What are the major factors changing the face of todays marketing communications?

Chapter: Integrated Marketing Communication Strategy

Integrated Marketing Communications

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During the past several decades, companies around the world have perfected the art of mass marketing—selling highly standardized products to masses of customers. In the process, they have developed effective mass-media advertising techniques to support their mass-marketing strategies. These companies routinely invest millions of dollars in the mass media, reaching tens of millions of customers with a single ad. However, as we move into the twenty-first century, marketing managers face some new marketing communications realities.

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The Changing Communications Environment

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Two major factors are changing the face of today's marketing communications. First, as mass markets have fragmented, marketers are shifting away from mass marketing. More and more, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. Second, vast improvements in information technology are speeding the movement toward segmented marketing. Today's information technology helps marketers to keep closer track of customer needs—more information about consumers at the individual and household levels is available than ever before. New technologies also provide new communications avenues for reaching smaller customer segments with more-tailored messages.

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The shift from mass marketing to segmented marketing has had a dramatic impact on marketing communications. Just as mass marketing gave rise to a new generation of mass-media communications, the shift toward one-to-one marketing is spawning a new generation of more specialized and highly targeted communications efforts.

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The new media environment: The relatively few mass magazines of past decades have been replaced today by thousands of magazines targeting special-interest audiences. HFM alone publishes more than 20 specialty magazines—ranging from Women's Day and Elle to Car & Driver, Road & Track, Cycle World, and Popular Photography. Courtesy of Hachette Filipacchi Media U.S., Inc.

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Given this new communications environment, marketers must rethink the roles of various media and promotion mix tools. Mass-media advertising has long dominated the promotion mixes of consumer product companies. However, although television, magazines, and other mass media remain very important, their dominance is now declining. Market fragmentation has resulted in media fragmentation—in an explosion of more-focused media that better match today's targeting strategies. Beyond the traditional mass-media channels, advertisers are making increased use of new, highly targeted media, ranging from highly focused specialty magazines and cable television channels, to CD catalogs and Web coupon promotions, to airport kiosks and floor decals in supermarket aisles. In all, companies are doing less broadcasting and more narrowcasting.

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The Need for Integrated Marketing Communications

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The shift from mass marketing to targeted marketing, and the corresponding use of a larger, richer mix of communication channels and promotion tools, poses a problem for marketers. Customers don't distinguish between message sources the way marketers do. In the consumer's mind, advertising messages from different media and different promotional approaches all become part of a single message about the company. Conflicting messages from these different sources can result in confused company images and brand positions.

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All too often, companies fail to integrate their various communications channels. The result is a hodgepodge of communications to consumers. Mass-media advertisements say one thing, a price promotion sends a different signal, a product label creates still another message, company sales literature says something altogether different, and the company's Web site seems out of sync with everything else.

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The problem is that these communications often come from different company sources. Advertising messages are planned and implemented by the advertising department or advertising agency. Personal selling communications are developed by sales management. Other functional specialists are responsible for public relations, sales promotion, direct marketing, online sites, and other forms of marketing communications.

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Recently, such functional separation has been a major problem for many companies and their Internet communications. Many companies first organized their new Web communications operations into separate groups or divisions, isolating them from mainstream marketing activities. However, whereas some companies have compartmentalized the new communications tools, customers won't. According to one IMC expert:

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The truth is, most [consumers] won't compartmentalize their use of the new systems. They won't say, "Hey, I'm going off to do a bit of Web surfing. Burn my TV, throw out all my radios, cancel all my magazine subscriptions and, by the way, take out my telephone and don't deliver any mail anymore." It's not that kind of world for consumers, and it shouldn't be that kind of world for marketers either.3

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To be sure, the Internet promises exciting marketing communications potential. However, marketers trying to use the Web alone to build brands face many challenges. One limitation is that the Internet doesn't build mass brand awareness. Instead, it's like having millions of private conversations. The Web simply can't match the impact of the Super Bowl, where tens of millions of people see the same 30-second Nike or Hallmark ad at the same time. Using the Internet, it's hard to establish the universal meanings—such as "Just Do It!" or "When you care enough to send the very best"—that are at the heart of brand recognition and brand value.

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Thus, if treated as a special case, the Internet—or any other marketing communication tool—can be a disintegrating force in marketing communications. Instead, all the communication tools must be carefully integrated into the broader marketing communications mix. Today, the best bet is to wed the emotional pitch and impact of traditional brand marketing with the interactivity and real service offered online. For example, television ads for Saturn still offer the same old-fashioned humorous appeal. But now they point viewers to the company's Web site, which offers lots of help and very little hype. The site helps serious car buyers select a model, calculate payments, and find a retailer online.

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Even marketers that can't really sell their goods via the Web are using the Internet as an effective customer communication and relationship enhancer. For example, Harpo Enterprises, the company that oversees The Oprah Winfrey Show, also maintains a Web site (www.oprah.com) that offers in-depth information on show topics, access to footage taped after the live show ends, and a sneek peek at the content of upcoming issues of O magazine. The Web site, show, and magazine are all consistently designed. Says one analyst, the "consistency in design and tone makes the brand stronger because the consumer immediately recognizes the image, which engenders emotion and brand loyalty."4

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In the past, no one person or department was responsible for thinking through the communication roles of the various promotion tools and coordinating the promotion mix. Today, however, more companies are adopting the concept of integrated marketing communications (IMC). Under this concept, as illustrated in Figure 15.1, the company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.5

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As one marketing executive puts it, "IMC builds a strong brand identity in the marketplace by tying together and reinforcing all your images and messages. IMC means that all your corporate messages, positioning and images, and identity are coordinated across all [marketing communications] venues. It means that your PR materials say the same thing as your direct-mail campaign, and your advertising has the same 'look and feel' as your Web site."6

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IMC calls for recognizing all contact points where the customer may encounter the company, its products, and its brands. Each brand contact will deliver a message, whether good, bad, or indifferent. The company must strive to deliver a consistent and positive message at all contact points.

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To help implement integrated marketing communications, some companies appoint a marketing communications director—or marcom manager—who has overall responsibility for the company's communications efforts. Integrated marketing communications produces better communications consistency and greater sales impact. It places the responsibility in someone's hands—where none existed before—to unify the company's image as it is shaped by thousands of company activities. It leads to a total marketing communication strategy aimed at showing how the company and its products can help customers solve their problems.

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