Future of Integrated Marketing Communications - Literature review Example

Integrated Marketing Communications Introduction Various companies have a way of doing things and sending a unique message to their customers in order to create awareness of products available and to maintain customer loyalty. Integrated marketing communications (IMC) is described as a concept used in management and is considered to make all aspects of marketing communication which include advertising; sales promotion, public relations, and direct marketing collaborate as an integrated force, rather than separation each to work on its own. Belch and Belch (2009) describes that this is said to be managing brand interactions with customers and the principle is to send a message in everything that the company does and what it does not do. Larry (2008) shows IMC is also a process which manages customer relationships that facilitates brand value through improved communication efforts. The above study evaluates IMC and identifies the factors that drive integration. It also shows what the future holds for IMC and the effectiveness of marketing communications. According to Kotler and Armstrong (2009) long ago, companies used to determine when, where and how to sell and market its products but with the improvement of technology, the driving force is the internet, credit cards, and delivery services as customers now determine and control what, where and how to buy. These changes have significantly companies’ strategies of marketing their products and the most successful would be to use a customer focused approach. One of these approaches is by use of integrated marketing communications as it is also a data driven method of communicating to the customers. Most of the companies have adopted the method such as Apple computers, Nestle, IBM, Microsoft and many others. Integrated marketing communications (IMC) is also a concept of marketing communications planning that tend to add value of a major plan evaluating the strategic role of various communication principles. These include the use of sales promotions, public relations, and direct response. These principles are connected in order to provide clarity and consistency. For IMC to be successful, the firm should adopt the right combination of promotion tools and techniques that define the roles and should be easily coordinated to achieve desires outcome. Perreault and McCarthy (1997) explains that looking at this perspective, Integrated marketing communications may be describes as a strategic management of messages and media used by organisations in marketing their products. The major aspects are one; to make the brand be present and at customers reach and that the brand should spread the same message to customers but in different number of channels (O'guinn 2008). Once organisations do not focus on this, the brand may miss out on major contact points and may not be found when the customers need it. One may also reach our different contact points with different message and the customers may get confused about the brand as there is no one voice that associates the brand. Stroke (2008) shows the major role of integrating marketing communications is first to create awareness to the customers and second is to maintain customers’ loyalty. This therefore harmonises the major purpose, the key goals and strategies therefore creating similar messages and adequate channel of communication with the rest of the stakeholders. Strategic role of marketing communications According to Strokes (2008) the strategic role of IMC is to build a long term relationship with the stakeholder through various components which include foundation. This comprise of the corporate image, the buyer behaviour and promotions analysis. Other components of IMC include advertising tools, promotional tools and integration tools. The role of IMC is shift from media to several methods of communicating to customers. It is also a way of moving from a manufacturer dominated market to one that is customer controlled and one that uses more specialized media and centered to a specific target audience. IMC uses data-based marketing with greater accountability rather than advertising and marketing. IMC also shows a shift from traditional compensation a performance-based with increased accessibility of internet. IMC also involved the replacement of 4 P’s of marketing to 4 ‘C’s (Larry 2008). This includes change from product focus to consumer focus. IMC aims at focusing on what the customer wants and needs rather than selling what the manufacturer wants. Price focus has also been replaced by cost. This is because organisations in this modern world are not focusing on customer’s cost in satisfying their needs. Some of these costs include the cost of driving to the firm, cost of conscience on what to eat and buy or the cost of guilt. Place has also been replaced by convenience. Kotler and Keller (2009) describe that customers’ look for a convenient place to buy their products for example its location, accessibility, time of transaction and availability of products. Promotion has been replaced by communication where businesses need to communicate more and effective messages rather than use of media. This involves using a feedback mechanism which enables the business to understand customers’ needs (Kotler and Keller 2009). Marketing communications methods and techniques Sales promotion involves activities, materials and techniques used to supplement the various advertising and marketing efforts. Johnson (2004) describes that sales promotion helps marketers to coordinate advertising and personal selling effort. Stuart (2005) gives that examples of sales promotions include special display, coupons, promotional discounts and gifts. There are various reasons that would make a marketer introduce sales promotion. One of the reasons is due to increased competition. Competition in the market has led to the introduction of sales promotion in any organisation. This is because the activities carried out in the process facilitate development of new strategies for beating competitors. The second reason is to gain market share. An organisation that aims at increasing market share may use gives to attract more customers. The third reason is to penetrate a new market or even in existing businesses. Wernick (1999) describes that sales promotion is also used to effectively eliminate old items in stock for example through free gifts. Direct marketing on the other hand is a form of advertising that involves communication with targeted group of consumers. Kaiser and Song (2009, pp. 292-300) show that information about products reaches consumers through various channels of advertising such as news papers, TV or radio. Petley (2002) puts it that others include using fliers, promotional letters or street advertising. This process helps marketers to build a profitable customer relationship and therefore enabling business to attain set objectives. The reasons for using direct marketing one are to generate new business leads and sales. O'guinn (2008) shows the other reason is to increase sales from the existing customers. Third, direct marketing re establishes a business relationship with dormant customers in the market therefore influencing them to purchase goods and increase customer loyalty. Other marketing tools include public relations which is necessary for informing customers about the availability of a product. Credibility is added when is used through third party support. The internet is the other tools used in IMC where existing and prospect customers’ obtain necessary information about a particular product and service. Customers are also able to purchase goods online. Other tools used in IMC include special events, video and audio presentations and multimedia presentations (Strokes 2008). Factors driving integration Fragmentation of media According to Clow and Baack (2007, pp. 9-10) integrated marketing communication is driven by various factors one is the fragmentation of the media. The print media and television have significantly grown over the past decade and this has led to less confidence on mass media. This has therefore enabled many companies to focus on various promotional options for example the use of direct mail or event sponsorships which helps to create brand awareness more effectively. Better audience assessment The second driving force is better audience assessment. Larry (2008) shows the development of more technology and use of sophisticated research tools have improves accuracy and enabled specific market targeting. This has therefore led the market from the use of mass media to use of other promotional tools that can effectively reach out to the target group. Customer empowerment Thirdly, consumer empowerment drives integrated marketing where customers become more cynical regarding commercial messages for example from print media and therefore demand for information modified and focusing on their needs (Larry 2008). Increased advertising clutter Increased advertising confusion has also contributed to the facilitation of integration in marketing. The confusion that customers get from various advertisements has weakened the effectiveness of any marketing message and therefore media proliferation seems to have no end. This has enabled many organisations to link various tools that send a message that would not confuse the customers (Schultz and Lauterborn 2009). Trend of change if budget Various marketers in different organisation tend to see as if the use of mass media is not cost effective and that it does not yield much benefit. Schultz and Lauterborn (2009) puts it that this has therefore resulted to a trend in change of budget from the use of mass media to various forms of promotion combined such as use of sales promotion and direct marketing. Database technology According To Biderman (2009, pp. 30-34) the development of technology has enabled organizations to create precise customer and non customer profiles. This has therefore developed the manner of targeting for example through direct response for example in social networking. The other form is through telemarketing programs where the organisation gets direct feedback form the customers. Channel power There has been increase power in retailing and therefore this has resulted to increased promotional fees and allowances from manufacturers. These powers of retail channels have enabled manufacturers to divert funds to special events, sponsorships and other promotional events (Clow and Baack 2007, pp. 9-10). Increased accountability Organisations have improved accountability of promotional funds and therefore to ensure that the funds are used effectively, firms have relocated their marketing resources. This is by changing from advertising through the media to other short- term techniques and those that can be easily measured for example the use of direct marketing and sales promotions (Biderman 2009, pp. 30-34). Future for IMC IMC has dominated the entertainment industry as a result of various trends and factors. Stroke (2008) explains that some of these include the changes in the consumer media consumption and focus on customer wants. Since the media options is expected to continually increase in future, the integrated marketing communications methods will also develop. This is because the audience will be more diversified and will be in a position of making choices that match their specific needs. Belch and Belch (2009) describes that the industry is continually becoming more customer-focused and the use of media will eventually be abolished. Well defined and specific formats and programming will replace the media as the customers will have power to choose where, how and when to buy. More entertainment companies will therefore emerge as they have proven to understand the principle of using IMC better. These principles are used to connect to the customers not only through giving advertising messages but also by showing the entertainment product offered. References Belch, G & Belch, M 2009, Advertising and promotion: An Integrated Marketing Communications Perspective, McGraw-Hill/Irwin, NewYork. Biderman, D 2009, Retailers get innovative, The Journal of Commerce, pp. 30-34. Clow, E & Baack, D 2007, Integrated advertising, promotion, and marketing communications, 3rd ed. Pearson Education. pp. 9–10. Johnson, D 2004, Advertising today, Chicago, Science Research Associates. Kaiser, U & Song, M 2009, Do media consumers really dislike advertising? An empirical assessment of the role of advertising in print media markets, International Journal of Industrial Organization vol. 27, no. 2, pp. 292–301. Kotler & Armstrong 2009, Principles of Marketing, 13th ed. Pearson. Kotler & Keller 2009, Marketing management, 13th ed. Pearson. Larry, P 2008, Strategic Integrated Marketing Communications, Elsevier. O'guinn, T 2008, Advertising and integrated brand promotion, Oxford shire: Oxford University Press, p. 625. Perreault, D. & McCarthy, E 1997, Essentials of marketing: A global-managerial approach, 7 ed. Chicago. Petley, J 2002, Advertising, North Mankato, Minnesota: Smart Apple Media. Schultz, T & Lauterborn 2009, Influenced by Integrated Marketing Communications. Strokes, R 2008, E-marketing, The essential guide to online marketing, Quirk E-Marketing. Stuart, M 2005, Resale price maintenance and the character of resistance in the conservative party, Canadian Journal of History, vol. 40, no. 2, pp. 259-289. Wernick, A 1999, Promotional culture, Advertising, ideology and symbolic expression, London: Sage Publications Ltd. Read More