IMC: strong in theory but struggling in practice

Dienel, Katja

IMC: strong in theory but struggling in practice

Practical guidance for the adaptation of IMC

von Katja Dienel (Autor:in)

BWL - Offline-Marketing und Online-Marketing

Zusammenfassung

Inhaltsangabe:Abstract:
Since the 1990s Integrated Marketing Communications (IMC) has particularly influenced both the theory and practice of communication management. The complex and evolving shift from the nineteenth century product centred approach to that of the twentieth century customer and twenty-first century stakeholder approaches has necessitated the adaptation of the concept.
Integrated Marketing Communications (IMC) has evolved from the roots of psychology, marketing and mass communication. Despite its respected lineage, however, IMC remains an immature field that has struggled to establish its own unique body of literature. A key milestone in IMCs emerge occurred in 1991, when a task force of academics and professionals was formed in an effort to agree on such fundamental issues as the most appropriate terminology and definition of the IMC concept. Interestingly, the task force actually debated the use of at least three different terms which were integrated communications, total communications, and IMC . Although the task force did not forge a clear consensus on which term to use, IMC emerged as most commonly cited option and began to enter the mainstream of mass communications and marketing discussions in the early 1990s. Therefore literature in this paper is used as if it had intended to refer to integrated marketing communications.
IMC is aiming to provide a consistent and effective message to the customers and other stakeholders as strategic consistency would lead to an increased brand value providing a competitive advantage for the given company. From this perspective IMC is a supportive concept. Yet, in practice, IMC has never been fully embraced. One of the most significant hindrances to IMC adaptation within a corporation has been the lack of agreement on a variable organisational structure. The purpose of this paper is to investigate proposed implementation structures and evaluate their impact in practice. It will identify both the benefits and limitation of these concepts. This paper will suggest the theoretical adaptation of change management within the IMC process as a pathway to practical success.
To provide an introduction to the topic, chapter one stresses the historical development of the marketplace verifying the need of integrated marketing communications practices. It is, in addition, presenting the evolving nature of the concept, followed by offering definitions this paper will be based on. Chapter […]

Leseprobe

Inhaltsverzeichnis

Katja Dienel

IMC: strong in theory but struggling in practice

Practical guidance for the adaptation of IMC

ISBN-10: 3-8324-9798-6

ISBN-13: 978-3-8324-9798-9

Druck Diplomica® GmbH, Hamburg, 2006

Zugl. Ecole Supérieure de Commerce de Montpellier, Montpellier, Frankreich,

Bachelorarbeit, 2006

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Acknowledgments

This thesis is the result of six weeks of research and writing during the summer 2006 as

part of the Double-Degree-Exchange-Programme between the Sup de Co Montpellier,

France and the University of Applied Science Hamburg, Germany. I would like to thank

my positive supervisor Clin Guru at the division of International Marketing, Ecole

Supérieure de Commerce de Montpellier, France, for the guidance and help during this

time. It has been a very interesting learning experience.

In addition, I would like to thank my family and friends for all their encouraging and

constructive support during my studies and the final dissertation.

Ecole Supérieure de Commerce Montpellier, 30 June 2006

Katja Dienel

iii

Declaration

I hereby declare that no portion of the work referred to in the thesis has been submitted

in support of an application for another degree or qualification of this or any other

university or other institute of learning.

Copyright Statement

full or of extracts may be mad only in accordance with instructions given by the author.

Further copies (by any process) of copies made in accordance with such instructions

may not be made without the permission (in writing) of the author.

Abstract

Since the 1990s Integrated Marketing Communications (IMC) has particularly

influenced both the theory and practice of communication management. The complex

and evolving shift from the nineteenth century `product' centred approach to that of the

twentieth century `customer' and twenty-first century `stakeholder' approaches has

necessitated the adaptation of the concept.

IMC is aiming to provide a consistent and effective message to the customers and other

stakeholders as strategic consistency would lead to an increased brand value providing a

competitive advantage for the given company. From this perspective IMC is a

supportive concept.

Yet, in practice, IMC has never been fully embraced. One of the most significant

hindrances to IMC adaptation within a corporation has been the lack of agreement on a

variable organisational structure. The purpose of this paper is to investigate proposed

implementation structures and evaluate their impact in practice. It will identify both the

benefits and limitation of these concepts. This paper will suggest the theoretical

adaptation of change management within the IMC process as a pathway to practical

success.

Keyword(s): Integrated Marketing Communications, Change Management, IMC

implementation, Organisational barriers

Table of Contents

1. Introduction... - 1 -

2. Integrated Marketing Communications (IMC) ... - 3 -

2.1. The development of the Twenty-First Century Marketplace... - 3 -

2.2. The concept of IMC ... - 6 -

2.3. IMC in practice ... - 9 -

2.4. Organisational challenges of the IMC concept ... - 12 -

3. Implementation Models for IMC ... - 17 -

3.1. Duncan and Caywood The Seven Evolutionary Steps Model ... - 17 -

3.2. Gronstedt The Stakeholder Relations Model ... - 21 -

3.3. Hunter A Five Stages Model... - 24 -

3.4. Grunig and Grunig The Public Relations Based Approach ... - 27 -

3.5. Gronstedt The Three-Dimensional Model ... - 29 -

3.6. Schultz and Kitchen The Eight Step Process ... - 32 -

4. Recommendations... - 38 -

4.1. Effective Change Management as a successful implementation medium ... - 38 -

4.2. The Cyclical Implementation Model of IMC... - 46 -

5. Conclusion ... - 50 -

References... - 52 -

Table of Figures

Figure 1: The Seven Evolutionary Steps Model ... - 18 -

Figure 2: The Stakeholder Relations Model ... - 22 -

Figure 4: The Three-Dimensional Model ... - 30 -

Figure 5: The Eight Step Process... - 33 -

Figure 6: Activities Contributing to Effective Change Management ... - 39 -

Figure 7: Organisation Change as a Transition State... - 42 -

Figure 8: The Cyclical Implementation Model... - 47 -

- 1 -

1. Introduction

Since the 1990s Integrated Marketing Communications (IMC) has particularly

influenced both the theory and practice of communication management. The complex

and evolving shift from the nineteenth century `product' centred approach to that of the

twentieth century `customer' and twenty-first century `stakeholder' approaches has

necessitated the adaptation of the concept.

Integrated Marketing Communications (IMC) has evolved from the roots of

psychology, marketing and mass communication. Despite its respected lineage,

however, IMC remains an immature field that has struggled to establish its own unique

body of literature (McGrath, 2005). A key milestone in IMC's emerge occurred in

1991, when a task force of academics and professionals was formed in an effort to agree

on such fundamental issues as the most appropriate terminology and definition of the

IMC concept (Spotts et al, 1998). Interestingly, the task force actually debated the use

of at least three different terms which were "integrated communications", "total

communications", and "IMC" (Duncan, Caywood and Newsom, 1993, cited by

McGrath, 2005, p.55). Although the task force did not forge a clear consensus on which

term to use, IMC emerged as most commonly cited option and began to enter the

mainstream of mass communications and marketing discussions in the early 1990s

(Schultz et al, 1993). Therefore literature in this paper is used as if it had intended to

refer to integrated marketing communications.

IMC is aiming to provide a consistent and effective message to the customers and other

stakeholders as strategic consistency would lead to an increased brand value providing a

competitive advantage for the given company. From this perspective IMC is a

supportive concept. Yet, in practice, IMC has never been fully embraced. One of the

most significant hindrances to IMC adaptation within a corporation has been the lack of

agreement on a variable organisational structure. The purpose of this paper is to

investigate proposed implementation structures and evaluate their impact in practice. It

will identify both the benefits and limitation of these concepts. This paper will suggest

the theoretical adaptation of change management within the IMC process as a pathway

to practical success.

- 2 -

To provide an introduction to the topic, chapter one stresses the historical development

of the marketplace verifying the need of integrated marketing communications

practices. It is, in addition, presenting the evolving nature of the concept, followed by

offering definitions this paper will be based on. Chapter one is further evaluating the

adaptation of IMC in business practice to further emphasise possible organisational

barriers to its implementation. In order to investigate practical guidance for IMC

implementation, chapter two provides six models that are evaluated in terms of their

practical appeal for a successful shift towards IMC practice within corporations. This

chapter represents the foundation for chapter three that will then investigates

recommendations to effective IMC adaptation. It is in particular epitomising the need of

involving effective change management for a successful IMC implementation.

Additionally, it is providing a cyclical model that would be reasonable to consider

whilst adapting IMC within organisations.

- 3 -

2. Integrated Marketing Communications (IMC)

Integrated Marketing Communications (IMC) has been considered as "the major

communications development of the last decade of the 20th century" (Kitchen et al,

2004, p. 20), "one of the hottest topics in the whole marketing arena" (Schultz, 1993a, p.

6), and "the dominant marketing concept of the 1990s" (Harris, 1997, p. 91). This

section will provide an explanation of how and why marketing and communication

management developed over the past sixty years in theory and practice. In addition, it

will identify the current conceptual approach to IMC and its practical challenges within

the implementation process.

2.1. The development of the Twenty-First Century Marketplace

According to Schultz and Schultz (2004), few organisations were traditionally involved

in the integration of their business functional areas. Gronstedt (2000) argues that

organisations were strictly divided into individual, separate, and independent business

functions or units that operated as unique profit centres. Organisations did not feel any

need to integrate marketing and communication functions.

In the later 1950s, Jerome McCarthy, published a marketing textbook that focused on

the "four Ps of Marketing": product, place, price and promotion. Organisations used the

four Ps as the basis to their marketing activities. During the 1950s and early 1960s, the

primary goal of most companies was to produce and distribute a flood of products and

services (Schultz and Barnes, 1999). Throughout this period consumers were willing to

buy almost anything manufacturers and service providers offered. Schultz and Barnes

(1999, p.18) identify this marketplace as the "historical marketplace". The marketplace

was characterised by large, national brand marketing organisations. Organisations used

huge amounts of traditional media advertising in order to convince customers and

consumers of their value. In these terms integrated marketing communications could be

perceived as a starting concept that tied all communication activities together under the

banner of the marketer's brand. However, organisations controlled, or at least managed,

most of the information technology and therefore dominated the channels, media and

consumers. Due to the dominant role of the marketer there was little or no need for

integration (Niemann, 2005).

- 4 -

Schultz's historical marketplace model (1997-1998) is referred to by Gronstedt (2000,

p.5) in his description of the "production century". Gronstedt (2000) identifies

organisations during this period as being characterised by incongruent departments and

opposing targets. In addition to the characteristics of the historical marketplace and the

production century proposed by Gronstedt (2000), Schultz (1994, p.2) refers to the

"inside-out" thinking of an organisation. An inside-out organisation sets out to meet

quarterly targets, market share and volume without considering the customers or

prospects as the key to their success. The historical marketplace is therefore built on

reaching short-term goals and returns and not on reaching long-term sustainability.

The primary change in marketing and communication can be associated with transitions

in information technology. This change led to a marketplace that Schultz and Barnes

(1999, p.11) refer to as the "current marketplace". In this system, the distribution

channel is the dominant force. Information technology, such as point-of-sale systems,

scanners, retail data gather resources to channel larger amounts of quality information

about the customers and marketplace than is available to the manufacturer. The channel

members deal directly with consumers and end users. Consequently, they are enabled to

acquire and control all the required marketplace information (Schultz 1997-1998, p.3).

Similar to the current marketplace concept is what Gronstedt (2000, p.15) names the

"customer century". This marketplace is characterised by the alignment of the

organisation's entire communication function. All efforts are aimed at delivering

coherent, timely, customer-oriented marketing communications efforts through all

forms and types of distribution systems.

It could be argued that a new type of a marketing communications strategy began to

evolve in order to replace the promotional mix of the early 1980s. Organisations started

searching for ways to influence the behaviour of customers and prospects in an

increasingly cluttered marketplace (Schultz and Schultz, 2004). Therefore the majority

of organisations began to change from the traditional four Ps focus to a more customers-

centred approach of marketing communications activities. Schultz and Barnes (1999,

p.192-195) argue that the organisations had to move from using "inside-out thinking",

focusing on the needs of the organisation, to "outside-in thinking", focusing externally

on customers' needs and wants. As a result, integrated marketing communications has

moved from a tactical activity practised in the past, to a more strategic, managerial,

- 5 -

customer-driven activity in the current marketplace. However, the idea of the customer

century or the current marketplace is still based on the traditional marketing

management principle of focusing on the customer rather than on the broader approach

of the stakeholder.

At present, we see a shift of power in the marketplace, from the marketer and

distribution channel to the consumer or customer that characterises the twenty-first-

century marketplace (Schultz and Barnes, 1999). It is the twenty-first-century

marketplace that brings the greatest changes in the needs and wants placed on IMC.

Niemann

(2005) claims that the traditional outbound communication systems designed

and used in the historical and current marketplaces will face enormous changes. In

addition, Schultz and Barnes (1999) add that the twenty-first-century marketplace is

interactive. Consumers and organisations co-exist in a continual exchange of

information. As the consumer gains more and more access to information, knowledge

and technology, the power is shifting from marketer or channel to consumer. It is

further argued that the major difference is the focus shifts to a broader approach that

will include all stakeholders (Niemann, 2005). In the twenty-first century marketplace

stakeholders refer not only to individuals the organisation contacts; but moreover whom

the organisation listens and responds to (Schultz, 1997-1998). Schultz (1997-1998)

states, however, the envisioned marketplace is still based on the same principles of the

current marketplace emphasising the outside-in approach. Niemann (2005) claims that

the outside-in approach needs to be taken one step further to a totally interactive

approach of dealing with stakeholders. Stakeholders will have significantly greater

access to information than in all previous marketplaces. Consequently, organisations

will become more transparent as corporate citizens. It is obvious that organisations are

forced to establish close social relationships with real stakeholders than ever before. The

challenge to manage the brand relationships with stakeholders whilst driving the brand

equity can be approached with the IMC concept. Integrated marketing communications

has moved from being simply a method of coordinating and aligning external messages

the firm wanted to send to relevant customers towards a more holistic view of

communication as the backbone of not just the marketing function but the entire

business enterprise as well.

- 6 -

2.2. The concept of IMC

The historical development of the modern marketplace indicates that IMC grew

primarily out of a need for marketing organisations to move beyond functionally driven,

internally focused approaches to marketing and communication. It attempts to shift the

focus from an inside-out internal orientation to one that is outside-in.

Cornelissen (2003) argues that academic writers (e.g. Schultz, Tannenbaum and

Lauterborn, 1994; Nowak and Phelps, 1994, Duncan, 2002; Schultz, 1993c, 1996, 1999)

subsequently developed the academic theory of IMC with the objective of addressing,

describing and explaining current marketing communication definitions and practices.

To many, IMC has become recognised as the process of integrating all the elements of

the promotional mix (Pickton and Broderick, 2001). However, the evolution of the IMC

concept is visualised by the use of three different definitions.

Reported in Schultz (1993a, p.10) the American Association of Advertising Agencies

(AAAA) defined IMC as following:

"IMC is a concept of marketing communications planning that recognises the

added value of a comprehensive plan that evaluates the strategic roles of a

variety of communication disciplines for example, general advertising, direct

response, sales promotion, and PR and combines these disciplines to provide

clarity, consistency, and maximum communications impact".

According to Pickton and Broderick (2001, p.707), marketing communications tools

that were traditionally separated and specialised in "above the line" (advertising) and

"below-the-line" (all forms of promotions other than advertising) activities are now

challenged by the IMC concept. This definition highlights that an alignment of various

communication functions would increase communication efficiency, based on the

premise of synergy. Pickton and Broderick (2001) claim that synergy is the principal

benefit when bringing together the various facets of marketing communications in a

mutually supportive way. The IMC concept fosters the so-called "zero-based thinking"

to choose the most cost-effective communication solutions (Cornelissen, 2003, p.220).

Decisions will be focused on which marketing communications tool offers the most

benefit for the cooperation, rather than on the medium which appears the most attractive

to the planner (Schultz and Kitchen, 2000). However, it remains evident that the focus

- 7 -

of this definition is still very much on the communication functions (tactics) rather on

the broad view of establishing close relationships to stakeholders. This definition

represents the early stage of the IMC concept as various underlying principles were

addressed.

The evolutionary development of the concept can be seen when the definition in the

early stage is compared with the definition proposed by Keegan et al (1992, p.631):

"Integrated Marketing Communications is the strategic co-ordination of all

messages and media used by an organisation to collectively influence its

perceived brand value".

The contribution of this definition is the use of "strategic co-ordination" implementing

the move from tactical coordination towards a more strategic, managerial activity in

order to realise synergies. In addition, Keegan et al add a new aspect of stating "all

messages" highlighting that both internal and external actions contribute to the

marketing communications efforts of the organisation. He further stresses the focus of

brand value resulting in a demand on a behavioural change of marketing and

communication professionals. At the heart of this definition is the assumption that when

multiple messages from a company to its audiences become consistent across time and

targets, the credibility and value of both the company and its brand(s) will increase.

The last definition by Duncan (2002, p.8) demonstrates the current conceptual

perception of IMC and

will form the foundation of this paper:

"A cross-functional process for creating and nourishing profitable relationships

with customers and other stakeholders by strategically controlling or influencing

all messages sent to these groups and encouraging data-driven, purposeful

dialogue with them."

An important contribution of the definition is the inclusion of "profitable relationships".

Profitable customer relationships are specified, because not all relationships are of equal

value to an organisation. Moreover, Duncan acknowledges that integrated marketing

communications involves a cross-functional process. This indicates that all

organisations' departments affecting the customer must have an understanding of

working collectively in the planning of brand relationships. Furthermore, adding the

notion of stakeholders implies the shift in the

IMC concept from customer target

audiences to the inclusion of key stakeholder groups such as employees, investors,

- 8 -

suppliers, distributors, media and the community. Additionally, Duncan concentrates on

data-driven, two-way communication to customers and other stakeholders. This focus is

necessitated by the increasing amount of communication taking place between the

organisation and the stakeholders. This definition provides the three main aspects of

Integrated Marketing Communications: strategically consistent brand communication to

stakeholders found on a zero-based approach, cross-functional planning and monitoring,

and data-driven targeting and communication to achieve sustainable competitive

advantage.

Duncan's (2002) definition provides a base for examining and understanding the

advantages of the IMC concept. The historical development of the marketplace has

indicated that great creative is no longer sufficient. In a cluttered and over-loaded

marketplace coherent images and messages lead to a greater impact with targeted

audiences as repeatedly shown in a psychological research by Moriarty (1997). It is

therefore the integrated marketing communications effort which ensures that brand

messages are strategically consistent and new communication technologies are used to

facilitate profitable interactions with customers and other stakeholders.

Duncan's (2002, p.8) notion of "creating and nourishing profitable relationships with

customers and other stakeholders" implies that the value of brand equity has become a

critical issue for organisations profitability. The increase importance of brand's image

can be associated with high amount of mergers and acquisitions over the last decade of

the twentieth century. Kitchen and Proctor (2002) add that there has been a significant

move away from line branding towards corporate brand. The main reason is obviously

the desire to amortise communication across the entire portfolio as the cost of designing

and supporting individual brands continues its upward curve. However, board members

and executives have come to realize that a major portion of shareholder value is brand

equity and must be therefore better managed (Laczniak, 2005). IMC provides a way to

identify and prioritize brand contact points and preferences. According to Duncan

(1997) contact points are all the ways in which customers and prospects are in touch

with the organisation. Such ways can be the brand, employees, channel partners, service

groups or any other people as well as activities that are associated directly to the brand.

These contact points have an impact to present or future considerations of the brand and

should be targeted to an optimum. Contact preferences are the means which are

Details

Seiten
Erscheinungsform: Originalausgabe
Jahr: 2006
ISBN (eBook): 9783832497989
ISBN (Paperback): 9783838697987
DOI: 10.3239/9783832497989
Dateigröße: 609 KB
Sprache: Englisch
Institution / Hochschule: Ecole Supérieure de Commerce de Montpellier – International Marketing Department
Erscheinungsdatum: 2006 (September)
Note: 1,0
Schlagworte: integrated marketing change management implementation organisational learning

Autor

Katja Dienel (Autor:in)