Brand contact points:
Contact points for organizations are represented as points of interaction between brand and consumers in the marketplace. The mix and nature of such contact points vary according to the category and type of the good or service, as well as the nature of the organization; if the group is global or has a localised operation; the external market influences on buying decisions, and constantly-evolving consumer behaviour trends. The assertion that each contact point represents an opportunity for an organization to "inform, persuade and to build relationships" implies that the contact points are also a point of leverage for the brand. Belch and Belch [2007] elucidate on this suggestion that, brand identity is the "...sum of all points of encounter or contact that consumers have with the brand and it extends beyond the experience or outcome of using it." [Belch & Belch 2007, p.15].
As well as developing an attractive product and bringing it to the target market through reliable distribution, Kotler [2000] suggests "companies must also communicate with current and prospective customers, and what they communicate should not be left to chance." This development of marketing communications beyond the "Four P's" [McCarthy 1960; Kitchen and Wheeler 1997] of the marketing mix has coincided with the development, discourse and popularisation of Integrated Marketing Communications [IMC] as a communications philosophy and practical, strategic, communications management process [Reid, 2002].
More contact points an advantage:
Historically marketing communications have been 'push-focussed' with a concentration on loosely-targeted messages in mass media. Diminishing effectiveness of mass communications in recent times, have aroused discussion of the associated issue of engagement in an increasingly fragmented consumer marketplace [Kitchen and Wheeler 1997; Kitchen and Schultz 1999; Shimp 1999], and the achievement of brand equity and ultimately brand insistence with target consumers. The assertion implies that a greater number of contact points provides valuable opportunity for the brand as it increases the number of potential contacts with target groups, in turn increasing potential sales. However, with fragmentation of markets and traditional communication channels, such as mass media, it is progressively more difficult for marketers to execute meaningful and measurable communications to target groups and individuals [Wyner, 2006].
The recent shift in the proportion of advertising expenditure spend on traditional media versus emerging media, internationally is evidence of market change. Total online ad spend in Australia reached $1 billion in 2006, a 61.5 per cent increase on the $620 million spend in 2005 [Moses 2007]. As well as this collective shift, individual industries, such as car manufacturers are reducing their above-the-line spend considerably; a 2.9% reduction across the industry year-on-year [Nielsen Media 2006, and a proportionate 50% increase in online spend on automotive advertising in the same period [ABVS 2006]. [Addington 2007 in B&T Weekly 2007].
Branding challenges and opportunities that have emerged since the early 1990's have forced practitioners and their organisations to address and overcome issues relating to market development and change. Not only confined to the change in media spending, Keller [2003] succinctly summarises the range of "challenges to brand builders" as follows:
- Savvy customers
- More complex brand families and portfolios
- Maturing markets
- More sophisticated and increasing competition
- Difficulty in differentiating
- Decreasing brand loyalty in many categories
- Growth of private labels
- Increasing trade power
- Fragmenting media coverage
- Eroding traditional media effectiveness
- Emerging new communication options
- Increasing promotional expenditures
- Decreasing advertising expenditures
- Increasing cost of product introduction and support
- Short-term performance orientation
- Increasing job turnover
[Keller 2003, pp. 39]
While not exhaustive, these identified changes echo views put forward by Day and Montgomery [1999 in Reid 2003]; Eagle and Kitchen, 2000; Kitchen and Schultz 1999; Belch and Belch 2007; as to increasing concerns for communications management in the dynamic, global marketplace. Marketing communications issues for organizations are emerging- such as maintaining a competitive market position in a connected global economy, where consumers have 'real-time' access to alternative goods and services information. Organisations are also being forced to contend with global competitors (who are mainly accessible online), driving increased consumer demand for personalized, tailored products and organizational adaption to maintain relevance in rapidly evolving and changing marketplaces.
With emerging communication channels such as online and mobile phones, marketers must constantly examine functionality in relation to consumer need, to discover new and exciting ways to engage them. As McCann affirms, marketers must "master the emerging contact points and invent new ones" while increasing their own skill levels and understandings of traditional media opportunities. [McCann 2005; p17]
The communications focus therefore must be multi-dimensional, reinforcing strong and enduring brand messages to potential consumers, while maintaining a significant call to action for purchasing. While traditional forms of communications are fragmented and influenced by such challenges, marketers must focus on new ways to communicate, connect, interact with and influence consumers.
IMC a new approach:
Integrated Marketing Communications [IMC] has been put forward as a comparatively recent marketing communications concept. Definitions and applications of IMC range from the "tactical coordination to financial and strategic integration" [Holm 2006, p 23.] and there has been widespread academic and professional discourse regarding the scope and acceptance of IMC as a marketing communications philosophy [Eagle & Kitchen 2000; Kitchen and Schultz 1999; Kitchen and Wheeler 1997; Belch and Belch 2007]. A significant development in defining IMC is the articulation of its basis being solely concentrated on communications with potential customers [Duncan 2002]. While IMC can also be considered, on a macro-level, as an element of marketing strategy and a tactic of organizational marketing programmes, for the purpose of this discussion, IMC definitions herein refer to integration of elements of the activities in the communications mix, to affect the process of consumer decision-making [Smith et. al. 1999 in Holm 2006].
Defining IMC:
When the first noted definition of IMC was developed in the late 1980's, the initial objective was to increase the communications impact gained by combining communications message delivery across many contact points with the consumer, from advertising, to sales promotion and public relations. [American Association of Advertising Agencies in Belch and Belch 2007]. This early definition of IMC, which was initiated by academics and advertising industry bodies - the American Association of Advertising Agencies [AAAA], Association of National Advertisers [ANA] and Advertising Federation of America [AFA] - had a 'practical' skew [Schultz 2004, Pickton and Hartley 1998]. This may be attributed to the initial consideration and incorporation of IMC values being in operating organizations and agencies, and a shift in industry-accepted perception to value customization of communication messages rather than mass-communication.
Early influences on the integrated approach to marketing communications included trends auch as the fragmentation of traditional media and consumer groups and the emergence of below-the-line marketing, relationship marketing, sales promotion and direct marketing, and an urgency to respond and build brand equity in changing markets. [Eagle and Kitchen, 2000; Kitchen and Schultz 1999].
Shimp [1999] also identified five key IMC elements that illustrated the changing nature of popular communications strategy, with the widespread observation of of IMC values:
- Primary goal of IMC to affect consumer behaviour through targeted communication activity
- IMC is customer-centric, focusing primarily on potential customers, rather than company objectives
- IMC incorporates all 'contact points' of communications message delivery
- Brand image strength is derived from 'synergy' at coordination level of IMC programme
- Successful relationship-building with target consumers is crucial to success of any IMC programme
It can be noted in the early stages, that effects and benefits from implementation of IMC were relatively unsubstantiated and metrics were difficult to determine. While the aforementioned elements were generally considered by communications and marketing professionals in the development of above-the-line and below-the-line communications campaigns, it was, and still remains difficult to account for resultant consumer influences and brand values.
Academic and practising discussion of IMC eventually split into two distinct opinion camps, while some academics and practitioners believed that development of IMC was limited to being a management trend [Cornellisen and Lock 2001]; others recognized that although in the early stages of development, evidence of international consideration of IMC principles was on the agenda, if not being applied in the global communications marketplace [Kitchen and Schultz 1999], despite there being a lack of definition and conceptual discourse.
More recently, Belch and Belch (2007) have identified two definitions IMC; the most recent of which follows Schultz's [2004] revised and modernised definition:
"Integrated marketing communication is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted, relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value." [Schultz 2004, p9].
This definition has resonance with recent IMC discourse, with IMC being widely accepted as a practical concept for academics and practitioners alike, and with extensive discussion of the topic in academic, philosophical and practical marcomms literature, [Kitchen 2005]. Although there remains a lack of development and acceptance of IMC as a theoretical concept of communications management at the highest level, it is possible to discuss its affect on strategic communications planning as well as on the implementation of communications programmes.
IMC and communications planning:
In light of the modern definitions and considerations for IMC, strategic communications planning should essentially focus on the strategic position and long term direction of an organisation, delivering this position in consistent brand values and messages through all consumer contact points, to gain a competitive advantage [Holm 2006]. Imparting business objectives in IMC is the first stage of IMC development according to Schultz and Kitchen's [2000] four-stage approach. Coupled with the alignment of organisational strategy and communications messages, communications planning should also incorporate the second IMC stage - gathering of extensive customer information for targeted deployment to consumers, as well as the integration of external agencies employed to execute part or all of the communications mix. In this respect, the organisation incorporates consumer need in communications strategy and imparts knowledge to agency partners involved in the development and execution of marketing communications. In the third and fourth stages, planning should incorporate and interpret customer data and apply it to the segmentation and targeting of customer groups; along with integrating financial and strategic metrics to gauge performance and ROI in relation to communications spending. [Kitchen 2005]. In essence, planning can philosophically and instrumentally focus on consumer needs in the development of IMC campaigns, but the execution and actualization of communications activity is not always consistent.
Tactical integration:
In theory, plans that are strategically and functionally integrated should bear consistent communications messages when implemented in the marketplace. In turn, such messages should resonate with consumers to strengthen brand and affect consumption in the long term. In practice, integration of marketing communications across company departments along with customer needs and brand values being disseminated to agency partners is often the source of disconnection and division. In academic discourse and in practical application, the integration of communications elements such as marketing communications alongside other established activities such as public relations for example, ignores established theoretical norms and popular applications of PR theory [Miller and Rose 1994]. Similarly, imposing strategic direction on advertising creatives, goes against the grain of the traditional approach to the development of advertising messages; and in reverse, integrated communications objectives and briefs may be ignored by creatives attempting to achieve their goals.
While IMC is a relatively new approach, international companies and organisations are attempting to strategically integrate their communications messages and maintain them throughout execution of communications tactics. As Duncan [2002] asserts, all internal departments and outside agencies must effectively combine in planning and executing IMC. While there is no definitive way to measure ROI or effectiveness that is resultant from the application of IMC, there are observed synergies and benefits of integration at an organizational level. This establishes IMC as:
"An ongoing, interactive, cross-functional process of brand communication, planning, execution and evaluation that integrates all parties in the exchange process in order to maximize mutual satisfaction of each other's needs and wants." [Duncan and Mulhearn 2004 in Reid et. al. 2005].
Multiple contact points: example organisations
Integration of brand messages is widespread, and best practice organisations with multiple contact points can often present cases for the adoption of IMC, in lieu of the delivery of brand messages via traditional communication channels. For instance, magazine publishing companies such as Time Inc., EMAP, Pacific Publications and Federal Publishing have demonstrated IMC values in their delivery of magazine-based content to consumers. Extending the brand message beyond the printed page, they have adopted online delivery; increased interactivity with the brand and other readers, principally through frequently updated online messages and teasers pointing consumers to printed material; with the communications objective of deepening brand familiarization at a number of levels.
Who Magzine (the weekly celebrity entertainment magazine) published by Time Inc Asia Pacific, illustrates this well.
Who contact points:
Print: The initial contact point for consumers is the printed magazine product. This is available in independent newsagency stores, retail chains [supermarkets, convenience stores, travel points, variety stores and other franchised outlets].
The brand is licensed internationally and is available in many.
Website + blogs: Who magazine has a strong online presence with http://who.com presenting similar editorial content to the weekly magazine and dynamic content such as RSS feeds, reader blogs/discussion groups and polls.
Weekly enewsletter:
A weekly email newsletter supplements the online and offline messages presented in the magazine and website content. It serves as a third-level of integrated brand message, that is personalized and delivered to the customer - linking them to the other contact points with teasers, competitions and offers.
Who Celebrity Index:
This is a recently-launched contact point for the Who brand. Developed with research experts, it serves as a weekly index of celebrity popularity, and is incorporated into web content as well as featuring in the printed magazine.
Advertising: Who utilizes a mix of traditional advertising media in sister titles from the same publisher like InStyle magazine and more recently, outdoor advertising of bus-stops and on billboards. The integration of brand messages delivered through various forms of magazine content is reinforcing Who values across many mediums. It is inviting readers to engage with the physical product, the content and each other at different levels, deepening the customer experience and providing the publisher Time Inc. multiple contact points in order to build stronger relationships with target consumers. Measurement of web user statistics; circulation [Audit Bureau of Circulation] and readership [Roy Morgan] figures suggests that Who's consumer base can be web-specific; magazine-specific or both. This demonstrates that consumers familiarity with the Who brand is being achieved, with multiple messages being conveyed to ensure the achievement of high-familiarity and actual consumption.
Virgin also illustrates multiple contact points and the case for the adoption of IMC Contact points for the Virgin brand span markets, channels and continents. Originating with entrepreneur Richard Branson developing a record label to support musical artists and sell their music, the contact points include the Virgin Mobile brand among many other Virgin brands such as Virgin Atlantic, Virgin Blue, Virgin drinks, Virgin resorts, Virgin Credit cards, Virgin Radio and Virgin Games.Virgin's objectives are both communications and sales based.
Virgin Mobile contact points:
Retail Outlets: Virgin Mobile operates retail stores featuring service staff; product displays and point of sale service.
Services: Virgin mobile provides mobile infrastructure and phone service; call centre and technical service centre. Allowing customers to use their product successfully, with support on-demand.
Products: Phone handsets and service packages are offered to customers all with the virgin brand message of 'no tricks' and 'no hidden costs'.
Website: A website details products and services and offers consumers additional products such as ringtones; phone accessories and insurance.
Bundled Offers: Virgin customers are offered 'discounts' and incentives to adopt and engage with the virgin brand through consumption of other Virgin products. For example, Virgin Credit customers are offered discounts on Virgin Mobile phone services. These offers are usually presented via direct mail. Virgin Mobile presents a number of contact points to consumers, creating brand value through contact, information and the building of customer relationships at service points. Integration occurs within the Virgin Mobile sub-brand, as well as via the communication of the core brand values of the general Virgin brand.
The development and growth of the Virgin brand and its global contact points, are a prime example of reinforcement of brand values at every level.
Conclusions:
Integrated marketing communications is a relatively new concept, which is a product of market forces, technological advancement and the continual evolution of consumer trends and behaviour. While IMC discourse is widespread in both academics and professional fields; a broadly accepted definition has not been established. However, global and local organisations are adopting IMC philosophies in planning and execution of their communications strategies. While complete integration of all communications activity relies on strong synergies between organisations; agency partners and consumers themselves, this fundamental element of IMC is not always achievable and sometimes difficult to measure. As markets become increasingly fragmented and competitive, adoption of IMC elements and philosophy will become critical in delivering targeted, compelling communications to potential consumers, and to maintain engagement in customer relationships. Supporting theoretical frameworks including metrics will emerge from the study of practical IMC applications over time. |
