Integrated Marketing Communications The holistic approach The Chartered Institute of Marketing/Butterworth-Heinemann Marketing Series is the most comprehensive, widely used and important collection of books in marketing and sales currently available worldwide. As the CIM’s official publisher, Butterworth-Heinemann develops, produces and publishes the complete series in association with the CIM. We aim to provide definitive marketing books for students and practitioners that promote excellence in marketing education and practice. The series titles are written by CIM senior examiners and leading marketing educators for professionals, students and those studying the CIM’s Certificate, Advanced Certificate and Postgraduate Diploma courses. Now firmly established, these titles provide practical study support to CIM and other marketing students and to practitioners at all levels. Formed in 1911, The Chartered Institute of Marketing is now the largest professional marketing management body in the world with over 60,000 members located worldwide. Its primary objectives are focused on the development of awareness and understanding of marketing throughout UK industry and commerce and in the raising of standards of professionalism in the education, training and practice of this key business discipline. Books in the series Below-the-line Promotion, John Wilmshurst The CIM Handbook of Export Marketing, Chris Noonan The CIM Handbook of Selling and Sales Strategy, David Jobber The CIM Handbook of Strategic Marketing, Colin Egan and Michael J. Thomas CIM Marketing Dictionary (fifth edition), Norman A. Hart Copywriting, Moi Ali Creating Powerful Brands (second edition), Leslie de Chernatony and Malcolm McDonald The Creative Marketer, Simon Majaro The Customer Service Planner, Martin Christopher Cybermarketing, Pauline Bickerton, Matthew Bickerton and Upkar Pardesi The Effective Advertiser, Tom Brannan Integrated Marketing Communications, Ian Linton and Kevin Morley Key Account Management, Malcolm McDonald and Beth Rogers Market-led Strategic Change (second edition), Nigel Piercy The Marketing Book (third edition), Michael J. Baker Marketing Logistics, Martin Christopher The Marketing Manual, Michael J. Baker The Marketing Planner, Malcolm McDonald Marketing Planning for Services, Malcolm McDonald and Adrian Payne Marketing Plans (third edition), Malcolm McDonald Marketing Research for Managers (second edition), Sunny Crouch and Matthew Housden Marketing Strategy (second edition), Paul Fifield Practice of Advertising (fourth edition), Norman A. Hart Practice of Public Relations (fourth edition), Sam Black Profitable Product Management, Richard Collier Relationship Marketing, Martin Christopher, Adrian Payne and David Ballantyne Relationship Marketing for Competitive Advantage, Adrian Payne, Martin Christopher, Moira Clark and Helen Peck Retail Marketing Plans, Malcolm McDonald and Christopher Tideman Royal Mail Guide to Direct Mail for Small Businesses, Brian Thomas Sales Management, Chris Noonan Trade Marketing Strategies, Geoffrey Randall Forthcoming Relationship Marketing: Strategy and Implementation, Helen Peck, Adrian Payne, Martin Christopher and Moira Clark Services Marketing, Colin Egan Integrated Marketing Communications The holistic approach Tony Yeshin BSc(Econ), MCIM Published in association with The Chartered Institute of Marketing OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI To my family for all their support during the preparation and development of this textbook, and to the memory of my parents. Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 225 Wildwood Avenue, Woburn, MA 01801–2041 A division of Reed Educational and Professional Publishing Ltd A member of the Reed Elsevier plc group First published 1998 © Tony Yeshin 1998 All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 0 7506 1923 6 Composition by Genesis Typesetting, Rochester, Kent Printed and bound in Great Britain Contents Preface xiii Acknowledgements xv Part One 1 Marketing communications – an overview 3 Aims and objectives 3 The changing nature and role of marketing communications 3 A brief historical perspective 3 The background to marketing communications 4 The growth of marketing communications 6 Blurring of the edges of the tools of marketing communications 8 The strategic challenges facing organizations 9 Strategic marketing communications 11 The expanded marketing communications mix 11 The communications process 12 Achieving integration within the communications mix 14 The philosophy and structure of the book 15 References 15 Additional reading 15 2 Understanding the marketplace 16 Aims and objectives 16 The dimensions of consumer and organizational buying behaviour 16 The consumer market 16 The changing consumer 19 Targeting 20 Positioning 21 Understanding consumer behaviour 21 Organizational buying behaviour 25 The contribution of market research 27 References 34 Additional reading 34 vi Contents 3 Product and service strategies 36 Aims and objectives 36 Managing products and services over the life cycle 36 Branding definitions 37 Strategic importance of branding 38 Strategic brand building 39 The dimensions of branding 39 Branding strategy 44 Brands and consumer perceptions 46 Identifying and building brand values 49 Altering brand imagery 51 The strategic value of brand extensions and brand stretch 53 The roles of marketing communications in branding 55 The challenges facing brands 58 Service brands 64 References 65 Additional reading 66 4 The integration of marketing communications 67 Aims and objectives 67 The impact of external factors on marketing communications 69 The driving forces behind the growth of IMC 73 The impact on marketing communications 74 Relationship marketing 74 The benefits of IMC 75 The process of achieving integration 76 Organizational approaches to integration 79 The barriers to integration 80 References 81 Additional reading 82 5 Managing the marketing communications mix 83 Aims and objectives 83 Organizing for marketing communications 83 The strategic dimension of human resources 84 The brand manager 84 Category management 85 The category manager 85 The use of agencies 86 Establishing the budget 87 Budgeting for integrated marketing communications 93 References 96 Additional reading 96 6 Choosing and using marketing communications agencies 97 Aims and objectives 97 The structure and roles of marketing communications agencies 97 The UK agency scene 97 Contents vii Agency structures 98 The advertising agency 99 Other services to the agency team 106 Other agency/consultancy structures 106 Regional agencies 107 The changing role of marketing communications 107 The agency/client relationship 109 Agency remuneration 110 The criteria for agency selection 113 References 115 Additional reading 115 Part Two 7 Advertising 119 Aims and objectives 119 The diverse nature of advertising 119 The functions of advertising 120 The advantages and limitations of advertising 122 Types of advertising 123 The advertising process 124 Understanding the advertising process 126 The strategic aspects of advertising planning 130 Brand positioning 132 Implications for strategy development 134 Advertising strategy and the product life cycle 135 Determining the advertising objective 138 Developing the advertising plan 139 Business-to-business advertising 142 References 142 Additional reading 143 8 The development of advertising 144 Aims and objectives 144 The creative brief 144 Creative strategies and tactics 149 The creative challenge 150 Advertising appeals 152 Styles of advertising 153 Using celebrities 156 Music in advertising 157 Non-verbal communications 158 Creativity in advertising 158 Advertising and the brand personality 161 Guidelines for evaluating creative output 161 viii Contents Measuring advertising effectiveness and campaign evaluation 161 References 166 Additional reading 166 9 Media and media planning 168 Aims and objectives 168 The role of media planning 168 The changing face of the media 169 Access to media and their characteristics 171 The new media 174 The media plan 176 The importance of media strategy 178 Media information sources 179 Identifying target audiences 181 Strategic options 181 Media scheduling issues 182 Alternative approaches to media scheduling 185 Implementing the media plan 187 Other media considerations 188 Contingency planning 189 Evaluation of the media plan 189 The changing face of media implementation 190 References 191 Additional reading 191 10 Sales promotion 192 Aims and objectives 192 The growing role of sales promotion 192 The benefits of sales promotion 194 The limitations of sales promotion 195 The determination of objectives 196 Sales promotion objectives 197 Sales promotion strategy 199 Sales promotion techniques 200 Promoting to consumers 205 Brand franchise 206 Point of purchase communications 207 Strategic dimensions of sales promotion 207 Joint promotions (or cross promotions) 209 The evaluation of sales promotion 210 Research into sales promotion 213 The legal framework for sales promotion 215 The use of sales promotion agencies 216 Selecting promotional agencies 216 The integration of sales promotion activities 218 International sales promotion activity 218 References 218 Additional reading 219 Contents ix 11 Direct marketing 220 Aims and objectives 220 The growth of direct marketing 220 The impact of direct marketing 222 The factors contributing to the growth of direct marketing 222 The advantages of direct marketing techniques 224 The limitations of direct marketing 226 The importance of the database 227 The use of the database 230 The strategic approach to direct marketing 231 The objectives of direct marketing 231 Building relationships 233 The management of direct marketing 235 The planning process 235 Using direct marketing consultancies 237 The use of media 238 The use of market research in direct marketing 239 The use of testing in direct marketing 242 The application of direct marketing 243 Analysing direct marketing results 244 Business-to-business activity 245 Non-profit organizations 246 Relationship marketing 246 Integrating direct marketing 247 International direct marketing activity 248 References 248 Additional reading 249 12 Public relations 250 Aims and objectives 250 A comparison between public relations and advertising 251 Other benefits of public relations 252 The functions of public relations 254 The ’publics’ of public relations 256 The management of public relations 259 Using PR consultancies 260 In-house versus consultancy 261 PR campaign development 261 The identification of public relations problems and opportunities 262 Programme planning 263 Evaluation of public relations 264 The tools of public relations 264 Corporate public relations objectives 265 Financial public relations 266 Charity PR 267 Integration of PR activities 268 International aspects of public relations 268 References 268 Additional reading 269 x Contents 13 Sponsorship and product placement 270 Aims and objectives 270 Event management and business sponsorship 270 Product placement 278 References 280 Additional reading 280 14 Corporate communications 281 Aims and objectives 281 The growth of corporate activity 281 The growing importance of corporate communications 282 Corporate image and identity 283 The objectives of corporate communications 283 The communication of company image 286 The management of corporate communications 287 Audiences for corporate communications 289 The process of establishing a corporate identity 290 Types of corporate identity 291 Corporate communications 292 Measuring corporate communications 293 Key aspects of corporate communications 294 Crisis management: an important dimension of corporate communications 294 Key dimensions of crisis management 297 Handling a crisis 297 References 298 Additional reading 298 15 International marketing communications 299 Aims and objectives 299 The growth of international marketing 299 Multinational versus global marketing 299 The development of global brands 301 Global branding 301 Understanding the international consumer 305 Legal and regulatory requirements 310 Media availability and usage 311 The competitive environment 311 The move to global marketing communications 311 Central or local control of marketing communications 312 The merits and demerits of standardized communications 314 The development of multinational communications agencies 315 The selection of an agency for international business 318 International marketing and marketing communications strategy 320 The development of international advertising 320 The development of international sales promotion 322 The development of international public relations 323 The development of international direct marketing 323 The development of other international communications activities 325 International market research 325 Contents xi References 326 Additional reading 327 16 Future developments in marketing communications 328 Aims and objectives 328 Changes in the broad environment 328 The impact on the marketing function 331 The changing face of the communications industry 332 References 335 Additional reading 335 Glossary of terms 337 Index 345 This Page Intentionally Left Blank Preface This text has its origins in the workbook which I prepared for the Chartered Institute of Marketing for the Diploma paper Marketing Communications Strategy. Due to the inevita- ble constraints imposed on that work, I wanted to develop a specific and compre- hensive textbook examining the nature of marketing communications. This is the result. In a field as fast-moving as this, I have tried to reflect contemporary views as to the way in which the process works and the benefits of developing an understanding of integration. Whilst, I hope, soundly based upon academic theory, it also examines the real world applica- tions within the broad field of marketing communications. The focus remains the values of the brand and the contribution which marketing communications can make towards their development. To achieve that end, we need to develop an enduring under- standing of consumer behaviour, increasingly on an international basis, as brands expand their horizons far beyond national borders. The book is divided into two parts. The first section is designed to provide an over- view of the important dynamics of market- ing communications, an understanding of the consumer, an examination of the role of the brand and the process of developing, managing and integrating marketing com- munications. The second section provides an in-depth examination of the specific areas of the profession and the tools which are avail- able to the marketer. I hope that this book will be of interest to a variety of audiences, both those who are studying the subject as part of an academic programme, both at undergraduate and post- graduate level, as well as those who are embarking upon a career within the pro- fession. Whilst the debate surrounding inte- grated marketing communications continues, the imperative is the development of a real understanding of all of the tools which are available to the professional. Only with that understanding will the true potential of inte- gration begin to be realized. 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