Study on Measuring Integrated Marketing Communications

Description
This concept of IMC enables adequate tendencies accompaniment in the modern business conditions, which deal with Internet application in business activities, globalization and brand image importance. Author then analyses advantages and disadvantages of basic communication instruments in marketing.

FACTA UNIVERSITATIS
Series: Economics and Organization Vol. 1, N
o
8, 2000, pp. 87 - 93
SOME ASPECTS OF MEASURING
INTEGRATED MARKETING COMMUNICATIONS (IMC)

UDC 658.8:659.1
Hristo Ivanov Katrandjiev
Department "Marketing and Strategic planning"
University for National and World Economy, Sofia, Bulgaria
Abstract. Author deals with a new trend in marketing - combining different
communication instruments, as promotion, public relations, sale promotion, personal
selling, Internet communication. This concept of IMC enables adequate tendencies
accompaniment in the modern business conditions, which deal with Internet application
in business activities, globalization and brand image importance. Author then analyses
advantages and disadvantages of basic communication instruments in marketing. In
measuring IMC, author emphasizes that main difference between this and traditional
communications is functional oriented activities (connected with mass medias). At the end,
the author analyses time aspect of measuring IMC, and main characteristics of
controllable and uncontrollable communications.
1. REASONS FOR ACCEPTING IMC
In the good old days, not so log ago, the marketing world belonged to advertising.
Advertising had a big effect, because it was easy to generate high reach by advertising in
popular media vehicles.
In recent days, this picture considerably changed. Media have fragmented, making it
very difficult to achieve high reach. The following section will try to analyze the basic
trends [1] that are challenging the ways many companies conduct business today.
1.1. Technology and the Internet
Technology touches every part of our lives making our world faster, smarter and more
mobile than ever. Amidst the proliferation of online businesses, the Internet has made
online business models and offerings transparent. Such transparency has two key results.
First, competitive advantages historically enjoyed by companies have diminished. Prod-
ucts and technologies that were once unique can be now duplicated within months, while


Received April 10, 2001
H. IVANOV KATRANDJIEV 88
services can be copied within days or even hours. Second, because of a Web site, there is
a single source of company's information for all, message inconsistencies are more easily
discovered. If outgoing messages do not align with product or service offerings, a com-
pany's brand is jeopardized.
Just as Internet technology has leveled the competitive playing field by providing a
window into the competition's strategy, technology has also placed the power of informa-
tion in the customer's hands. Today, customers are more knowledgeable and demanding
than ever of marketplace conditions. They are able to research product attributes, investi-
gate competitors' offerings and compare prices.
While technology gives increased power to competitors and consumers, the same
technology also enables the principles of IMC to operate on new levels. Mechanisms for
two-way communication are more efficient and fluid than ever. By using technology to
support IMC concepts, companies have ability to exceed customer expectations and out-
smart the competition.
1.2. Globalization
As transaction capabilities are advanced by technology, the geographic boundaries of
trade are beginning to disappear. Additionally, global trade agreements between countries
have created a windfall of economic opportunity. Global mergers and acquisitions are
developing every day. Global networks, both technological and organizational, are con-
necting organizations in all parts of the world. Driven by the first truly global companies
and supported by trade agreements, globalization is here to stay. This high degree of con-
solidation and global connectivity creates a need for global communication strategies. As
different cultures, ideas, currencies and economic ideals converge, it is necessary that the
strategies behind global organizations are consistent around the world and across the
board.
But companies cannot ignore unique attributes of different cultures. Analysts suggest
that in order to globalize, companies must attempt to localize globally. In these condi-
tions, the task of marketing communications is to carry understandable and harmonic
messages. The usage of different communication tools has to be planned as an integrated
campaign.
1.3. Importance of brand's image
In contrast to business in the past, today's marketplace puts a much higher value on
intangible assets. Companies such as Microsoft, Coca-Cola, and McDonald's have capi-
talized market values that correspond with their intangible capital, rather than hard goods
produced or manufactured. The significance of brand equity is rising because a high level
of brand equity means a high level of loyal customers. That's why the value of the brand
name is a key factor for marketing success. The leading managers know that, and they try
to reach two "conflicting" goals: first, to achieve considerable sales' volume (usually by
sales promotion) and second, to build a strong brand's image. The way of reaching these
goals is called integrated marketing communications.
Some Aspects of Measuring Integrated Marketing Communications (IMC) 89
2. IMC - DEFINITION AND ILLUSTRATION
2.1. What is IMC?
Two years ago Wrigley Company developed an integrated communication program
with tremendous effect from the point of view of the costs and time devoted to this cam-
paign. Launched in January 1998 in UK, with the publication of a report. "Oral Health
and Sugarfree Gum" the program cost the company about -pounds- 500,000 over the first
18 months. By raising awareness of the role of saliva in dental health, it aims to persuade
the dental profession to recommend the benefits of sugarfree chewing gum. Elements in
the program include advertising in the trade press, a patient education action pack, a
quarterly magazine, leaflets and posters. Orbit for Children, the UK's first kids' dental
care gum, was launched with an ad in the dental press with an attached sample. Simulta-
neously, a dental student handbook was sponsored.
The posttests registered amazing results: 73% of dentists "always" or "frequently"
recommend sugarfree gum to patients, up from 44% in the pretests.
The example above is a brilliant illustration of a new trend in the world of marketing -
combining different communication instruments (advertising, public relations, sales pro-
motion, personal selling, Internet communication, etc.) in a solid integrated campaign.
Developing an integrated communication program helps using the advantages of some
communication tools for compensating the disadvantages of others. The scientific re-
searches, as well as the practice, undoubtedly prove that the integrated planning and im-
plementing of the communication programs is far more effective than their separate usage.
2.2. Advantages and disadvantages
of the major marketing communication tools
The major communication tools in marketing are advertising, public relations, sales
promotion, personal selling, direct marketing. Some authors also include product de-
sign/package, point-of-purchase displays, Internet communication, etc
Advertising is a very important tool on the earlier stages of the response hierarchy
models. Due to its public presentation, persuasiveness and amplified expressiveness, ad-
vertising campaigns can help reaching high levels of awareness about the product, the
brand or the company. Also advertising could be successful in building a long-term image
for a brand (such as Absolute, Coca-Cola, etc.) Advertising is cheaper than sales promo-
tion and more expensive than public relations, but often evokes negative feelings (such as
annoyance, anger, distrust, etc.).
Sales promotion campaigns offer a distinctive purchase invitation. This sort of pro-
grams also offer some kind of stimulus (discount, free sample, etc.). They are preferable
in the cases of new product launching, sales stagnation, etc. But, the effects of sales pro-
motion are usually short run and do not build long run brand preference.
The major characteristics of public relations are: high credibility, off guard, and
dramatization. People accept the PR campaigns as news, not as paid publication. That's
why they trust to PR messages. The basic problems of the PR campaigns are connected
with the low level of control on what, where, and when is said.
The direct marketing approach is based on databases containing the names and char-
acteristics of potential customers. As a result, the direct marketing offer greater possibili-
H. IVANOV KATRANDJIEV 90
ties for message adaptation. Target audience selection is far more precise, as well as the
measurement of the effectiveness of database programs. But this communication tool is
the most expensive (in the context of fast moving consumer goods).
Combining the marketing communication tools in a solid and well-balanced campaign
is more effective. The integrated marketing communication programs give chance to low-
budget campaigns. Due to their increased impact, these integrated programs are suitable
in low-growth economies. One of the difficulties concerning the implementation of the
integrated method is the measurement aspect. Some guidelines for measuring IMC will be
suggested in the next paragraphs.
3. DIFFERENCES IN MEASUREMENT CONCEPTS
The main difference between the IMC and the traditional, functionally oriented activi-
ties (particularly those of mass media advertising) is that IMC must, in some way, impact
the behavior of the target audience. It does not mean that functional activities such as ad-
vertising, sales promotions, direct marketing, and public relations do not influence be-
havior. In fact they do, especially direct marketing and sales promotion. The major differ-
ence is that IMC is planned, developed, executed, and evaluated with affecting one spe-
cific consumer behavior in mind, the process of making purchase now or in future.
Announcement
Descriptive copy
Classified ads
Slogans
“Image” copy
Status, glamour
appeals
Teaser advertising
Competitive ads
Argumentative copy
Point-of-purchase
Retail store ads
“Last chance” offers
Price appeals
Testimonials
Example of types of
promotion or
advertising relevant
to various steps
Movement
toward purchase
Related behavioral
dimensions
Conative:
The realm of motives.
Ads stimulate
or direct desires
Affective:
The realm of emotions.
Ads change attitude
and feelings.
Cognitive:
The realm of thoughts.
Ads provide
information and ads.
Knowledge
Liking
Preference
Conviction
Awareness
Purchase
Fig. 1. Different starting point of the measurement process
Some Aspects of Measuring Integrated Marketing Communications (IMC) 91
3.1. Database
The database is in the center of IMC. This means accumulation of lots of data and lots
of information. The data are stored, examined, and evaluated through various forms of
database analysis. This process differentiates IMC from traditional, functional marketing
communications. IMC starts with the outside-in view. In other words it means to under-
stand what the consumer is doing or has done and to explain why thIs behavior exists.
From the point of view of IMC, behavior is any measurable activity by the customer or
prospect that either (1) moves the person closer to a purchase decision or (2) reinforce
sthe presently favorable buying patterns that already exist.
The common approach of many managers is starting at what they perceive to be the
beginning of the communication process - message delivery. They believe this is the pro-
cess of forming attitudes. According to this proposition message delivery and attitude
formation lead to knowledge, preference, conviction, and finally, to purchasing behavior.
This basic model is known as the "Hierarchy of Effects" model developed by Lavidge and
Steiner (4, p. 6). In fact, this is a one-way, linear approach. It means that the marketer
sends out the message (hoping it would be received) and then tries to measure the effect.
The sender usually assumes that his message is responsible for any change in the commu-
nication process. But the marketer's message is not the only one in the market-space and
is hard to assume that it could always move the consumer through the process.
Finally, in most cases little or no effort is made to measure the actual behavior that oc-
curs as a result of the communication program.
Due to technology changes, it is nowadays possible (in many cases) to measure actual
consumer behavior through scanner panels, electronic marketing, two-way communica-
tion channels, and advanced direct marketing techniques. It is technology that makes IMC
possible. In the context of IMC, the goal is to get as close as possible to actual buying
behavior. "Thus we start at the other end of the communications "hierarchy of effects",
with behavior. Then we try to explain that behavior as a result of communication expo-
sure which resulted in attitude, brand, or category network changes" (5, pp. 105-156).
Behavior Commitment
Brand
relationships
Attitudes
Network
brand and
category
Transactions
Partial
transactions
Affiliations Attitudes Network
Fig. 2.
In IMC, the actual purchase behavior is called transaction [5, pp. 105-156]. When this
behavior cannot be measured, the marketer may examine other consumer's commitment -
visiting a dealer, requesting a brochure, or calling for more information. This kind of be-
havior is called a partial transaction [5]. If it cannot be measured then the marketer may
go to the next level of behavior - brand relationship. This is some kind of relationship or
past affiliation the customer may have had with the brand or the category. For example,
being a former brand user, or being a user the overall product category, or having an af-
filiation with the brand (such as being a coffee drinker, a gamer, or a new mother). If no
H. IVANOV KATRANDJIEV 92
measurable relationship exists, the next step back up the purchasing process would be to
attitudes. If the marketer understands the prospect's attitudes he or she might be able to
explain some of the preceding behaviors. The last measurement attempt is to understand
the brand and category networks that the customer has developed that relate to the brand.
3.2. IMC is a circular process
Marketing communication is a circular, not a linear process. There is no doubt that at-
titudes influence behavior, but it's also true that behavior influences attitudes. If a con-
sumer has a good experience with a brand, this experience either reinforces the positive
network that existed before it or it caused the consumer to change the previous network
and attitude. The major difference between IMC measurement and traditional one-way,
linear mass communication program, is that the behavior of the prospect is a vital factor
in developing the next wave of IMC programs. The concept of IMC means a long-term
synchronization of messages and campaigns.
4. GUIDELINES FOR MEASURING INTEGRATED MARKETING COMMUNICATIONS
The measurement of IMC starts with the actual purchase and moves back the pur-
chase decision until a measurable point is found. Therefore, measurement concepts should
be built into the planning process. When developing an IMC plan, the marketer should
define the brand contact that is needed. Then he or she should anticipate the result of the
brand contact. If the contact is through direct marketing, an actual purchase may be the
measurable behavior. If television advertising is in use, then the objective might be a
change in attitudes.
4.1. Measurement over time
Traditionally, marketing people measure only a single point in time - when the mes-
sage is delivered or shortly thereafter. In the context of IMC programs, there is a need to
understand how the communication program impacts the consumer's behavior at several
points in a period of time. In other words the marketer must know the communication
history of the customer in addition to the delivered message.
4.2. Controllable and uncontrollable communications
A basic characteristic of IMC planning is the expansion of the concept of communica-
tions. In fact every contact a consumer has with the brand is a form of communication. It
includes the design of the packaging; the way the product is displayed in the supermarket,
the product placement (BMW Z3 in "Agent 007"), etc. Some forms of communication are
under the control of the marketer. Controllable communications are the following: mar-
keter's advertising, marketer's sales promotion, marketer's public relation, marketer's
direct marketing, packaging, sales force presentations, events, "hot" telephone numbers,
and company customer service.
But many other communication elements exist, and the marketer has little or no con-
trol over these elements. The uncontrollable communications are: competitor's advertis-
ing, competitor's sales promotion, competitor's public relations, competitor's direct mar-
Some Aspects of Measuring Integrated Marketing Communications (IMC) 93
keting, retailer's signage, retailer's display, media reports, consumer comments, users'
experiences, and retailer customer service [5].
The key to a successful integrated marketing communications program knows which
communication elements can be controlled and which cannot. So, the basic rule of IMC
measurement is that a very broad view of communications must be taken. The marketer
must assess which communications are unfavorable or undesirable and which are favor-
able.
REFERENCES
1. Gonring, Matthew P., Global Megatrends Push IMC Concepts to Forefront of Strategic Business,
Journal of Integrated Communications, 2000-2001.
2. ???????? ?. ???????? ? ???? ?? ??????? ???????? ?????, ?????????????? ???????????
"??????????", ???. 21-29.
3. ?????, ?????? ?., ?????, ?., ??????, ??. ???????? ??????????, ????? ???????, ??????,
?????-?????????, ????, 1999. ???. 311-338.
4. Lavidge, Robert J., Steiner, Gary A., Journal of Marketing, October, 1961, pp. 61.
5. Schultz, Don E., Tannenbaum, Stanley I., Lauterborn, Robert, F., The new marketing pradigm:
integrated marketing communications, NTC Business, Books, 1994, pp. 105-156.
NEKI ASPEKTI MERENJA INTEGRISANIH MARKETING
KOMUNIKACIJA (IMK)
Hristo Ivanov Katrandjiev
Autor ukazuje na novi trend u marketingu - kombinovanje razli?itih oblika komuniciranja, kao
što su propaganda, odnosi s javnoš?u, unapredjenje prodaje, li?na prodaja, komunikacija putem
interneta. Ovaj koncept integrisanih marketing komunikacija omogu?ava adekvatno pra?enje
tendencija u savremenim uslovima poslovanja koje se odnose na primenu internet tehnologije u
poslovnim aktivnostima, globalizaciju i zna?aj imidža marke. U pogledu merenja integrisanih
markeing komunikacija autor naglašava da je osnovna razlika ovih komunikacija u odnosu na
tradicionalne, u funkcionalno orijentisanim aktivnostima (vezane uglavnom za sredstva masovnih
medija). Na kraju se analizira vremenski aspekt merenja integrisanih marketing komunikacija, kao
i osnovne karakteristike kontrolabilnih i nekontrolabilnih komunikacija.

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