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Transcript
IMPLEMENTATION OF INTEGRATED MARKETING COMMUNICATIONS:
WHOSE RESPONSIBILITY IS IT?
Although Integrated Marketing Communications (IMC) is now generally accepted as the
most effective way to create brand communications programmes, there is evidence to indicate
that many companies are not implementing it fully. Reasons put forward for this are a lack of
understanding and/or influence at the strategic levels of an organisation. The purpose of this
study is to establish whether agencies can assist clients in meeting these challenges. The
research examines clients’ and practitioners’ views on whose responsibility it is to implement
IMC. The results of an on-line survey are presented and interpreted by an advertising
“expert” with extensive experience in the industry, in order to provide a relevant practitioner
viewpoint on the issues. The results reveal that the majority of clients feel that it is their
responsibility to implement IMC because it requires internal adjustments and is therefore
outside the remit of the agency. The views of advertising agencies are more divided on the
issue. There is a viewpoint that the initiative can come from agencies because they are better
structured to work flexibly. The main challenge is the need to build trust between the client
and between their agencies to create a flexible integrated team.
1
IMPLEMENTATION OF INTEGRATED MARKETING COMMUNICATIONS:
WHOSE RESPONSIBILITY IS IT?
Despite continuing discussion on its purpose and contribution, (Gould, 2004, Luck and
Moffatt, 2009) there is a general acceptance across the industry that Integrated Marketing
Communications (IMC) is here to stay. In the context of this paper IMC is defined as “an
audience-driven business process of strategically managing stakeholders, content, channels
and results of brand communication programs” (Kliatchko, 2008). This definition has been
chosen because it identifies the importance of implementing IMC at the strategic level of an
organisation. A number of different levels of IMC have been identified by researchers in this
area. For example Duncan and Moriarity (1998) talk about the Marketing Communication
level, the Marketing level and the Corporate level. Kitchen and Schultz (2001) identify four
levels ranging from the “tactical coordination of marketing communications” to the highest
being “financial and strategic integration”. Despite slightly different terminology it is
generally agreed that it is only at this highest corporate level that the benefits of IMC can be
enjoyed fully (Holm 2006). Unfortunately there is evidence to suggest that few companies are
implementing IMC at this highest level (Kitchen and Burgman, 2010). Two main barriers
have been identified which may be contributing to this lack of implementation; lack of staff
knowledge and understanding and organisational structures (Eagle and Kitchen, 2000; Luck
and Moffatt, 2009). Clients have been found to be reluctant to change working habits and
responsibilities when faced with the perceived complexity of planning and coordination that
IMC requires (Fill, 2009). A more recent study into the barriers to implementation by
Mortimer and Laurie (2012) found that clients did understand IMC but found it difficult to
get their voice heard across departments other than Marketing, particularly when they did not
have the support of the CEO or another prominent Board member.
It is obviously imperative to understand the challenges that clients face and try to reduce
them so that more organisations can benefit from IMC, otherwise the relevance of research in
this area can be justifiably questioned. But whose responsibility is it to move this forward,
clients or agencies or both? This question seems to have been puzzling the industry for some
time. When Duncan and Everett (1993) asked clients who should take the initiative to make
IMC successful, 56% said client and agency (or agencies) together and 42% said the client
alone. A similar question was asked by Swain (2004) to clients, agencies and academics and
the overall results indicated that 31% felt the lead needed to be taken by top management,
36% by Marketing Management and 21% by a committee of agency and client staff. These
figures would suggest that there has been a growing recognition of the responsibility of the
client in IMC implementation. More recent discussions on the subject would support this.
Kitchen et al (2008) found that agency executives were able to put together strategic
campaigns but needed to be given that responsibility by their clients. Kitchen and Schultz
(2009) also suggest that the client businesses are the prime movers in development of
integrated programmes and if they are not implementing at the higher levels then agencies are
prevented for developing IMC campaigns. An industry report by the Institute of Practitioners
in Advertising ((IPA) and other industry bodies entitled “Magic and Logic” (2006) suggests
that, although both clients and agencies have joint responsibility to adapt to the changing
environment, agencies are limited in their advancement if clients are not adopting best
practice.
The characteristics of IMC are challenging the relationship between a client and its agency or
agencies. For IMC to be fully implemented all brand touch points need to be managed. This
involves not only encouraging a range of agencies representing different marketing
2
communications tools such as advertising and direct marketing to work together, but also
managing those touch points more commonly controlled by the client e.g. customer service.
Laurie and Mortimer (2011) suggest that it is necessary for clients to open their doors more
widely and work closely with agencies on internal and external communication challenges if
full integration is to be achieved. This is supported by The Forrester Report (2010) which
suggests that as the environment becomes more complex clients will depend on their agencies
more for “ideas, interaction and intelligence” which will provide creative platforms to run
across all touch points rather than one-off campaigns.
The purpose of this study is to explore the views of both UK clients and agencies on whose
responsibility it is to implement IMC so that a better understanding of how to address this
issue can be reached.
METHODOLOGY
This paper describes the first stage of a larger study into IMC and the client/practitioner
interface where in depth interviews with interested parties of both sides are planned. The
exploratory data presented here was obtained from an on-line questionnaire which was
distributed using a snowballing sampling approach to reach interested parties, as well as
publishing the link in Campaign magazine. Eighty eight people responded to the
questionnaire with 37 people from the agency side of the business and 23 from the client side
(the rest were academics). Out of this total, only 9% identified themselves at being at “entry
level” of the organisation. The rest of the participants classified themselves in the categories
of middle or senior management, board level or owner. It was therefore felt that the
respondents not only had an informed opinion on IMC but also some influence.
The questionnaire consisted of a number of statements covering many topics on IMC taken
from the literature and the participants were asked to agree or disagree with the statements
and then explain their response. This provided the study with both an overview of opinions in
terms of statistics, although obviously the numbers are small, but, more importantly, some
rich qualitative data. The pilot study revealed that some participants found the statements to
be rather controversial, which was our intention in order to get people to respond and join
into the debate.
One statement examined the responsibility of implementing IMC and therefore, for the
purpose of this paper, the results from this statement are presented along with comments.
The statement is as follows:
Q1 Agencies are keen to implement an IMC approach but the initiative has to come from
the client. If the client is integrated then the agency is in a position to be allocated tasks to
reach IMC objectives.
To enrich our data further and strengthen its relevance to the communications industry the
quantitative and qualitative results were given to an industry “expert” who was asked to
comment on the findings and thereby provide a more insightful interpretation of the data.
This person is the Global Planning Director of a multinational communications agency and
has worked in the advertising industry for over thirty years on both the client and agency
side. He was asked to utilize his extensive knowledge and experience of the industry to
express his views on the findings. He chose to examine comments from clients that agree
with the statement and comments from advertising agencies that disagree with the statement
in order to identify the main areas of disagreement. His commentary has been presented in its
3
unedited form in order to maintain its richness, adapted only in order to fit within the page
restriction of the paper. It is therefore presented as primary data, which is examined in the
Discussion and Conclusion section.
RESULTS
Advertising “Expert” commentary on quantitative and qualitative results
“On the surface, the results suggest that there is a significant difference between the response
of the clients and agencies, with clients indicating that the initiative to implement a fully
integrated marketing communications (IMC) approach must come from within their business,
(74% agreeing with the statement), whilst advertising agencies are much more divided on the
issue (only 45% in agreement).
So firstly, let’s assess the response of clients who feel that it’s their responsibility to drive the
agenda of change, one that I might add has been hanging over their heads for the last decade
and still not delivered within most client organisations, who are still fairly siloed in their
approach to channel management. In fact many clients still separate both on and off line
activities, with media buying often being run by a separate team completely. We shall look at
some of the clients’ responses as to why they should be driving the agenda, accompanied by
my comments. They say:
Agree - Agencies are not empowered to change client organisations so it has to come from
the client
No, agencies are not, but they can advise the client on change and/or insist that they only
work with the client if they take on an integrated approach to their marketing and
communications activities. Mind you, this does not mean that one agency will do everything,
but that a group of agencies will work together and be led and guided by the lead strategic
agency.
Agree - It is not only about agency issues. The integrated approach has to be implemented
all through the clients organisation, working with the internal culture, brands, R&D,
products and channels etc.
If the culture is not all about IMC, then whose responsibility is it to change it? Wouldn’t it be
the clients and in particular the marketing and communications teams? It is no use saying that
4
it is not in the culture, as the respondents themselves should be responsible for driving the
change within the organization.
Agree - Yes this is a possibility....IMC cannot just be ´inflicted´...the client company needs
to believe in the benefits and ROI of IMC
No, we all agree that IMC cannot be inflicted, but how can clients ignore the success
demonstrated by implementing fully integrated marketing communications. Dare I mention
Unilever, Coca-Cola, Apple, Microsoft, IBM, GE and Intel, all of which I have firsthand
experience of working with in a fully integrated environment.
Agree - but I would also challenge agencies to become more integrated themselves. A lot of
agencies come from one discipline, and find it difficult to work with an IMC approach.
However, whilst clients are still demanding specialist agencies to align with their own
channel specialists, then agencies end up in a hard place. Although Advertising Agencies are
often asked to demonstrate how a “big idea” or the creative platform can be executed across
all channels, they are often not asked to execute all the final assets, with the clients dividing
the work between specialist agencies, leaving the Advertising Agencies in a difficult position.
How can they fully integrate if the clients don’t trust them in executing across all channels?
There seems to be a number of reasons as to why clients are not integrating their
communications activities, with no single driver. My suggestion would be to move past the
excuses and start changing today, as it has been clearly proven that IMC drives a more
synergistic approach to the communication planning and execution, which in my experience
is always more successful than a series of disparate communications being pushed into
market.
So what do the Advertising Agencies have to say? Even though the agencies had a low 45%
positive response to the question, it was not that they don’t believe in IMC or that the change
should occur, rather that the client shouldn’t be the only driver of the change and in fact in
some cases it may prove easier and more beneficial for it to start with the agency.
Disagree - Agencies and clients should develop an IMC approach together
Yes, but shouldn’t the agency drive the agenda even if the client is not quite ready? Agencies
are the more flexible and usually have the right resources and skill sets to drive change
without significant upheaval within their own organisation.
Disagree - Agencies can lead the process no matter what the client structure.
Agencies are not as set in their structures as clients, as they themselves have a varying range
of organisational structures they need to service across their clients. If they start the change
process then eventually they will drive a structural change in the clients business.
Disagree - For Agencies IMC is a way to sell in more work to the Client.
Ahhhh finally a truthful answer, yes naturally the more integrated a client becomes, the more
they will look for a single strategic and creative lead agency, giving that agency a bigger slice
of the pie and a lead position over the "specialist" agencies.
5
Disagree - Very often client organisations are constructed in silos and it is the fluidity of
the agency structure which enables integration to take place and be effective
This in itself is the big difference between agencies and clients. The giant cruiseliner versus
the nimble speedboat. Even though an agency may be large, it forms small specialist teams
around clients that can act quickly and in a variety of ways depending on the needs of the
client. Resources from the “bigger” agency pool can easily be re-aligned to meet changing
needs of the client with a minimum of disturbance to the overall business.
So we end up in a stalemate. Clients know that they need to change, but will often look for
any excuse in the book not to. Advertising Agencies will talk the talk, walk the walk where
they can but not push their own agenda onto clients if it starts to put the relationship at risk.
From my point of view IMC will happen, you can see this in the smaller markets like Asia
Pacific and the Nordics. It’s only the big and dare I say “old fashioned” markets that are slow
to change. Not because of a lack of skills, but of clients wanting to retain control of their own
fiefdoms and not have agencies becoming more influential than they already are. ”
DISCUSSION AND CONCLUSION
The purpose of this study is to examine clients’ and practitioners’ views on whose
responsibility it is to implement IMC. The quantitative results indicate that 74% of clients
think it is their responsibility while only 45% of agencies agree. There is evidence to suggest
that clients understand IMC as having both internal as well as external implications and it is
therefore something that has to be initiated from within. However some agencies feel that
they can assist in that process, due to their more flexible approach to working which is less
cumbersome than some client structures. Our industry “expert” brings a realistic and practical
interpretation of these findings. He agrees that it is up to the client to change the internal
culture of an organisation. However it is possible for agencies can help. He seems frustrated
that, despite clear evidence that IMC is of great benefit, there is a reluctance to change and he
proposes that one reason for that is an unwillingness to pass more control over to their
agencies. He also acknowledges that agencies are employed to provide a service to their
client and do not want to jeopardize that.
To complicate matters further, it cannot be assumed that all agencies are happy to work
together. As the results indicate, lead agencies may not necessarily wish to work collectively
with the various specialised agencies. Ewing et al (2000) found that strong conflicts of
interests existed between agencies. The challenges for clients working with a number of
agencies have been identified by the IPA report “Agencies working better together”. Their
results showed that two models were the most common. The “all agency model” is where all
agencies work together as equals, popular with larger organisations where the client had the
time and resources to over-see the work. Alternatively there is the “lead agency model”
where one agency over-sees the others, and that agency is normally the advertising agency.
The relationship between the client and their agency and the level of trust and team-working
that exists between them is obviously crucial. Agencies need to be stronger in encouraging
their clients to move forward and show them the long-term benefits of IMC. At the same time
they need to learn to co-operate with other specialist agencies and present a united front to the
client, particularly smaller clients who do not have the resources to oversee turf wars. Lastly
agencies must offer to assist the client in internal communication challenges. Only then may
it be possible to encourage these larger ‘vessels’ to change direction.
6
REFERENCES
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relationships. Journal of Marketing, 62(2), 1 – 13.
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