2
RON JON SURF SHOP
IMC and Brand-Building Go to the Beach
If there is one common trend in beachside communities, it would be that there are plenty
of surfing and swimwear shops located nearby. Most people couldn’t tell you the name of
any one store, unless they have visited a Ron Jon Surf Shop. Ron Jon is a prime example
of how to develop and build strong brand awareness and loyalty in an industry in
which mostly small, single-owner stores are located along the shorelines of beaches and
lake-towns across the United States.
In the 1960s, surfboard technology was changing. Homemade wooden boards were
being replaced with mass-produced fiberglass models. A surfer-dude name Ron
DiMenna was frustrated that he could not buy one of these new and improved rides. As
a result, he founded the first Ron Jon Surf Shop in New Jersey. In the early days,
DiMenna would buy three boards and sell two with a markup that gave him the third
board for “free.” As time passed, the company grew and additional locations were
opened on both the East and West Coast.
The center of the Ron Jon empire is located in Cocoa Beach, Florida. At the Ron Jon Surf
Shop near the beach, surfer and beach-lover figures that look like sand sculptures greet
customers as they approach. Huge billboards showing images of happy and relaxed
swimmers and beautiful beach-people line the top of the building. The store itself covers
more than 52,000 square feet. It is filled with an amazing variety of items. Swimsuits,
sunglasses, toys, surfboards, towels, shirts, and even beach-themed home decorations
are available. There is also a refreshment stand with picnic tables located outside
the store for patrons to enjoy. This Ron Jon unit is open 24 hours per day, 365 days per
year—just like the beach.
One of the most memorable Ron Jon images is its logo. The company’s beach-
themed, fun-loving image has led loyal customers to attach Ron Jon decals carrying the
2
PART 1: THE IMC FOUNDATION
Chapter Objectives
Recognize the critical role
communication plays in
marketing programs.
Review the nature of the
communication process.
Apply a communications model
to marketing issues.
Discover the nature of a totally
integrated advertising and
marketing communications
approach.
Expand the concept of
integrated marketing
communications to the
global level.
Integrated Marketing
Communications
1
Because of permissions issues, some material (e.g., photographs) has been removed from this chapter, though reference to it
may occur in the text. The omitted content was intentionally deleted and is not needed to meet the University's requirements for
this course.
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logo practically everywhere, includ-
ing one near the top of the Eiffel
Tower and another aboard the U.S.
space station. Many of the products
sold in the store also display the logo.
The Ron Jon marketing team effectively utilizes advertising by creating cooperative
programs with other companies. In 2003, the Cocoa Beach store celebrated its 40th
anniversary. The Chrysler Corporation united with the firm to create a limited edition
Ron Jon PT Cruiser. The autos were customized to display Ron Jon decal art on the out-
side. Inside, numerous items were added, including a Ron Jon sports bag, blankets,
license plates, bumper stickers, key chains, and a t-shirt that guaranteed the car owner
special bragging rights: Only 1,000 cars were made. One was given away as the
grand prize of a local surfing event.
The 40th anniversary celebration also featured a contest in which Ron Jon memora-
bilia were solicited. Entrants sent in old photos, news articles, postcards, and personal
stories. Each item gave the person a chance at a gift certificate for Ron Jon merchandise.
Ron Jon sponsors events that tie in with the company’s primary business. This includes
a natural alliance with professional surfing contests and other beachwear manufactur-
ers, such as Billabong. In the early 2000s, one contest, called the “Rip Curl Trip
Giveaway,” was held in Southern California. The event featured free prizes for those
who attended, including a drawing for a trip for two to view another professional surf-
ing contest at Sunset Beach in Hawaii. The Rip Curl event included a radio remote
for the general public, an autograph-signing session with professional surfers, and a
chance to be one of 200 special guests at a VIP party featuring world championship
surfer C. J. Hobgood and his Rusty Team Riders.
Awareness of Ron Jon presence has grown through innovative marketing programs.
At one point, Ron Jon Surf Shop were featured in a MasterCard commercial. Now,
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o v e r v i e w
T
he global marketplace consists of a complex set of competitors battling for cus-
tomers in a rapidly changing environment. New companies are formed on a daily
basis. Small businesses, Internet-based operations, and global conglomerates that
have expanded through takeovers and mergers are all part of a worldwide marketing
environment.
A wide variety of media beckon the leaders of these companies to spend advertising
and marketing dollars. Marketing methods range from approaches as simple as stand-
alone billboard advertisements to complex multilingual global Web sites. The number of
ways to reach potential customers continually increases.
In the face of these sophisticated and cluttered market conditions, firms try to be
heard. Marketing experts know that a company’s communications must speak with a
clear voice. Customers need to understand the essence of a business and the benefits that
will come from using that firm’s goods and services. With so many advertising and pro-
motional venues available, and so many companies bombarding potential customers with
messages, the task is challenging.
Two trends have emerged in this turbulent new marketing context. First,
accountability is the primary focus. Advertising agencies are expected to produce tangi-
ble results. The company leaders who hire advertising agencies recognize that they
cannot spend unlimited dollars on marketing programs. The funds must be spent wisely.
A coupon program, contest, rebate program, or advertising campaign must yield measur-
able gains in sales, brand awareness, or customer loyalty to be considered successful.
The push for accountability is being driven by chief executive officers (CEOs), chief
financial officers (CFOs), and boards of directors. Both large and small companies need
visible, measurable results from marketing expenditures. According to Martyn Straw,
chief strategy officer of the advertising agency BBDO Worldwide, corporate executives
and business owners are tired of “funneling cash into TV commercials and glossy ads”
that keep increasing in cost and seem to do less and less. As a result, companies like
DaimlerChrysler are less likely to rely on 30-second television spots. Instead, communi-
cation venues (such as the Internet) and events where names, profiles, and addresses of
prospective car buyers can be collected and tracked are utilized. Straw believes that
4 Part 1 The IMC Foundation
Ron Jon is expanding to reach international
customers. The company has received in-store
visits from people all around the world. Part
of the reason, according to vice president for
corporate development Bill Bieberbach, is
that international customers prefer name-
brand items. Ron Jon is a powerful brand that
reaches beach lovers in other countries.
In this decade, Ron Jon has expanded into
land-based sports. In the mid-2000s, the
company sponsored an “End of Summer
Skateboard Contest” in Florida. Skateboarders
competed for cash prizes and merchandise.
Pepsi was a co-sponsor of the event. Later, the
two companies also held autograph sessions
with Globe Pro Skateboarding. These events
were aimed at new, young customers who enjoy skateboarding as much as surfing.
1
The future of Ron Jon Surf Shops remains bright. The overall theme of fun, relaxation,
and enjoyment makes the Ron Jon brand a major force in what is often a no-name
marketplace.
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Chapter 1 Integrated Marketing Communications 5
“marketing has gone from being a cost or expense to an investment.” Promotional dollars
must add value as they generate new sales and higher profits.
2
The second new trend in advertising is tied to the first. There have been major
changes in the tasks performed by all of the key players in advertising programs. The first
person who faces a new type of job is the account executive. The account executive is the
person in an advertising agency who directs and oversees advertising and promotional
programs for client companies. The strong demand for accountability has put the adver-
tising or marketing account manager on the hot seat. He or she must respond to the
scrutiny placed on each marketing campaign. This increased responsibility has changed
the account executive’s day-to-day activities. In the past, an account executive mainly
served as a liaison between the people who prepared commercials and client companies.
Now, the account manager is involved in developing overall strategic communication
plans while, at the same time, trying to make sure each individual promotional activity
achieves tangible results.
Another person facing greater accountability is the brand or product manager. The
brand manager is the individual who manages a specific brand or line of products for the
client company. When sales of a brand slow down, the brand manager looks for ways to
boost them. The brand manager must work diligently with the advertising agency, the
trade promotion specialist, the consumer promotion specialist, and any other individual
or agency involved in conveying that brand image to customers. The brand manager must
be a master at organizing the activities of many individuals while integrating each mar-
keting campaign. Every promotional effort is coordinated so that each message about the
brand speaks with the same voice.
A third set of individuals facing new responsibilities are creatives. Creatives are the
people who develop the actual advertising and promotional campaigns. Although most
creatives are employed by advertising agencies, some work for individual companies.
Others are freelancers. In this new era where attracting attention to a company, good, or
service is so difficult, creatives are being asked to perform additional functions. They are
now often required to contribute ideas about the strategic marketing direction of the firm
while developing individual advertisements. Creatives are also held accountable, along
with account executives, for the effectiveness of an advertising campaign.
As a result, a new partnership among account executives, brand managers, and cre-
atives has emerged. Most advertising and marketing agencies are expected to do more
than create ads. They are assigned the task of helping a client company develop a totally
integrated communications program. This trend toward a more integrated approach to
advertising and communication will continue.
This textbook is devoted to explaining marketing communications from the strategic
perspective of the decision makers both inside and outside the firm. Various topics are
viewed from the vantage points of the key individuals involved, including account man-
agers, brand managers, creatives, media buyers, and the Web master.
This chapter explains the nature of an integrated advertising and marketing com-
munications program. First, communication processes are described. Understanding
how communication works helps build the foundation for the rest of an integrated
marketing program. Next, a totally integrated marketing communications program is
described. Finally, the integrated marketing communications process is applied to
global or international operations, generating the term GIMC, or globally integrated
marketing communications.
COMMUNICATION AND IMC PROGRAMS
Communication can be defined as transmitting, receiving, and processing information.
When a person, group, or organization attempts to transfer an idea or message, commu-
nication occurs when the receiver (another person or group) is able to comprehend the
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6 Part 1 The IMC Foundation
information. The model of communication shown in Figure 1.1 suggests that communi-
cation takes place when the message that was sent reaches its destination in a form that is
understood by the intended audience.
3
The communication process is part of any advertising or marketing program. For
example, think about a person who plans to buy a new pair of athletic shoes. Using the
communications model displayed in Figure 1.1, the senders are companies that manu-
facture and sell shoes. New Balance, ASICS, Reebok, and Skechers all try to gain the
customer’s attention. Most of these firms hire advertising agencies to construct messages.
In other situations, the firm may have its own in-house marketing group.
FIGURE 1.1
The Communication Process
Sender
Encoding
Transmission Device
Decoding
Receiver
Feedback
Noise
Noise
Noise
Noise
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Chapter 1 Integrated Marketing Communications 7
Encoding the message is the second step in the communications process. A creative
takes the idea and transforms it into attention-getting advertisements designed for various
media (television, radio, magazines, and others). The athletic shoe advertisements that
are shown in this section are examples of encoding.
Messages travel to audiences through various transmission devices. The third stage
of the marketing communication process occurs when a channel or medium delivers the
message. The channel may be a television carrying an advertisement, a billboard, a
Sunday paper with a coupon placed in it, or a letter to the purchasing agent of a large
retail store. The shoe ads displayed in this section were transmitted through various
magazines.
Decoding occurs when the message reaches one or more of the receiver’s senses.
Consumers both hear and see television ads. Others consumers handle (touch) and read
(see) a coupon offer. It is even possible to “smell” a message. A well-placed perfume
sample may entice a buyer to purchase both the magazine containing the sample and the
perfume being advertised. People who are interested in purchasing athletic shoes pay
closer attention to advertisements and other information about shoes. Study the athletic
shoe advertisements shown in this section. Then, answer the following questions:
1. Which advertisement most dramatically attracted your attention? Why?
2. Which advertisement is the least appealing? Why?
3. How important is the brand name in each ad? Why?
4. What is the major message of each individual advertisement?
5. What makes each advertisement effective or ineffective?
6. Discuss your thoughts about each advertisement with other students.
When students discuss the advertisements, they sometimes discover that the same
advertisement has been interpreted differently by other members of the group. In other
words, the message is not being decoded in the same way. Quality marketing communi-
cation occurs when customers (the receivers) decode or understand the message as it was
intended by the sender. In the case of the shoe ads, effective marketing communications
depends upon receivers getting the right message and responding in the desired fashion
(such as shopping, buying, or telling their friends about the shoes).
Examine the Web sites of the four athletic shoe companies featured in the advertisements.
?
Reebok (www.rbk.com)
?
ASICS (www.asics.com)
?
New Balance (www.newbalance.com)
?
Skechers (www.skechers.com)
The sites provide additional insights about the messages these companies are trying to
send. Compare the materials on the Web sites to the shoe advertisements shown here. You
should be able to see how the two messages were designed to go together. If they do not,
the IMC program is not completely developed or fully integrated.
One obstacle that prevents marketing messages from being efficient and effective is
called noise. Noise is anything that distorts or disrupts a message. It can occur at any
stage in the communication process, as displayed in Figure 1.1. Examples of noise are
provided in Figure 1.2.
The most common form of noise affecting marketing communications is clutter.
Modern consumers are exposed to hundreds of marketing messages each day. Most are
tuned out. Clutter includes:
? Eight minutes of commercials per half hour of television and radio programs
? A Sunday newspaper jammed with advertising supplements
? An endless barrage of billboards on a major street
? The inside of a bus or subway car papered with ads
? Web sites and servers loaded with commercials
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8 Part 1 The IMC Foundation
The final component of the communication process is feedback. It takes the forms of
purchases, inquiries, complaints, questions, visits to the store, and hits on a Web site.
Each indicates that the message has reached the receiver and that the receiver is now
responding.
Account managers, creatives, brand managers, and others involved in the marketing
process should pay attention to every part of the communications model. They should
make sure that the proper audiences receive the messages. The message also must cut
through all of the noise and clutter. In the case of athletic shoes, increases in market
share, sales, and brand loyalty are common outcomes the marketing team tries to achieve.
Remember, however, that communicating with consumers and other businesses
requires more than simply creating attractive advertisements. In the next section, the
nature of a fully developed integrated marketing communications program is described.
An effective IMC process integrates numerous marketing activities into a single package.
This makes it possible for companies to reach target markets and other audiences more
effectively.
INTEGRATED MARKETING COMMUNICATIONS
An integrated marketing communications program can be built on the foundation pro-
vided by the communications model. Some marketing scholars argue that the integrated
marketing communications (IMC) approach is a recent phenomenon. Others suggest the
name is new, but the concept has been around for a long time. They note that the value of
effectively coordinating all marketing functions and promotional activities has been men-
tioned in marketing literature for many years.
4
Although IMC programs have been described in several ways, the consensus is to
define them as follows: Integrated marketing communications (IMC) is the coordina-
tion and integration of all marketing communication tools, avenues, and sources within a
company into a seamless program that maximizes the impact on consumers and other end
users at a minimal cost. This integration affects all of a firm’s business-to-business, mar-
keting channel, customer-focused, and internally directed communications.
Before further examining the IMC concept, first consider the traditional framework
of marketing from which it originated. The marketing mix is the starting point. As
shown in Figure 1.3, promotion is one of the four components of the mix. For years the
traditional view was that promotional activities included advertising, sales promotions,
and personal selling activities. Sales promotions actually includes both sales and trade
promotions, with sales promotions aimed at end users or consumers of goods and ser-
vices, and trade promotions directed toward distributors and retailers. This traditional
? The viewer is talking on the phone.
? The viewer is getting something to eat
during the ad.
? The viewer of the ad dislikes or is
offended by the nature of the ad.
? The ad is placed on a TV show that is
seldom watched by the producer's
target audience.
? The advertisement is placed next to an
ad by a competitor.
? The creative designed an ad that the
target audience did not get.
? The person in the ad overpowers the
message.
? The producer of the ad changed the
background of the ad from what the
creative wanted.
FIGURE 1.2
Communication Noise
in Television Advertising
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Chapter 1 Integrated Marketing Communications 9
view has changed some, due to the accountability issue that was discussed earlier in this
chapter. The need to integrate all promotional efforts has expanded beyond the three tra-
ditional elements of advertising, sales promotions, and personal selling. Now, promotion
also includes activities such as database marketing, direct marketing, sponsorship mar-
keting, Internet marketing, and public relations.
A complete IMC plan incorporates every element of the marketing mix: products,
prices, distribution methods, and promotions. This textbook primarily deals with the pro-
motions component. Keep in mind, however, that to present a unified message the other
three elements of the marketing mix must be blended into the program.
AN INTEGRATED MARKETING
COMMUNICATIONS PLAN
Integrated marketing is based on a master marketing plan. This plan should coordinate
efforts in all components of the marketing mix. The purpose of the marketing plan is to
achieve harmony in relaying messages to customers and other publics. The same plan
integrates all promotional efforts. The idea is to keep the company’s total communication
program in synch.
Figure 1.4 lists the steps required to complete a marketing plan. The first step is a
situational analysis, which is the process of examining factors from the organization’s
internal and external environments. The analysis identifies marketing problems and
opportunities present in the external environment as well as internal company strengths
and weaknesses.
When the situation is fully understood, the second step is to define primary
marketing objectives. These objectives normally include targets such as higher sales, an
increase in market share, a new competitive position, or desired customer actions, such as
visiting the store and making a purchase.
Based on the marketing objectives, a marketing budget is prepared and marketing
strategies are finalized. Marketing strategies apply to all the ingredients of the marketing
mix plus any positioning, differentiation, or branding strategies the marketing team
wishes to add.
FIGURE 1.3
The Components of Promotion
Product Price Promotion Distribution
Advertising Sales Promotions Personal Selling
Public
Relations
Internet
Marketing
Sponsorship
Marketing
Direct
Marketing
Database
Marketing
? Situation analysis
? Marketing objectives
? Marketing budget
? Marketing strategies
? Marketing tactics
? Evaluation of performance
FIGURE 1.4
The Marketing Plan
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10 Part 1 The IMC Foundation
ETHICAL ISSUES
Ethics, Morals, and IMC
Morals are beliefs or principles that individuals hold concerning what is right and what is
wrong. Ethics are moral principles that serve as guidelines for both individuals and organi-
zations. Marketing and marketing communications activities are affected by ethical and
moral concerns. In each chapter of this textbook, ethical issues are described. At the most
general level, several major ethical concerns and criticisms have arisen. They include:
1. Marketing causes people to buy more than they can afford.
2. Marketing overemphasizes materialism.
3. Marketing increases the costs of goods and services.
4. Advertising perpetuates stereotyping of males, females, and minority groups.
5. Marketers too often create advertisements that are offensive.
6. Advertisements often make bad habits (such as smoking) seem attractive.
7. Marketers use unfair tactics (such as bait and switch programs).
8. Too many advertisements are deceptive or misleading.
9. Advertising to children is unethical.
10. Salespeople use too many deceptive practices.
While reading about the nature of integrated marketing communications, consider these and
other ethical issues. The time to start thinking about the ethical and moral basis of a career
in marketing is now.
From these strategies, marketing tactics guide the day-by-day activities necessary to
support marketing strategies. The final step in the marketing plan is stating how to
evaluate performance.
These six steps of the marketing plan are similar to those used in creating manage-
ment strategies. Both are designed to integrate all company activities into one consistent
effort. Also, both provide guidance to company leaders and marketing experts as they try
to ensure that the firm’s total communications package is fully integrated. Once the mar-
keting plan has been established, the firm can prepare its integrated marketing communi-
cations program.
IMC COMPONENTS
Figure 1.5 presents on overview of the IMC approach that will be used in this textbook
and presented in subsequent chapters. A brief description of each aspect follows. As
shown, the foundation of an IMC program consists of a careful review of the company’s
image, the buyers to be served, and the markets in which the buyers are located.
Advertising programs are then built on this foundation, as are the other elements of
the promotional mix. Finally, the integration tools located at the peak of the pyramid help
the company’s marketing team make certain that the elements of the plan are consistent
and effective.
The Foundation
The first section of this text builds the foundation for the rest of an IMC program. Chapter 2
describes the corporate image and brand management elements. Strengthening the firm’s
image and brands answers the key questions, “Who are we and what message are we trying
to send?” From there it is possible to identify target markets.
Chapter 3 describes buyer behaviors. The steps of the consumer purchasing process
can be used to explain how individuals make choices. Marketers identify which motives
lead to purchase decisions and which factors affect those decisions. Then, the IMC program
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Chapter 1 Integrated Marketing Communications 11
can be designed in a manner that best influences consumer choices. Business-to-business
buyer behavior is also examined. Knowing how to reach purchasing managers and other
decision makers within target businesses is another critical element in the development of a
totally integrated communications plan. Discovering viable business-to-business marketing
opportunities plays a vital role in implementing the IMC plan.
Chapter 4 describes the promotions opportunity analysis element of the IMC pro-
gram. This task includes identifying all target markets. Consumer market segments are
often distinguished by demographics, income, social class, and various psychographic
variables. Business markets can also be segmented by understanding the demographics of
the company’s buying team, noting who the end users will be, and by determining the
benefits other businesses expect to receive from the products and services they buy.
Advertising Tools
The second section of this text is devoted to advertising issues. Advertising management,
as described in Chapter 5, addresses the major functions of advertising and directs the
general path the company will take. Advertising design and media selection (Chapters 6
through 8) involve matching the message, media, and audience, so that the right people
see and/or hear the ads. Many appeals can be used, including those oriented toward fear,
humor, sex, music, and logic. These should be conveyed by attractive, credible, likable,
and authoritative sources. Effective advertising is based on a foundation of understanding
consumer and business buyer behaviors. Advertising reinforces or projects the specific
brand and firm image stated in the marketing plan.
Promotional Tools
The next level of the IMC pyramid adds trade promotions, consumer promotions, per-
sonal selling, database marketing, public relations, and sponsorships into the program.
When marketing managers carefully design all of the steps taken up to this point, the firm
FIGURE 1.5
An IMC Plan
Internet
Marketing
IMC for
Small
Businesses
and
Entre-
preneurial
Ventures
Evaluating
an
Integrated
Marketing
Program
Advertising
Management
Advertising
Design:
Message Strategies
and
Executional
Frameworks
Advertising
Media
Selection
Corporate
Image and Brand
Management
Buyer Behaviors
Promotions
Opportunity
Analysis
Foundation
Advertising
Tools
Promotional
Tools
Integration
Tools
Trade
Promotions
Consumer
Promotions
Personal
Selling, Database
Marketing, and
Customer
Relations
Management
Public
Relations
and
Sponsorship
Programs
Advertising
Design:
Theoretical
Frameworks
and Types
of Appeals
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12 Part 1 The IMC Foundation
is in a better position to integrate these activities.
Messages presented in the advertising campaign can be
reinforced in the trade and consumer promotions. Trade
promotions, as described in Chapter 9, include contests,
incentives, vendor support programs, and other fees and
discounts that help the manufacturer push the product
through the channel. Consumer promotions are directly
oriented to end users and include coupons, contests,
premiums, refunds, rebates, free samples, and price-off
offers. The advertisement for Celestial Seasonings
shown in this section illustrates the use of consumer
promotions. Consumer promotions are the subject of
Chapter 10. Chapter 11 explains the nature of personal
selling and database marketing in terms of database
management, data mining, direct marketing, customer
relationship management (CRM) activities, and other
functions in which direct contacts are made with con-
sumers. Chapter 12 focuses on public relations pro-
grams that can help the marketing team connect with
consumers in positive and socially responsible ways.
Sponsorship programs are discussed because, in many
cases, firms must utilize public relations efforts to help
a sponsorship program achieve the greatest impact. The
chapter concludes by examining the many legal and
regulatory issues that are part of the advertising and
promotions environment.
Integration Tools
The “top” level of the IMC program includes the inte-
gration tools needed to make sure all customers are
effectively being served. Internet marketing, the topic of Chapter 13, has become a criti-
cal activity in nearly every firm. Consumers look for companies to have an Internet
presence. For businesses, it is even more critical as increasingly business-to-business
transactions, sales, and service are being conducted online. Chapter 14 is devoted to
small businesses and entrepreneurial ventures. All of the IMC tasks are included in man-
aging a small business; however, the emphasis changes due to special challenges such as
limited funds for promotions.
Chapter 15, the final chapter of this textbook,
explains how to evaluate an integrated marketing pro-
gram. It is crucial to make decisions about how a com-
munication program will be evaluated prior to any
promotional campaign. Then, evaluation materials
can be designed accordingly. A promotions evaluation
process holds everything together. It drives the entire
IMC process as much as does preparing the core busi-
ness plan. Fully integrated marketing requires a careful
linkage between planning and evaluation processes; one
cannot occur without the other.
Refining the IMC Program
Integrated marketing communications (IMC) involves
more than simply writing a plan. It is also not a pro-
gram limited to the company’s marketing department.
IMC is a company-wide activity. To be successful,
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Chapter 1 Integrated Marketing Communications 13
every part of the organization’s operation must be included. A study conducted by the
American Productivity & Quality Center of Houston of the best integrated marketing
firms indicates that four stages are involved in designing an effective integrated market-
ing communications system.
5
The first stage is to identify, coordinate, and manage all forms of marketing commu-
nication. The objective is to bring all of the company’s communication elements together
under one umbrella. This includes advertising, promotions, direct marketing, Internet and
e-commerce programs, public relations, sponsorships, and other marketing activities.
During this stage of IMC development, the marketing team must be sure that all promo-
tional materials deliver a unified message and speak with one voice. The theme should
also be present in the logos, colors, letterhead, and every other message the company
sends. The goal is to make sure there is consistency in and synergy among all communi-
cation venues.
In the second stage, communications are examined from the perspective of the cus-
tomer. The marketing team should analyze every contact method that might influence cus-
tomers as they form opinions and make decisions about the company. This means studying
employees who work at the company, the firm’s Web site, and the product itself. Even
those who answer the phone deserve scrutiny. The idea is to be certain external communi-
cations match internal communications. The IMC umbrella covers every internal and
external group that might affect perceptions of the company and its products. Employees,
distributors, retailers, dealers, product package designers, and others need to be observed.
Hewlett-Packard: “We Understand”
C O MMU NI C AT I O N A C T I O N
An excellent example of an integrated marketing communications program is
provided by the software systems engineering division (SSED) of Hewlett-
Packard (H-P). This group initiated its IMC process through workshops designed
to help H-P’s employees better understand the dilemmas faced by its customers.
These workshops were directed by representatives from sales, product market-
ing, engineering, and customer support departments within H-P. Each had a dif-
ferent perspective of the customer and provided valuable input into the various
dilemmas faced by end users. The team approach allowed everyone to see the
customer from a more holistic perspective.
Based on input from these departments, a creative strategy emerged with a
strong focus on customer needs. The theme “we understand” was adopted.
H-P’s marketing emphasis centered on the idea that members of the company
understood the issues, pressures, and constraints that software developers
faced. Knowing about unrealistic deadlines, hidden-code errors, and other prob-
lems and how to cope with these issues was the key. H-P’s leaders believed they
could solve transition problems for customers by moving to object-oriented pro-
gramming and simultaneously developing multiple applications of company soft-
ware. The theme was integrated into all of H-P’s marketing programs. It was
launched in an advertising campaign and then reinforced in three direct mailings.
The same message was used in trade show handouts and displays. H-P’s Web
site was redesigned around the same principle.
The “we understand” idea served as an umbrella for all marketing strategies
and tactics. The integrated approach allowed H-P to speak with one voice regard-
less of the communication method customers encountered when they con-
tacted the firm. This more fully integrated program was more than just the theme,
however. It began with effective communication within and built outward to the
point where H-P’s end users (other business) could see and experience a real dif-
ference in the products and services that were being provided.
Source: P. Griffeth Lindell, “You Need an Integrated Attitude to Develop IMC,” Marketing News 31,
no. 11 (May 26, 1997), p. 6.
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14 Part 1 The IMC Foundation
Information technology comes to the forefront in
the third stage. Company leaders should find ways to
apply information technology to IMC programs. This
provides the basis for identifying and evaluating the
impact of communication programs with respect to
key customer segments. The third step is a critical
part of an IMC program because now customer input
is being gathered and used to make marketing and
communication decisions. This means the best IMC
companies involve customers in planning processes.
Consumer goods companies seek inputs from con-
sumers. Business-to-business firms invite target
members from other businesses. As a result, the
potentially adversarial relationship between business
buyers and sellers is replaced by a cooperative, “let’s
work together” mentality.
The fourth and final stage of IMC development
occurs when the organization uses customer data
information and insights to drive corporate strate-
gic planning. Return-on-customer investment is
calculated for the various marketing initiatives. The
information guides marketing decisions and the com-
munication approaches aimed at individual customer
segments. Firms reaching this stage, such as Dow
Chemical, FedEx, and Hewlett-Packard, take data-
bases and use them to calculate and establish a cus-
tomer value for each buyer. All customers are not
equally valuable. In contrast to a typical marketing
program designed to win customers by sending the
same marketing message to everyone, Dow Chemical,
FedEx, and Hewlett-Packard allocate sales and mar-
keting communication resources to those customers
with the greatest potential for return, based on calculations of customer values. This
process helps company leaders understand each customer’s worth and treat each one
individually, resulting in the highest possible return on investment for marketing
expenditures.
After the internal marketing activities have been completed, the marketing team
should address other parts of the company. A study by the American Productivity &
Quality Center notes that successful IMC programs require cross-functional communica-
tion. In other words, communication lines must be
open between marketing and other departments.
Every employee in the company must become part
of the emphasis on quality communications and
customer orientation.
6
One final ingredient is found in successful
IMC companies. The marketing team clearly
understands as many of the company’s cus-
tomers’ needs as possible. This makes them
customers of the whole company, not just the
SBU, operating division, or outlet in which they
are doing business. Seeing a patron as a cus-
tomer of the total company encourages the
cross-selling of goods and services. Using
this method, ServiceMaster, which provides
janitorial services to various companies, was
able to increase revenues. The marketing team
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Chapter 1 Integrated Marketing Communications 15
encouraged cross-selling of pest control and lawn services to customers already using
the firm’s janitorial services. This approach also assists selling in other countries
when the firm is a multinational operation. Thus, a customer who buys from Hewlett-
Packard in the United States is an excellent prospect in other countries where both
H-P and that customer operate. When members of the company think in these terms,
marketing dollars are spent wisely.
THE VALUE OF IMC PLANS
Why are IMC programs so crucial to marketing success? Figure 1.6 lists several trends
that are linked to the increasing importance of integrated advertising and marketing
communications programs. A major force compelling firms to seek greater integration
of advertising and marketing communications is information technology. Computers,
the World Wide Web, and telecommunications have moved the world into an informa-
tion age where businesses and most consumers have access to an abundance of market-
ing information. The challenge for marketers in the future will not just be gathering
information; the challenge will also involve sifting through an avalanche of statistics,
ideas, and messages and putting them into a format that company leaders can use. When
this is accomplished, business leaders can make intelligent, informed decisions about
how to market products.
Information Technology
Technology allows instant communications among business executives, employees, and
others around the world. It has also created new opportunities for marketing communica-
tions. For example, predicting the purchasing behaviors of consumers in the past was
based on the results of test markets, attitudinal research, and intention-to-buy surveys.
Although these are excellent means of obtaining information about consumers, they often
are slow, costly, and are potentially unreliable.
Today, predicting purchase behavior is more precise due to the development of the
UPC (universal product code) bar-coding system. The technology was originally used to
manage inventories. Scanning every sale meant retailers were better able to develop effi-
cient inventory control systems. They did not have to rely on human counting of mer-
chandise.
At the same time, UPC codes combined with other technology programs allow
huge amounts of data and information about customers to be gathered. Advanced sta-
tistical software helps company leaders analyze these data files. Connections between
financial (credit card, banking) and business firms make it possible to collect purchas-
ing data. Using this information, demographic and psychographic information about
consumers can be correlated with the items they buy, when they make purchases, and
where they make purchases. Consequently, marketers can quickly determine who is
buying a company’s products and identify the best communication channels to reach
those customers.
? Development of information technology
? Changes in channel power
? Increase in competition (global competitors)
? Maturing markets
? Brand parity
? Integration of information by consumers
? Decline in effectiveness of mass-media advertising
FIGURE 1.6
Factors Affecting the Value of
IMC Programs
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16 Part 1 The IMC Foundation
Changes in Channel Power
Technological developments also served as catalysts for changes in channel power. Two
typical market channels are:
Producer ¡Wholesaler ¡Retailer ¡Consumer
and
Producer ¡Business Agent ¡Business Merchant ¡Business User
With the advancement of the World Wide Web and
information technology, the power has shifted to the con-
sumer.
7
Currently, consumers can obtain information
about goods and services from their homes or businesses
and purchase almost anything over the Internet. For
example, the Visa advertisement in this section encour-
ages consumers to book hotel rooms, air travel, and car
rentals online. Internet-driven sales have grown at a
tremendous rate. In fact, since 1999 Internet retail sales
have expanded at annual rate of 44.4 percent. By 2003,
total global retail sales were $232.4 billion. The most
concentrated spending is in the areas of computers, elec-
tronics, tickets, and travel.
8
Figure 1.7 highlights the
major segments of global Internet retail sales and what
percentage each category represents of the total global
Internet retail sales.
To illustrate how technology has changed channel
power, think about an individual in the market for a new
stereo. First, she goes to the Internet and searches for
information. She then identifies several possible brands
and narrows them down to three. Next, she travels to a
local mall and investigates the three brands. Asking ques-
tions of the salesclerks helps her gather additional prod-
uct information. Going home, she then logs onto the Web
sites of the three manufacturers to learn about warranties
and company policies. Having gathered sufficient infor-
mation to make a decision, she can utilize Internet
sources or a catalog to finalize the purchase either via the
FIGURE 1.7
Global Internet Retail Sales
by Product Type
Toys and Games,
4.2%
Apparel and Gifts,
5.0%
Books, 8.5%
CDs, Music, and
Videos, 11.8%
Household, 12.8%
Computers,
Electronics, and
Software, 28.7%
Tickets and Travel,
29.0%
Other, 0.1%
Source: “Global Internet Retail: Industry Profile,” Datamonitor (May 2004), p. 10.
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Chapter 1 Integrated Marketing Communications 17
Web or by telephone. Within 3 days, the new stereo arrives complete with a money-back
guarantee if she is not satisfied. The result is that the buyer is in charge of the entire
process, not the retailer or the wholesaler.
The same principles apply to business-to-business purchasing activities. Buyers
who shop on behalf of organizations and other company members seeking business-to-
business services are able to tap into the same resources (Web sites, databases). This
means that the same kind of shift in channel power is taking place in the business-to-
business sector.
Increases in Competition
Information technology has dramatically changed the marketplace in other ways.
Consumers can purchase goods and services from anywhere in the world. Competition
no longer comes from the company just down the street—it can come from a firm
10,000 miles away that can supply a product faster and cheaper. People want quality, but
they also want a low price. The company that delivers on both quality and price gets the
business, regardless of location. Advancements in delivery systems make it possible for
purchases to arrive almost anywhere in a matter of days.
In this type of market, the only way one firm can gain sales is to take customers
away from another firm. Integrating advertising and other marketing communica-
tions becomes extremely important in such an environment. Advertising alone is not
enough to maintain sales. This situation is further complicated for manufacturers
when retailers hold stronger channel power and control the flow of merchandise to
consumers. In that situation, manufacturers have to invest in trade promotions (dealer
incentives, slotting allowances, discounts) to keep their products in various retail out-
lets. Encouraging retailers to promote a manufacturer’s brand or prominently display
it for consumer viewing requires even greater promotional dollars. Manufacturers
also must invest heavily in consumer promotions to keep end users loyal to their
companies and encourage them to purchase their brands because they know that the
more they promote their own products, the more attractive those products become
to retailers.
The U.S. athletic shoe market provides an excellent example of how growth for any
given company comes at the expense of competing brands. Figure 1.8 displays market
shares for the top four athletic shoe brands over an 18-year period. Although Nike
remains the leading brand, its share and lead over competing brands have been reduced
from 48 percent of the total market in 1997 to 36 percent market share in 2003. On the
FIGURE 1.8
Market Share of Top Four Brands
in 2003 in the U.S. Athletic
Shoe Market
×
×
×
60%
50%
40%
30%
20%
10%
20%
48%
36%
13%
11%
9%
6%
20%
4%
6%
3%
P
e
r
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n
t
a
g
e
o
f
T
o
t
a
l
U
.
S
.
A
t
h
l
e
t
i
c
S
h
o
e
M
a
r
k
e
t
0%
1986 1997 2003
Nike Reebok Adidas New Balance ×
31%
Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0 5, no. 8 (September 2004), pp. 108–113.
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18 Part 1 The IMC Foundation
other hand, Reebok’s market share declined from 31 percent in 1986 (when the brand was
the market leader) to 13 percent in 2003. As a result of this drop, Reebok has chosen not
to compete with Nike in the hard-core sports market. Instead, Reebok now focuses on
becoming the brand of choice for hip-hoppers, hipsters, and other fashion-forward urban-
ites. The Communication Action box in this section contains more information about
Reebok’s strategy and new integrated marketing communication plan.
At the same time that manufacturers are fighting for market share, retailers,
equipped with scanner data, control product placement within a store and shelf space
allocation.
9
Retailers now decide which brands are displayed and which brands are
given special emphasis in the store. To gain prominence for a particular brand at the
retail level, manufacturers must coordinate all advertising, trade promotions, and sales
promotions as part of a larger effort. Manufacturers are seeking to maximize market-
ing dollars by gaining maximum exposure to consumers and retailers. Retailers, in
turn, focus on IMC efforts that are designed to maintain customer loyalty along with
positive relationships with manufacturers. It is crucial for each company in the mar-
keting chain to create a quality IMC program that reaches both customers and others
in the chain.
In late 2005 (as this book was going to press), Adidas made a bid to acquire
Reebok. In the near future, it appears that Reebok will remain a separate brand along-
side Adidas. This purchase enables Adidas/Reebok to increase total market share and
Reebok: The Cool Campaign
C O MMU NI C AT I O N A C T I O N
Realizing the difficulty of competing head-to-head with Nike, Reebok has chosen
a new marketing approach. Through a re-branding strategy and image reposi-
tioning, Reebok hopes to become the shoe of choice for hip-hoppers, hipsters,
and other fashion-forward urbanites. It is a risky strategy. Still, in 2003, of the top
four athletic shoe brands, only Reebok had increases in sales.
Reebok’s first move into the new arena of fashion was signing hip-hop artists
Jay-Z and 50 Cent to endorsement deals. Reebok then signed Japanese
clothing designer Nigo to develop a new line, which was branded “Ice Creams.”
Although bold, this new approach has captured a segment of consumers who
liked the new fresh look, the new endorsers, and the fashion-forward statements.
The new line was targeted primarily to males. It accounted for 15 percent of
Reebok’s 2003 sales.
In Asia–Pacific, the company used another program. Reebok teamed with
MTV to bring basketball programming to Asia. Reebok signed a 10-year pact with
the National Basketball Association to not only provide programming, but also to
design, manufacture, market, and sell official NBA sportswear in the Asia–Pacific
region. According to Siddarth Varma, vice president of marketing for Asia–Pacific
Reebok International, “Reebok has been gaining inroads into the world of basket-
ball and hip-hop music with the sponsorship of various prominent NBA players
and hip-hop artists.”
A third objective was to reach tech-savvy fans. Reebok signed a multiyear
sponsorship with entertainment software company Electronic Arts, Inc. Advertise-
ments featuring Reebok shoes and gear in video games were developed. Brain
Povinelli, vice president of integrated marketing at Reebok, stated that combining
Reebok’s products with video games was “an effective part of our integrated
marketing model.” This new integrated approach may be just the right approach
to rejuvenate the Reebok brand.
Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0 5, no. 8 (September 2004), pp. 108–113;
“Reebok’s New Game,” WWD: Women’s Wear Daily 188, no. 132 (December 23, 2004), p. 3; Amy
White, “Reebok, MTV Line for Brand Hoopla,” Media Asia (April 9, 2004), p. 3.
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Chapter 1 Integrated Marketing Communications 19
more effectively compete with Nike because each brand has different strengths and
different target markets.
Brand Parity
The increase in national and global competition is due to the availability of multiple
brands. Many of these products have nearly identical benefits. When consumers
believe that most brands offer the same set of attributes, the result is called brand
parity. From the consumer’s perspective, this means shoppers will purchase from a
group of accepted brands rather than one specific brand. When brand parity is present,
quality is often not a major concern because consumers believe that only minor qual-
ity differences exist. Consumers often view quality levels of products as being nearly
equal. As a result, they often base purchase decisions on other criteria such as price,
availability, or a specific promotional deal. The net effect is that brand loyalty has
experienced a steady decline.
10
Brand loyalty has also been reduced because of a
growing acceptance of private brands.
A survey conducted by Top Brands in 2004 revealed higher levels of interest in brand
switching in 13 of 17 major product categories.
11
The lowest levels of brand loyalty were
present for greeting cards, groceries, and canned foods. When asked “If you didn’t find
the brand you wanted, would you be likely to buy another brand,” 68 percent of the con-
sumers surveyed said they would be willing to switch to another greeting card brand if
their favorite was not available. For groceries and canned foods, 67 percent were willing
to switch.
In response, the marketing team should try to create
a message that expresses how the company’s products
are clearly different. They must convince consumers
that the company’s brand is superior. They must also
convince consumers that the product is not the same
as the competition’s. A quality IMC program is, in part,
designed to gain the benefits associated with a strong
brand name.
Integration of Information
Today’s consumers have a variety of choices regarding
where they obtain information about a brand. If
consumers are not satisfied with what they hear, they
can seek additional information. They may go to the
Internet and read about other brands and companies. As
a result, most companies now list Internet addresses
on advertisements. In the McCormick’s ad shown in
this section, notice the address: www.mccormick.com.
The Web site contains additional information about
McCormick seasonings along with ideas and recipes for
consumers. Web users can discuss products and compa-
nies with other customers in chat rooms or in Web logs.
They may also travel to retail stores and discuss various
options with the salesclerk. Others may consult inde-
pendent sources of information such as Consumer
Reports.
The marketing team should be concerned with the
ways consumers integrate the information they receive.
Company leaders should make sure that every contact
point projects the same message. Contact points are
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20 Part 1 The IMC Foundation
the places where customers interact with or acquire additional information from a com-
pany. These contacts may be direct or indirect, planned or unplanned. An effective IMC
program sends a consistent message about the nature of the company, its products, and
the benefits that result from making a purchase from the organization.
Decline in the Effectiveness
of Mass-Media Advertising
The influence of mass-media advertising has dramatically declined. VCRs and TIVO
systems allow consumers to watch programs without commercials. The rise in popularity
of cable TV, DVR recorders, and satellite dishes means consumers have a wider variety
of viewing choices. Using the remote while watching television means it is likely that,
during most commercials, the viewer is surfing other channels to see what else is on.
Many television advertisements are not seen, even by those people watching a particular
program. In a recent survey by conducted by Brandweek magazine, only 16 percent of
viewers said that they watch commercials during a program. Figure 1.9 displays the
results of this study.
12
To overcome this problem, it is vital to create new and innovative
communications programs.
Many firms employ advertising agencies to assist in marketing efforts. Until 1970,
almost all advertising agencies focused only on the advertising aspect of the marketing
plan. Now, however, many advertising agencies spend substantial amounts of time assist-
ing clients in the development of IMC programs.
13
In addition to advertisements, these
agencies design consumer promotion materials and direct-marketing programs, along
with other marketing tactics.
GLOBALLY INTEGRATED MARKETING
COMMUNICATIONS
The same trend that exists among advertising agencies in the United States also occurs in
the international arena. Instead of being called “IMC,” however, it is known as GIMC, or
a globally integrated marketing communications program.
14
The goal is still the same—
to coordinate marketing efforts. The challenges are greater due to larger national and cul-
tural differences in target markets.
In the past, marketers could employ two different strategies for global companies.
The first approach was called standardization, in which the idea was to standardize
the product and message across countries. The goal of this approach was generating
Positive Responses
? Ads have potential to be entertaining (45%)
? Sit and watch ads (16%)
Negative Responses
? Get up and do something else (54%)
? Get annoyed (52%)
? Switch channels (40%)
? Talk to others in the room (34%)
? Turn down the sound on the TV (19%)
? Read (11%)
? Use the computer (5%)
FIGURE 1.9
Viewer Activities
During TV Commercials
Source: Jennifer Lach, “Commercial Overload,” American Demographics 21, no. 9 (September 1999) p. 20.
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Chapter 1 Integrated Marketing Communications 21
S U MMA RY
A new era is unfolding in the fields of advertising, promotions,
and marketing communications. Marketing departments and
advertising agencies, as well as individual account managers,
brand managers, and creatives, encounter strong pressures. They
are being held accountable for expenditures of marketing com-
munications dollars. Company leaders expect tangible results
from promotional campaigns and other marketing programs. As
a result, new partnerships form between account executives,
creatives, and the companies that hire them. The duties of the
account manager have expanded in the direction of a more
strategically oriented approach to the advertising and marketing
communications. Those preparing to become advertising or pro-
motions professionals must be aware of both accountability
issues and the new aspects of these jobs.
16
Communication is transmitting, receiving, and processing
information. It is a two-way street in which a sender must establish
a clear connection with a receiver. Effective communication is the
glue holding the relationship between two entities together. When
communication breaks down, conflicts, misunderstandings, and
other problems may develop.
The components of the communication process include
the sender, an encoding process, the transmission device, the
decoding process, and the receiver. Noise is anything that dis-
torts or disrupts the flow of information from the sender to the
receiver.
In the marketing arena, senders are companies seeking to trans-
mit ideas to consumers, employees, other companies, retail outlets,
and others. Encoding devices are the means of transmitting infor-
mation, and include advertisements, public relations efforts, press
releases, sales activities, promotions, and a wide variety of addi-
tional verbal and nonverbal cues sent to receivers. Transmission
devices are the media and spokespersons who carry the message.
Decoding occurs when the receivers (such as customers or retail-
ers) encounter the message. Noise takes many forms in marketing,
most notably the clutter of an overabundance of messages in every
available channel.
Integrated marketing communications (IMC) takes advantage
of the effective management of the communications channel.
Within the marketing mix of products, prices, distribution systems,
and promotions, firms that speak with one clear voice are able to
coordinate and integrate all marketing tools. The goal is to have a
strong and positive impact on consumers, businesses, and other
end users.
IMC plans are vital to achieving success. The reasons for their
importance begin with the explosion of information technolo-
gies. Channel power has shifted from manufacturers to retailers
to consumers. Company leaders must adjust in order to maintain
a strong market standing, and IMC programs can assist in this
effort. New levels of competition drive marketers to better under-
stand their customers and be certain those end users are hearing
a clear and consistent message from the firm. As consumers
develop a stronger sense of brand parity, whereby no real dif-
ferences in product–service quality are perceived, marketers
must recreate a situation in which their brand holds a distinct
economies of scale in production while creating a global product using the same pro-
motional theme. The language would be different, but the basic marketing message
would be the same.
The second approach to global marketing was called adaptation. Products and
marketing messages were designed for and adapted to individual countries. Thus, the
manner in which a product was marketed in France was different than in Italy, India,
or Australia.
The GIMC approach is easier to apply when a company relies on the standardization
method; however, GIMC can and should be used with either adaptation or standardiza-
tion.
15
To reduce costs, careful coordination of marketing efforts should occur across
countries. Even when a firm uses the adaptation strategy, marketers from various coun-
tries can learn from each other. Members of the marketing department should not feel like
they have to reinvent the wheel. Synergy can occur between countries. More importantly,
learning can occur. As telecommunications continue to expand, contacts between peoples
of different countries are much more frequent.
Remember, a commercial targeted for customers in France may also be viewed by
citizens of Spain because of satellite technologies. Therefore, a company should try to
transmit a consistent theme, even when there are differences in local messages. In terms
of marketing, the philosophy many companies use is “market globally, but act locally.”
When marketers design or encode messages for local markets, they need to have the free-
dom to tailor or alter the message so that it fits the local culture and the target market.
Thus, although Pepsi portrays a global image around a theme of “Generation Next,” the
final message conveyed to each country often varies. Development of a GIMC is the final
extension to an IMC plan. With its completion, companies are able to compete more
effectively both at home and abroad.
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22 Part 1 The IMC Foundation
K E Y T E R MS
communication Transmitting, receiving, and processing infor-
mation.
senders The person(s) attempting to deliver a message or idea.
encoding The verbal (words, sounds) and nonverbal (gestures,
facial expressions, posture) cues that the sender utilizes in dis-
patching the message.
transmission devices All of the items that carry the message
from the sender to the receiver.
decoding Takes place when the receiver employs any set of his
or her senses (hearing, seeing, feeling) in the attempt to capture the
message.
receivers The intended audience for a message.
noise Anything that distorts or disrupts a message.
clutter Exists when consumers are exposed to hundreds of mar-
keting messages per day, and most are tuned out.
feedback Information the sender obtains from the receiver regard-
ing the receiver’s perception or interpretation of a message.
integrated marketing communications (IMC) The coordina-
tion and integration of all marketing communication tools, avenues,
and sources within a company into a seamless program that maxi-
mizes the impact on consumers and other end users at a minimal
cost. This affects all of a firm’s business-to-business, marketing
channel, customer-focused, and internally oriented communications.
marketing mix Consists of products, prices, places (the distrib-
ution system), and promotions.
brand parity Occurs when there is the perception that most
products and services are essentially the same.
contact points The places where customers may interact with
or acquire additional information about a firm.
standardization When a firm standardizes its products and
market offerings across countries with the goal of generating
economies of scale in production while using the same promo-
tional theme.
adaptation Occurs when products and marketing messages are
designed for and adapted to individual countries.
R E V I E W Q U E S T I O NS
1. Define communication. Why does it play such a crucial role in
business?
2. What are the parts of an individual communications model?
3. Who are the typical senders in marketing communications?
Who are the typical receivers?
4. Name the transmission devices, both human and nonhuman,
that carry marketing messages. How can the human element
become a problem?
5. Define clutter. Name some of the forms of clutter in marketing
communications.
6. Define integrated marketing communications.
7. What are the four parts of the marketing mix?
8. What steps are required to write a marketing plan?
9. Describe a promotions opportunity analysis.
10. Describe firm and brand image.
11. What are the three main components of advertising?
12. Why has the growth of information technology made IMC
programs so important for marketing efforts?
13. What reasons were given to explain the growth of IMC plans
and their importance?
14. What is channel power? How has it changed in the past few
decades?
15. What is brand parity? How is it related to successful marketing
efforts?
16. What is a GIMC? Why is it important for multinational firms?
17. What is the difference between standardization and adaptation
in GIMC programs?
18. How has the job of an advertising account executive changed?
How has the job of a creative changed? How has the job of a
brand manager changed? How do the three jobs interact in this
new environment?
advantage over others. This is difficult, because consumers now
can collect and integrate information about products from a wide
variety of sources, including technological outlets (Internet Web
sites) and interpersonal (sales reps) sources. Quality IMC pro-
grams help maintain the strong voice companies need to be cer-
tain their messages are heard. An additional challenge is the
decline in effectiveness of mass-media advertising. IMC helps
company leaders find new ways to contact consumers with a uni-
fied message.
When a firm is involved in an international setting, a GIMC, or
globally integrated marketing communications system, can be of
great value. By developing one strong theme and then adapting
that theme to individual countries, the firm conveys a message that
integrates international operations into a more coherent package.
Most of this text explains the issues involved in establishing
an effective IMC program. The importance of business-to-
business marketing efforts is noted, because many firms market
their wares as much to other companies as they do to con-
sumers. Successful development of an IMC program should
help firms remain profitable and vibrant, even when the com-
plexities of the marketplace make these goals much more diffi-
cult to reach.
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Chapter 1 Integrated Marketing Communications 23
C R I T I C A L T H I NK I NG E X E R C I S E S
Discussion Questions
1. The marketing director for a furniture manufacturer is
assigned the task of developing an integrated marketing com-
munications program to emphasize the furniture’s natural
look. Discuss the problems the director may encounter in
developing this message and in ensuring that consumers
understand the message correctly. Refer to the communication
process in Figure 1.1 for ideas. What kind of noise may inter-
fere with the communication process?
2. Referring to Exercise 1, assume the director wants to develop
an integrated marketing communications program emphasiz-
ing a theme focused on the furniture’s natural look. This theme
applies to all of their markets, that is, both retailers and con-
sumers. Using Figure 1.5 as a guide, briefly discuss each ele-
ment of the integrated marketing communications plan and
how to incorporate it into an overall theme.
3. The marketing director for a manufacturer of automobile tires
wants to integrate its marketing program internationally.
Should the director use a standardization or adaptation
approach? How could the company be certain that its market-
ing program will effectively be integrated among the different
countries where it sells tires?
4. Hewlett-Packard’s IMC theme is “we understand.” Do you
think this conveys a clear message about the company’s opera-
tions in the software industry?
5. Reebok is moving away from direct competition with other
companies in the athletic shoe market. Instead, the goal is to
position the shoes as being cutting-edge fashion. Do you think
this is a wise move? What kinds of problems or obstacles
could this repositioning effort encounter?
I NT E G R AT E D L E A R NI NG E X E R C I S E S
1. Ron Jon Surf Shop is probably the best known retail store
brand for ocean gear in Florida. In Hawaii, the dominant
name is Hilo Hattie. Go to the Hilo Hattie Web site at
www.hilohattie.com. Compare it to the Ron Jon site at
www.ronjons.com. Do the two sites have relatively common
themes? Which is the more attractive site? Why?
2. How do marketing experts integrate advertisements with
Web sites? Access each of the following company sites.
Compare the appearance and content of the Web sites to the
four shoe advertisements on page 6 of this chapter. Also,
compare the sites to other ads you have seen for each of the
four brands.
a. Reebok (www.reebok.com)
b. ASICS (www.asics.com)
c. New Balance (www.newbalance.com)
d. Skechers (www.skechers.com)
3. Find each of the following companies on the Internet. For each
company, discuss how effective its Web site is in communicating
an overall message. Also, discuss how well the marketing team
integrates the material on the Web site. How well does the Web
site integrate the company’s advertising with other marketing
communications?
a. Revlon (www.revlon.com)
b. J.B. Hunt (www.jbhunt.com)
c. United Airlines (www.united.com)
d. Steamboat Resorts (www.steamboatresorts.com)
4. Information is one key to developing a successful integrated
marketing communications program. Access each of the fol-
lowing Web sites and examine the information and news avail-
able on each site. How would this information help in develop-
ing an integrated marketing campaign?
a. Brandweek (www.brandweek.com)
b. Adweek (www.adweek.com)
c. Mediaweek (www.mediaweek.com)
d. Branding Asia (www.brandingasia.com)
S T U D E NT P R O J E C T
IMC Plan Pro
Are you interested in becoming an award-winning advertiser?
Help is available. A supplement package called “IMC Plan Pro”
is designed to help students create an entire advertising and
communications program. A disk is part of the package. The
booklet and disk will guide you through the entire process. The
authors of this textbook developed the IMC Plan Pro package,
which means the materials match the topics presented in the
upcoming chapters.
The advertisement shown here promoting the annual Student
ADDY Awards competition, as sponsored by the American
Advertising Federation, was designed by a creative at French
Creative Advertising Agency. This advertisement won an ADDY
at the Monroe, Louisiana, advertising competition. With some
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24 Part 1 The IMC Foundation
hard work, creativity, and help, it is possible that next
year’s winning ad in the student competition will be
the one you designed. Ask your instructor about the
Student ADDY Awards sponsored by the American
Advertising Federation and what you can do to enter.
Also, ask the instructor how to obtain the IMC
Plan Pro booklet and disk, or log onto the Prentice Hall
Web site at www.prenhall.com, or e-mail Kenneth
Clow at [email protected]. The best way to be prepared
for a job when you graduate is to develop your creative
talent now.
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C A S E 1
R
achel Peterson knew she faced several major challenges as she took
the job of marketing director for CableNOW. The company was the sole
cable provider for six communities in northeast Louisiana. All of the
cities were essentially “licensed monopolies,” in the sense that no other
cable company could compete within the city limits. In spite of this edge,
however, competition was becoming a major problem.
Satellite television was the primary competitor for CableNOW’s cus-
tomers. Both DirecTV and the Dish Network had set up operations in the six
communities. The two providers were able to charge lower prices for basic
services. They had also started to compete by offering price reductions on
installations. This made switching from cable to satellite much easier for
local residents.
CableNOW’s primary selling point was in the delivery of programming
during bad weather. Thunderstorms and snowstorms completely disrupt a
satellite signal. Severe weather is common in that part of Louisiana. The
same weather events do not affect a cable picture. CableNOW also held a
competitive advantage because the company offered local business and
real estate listings to subscribers. The firm also was able to provide local
radar and weather forecasts during the “Local on the 8s” segments on the
Weather Channel. The satellite companies could not provide these special
options.
When Rachel took the job, she knew another issue was about to unfold.
CableNOW had been able to transmit each city’s local channels as part of
the basic cable package. Until this year, the satellite companies could not.
Dish Network was changing the mix. Dish Network had just signed a con-
tract to provide the local stations to subscribers. DirecTV did not, but did
offer a greater number of channels in the company’s basic package.
The final piece of this changing landscape was changing technology. It
was becoming clear that HDTV (high definition television) was the future.
CableNOW had not yet developed the capacity to deliver high definition sig-
nals. Both DirecTV and the Dish Network had this capability. It was going to
take a substantial investment to make the change at CableNOW. As a result,
Rachel knew she had her work cut out as the marketing department strug-
gled to maintain its market share in each city.
1. What image or theme should CableNOW portray to subscribers?
2. Can you think of a way to emphasize the advantages CableNOW has
in an advertising campaign?
3. Do you believe CableNOW will survive these changes over the next
10 years? Why or why not?
Chapter 1 Integrated Marketing Communications 25
THE CABLE
COMPANY
C A S E 2
C
raft-tech Technologies was on the verge of a major expansion. The
company’s management team invested heavily in compact disk tech-
nology and created what they believed was a viable product for the mini-
CD marketplace. Company leaders were certain that mini-CDs soon would
outsell the traditional-size version, giving them inroads into numerous
markets, including the:
? Music industry
? Computer industry
? CD player market (both Walkman and larger versions for home use)
MARKETING
MINI-CDS
(continued)
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The company’s president, Merv Watson, contacted a full-service adver-
tising agency. Merv asked the agency manager, Susan Ashbacher, to
describe the meaning of full service. Susan responded, “We will take care of
every aspect of your company’s integrated marketing communications pro-
gram. We’ll either prepare the material ourselves, or outsource it and man-
age the process.”
Merv was still confused. “What exactly does that mean?” he asked.
Susan handed him a worksheet (Figure 1.10). She responded, “We will
sit down with you and figure out your company’s primary message. Do you
want to represent yourself as a high-quality leader in technology? Or is your
focus more toward this particular product, and how you serve that niche bet-
ter than anyone else? What we’ll ask you to do is define yourself, and then
we’ll help you develop a marketing program to get that message out.”
Merv studied the worksheet. He was amazed to see all of the items
listed. Noting his interest, Susan said, “Every single thing on that page
should speak with the same voice. Every one of your customers, from busi-
nesses to end users, should know your main message. Your customers
should buy from you because they have confidence in your brand. We want
to make sure you stand out. After all, it’s pretty crowded out there in the
world of technology.”
Merv hired Susan, and the process began. The IMC program was to
integrate a marketing plan to other businesses, individual users, and inter-
national markets.
1. What image or theme should Craft-tech Technologies portray?
2. Design an IMC approach and state how it will affect all of the items
shown in Figure 1.10.
3. Choose another good or service. Consider every IMC aspect of that
good or service as you read the following chapters.
26 Part 1 The IMC Foundation
? Company logo
? Product brand name and company name
? Business cards
? Letterhead
? Carry home bags (paper or plastic)
? Wrapping paper
? Coupons
? Promotional giveaways (Coffee mugs,
pens, pencils, calendars)
? Design of booth for trade shows
? Advertisements (billboards, space used
on cars and busses, television, radio,
magazines, and newspapers)
? Toll-free 800 or 888 number
? Company database
? Cooperative advertising with other
businesses
? Personal selling pitches
? Characteristics of target market buyers
? Characteristics of business buyers
? Sales incentives provided to salesforce
(contests, prizes, bonuses, and
commissions)
? Internal messages
? Company magazines and newspapers
? Statements to shareholders
? Speeches by company leaders
? Public relations releases
? Sponsorship programs
? Web site
FIGURE 1.10
Items to Be Included
in an IMC Program
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Chapter 1 Integrated Marketing Communications 27
E ND NO T E S
1. Ron Jon Surf Shop (www.ronjons.com, accessed February 22,
2005); Donald Baack, “Ron Jon’s Surf Shop: Brand Building in a
No Name Marketplace,” IMC Communique (Spring 2005), p. 5.
2. Diane Brady, “Making Marketing Measure Up,” BusinessWeek
(December 13, 2004), pp. 112–113.
3. Donald Baack, “Communication Processes,” Organizational
Behavior, Chapter 13 (1998), pp. 313–37.
4. James G. Hutton, “Integrated Marketing Communications and
the Evolution of Marketing Thought,” Journal of Business
Research 37 (November 1996), pp. 155–162.
5. Don Schultz, “Invest in Integration,” Industry Week 247, no. 10
(May 18, 1998), p. 20; “Integrated Marketing Communications,”
Consortium Benchmarking Study, American Productivity &
Quality Center (1999).
6. Ibid.
7. Lauren Keller Johnson, “Harnessing the Power of the Customer,”
Harvard Management Update 9 (March 2004), pp. 3–5; Patricia
Seybold, The Customer Revolution, London: Random House
Business Books.
8. “Global Internet Retail: Industry Profile,” Datamonitor
(May 2004), p.10.
9. Tammy Mastroberte, “Cool Control,” Convenience Store News
38, no. 8 (July 14, 2003), pp. 49–53.
10. David J. Lipke, “Pledge of Allegiance,” American Demographics
22, no. 11 (November 2000), pp. 40–42.
11. Debbie Howell, “Today’s Consumers More Open to Try New
Brands,” DSN Retailing Today 43, no. 20 (October 25, 2004),
pp. 29–32.
12. Sandy Brown, “Study: DVR Users Skip Live Ads, Too,”
Brandweek 45, no. 37 (October 18, 2004), p. 7; Jennifer Lach,
“Commercial Overload,” American Demographics 21, no. 9
(September 1999), p. 20.
13. Don E. Schultz and Philip J. Kitchen, “Integrated Marketing
Communications in U.S. Advertising Agencies: An Exploratory
Study,” Journal of Advertising Research (September–October
1997), pp. 7–18.
14. Stephen J. Gould, Dawn B. Lerman, and Andreas F. Grein,
“Agency Perceptions and Practices on Global IMC,” Journal of
Advertising Research (January–February 1999), pp. 7–26.
15. Ibid.
16. Laura Petrecca, “Agencies Urged to Show the Worth of Their
Work,” Advertising Age 68, no. 15 (April 14, 1997), pp. 2–3;
Joseph A. Tradii, “Get the Most from Your Agency,” Marketing
News 28, no. 22 (October 24, 1994), p. 4; Pete Millard, “Gauging
Ad Success: Bean Counters Eclipse Agency Creatives,” Business
Journal Serving Greater Milwaukee: Marketing Resource Guide
14, no. 29 (April 18, 1997), p. 4; Robert L. Gustafson, “Better
Leaders Make Better Account Execs,” Indianapolis Business
Journal 16, no. 15 (March 4, 1996), p. 15; John Bissell, “Agency
Creatives: A Strategic Resource?” Brandweek 39, no. 19
(May 11, 1998), p. 18.
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doc_110398755.pdf
RON JON SURF SHOP
IMC and Brand-Building Go to the Beach
If there is one common trend in beachside communities, it would be that there are plenty
of surfing and swimwear shops located nearby. Most people couldn’t tell you the name of
any one store, unless they have visited a Ron Jon Surf Shop. Ron Jon is a prime example
of how to develop and build strong brand awareness and loyalty in an industry in
which mostly small, single-owner stores are located along the shorelines of beaches and
lake-towns across the United States.
In the 1960s, surfboard technology was changing. Homemade wooden boards were
being replaced with mass-produced fiberglass models. A surfer-dude name Ron
DiMenna was frustrated that he could not buy one of these new and improved rides. As
a result, he founded the first Ron Jon Surf Shop in New Jersey. In the early days,
DiMenna would buy three boards and sell two with a markup that gave him the third
board for “free.” As time passed, the company grew and additional locations were
opened on both the East and West Coast.
The center of the Ron Jon empire is located in Cocoa Beach, Florida. At the Ron Jon Surf
Shop near the beach, surfer and beach-lover figures that look like sand sculptures greet
customers as they approach. Huge billboards showing images of happy and relaxed
swimmers and beautiful beach-people line the top of the building. The store itself covers
more than 52,000 square feet. It is filled with an amazing variety of items. Swimsuits,
sunglasses, toys, surfboards, towels, shirts, and even beach-themed home decorations
are available. There is also a refreshment stand with picnic tables located outside
the store for patrons to enjoy. This Ron Jon unit is open 24 hours per day, 365 days per
year—just like the beach.
One of the most memorable Ron Jon images is its logo. The company’s beach-
themed, fun-loving image has led loyal customers to attach Ron Jon decals carrying the
2
PART 1: THE IMC FOUNDATION
Chapter Objectives
Recognize the critical role
communication plays in
marketing programs.
Review the nature of the
communication process.
Apply a communications model
to marketing issues.
Discover the nature of a totally
integrated advertising and
marketing communications
approach.
Expand the concept of
integrated marketing
communications to the
global level.
Integrated Marketing
Communications
1
Because of permissions issues, some material (e.g., photographs) has been removed from this chapter, though reference to it
may occur in the text. The omitted content was intentionally deleted and is not needed to meet the University's requirements for
this course.
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logo practically everywhere, includ-
ing one near the top of the Eiffel
Tower and another aboard the U.S.
space station. Many of the products
sold in the store also display the logo.
The Ron Jon marketing team effectively utilizes advertising by creating cooperative
programs with other companies. In 2003, the Cocoa Beach store celebrated its 40th
anniversary. The Chrysler Corporation united with the firm to create a limited edition
Ron Jon PT Cruiser. The autos were customized to display Ron Jon decal art on the out-
side. Inside, numerous items were added, including a Ron Jon sports bag, blankets,
license plates, bumper stickers, key chains, and a t-shirt that guaranteed the car owner
special bragging rights: Only 1,000 cars were made. One was given away as the
grand prize of a local surfing event.
The 40th anniversary celebration also featured a contest in which Ron Jon memora-
bilia were solicited. Entrants sent in old photos, news articles, postcards, and personal
stories. Each item gave the person a chance at a gift certificate for Ron Jon merchandise.
Ron Jon sponsors events that tie in with the company’s primary business. This includes
a natural alliance with professional surfing contests and other beachwear manufactur-
ers, such as Billabong. In the early 2000s, one contest, called the “Rip Curl Trip
Giveaway,” was held in Southern California. The event featured free prizes for those
who attended, including a drawing for a trip for two to view another professional surf-
ing contest at Sunset Beach in Hawaii. The Rip Curl event included a radio remote
for the general public, an autograph-signing session with professional surfers, and a
chance to be one of 200 special guests at a VIP party featuring world championship
surfer C. J. Hobgood and his Rusty Team Riders.
Awareness of Ron Jon presence has grown through innovative marketing programs.
At one point, Ron Jon Surf Shop were featured in a MasterCard commercial. Now,
3
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o v e r v i e w
T
he global marketplace consists of a complex set of competitors battling for cus-
tomers in a rapidly changing environment. New companies are formed on a daily
basis. Small businesses, Internet-based operations, and global conglomerates that
have expanded through takeovers and mergers are all part of a worldwide marketing
environment.
A wide variety of media beckon the leaders of these companies to spend advertising
and marketing dollars. Marketing methods range from approaches as simple as stand-
alone billboard advertisements to complex multilingual global Web sites. The number of
ways to reach potential customers continually increases.
In the face of these sophisticated and cluttered market conditions, firms try to be
heard. Marketing experts know that a company’s communications must speak with a
clear voice. Customers need to understand the essence of a business and the benefits that
will come from using that firm’s goods and services. With so many advertising and pro-
motional venues available, and so many companies bombarding potential customers with
messages, the task is challenging.
Two trends have emerged in this turbulent new marketing context. First,
accountability is the primary focus. Advertising agencies are expected to produce tangi-
ble results. The company leaders who hire advertising agencies recognize that they
cannot spend unlimited dollars on marketing programs. The funds must be spent wisely.
A coupon program, contest, rebate program, or advertising campaign must yield measur-
able gains in sales, brand awareness, or customer loyalty to be considered successful.
The push for accountability is being driven by chief executive officers (CEOs), chief
financial officers (CFOs), and boards of directors. Both large and small companies need
visible, measurable results from marketing expenditures. According to Martyn Straw,
chief strategy officer of the advertising agency BBDO Worldwide, corporate executives
and business owners are tired of “funneling cash into TV commercials and glossy ads”
that keep increasing in cost and seem to do less and less. As a result, companies like
DaimlerChrysler are less likely to rely on 30-second television spots. Instead, communi-
cation venues (such as the Internet) and events where names, profiles, and addresses of
prospective car buyers can be collected and tracked are utilized. Straw believes that
4 Part 1 The IMC Foundation
Ron Jon is expanding to reach international
customers. The company has received in-store
visits from people all around the world. Part
of the reason, according to vice president for
corporate development Bill Bieberbach, is
that international customers prefer name-
brand items. Ron Jon is a powerful brand that
reaches beach lovers in other countries.
In this decade, Ron Jon has expanded into
land-based sports. In the mid-2000s, the
company sponsored an “End of Summer
Skateboard Contest” in Florida. Skateboarders
competed for cash prizes and merchandise.
Pepsi was a co-sponsor of the event. Later, the
two companies also held autograph sessions
with Globe Pro Skateboarding. These events
were aimed at new, young customers who enjoy skateboarding as much as surfing.
1
The future of Ron Jon Surf Shops remains bright. The overall theme of fun, relaxation,
and enjoyment makes the Ron Jon brand a major force in what is often a no-name
marketplace.
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Chapter 1 Integrated Marketing Communications 5
“marketing has gone from being a cost or expense to an investment.” Promotional dollars
must add value as they generate new sales and higher profits.
2
The second new trend in advertising is tied to the first. There have been major
changes in the tasks performed by all of the key players in advertising programs. The first
person who faces a new type of job is the account executive. The account executive is the
person in an advertising agency who directs and oversees advertising and promotional
programs for client companies. The strong demand for accountability has put the adver-
tising or marketing account manager on the hot seat. He or she must respond to the
scrutiny placed on each marketing campaign. This increased responsibility has changed
the account executive’s day-to-day activities. In the past, an account executive mainly
served as a liaison between the people who prepared commercials and client companies.
Now, the account manager is involved in developing overall strategic communication
plans while, at the same time, trying to make sure each individual promotional activity
achieves tangible results.
Another person facing greater accountability is the brand or product manager. The
brand manager is the individual who manages a specific brand or line of products for the
client company. When sales of a brand slow down, the brand manager looks for ways to
boost them. The brand manager must work diligently with the advertising agency, the
trade promotion specialist, the consumer promotion specialist, and any other individual
or agency involved in conveying that brand image to customers. The brand manager must
be a master at organizing the activities of many individuals while integrating each mar-
keting campaign. Every promotional effort is coordinated so that each message about the
brand speaks with the same voice.
A third set of individuals facing new responsibilities are creatives. Creatives are the
people who develop the actual advertising and promotional campaigns. Although most
creatives are employed by advertising agencies, some work for individual companies.
Others are freelancers. In this new era where attracting attention to a company, good, or
service is so difficult, creatives are being asked to perform additional functions. They are
now often required to contribute ideas about the strategic marketing direction of the firm
while developing individual advertisements. Creatives are also held accountable, along
with account executives, for the effectiveness of an advertising campaign.
As a result, a new partnership among account executives, brand managers, and cre-
atives has emerged. Most advertising and marketing agencies are expected to do more
than create ads. They are assigned the task of helping a client company develop a totally
integrated communications program. This trend toward a more integrated approach to
advertising and communication will continue.
This textbook is devoted to explaining marketing communications from the strategic
perspective of the decision makers both inside and outside the firm. Various topics are
viewed from the vantage points of the key individuals involved, including account man-
agers, brand managers, creatives, media buyers, and the Web master.
This chapter explains the nature of an integrated advertising and marketing com-
munications program. First, communication processes are described. Understanding
how communication works helps build the foundation for the rest of an integrated
marketing program. Next, a totally integrated marketing communications program is
described. Finally, the integrated marketing communications process is applied to
global or international operations, generating the term GIMC, or globally integrated
marketing communications.
COMMUNICATION AND IMC PROGRAMS
Communication can be defined as transmitting, receiving, and processing information.
When a person, group, or organization attempts to transfer an idea or message, commu-
nication occurs when the receiver (another person or group) is able to comprehend the
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6 Part 1 The IMC Foundation
information. The model of communication shown in Figure 1.1 suggests that communi-
cation takes place when the message that was sent reaches its destination in a form that is
understood by the intended audience.
3
The communication process is part of any advertising or marketing program. For
example, think about a person who plans to buy a new pair of athletic shoes. Using the
communications model displayed in Figure 1.1, the senders are companies that manu-
facture and sell shoes. New Balance, ASICS, Reebok, and Skechers all try to gain the
customer’s attention. Most of these firms hire advertising agencies to construct messages.
In other situations, the firm may have its own in-house marketing group.
FIGURE 1.1
The Communication Process
Sender
Encoding
Transmission Device
Decoding
Receiver
Feedback
Noise
Noise
Noise
Noise
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Chapter 1 Integrated Marketing Communications 7
Encoding the message is the second step in the communications process. A creative
takes the idea and transforms it into attention-getting advertisements designed for various
media (television, radio, magazines, and others). The athletic shoe advertisements that
are shown in this section are examples of encoding.
Messages travel to audiences through various transmission devices. The third stage
of the marketing communication process occurs when a channel or medium delivers the
message. The channel may be a television carrying an advertisement, a billboard, a
Sunday paper with a coupon placed in it, or a letter to the purchasing agent of a large
retail store. The shoe ads displayed in this section were transmitted through various
magazines.
Decoding occurs when the message reaches one or more of the receiver’s senses.
Consumers both hear and see television ads. Others consumers handle (touch) and read
(see) a coupon offer. It is even possible to “smell” a message. A well-placed perfume
sample may entice a buyer to purchase both the magazine containing the sample and the
perfume being advertised. People who are interested in purchasing athletic shoes pay
closer attention to advertisements and other information about shoes. Study the athletic
shoe advertisements shown in this section. Then, answer the following questions:
1. Which advertisement most dramatically attracted your attention? Why?
2. Which advertisement is the least appealing? Why?
3. How important is the brand name in each ad? Why?
4. What is the major message of each individual advertisement?
5. What makes each advertisement effective or ineffective?
6. Discuss your thoughts about each advertisement with other students.
When students discuss the advertisements, they sometimes discover that the same
advertisement has been interpreted differently by other members of the group. In other
words, the message is not being decoded in the same way. Quality marketing communi-
cation occurs when customers (the receivers) decode or understand the message as it was
intended by the sender. In the case of the shoe ads, effective marketing communications
depends upon receivers getting the right message and responding in the desired fashion
(such as shopping, buying, or telling their friends about the shoes).
Examine the Web sites of the four athletic shoe companies featured in the advertisements.
?
Reebok (www.rbk.com)
?
ASICS (www.asics.com)
?
New Balance (www.newbalance.com)
?
Skechers (www.skechers.com)
The sites provide additional insights about the messages these companies are trying to
send. Compare the materials on the Web sites to the shoe advertisements shown here. You
should be able to see how the two messages were designed to go together. If they do not,
the IMC program is not completely developed or fully integrated.
One obstacle that prevents marketing messages from being efficient and effective is
called noise. Noise is anything that distorts or disrupts a message. It can occur at any
stage in the communication process, as displayed in Figure 1.1. Examples of noise are
provided in Figure 1.2.
The most common form of noise affecting marketing communications is clutter.
Modern consumers are exposed to hundreds of marketing messages each day. Most are
tuned out. Clutter includes:
? Eight minutes of commercials per half hour of television and radio programs
? A Sunday newspaper jammed with advertising supplements
? An endless barrage of billboards on a major street
? The inside of a bus or subway car papered with ads
? Web sites and servers loaded with commercials
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8 Part 1 The IMC Foundation
The final component of the communication process is feedback. It takes the forms of
purchases, inquiries, complaints, questions, visits to the store, and hits on a Web site.
Each indicates that the message has reached the receiver and that the receiver is now
responding.
Account managers, creatives, brand managers, and others involved in the marketing
process should pay attention to every part of the communications model. They should
make sure that the proper audiences receive the messages. The message also must cut
through all of the noise and clutter. In the case of athletic shoes, increases in market
share, sales, and brand loyalty are common outcomes the marketing team tries to achieve.
Remember, however, that communicating with consumers and other businesses
requires more than simply creating attractive advertisements. In the next section, the
nature of a fully developed integrated marketing communications program is described.
An effective IMC process integrates numerous marketing activities into a single package.
This makes it possible for companies to reach target markets and other audiences more
effectively.
INTEGRATED MARKETING COMMUNICATIONS
An integrated marketing communications program can be built on the foundation pro-
vided by the communications model. Some marketing scholars argue that the integrated
marketing communications (IMC) approach is a recent phenomenon. Others suggest the
name is new, but the concept has been around for a long time. They note that the value of
effectively coordinating all marketing functions and promotional activities has been men-
tioned in marketing literature for many years.
4
Although IMC programs have been described in several ways, the consensus is to
define them as follows: Integrated marketing communications (IMC) is the coordina-
tion and integration of all marketing communication tools, avenues, and sources within a
company into a seamless program that maximizes the impact on consumers and other end
users at a minimal cost. This integration affects all of a firm’s business-to-business, mar-
keting channel, customer-focused, and internally directed communications.
Before further examining the IMC concept, first consider the traditional framework
of marketing from which it originated. The marketing mix is the starting point. As
shown in Figure 1.3, promotion is one of the four components of the mix. For years the
traditional view was that promotional activities included advertising, sales promotions,
and personal selling activities. Sales promotions actually includes both sales and trade
promotions, with sales promotions aimed at end users or consumers of goods and ser-
vices, and trade promotions directed toward distributors and retailers. This traditional
? The viewer is talking on the phone.
? The viewer is getting something to eat
during the ad.
? The viewer of the ad dislikes or is
offended by the nature of the ad.
? The ad is placed on a TV show that is
seldom watched by the producer's
target audience.
? The advertisement is placed next to an
ad by a competitor.
? The creative designed an ad that the
target audience did not get.
? The person in the ad overpowers the
message.
? The producer of the ad changed the
background of the ad from what the
creative wanted.
FIGURE 1.2
Communication Noise
in Television Advertising
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Chapter 1 Integrated Marketing Communications 9
view has changed some, due to the accountability issue that was discussed earlier in this
chapter. The need to integrate all promotional efforts has expanded beyond the three tra-
ditional elements of advertising, sales promotions, and personal selling. Now, promotion
also includes activities such as database marketing, direct marketing, sponsorship mar-
keting, Internet marketing, and public relations.
A complete IMC plan incorporates every element of the marketing mix: products,
prices, distribution methods, and promotions. This textbook primarily deals with the pro-
motions component. Keep in mind, however, that to present a unified message the other
three elements of the marketing mix must be blended into the program.
AN INTEGRATED MARKETING
COMMUNICATIONS PLAN
Integrated marketing is based on a master marketing plan. This plan should coordinate
efforts in all components of the marketing mix. The purpose of the marketing plan is to
achieve harmony in relaying messages to customers and other publics. The same plan
integrates all promotional efforts. The idea is to keep the company’s total communication
program in synch.
Figure 1.4 lists the steps required to complete a marketing plan. The first step is a
situational analysis, which is the process of examining factors from the organization’s
internal and external environments. The analysis identifies marketing problems and
opportunities present in the external environment as well as internal company strengths
and weaknesses.
When the situation is fully understood, the second step is to define primary
marketing objectives. These objectives normally include targets such as higher sales, an
increase in market share, a new competitive position, or desired customer actions, such as
visiting the store and making a purchase.
Based on the marketing objectives, a marketing budget is prepared and marketing
strategies are finalized. Marketing strategies apply to all the ingredients of the marketing
mix plus any positioning, differentiation, or branding strategies the marketing team
wishes to add.
FIGURE 1.3
The Components of Promotion
Product Price Promotion Distribution
Advertising Sales Promotions Personal Selling
Public
Relations
Internet
Marketing
Sponsorship
Marketing
Direct
Marketing
Database
Marketing
? Situation analysis
? Marketing objectives
? Marketing budget
? Marketing strategies
? Marketing tactics
? Evaluation of performance
FIGURE 1.4
The Marketing Plan
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10 Part 1 The IMC Foundation
ETHICAL ISSUES
Ethics, Morals, and IMC
Morals are beliefs or principles that individuals hold concerning what is right and what is
wrong. Ethics are moral principles that serve as guidelines for both individuals and organi-
zations. Marketing and marketing communications activities are affected by ethical and
moral concerns. In each chapter of this textbook, ethical issues are described. At the most
general level, several major ethical concerns and criticisms have arisen. They include:
1. Marketing causes people to buy more than they can afford.
2. Marketing overemphasizes materialism.
3. Marketing increases the costs of goods and services.
4. Advertising perpetuates stereotyping of males, females, and minority groups.
5. Marketers too often create advertisements that are offensive.
6. Advertisements often make bad habits (such as smoking) seem attractive.
7. Marketers use unfair tactics (such as bait and switch programs).
8. Too many advertisements are deceptive or misleading.
9. Advertising to children is unethical.
10. Salespeople use too many deceptive practices.
While reading about the nature of integrated marketing communications, consider these and
other ethical issues. The time to start thinking about the ethical and moral basis of a career
in marketing is now.
From these strategies, marketing tactics guide the day-by-day activities necessary to
support marketing strategies. The final step in the marketing plan is stating how to
evaluate performance.
These six steps of the marketing plan are similar to those used in creating manage-
ment strategies. Both are designed to integrate all company activities into one consistent
effort. Also, both provide guidance to company leaders and marketing experts as they try
to ensure that the firm’s total communications package is fully integrated. Once the mar-
keting plan has been established, the firm can prepare its integrated marketing communi-
cations program.
IMC COMPONENTS
Figure 1.5 presents on overview of the IMC approach that will be used in this textbook
and presented in subsequent chapters. A brief description of each aspect follows. As
shown, the foundation of an IMC program consists of a careful review of the company’s
image, the buyers to be served, and the markets in which the buyers are located.
Advertising programs are then built on this foundation, as are the other elements of
the promotional mix. Finally, the integration tools located at the peak of the pyramid help
the company’s marketing team make certain that the elements of the plan are consistent
and effective.
The Foundation
The first section of this text builds the foundation for the rest of an IMC program. Chapter 2
describes the corporate image and brand management elements. Strengthening the firm’s
image and brands answers the key questions, “Who are we and what message are we trying
to send?” From there it is possible to identify target markets.
Chapter 3 describes buyer behaviors. The steps of the consumer purchasing process
can be used to explain how individuals make choices. Marketers identify which motives
lead to purchase decisions and which factors affect those decisions. Then, the IMC program
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Chapter 1 Integrated Marketing Communications 11
can be designed in a manner that best influences consumer choices. Business-to-business
buyer behavior is also examined. Knowing how to reach purchasing managers and other
decision makers within target businesses is another critical element in the development of a
totally integrated communications plan. Discovering viable business-to-business marketing
opportunities plays a vital role in implementing the IMC plan.
Chapter 4 describes the promotions opportunity analysis element of the IMC pro-
gram. This task includes identifying all target markets. Consumer market segments are
often distinguished by demographics, income, social class, and various psychographic
variables. Business markets can also be segmented by understanding the demographics of
the company’s buying team, noting who the end users will be, and by determining the
benefits other businesses expect to receive from the products and services they buy.
Advertising Tools
The second section of this text is devoted to advertising issues. Advertising management,
as described in Chapter 5, addresses the major functions of advertising and directs the
general path the company will take. Advertising design and media selection (Chapters 6
through 8) involve matching the message, media, and audience, so that the right people
see and/or hear the ads. Many appeals can be used, including those oriented toward fear,
humor, sex, music, and logic. These should be conveyed by attractive, credible, likable,
and authoritative sources. Effective advertising is based on a foundation of understanding
consumer and business buyer behaviors. Advertising reinforces or projects the specific
brand and firm image stated in the marketing plan.
Promotional Tools
The next level of the IMC pyramid adds trade promotions, consumer promotions, per-
sonal selling, database marketing, public relations, and sponsorships into the program.
When marketing managers carefully design all of the steps taken up to this point, the firm
FIGURE 1.5
An IMC Plan
Internet
Marketing
IMC for
Small
Businesses
and
Entre-
preneurial
Ventures
Evaluating
an
Integrated
Marketing
Program
Advertising
Management
Advertising
Design:
Message Strategies
and
Executional
Frameworks
Advertising
Media
Selection
Corporate
Image and Brand
Management
Buyer Behaviors
Promotions
Opportunity
Analysis
Foundation
Advertising
Tools
Promotional
Tools
Integration
Tools
Trade
Promotions
Consumer
Promotions
Personal
Selling, Database
Marketing, and
Customer
Relations
Management
Public
Relations
and
Sponsorship
Programs
Advertising
Design:
Theoretical
Frameworks
and Types
of Appeals
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12 Part 1 The IMC Foundation
is in a better position to integrate these activities.
Messages presented in the advertising campaign can be
reinforced in the trade and consumer promotions. Trade
promotions, as described in Chapter 9, include contests,
incentives, vendor support programs, and other fees and
discounts that help the manufacturer push the product
through the channel. Consumer promotions are directly
oriented to end users and include coupons, contests,
premiums, refunds, rebates, free samples, and price-off
offers. The advertisement for Celestial Seasonings
shown in this section illustrates the use of consumer
promotions. Consumer promotions are the subject of
Chapter 10. Chapter 11 explains the nature of personal
selling and database marketing in terms of database
management, data mining, direct marketing, customer
relationship management (CRM) activities, and other
functions in which direct contacts are made with con-
sumers. Chapter 12 focuses on public relations pro-
grams that can help the marketing team connect with
consumers in positive and socially responsible ways.
Sponsorship programs are discussed because, in many
cases, firms must utilize public relations efforts to help
a sponsorship program achieve the greatest impact. The
chapter concludes by examining the many legal and
regulatory issues that are part of the advertising and
promotions environment.
Integration Tools
The “top” level of the IMC program includes the inte-
gration tools needed to make sure all customers are
effectively being served. Internet marketing, the topic of Chapter 13, has become a criti-
cal activity in nearly every firm. Consumers look for companies to have an Internet
presence. For businesses, it is even more critical as increasingly business-to-business
transactions, sales, and service are being conducted online. Chapter 14 is devoted to
small businesses and entrepreneurial ventures. All of the IMC tasks are included in man-
aging a small business; however, the emphasis changes due to special challenges such as
limited funds for promotions.
Chapter 15, the final chapter of this textbook,
explains how to evaluate an integrated marketing pro-
gram. It is crucial to make decisions about how a com-
munication program will be evaluated prior to any
promotional campaign. Then, evaluation materials
can be designed accordingly. A promotions evaluation
process holds everything together. It drives the entire
IMC process as much as does preparing the core busi-
ness plan. Fully integrated marketing requires a careful
linkage between planning and evaluation processes; one
cannot occur without the other.
Refining the IMC Program
Integrated marketing communications (IMC) involves
more than simply writing a plan. It is also not a pro-
gram limited to the company’s marketing department.
IMC is a company-wide activity. To be successful,
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Chapter 1 Integrated Marketing Communications 13
every part of the organization’s operation must be included. A study conducted by the
American Productivity & Quality Center of Houston of the best integrated marketing
firms indicates that four stages are involved in designing an effective integrated market-
ing communications system.
5
The first stage is to identify, coordinate, and manage all forms of marketing commu-
nication. The objective is to bring all of the company’s communication elements together
under one umbrella. This includes advertising, promotions, direct marketing, Internet and
e-commerce programs, public relations, sponsorships, and other marketing activities.
During this stage of IMC development, the marketing team must be sure that all promo-
tional materials deliver a unified message and speak with one voice. The theme should
also be present in the logos, colors, letterhead, and every other message the company
sends. The goal is to make sure there is consistency in and synergy among all communi-
cation venues.
In the second stage, communications are examined from the perspective of the cus-
tomer. The marketing team should analyze every contact method that might influence cus-
tomers as they form opinions and make decisions about the company. This means studying
employees who work at the company, the firm’s Web site, and the product itself. Even
those who answer the phone deserve scrutiny. The idea is to be certain external communi-
cations match internal communications. The IMC umbrella covers every internal and
external group that might affect perceptions of the company and its products. Employees,
distributors, retailers, dealers, product package designers, and others need to be observed.
Hewlett-Packard: “We Understand”
C O MMU NI C AT I O N A C T I O N
An excellent example of an integrated marketing communications program is
provided by the software systems engineering division (SSED) of Hewlett-
Packard (H-P). This group initiated its IMC process through workshops designed
to help H-P’s employees better understand the dilemmas faced by its customers.
These workshops were directed by representatives from sales, product market-
ing, engineering, and customer support departments within H-P. Each had a dif-
ferent perspective of the customer and provided valuable input into the various
dilemmas faced by end users. The team approach allowed everyone to see the
customer from a more holistic perspective.
Based on input from these departments, a creative strategy emerged with a
strong focus on customer needs. The theme “we understand” was adopted.
H-P’s marketing emphasis centered on the idea that members of the company
understood the issues, pressures, and constraints that software developers
faced. Knowing about unrealistic deadlines, hidden-code errors, and other prob-
lems and how to cope with these issues was the key. H-P’s leaders believed they
could solve transition problems for customers by moving to object-oriented pro-
gramming and simultaneously developing multiple applications of company soft-
ware. The theme was integrated into all of H-P’s marketing programs. It was
launched in an advertising campaign and then reinforced in three direct mailings.
The same message was used in trade show handouts and displays. H-P’s Web
site was redesigned around the same principle.
The “we understand” idea served as an umbrella for all marketing strategies
and tactics. The integrated approach allowed H-P to speak with one voice regard-
less of the communication method customers encountered when they con-
tacted the firm. This more fully integrated program was more than just the theme,
however. It began with effective communication within and built outward to the
point where H-P’s end users (other business) could see and experience a real dif-
ference in the products and services that were being provided.
Source: P. Griffeth Lindell, “You Need an Integrated Attitude to Develop IMC,” Marketing News 31,
no. 11 (May 26, 1997), p. 6.
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Information technology comes to the forefront in
the third stage. Company leaders should find ways to
apply information technology to IMC programs. This
provides the basis for identifying and evaluating the
impact of communication programs with respect to
key customer segments. The third step is a critical
part of an IMC program because now customer input
is being gathered and used to make marketing and
communication decisions. This means the best IMC
companies involve customers in planning processes.
Consumer goods companies seek inputs from con-
sumers. Business-to-business firms invite target
members from other businesses. As a result, the
potentially adversarial relationship between business
buyers and sellers is replaced by a cooperative, “let’s
work together” mentality.
The fourth and final stage of IMC development
occurs when the organization uses customer data
information and insights to drive corporate strate-
gic planning. Return-on-customer investment is
calculated for the various marketing initiatives. The
information guides marketing decisions and the com-
munication approaches aimed at individual customer
segments. Firms reaching this stage, such as Dow
Chemical, FedEx, and Hewlett-Packard, take data-
bases and use them to calculate and establish a cus-
tomer value for each buyer. All customers are not
equally valuable. In contrast to a typical marketing
program designed to win customers by sending the
same marketing message to everyone, Dow Chemical,
FedEx, and Hewlett-Packard allocate sales and mar-
keting communication resources to those customers
with the greatest potential for return, based on calculations of customer values. This
process helps company leaders understand each customer’s worth and treat each one
individually, resulting in the highest possible return on investment for marketing
expenditures.
After the internal marketing activities have been completed, the marketing team
should address other parts of the company. A study by the American Productivity &
Quality Center notes that successful IMC programs require cross-functional communica-
tion. In other words, communication lines must be
open between marketing and other departments.
Every employee in the company must become part
of the emphasis on quality communications and
customer orientation.
6
One final ingredient is found in successful
IMC companies. The marketing team clearly
understands as many of the company’s cus-
tomers’ needs as possible. This makes them
customers of the whole company, not just the
SBU, operating division, or outlet in which they
are doing business. Seeing a patron as a cus-
tomer of the total company encourages the
cross-selling of goods and services. Using
this method, ServiceMaster, which provides
janitorial services to various companies, was
able to increase revenues. The marketing team
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Chapter 1 Integrated Marketing Communications 15
encouraged cross-selling of pest control and lawn services to customers already using
the firm’s janitorial services. This approach also assists selling in other countries
when the firm is a multinational operation. Thus, a customer who buys from Hewlett-
Packard in the United States is an excellent prospect in other countries where both
H-P and that customer operate. When members of the company think in these terms,
marketing dollars are spent wisely.
THE VALUE OF IMC PLANS
Why are IMC programs so crucial to marketing success? Figure 1.6 lists several trends
that are linked to the increasing importance of integrated advertising and marketing
communications programs. A major force compelling firms to seek greater integration
of advertising and marketing communications is information technology. Computers,
the World Wide Web, and telecommunications have moved the world into an informa-
tion age where businesses and most consumers have access to an abundance of market-
ing information. The challenge for marketers in the future will not just be gathering
information; the challenge will also involve sifting through an avalanche of statistics,
ideas, and messages and putting them into a format that company leaders can use. When
this is accomplished, business leaders can make intelligent, informed decisions about
how to market products.
Information Technology
Technology allows instant communications among business executives, employees, and
others around the world. It has also created new opportunities for marketing communica-
tions. For example, predicting the purchasing behaviors of consumers in the past was
based on the results of test markets, attitudinal research, and intention-to-buy surveys.
Although these are excellent means of obtaining information about consumers, they often
are slow, costly, and are potentially unreliable.
Today, predicting purchase behavior is more precise due to the development of the
UPC (universal product code) bar-coding system. The technology was originally used to
manage inventories. Scanning every sale meant retailers were better able to develop effi-
cient inventory control systems. They did not have to rely on human counting of mer-
chandise.
At the same time, UPC codes combined with other technology programs allow
huge amounts of data and information about customers to be gathered. Advanced sta-
tistical software helps company leaders analyze these data files. Connections between
financial (credit card, banking) and business firms make it possible to collect purchas-
ing data. Using this information, demographic and psychographic information about
consumers can be correlated with the items they buy, when they make purchases, and
where they make purchases. Consequently, marketers can quickly determine who is
buying a company’s products and identify the best communication channels to reach
those customers.
? Development of information technology
? Changes in channel power
? Increase in competition (global competitors)
? Maturing markets
? Brand parity
? Integration of information by consumers
? Decline in effectiveness of mass-media advertising
FIGURE 1.6
Factors Affecting the Value of
IMC Programs
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16 Part 1 The IMC Foundation
Changes in Channel Power
Technological developments also served as catalysts for changes in channel power. Two
typical market channels are:
Producer ¡Wholesaler ¡Retailer ¡Consumer
and
Producer ¡Business Agent ¡Business Merchant ¡Business User
With the advancement of the World Wide Web and
information technology, the power has shifted to the con-
sumer.
7
Currently, consumers can obtain information
about goods and services from their homes or businesses
and purchase almost anything over the Internet. For
example, the Visa advertisement in this section encour-
ages consumers to book hotel rooms, air travel, and car
rentals online. Internet-driven sales have grown at a
tremendous rate. In fact, since 1999 Internet retail sales
have expanded at annual rate of 44.4 percent. By 2003,
total global retail sales were $232.4 billion. The most
concentrated spending is in the areas of computers, elec-
tronics, tickets, and travel.
8
Figure 1.7 highlights the
major segments of global Internet retail sales and what
percentage each category represents of the total global
Internet retail sales.
To illustrate how technology has changed channel
power, think about an individual in the market for a new
stereo. First, she goes to the Internet and searches for
information. She then identifies several possible brands
and narrows them down to three. Next, she travels to a
local mall and investigates the three brands. Asking ques-
tions of the salesclerks helps her gather additional prod-
uct information. Going home, she then logs onto the Web
sites of the three manufacturers to learn about warranties
and company policies. Having gathered sufficient infor-
mation to make a decision, she can utilize Internet
sources or a catalog to finalize the purchase either via the
FIGURE 1.7
Global Internet Retail Sales
by Product Type
Toys and Games,
4.2%
Apparel and Gifts,
5.0%
Books, 8.5%
CDs, Music, and
Videos, 11.8%
Household, 12.8%
Computers,
Electronics, and
Software, 28.7%
Tickets and Travel,
29.0%
Other, 0.1%
Source: “Global Internet Retail: Industry Profile,” Datamonitor (May 2004), p. 10.
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Chapter 1 Integrated Marketing Communications 17
Web or by telephone. Within 3 days, the new stereo arrives complete with a money-back
guarantee if she is not satisfied. The result is that the buyer is in charge of the entire
process, not the retailer or the wholesaler.
The same principles apply to business-to-business purchasing activities. Buyers
who shop on behalf of organizations and other company members seeking business-to-
business services are able to tap into the same resources (Web sites, databases). This
means that the same kind of shift in channel power is taking place in the business-to-
business sector.
Increases in Competition
Information technology has dramatically changed the marketplace in other ways.
Consumers can purchase goods and services from anywhere in the world. Competition
no longer comes from the company just down the street—it can come from a firm
10,000 miles away that can supply a product faster and cheaper. People want quality, but
they also want a low price. The company that delivers on both quality and price gets the
business, regardless of location. Advancements in delivery systems make it possible for
purchases to arrive almost anywhere in a matter of days.
In this type of market, the only way one firm can gain sales is to take customers
away from another firm. Integrating advertising and other marketing communica-
tions becomes extremely important in such an environment. Advertising alone is not
enough to maintain sales. This situation is further complicated for manufacturers
when retailers hold stronger channel power and control the flow of merchandise to
consumers. In that situation, manufacturers have to invest in trade promotions (dealer
incentives, slotting allowances, discounts) to keep their products in various retail out-
lets. Encouraging retailers to promote a manufacturer’s brand or prominently display
it for consumer viewing requires even greater promotional dollars. Manufacturers
also must invest heavily in consumer promotions to keep end users loyal to their
companies and encourage them to purchase their brands because they know that the
more they promote their own products, the more attractive those products become
to retailers.
The U.S. athletic shoe market provides an excellent example of how growth for any
given company comes at the expense of competing brands. Figure 1.8 displays market
shares for the top four athletic shoe brands over an 18-year period. Although Nike
remains the leading brand, its share and lead over competing brands have been reduced
from 48 percent of the total market in 1997 to 36 percent market share in 2003. On the
FIGURE 1.8
Market Share of Top Four Brands
in 2003 in the U.S. Athletic
Shoe Market
×
×
×
60%
50%
40%
30%
20%
10%
20%
48%
36%
13%
11%
9%
6%
20%
4%
6%
3%
P
e
r
c
e
n
t
a
g
e
o
f
T
o
t
a
l
U
.
S
.
A
t
h
l
e
t
i
c
S
h
o
e
M
a
r
k
e
t
0%
1986 1997 2003
Nike Reebok Adidas New Balance ×
31%
Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0 5, no. 8 (September 2004), pp. 108–113.
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18 Part 1 The IMC Foundation
other hand, Reebok’s market share declined from 31 percent in 1986 (when the brand was
the market leader) to 13 percent in 2003. As a result of this drop, Reebok has chosen not
to compete with Nike in the hard-core sports market. Instead, Reebok now focuses on
becoming the brand of choice for hip-hoppers, hipsters, and other fashion-forward urban-
ites. The Communication Action box in this section contains more information about
Reebok’s strategy and new integrated marketing communication plan.
At the same time that manufacturers are fighting for market share, retailers,
equipped with scanner data, control product placement within a store and shelf space
allocation.
9
Retailers now decide which brands are displayed and which brands are
given special emphasis in the store. To gain prominence for a particular brand at the
retail level, manufacturers must coordinate all advertising, trade promotions, and sales
promotions as part of a larger effort. Manufacturers are seeking to maximize market-
ing dollars by gaining maximum exposure to consumers and retailers. Retailers, in
turn, focus on IMC efforts that are designed to maintain customer loyalty along with
positive relationships with manufacturers. It is crucial for each company in the mar-
keting chain to create a quality IMC program that reaches both customers and others
in the chain.
In late 2005 (as this book was going to press), Adidas made a bid to acquire
Reebok. In the near future, it appears that Reebok will remain a separate brand along-
side Adidas. This purchase enables Adidas/Reebok to increase total market share and
Reebok: The Cool Campaign
C O MMU NI C AT I O N A C T I O N
Realizing the difficulty of competing head-to-head with Nike, Reebok has chosen
a new marketing approach. Through a re-branding strategy and image reposi-
tioning, Reebok hopes to become the shoe of choice for hip-hoppers, hipsters,
and other fashion-forward urbanites. It is a risky strategy. Still, in 2003, of the top
four athletic shoe brands, only Reebok had increases in sales.
Reebok’s first move into the new arena of fashion was signing hip-hop artists
Jay-Z and 50 Cent to endorsement deals. Reebok then signed Japanese
clothing designer Nigo to develop a new line, which was branded “Ice Creams.”
Although bold, this new approach has captured a segment of consumers who
liked the new fresh look, the new endorsers, and the fashion-forward statements.
The new line was targeted primarily to males. It accounted for 15 percent of
Reebok’s 2003 sales.
In Asia–Pacific, the company used another program. Reebok teamed with
MTV to bring basketball programming to Asia. Reebok signed a 10-year pact with
the National Basketball Association to not only provide programming, but also to
design, manufacture, market, and sell official NBA sportswear in the Asia–Pacific
region. According to Siddarth Varma, vice president of marketing for Asia–Pacific
Reebok International, “Reebok has been gaining inroads into the world of basket-
ball and hip-hop music with the sponsorship of various prominent NBA players
and hip-hop artists.”
A third objective was to reach tech-savvy fans. Reebok signed a multiyear
sponsorship with entertainment software company Electronic Arts, Inc. Advertise-
ments featuring Reebok shoes and gear in video games were developed. Brain
Povinelli, vice president of integrated marketing at Reebok, stated that combining
Reebok’s products with video games was “an effective part of our integrated
marketing model.” This new integrated approach may be just the right approach
to rejuvenate the Reebok brand.
Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0 5, no. 8 (September 2004), pp. 108–113;
“Reebok’s New Game,” WWD: Women’s Wear Daily 188, no. 132 (December 23, 2004), p. 3; Amy
White, “Reebok, MTV Line for Brand Hoopla,” Media Asia (April 9, 2004), p. 3.
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Chapter 1 Integrated Marketing Communications 19
more effectively compete with Nike because each brand has different strengths and
different target markets.
Brand Parity
The increase in national and global competition is due to the availability of multiple
brands. Many of these products have nearly identical benefits. When consumers
believe that most brands offer the same set of attributes, the result is called brand
parity. From the consumer’s perspective, this means shoppers will purchase from a
group of accepted brands rather than one specific brand. When brand parity is present,
quality is often not a major concern because consumers believe that only minor qual-
ity differences exist. Consumers often view quality levels of products as being nearly
equal. As a result, they often base purchase decisions on other criteria such as price,
availability, or a specific promotional deal. The net effect is that brand loyalty has
experienced a steady decline.
10
Brand loyalty has also been reduced because of a
growing acceptance of private brands.
A survey conducted by Top Brands in 2004 revealed higher levels of interest in brand
switching in 13 of 17 major product categories.
11
The lowest levels of brand loyalty were
present for greeting cards, groceries, and canned foods. When asked “If you didn’t find
the brand you wanted, would you be likely to buy another brand,” 68 percent of the con-
sumers surveyed said they would be willing to switch to another greeting card brand if
their favorite was not available. For groceries and canned foods, 67 percent were willing
to switch.
In response, the marketing team should try to create
a message that expresses how the company’s products
are clearly different. They must convince consumers
that the company’s brand is superior. They must also
convince consumers that the product is not the same
as the competition’s. A quality IMC program is, in part,
designed to gain the benefits associated with a strong
brand name.
Integration of Information
Today’s consumers have a variety of choices regarding
where they obtain information about a brand. If
consumers are not satisfied with what they hear, they
can seek additional information. They may go to the
Internet and read about other brands and companies. As
a result, most companies now list Internet addresses
on advertisements. In the McCormick’s ad shown in
this section, notice the address: www.mccormick.com.
The Web site contains additional information about
McCormick seasonings along with ideas and recipes for
consumers. Web users can discuss products and compa-
nies with other customers in chat rooms or in Web logs.
They may also travel to retail stores and discuss various
options with the salesclerk. Others may consult inde-
pendent sources of information such as Consumer
Reports.
The marketing team should be concerned with the
ways consumers integrate the information they receive.
Company leaders should make sure that every contact
point projects the same message. Contact points are
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20 Part 1 The IMC Foundation
the places where customers interact with or acquire additional information from a com-
pany. These contacts may be direct or indirect, planned or unplanned. An effective IMC
program sends a consistent message about the nature of the company, its products, and
the benefits that result from making a purchase from the organization.
Decline in the Effectiveness
of Mass-Media Advertising
The influence of mass-media advertising has dramatically declined. VCRs and TIVO
systems allow consumers to watch programs without commercials. The rise in popularity
of cable TV, DVR recorders, and satellite dishes means consumers have a wider variety
of viewing choices. Using the remote while watching television means it is likely that,
during most commercials, the viewer is surfing other channels to see what else is on.
Many television advertisements are not seen, even by those people watching a particular
program. In a recent survey by conducted by Brandweek magazine, only 16 percent of
viewers said that they watch commercials during a program. Figure 1.9 displays the
results of this study.
12
To overcome this problem, it is vital to create new and innovative
communications programs.
Many firms employ advertising agencies to assist in marketing efforts. Until 1970,
almost all advertising agencies focused only on the advertising aspect of the marketing
plan. Now, however, many advertising agencies spend substantial amounts of time assist-
ing clients in the development of IMC programs.
13
In addition to advertisements, these
agencies design consumer promotion materials and direct-marketing programs, along
with other marketing tactics.
GLOBALLY INTEGRATED MARKETING
COMMUNICATIONS
The same trend that exists among advertising agencies in the United States also occurs in
the international arena. Instead of being called “IMC,” however, it is known as GIMC, or
a globally integrated marketing communications program.
14
The goal is still the same—
to coordinate marketing efforts. The challenges are greater due to larger national and cul-
tural differences in target markets.
In the past, marketers could employ two different strategies for global companies.
The first approach was called standardization, in which the idea was to standardize
the product and message across countries. The goal of this approach was generating
Positive Responses
? Ads have potential to be entertaining (45%)
? Sit and watch ads (16%)
Negative Responses
? Get up and do something else (54%)
? Get annoyed (52%)
? Switch channels (40%)
? Talk to others in the room (34%)
? Turn down the sound on the TV (19%)
? Read (11%)
? Use the computer (5%)
FIGURE 1.9
Viewer Activities
During TV Commercials
Source: Jennifer Lach, “Commercial Overload,” American Demographics 21, no. 9 (September 1999) p. 20.
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Chapter 1 Integrated Marketing Communications 21
S U MMA RY
A new era is unfolding in the fields of advertising, promotions,
and marketing communications. Marketing departments and
advertising agencies, as well as individual account managers,
brand managers, and creatives, encounter strong pressures. They
are being held accountable for expenditures of marketing com-
munications dollars. Company leaders expect tangible results
from promotional campaigns and other marketing programs. As
a result, new partnerships form between account executives,
creatives, and the companies that hire them. The duties of the
account manager have expanded in the direction of a more
strategically oriented approach to the advertising and marketing
communications. Those preparing to become advertising or pro-
motions professionals must be aware of both accountability
issues and the new aspects of these jobs.
16
Communication is transmitting, receiving, and processing
information. It is a two-way street in which a sender must establish
a clear connection with a receiver. Effective communication is the
glue holding the relationship between two entities together. When
communication breaks down, conflicts, misunderstandings, and
other problems may develop.
The components of the communication process include
the sender, an encoding process, the transmission device, the
decoding process, and the receiver. Noise is anything that dis-
torts or disrupts the flow of information from the sender to the
receiver.
In the marketing arena, senders are companies seeking to trans-
mit ideas to consumers, employees, other companies, retail outlets,
and others. Encoding devices are the means of transmitting infor-
mation, and include advertisements, public relations efforts, press
releases, sales activities, promotions, and a wide variety of addi-
tional verbal and nonverbal cues sent to receivers. Transmission
devices are the media and spokespersons who carry the message.
Decoding occurs when the receivers (such as customers or retail-
ers) encounter the message. Noise takes many forms in marketing,
most notably the clutter of an overabundance of messages in every
available channel.
Integrated marketing communications (IMC) takes advantage
of the effective management of the communications channel.
Within the marketing mix of products, prices, distribution systems,
and promotions, firms that speak with one clear voice are able to
coordinate and integrate all marketing tools. The goal is to have a
strong and positive impact on consumers, businesses, and other
end users.
IMC plans are vital to achieving success. The reasons for their
importance begin with the explosion of information technolo-
gies. Channel power has shifted from manufacturers to retailers
to consumers. Company leaders must adjust in order to maintain
a strong market standing, and IMC programs can assist in this
effort. New levels of competition drive marketers to better under-
stand their customers and be certain those end users are hearing
a clear and consistent message from the firm. As consumers
develop a stronger sense of brand parity, whereby no real dif-
ferences in product–service quality are perceived, marketers
must recreate a situation in which their brand holds a distinct
economies of scale in production while creating a global product using the same pro-
motional theme. The language would be different, but the basic marketing message
would be the same.
The second approach to global marketing was called adaptation. Products and
marketing messages were designed for and adapted to individual countries. Thus, the
manner in which a product was marketed in France was different than in Italy, India,
or Australia.
The GIMC approach is easier to apply when a company relies on the standardization
method; however, GIMC can and should be used with either adaptation or standardiza-
tion.
15
To reduce costs, careful coordination of marketing efforts should occur across
countries. Even when a firm uses the adaptation strategy, marketers from various coun-
tries can learn from each other. Members of the marketing department should not feel like
they have to reinvent the wheel. Synergy can occur between countries. More importantly,
learning can occur. As telecommunications continue to expand, contacts between peoples
of different countries are much more frequent.
Remember, a commercial targeted for customers in France may also be viewed by
citizens of Spain because of satellite technologies. Therefore, a company should try to
transmit a consistent theme, even when there are differences in local messages. In terms
of marketing, the philosophy many companies use is “market globally, but act locally.”
When marketers design or encode messages for local markets, they need to have the free-
dom to tailor or alter the message so that it fits the local culture and the target market.
Thus, although Pepsi portrays a global image around a theme of “Generation Next,” the
final message conveyed to each country often varies. Development of a GIMC is the final
extension to an IMC plan. With its completion, companies are able to compete more
effectively both at home and abroad.
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22 Part 1 The IMC Foundation
K E Y T E R MS
communication Transmitting, receiving, and processing infor-
mation.
senders The person(s) attempting to deliver a message or idea.
encoding The verbal (words, sounds) and nonverbal (gestures,
facial expressions, posture) cues that the sender utilizes in dis-
patching the message.
transmission devices All of the items that carry the message
from the sender to the receiver.
decoding Takes place when the receiver employs any set of his
or her senses (hearing, seeing, feeling) in the attempt to capture the
message.
receivers The intended audience for a message.
noise Anything that distorts or disrupts a message.
clutter Exists when consumers are exposed to hundreds of mar-
keting messages per day, and most are tuned out.
feedback Information the sender obtains from the receiver regard-
ing the receiver’s perception or interpretation of a message.
integrated marketing communications (IMC) The coordina-
tion and integration of all marketing communication tools, avenues,
and sources within a company into a seamless program that maxi-
mizes the impact on consumers and other end users at a minimal
cost. This affects all of a firm’s business-to-business, marketing
channel, customer-focused, and internally oriented communications.
marketing mix Consists of products, prices, places (the distrib-
ution system), and promotions.
brand parity Occurs when there is the perception that most
products and services are essentially the same.
contact points The places where customers may interact with
or acquire additional information about a firm.
standardization When a firm standardizes its products and
market offerings across countries with the goal of generating
economies of scale in production while using the same promo-
tional theme.
adaptation Occurs when products and marketing messages are
designed for and adapted to individual countries.
R E V I E W Q U E S T I O NS
1. Define communication. Why does it play such a crucial role in
business?
2. What are the parts of an individual communications model?
3. Who are the typical senders in marketing communications?
Who are the typical receivers?
4. Name the transmission devices, both human and nonhuman,
that carry marketing messages. How can the human element
become a problem?
5. Define clutter. Name some of the forms of clutter in marketing
communications.
6. Define integrated marketing communications.
7. What are the four parts of the marketing mix?
8. What steps are required to write a marketing plan?
9. Describe a promotions opportunity analysis.
10. Describe firm and brand image.
11. What are the three main components of advertising?
12. Why has the growth of information technology made IMC
programs so important for marketing efforts?
13. What reasons were given to explain the growth of IMC plans
and their importance?
14. What is channel power? How has it changed in the past few
decades?
15. What is brand parity? How is it related to successful marketing
efforts?
16. What is a GIMC? Why is it important for multinational firms?
17. What is the difference between standardization and adaptation
in GIMC programs?
18. How has the job of an advertising account executive changed?
How has the job of a creative changed? How has the job of a
brand manager changed? How do the three jobs interact in this
new environment?
advantage over others. This is difficult, because consumers now
can collect and integrate information about products from a wide
variety of sources, including technological outlets (Internet Web
sites) and interpersonal (sales reps) sources. Quality IMC pro-
grams help maintain the strong voice companies need to be cer-
tain their messages are heard. An additional challenge is the
decline in effectiveness of mass-media advertising. IMC helps
company leaders find new ways to contact consumers with a uni-
fied message.
When a firm is involved in an international setting, a GIMC, or
globally integrated marketing communications system, can be of
great value. By developing one strong theme and then adapting
that theme to individual countries, the firm conveys a message that
integrates international operations into a more coherent package.
Most of this text explains the issues involved in establishing
an effective IMC program. The importance of business-to-
business marketing efforts is noted, because many firms market
their wares as much to other companies as they do to con-
sumers. Successful development of an IMC program should
help firms remain profitable and vibrant, even when the com-
plexities of the marketplace make these goals much more diffi-
cult to reach.
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Chapter 1 Integrated Marketing Communications 23
C R I T I C A L T H I NK I NG E X E R C I S E S
Discussion Questions
1. The marketing director for a furniture manufacturer is
assigned the task of developing an integrated marketing com-
munications program to emphasize the furniture’s natural
look. Discuss the problems the director may encounter in
developing this message and in ensuring that consumers
understand the message correctly. Refer to the communication
process in Figure 1.1 for ideas. What kind of noise may inter-
fere with the communication process?
2. Referring to Exercise 1, assume the director wants to develop
an integrated marketing communications program emphasiz-
ing a theme focused on the furniture’s natural look. This theme
applies to all of their markets, that is, both retailers and con-
sumers. Using Figure 1.5 as a guide, briefly discuss each ele-
ment of the integrated marketing communications plan and
how to incorporate it into an overall theme.
3. The marketing director for a manufacturer of automobile tires
wants to integrate its marketing program internationally.
Should the director use a standardization or adaptation
approach? How could the company be certain that its market-
ing program will effectively be integrated among the different
countries where it sells tires?
4. Hewlett-Packard’s IMC theme is “we understand.” Do you
think this conveys a clear message about the company’s opera-
tions in the software industry?
5. Reebok is moving away from direct competition with other
companies in the athletic shoe market. Instead, the goal is to
position the shoes as being cutting-edge fashion. Do you think
this is a wise move? What kinds of problems or obstacles
could this repositioning effort encounter?
I NT E G R AT E D L E A R NI NG E X E R C I S E S
1. Ron Jon Surf Shop is probably the best known retail store
brand for ocean gear in Florida. In Hawaii, the dominant
name is Hilo Hattie. Go to the Hilo Hattie Web site at
www.hilohattie.com. Compare it to the Ron Jon site at
www.ronjons.com. Do the two sites have relatively common
themes? Which is the more attractive site? Why?
2. How do marketing experts integrate advertisements with
Web sites? Access each of the following company sites.
Compare the appearance and content of the Web sites to the
four shoe advertisements on page 6 of this chapter. Also,
compare the sites to other ads you have seen for each of the
four brands.
a. Reebok (www.reebok.com)
b. ASICS (www.asics.com)
c. New Balance (www.newbalance.com)
d. Skechers (www.skechers.com)
3. Find each of the following companies on the Internet. For each
company, discuss how effective its Web site is in communicating
an overall message. Also, discuss how well the marketing team
integrates the material on the Web site. How well does the Web
site integrate the company’s advertising with other marketing
communications?
a. Revlon (www.revlon.com)
b. J.B. Hunt (www.jbhunt.com)
c. United Airlines (www.united.com)
d. Steamboat Resorts (www.steamboatresorts.com)
4. Information is one key to developing a successful integrated
marketing communications program. Access each of the fol-
lowing Web sites and examine the information and news avail-
able on each site. How would this information help in develop-
ing an integrated marketing campaign?
a. Brandweek (www.brandweek.com)
b. Adweek (www.adweek.com)
c. Mediaweek (www.mediaweek.com)
d. Branding Asia (www.brandingasia.com)
S T U D E NT P R O J E C T
IMC Plan Pro
Are you interested in becoming an award-winning advertiser?
Help is available. A supplement package called “IMC Plan Pro”
is designed to help students create an entire advertising and
communications program. A disk is part of the package. The
booklet and disk will guide you through the entire process. The
authors of this textbook developed the IMC Plan Pro package,
which means the materials match the topics presented in the
upcoming chapters.
The advertisement shown here promoting the annual Student
ADDY Awards competition, as sponsored by the American
Advertising Federation, was designed by a creative at French
Creative Advertising Agency. This advertisement won an ADDY
at the Monroe, Louisiana, advertising competition. With some
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24 Part 1 The IMC Foundation
hard work, creativity, and help, it is possible that next
year’s winning ad in the student competition will be
the one you designed. Ask your instructor about the
Student ADDY Awards sponsored by the American
Advertising Federation and what you can do to enter.
Also, ask the instructor how to obtain the IMC
Plan Pro booklet and disk, or log onto the Prentice Hall
Web site at www.prenhall.com, or e-mail Kenneth
Clow at [email protected]. The best way to be prepared
for a job when you graduate is to develop your creative
talent now.
NOT AVAILABLE FOR
ELECTRONIC VIEWING
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C A S E 1
R
achel Peterson knew she faced several major challenges as she took
the job of marketing director for CableNOW. The company was the sole
cable provider for six communities in northeast Louisiana. All of the
cities were essentially “licensed monopolies,” in the sense that no other
cable company could compete within the city limits. In spite of this edge,
however, competition was becoming a major problem.
Satellite television was the primary competitor for CableNOW’s cus-
tomers. Both DirecTV and the Dish Network had set up operations in the six
communities. The two providers were able to charge lower prices for basic
services. They had also started to compete by offering price reductions on
installations. This made switching from cable to satellite much easier for
local residents.
CableNOW’s primary selling point was in the delivery of programming
during bad weather. Thunderstorms and snowstorms completely disrupt a
satellite signal. Severe weather is common in that part of Louisiana. The
same weather events do not affect a cable picture. CableNOW also held a
competitive advantage because the company offered local business and
real estate listings to subscribers. The firm also was able to provide local
radar and weather forecasts during the “Local on the 8s” segments on the
Weather Channel. The satellite companies could not provide these special
options.
When Rachel took the job, she knew another issue was about to unfold.
CableNOW had been able to transmit each city’s local channels as part of
the basic cable package. Until this year, the satellite companies could not.
Dish Network was changing the mix. Dish Network had just signed a con-
tract to provide the local stations to subscribers. DirecTV did not, but did
offer a greater number of channels in the company’s basic package.
The final piece of this changing landscape was changing technology. It
was becoming clear that HDTV (high definition television) was the future.
CableNOW had not yet developed the capacity to deliver high definition sig-
nals. Both DirecTV and the Dish Network had this capability. It was going to
take a substantial investment to make the change at CableNOW. As a result,
Rachel knew she had her work cut out as the marketing department strug-
gled to maintain its market share in each city.
1. What image or theme should CableNOW portray to subscribers?
2. Can you think of a way to emphasize the advantages CableNOW has
in an advertising campaign?
3. Do you believe CableNOW will survive these changes over the next
10 years? Why or why not?
Chapter 1 Integrated Marketing Communications 25
THE CABLE
COMPANY
C A S E 2
C
raft-tech Technologies was on the verge of a major expansion. The
company’s management team invested heavily in compact disk tech-
nology and created what they believed was a viable product for the mini-
CD marketplace. Company leaders were certain that mini-CDs soon would
outsell the traditional-size version, giving them inroads into numerous
markets, including the:
? Music industry
? Computer industry
? CD player market (both Walkman and larger versions for home use)
MARKETING
MINI-CDS
(continued)
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The company’s president, Merv Watson, contacted a full-service adver-
tising agency. Merv asked the agency manager, Susan Ashbacher, to
describe the meaning of full service. Susan responded, “We will take care of
every aspect of your company’s integrated marketing communications pro-
gram. We’ll either prepare the material ourselves, or outsource it and man-
age the process.”
Merv was still confused. “What exactly does that mean?” he asked.
Susan handed him a worksheet (Figure 1.10). She responded, “We will
sit down with you and figure out your company’s primary message. Do you
want to represent yourself as a high-quality leader in technology? Or is your
focus more toward this particular product, and how you serve that niche bet-
ter than anyone else? What we’ll ask you to do is define yourself, and then
we’ll help you develop a marketing program to get that message out.”
Merv studied the worksheet. He was amazed to see all of the items
listed. Noting his interest, Susan said, “Every single thing on that page
should speak with the same voice. Every one of your customers, from busi-
nesses to end users, should know your main message. Your customers
should buy from you because they have confidence in your brand. We want
to make sure you stand out. After all, it’s pretty crowded out there in the
world of technology.”
Merv hired Susan, and the process began. The IMC program was to
integrate a marketing plan to other businesses, individual users, and inter-
national markets.
1. What image or theme should Craft-tech Technologies portray?
2. Design an IMC approach and state how it will affect all of the items
shown in Figure 1.10.
3. Choose another good or service. Consider every IMC aspect of that
good or service as you read the following chapters.
26 Part 1 The IMC Foundation
? Company logo
? Product brand name and company name
? Business cards
? Letterhead
? Carry home bags (paper or plastic)
? Wrapping paper
? Coupons
? Promotional giveaways (Coffee mugs,
pens, pencils, calendars)
? Design of booth for trade shows
? Advertisements (billboards, space used
on cars and busses, television, radio,
magazines, and newspapers)
? Toll-free 800 or 888 number
? Company database
? Cooperative advertising with other
businesses
? Personal selling pitches
? Characteristics of target market buyers
? Characteristics of business buyers
? Sales incentives provided to salesforce
(contests, prizes, bonuses, and
commissions)
? Internal messages
? Company magazines and newspapers
? Statements to shareholders
? Speeches by company leaders
? Public relations releases
? Sponsorship programs
? Web site
FIGURE 1.10
Items to Be Included
in an IMC Program
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Chapter 1 Integrated Marketing Communications 27
E ND NO T E S
1. Ron Jon Surf Shop (www.ronjons.com, accessed February 22,
2005); Donald Baack, “Ron Jon’s Surf Shop: Brand Building in a
No Name Marketplace,” IMC Communique (Spring 2005), p. 5.
2. Diane Brady, “Making Marketing Measure Up,” BusinessWeek
(December 13, 2004), pp. 112–113.
3. Donald Baack, “Communication Processes,” Organizational
Behavior, Chapter 13 (1998), pp. 313–37.
4. James G. Hutton, “Integrated Marketing Communications and
the Evolution of Marketing Thought,” Journal of Business
Research 37 (November 1996), pp. 155–162.
5. Don Schultz, “Invest in Integration,” Industry Week 247, no. 10
(May 18, 1998), p. 20; “Integrated Marketing Communications,”
Consortium Benchmarking Study, American Productivity &
Quality Center (1999).
6. Ibid.
7. Lauren Keller Johnson, “Harnessing the Power of the Customer,”
Harvard Management Update 9 (March 2004), pp. 3–5; Patricia
Seybold, The Customer Revolution, London: Random House
Business Books.
8. “Global Internet Retail: Industry Profile,” Datamonitor
(May 2004), p.10.
9. Tammy Mastroberte, “Cool Control,” Convenience Store News
38, no. 8 (July 14, 2003), pp. 49–53.
10. David J. Lipke, “Pledge of Allegiance,” American Demographics
22, no. 11 (November 2000), pp. 40–42.
11. Debbie Howell, “Today’s Consumers More Open to Try New
Brands,” DSN Retailing Today 43, no. 20 (October 25, 2004),
pp. 29–32.
12. Sandy Brown, “Study: DVR Users Skip Live Ads, Too,”
Brandweek 45, no. 37 (October 18, 2004), p. 7; Jennifer Lach,
“Commercial Overload,” American Demographics 21, no. 9
(September 1999), p. 20.
13. Don E. Schultz and Philip J. Kitchen, “Integrated Marketing
Communications in U.S. Advertising Agencies: An Exploratory
Study,” Journal of Advertising Research (September–October
1997), pp. 7–18.
14. Stephen J. Gould, Dawn B. Lerman, and Andreas F. Grein,
“Agency Perceptions and Practices on Global IMC,” Journal of
Advertising Research (January–February 1999), pp. 7–26.
15. Ibid.
16. Laura Petrecca, “Agencies Urged to Show the Worth of Their
Work,” Advertising Age 68, no. 15 (April 14, 1997), pp. 2–3;
Joseph A. Tradii, “Get the Most from Your Agency,” Marketing
News 28, no. 22 (October 24, 1994), p. 4; Pete Millard, “Gauging
Ad Success: Bean Counters Eclipse Agency Creatives,” Business
Journal Serving Greater Milwaukee: Marketing Resource Guide
14, no. 29 (April 18, 1997), p. 4; Robert L. Gustafson, “Better
Leaders Make Better Account Execs,” Indianapolis Business
Journal 16, no. 15 (March 4, 1996), p. 15; John Bissell, “Agency
Creatives: A Strategic Resource?” Brandweek 39, no. 19
(May 11, 1998), p. 18.
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