Integrated Marketing Communications at the Hilton Hotel Chain - Case Study Example

Integrated Marketing Communications at the Hilton Hotel Chain Integrated marketing communications (IMC) is a “a concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organisation and its products” (Kotler 2001, p. 452). IMC is purposely intended to aid organisations to build strong brand identities through the coordination of all marketing communications. As Gould (2000); Kotler (2001); and Pitta, Weisgal and Lynagh (2006) note, IMC means that advertisements placed in the different media channels – e.g. TV and newspapers – should convey the same message and evoke the same feelings just like the contents of an organisation’s website and the public relation materials used by the organisation. On her part, Caemmerer (2009) argues that the IMC process has six stages which include situational analysis; identifying the marketing communication opportunities; selecting an agency; developing and implementing the IMC campaign; evaluating the campaign; and planning for the future. This essay focuses on the IMC strategy used by the Hilton Hotel chain, and starts by identifying the promotion tools that the hotel chain uses, followed by an analysis on existing theoretical arguments. The IMC strategy at the Hilton Hotel chain The Hilton Hotel chain has faced challenges in integrating promotions throughout the world to create focused and sales-oriented messages throughout the world (Sandhausen 2008). With 3,900 hotels across 90 countries (Hilton Worldwide 2013), having an effective IMC is not an easy task. Like many hotels, the Hilton IMC toolbox include direct mail, advertising (print, radio, TV, billboards, and the internet), and public relations (newsletters, collecting feedback from consumers, event management, press coverage and media relations). Direct Mail The Hilton has a used direct mail marketing for the most part of its 2000s existence. The major reason for the use of direct mail is to satisfy customers’ information needs. Speaking about the marketing approach, Joanie Flynn, the marketing director of leisure and resort at the hotel specifically states that direct mail is used to inform customers of the vacation packages offered by different Hilton hotels located across the world. Notably, Flynn (2013 cited by Direct Marketing IQ 2013) indicates that the content of the direct mail campaign launched by the Hilton at different times in its operations supports the main purpose of the hotel, which is indicated as: to delight guests, team members, and owners. Theoretically, direct mail marketing is an ideal way of attracting new customers, while encouraging loyalty among existing customers (Eagle, Kitchen &Bulmer 2007). However, it is indicated that for direct mail marketing to succeed, the firm must identify the right customers to target; identify the exact marketing outcome they wish to achieve; and design the appropriate message. Using the Easy Escapes direct mail campaign by the Hilton as an example, it would appear that the hotel chain met the above indicated success factors. For example, the Hilton sent direct mail to targeted consumers based on transactional data and hotels location. Additionally, the hotel had identified increased sales as the main thing that it wanted to achieve, and as such, had designed messages that were appealing to the targeted consumers encouraging them to try out new holiday destinations. Arguably, as part of Hilton’s IMC, direct mail messages are designed to conform to the organisation’s brand image and purpose. The latter seeks to position Hilton Hotel chain as a provider of exceptional experience, while the former seeks to make the hotel chain a delight to guests, owners and team members. Advertising Advertising approaches are varied, as Hilton has at least embraced three such approaches. They include television advertising, billboard advertising, and print advertising. According to Sandhausen (2008), most firms with an IMC strategy use different advertising mediums for different purposes. For example, a firm can choose to create brand awareness using TV advertisements, educate the consumer market about products or services using print advertising, and keep the brand’s message in consumers’ mind through strategically positioned billboard advertisements. To ensure that the IMC campaigns are effective, Sandhusen (2008, p. 352) observes that business entities must identify “images and messages that work best across all media platforms, with the understanding that some media will be more effective than others”. At the Hilton, the hotel chain has used advertising in both the usual and trend-setting manners. In 2010 for example, Hilton Hotels’ name was featured in the Up in the Air film, where its traveller programmes were showcased. According to Czarnecki (2013) the advertising strategy used by Hilton Hotels through the film not only worked for its product placement, but also in enhancing its brand placement and integration. From an IMC perspective, it would appear that the advertisement was living up to the company’s purpose of providing delightful experiences to its guests. It could also be argued that by including the advertisement in the film’s concept, the organisation lived up to its delightful promise. As noted by Czarnecki (2013), while companies continue looking for opportunities where they can showcase their products and services, the reality on the ground is that consumers are less willing to allow adverts to disrupt their entertainment. As such, and especially for a hotel like Hilton which has promised its customers delightful services, disrupting their entertainment would be least desirable. In other words, the manner in which the advertising messages are delivered fits into the bigger brand message communicated through other marketing channels, hence effective IMC. Like direct mail and advertising, public relations practice is also part of the integrated marketing communications adopted by the Hilton Hotel chain. Of special mention is the press coverage the hotel chain attracts, which is arguably a result of the media relations that its management has forged over the years. In June 2010, for example, the Hilton Hotel chain was thrown into controversy by the media for a brothel that reportedly operated inside one of the chain’s hotels in Southern China. Notably, a few months later in November 2010, the same media played a pivotal role in highlighting the chain hotel’s efforts targeted at abolishing child sex trafficking not only in its hotels but also elsewhere (Bier 2010). When analysed from an IMC perspective, it would appear that the PR campaigns by the hotel chain were geared towards assuring customers that Hilton Hotel chains should not be deemed to have departed from its purpose of providing a delightful experience to customers just because of one unique incident in China. To cement its argument, the hotel chain engaged the media through bringing attention to the apparent efforts it had put in place to fight child sex trade and human trafficking. Considering that there are no empirical measurement guidelines in IMC theory as noted by Caemmerer (2009), this essay’s analysis of IMC at the Hilton Hotel chain is purely induction. Indeed, the Hilton Hotel chain does not make any reference to IMC on its website (Hiltonworldwide.com). The foregoing means that this essay, in its indication that Hilton Hotel chains follows through with an IMC strategy could have fallen victim to what Kitchen et al. (2004) and Kitchen et al. (2005) refer to as superficial commitment to IMC by a firm. The aforementioned notwithstanding, Schultz and Kitchen (2000) observe that at the very basic, the requirement of IMC requires the firm to tactically coordinate marketing communications. Such coordination should be done outside and within the business led by internal managers. Viewed in the context of the Hilton Hotel chains, one can argue that the management therein has done relatively well in ensuring that all hotels under the Hilton chain convey the same message to customers with special consideration given to cultural differences. The second stage of IMC development as suggested by Schultz and Kitchen (2000) indicates that the firm gathers customer information and uses the same when designing appropriate marketing communications. Hilton arguably has undergone through the aforementioned second IMC development through its loyalty programme and other strategies that it uses to gather consumer information. The hotel for example has all customers targeted through direct mail advertising in their mailing list, which means that the hotel is well aware of their potential preferences. The third and fourth stages of IMC development include applying information gathered from consumers and using it in communication planning, and evaluating whether the IMC is effective respectively. Used in Hilton’s context, it would appear that the hotel chain applies the information gathered from its customers in designing and implementing its IMC. The example cited earlier regarding Hilton Hotel chain PR strategy could also be interpreted as a reflection of the challenges that firms face when trying to implement effective IMC strategies. While it was clear that Hilton’s media relations would have expected the hotel to be consulted before any scandalous information is published about the hotel chain, the reality on the ground as noted by Douglas (2003) and Keller (2001) is that the media is fragmented and businesses are hardly able to manage media relations with all media channels effectively. In conclusion, it is notable that although the Hilton Hotel chain does not comment on the IMC efficacy, its continued use of some marketing approaches such as direct mail marketing, advertising on billboards and TV, and public relations are arguably testament to the same – i.e. the efficacy of its IMC strategy. References Bier, J. K 2010, ‘Hilton working to abolish child sex trafficking’, Financial Advisor Magazine, viewed 15 July, 2013, . Caemmerer, B 2009, ‘The planning and implementation of integrated marketing’, Marketing intelligence & Planning, vol. 27, no. 4, pp. 524-538. Czarnecki, G 2013, ‘The rise of branded entertainment’, Brand White Papers, viewed 15 July, 2013, Direct Marketing IQ 2013, ‘Listen to your customers’, viewed 15 July 2013, . Douglas, T 2003, ‘Clear vision is needed to prove BARB’s Worth’, Marketing Week, vol. 26, no. 10, pp. 1-21. Eagle, L., Kitchen, P & Bulmer, S 2007, ‘Insights into interpreting integrated marketing communications: a two-nation qualitative comparison’, European Journal of Marketing, vol. 41, no. 7/8, pp. 956-970. Gould, S 2000, ‘The state of IMC research and applications’, Journal of Advertising Research, September-October, pp. 22-23. Hilton Worldwide 2013, ‘Discover a world of opportunity’, viewed 15 January 2013, . Keller, K. L 2001, ‘Mastering the marketing communications mix: Micro and macro perspectives on integrated marketing communications programs’, Journal of Marketing Management, vol. 17, no. 7/8, pp. 819-47. Kitchen, P., Brignell, J., Li, T & Spickett-Jones, G 2004, ‘The emergence of IMC: a theoretical perspective’, Journal of Advertising Research, vol. 44, no.1, pp. 19-33. Kitchen, P., Schultz, D., Kim,I., Han, D., & Li, T 2005, ‘Will agencies ever get (or understand) IMC?’, European Journal of Marketing, vol. 24, no.1, pp. 51-78. Kotler, P 2001, ‘Integrated marketing communication strategy’, Developing the Marketing mix, chapter 13, viewed 15 July 2013, . Pitta, D.A., Weisgal, M & Lynagh, P 2006, ‘Integrating exhibit marketing communications’, Journal of Consumer Marketing, vol. 23, no. 3, pp. 156-166. Sandhusen, R.L 2008, Marketing, Barron’s education series, Hauppauge, NY. Schultz, D & Kitchen, P 2000, Communicating globally: An integrated marketing approach, Palgrave-Macmillan, Basingstoke. Read More