> >> > 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.

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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

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Introduction Introduction

Marketing Budgets for 20 years ago

Other, 25%

Advertising, 75%

Advertising Other

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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

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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

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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

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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

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Porter (2001)

The IT The IT -- revolutionrevolution

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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.

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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

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The Level of Communication ManagementThe Level of Communication Management

StrategicStrategicLevel

Advertising Agencies and 

Account Executives Tactic Level

O ti l L lOperational Level

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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.

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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%

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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

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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

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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.

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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

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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.

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IMC: form Tactic to StrategyIMC: form Tactic to Strategy

Tha k YTha k YThank YouThank You

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Presented byPresented by

Onion HeadOnion HeadSiriporn Pongvinyoop g y

mrkokung@hotmail.com

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