Integrated marketing communications

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


PART I

I M C

AN INTRODUCTION



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.


As Nicolas Hayek, CEO of Swatch, says, "Everything we do, and the way

we do everything, sends a message." And that’s where Integrated

Marketing Communications comes in. Integrated marketing

communications is a process that manages all of a company or brand's

interactions with customers and other key stakeholders. Its premise is

that everything a company does, and sometimes what it doesn't do,

sends a message.

In the marketplace of the 21st century ... the driving force is not a

company with products to sell but customers controlling what, where,

and how they want to buy. Thanks to the Internet, 24-hour toll-free

phone numbers, credit cards, and express delivery services, consumers

are accessing information on demand and seeking out the products and

services that interest them.

Gone are the days when a company determined where, when, and how

it sells its product. This new approach not only changes the way we

make our purchasing decisions, it also revolutionizes how companies

market to their customers. For most companies to win, they must

replace outdated mass-marketing tactics with a targeted, customer-

focused approach.

Integrated marketing communications (IMC) is one such customer-

centric, data-driven method of communicating with consumers. Nestle,

IBM, Sprint, Microsoft, Apple computers, Nike and many other

companies have adopted the IMC approach.


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:


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 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

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.


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,

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.


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


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


Three basic marketing elements added to stand-alone direct mail



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.


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.


Not PROMOTION, but COMMUNICATION : Communicate,

communicate, communicate. Many mediums working together to

present a unified message with a feedback mechanism to make the

communication two-way. And be sure to include an understanding of

non-traditional mediums, such as word of mouth and how it can

influence your position in the consumer's mind. How many ways can a

customer hear (or see) the same message through the course of the

day, each message reinforcing the earlier images?


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


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.


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


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


group of customers against costs

associated with that group.


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.


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 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.


Case I

How The Entertainment Industry Capitalizes On IMC

As the entertainment industry is forced to become more creative in

reaching its audiences, the opportunities for marketing communications

are endless. As Hollywood creates more and more ways to

communicate with its audiences, the need for integration is paramount.

With burgeoning franchises, entertainment companies have begun to

delve deeper into marketing strategies that enable them to connect

with their customers across their whole range of properties and

communication divisions. The hype about integration has created a

"buzz" in Hollywood that has the industry turning out some of the best

marketing strategies and campaigns in years.

Entertainment companies are defining their success with well-thought-

out, consumer-driven strategies and are using an array of marketing

tools to connect with audiences in more relevant and creative ways. In

the process, integrated marketing communications (IMC) is beginning to

take center stage as the entertainment industry’s shining star.

IMC Takes Center Stage

IMC has taken center stage in the entertainment industry as a result of

several factors and trends. Two of the greatest of these factors driving

IMC principles are:

The proliferation of media choices

The proliferation of media has fragmented audiences, making it

harder and harder to reach them through traditional means. Long

gone are the days when a single 30-second television commercial

could capture the attention of an entire target audience. Today’s


media competitive 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.


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 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. 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

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, 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

The Fox network interspersed Anastasia minutes (behind-the-

scenes looks at how the movie was made) into its prime

schedule

News America offered the cover of its weekly FSI

Leveraging the entertainment properties within its own company

proved to contribute significantly to the overall success of the

film, giving Fox a platform to continue making animated movies

in the future.

Steven M. Ross, executive vice president of worldwide promotions

and product placement at Twentieth Century Fox, further

supports, "It’s a huge advantage having such resources available

through sister companies." Many marketers in the industry are

aware of this fact, and as a result, are making great efforts to

build alliances with their other divisions in their companies.

Principle IV - Measurement and feedback loop

As the entertainment industry has moved toward more consumer-

focused strategies, it has integrated the customer into the

feedback loop in order to find out exactly what its specific target

is seeking.

The Internet is one of the most recent ways that Hollywood

franchises are working to close the loop in communicating with

their audiences. The Internet allows the entertainment industry to

receive first-hand feedback about products from its audiences,


while building relationships in the process. The traditional forms

of relying solely on Nielsen ratings and box office sales, the

industry traditionally only has been able to measure its success

according to number of viewers, but never has had the ability to

learn much 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

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

principles appears to be a formula for success for networks such as

Nickelodeon and studios such as Twentieth Century Fox and Disney.


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 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

-----------********------------


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.


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.


PART II

PROCESS OF IMC


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 appointing a single person or

team to control and evaluate all contacts with targeted customers.


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.



The Communication Hierarchy


Marketing OrganizationMarketing planGoals and objectivesCustomer/ prospect databases

Advertising AgencyResearch Creative strategiesProductionMessage placement

Specialized marketing communications organizationsMedia organizationsEvent management firmsWeb site designersSales promotion agenciesDirect marketing agenciesPublic relations firms

Mass- media

Advertising

Event participation

Internet advertising

Sales promotion

Direct marketing Publicity

Customer

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 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.


Model for Planning IMC

Tension, Stress, creativity, deadlines, collaboration, synergy, conflict,

misunderstandings, expertise, complexity, details, details, details….are

all things that characterize the process of preparing to launch an IMC

campaign.

There are many different models that guide the process of planning an

IMC campaign. One such

model being discussed is the

‘Strategic Planning

Triangle’ –

proposed by advertising

researchers Esther Thorson

and Jeri Moore in their book

‘Integrated Communication:

Synergy of Persuasive

Voices’.

As shown alongside, the apexes of the planning triangle entail the

segment(s) selected as targets for the IMC campaign, the brand’s value

proposition, and the array of persuasion tools that might be deployed to

achieve campaign objectives.

(a)The firm starts with customer, prospect, stakeholder definition, as

identification and specification of the target segment as a paramount

apex of the triangle. Building a consensus between the client and the

agency about which customers will be targeted is essential to the


Prospect Definition

Brand’s Value Proposition

Persuasion Tools evaluation

Strategic Planning Triangle

campaign’s effectiveness. Complex IMC campaigns may end up

targeting multiple segment. In such a case it is critical to analyze if

and how different target segments will interact to support or

disparage the campaign. The description of the target hence has to

be both Personal and Precise.

(b)The second important apex in the Planning triangle entails a

specification of the Brand’s Value Proposition. A brand’s value

proposition is a statement of the functional, emotional, and self-

expressive benefits delivered by the brand that provide value to the

customers in the target segment. Factors like what the brand has

stood for in the past, as well as what new types of value or benefits

one wants to claim for going forward need to be considered here.

(c) The final apex of the planning triangle considers the various

persuasion tools that may be deployed in executing the campaign.

The mix of the various tools should depend on the objectives that

are set for the IMC campaign.

Collaboration between the agency and the client is the key to ensure

that the approval process proceeds in a timely fashion.

The Process of an Integrated Marketing

Program thus:

Encourages the establishment of a marketing-team approach to

discuss strengths and weaknesses, mission and vision, and niche

and quality, and to reach a consensus on the primary messages to

be delivered to priority audiences.


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.


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.


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


under the leadership of Mr. Adi B. Godrej, as the Chairman and

Managing Director.

Associate Companies include Godrej Industries Ltd., Godrej Sara Lee

Ltd., Godrej Foods Ltd., Godrej Agrovet Ltd. and Godrej Properties and

Investments Ltd.

IMC and its importance at Godrej Consumer

Products Ltd.

Mr. Girish Korde, Brand manager, FairGlow, defines IMC as “ a multi-

dimensional, multi media communication system that is based on a pre-

designed strategy. It necessitates across the board implementation for

effectiveness”.

The Integrated marketing process is being implemented by Godrej

Consumer products for all its brands across product categories. This is

because with a slate of launches and relaunches, it is very essential for

the brands to not lose focus. Besides concentration of communication

on a central theme, with ‘one look, one voice’ enhances the recall and

Impact of communication on the consumers. Godrej also believes that

use of Integrated Marketing Communication helps the brands to get a

noticeable ‘Share of Voice’ and ‘Share of Mind’.

In today’s arena where the messages need to make an effort to stand

out of the immense Clutter and where the messages are prone to

different interpretations in different contexts, use of Integrated

Communications reduces the risks associated with such loses.


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 wrapper with attractive graphics. FAIRGLOW is available all

across India and has an introductory price offer of Rs. 10.00 for a 75 gm

pack.

The Formula - FAIRGLOW has a unique Bio-extract ‘Natural Oxy-G’ that

is of vegetable origin and absolutely safe. Its natural action involves

reduction of the black melanin in the skin without changing the skin’s

natural balance. The Natural Oxy-G also helps remove blemishes to give

the user a smooth and glowing complexion. FAIRGLOW therefore,

provides fairness for the face and the whole body without any extra

effort. In sum, it gives the twin advantages of a clean and fresh bath

while also providing the fairness benefit.

Activities undertaken by FairGlow:

Television advertising on a large scale to ensure awareness

Magazine and News paper advertising

Press articles and other public relations

Outdoor advertising –Hoardings

FairGlow Express

Net advertising

Skin care section – advisor etc.

‘FairGlow Face of the Fortnight’ series

Radio advertising (FM)

Seminars on skin care

Events – friendship day, valentines party etc.

Direct advertising to members of SIBHA ( South Indian Beauty and

Hair associates)

Promotions – both trade and consumer


FairGlow Express

The Process Of Communication Generation

The component design – Factors :

In the process of designing the communications mix, there are various

factors that are taken into account at Godrej Consumer Products Ltd.

The mot important factors that have a bearing on the variables in the

mix are:

(a)The objective of the brand communication – a brand that seeks to gain

awareness will have greater proportion of mass media. Thus

maintaining the brand reputation and developing brand awareness

would see two different mix of target contact points.

Also the magnitude of the objective would also be a contributing

factor. For example ‘gaining a 5% share of the competitor’s market

would require a more aggressive strategy as compared to an

objective of gaining a 2% market share’

(b)The competitors’ activities – Selection of nuances between the

available options at times is also based on the actions of the

competitors. Thus if the competitor is making efforts through the

trade promotions to create ‘dealer push’, a brand like Cinthol would

splurge on mass media or create a consumer promotion, to create a

‘Consumer Pull’

(c) The stage of the Product Life Cycle in which the brand operates will also

be a factor in the formation of the communication mix.

(d)The Brand Philosophy, character – A brand that symbolizes and

associates itself to Safety, Care, Environment etc. would lend itself

easily to collaborative advertising which may not be the case with all

brands.


(e)Product Category is yet another actor. Some brands like Cinthol are

youthful in character and hence lend themselves to Events, Mass

media etc. but a personal care product like Condoms may not lend

themselves to Outdoor communication like the Trains, Hoardings etc.

(f) The Target group also plays an important role in the communication

mix definition. Thus a brand like FairGlow lends itself more to Events

promotion as compared to a family brand like ‘All Care’

(g)The Impact of Expenditure that a brand would earn also be of

consideration. Thus thanks to the novelty factor attached o the

FairGlow brand, the impact of the expenditure incurred was quite

higher as compared to the expenditures incurred by Cinthol.

(h)Qualitative parameters like the Brand Image, Brand

Personality also would be a decisive factor in the process of

strategizing for Communication.

(i) Geographical diversity of a brand and the regional preferences and

performances are another factor to be taken into account. Thus if

Direct marketing has always shown a poor response in the Southern

markets, which happen to a stronghold area for the brand, the

strategy would reduce the proportion spend on Direct even if it may

seem to a desirable alternative.

(j) One of the most important parameters in the decision making would

be the Budgets allocated to the brand for the communications

exercise. As these budgets would be based on a forecast of the

market’s purchasing ability and other factors, this actor is of

paramount importance to ensure the viability of the brand.


(k)And of course the Skill and the Experience of the Brand manager also

is important in the process of strategizing the communications mix

as that often happens to be a source of innovations and

experimentation.

The Agencies Involved:

Client – Brand Team of Godrej

Creatives and Strategy - All of the communication for most brands is

handled by Mudra excepting Cinthol, which is handled by Leo

Burnett.

Media Buying and Planning – This function is centralized with

Madison, the Agency Of Record for Godrej.

Specialists – Most of the times, Mudra proves to be self-sufficient

agency for functions like direct marketing etc. As and when required,

Mudra internally outsources specialists for tasks where it may not be

as competent (Net advertising)

Others – Besides these agencies at times there are Event

management outfits etc. who may be involved for specific events.

Factors that lead to smooth flow of the process:

‘Centralization of communication’ is an essential for ensuring that

the communication flows the way it is expected to. In fact for all the

regional sales zones, the communication is designed at the

corporate office by the marketing team keeping in mind the inputs

from the Regions. The communication plan along with the creative

is then passed on to the regional areas, where they are

implemented.

The existence of one central agency for all of its communication

facilitates coordination and effective implementation of various

communication strategies.


An effective Creative director would be a great benefit to the

communication process, as he would not only germinate the ‘Big

Idea’, but would also mobilize the various specialist aid required at

all points and time for communication implementation.


The methodology adopted at Godrej Consumer Products Ltd.:

1. The brand team identifies the objectives of the brand and the overall

strategy.

2. From the strategy develops the details of the consumer (target

group), short term and long term objectives etc.

3. The marketing brief is explained to both Madison and Mudra

executives.

4. The creative teams gets to work to crystallize the idea that would

communicate the message.

5. The plans for media are prepared through a series of meetings

between the three concerned parties (FairGlow brand team, Mudra

CS and Account Planner, Madison executives)

6. In keeping with the drafted media plan, creatives would be designed

for the various media.

7. In case of special events, promotions etc. too the execution plan is

coordinated with the agency, which designs the creatives for the

same.

The process of Implementation of IMC at Godrej Consumer Products Ltd.


Client’s Marketing Strategy

Creative agency - Mudra

Agency of Record - Madison

Specialists – Events etc.

Specialist outfits - Net advertising, Direct Marketing

etc.

Com

mu

nic

ati

on

S

trate

gy

Exe

cuti

on

(C

reati

ves)

Media Strategy Event

Strategy

Event Creatives

Outsourcing for Certain areas of

Strategy

The responsibility of coordination of all the brand building efforts rests

with the Brand Team, which is the Final authority on all components

and mixes adopted by the brand. While the Brand team has complete

freedom to execute strategies that are in keeping with their brand

philosophy, they also keep in mind the association of the brand with the

Corporate Brand – Godrej and the synergy between the two brands.

This ensures that no brand lends a negative rub-off to the corporate

brand and works within its purview, enhancing it at the same time.

The entire process of implementation of a communication program is

documented in a confidential “BRAND Book”. This book contains not

only the process adopted, but also contains update information of all

the communication activities conducted under the various brands.

The Corporate Brand GODREJ

According to Mr. Korde there exists a two-way relationship between the

corporate brand Godrej and each of the brands in the Godrej Stable.

The Godrej brand stands for TRUST, RELIABILITY and QUALITY and that

is an integral part of each brand that evolve with the Godrej Name. The

Godrej name also lends stability to the new brand, reducing the efforts

required to build a new brand.


TheGodrej Brand

Indivudual brands(FairGlow, Cinthol

etc.)

Two-way synergistic relationship

On the other hand, with newer brands emerging from Godrej, the

Godrej brand too earns a younger, vibrant and versatile image.

Each brand manager ensures that his brand philosophy lies well within

or is related to the overall Godrej philosophy of commitment to Quality

and well-being of the consumer. The senior management (Board of

directors et al) ensure that the vision of the company translates into

brands that are diverse and yet converge synergistically under the

Godrej Brand.

-----------********------------


Issues In Co-Ordination Of An IMC Campaign

Issue I - Stages of Integration of Marketing Communications

The IMC program can be integrated at several Stages. The company

needs to identify which level is it at currently, and what does it seek to

achieve in a specific campaign. The following table details the various

stages and explains them alongside.

Levels of Integration Explanation

Awareness Stage Those responsible for

communications realize that a

fragmented approach is not the

optimum one.

Planning Integration The co-ordination of activities.

There are TWO broad approaches:

1. Functional Integration - which

co-ordinates separate tools to

create a single message where

appropriate.

2. Instrumental Integration –

combines tools in a way that

they reinforce one another.

Integration of Content Ensuring that there are no

contradictions in the basic brand or

corporate messages, integrating


themes of communication to make

same basic messages.

Formal Integration Using same logo, corporate colours,

graphic approach and house style

for all communications

Integration between planning Basic content remains the same

periods from one campaign to next or the

same executional approach is used

in different projects.

Intra-organizational integration Integration of activities of all

involved in communication

functions.

Inter-organizational integration Integration of all outside agencies

involved in the firm’s

communication activities.

Geographical Integration Integration of campaigns in different

countries – strongest in large

multinationals operating globally.

Integration of publics All communication is targeted at a

segment are Integrated (Horizontal)

or All communication targeted to

different segments are attuned

(Vertical)


Issue II - How many Stakeholders should be taken into Account:

A well-managed IM program identifies all key stakeholder groups and

the impact, both positive and negative, that each can have on an

organization. As Tom Duncan and Sandra E. Morarity, point out in

Driving Brand Value, there are five reasons why all stakeholder groups

must be taken into consideration in integrated marketing:

1e. A value field of int ractions: A company exists within a value field

(rather than a linear value chain) of stakeholder interactions.

Companies communicate directly with customers and retailers at the

same time retailers are talking with customers and customers are

talking among themselves. The interactions among suppliers,

distributors, and even competitors can affect brand value.

2. Stakeholders overlap: An example of the integrated nature of

stakeholder relationships is the employee stakeholder group where a

person may also be a customer, an investor, and a voter in the local

community. These interacting and overlapping relationships demand

that a company be strategically consistent in its basic core values and

brand messages. A company can't say one thing to investors,

something else to employees, and still another message to customers.

3. Integrity builds trust: Integration means unity of effort or purpose.

When an organization becomes more integrated, its interactions

become more consistent, its reputation more distinct, and its

stakeholders more trustful. Integration produces integrity because an

organization seen as working together rather than as a collection of

fragmented, autonomous functions is perceived as being more sound

and trustworthy-prerequisites for sustaining relationships.


4. Brand equity equals support: Just as brand share is the result of a

brand's customer franchise, brand equity is the result of a company's

stakeholder franchise. All stakeholders, not just customers, choose to

what extent they support a brand or company. People have a choice

where they work; investors have a choice of investment opportunities;

and customers have an ever-increasing choice of what they buy. In

other words, people choose to be stakeholders. And when they do, this

gives them the right to understand and influence what a company does.

A brand exists in people's minds; it is owned by them, as much as by

the company.

5. Profitability is the relationship bottom-line: Profits can be improved

by increasing revenues and/or decreasing costs. Therefore, all

stakeholders can affect the bottom line as their actions can have an

impact on costs, as well as revenues. Both can increase or decrease

depending on the efforts, attitudes, ideas, and support of all

stakeholders. Actions of groups such as the financial community,

government regulators, and employees can often affect profits more

quickly and significantly than can changes in customer behavior.

Issue III - Importance of teams

Creativity in the preparation of an IMC campaign can be fostered by

trust and open communication that are hallmarks of effective teams.

The position of the creative director in an agency becomes special as

much like the maestro of the symphony orchestra, the creative director

must encourage personal excellence, but at the same time demand

team accountability.


Principles to be relied on in orchestrating the teams:

Take care in assigning individuals to a team in the first place. It is

important t be sensitive to existing wok loads and keep in mind the

proper mix of expertise required to do the job for the client.

Take time to know the work style of each individual to ensure that

you create the most conducive environment.

Make teams responsible to the client – empower them!

Beware of adversarial relationships between individuals and teams.

Rotate teams to foster fresh thinking.

Issue IV - Problems of coordination

As per the research by Beard in 1993, one of the major hurdles to IMC

is the question of who should coordinate the programs- the client or the

agency? Who will handle the IMC programs – the client or the agency?

Who should be primarily responsible for it?

The answer is provided by the research studies done by George S Low

of Texas University combined with the earlier researches done in this

field. The results of their studies suggest that the clients should be

responsible for the strategic direction and planning which form a basis

for the IMC programs, while the agencies should be responsible for

message consistency and coordination of communications programs.

Further the studies suggest that the clients have more room for IMC

improvement in their strategic planning role than do the agencies in

their tactical implementation role. Nevertheless the key word in the role

of agencies is consistency.

As much lip service as advertisers give to pursuing the "one-voice" and

"seamless communication" that a well-designed IMC program can

provide, there seems to be one major roadblock to implementation: the


advertisers themselves! According to John McLaughlin, a marketing

consultant, the reasons lie in:

Clients often don't see a clear-cut cost advantage in dealing

exclusively with a primary agency rather than several suppliers.

Clients often don't have confidence in the ability of advertising

agencies to deliver specialized services.

Clients have strategic concerns about putting all their eggs in one

creative/ executional basket.

Due to these concerns at times the firms not only hesitate to use the

services of the newly developed capabilities but in fact also delay the

implementation of the IMC program itself.


PART III

REINVENTING THE AGENCY


ENREINVTING THE AGENCY

Thomas Eppes, president of Charlotte, N.C. based Price/McNabb sees a

change arriving, a trend that looks at a ‘New Avataar’ of an agency. He

says, "I think the change is going to be so dramatic that in the future

there won't be any such thing as an advertising agency. . . We have

begun to refer to ourselves as a communications company, and that

might change because we are getting involved with our clients'

business in ways that go beyond communications."

IMC is a specialized concept and while many agencies claim to deliver

on

this, there are truly very few agencies capable of integrated

communication. Agencies having separate cells/departments for

different functions e.g. LINTAS has Pathfinders (Research), LinOpinion

(PR), Linteractive (Net related communications), Advent(Events) and

Lintas Direct(for Direct Marketing); Similarly Ogilvy& Mather with Ogilvy

One, Ogilvy Rural, Ogilvy PR; HTA – with IPAN, FULCRUM, HTA Direct

etc. are some such agencies.

According to Mr. Ajay Kelkar, Sr. Marketing Manager, Shoppers Stop, “It

has been my experience that there are two stands one must consider

before identifying whether the brand should take a specialist route or a

one-stop shop route. These points are:

1. Can you afford to have specialist agencies, as these agencies would

mean splitting your marketing spends across various agencies.

2. The Creative approach generally is different for mainly three

components – Public relations, Direct Marketing and Advertising. Can

your agency handle the contradictions within, or do you have the


resources (time and expertise) to consolidate them at your end.

In case too many agencies are involved in the branding process, the

control generally resides with the brand team who provides guidelines

for implementation and where the agencies’ tasks are often only left to

the execution. And that’s not enough reason for the agency to exist.

Instead a route to a common agency who could provide specialist skills

under one roof, either from its internal processes or through Out-

sourcing could be ideal”.

Need for a One-Stop Shop Agency

Strategizing with the brand communication with several agencies,

leaves no meaning to the brand route as there tend to be too many

so-called ideas, conflict of interests etc.

Dealing with one-agency aids quicker implementation of the

strategies, due to less time involved in co-ordination.

Reduces the problems of coordination and duplication, as all the

concerned entities know well enough the objectives and the

directions.

The merging of ideas prove to be a ‘synergistic beauty’, as there are

rare clashes between the creatives for various media.

Besides after working for all communication with one agency, there

arrives a point where the brand team and the agency vibe well and

therefore there exists a comfort zone that allows free flow of ideas.

Pros and Cons of Integrated services:

Proponents of Integrated marketing and one-stop shop services agency

contend that maintaining entire control of the promotional process


achieves greater synergy among each of the communication program

elements. They also note that its is convenient for the client to

coordinate all of his marketing effort. An agency with integrated

marketing capabilities can create a single image for the product or

service and address everyone from the wholesaler tot he consumer with

one voice.

On the other hand opponents of such agencies say that the providers

get involved in political wrangling over budgets, do not communicate as

often and do not achieve synergy. They claim that the efforts by

agencies to control all aspects of the promotional program are nothing

more than an attempt to hold on to the business that might otherwise

be lost to competitors.

What Clients Seek from A One-stop Shop agency?

According to Mr. Korde, Brand manager, Fairglow, a one-stop agency

should be:

Self sufficient in the major areas of service like creative for mass

media, direct marketing, outdoor etc.

If instead the agency manages to obtain specialists in each field,

while delivering the quality insisted, that would be desirable too. In

such a case, the Client Servicing executive and the Account planner

would act as Gatekeepers to ensure only the Fittest fits into the

picture.

The agency needs to be Flexible, since plans and implementation

ideas are constantly evolving.

But the most important and major influencer in most cases is the

agencies ability to understand the Brand, the category and the other

players in the market, Its expertise at a cohesive Strategy

Development, and the ability of conversion of this strategy into a

beautiful blend of components.



PART IV

EVALUATION AND BARRIERS


Evaluation – IMC Audit

With today's marketplace conditions, emphasis must now be placed on

retaining and growing the value of existing customers, as much as on

acquiring new ones. Consequently, companies are setting up cross-

functional processes and making other structural changes to better

manage brand relationships. This means there is an increasing need to

audit these internal processes to make sure that they are, in fact,

integrated, and operating efficiently and effectively. Recognizing this,

Tom Duncan and Sandra M. designed the Integrated Marketing (IM)

Audit.

IM Audit findings should be used in conjunction with customer

satisfaction and other types of output controls. In other words, an audit

should not be used in place of, but in addition to, traditional output

controls.

Who should do it

An IM audit should be done by an outside, objective team and should be

a census (not just a sample) of the managers of all departments

impacting on brand relationships. At the audit orientation meeting with

top management, the audit instruments are reviewed and customized

to fit the organization's structure and needs.

Audit Tools

The audit tools include three basic interviewing instruments, as well as

a variety of optional tools depending on the type of business and how

in-depth the organization wants the audit to be.

1. Knowledge, Attitude, and Practices Questionnaire This

questionnaire determines the respondents' knowledge of the


marketing and marketing communication plans and targeted

audiences. Answers to these questions are then compared to what

employees are actually working to accomplish. Specifically, this

instrument evaluates the following areas and conditions:

Objectives. What are the target/stakeholder priorities? Which

stakeholders are most important? Is there agreement on

communication objectives and the brand's positioning among the

various marketing groups/departments/ functions? Does the

objective-setting process include everyone who contributes to

creating messages? What are the key messages for each of the

target audiences?

Organization. How much agreement exists among and within the

groups on the responsibilities of the various marketing

communication departments/functions? How is coordination

managed? Who is responsible for coordinating communication

efforts? To what extent is managing brand relationships a cross-

functional process?

Customer Databases. To what extent do customer databases

exist within the organization? How accessible are they, and how

often are they used? What are the procedures for capturing

customer dialogue and other interactions? Is there sharing of

databases, market research findings, and other types of planning

information?

Contact Points. Are these identified? What messages are being

sent? Are they consistent? Do they amount to a strategy? Are these

experiences measured and analyzed? Who controls them?


Integration. What's the brand's current level of integration? What

are the advantages and disadvantages of integration? What are the

major barriers to being more integrated?

Outside Agencies. To what extent are marketing

communication agencies involved in strategic planning? How much

communication/sharing of ideas is there among clients' agencies?

Interactivity. How far has the company moved into interactive,

two-way communication with customers?

Planning. Does the organization use zero-based planning,

especially for annual and short-term programs? To what extent are

objectives based on some kind of prioritized SWOT (Strengths,

Weaknesses, Opportunities, Threats) analysis? To whom are testing

results distributed, and to what extent are they used in planning?

2. Communication Network Survey This is a matrix of closed-

ended questions to pinpoint the following information: Who talks to

whom, how often, and about what? Who drives planning and

decisions? Who influences them? How often are respondents

involved in MC planning (formal/informal)? What information sources

do they read? How much and what kind of information sharing is

there (research, other information)? What are the patterns of

internal communication among departments? Is one department

doing more talking than listening?

3. Content Analysis All marketing communication or planned

messages used by the company over at least a 12-month period are


contently analyzed to determine whether they are consistent with

marketing communication objectives? Whether key messages are

appropriate for key audiences; and whether there is consistent

portrayal of company/brand positioning and image; and the amount

of creative strategy and execution consistency.

Specifically, the analysis looks at the following elements: the objective

of the piece, the audience, key themes, the tone, brand/corporate

image/position cues, use of response devices (active and passive), and

mission/vision cues. Content analysis findings are then compared with

interview findings to determine the organization's actual level of

integration. The content analysis also helps identify gaps in

performance.

What Can Be Learned From an IM Audit?

The benefits of auditing the organization, and the processes that are

responsible for acquiring, retaining, and growing customer

relationships, can uncover major inefficiencies and integration gaps.

These may include:

Confusion about objectives. In one company, managers gave nine

different responses when asked what the corporate marketing

communication objectives were and ten different responses for the

brand marketing communication objectives. When people are working

against different message objectives, it is impossible to have message

consistency; a facts subsequently proven by a content analyses

undertaken as part of the Audit.

Lack of agreement on message themes. A retail chain had begun

advertising "Low Prices Every Day." However, there was no agreement


among managers on what this meant in the context of the chain's

pricing strategy. Interviewees offered a total of seven different

explanations of what this new strategy involved. None was given by

more than 15 percent of those interviewed.

Another example: In a national consumer goods company, one message

theme was used in 100 percent of television advertising, but only 22

percent of other advertising; another theme was used in 80 percent of

television advertising, but only 20 percent of sales promotion materials

and collateral materials (of which there were more than 100).

Messages not targeted to primary stakeholder

groups. In one company it was found that 24 percent of all printed

messages were not targeted to any of the high priority stakeholder

groups identified by management, and only 1 percent were specifically

directed to the target audience rated most important.

Not enough information available. In almost all the audits

conducted, the majority of marketing managers say that half the time

they do not receive enough information from other departments to do

their jobs effectively. The types of information frequently mentioned as

difficult to get were sales results, research results, and promotional and

other special marketing plans for specific events and programs.

Limited use of research results. One packaged-goods

company was spending approximately $150 million on marketing

communication. Yet 37 percent of the managers said they did not know

of any market analysis being done by the company, 33 percent said

some was being done but didn't know if it was being used, and 15

percent said very little was used.


Little knowledge of annual planning. In one company, 60 percent

of the managers did not know how the budget was allocated among

departments, and half of the managers did not know to what extent

each year's communication plan compared to the previous one.

Lack of agreement on which stakeholders are most important.

In a health care facility, patients/families received the third highest

rating when all responses were averaged, but were ranked eighth by

top management responses. Political leaders were ranked ninth, but

third by public affairs/public relations. This was in response to the

question: "What is the overall importance to the whole organization of

the organization's stakeholders?"

Limited use of computers for networking and consumer

databases. One company had a relatively small number of industrial

customer; yet it did not capture customer buying behavior information,

although there were many opportunities for doing so.

Unexamined Assumptions An audit can identify problems a company

doesn't even know it has. For example, while auditing a high-tech

manufacturer (annual sales over $300 million), the auditors were told

that the company was working hard to apply for the Baldridge Award

and also was getting ready for its ISO 9000 evaluation. Consequently,

the manager of marketing services was confident the company had

maximized the integration of its processes and was doing everything it

could to integrate its marketing communication. The audit discovered,

however, that the marketing communication department had little

knowledge of, and made little use of, the company's databases even

though the company had fewer than 200 customers. (Most of the

company's marketing communication messages were in the form of ads

in industry trade magazines.)


Thus although the IM Audit was designed to be an evaluation tool, it

also provides a road map for showing how a company can become

more integrated. The audit provides an objective, well-documented list

of what must be changed in order to strengthen brand relationships.


BARRIERS TO IMPLEMENTATION

IMC is indeed enjoying a growth in awareness, particularly among larger

companies. Nearly three fourths of the companies surveyed report

using a database to better target their customers- an essential part of

implementing IMC; but only 30 percent say they are doing extensive

profiling and segmenting of customer buying habits using a database.

This suggests that many companies have not yet reached a full

implementation of IMC.

The widespread attention paid to IMC is largely a function of its strong

intuitive appeal - it makes good sense. Despite its appeal, more than a

decade has passed since the concept was first introduced, and most

major U.S. corporations have yet to fully implement the foundational

ideas contained in IMC. Proponents of IMC are left with a compelling

question, a variation of a rhetorical question: If IMC is so good, why isn't

it being fully implemented in corporate America?

Case in Point: Procter & Gamble - The World's Great Consumer

Products Company

Procter & Gamble is considered by business scholars to be a world-class

marketing company. Like the Nike brand, Procter & Gamble possesses

some of the most recognizable brands in the world including: Tide

detergent, Crest toothpaste, Jiff peanut butter, Cover Girl cosmetics,

and Duncan Hines cake mix. It also has dominant market share with

many of its premier brands. For some time now P&G has been lauded

for its efforts in implementing the Integrated Marketing

Communications. But is Procter & Gamble a perfect IMC exemplar? If

beginning with stakeholders and speaking to them with one voice

across all communications channels is an important criterion of IMC, the

answer must be "NO."


Despite Procter & Gamble's marketing preeminence, it has a history of

internal and external communication blunders:

Procter & Gamble publicly mishandled both the Rely Tampon crisis

and allegations that their packaging symbol documented the

company's satanic links.

Recently, Procter & Gamble lost face publicly and alienated

employees when it was revealed that the company had phone-

tapped three employees they suspected of leaking company

information.

This was followed by a botched job of dealing with some of the

physiological effects of its new fat substitute, Olestra. Without

considering public reaction, they allowed their scientists to term the

discharge of Olestra, "anal leakage" (Henkoff, 1996), raising another

wave of public controversy.

Lately Proctor & Gamble shot itself in the corporate reputational foot

again. The Chief Financial Officer (CFO) announced to the financial

media that Proctor & Gamble fully expected to meet its earnings

forecast for the end of the quarter. Two weeks later, new CEO Durk

Jager was forced to announce to the same media that they had

badly overestimated their quarterly earnings and that the company

would fall significantly short of its quarterly earnings forecast. Over

the following week, the company's stock fell precipitously as

shareholders and financial markets lost faith in the venerable

company. The Proctor & Gamble Board of Directors subsequently

fired Mr. Jager.

Despite characterizations to the contrary, these examples illustrate just

how far away Proctor & Gamble has been operating from the necessary

IMC condition of speaking to all stakeholders with one voice.


The Problem with Implementing IMC

Companies like Nike and Procter & Gamble do an excellent job with the

marketing side of marketing communications without integrating their

public and employee relations functions and hence their corporate

reputations have suffered. IMC theory has given short shift to the

organizational barriers that often prevent companies from

implementing IMC completely or effectively.

(a) Organizational Barriers

Companies like Procter and Gamble have comprehensively or

effectively integrated their many communications functions

seamlessly or spoken to their stakeholders with one voice. They are

very strong in marketing, but remain weak in public relations,

employee communications, or both. The question remains, how do

great companies like these miss the IMC mark?

The answer to this important question lies, to a great extent, in their

respective organizational structures. Procter & Gamble is marketing

organizations, organized around product marketing.

Procter & Gamble exemplifies a "brand management" organization

where both line and staff functions are situated within a company's

various products or brands. While Procter & Gamble's organizational

structure has evolved over the years, staff communication functions

such as public relations and employee communications are

organized around and directly support each brand or group of

brands. Brands receive the greatest resources and exert huge

internal influence.


(b) Structure, Function and Culture

Schultz, et. al. (1992) argue that there are three organizational

issues that must be resolved before IMC can be implemented:

marketing planning systems and basic marketing thinking,

organizational structure, and capabilities and control. They believe

that because functional specialists within an organization try to keep

the various communications programs separate, they are a major

hindrance to IMC implementation. One of the authors' programmatic

solutions is to establish a "communications czar" who has control of

all communication functions and presumably would ensure that all

communications programs are effectively integrated. What

promoters often fail to consider is how, structurally and functionally,

a communications czar could come into being in the modern

organization.

Also, since in companies like Proctor & Gamble i.e. in strong

marketing cultures, most communications heads are subordinate to

the chief marketing officer. So, an initiative establishing a

communications czar is very unlikely to come from any of the three

or more functional heads that risk losing authority and responsibility

in the process of integration. Perhaps the most logical and effective

way for the position of a communications czar to be established is by

the CEO of the company. Unfortunately, the power of the CEO

remains neglected as a barrier or enabler to implementing IMC.

(c) The Importance of CEO Control

The importance of the CEO in implementing IMC has been largely

ignored. There in fact are numerous ways CEOs can undermine IMC.

Without their active support or stewardship, IMC will likely never get


off the ground. But even when they support IMC, there are numerous

examples of CEOs acting against its principles. This is because many

CEOs have a great deal of power and control and egos that come

along with these forces. CEOs often act in self-interest or according

to their predilections, instead of advice from their communications

czar.

One of the more recent examples is the controversial series of full-

page ads for CrossWorlds, a Silicon Valley software company. These

ads appeared in leading business publications such as Fortune and

the Wall Street Journal and showed CEO Katrina Garnett in a

revealing black dress, despite public relations advice to the contrary.

While the ad garnered a great deal of publicity, it also spawned

critical articles like the one in Fortune titled: "Techno-Cleavage"

(Bass, 1998). This ad prompted a series of parodies by competitors

including one by arch-rival Active Software, where its CEO pulls a

CD-ROM from his pocket and says: "Software, not evening wear."

The fact is that CEOs have the power to market their companies any

way they want, with or without the guidance of IMC.

The fact is that many CEOs want commercials that get rave reviews

among their close circle of peers and notoriety from the public, no

matter what effect they have on consumers or the company's

bottom line. To minimize the influence of the CEO on company

marketing is naïve, but to exclude the CEO in any substantive

discussion of IMC adoption and implementation is simply deficient

theory building.

(d) Putting Organization and Culture into IMC Theory

If structure, function and CEO support are given short shrift in IMC

theory, culture is virtually ignored. There are several important


elements often missing from the IMC implnetatator’s treatment of

culture.

First, culture is treated as a determinant of

organizational behavior. While we know culture affects

behavior, it is also true that behavior has a reciprocal impact

on culture. This mutual influence has been established

between organizational culture and organizational

communication.

Second, some cultures are so strong and directed away

from centralized control of communication that

implementing IMC would be impossible. For example,

regulated monopolies like AT&T (before the 1996 divestiture)

and electrical utilities have developed cultures where

marketing has not been an important requirement while public

relations has been seen as critical. When AT&T was first

divested in 1983, the biggest challenge was overcoming the

"utility culture" and becoming a market-driven company.

Most of the communication power and resources rest with the

public relations department and its chief, who likely has the

ear and confidence of the CEO. Contrast these cultures with

those of Nike and Procter & Gamble, where public relations has

significantly less structural power and fewer resources than

marketing. Whether a company has a service or a marketing

culture will have a great impact on how and whether IMC gets

implemented.

Third, in some organizations there is so much competition

for resources that the amount of cooperation and

collaboration required by IMC is virtually impossible to achieve.


In the case of mergers and acquisitions, resources are scarce

and competition between departments great. The areas first to

suffer are employee communications and public relations.

Fourth, some cultures have very narrow views of the

communications function. For example, Microsoft, despite

its size and influence on capital markets, did very little public

relations or government relations until the federal government

indicted them for unfair trade practices. Most high technology

companies have a similarly narrow view toward

communications and are unlikely to spend much effort or

resources "experimenting" with IMC.

Finally, in companies where there is a strong or even

egomaniacal CEO, IMC may be either impossible or likely to be

circumvented at the whim of the CEO. For example,

Sunbeam Corporation, under the leadership of Al Dunlap was

unlikely to engage in the IMC process given his desire for

strong operational control.


Recommendations

The above explanation offers adequate rationale for the corporate

neglect of IMC. The recommendations that flow from the analysis are:

1. First, existing IMC theory gives considerably more emphasis to

implementation than adoption of IMC. For IMC to be a reality in a

corporation, adoption must precede implementation. This means the

IMC proponent must negotiate his/her way through the maze of

corporate politics, get CEO and other top-level management buy-in

before the first implementation step can be taken.

2. Second, once top-level buy-in has been achieved, an

implementation plan must be developed that can be reconciled with

the organization's existing structure and functional realities. In some

instances, a "communications czar" is out of the question, but a

team of structurally equal marketing and communications

executives might work.

3. Third, organizational culture must be dealt with in a substantive way

in future IMC adoption models. This means placing the

communication process itself alongside organizational culture. It also

means looking at organizations historically to see how they have

developed and evolved over time. Just as the IMC process must be

built around the customer, so to an IMC operation must reflect the

culture of the organization in which it is being implemented.


Necessary Conditions for IMC Success

There are series of necessary conditions that must be present for IMC to

be adopted effectively by a company. Based on these conditions, six

recommendations for optimal adoption of IMC are offered:

IMC is a concept that must be implemented systemically and simultaneously

at all levels and functions of a company. One program in which the public

relations and marketing functions are integrated does not qualify

the company as an IMC exemplar.

The CEO must voice direct support for adopting IMC, because without

this critical element, IMC efforts are doomed. Beware of

companies with strong marketing cultures, because issues like

corporate reputation will take a back seat to the provincialism of

brand management.

Structural and functional issues must become a critical

component of any effective IMC program. Of particular

importance is establishing a communications czar who will become

the evangelist and conscience of the IMC implementation effort.

Any IMC program must be adapted to the unique character of a particular

organizational culture. A "one-size-fits-all" IMC program does not exist.

For an IMC program to work effectively, it must reflect the unique

culture in which it must operate.

We must look beyond narrow IMC successes in traditional

businesses for exemplars. Many of America's most venerable

companies do a few aspects of IMC well, but fail to exemplify


company-wide integration. We would do well to look to e-

commerce and high technology companies and recognize that

attorneys, accountants, and economists can be as effective or

even more effective at promoting IMC than the traditional roles of

public relations and marketing.


Conclusion

The New Economy is Integrated Marketing's Time to

Shine!!

Ten years ago, the business world was not quite ready to embrace the

principles of IMC. But as the environment developed over the past

decade, IMC grew in stature because it makes good business sense,

especially in today's fast-moving economy. IMC and the four major new

economy mega trends - technology, intangibles, globalization, and the

war for talent - are made for each other.

Technology has opened up numerous doors in terms of knowledge of

the customer, speed to market and connectivity. Globalization has

increased the importance of a unified strategy while highlighting the

need to recognize and address cultural differences. The increasing

value assessed to intangibles such as brands, employees and

customer/supplier relationships is changing financial outlooks across

the board. The war for talent has turned the recruiting tables upside

down, because an information economy cannot exist without human

capital.

The corporate focus of integrated marketing must be on relationships

and on more audiences than just customers. Only in this way can an

organization have a unified brand image and eliminate the

fragmentation that can destroy its brand/corporate reputation.

In a business environment where all four mega trends effect the way we

go to market, following the IMC principles of knowing your customers,


building your brand and measuring effectiveness will put companies

one step ahead of the competition.

For companies that currently embrace IMC, the new economy mega

trends translate into opportunities. Placing the customer and other key

stakeholders at the center of your business strategy has never been

more important. The highly competitive marketplace has made

relationship building paramount in the quest for success. For companies

who do not see IMC as vital, it is time to reconsider.


Annexure A

IMC Audit Form

The Company that can implement IMC

A concise, integrated marketing plan can be developed only after a

company identifies itself. Only when you know who you are and what

you have to offer can you tell others about it. Defining yourself and

staking out a clear position in the minds of your target audience is

crucial. Every savvy company knows it must stand for something in the

marketplace

Seek ways to set yourself apart from your competition. Why are you

different? Why should people come to you instead of going to someone

else offering the same service or product?

Corporate Images (An IMC Provider) has developed a process called

“The Integrated Marketing Audit” - adapted from Tom Duncan and

Sandra Moriarity in Driving Brand Value - to evaluate an organization's

internal and external processes for developing communication

strategies and programs.

Once you've defined who you are and have set your sights on where

you want to go in the marketplace, how do you get your message to

your market and project an image that fits your company? And how do

you say it to all of your publics in a consistent voice?


How integrated is your company?

Because all companies are integrated to some extent, this audit helps

determine which areas companies need to focus on to become more

integrated. Since the complete audit is quite complex and takes a

research team anywhere from six to eight weeks to complete, the

authors have developed an Integrated Marketing mini-audit which they

use in workshops and seminars. The 20 questions that follow provide

executives with a rough idea where their organizations stand on the

integration scale.

One of the most helpful applications of this Integrated Marketing mini-

audit is when a group of executives from the same company complete

it and then compare their answers. Seldom is there a consensus, which

prompts some interesting and useful discussions. To get a quick idea to

what extent your own company is practicing Integrated Marketing, take

this survey and find out how you rate. For each of the statements, click

the number in the mini-audit that best describes how your organization

operates (one is "Never do" and five is "Always do"). If a question does

not apply to your organization, leave it blank.

The Integrated Marketing Audit

Organizational Infrastructure

1. In our company, the process of managing brand/company

reputation and building stakeholder relationships is a cross-

functional responsibility which includes departments besides


marketing such as production, operations, finance, human

resources, etc.

Never 1 2 3 4 5 Always

2. The people managing our communication programs have a good

understanding of the strengths and weaknesses of all major

marketing communications tools such as direct response, PR,

sales promotion, advertising, and packaging.


3. We do a good job of internal marketing, informing all areas of the

organization about our objectives and marketing programs.


4. Our major communication agencies have (at least) monthly

contact with each other regarding our communication programs

and activities.


Interactivity

5. Our media plan is a strategic balance between mass media and

one-to-one media.


6. Special programs are in place to facilitate customer inquires and

complaints.



7. In our databases, we capture customer inquiries, complaints,

compliments, offers, and sales behavior (e.g., trial, repeat,

frequency of purchase).


8. Our customer databases are easily accessible (internally) and

user friendly.


Mission Marketing

9. Our organization's mission is a key consideration in our

communication planning.


10. Our mission provides an additional reason for customers and

other key stakeholders to believe our messages and support our

company.


11. Our corporate philanthropic efforts are concentrated in one

specific area or program.


Strategic Consistency

12. We periodically review all our planned messages (e.g.,

advertising, sales promotion, PR, packaging, direct marketing,

events) to determine the level of strategic positioning

consistency.



13. Our current big idea is conceptually broad enough to allow for

compatible sub campaigns aimed at all key stakeholder groups.


14. We think carefully about the messages being sent by our pricing,

distribution, product performance, service operations, and others

beyond the control of the company.


Planning and Evaluating

15. A SWOT analysis is used to determine the strengths and

opportunities we can leverage, and the weaknesses and threats

we need to address, in our marketing communication planning.


16. We use a zero-based approach in marketing communication.


17. When doing annual marketing communication planning, first

priority is given to fully utilizing intrinsic brand contact points

before investing in creating new brand contact points.



18. Our company uses some type of tracking study to evaluate the

strength of our relationships with customers and other key

stakeholder groups.


19. Our marketing strategies maximize the unique strengths of the

various marketing communications tools.


20. The overall objective of our marketing communication program is

to create and nourish profitable relationships with customers and

other stakeholders by strategically controlling or influencing all

messages sent to these groups and encouraging purposeful

dialogue with them.


Adapted from Tom Duncan and Sandra Moriarity in Driving Brand Value

(New York: McGraw-Hill 1997), p. 27-28.


Annexure B

IMC in Global Arena

In the international marketplace Cross-cultural business communication

is especially important. In order to gain a competitive advantage, global

marketers must have an understanding of the underlying motives of

buyer behavior, without regard to their geographic locations.

Organizations in the global arena must communicate their marketing

strategy both internally to their employees and externally to domestic

and international customers. This integrated marketing communications

requires a vast array of strategic and tactical tools. The ability to

proactively respond to what motivates consumer demands, regardless

of geographic allocation, is vital to organizational success.

In international marketing, although language translations may be

accurate, they are, after all translations and have their limitations. The

development of an IMC program in the international arena focuses on

long-term relationships with the consumer at the local level. This

strategy conflicts with the traditional product-driven, short-term focus

at the corporate level.

There are several characteristics that need to be considered in the

implementation of an integrated communication plan in an international

market. Some of these characteristics are discussed in brief below.

Establishment of long-term relationship

The most important aspect of internationalization is that it will require

long-term commitment on the part of the product or service provider,

the different nations involved in the business, and the consumer in the


domestic as well as the international market. The marketing

communication strategies should be developed based on the type of

product that the company is trying to introduce in the Market.

For example, pharmaceutical products such as ViagraÆ that has been

considered by many as a 'wonder drug,' may not perform as well in the

Asian Market. In the U.S., ViagraÆ is considered as a 'lifestyle drug',

which is used for treatment of a rarely deadly disease. Open discussion

regarding matters related to this product quite openly in the relatively

conservative societies, such as the Asian society, has the potential of

backfiring.

Awareness of Cultural and Language Barriers

Multinational corporations should thoroughly explore cultural, language,

and religious differences that exist in the host countries. One common

solution to manage the cultural difference is by hiring locals as

managers of the company to perform the local and day to day

operations. However, in order to maintain a close link of this remotely

located unit, as compared to the parent organization, the company

should train the individual at the organization's central location. Proper

awareness of local language, sign, symbols, gestures, and other similar

relatively minor but extremely critical local characteristics would help in

avoiding embarrassing situations during the marketing communication

process.

The Role of family

Multinational corporations should be aware of the significant roles that

the family relationship plays in many foreign, and particular in Asian

societies. At times, many decisions made by the employees and

customers in Asia are often determined by the closeness that they have

with their family members. Awareness and acceptance of this closeness

will benefit western companies in establishing effective communication


models in Asia. Most Asians would go to all lengths in order to take care

of their family and friends.

Language and Religious Sensitivity

Asia is a continent of many languages and religions. Despite the fact

that English is perhaps the most widely used language worldwide, in

order to succeed in Asia, companies should make sure that the

language used in communicating with the customer as well as with

employees in the company is not disrespectful based on their language

and religious beliefs. Even the product names should be carefully

analyzed to determine whether they are appropriate and are not

disrespecting to the customers. Discussion regarding certain topics

relating to certain products and services may not be as readily

accepted as they are in the United States. For example, news reports

relating to sexual problems and functions are acceptable by the general

consumer in the U.S. and in many western countries. However, this may

not be the case for many Asian countries. In many Asian countries,

talking about sex among family members is not common and

acceptable. Even sexual innuendoes in commercials are highly

disregarded among many Asians because television is usually watched

by the whole family together. A good way of reducing this potentially

harmful situation is by having local employees and advertising

agencies. Culturally sensitive studies should also be conducted to avoid

mishaps.

Culturally Sensitive Studies

Culturally sensitive strategies will have to be used by multinational

products and services providers, depending upon which country they

are in. Care must be taken not to be condescending on consumers.

Appropriate copy editing must be carried out so that local opinion-

leaders, particularly politicians, are not offended. Public relations efforts


to highlight significant involvement in social programs and support for

Asian cultural activities will help to build and foster a sense of

contribution to stakeholder welfare maximization.

Annexure C

Questions for Integrated Marketing Communication

1. How would you define the concept - Integrated Marketing

Communication?

2. Is your entire campaign designed by a one-stop agency or by

specialists in each field? What was the rationale in selecting the

specific approach?

3. What are the criteria adopted for selecting an agency to handle the

brand?

4. What level of integration is expected from the various agencies (e.g.

integration of concept with diverse content, integration of content,

logo and tag line co-ordination etc.)?

5. How is the process of integration carried out - through the brief

given to the agency, through common meetings across agencies or

some other method?

6. How is the responsibility of integration shared between the client

and the agencies?

7. Is the process of integration documented and followed as a guide?


8. Who are the target audiences for the various consumers - is it only

external customers or also the internal consumers? Who is

responsible for communication with the internal consumer in that

case?

9. Effects of IMC on the Consumer Psyche, if any.

10. What factors play an important role in developing the IMC strategy

(PLC stage, Target etc.) and what variables (components) would

they influence?

11. Would you please compare the IMC campaigns of Fairglow, Godrej

All Care, Cinthol on the following parameters:

(a)Objectives

(b)Budgets

(c) Components

(d)Proportions of the components and allocations made to each of them

(e)Consumer’s perception of the Brand Image

(f) Sales and other parameters of evaluation

(g)Any other effects on Consumer Psyche

(h)Any other

12. How is the synergy between the Corporate Brand ‘Godrej’ and all

the other consumer products brands achieved?


References

Online Resources

http://www.morse-balegno.com

http://www.tri-media.com

http://www.corporate-images.com

http://www.harcourtcollege.com

http://www.bi.no/users/fgl96053/imcmsc/imcplanning.htm

http://www.northernlight.com

http://spot.colorado.edu

http://www.medill.nwu.edu/imc

http://www.apqc.org

http://about.com

http://askjeeves.com

Books & Authors:

George Belch & Michael Belch - ________________

O’Guinn_____________________________________

Maketing Communications ______________________

Schultz, D.E., Tannenbaum, I &Lauterborn, - Integrated Marketing

Communication:Putting it together & making it work.

Weber, Barrett, Mandel, and Laderman1998

DeMooij and Keegan 1991

Clinton and Chandra 1996

Esther Thorson and Jeri Moore, Integrated Communication: Synergy of

Persuasive Voices)


http://askjeeves.com/

http://about.com/

http://www.apqc.org/

http://www.medill.nwu.edu/imc

http://spot.colorado.edu/

http://www.northernlight.com/

http://www.bi.no/users/fgl96053/imcmsc/imcplanning.htm

http://www.harcourtcollege.com/

http://www.corporate-images.com/

http://www.tri-media.com/

http://www.morse-balegno.com/

Tom Duncan and Sandra Moriarity in Driving Brand Value

Loyd S. Pettegrew, Ph.D.

Argyris, Putnam & Smith, 1985; Van deVen, 1989

Weick, 1983)

Stephanie Baca

Kennedy & Deal, 1981

Daft & Weick, 1984

Pacanowsky & Trujillo, 1983

VanMaanen & Schein, 1979

Temin & Galambos, 1989

Caywood, 1992

McKenzie, 2000

Magazines & Journals:

Journal of integrated marketing communication

Advertising Age, October 1993: Don Schultz, “ Maybe we should start all

over with an IMC organization”, 1Source: Council for the Advancement and Support of Education

CURRENTS Magazine, 19982Source: “Sales & Marketing Management" September, 1996

Promotion Marketing Association - Publications, 1998.

Marketing News - Moriarty, Sandra (1997), "IMC needs PR's stakeholder

focus,"

Communication World - Reich, Ken (1998) "IMC: Through the looking

glass of the new millennium,"

Schultz, Don (1998), "Invest integration". Industry Week, 247:10, May

18, 20.

Schultz, Don E. & Kitchen, Philip J.1997. Integrated marketing

communications in U.S.

Journal of Advertising Research, 37:5, September/October, 7-18.


Sales & Marketing Management - Yarbrough, John F. 1996. Putting the

pieces together.
