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> >> > Integrated Marketing Communication StrategyIntegrated Marketing Communication Strategy
Integrated MarketingIntegrated MarketingIntegrated Marketing Integrated Marketing Communication:Communication:
from Tactic to Strategyfrom Tactic to Strategyfrom Tactic to Strategyfrom Tactic to Strategy
Olof HolmOlof Holm
Stockholm University School of Business, Stockholm, Sweden
IMC: form Tactic to StrategyIMC: form Tactic to Strategy
Purpose
To identify obstacles to further developing IMC
p
y p g
from tactics to strategy.
>> Integrated Marketing Communication Strategy
IMC: form Tactic to Strategy (IMC: form Tactic to Strategy (con’tcon’t))
Methodology
• A review of relevant literature during the 1990s
gy
g
• A study of four large Swedish companies.
>> Integrated Marketing Communication Strategy
IMC: form Tactic to Strategy (IMC: form Tactic to Strategy (con’tcon’t))
Introduction
• IMC became a real hot topic in the field of
• IMC has influenced thinking and acting among
marketing
• IMC has influenced thinking and acting among
companies, all facing the realities of competition
in an open economy.by Caywood et al., 1991; Miller and Rose, 1994; Kitchen and Schultz, 1997, 1998, 1999
>> Integrated Marketing Communication Strategy
Introduction Introduction
Marketing Budgets for 20 years ago
Other, 25%
Advertising, 75%
Advertising Other
>> Integrated Marketing Communication Strategy
by Kitchen,
2003
Introduction (Introduction (con’tcon’t))
Marketing Budget for Today
Advertising, 25%
g g y
Trade Promotion, 50%
Consummer Promotion, 25%
Trade Promotion Consummer Promotion Advertising
>> Integrated Marketing Communication Strategy
by Kitchen,
2003
Introduction (Introduction (con’tcon’t))
The allocation of communication budgets away from The allocation of communication budgets away from
mass media and traditional advertising has obviously
promoted IMC in recognition and importance for
effective marketingeffective marketing
>> Integrated Marketing Communication Strategy
Introduction (Introduction (con’tcon’t))
7575%%7575%%
2525%%
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The The emergenceemergence of of ITIT hashas fundamentallyfundamentally changedchanged
• The media landscape• The media landscape
• Contributed to an extensive deregulation of marketsCo bu ed o a e e s ve de egu a o o a e s
• Individualized patterns of consumption
• Increased the segmentation of consumer tastes and
preferences
>> Integrated Marketing Communication Strategy
by Eagle and Kitchen, 2000; Kitchen, 2003
The Correct Position of the CompanyThe Correct Position of the Company
Business Environment
Organization Concepts
External Internal
p
Identity Profile Image
Opportinuties Threats Strengths Weaknesses
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HHow internet influences industry structureow internet influences industry structure
competition migrates to price
differences among competitors are red ced d d b i t t hift t lidifferences among competitors are reduced
geographic market widens increasing
reduced barriers to entry shifts power to suppliers
end-users bargaining power is increased
Internetthe number of competitors
new substitution threats are created
through reduced switching costs
difficult to keep internet applications new substitution threats are created
by the proliferation of internet
standardization of products
difficult to keep internet applications
from new entrants
the internet can expand the market
traditional powerful channels are eliminated
standardization of products
reduces differentiation
the internet can expand the market
by making the industry more efficient
>> Integrated Marketing Communication Strategy
Porter (2001)
The IT The IT -- revolutionrevolution
>> Integrated Marketing Communication Strategy
The Consequences of the IT The Consequences of the IT -- revolutionrevolution
• The three communication systems were separate • The three communication systems were separate.
The IT- revolution has made a total communicative
integration.
>> Integrated Marketing Communication Strategy
The Consequences of the IT The Consequences of the IT -- revolutionrevolution
>> Integrated Marketing Communication Strategy
The Consequences of the IT The Consequences of the IT -- revolutionrevolution
Television Telephony IndustryIndustry
Computer Industry
>> Integrated Marketing Communication Strategy
The Level of Communication ManagementThe Level of Communication Management
StrategicStrategicLevel
Advertising Agencies and
Account Executives Tactic Level
O ti l L lOperational Level
>> Integrated Marketing Communication Strategy
The Level of Communication ManagementThe Level of Communication Management
On a tactical level marketingg
The communication is handled by professionally skilled y p y
account executives, art directors and copy directors with
li i d d i f ivery limited competence and experience from strategic
management.
>> Integrated Marketing Communication Strategy
Compare the Education ProgramCompare the Education Program
3%100%
Communication Theory
Strategic Management
60%
80%
97%90%
20%
40%
10%0%
20%
Tactic Level Strategic Level
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Compare the Education Program by SubjectsCompare the Education Program by Subjects
Subjects
Level Total
hip
c M
anag
emen
t
mer
Beh
avio
r
sing nica
tion
Theo
ry
olog
y
c Pl
anni
ng
Man
agem
ent
al A
naly
sis
ng ics
Lead
ersh
Stra
tegi
c
Cop
y
Con
sum
Adv
ertis
Med
ia
Art
Com
mun
Met
hodo
Stra
tegi
c
App
lied
Fina
ncia
Mar
ketin
Polit
ics
Econ
omi
Tactical 10% 90% 100%
Strategic 3% 97% 100%
>> Integrated Marketing Communication Strategy
The Problems of CommunicationThe Problems of Communication
how accurately the symbols of Level A
Technical communication can be transmitted.
how precisely the transmitted symbols
th d i d i Communication
how effectively the received meaning
does affect conduct in the desired wayconvey the desired meaning. Communication Problems
Level CLevel B
does affect conduct in the desired way
Level CEffectiveness
Level BSemantic
>> Integrated Marketing Communication Strategy
by Warren (1949)
Why hasWhy has communicationcommunication toto movemove
fromfrom tacticstactics toto strategystrategy ??
• Fast technological advancement
• A rapidly globalizing
• Deregulations of markets
• Individualization of consumption patterns• Individualization of consumption patterns
>> Integrated Marketing Communication Strategy
ConclusionConclusion
A j i f fi h i d l l • A majority of firms have remained on a level
mainly dealing with tactical coordination of
promotional elements very few, a handful have
moved to financial and strategic integrationmoved to financial and strategic integration.
>> Integrated Marketing Communication Strategy
Conclusion (con’t)Conclusion (con’t)
Diff d i l l i h b • Different educational cultures might be an
essential obstacle to move IMC from tactics
to strategy
>> Integrated Marketing Communication Strategy
Conclusion (con’t)Conclusion (con’t)
O l i ll i d IMC h l • Only strategically oriented IMC can help
business to move forward.
>> Integrated Marketing Communication Strategy
IMC: form Tactic to StrategyIMC: form Tactic to Strategy
Tha k YTha k YThank YouThank You
>> Integrated Marketing Communication Strategy
Presented byPresented by
Onion HeadOnion HeadSiriporn Pongvinyoop g y
mrkokung@hotmail.com
>> Integrated Marketing Communication Strategy