Integration

24
Barriers to Integration
  • Ego and turf battles
  • Uneven compensation and reward systems
  • Lack of corporate discipline to put customer
    first
  • Absence of databases and accompanying technology
  • Lack of an internal communication system to help
    with cross-functional planning
  • Lack of a core competency in marketing
    communication

25
Barriers to Integration
  • Lack of understanding of importance of
    stakeholders
  • Lack of agreement on marketing and marketing
    communication objectives
  • Overdependence on mass media
  • Lack of understanding of how to use one-to-one
    media
  • Functional areas not used optimally for overall
    good of organization in building and sustaining
    customer relationships

26
Organizational Possibilities
  • Marketing Public Relations - Integrating PR with
    Advertising
  • Public Relations Under Marketing
  • Marketing Communications under Public Relations
  • Two Separate but Equal Functions
  • Integrate all Communications Functions Using
    Marketing Theories for Planning and Managing
  • Integrating all Communications Functions Through
    Public Relations Function

27
Obstacles to Integration and Potential Solutions
Solution
Obstacle
  • Turf battles between functional areas
  • Managers background/expertise
  • Organizing and planning an integrated marketing
    effort
  • Information sharing
  • Leadership and Infringement -
    budgets - public relations
  • Ethical issues

Re-engineering

Hire generalists rather than
specialists Clear goals unified approach

Strong information culture Zero based
communication planning
Recognizing stakeholder base
Clear mission and policy directions
28
Benefits of Integration
  • Gives a better process for acquiring, retaining
    and growing customers
  • Adds value through facilitating customer
    recourse, feedback, recognition
  • Enables brands to be more knowledgeable of
    customers and therefore more responsive
  • Gives a process for making brand communications
    and company more human, personal

29
Ensuring internal understanding and external
acceptance
Understanding
Schultz, M., Ervolder, L., Hulten, J., The
Integration Between Corporate Culture, Identity
and Image The Emergence of a New Industry?,
Working Paper, Copenhagen Business School (1997).
30
Monitoring
What you have
The organization
Audience Perceptions
Corporate Identity
Corporate Visuals
How you intend to use it
Corporate Identity Era 1 -- Badging Source
Bamber Forsyth in White, J. and Mazur, L.
Strategic Communications Management, Addison
Wesley, London, 1996.
31
Monitoring
What you have
Corporate Visuals
The organization
Audience Perceptions
Corporate Identity
How you intend to use it
Corporate Communications
Corporate Identity Era 2 -- Visuals plus
Communication Source Bamber Forsyth in White
and Mazur
32
Monitoring
What you have
Corporate Behavior Process
The organization
Audience Perceptions
Corporate Identity
Corporate Communications
How you intend to use it
Vehicles Corporate Values
Corporate Identity Era 3 -- The integrated
approach Source Bamber Forsyth in White and
Mazur
33
Suggested IC Organization
CEO (Admin. Dir.)
Market- ing
Communica- tions
Human Relations
Dept. X
Dept. Y
Internal Comms.
Corporate Comms.
Mkt. Comms.
  • Investor Relations
  • Public Affairs
  • Govt. Relations
  • etc.
  • Advertising
  • Direct Mkt.
  • Product Publicity
  • etc.

Wightman, B., Integrated communications
Organization and education, Public Relations
Quarterly, Summer 1999.
34
Integration -- Total Quality Management Approach
(Teams)
  • Bottom Up -- keeping track of stakeholder
    relationships and passing information up
  • Top Down -- mission supporting IC
  • Horizontally -- cross functional

Grönstedt, A., Integrated Communications at
Americas Top TQM Companies, Doctoral
Dissertation.
35
Propositions for a Team Approach (A. Grönstedt)
  • Team leader is a facilitator.
  • All communications professionals should be
    leaders and members of integrated communication
    teams.
  • Consensus is optimal.
  • Requires listening to everyones opinions,
    establishing a shared vision.

36
  • Concurrent planning and execution of different
    functions.
  • Establish step-by-step process for teamwork.
  • Team members need authority.
  • Requires a corporate-wide culture of teamwork.

37
  • Two major areas of conflict in cross functional
    teams
  • distrust
  • compensation differences
  • competition between individuals and departments
    for recognition
  • concerns that team members more loyal to
    department
  • disrespect
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