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YES! IMC IS GOOD
But Why the Apathy in Implementation?
Submitted to the
School of Interdisciplinary Studies
(Western College Program)
in partial fulfillment of
the requirements for the degree of
Bachelor of Philosophy
Interdisciplinary Studies
By
Kioko Ireri
Miami University
Oxford, Ohio
2007
APPROVED
Advisor_________________________
Dr. Alysia Fischer
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Abstract
Purpose - The purpose of this thesis is to identify why the birth of Integrated Marketing
Communications (IMC) a decade ago has been greeted with such apathy in
implementation by many organizations. Though mired in controversy over its theoretical
roots, lack of empirical research in the field, and lack of a common definition and its
validity, IMC is a good marketing promotional method. It enjoys many merits that are a
boon to organizations or corporations that embrace it for promotional campaigns.
Being the most remarkable development to have emerged within the marketing
discipline in recent times, IMC is making good progress and enjoys a bright future – this
is despite the contentious debate that surrounds the concept. The most critical thing,
however, is for organizations to tactfully address the apathy problem, which is enmeshed
within the hierarchy of their management strata. If this lack of enthusiasm in accepting
IMC, obviously due to a number of reasons affecting managers’ interests, is solved, then
there is no reason why the concept will not flourish to the chagrin of critics.
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Acknowledgements
Writing this Senior Capstone was a Herculean task. It would have proved impossible
without support, academically and morally, from a cross section of kind people - faculty
and fellow students in Miami University. That is why I am deeply indebted to sincerely
thank the following people, whose support, either directly or indirectly, was
magnanimous.
Many thanks begin with the terrific work of my project advisor, Dr. Alysia
Fischer. Her support during the summer crash program when I attended this project was
incredible. My debt to her is vast – for her work on this senior thesis, for her academic,
material and moral advice. At initial stages when I toiled with ideas of what to write
about in my project, I widely consulted Dr. William Newell, a veteran in teaching Senior
Capstone at the School of Interdisciplinary Studies (Western College Program), Miami
University. His advice and guidance cannot go without a word of thanks.
My gratitude also goes to Diana Durr, the Executive Director of the Oxford
Visitors and Convention Bureau (OVCB) for giving me the go ahead to use her
organization as my case study. I appreciate the time she devoted in meeting me when I
researched my topic. Many thanks also go to other OCVB staff members - Jennifer Smith
and Debbie Farley. I cannot forget to salute William Baker of King Library who, during
the initial stages when I found it difficult in identifying what to write about was always
eager to show me the way. I also offer thanks to other members of staff at King Library
for their unlimited assistance.
I will always be grateful to my academic adviser Dr. Eugene Metcalf for his
encouragement and concern about my academic progress. He is among few people who
made life bearable to me while away from my mother country, Kenya. Prof. Allan
Winkler, a distinguished professor of History, deserves my sincere thanks for his role in
bringing me to Miami University. He made me realize my dream of pursuing further
studies in this great land of America. I am also delighted to thank the following
professors who taught me during my two-year sojourn at the School of Interdisciplinary
Studies (SIS): Dr. William Gracie, the Dean of Students School of Interdisciplinary
Studies, Dr. Muriel Blaisdell, Dr. Chris Wolfe, Dr. Xiuwu Liu, Dr. Yvonne Keller, Dr.
Hays Cummins, Dr. Donna McCollum, Dr Nancy Nicholson and Dr. Robert Bell.
One person I cannot forget to thank is Mrs. Kimberly Ernsting, the Interim
Assistant Dean of Students, SIS, for invaluable guidance on various academic matters.
Nate Smith and Micah Vieux, I thank them a lot for taking their time to proofread my
work. Many thanks also go to my cousin Dr. Gilbert Nyaga, a professor of Supply and
Chain Management at Northwestern University, Boston for his encouragement and moral
support.
The following fellow students at the SIS deserve my gratitude because they had
tremendous positive influence on me during my stay in Peabody Hall, which houses the
Western College Program: Garret Koehler for always working closely with me. I always
turned to him when I faced difficulties in my assignments. Joey Eger is another
wonderful friend who I undertook most of my class projects with. Other students at the
SIS who deserve my thanks are: Dane Kiambi, Nick Arnold, Benjamin Meissner, Todd
Spangler, Willis Okech, Martin Yip,
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Sara Wenger, Sam Kirschner, John Badalamenti, Chelsea Nuss, Rose Landau, Shana
Elbrecht, Rory Patchin, Matthew McWilliams and Thad Kerosky. Ricky Wilton, I
worked closely with him during my marketing classes. Thanks for everything.
Lastly, I am indebted to all the authors whose material I have used in this thesis.
Sincerely, I cannot mention all those to whom I owe a debt, but, I am also grateful to
those whose names have not been mentioned.
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For my parents, the late Ireri Rukindu and Margret Mutio for educating me.
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Table of Contents
Abstract……………………………………………….……………..……………………I
Acknowledgements...……………………………………………………………………II
List of figures and tables……………………………………………………………...VII
Chapter One
Introduction and definition…………………………………………………………….….1
IMC historical perspectives………………………………………………………….……5
Chapter Two
IMC controversy………………………………………………………………….……….9
Chapter Three
Reason for IMC…………………………………………………………………………..11
Chapter Four
How IMC works…………………………………………………………………………15
The message transmission process……………………………………………………….15
IMC at work……………………………………………………………………………...18
Chapter Five
The psychology behind IMC…………………………………………………………….21
Psychological principles of marketing…………………………………………………...23
Consumer behavior………………………………………………………………………26
Persuasion………………………...……………………………………………………...27
Chapter Six
Strategies for IMC implementation…..………………………………………………….29
Chapter Seven
Barriers to IMC implementation…………………………………………………………38
Chapter Eight
IMC applications: The case study of Oxford Visitors and Convention Bureau...……….51
The OVCB organization structure…………………………………………………….....53
Strategic plan for OVCB…...……………………………………………………………55
OVCB target market and audience………………………………………………………56
OVCB marketing programs……………………………………………………………...57
The OVCB areas of improvement and the way forward…………………….…………..64
The promotion management for OVCB…………………………………………………69
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Chapter Nine
The future of IMC and conclusion……………………………………………………….76
Bibliography……………………………………………………………...……………..78
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List of Tables and Figures
List of Tables
Table 1.1…………………………………………………………………………………12
Factors influencing marketing strategies
Table 1.2…………………………………………………………………………………60
Oxford Visitors Bureau & Convention Bureau budget for the Year 2006
Table 1.3…………………………………………………………………………………72
Demonstration of an overall budget breakdown for OVCB
Table 1.4…………………………………………………………………………………72
Demonstration of advertising budget breakdown for OVCB
List of Figures
Figure 001…………………………………………………………………………….....16
A simple communication model
Figure 002……………………………………………...………………………………..16
The communication process
Figure 003………………………………………………………………………………20
The marketing communication process
Figure 004……………………………………………………………………………….32
The hierarchy of effects model
Figure 005…………………………………………………………………………...…..42
The behind the scene power struggle in organizations structures
Figure 006…………………………………………………………………………...…..42
Shows power struggle in organizations.
Figure 007……………………………………………………………………………….55
The OVCB organizational and governing structure
Figure 008………………………………………………………………………………61
A print ad developed by OVCB promoting the City of Oxford.
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Figure 009……………………………………………………………………………….61
A print ad developed by OVCB promoting the City Oxford
Figure 010……………………………………………………………………………….62
The face of OVCB coupon savings booklet
Figure 011……………………………………………………………………………….62
The Dubois Bookstore coupon appearing in the Oxford Area Coupon Savings
Figure 012……………………………………………………………………………….63
The Follett’s Miami Co-op Bookstore appearing in the Oxford Area Coupon Savings
Figure 013.………………………………………………………………………………63
The coupon of Skipper’s appearing in the Oxford Area Coupon Savings
Figure 014…………………………………………………………………………….…68
The promotion management process
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CHAPTER ONE
Introduction and definition
Marketing communication has been a strong force in business for many years.
The main stimulus in the multi-billion dollar marketing industry, however, has been the
emergence of Integrated Marketing Communications (IMC), a decade ago. Kerin et al.
define IMC as: “The concept of designing marketing communications programs that
coordinate all promotional activities such as advertising, personal selling, public
relations, sales promotion and direct marketing to provide a consistent message across all
audiences” (2004: 322). From the above definition, IMC can be summarized as the
strategic coordination of multiple communication voices. According to Burnett and
Moriarty (1998: 63), the IMC process involves understanding the needs of the customer
and other stakeholders. This understanding is achieved through application of integrated
thinking when making marketing and management decisions.
Burnett and Moriarty (1998: 63) explain that IMC Works best when all the
marketing or promotion mix elements, and other operating divisions within the company,
work together under a common philosophy of customer-focused marketing. The working
together of different marketing communication mix elements results in a unified message,
which consistently informs, persuades and reminds customers about products and
services offered by a certain company.
The emergence of IMC has largely helped shape the nature of contemporary
marketing communications campaigns such as advertising, sales promotion and public
relations. Commenting on this new development, Burnett and Moriarty observe as
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follows: “One of the most important communication trends of this decade is a shift to
Integrated Marketing Communications (IMC)” (1998:14). The birth of IMC has been a
source of nearly constant controversy - provoking varied responses from scholars,
practitioners, and researchers in communication and marketing sectors. As seen from
different quarters of marketing communication, the responses resulted in an enthusiastic
acceptance of the new concept by some organizations. Others have not hidden their
apprehensiveness about the concept – hence their reluctance in embracing it. My thesis is
that IMC is good because of message consistency and unification, even though it has
courted controversy over its merits, validity and how to measure its effectiveness.
Stakeholders on this topic agree that the bone of contention concerning IMC
revolves around its validity. A barrage of questions has been raised about its suitability in
marketing, and whether it is simply a duplication of the traditional marketing promotion
campaigns. All the hullabaloo notwithstanding, there is no doubt that IMC is the latest
significant development in the marketing discipline – influencing decision making in all
organizations facing the realities of competition in a neo-liberal globalized economy. In
the 1990s, when the concept was conceived, IMC became a hot topic in the marketing
world. This was due to its unique approach to how marketing communication messages
should be created as opposed to the traditional methods. The key words in IMC are
unification and consistency of message transmission. The journal Strategic Direction
supports the unification and consistency of messages by observing that:
The basic premise of IMC approach demands a more coordinated and
strategic approach. Rather than just employing a number of different
activities in the hope that they will achieve the desired results, IMC needs
to tie into the overall function, purpose and future direction of the
company (2006: 1).
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The debate about IMC has centered on its definition. The exact definition of the
concept has put marketing communication scholars and experts between a rock and a
hard place. Their efforts to come up with one acceptable definition have been a real
challenge without consensus on the issue. This has resulted in IMC attracting an
avalanche of definitions. Failure by scholars to settle on one definition is a clear
indication that something is amiss. For instance, Schultz et al. define IMC as: “The
process of developing and implementing various forms of persuasive communication
programs with customers and prospects over time” (1993). Thorson and Moore agree
with Schultz et al, and offer this definition of IMC: “The strategic coordination of
multiple communication voices” (1996: 1). Burnett and Moriarty appear to have even a
more robust definition, which reads: “IMC is the practice of unifying all marketing
communication tools - from advertising to packaging – to send target audiences a
consistent, persuasive message that promotes company goals” (1998: 14). The American
Association of Advertising Agencies (Four As) defines the concept as follows:
A concept of marketing communications planning that recognizes the added
value of a comprehensive plan that evaluates the strategic roles of a variety
of communication disciplines - for example, general advertising, direct response,
sales promotion, and public relations - and combines these disciplines to provide
clarity, consistency, and maximum communication impact (Pitta et al. 2006:
156).
The IMC concept was developed at Northwestern’s Medill School of Journalism
with IMC being initially defined as: “The process of developing various forms of
persuasive communication programs with customers and prospects over time” (Schultz et
al. 1993). Percy (1997: 3) writes that later the Medill School group took a stronger
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consumer orientation in defining IMC, which emphasized a two-way communication
between marketer and customer. In addition, McGrath (2005: 56) argues that at its most
fundamental level, the IMC concept is an attempt to understand how and why consumers
respond to some marketing communications messages more positively than others. He
adds that consumers of IMC are expected to harness their varied response to some
marketing communications messages as a means of maximizing the effectiveness of
marketing communications programs.
One conspicuous thing about IMC is its interdisciplinary nature. To meet both its
short and long-term set objectives such as sending a unified message and creating a
competitive edge among its users, this concept borrows heavily from a number of
academic disciplines including Psychology, Economics, Communication, Marketing,
Information Technology (IT), Sociology and Management.
For instance, McGrath (2005: 56) explains that much of the basis for IMC is
derived from the literature of psychology, especially with respect to the role of persuasion
in promotion mix, which, in turn, has influenced the mass communications and marketing
fields. McGrath talks of “cognitive psychology”, which deals with the way human beings
process external stimuli, including marketing communications messages (2005: 57).
Much of consumer behavior is based on such psychologically-controlled aspects as
perception, attitude, persuasion, motivation and learning. Marketers have not hesitated to
exploit psychology’s influence on consumers through promotional messages. In chapter
five, the role of psychology in marketing communication has been discussed in detail.
Within the Communication discipline framework, promotional messages reach
the target audience through a process called the interpersonal model of communication.
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In this model, there is the source and the receiver. Marketing agencies or communication
departments in an organization are the source, while customers or buyers are the
receivers. Marketing as a discipline comes into play because organizations are offering
their goods and services, which they promote through marketing communications.
Management has a strong influence on the success or failure of the IMC implementation.
For example, managers have been accused by marketing and communication researchers
of being rigid and resisting any kind of change that might affect their positions within
organizations. Certainly, this compromises the smooth implementation of IMC programs.
Scholars attribute the failures of IMC to economic reasons. The integration of marketing
communication process is so complex that its cost-effectiveness benefit has been too
difficult to prove.
Information Technology is another key factor in the changing marketing
landscape. Holm explains that the emergence of IT has fundamentally changed the media
landscape, contributing to an extensive deregulation of markets and individual patterns of
consumption (2006: 23). The deregulation of markets has resulted in an increasingly
segmented market of consumer tastes and preferences.
IMC historical perspectives
Understandably any new business approach requires exploring its history. That
IMC has become a hot topic in marketing calls for tracing of its origins. Niemann (2005:
86) notes that there are conflicting views about the origin of IMC, that is, when it was
devised and when it came into full operation. Duncan (2001: 11) points out that the basic
concepts of IMC have been in practice since the early 1970s. During that time
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communication professionals recognized that the marketplace was changing. Duncan and
Caywood aver in this regard that advertising was fast losing its “golden halo” (1996: 13).
Niemann (2005: 87) says that during this period, agencies were involved in mergers and
acquisitions in an attempt to offer clients more than only advertising. This trend is a clear
indicator that advertising alone was not enough. At the same time, it can be argued that
most advertising agencies did not foresee the idea of integrating promotion programs as a
possibility.
Percy (1997: 1) has also given reasons for the emergence of IMC. He notes that
the roles of advertising and promotion in today’s communication mix have changed in
the last decade. He adds: “Where once the majority of marketing dollars were spent in
traditional advertising, the pendulum has switched and in today’s world more money is
now spent in other forms of marketing communications: direct marketing, sales
promotion, and channels marketing” (1997: 1). Percy notes that more money is now spent
on other forms of advertising, resulting in the need to integrate the planning of all of a
company’s marketing communications, hence the birth of IMC.
Schultz et al. (1993) point to the collapse of mass media in the 1950s when
traditional marketing promotion elements such as advertising started exhibiting their
weaknesses in the marketing field. The collapse, Schultz et al. (1993: 10) note, shook to
the foundations the whole system upon which marketing and advertising were based.
These scholars note that mass media provided advertisers with access to the mass market
at a low unit cost.
In the 1980s, however, Kitchen (2005: 73) explains that the concept of IMC was
an unrecognized paradigm. On the same page, Kitchen further explains that many
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professionals and academics within the field of marketing considered each marketing
communications function to operate with various degrees of autonomy. Kitchen refers to
the Coulson-Thomas outline of marketing communications channels, which recognized
an element of interdependence and interrelationship between the different communication
specialties, but did not consider integration as a possible approach to developing more
effective campaigns at that time.
By the 1990s, nearly everything seemed to have turned upside down because such
traditional marketing strategies as advertising and personal selling were no longer
effective. This paved the way for the dawn of the integration era: the birth of Integrated
Marketing Communications. On integration, Schultz et al.say:
Enter a new age of advertising: respectful, not patronizing; dialogue-seeking,
responsive, not formula-driven. Moreover, marketers no longer viewed
advertising as a necessary evil, a little understood or controllable element
of cost. More and more, advertising is perceived as an investment, and as such is
held accountable for specific results. Advertisers, their agencies, and the media
modify their relationships to serve new roles, and Integrated Marketing
Communications (IMC) emerges, albeit tentatively (1993: 11).
The journal Strategic Direction traces the birth and history of IMC on two fronts
– the changing face of traditional marketing and the impact of Information Technology
(IT). It adds that: “Over the years, the traditional face of marketing has changed. Whilst
organizations recognize that they can no longer take their customers’ loyalty for granted,
and need to adopt ongoing marketing strategies to stay ahead of their competitors, the
design and content of their strategies continue to evolve” (2006: 23).
In addition, the journal identifies the emergence of Information Technology as a
key factor in the changing marketing landscape. The emergence of the Internet and other
on-line tools, for instance, has vastly increased the extensive portfolio of marketing and
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communications tools available for organizations to reach the target audience. The impact
of technology explains the reduced differences among competitors, competition
migrating to price, widening of geographic market and reduced barriers to entry shifting
power to suppliers among others. Therefore, it is reasonable to state that the poor show
by the traditional marketing strategies and the emergence of the Information Technology
resulted in the quest for a more integrative approach in marketing. This too led to the
development of IMC.
Two things are clear about IMC’s history. First, the failure of traditional
marketing strategies such as mass advertising in the 1980s was responsible for the
eventual birth of IMC. Second, literature available about IMC attests to the fact that this
concept came into being in the 1990s. Holm states that: “From the beginning of the 1990s
IMC became a real hot topic in the field of marketing” (2006: 1).
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CHAPTER TWO
IMC controversy
IMC has not been without controversy. This controversy is evident in the lack of a
common understanding of this term, the reason for the lack of a generally accepted
definition. Literature shows that this controversy gravitates around the validity and merits
of the concept. McGrath (2005: 191) notes that the controversy is based on doubts raised
about IMC’s theoretical basis and its lack of empirical research in the field. Cornelissen
and Lock (2000: 10) say: “Integrated Marketing Communications critics have alleged
that the concept is simply a management ‘fashion’ that lacks a solid theoretical base.”
Walter (1993: 13) and Spotts et al. contend that it suffers from ambiguity in terms of its
definition and practice, and that it simply “reinvents existing marketing theory using
different terminology.”
Further, Drobis claims: “Some critics have even gone so far as to proclaim the
death of IMC theory because so many practitioners and academicians have
misunderstood the concept” (1998). At the same time, proponents of the concept counter
the negative sentiments about the concept by arguing that IMC represents a revolutionary
way of organizing and enhancing their marketing efforts as well as building brand equity.
Many academicians and practitioners seem to agree that IMC is an attractive
concept, and question why more businesses have not embraced it. Studies indicate that
most major American corporations have failed to fully adopt key aspects of IMC. Burnett
and Moriarty sharply disagree: “Although some critics say that IMC may be a fad, more
and more businesses are using it with success” (1998: 15). Schultz and Kitchen also
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disagree with the concept’s critics, arguing: “The weaknesses cited by the critics are
indicative of a field in its early stages of growth” (1997: 17). On the other hand, Gould
(2000) defends the concept as an evolutionary field which is still undergoing a process of
redefinition.
Duncan (1993) notes that Integrated Marketing Communications’ ideas and
practices should continue to be critically examined and challenged as it continue to
evolve. McGrath (2005: 76) offers a critical view about IMC by stating that a number of
public relations thinkers and practitioners saw IMC as not only an encroachment but also
a form of marketing imperialism where public relations is seen as management function,
while advertising and other forms of promotion are seen as part of the marketing
function. There is one common issue that both proponents and critics of IMC agree upon:
the need to do additional research to either refute the concept or embrace it. This would at
least quell the debate about the importance of IMC in today’s business world.
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CHAPTER THREE
Reasons for IMC
It is a fact that IMC has become a contentious issue with doubts being cast over
its validity and merit. Now, the key questions are whether, after all, IMC is an important
tool in marketing, and if it will survive the test of time. Is IMC important? Yes, as a
marketing promotional strategy with many benefits such as message consistency, IMC is
important to marketers. Its importance is seen through many companies that have tested
the concept, though at the same time, it is being shunned by others. There is no doubt that
the benefits that come with IMC as discussed in the next few paragraphs make this
concept an important marketing promotional tool. Burnett and Moriarty (1998: 15) note:
According to a study conducted on behalf of the Promotion Marketing
Association of America, 60% of the 100 leading senior-level marketing
executives surveyed rated IMC as the most important new factor in devising
a marketing strategy. (See table 1.1).
Smith and Taylor (2002: 15) observe that though IMC requires a lot of effort,
companies using it enjoy many benefits. While saving time, money and stress, IMC
creates competitive advantage, and boosts sales and profits. Increased effectiveness
results in increased profits – measured through increase of sales volume, which means
more revenue. On saving money, Smith and Taylor (2002: 15) explain that the concept
eliminates duplication in such areas as graphics and photography, which can be shared
and used in advertising, exhibitions and sales literature. In few words, agency fees are
reduced by using a single agency for all communications. The two authors contend that
IMC wraps communications around customers, a thing which helps consumers move
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through the various stages of their purchasing process (2002: 15). On the advantages of
using IMC, Smith and Taylor add:
IMC also increases profits through increased effectiveness. At its most basic
level, unified message has more impact than a disjointed myriad of messages.
In a busy world a consistent, consolidated and crystal-clear message has a better
chance of cutting through the ‘noise’ of over 1,000 commercial messages
that bombard customers each and every day (2002: 15).
Table 1.1 The table below shows factors influencing marketing strategies. This is according to
the study commissioned by Promotional Marketing Association of America.
Factor
Integrated Marketing Communications
Consumer lifestyles changes
Economic trends
Everyday low-pricing strategies
New retail formats
Integration of consumer and trade promotion
Globalization
Importance Rank (%)
60
55
45
32
29
27
26
Source: Burnett, John, and Sandra Moriarty. Introduction to Marketing Communication: An Integrated
Approach. Upper Saddle River, New Jersey: Prentice-Hall, 1998.
The journal Strategic Direction agrees that IMC increases competitive advantage
(2006: 24). It notes that for businesses to move forward in today’s fast-paced and highly
competitive environment, they need strategically focused IMC. On consequences
suffered by corporations that ignore IMC, the journal says: “A study of four leading
Swedish organizations show the consequences caused by this lack of focus on strategic
IMC and how organizations can miss valuable opportunities to gain competitive edge”
(2006: 24). Hence, it is appropriate to reason that IMC helps companies to speak with one
voice through integration of promotion mix, which work together. In a nutshell,
organizations speak in one voice because a brand or product has a unified message.
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According to the literature available, it is evident that the key word for IMC is
integration. So, what is driving the need for integration? Increased global competition,
the growth of technology, and more informed customers are some of the forces behind
integration. Accordingly, businesses can achieve better results through a better marketing
communication plan. Burnett and Taylor note that IMC is a cost-effective practice
because it carefully coordinates and communicates each part of the marketing mix
(2002:15). This is especially true for smaller, cost-conscious companies that cannot
afford to gamble all their marketing communication dollars on a single campaign.
There has been a debate as to where the process of integration takes place. Is it in
consumers, media or in an agency? In 1991, during an IMC symposium at Northwestern
University, a presentation was made to the effect that integration of marketing
communication messages occurs at the agency. In the next symposium held at the same
institution, the birthplace of IMC, Don Schultz shocked the attendants when he told them
that their presentation three years ago on where integration takes place was a big lie.
Schultz as quoted in Kaatz (1994: 6) said: “But I am here to tell you today our perception
of integration of three years ago was wrong. That integration does not occur at the
agency. Integration does occur at the client. Integration does not occur at the media
level.”
He explained that integration occurs with the consumer, because the consumer is
the only person who receives all the marketing communication messages. Consumers are
the only people and the only place where all of the advertiser’s activities come together at
one point and at one time. Schultz sums up his argument by observing:
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…..yet, advertisers and agencies sit in rooms like this and say, “we are going to
integrate. We are going to put all this communication material together. We are
going to make all these nifty plans.” And that is silly. Because you, the advertiser
and agency don’t integrate. The consumer integrates. And the sooner we learn
that, the easier it is going to be to integrated communication programs (1994: 6).
There are four factors driving the need to integrate marketing communication
efforts: greater efficiency, stronger customer loyalty, international marketing, and added
impact. Therefore, it can be concluded that the most important thing about IMC is that
companies that use it gain a competitive advantage. To argue the point that companies
gain a competitive edge for using IMC, I take two studies conducted at Northwestern
University by Caywood, Schultz and Wang. The study focused on the US client
organizations’ perception and drew respondents from client marketing managers.
Thorson and More (1996: 19) write: “When asked why and how IMC would add value to
their communication programs, there was strong agreement with the following points: it
provides greater consistency in marketing communication programs, reduces media
waste, and it gives a company a competitive edge.”
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CHAPTER FOUR
How IMC works
A lot has been said about IMC by marketing and communication scholars,
practitioners, researchers and other stakeholders including consumers. I have so far
discussed a number of IMC perspectives such as definition, the origin of the concept and
its merits. With all this said, I now focus on the next possible question: How does IMC
work? That is, what magic does IMC have that makes it more attractive than the
traditional promotion activities?
Marketing communications literature explain that promotional messages relayed
to the target audience through advertising, public relations, and sales promotion, all strive
to pack the mind of customers with information that hopefully will influence their future
purchase decisions. So as to understand how IMC functions, two areas of marketing
communications are addressed below. These are the general communication process from
where this concept derives its functional basis, and how exactly IMC works.
(i) The message transmission process
The message transmission flow involves processing of the message, delivering it,
and storage by customers or prospects. To understand this process, we must look at the
basic model of communication, which is based on a stimulus-response system. This
model is also called the interpersonal communication model because it illustrates how
face-to-face communication works. Figure 001 below illustrates what a simple
communication looks like, while Figure 002 demonstrates the complete communication
process based on Schramm’s 1955 model.
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Figure 001: Illustrates a simple communication model
Source: Burnett, John, and Sandra Moriarty. Introduction to Marketing Communication: An Integrated
Approach. Upper Saddle River, New Jersey: Prentice-Hall, 1998.
Figure 002: Illustrates the communication process
Source: Burnett, John, and Sandra Moriarty. Introduction to Marketing Communication: An Integrated
Approach. Upper Saddle River, New Jersey: Prentice-Hall, 1998.
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In the interpersonal communication model there is the sender, who is the
originator of the message being forwarded to the receiver at the other end. There is also a
feedback pool, which runs from the receiver, and back to the source. The feedback tells
the sender whether or not the receiver/respondent has received the message. Noise
acknowledges that there might be some outside interference, which might hamper the
receiver from getting the message. Before a message can be sent or transmitted, the idea,
thought or feeling being communicated must be encoded – from the meaning in the
communicator’s mind – into a commonly understood set of symbols.
It is the source who encodes the message. The source must package and present
the message in a manner that offers the best chance of reaching and influencing the
listener. Once the message is perceived by the receiver, it must be decoded, from the
transmitted set of symbols, into meaning in receiver’s mind. Decoding involves the
receiver’s interpretation of the message so that he or she mentally grasps the message in
terms that are meaningful. On this communication model, Schultz et al. say:
The model gives us the first clue of why integrated marketing communication is
so critical in today’s over-communicated world. For communication to occur
the message sender must understand the receiver’s fields of experience or the
receiver must have some background information in the marketer’s message
area (1993:28).
In the case of marketing communication, the sender becomes the marketer, while
the receiver will be the customer. As seen from the communication model in Figure 002
above, the present day mass media communication flows in only one direction – from the
marketer to consumer. This process creates a lot of waste and lack of effectiveness during
marketing communication programs. Schultz et al. explain that: “IMC concept is based
on the need for a continual exchange of information and experiences between the
26
marketer and the customer. The marketer seeks to get and store more information on each
individual customer in a database. The customer, through transactions, surveys, and other
methods is encouraged to communicate back to the marketer” (1993: 28). Using this
model of communication is helpful in understanding how marketing communications
work in the marketplace. Basically, a marketing communications model will follow the
foundations of inter-personal communication.
(ii) IMC at work
Every day there are marketers engaged in the process of delivering messages to
customers. Customers must be exposed to media to receive the sales message. It should
be noted that without media exposure there is no communication. From the thousands of
messages sent, however, the customer stores only what he or she finds relevant. After
receiving the message, the customer decodes it to interpret its meaning. Schultz et al.
explain:
Thus when a consumer sees an advertisement illustrated with a happy dog,
tail wagging, eagerly eating a bowl of dog food, the message the consumer likely
takes away is that the dog in the picture likes the dog food and that the
consumer’s dog would probably like it also (1993:30).
At the same time, caution should be taken when sending messages because
problems occur when the marketer uses codes or concepts with, which the receiver is not
familiar. For example, if I create an ad in Swahili, almost all Americans will not be able
to understand it. Once the consumer has decoded the message, he or she can give an
27
immediate response or no feedback at all. Communication of a sales message occurs
when the customer accepts, transforms and categorizes the message.
Consumers can be bombarded with thousands of promotional message, for
example through advertising, but still remain unenthusiastic about taking the next step of
buying whatever commodity was being advertised or promoted. Imagine a case where a
company spends billions of dollars in promotional activities, which in turn do not
increase sales. This can be disappointing and a financial blow to the company.
Corporations can put the best strategic plan in place or spend colossal amounts of
money in IMC programs, but still end up making little or no impact in the market. Where
do such companies turn to? What is missing? Tannenbaum as quoted in Kaatz (1994: 20)
told the IMC symposium of 1994 at Northwestern University that what is needed in
messages released through various promotion mix elements is creativity. He says:
The truth is, however, you can have the greatest strategic thinking in the
world…..and there is still one thing that is missing. One thing that determines
if your money is well spent or wasted. And that one thing is creative spark.
New ideas. Fresh ideas. New words. New pictures. New ways of exciting the
consumer. Sure, we are in the business to communicate - but, if we don’t
communicate creatively, we are doomed - and all Integrated Marketing
Communication strategies won’t help (Kaatz 1994: 20-21).
Knowing the important role of creativity in IMC explains what companies are
expected to do so as to retain their consumers as well as acquiring new ones. Consumers
today are well informed and the only way to convince them to buy our products is by
becoming more creative. Tannenbaum knows that creativity is not an easy thing. For
creativity to work, he suggests that companies, whether an agency or an advertiser,
should have at least seven creative directors, namely: an Information Creative Director,
Product Creative Director, Strategic Creative Director, Advertising Creative Director,
28
Public Relations Creative Director, Direct Marketing Creative Director and an overall
Creative Czar. He explains that each Creative Director will be responsible for outstanding
packaging, new insights into the consumer, new fresh product ideas, sharp selling ideas,
even a new way of writing a news release, catalog or TV commercial (Kaatz 1994: 21).
In support of creativity as the way forward, Schultz et al. state: “The success of an
integrated marketing program depends on two distinct parts of the creative process. The
first part is the strategy – ‘what the consumer wants to hear’. The second part of the
creative process is ‘how you are going to say it’ - the creative idea that dramatizes the
strategy. Both strategy and idea must be outstanding” (1994: 87).
Figure 003: Illustrates how marketing communications works
Source: Schultz, Don, Stanley Tannenbaum, and
Communications. Chicago: NTC Business Books, 1992.
Robert
Lauterborn.
Integrated
Marketing
29
CHAPTER FIVE
The psychology behind IMC
Overview
In chapter one, I highlighted management, Marketing, Economics, Information
Technology, Communication, Sociology and Psychology as the main disciplines that
form the interdisciplinary face of the Integrated Marketing Communications. The roles of
these disciplines in IMC are intertwined – meaning that they have to work in tandem for
the success of the concept. Earlier, it was said that the most important figure in the IMC
process is consumer. In chapter four, I stressed the importance of the consumer as the
place where integration takes place. Integration must occur for an IMC promotion
campaign to succeed.
From a psychological point of view, the role of other disciplines in IMC might not
be of any value if marketers are unable to tap the potential role of psychology in
marketing communications endeavors. One thing should be made clear that the consumer
does not just engage in a purchasing process. There are factors that trigger his or her
behavior as he or she decides what to purchase.
Characteristically, consumer behavior is viewed from the economic, sociological,
psychological, and anthropological point of view. The consumer behavior dynamism is,
however, orchestrated by psychological effects that take place within the mind of the
buyer. Marketing communication messages are always packed with psychological stimuli
that arouse consumers’ inner cravings or desire to get involved in the process of buying
goods or services. That consumers are psychologically influenced to make some buying
30
decisions is the reason why this chapter looks at the perspectives of the psychology
behind IMC.
According to Johnson (2006: 1), the term psychology was first coined in
sixteenth-century Germany as a combination of two Greek root words: psyche (soul or
mind) and logos (study). Markin (1969: v) defines psychology as the study of behavior,
while Johnson (2006: 1), a professor of psychology at Miami University, Ohio even has
an expanded definition – psychology is the science behavior of mental processes, with the
goal of understanding, predicting, and controlling behavior and mental processes.
Psychology, therefore, is viewed more as a human interest discipline.
Its birth dates back to 1879, when, according to Johnson (2006: 5), the
demarcation of modern psychological research, that is, the study of behavior and mental
process was distinguished from the old methods of researching psychology. From a
philosophical perspective, Johnson says: “Psychology has also been influenced by basic
arguments about the very nature of reality. Ancient cultures believed that all which exists
are of one nature” (2006: 1).
Today, marketers are among other people interested in social groups. The
marketers identify social groupings through market segmentation, which principally look
at demographic, geo-demographics and psychographics factors. Psychologically, these
market segments are seen by marketers from a social psychology perspective. Johnson
(2006: 265) defines social psychology as the study of social influences on the individual.
Social psychology has common interests with both sociology, which studies
groups and personality, and psychology, which studies individual differences. In this
31
chapter, I explore three dimensions of psychology: psychology principles guiding
marketing, consumer behavior and persuasion.
Psychological principles of marketing
The importance of psychology in marketing cannot be gainsaid. It has great
influence on consumers who are the main target in marketing promotion campaigns. To
succeed in marketing campaigns, marketers need considerably greater amounts of useful
psychological knowledge. That is why it is necessary to look at the psychological
principles governing marketing. Britt (1978: 3) identifies two questions that he says are
important when dealing with psychology behind marketing communications: (i) What
happens psychologically to a person confronted with a marketing communication, such as
an advertisement or a sales message? (ii) How can empirical data from psychological
experiments and observations be applied in various areas of marketing communication?
Answering these two questions provides marketers with psychological insights of
practical use as they tackle the process of promoting products or services. Emphasizing
the importance of psychology in marketing, Britt says:
Anything that can be done to develop better understanding of what happens
psychologically to an individual at the moment of confrontation with an
advertisement, a sales message, or any other marketing communications is
significant for future development of more creative and more effective marketing
than at present (1978: 4).
Psychological principles are guided by a psychological model of
communication. The model is comprised of six stages as identified by Britt (1978:
37-42). They include exposing, attending, perceiving, learning, motivating and
32
persuading. As mentioned earlier, for integration to take place, the audience must
be exposed to media. It is the medium that exposes the audience to the messages
from the sender.
Exposing occurs when the audience member comes into contact with a
message. This can happen when an intended consumer turns on his television set
or buys a newspaper.
Attending is the process during which the individual becomes actively
aware of the message. He receives the physical stimuli that make up the message
of the communicator. He is positively attending to the message if he is aware of
his reception of the physical stimuli. If he is not attending completely, he will
probably misperceive the message, thus leading to the misinterpretation of the
intended message.
Perceiving is the process by which an audience member organizes and
interprets stimuli that previously have been only sensory data. At this point he or
she is aware of the message and organizes its parts into some sort of
understanding. Johnson (2006: 91) says perceiving is usually taken to mean the
final, organized, and meaningful experience of sensory information.
Learning involves bringing together and relating the message to the
“framework” of the receiver or consumer. The receiver relates the message to
himself and stores the information for possible use. He is positively learning and
remembering if he relates the situation described in the message to himself. At the
same time, he is not learning, if he understands the situation in the message, but
sees no relevance in it to his situation. Johnson (2006: 105) defines learning as a
33
relatively permanent change in behavior and understanding due to experience,
which cannot be explained by instinct, maturation, or temporary states of the
organism.
Motivating takes place in a consumer’s mind, leading him to taking some
action. He is positively motivated if the message causes him to decide to act as
intended by communicator. The consumer is negatively motivated if his intended
action is different from that desired by the communicator. If motivating has not
taken place, no action will follow on the part of the audience member. Motivating
involves reinforcing beliefs, attitudes and opinions.
Persuading is the process of acting, functioning or reacting in various
ways with actual changes in the communication process. Positive behavior in the
communicating process occurs when the sender is satisfied that the message
fulfilled the intended objective. There must be a reaction from the receiver for the
sender to be convinced that the message made an impact. This reaction is what is
called the feedback process in communication model. The feedback can be seen
through answering of online questionnaires for various companies, calling the 800
number, or letters to the editor.
Scott and Howard (2000: 1) refer to the above principles as psychological laws,
which they say enable advertisers to avoid errors, while at the same time strengthening
the positiveness of appeal. Moreover, Scott and Howard support their observation with
the following statement:
By observing these laws advertisers have been able steadily to improve their
technique, and to eliminate the sources of error which formerly made many
advertisements unprofitable. It is now recognized that advertising must be
governed by psychological laws, just as gun-fire must be reckoned by the laws of
physics or the production of gasoline by the laws of chemistry. No person hoping
34
for success in the field of advertising can afford to neglect a study of the
psychology of advertising (200: 2).
Taking the cue from Scott and Howard’s sentiments, it is alright to put it
categorically that no advertisement or any other form marketing communication
element that defies the laws of psychology can hope to be successful.
Consumer behavior
Tucker (1967: 1) defines consumer behavior as a series of events in which the
conditions of one time period are the primary determinants of the activities and
conditions of the next time period. He adds that consumer behavior can be conceived as a
goal sequence in which an apparent goal becomes a stepping stone to another goal.
At the beginning of this chapter, it was mentioned that consumer behavior is
rooted in social psychology, which studies the interactional processes of human beings.
Markin (1969: 191) refers interaction to the fact that the response-gesture, word,
movement, or gross body movement of one individual is the stimulus to another person,
who in turn responds to the first. Thus, social psychology is interested in three basic
interactional relationships: person to person, person to group, and group to group. For the
promotional message especially in IMC to have an impact on a consumer’s behavior, it
must fulfill the following conditions as outlined by Markin (1969: 196).




The message must reach the sense organs. Perception must occur for influence to
take place.
If perception occurs, the message must be compatible and accepted as a part of
the person’s beliefs, opinions and facts.
To induce favorable behavior by communication, this action must be seen by the
person as a path to some goal that he has.
To induce a given action, it is necessary that the consumer’s behavior be under
control or influence of appropriate motivation, attitudes, and opinions relating to
the purchase decision.
35
Drawing from these conditions, it can be concluded that consumer’s attitude are
responsible for developing a set of mental and physical reactions to marketing stimuli.
Supporting the role of attitude in consumer behavior, Markin explains:
Consumers either “know” or do not “know” a company, its products, or its
messages. How consumers react to a firm’s promotional messages will be
determined largely by the consumers’ attitude toward the company and its
products and by how the products “fit” into the consumers’ overall system
of beliefs or cognitive style (1969: 197).
For instance, consumers with strong convictions against alcoholism are not likely to be
receptive to messages encouraging alcohol drinking, or drinking-related activities.
Persuasion
Persuasion is one of the laws governing the psychology behind marketing
communications. Every message directed to consumers especially through advertising
vehicles such as television and radio, attempts to persuade. Consumers are delicate
people who cannot be coerced or intimidated to buy a product or service. They are like
eggs that must be handled carefully, lest they break. Because consumers are as fragile as
a glass, they must be handled with ultimate care. They need to be persuaded to buy
products and not coerced. That is why persuasion has a great bearing on consumer
behavior. IMC programs will be of no value if persuasion does not make any impact on
target buyers. O’Shaughnessy and O’Shaughnessy (2004: ix) observe: “Effective
advertising is, almost always, persuasive advertising; and advertising that does not seek
to persuade is really missing an opportunity.
The O’Shaughnessys’ view receives support from Schwerin and Newell who state
that persuasion should be the central force that pulses through the entire process, the end
36
toward which all planning and every single action between the production of a good
product and its purchase and use by consumers should contribute (1981: 5). The four
authors point to one thing: that persuasion is becoming more important in advertising, as
well as in general marketing communication programs. The importance of persuasion is
seen as superseding advantages connected with product price or function, a thing that has
put marketers under immense pressure on how to develop creative persuasive marketing
communication message. O’Shaughnessy and O’Shaughnessy explain:
…..all this pressure is because TV advertising is being hurt, with many channels
now available encouraging zipping and zapping during commercials. Many firms
are claiming that TV advertising is no longer profitable. Thus Amazon.com
which in 2002 spent $50 million on its TV campaign has dismantled its fivemember advertising department on the ground that TV advertising is not worth
the expense. It has decided instead to lower prices by offering free shipping for
orders over $25 (2004: 1).
Amazon.com’s case begs the question: How will Amazon convey the new
strategy of lower prices and remind prospective customers that it is still in business? To
convey this message, Amazon.com must reach the target audience and make its presence
felt by customers. Its presence and impact to customers will much depend on
persuasiveness. In conclusion, as oxygen is essential for the survival of human beings,
psychology is equally essential for the survival of marketing communications strategies.
That is why marketers have to exploit the potential this discipline of psychology presents
in today’s competitive world of business.
37
CHAPTER SIX
Strategies for IMC implementation
Strategic planning acts as a stepping stone for successful implementation of IMC
programs. The planning of the marketing communications activities must agree with the
overall company objective. This means the envisaged promotion programs should derive
their power from the objectives of an organization. That said, then, the job of a
communication or marketing manager in an organization is to use the vast array of
promotion alternatives available to achieve the desired communication effects.
Percy (1997: 9) emphasizes the importance of strategic planning, which he
describes as the “heart or engine of IMC.” He continues to expound: “For those
marketing communication programs to be truly and effectively integrated, however, the
marketing communication options used must be centrally planned and coordinated”
(1997: 9).
Many authors have suggested different strategic planning processes they believe
will help a smooth implementation of IMC. For example, Percy (1997: 11) suggests a sixstep process, namely: (i) establish target market, (ii) link to marketing strategy, (iii) link
to communication strategy, (iv) establish communication objectives, (v) select
communication options, and (vi) select appropriate media for delivering communication.
Similarly, Anderson and Leonard (1986: 418) suggest a six step plan involving the
following stages: (i) setting long-run objectives for the business, (ii) analyzing the
competition, customers, and other relevant factors in the current situation, (iii)
formulating strategies that match strengths to opportunities and deal with weaknesses and
38
threats, (iv) implementing the chosen strategy, and (vi) evaluating that implementation.
They observe that strategic planning is an overall, not a piecemeal, approach (1986: 418).
Thus, Percy, Anderson and Leonard outline similar steps for IMC implementation. Their
strategies as mentioned above capture three crucial things: setting the objectives,
knowing the target audience and understanding the task of implementation.
Burnett and Moriarty (1998: 111), however, suggest a similar plan, but with nine
steps: (i) determine a problem or opportunity, (ii) determine the objectives, (iii) select the
target audience, (iv) select the marketing communication mix, (v) select the message
strategy, (vi) select the message delivery systems or media, (vii) determine budget, (viii)
implement the strategy, and (ix) evaluate the results. This plan appears more inclusive
and exhaustive than the ones advanced by Percy, Anderson and Leonard. I explore each
of the nine steps outlined by Burnett and Moriarty, which I prefer because they are more
comprehensive. Organizations can rely on this plan while undertaking any IMC strategic
planning.
(i) Determine opportunity
Identification of opportunity is derived from a comprehension of Strength
Weaknesses
Opportunities
and
Threats
(SWOT)
analysis
of
the
marketing
communication plan. In the case of the IMC concept, the concern of communication and
marketing managers would be about problems and opportunities affecting promotional
messages directed to consumers. For instance, Kenya Breweries Limited can direct its
IMC promotion ideas to their consumers of such beer brands as Pilsner, Tusker, White
Cup, and Tusker Malt, among others.
39
The SWOT analysis will help in acting on promotion messages by building on
their strengths, rectifying their weaknesses, acquiring new opportunities, and knowing
threats to the disseminated messages. If a competitor, for example, uses messages similar
to those used by your organization, then this becomes a real threat, calling for concerted
efforts to firmly deal with it. This can be done by improving on various aspects of the
message, such as the level of creativity, attitude and perceptions.
Burnett and Moriarty note: “Marketing communication can only solve messagerelated problems such as image, attitude, perception, and knowledge or information”
(1998: 110). Marketing communication however, cannot directly solve problems related
to product price or availability. It can, however, mitigate the problem by changing the
consumers’ perception. Say, for instance, that the marketing plan for brewers of Bud
Light identifies the beer’s high price or limited distribution as a weakness. The marketing
communication plan may focus on both quality and value to justify price, and exclusivity
to justify limited distribution.
(ii) Determine objectives
Marketing objectives help establish the statement of marketing communication
objectives, which is why marketing communication objectives must be in line with the
overall objectives of the company. Let us say, for example, the marketing objective of the
company Jackson-Flights Inc might be to gain 40% market share. This means the
marketing communication objectives must be outlined such that they agree with JacksonFlights’ objective of gaining 40% share in the market. Burnett and Moriarty (1998: 11)
point out that the hierarchy-of-effects model can be used as a basis for planning
40
communication objectives. There are generally five categories of marketing
communication objectives:





Creating awareness.
Creating understanding.
Creating changes in attitudes and perceptions.
Creating changes in behavior.
Reinforcing previous decisions and attitudes.
Figure 004: The hierarchy of effects model
Source: FAO Corporate Document Repository
(iii) Target audience
After determining the communication objectives, the target audience is selected.
A message delivered to the wrong audience is doomed to backfire. In marketing
41
communication plans, target audiences are identified for special communication efforts.
Picking an example of children’s toys, Burnett and Moriarty explain that the target
market is primarily children (1998: 111). In contrast, the two scholars clarify that the
target audiences might include parents, grandparents, various governmental agencies
concerned with the product safety of children’s toys, consumer activist groups and
children (1998: 111-112).
One difference between target market and target audience is that the latter is
bigger than the former. On target audience, Percy (1997: 10) underscores the need to link
the general target audience with the overall marketing strategy, because the target
audience’s considerations are paramount as the marketing plan identifies whom to reach
as ultimate purchaser. Unlike traditional marketing communication methods, targeting in
IMC is particularly complex. Burnett and Moriarty explain the reasons behind this
complexity:
In IMC planning, a set of stakeholder audiences may be targeted because they all
need to know about or be involved in a company’s new product or promotion,
such as sales staff, resellers, employees, and the financial community for
publicity held companies. Because the audience may be much larger than
customers, IMC planning is often more complicated than traditional marketing
communication planning that target only the consumer audience (1998: 112).
(iv) Marketing communication mix
One of the most important functions of the marketing communication plan is to
determine the marketing communication mix, which is made up of activities or tools used
to achieve the marketing communication objectives. These tools include print advertising,
radio, coupons, trade shows, television, direct mail, and public relations. It should be
noted that the mix will differ among market segments and problem situations. In IMC
42
planning, Burnett and Moriarty (1998: 113) say that the strengths of the various tools are
matched against the problems and opportunities to decide which ones are best able to
meet the marketing communication objectives. Since IMC allows flexibility in the
choosing of the tools, it allows managers to match the objectives and message needs with
the available budget. The marketing communication mix mainly consists of the following
elements: advertising, sales promotion, personal selling, direct marketing and public
relations.
Advertising is any paid form of non-personal communication about an
organization, good, service, or idea by an identified sponsor. The paid aspect is important
because the space for the advertising message normally must be bought – except in
exceptional circumstances like a public service announcement where the advertising time
or space is donated. The non-personal aspects involve mass media such as TV, radio and
magazines, which are nonpersonal and do not have an immediate feedback loop as does
personal selling.
Sales promotion is a short-time offer designed to arouse interest in buying a good
or service. It is used in conjunction with advertising or personal selling. Sales promotions
are used as intermediaries as well as ultimate consumers. Coupons, rebates, samples, and
sweepstakes are some examples. Personal selling is a two-way flow of communication
between a buyer and seller, often in a face-to-face encounter, designed to influence a
person’s or group’s purchase decision. Its main advantage is immediate feedback as it is
known to be very persuasive and interactive.
Direct marketing is a promotional element that uses direct communication with
consumers to generate a response in the form of an order, a request for further
43
information, or a visit to a retail outlet. Communication can take such forms as face-toface selling, direct mail, catalogs, telephone solicitations, direct response advertising (on
print and electronic media) and online marketing. Like personal selling, direct marketing
often consists of interactive communication.
Public relations is a form of communication management that seeks to influence
the feelings, opinions, or beliefs held by customers, potential customers, stockholders,
suppliers, employees, and others about a company and its products or services. Many
tools such as special events, lobbying efforts, annual reports, press conferences, and
image management may be used by a public relations department although publicity
often plays the most important role. Publicity is a nonpersonal, indirectly paid
presentation of an organization, good or service. It can take the form of a news story,
editorial, or product announcement.
(v) Message strategy
It is a difficult task to determine exactly what to say to the target audience.
Message strategies depend on the nature and extent of the opportunities, as well as the
strengths, weaknesses, and threats identified in the situation analysis (SWOT). Different
target audiences have different message needs. These messages must be consistent with
the company, brand, or product’s overall message. This consistency is in line with the
unification of messages as a principle of IMC.
(vi) The media vehicle
After devising the message strategy, the company focuses on the media vehicle
that will deliver the message to the target audience. According to Burnett and Moriarty
44
(1998: 115), the development of the media strategy works hand-in-hand with the
development of the message strategy and the budget analysis. For example, a media
planner cannot create a strategy for a television commercial without a budget for TV
advertising. To create the media delivery system, media planning must include an
analysis of media options as well as a rating system that will determine which media
vehicle (s) to employ.
(vii) Budget
All will be doomed to fail if a budget is not put in place. It is the budget that
determines the media vehicle to use and to what extent. Ideally, Burnett and Taylor
(1998: 115-116) point out that the budget should not enter the planning process until after
the major strategic decisions have been made. After the overall marketing communication
budget is known, a certain percentage is assigned to each media vehicle.
For example, Wal-Mart, the sultan of retail business can set an initial promotion
mix to look like this: 40% advertising, 30% sales promotion, 25% personal selling and
5% public relations. From there, each category is broken into smaller and more specific
budget allocations. The advertising component, for instance, can have its 30% budget
allocation utilized as follows: 30% network television, 25% magazines, 20% newspapers,
10% radio, and 10% outdoor. The remaining 5% might go to direct mail.
(viii) Implementation phase
After drawing up the budget, comes the implementation of the marketing
communication plan. The success of such a plan depends on how well it is implemented.
Implementation requires three separate stages. First, the marketing communication
45
manager must make decisions regarding the types of media, times, sizes, talent,
photographers, and production schedules. Second, the manager must make sure all these
decisions can be implemented and there are people assigned to each task. Third, there is
need for the manager to monitor the activities to ensure all decisions were implemented
accordingly.
(ix) Evaluation
This last stage involves determining if the promotional effort met the stated
objectives. It is always recommended by experts that external agencies do the evaluation
because they have greater expertise with marketing communication measurement
techniques. The external agencies are also recommended because they lack bias and are
not part of the internal politics of an organization. Burnett and Moriarty (2002:117) state
the following about measuring the results of the marketing communication program:
First, a marketing communication manager must develop standards for
effectiveness so that the planners, those who implement the plan and evaluators
understand exactly what the promotion reasonably should have accomplished.
The standards should be as specific and measurable as possible. Second, the
marketing communications managers must monitor actual promotional
performance against objectives, often through consume surveys. Third, the
manager must compare performance measures against the standards to determine
if the performance was effective and efficient.
Once the evaluation is done, the planner is then able to identify deficiencies and
take the necessary corrective action. Also, the planner can use insights from the
evaluation to strategize for the next plan.
46
CHAPTER SEVEN
Barriers to IMC implementation
With
such
merits
as
its
message
unification
and
competitive
edge
notwithstanding, IMC’s successful implementation by many organizations has been
bottlenecked by some tactical and logistical barriers. Obviously, the emergence of IMC in
the 1990s elicited a lot of mixed reactions within the communications and marketing
sectors of different economies in the world, with the USA leading the pack. Still, the fact
that many corporations are reluctant in adopting this concept is hard to fathom. Why is
such a promising concept not being implemented? This is the crux of the matter. Thus, it
is fair to state that if necessary steps are not taken, IMC’s obituary will be written soon.
That is why it is important to understand the barriers that hinder the success of IMC.
Many organizations can come up with ways and means of overcoming these
barriers, some of which are deeply entrenched within their own management organs.
Marketing communication scholars identify several barriers that impede the smooth
implementation of IMC. I have consolidated the barriers to eleven as listed below.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Structural barriers.
Managers’ perception of integrated communication.
Compensation barriers.
Organizations think they are already integrated.
Short-term planning.
Lack of core capability in communication.
Lack of resources and cost.
Decision-making structure.
Boomerang effects.
Lack of understanding objectives.
Many managers don’t really understand the IMC process.
47
(a) Structural barriers
There are three structural barriers, namely organizational structure, organizational
character and technological barriers.
(i) Organizational structure barriers
Structures barriers are one of the leading obstacles to the implementation of IMC
in many organizations. According to Niemann (2005: 168), the root cause of this
problem is the inability by organizations to manage the interrelationships of
information and material among the various agencies involved in supplying
marketing communication services. While supporting this view, Percy (1997: 174)
outlines two specific structural factors that make this problematic: the low standing of
marketing communication and the fields of specialization.

Low standing of marketing communication
Percy notes that for many executives in top management, spending money on
marketing communication is a luxury that can be afforded only when all else is going
well (1997: 174). This tells us that top managers are rarely involved in the planning of
marketing communications. This task is left to those in lower levels of the
management such as brand managers who do the actual strategic planning. Their
proposals are then passed to their seniors for approval. This means that such junior
managers never have final responsibility for the budget. Schultz et al. (1994: 162)
explain that in many organizations communications are developed and implemented
by junior managers and inexperienced employees. Being at a low level in the
organizational order implies that communication is not accepted as being imperative.
48
Exacerbating this problem is the situation that more managers, both juniors and
seniors are empowered to make decisions. This decentralized decision-making
impedes development of IMC because the process of decision making is not
centralized, that is, it lacks the central command. Centralized decision-making is vital
in organizations as it allows easy coordination of daily operations, including
implementation of marketing plans.
Wretlind (1993: 2) enumerates three reasons why marketing communications are
undervalued: the function of marketing communications is too far removed
organizationally from the executive offices, the function’s performance is too hard to
measure, and the function does not relate closely enough to the sales function to be
accepted wholeheartedly. Regarding the first reason, Wretlind explains that company
executives regularly communicate with each other in the executive offices and
conference room. With marketing communication down the ladder of power
command in an organization means many of its otherwise important issues are
bypassed or given less weight. That it is difficult to measure the impact of
promotional messages tempts executives to ignore the performance of the marketing
communications department. Wretlind further explains:
…..top executives think of their business in broad terms. They like to establish
business goals. They like to see and approve statements of goals for the
functions that report directly to them. They like to measure broad function
performances against those goals. They like to measure performance in relation
to sales, return on investment and a number of other indicators. Marketing
managers tend to undervalue the function even though in most cases it reports to
them. They set goals that are largely relevant to sales, and like their superiors,
they favor the easily measures criteria that relate to sales - which, after all,
consumes the lion’s share of the marketing budget (1993: 3).
49

Barriers in the different communication specialization fields
Specialization is not new in organizations, as it is known to create efficiency in
the delivery of goods or services. However, when it comes to IMC implementation,
specialization does more harm than good, because these specialists rarely communicate
with each other. Niemann explains that specialists have their own budgets and their own
suppliers, and they jealously guard the areas they control (2005: 169). This is what
Schultz et al. calls the ego and turf battles between individuals and departments (1994:
158).
From another perspective, quoting Yarbrough (1996: 69), Niemann (2005), states
that most employees are reluctant to move to integration because they believe it will
require them to give up some of the power and the prestige to, which their present
positions entitle them. Holding certain positions or responsibilities is how such people
calculate their value to the organization. Showing that such power struggles in
organizations impede IMC programs, Burnett and Moriarty (1998: 64) give an example
of a University of Colorado study. The study found that the number one problem with
implementing integration was “turf battles” as specialties in their function silos tried to
protect their budgets and activities from encroachment by other marketing
communication professionals.
50
Figure 005: Keeping budgets = keeping power? This figure shows the behind the scene power
struggle in organizations as managers fight for budget control which is equated to power
acquisition. The “turf battles” are detrimental to IMC implementation.
Source: Burnett, John, and Sandra Moriarty. Introduction to Marketing Communication: An
Integrated Approach. Upper Saddle River, New Jersey: Prentice-Hall, 1998.
Figure 006: It also shows power struggle in organizations.
Source: Burnett, John, and Sandra Moriarty. Introduction to Marketing Communication: An Integrated
Approach. Upper Saddle River, New Jersey: Prentice-Hall, 1998.
51
(ii) Organizational character barriers
On organizational character, Niemann explains: “The traditional organizational
structure can impede the flow of information and ideas within the organization”
(2005: 170). Percy (1997: 176) highlights two organizational character barriers:
financial vs. customer emphasis, and the culture of the organization.

Financial vs. customer emphasis
This problem exists due to over-reliance on financial analysis to guide a
communication plan. Thus, many managers mistakenly allow financial considerations
to control communication objectives, as opposed to customer wants or needs. Being
the driving force, the customer should not be lost as the target of the integrated
communication in marketing, a thing which makes it crucial to understand how he or
she makes decisions. When a manager’s attention is more financially inclined than
customer focused, it follows that the organization environment would less likely
nurture integrated communication successfully. Earlier, it was said that consumer is
the place where integration takes place, an argument that explains why customer
wants and needs should guide communication intentions.

Culture of the organization
Percy notes that together, the manager’s own background and the culture of the
organization determine how managers think (1997: 176). Reacting to this view about
the culture of organizations, Niemann (2005: 172) says: “This potential problem is
then compounded in the integrated communication case when the culture of the
52
marketer must interact with the culture of the communication agencies.” Therefore,
different managers, especially from different organizations, will have varying views
of what makes effective communication. That is why organizations have their own
way of defining corporate culture, which every employee identifies with. According
to Percy, this inevitably leads to organizations developing such feelings as “this is the
way we do it”; “we have always done it this way” and “it works for us” (1997: 177).
(iii) Technological barriers
Technological barriers become a problem when there is an absence of databases
and accompanying technology to track and profile customers as well as other
stakeholders. Remember that the profile of a customer is very crucial as he or she is the
central figure that will be targeted by communication messages. Using technology to
keep track of, let us say, a consumer’s behavior will help predict his or her new tastes and
preferences, which will strengthen promotional messages in turn. The promotional
messages will be developed in such a way they meet consumer’s new tastes and
preferences.
(b) Managers’ perception of integrated communication
Managers with different marketing communication backgrounds and specialties
are always likely to have different perceptions about IMC. The same managers will also
have different perceptions about the roles of their various employees in IMC
implementation. Niemann (2005: 173) gives an example of the 1991 study among
marketing managers. The study found a variety of opinions about how integrated
communication should be achieved. Of those interviewed who responded that they were
53
familiar with the term “integrated communication,” about 60% seemed to look at the
responsibility of integrated communication planning the same way, and 35% felt that
they would collectively set communication strategies with all the appropriate agencies. A
further 25% felt that they were solely responsible for setting the integrated
communication strategy, but would then make specific assignments to appropriate
agencies and expect them to coordinate the execution.
Despite the general acceptance of IMC’s benefits by managers, the issue of
integration is likely to cause resistance to change, and hence hamper successful
implementation. Under the managers’ perception, we have resistance to change and
politics and powers.
(i) Resistance to change
Percy (1997: 178) argues that the most serious concern is the fear that the
manager responsible for IMC will not fully appreciate someone else’s area of expertise.
Schultz et al. (1993: 157) single out resistance to change within an organization as the
most powerful barrier hindering IMC adoption. The two problems, resistance and
decision-making, can be traced from the management level of organizations. For
example, Schultz et al. (1993: 158) note that while many marketing communications
experts agree that the pre-testing of television commercials is neither very predictive nor
very enlightening, many marketing communications managers do not want to change and
hence go ahead to pre-test. Such behaviors by managers encapsulate resistance to new
ideas in preference of the old ways of doing things or business.
54
(ii) Politics and power
Resistance to change can be caused by the quest for power, where those holding
certain positions fight to maintain the status quo. They see the idea of integration as a
threat to their positions in the organizations. This introduces in-house politics which
affect implementation of IMC programs. According to Niemann, employees, departments
and organizations want power and the rewards that go with it (2005: 175). And that is
why the employees will always resist any kind of change that can deprive them of their
power and other responsibilities.
(c) Compensation barriers
Remuneration systems are specifically changing in agencies due to structural
adjustments with some positions being scrapped and others being consolidated to one.
This has paved the way for the prominence of compensational barriers as those affected
seek to be highly compensated before they give up their positions as a result of structural
changes. So, the worries about salaries and promotion due to changes taking place in
many firms are a reality. Obviously, this dampens enthusiasm for IMC implementation
as well as low morale at place of work, either by managers or general workers.
(d) Organizations think they are already integrated
Some employees apparently believe the organizations they serve are already
integrated. Such thinking may block attempts to effect further integration. Take the case
where some employees responsible for public relations in an organization consult with
the human resources personnel in the organization before releasing a new campaign. This
55
rare interaction is what leads some employees to believe they are already in integration.
Duncan and Moriarty state that beyond such limited interaction, there is often no, or very
limited, communication regarding the overall communication objectives of an
organization (1997: 29).
(e) Short-term planning
Short-term planning foci are another barrier to IMC implementation. This kind of
planning focuses on the idea that new customer acquisitions weaken an organization’s
ability to build a loyal customer base. Therefore, it is advisable for organizations to go for
a long-term strategic planning approach for the implementation of integrated
communication because such a move aligns communication objectives with where the
organization is heading.
(f) Lack of core capability in communication
Lack of communication experts can be a devastating blow in the whole process of
promotional management. That is why it is dubious work for communication planning to
be run by a manager who is not conversant with the communication field. This kind of
arrangement can have far-reaching ramifications, especially in terms of disagreements on
the execution of a marketing communication campaign. The person in charge of
communication in an organization should have concrete knowledge in communication so
as to anchor communication objectives with those of the organization as a whole.
56
(g) Lack of resources and cost
Lack of resources is another barrier to IMC adoption. Kitchen says: “The real
weakness of IMC and the reason why it is entering critical times is the very weakness of
firms to invest resources in the marketing and communication process” (2005: 78). In line
with lack of resources as a barrier is the factor of cost. There is no doubt that IMC
implementation requires a huge budget, which is an additional expenditure to many firms.
The likely implications of huge budget for IMC implementation is that some other
equally crucial department in an organization will be under funded. Such a move can
cripple operations of a company. Thorson and Moore (1996: 35) note that there has been
a significant increase in manufacturers’ expenditure on sales promotions which accounted
in 1991 for 75 percent of combined advertising and promotional budgets, up from 58
percent in 1978. Therefore, coordination of complicated marketing activities takes much
time and trouble, which some managers will opt to avoid by disregarding IMC.
(h) Decision-making structure
Percy (1997: 173) says that the single biggest problem affecting IMC
implementation revolves around the decision-making structure of most marketing
organizations. In addition, he adds: “The structure or organizational make-up of a firm,
and the way managers think about or approach marketing questions frequently pose
problems in trying to implement IMC programs” (1997: 173). Most organizations use
vertical
communication
as
opposed
to
horizontal
communication.
Vertical
communication, that is, from the senior most executive to the juniors kills crossdepartmental interaction, a thing which hampers efforts geared towards implementation
of IMC. For implementation of marketing communications programs to work,
57
departmental heads need to work closely, which can be facilitated through horizontal
communication.
(i) Boomerang effects
Thorson and Moore (1996: 54) introduce another interesting barrier called
“boomerang effects.” The “boomerang effects” put a lot of emphasize on receiver
response, that is, how the consumer interprets the message. Explains Thorson and Moore:
If the receiver’s integration process results in a perception of consistency, then,
all is well – the message has been understood. But, if the perception of the
receiver is that there is inconsistency, the outcome is goal failure,
confusion, and possible undesired negative effect. Positive and negative
evolutions often feed back to the firm and may influence subsequent IMC
efforts. In the case of strong negative effect, the boomerang effect may occur,
posing a potentially serious problem for the company (1996:54).
(j) Lack of understanding objectives of IMC program
The understanding of an organization’s communication objectives is vital to any
successful implementation of promotional campaigns, including IMC plan. Those who do
not understand the objectives of an IMC program are an impediment to its
implementation. This makes sense because the most important thing in IMC
implementation is to understand a company’s communication objectives, which must
coincide with the overall objectives of the company.
(k) Many managers do not understand the IMC process
Many managers, especially those preferring to cling to the status quo, might resist
introduction of IMC programs because they do not understand how the IMC process
functions. Christensen et al. point out that such managers think that all IMC messages
58
sound and look alike (2005: 5). Therefore, managers who pretend that they know how the
IMC process works for the sake of retaining their jobs are a liability to their
organizations. If problems in IMC implementation are to be overcome, the communicator
must have the requisite knowledge and comprehension of the core organizational
functions. Also, he or she should have a close link with top management to ensure the
alignment of communication objectives with the strategic intent of the organization.
59
CHAPTER EIGHT
IMC Applications: The case study of Oxford Visitors and Convention Bureau
Background
Established in 1987, the Oxford Visitors and Convention Bureau (OVCB) operate
from the West Park Place in the City Oxford, Ohio. The OVCB came into being after the
City levied an excise tax of 6% to support its creation. According to Ohio Revised Code
(ORC) 5739.09 (B) (1), municipal corporations may levy an excise tax on lodging for
transient guests to operate a convention and visitors Bureau. The lodging tax is charged
as an additional tax when a room is rented in a hotel, motel, or bed and breakfast within
city limits. According to the Ohio Association of Convention and Visitors Bureaus
(OACVB), a convention and visitors bureau is a “destination marketing” organization.
The Bureau’s vision is geared towards ensuring that the City of Oxford is recognized as a
popular destination attracting thousands of visitors throughout the year.
The City of Oxford and its environs boast a mass concentration of entertainment
joints, unique shops, restaurants, festivals and of course the attraction of a college-town
atmosphere. The OVCB Strategic Plan 2005-2010 states the Bureau’s mission statement:
“To promote travel and publicize the City of Oxford to welcome the patronage and
business of conventioneers, tourists, and travelers into the City, for the benefit of the
City’s businesses and residents” (2004: 9).
Diana Durr, the OVCB Executive Director, explains that Oxford is an excellent
get-away location hosting a large number of mid-week meetings for business planning,
60
retreats and events by organizations from throughout the tristate region and beyond. To
achieve its vision, the Bureau partners with such stakeholders as the City of Oxford’s
Economic Development Department, the Oxford Chamber of Commerce, the Oxford
Retail Merchant Association, Miami University, local hotels and merchants, among
others.
Through the partnership, OVCB implements marketing programs aimed at
promoting the City to visitors and organizations to showcase Oxford. The Bureau
anticipates working closely with the yet to-be established Butler County Visitors and
Convention Bureau.
The City of Oxford was first planned in 1803 to anchor northwestern Butler
County, which at that time was wilderness. Its history has long been intertwined with the
Miami University legacy as a land-grant college. Located in Butler County, this
southwest Ohio college town is found 35 miles north of Cincinnati. According to the City
of Oxford Visitors and Convention Bureau Performance Audit 2004, compiled by Betty
Montgomery, the City has a population of approximately 22,000: 6,000 permanent
residents, including a large retirement community, and 16,000 students enrolled at Miami
University.
Transition
In 2003, the City of Oxford engaged the Auditor of State’s Office (AOS) to
conduct a performance audit of the OVCB. The audit’s overall objectives were to assess
selected areas of the Bureau and to develop recommendations based on comparisons with
61
peer bureaus and other best practice information. The Montgomery Audit assessed the
following selected areas:



Efficiency and effectiveness of OVCB operations;
Oversight and accountability; and
Governance options.
The City of Oxford Council adopted the Audit report on April 11, 2004, less than
two weeks after its recommendations were made public. The study made eleven
recommendations - all of which have been acted upon.
To set the ball rolling, the Board of Directors have been working towards
changing the status of the OVCB to an autonomous entity. The autonomous status would
be achieved through putting in place internal controls, adopting by-laws and completion
of a comprehensive personnel manual with policy and procedure guidelines. "The OVCB
staff are working with various entities to address the redesign of their marketing and
promotional energies towards new, exciting and profitable ventures,” says Diana.
The Montgomery Audit explains that in Ohio, and nationally, most convention
and visitor bureaus are not-for-profit organizations that work independently under the
auspices of a board of trustees. “The fundamental mission of a convention and visitor
bureau is the promotion of visitor and business travel, which generates overnight lodging
for a particular destination,” says the Montgomery Audit report.
The OVCB organization structure
The OVCB is governed by the Oxford Chamber of Commerce Board under the
Oxford City Council. The chamber is responsible for ensuring the following activities are
completed through OVCB:
62



Promoting conventions and tourism within the city;
Providing advice, direction and assistance to persons desiring to visit or hold
conventions in the City; and
Promoting the commercial, historical, political, and natural resources of the City
for tourism; and preparing, compiling, distributing and disseminating information
and date of all kinds which may be useful in furthering the purpose of the Bureau
(Montgomery 2004: 2).
The OVCB organization structure is comprised of the following seven governing
organs: Oxford City Council, Oxford Chamber of Commerce Board, Oxford VCB
Advisory Board, Oxford Chamber of Commerce Director, Oxford CVB Director, Oxford
VCB and Chamber of Commerce Administrative Assistant, and Oxford VCB Project
Assistant. Although the Chamber operates the OVCB, the City is responsible for Bureau
activities.
In practice, the City collects and distributes funds generated by the excise tax to
the Chamber to operate the OVCB. The Advisory Board approves the OVCB and action
plan for the upcoming year. Members of the Advisory Board are determined by the
Chamber Board and include designees from local motels and other hospitality and retail
sectors of the community. Other representatives sitting on the Board are from the City
Mayor’s office and Miami University.
The OVCB director is designated as the chief administrative officer of the
Bureau. He or she is responsible for promoting, marketing, and coordinating visitor
events and activities within an established budget. According to the City bylaws, the
director is required to work with the Advisory Board and to carry out programs as
directed by the Chamber Board. The OVCB director must serve as an ex-officio member
of the Chamber Board. He or she supervises the part-time administrative assistant in
planning and hosting events that promote the City. Also, the Bureau director develops
63
and provides monthly and annual progress reports to the Advisory Board, Chamber
Board, and City Council.
Figure 007: Illustrates the OVCB organizational and governing structure
Source: City of Oxford Visitors and Convention Bureau
Strategic plan for OVCB
According to the Oxford Visitors and Convention Bureau Strategic Plan 20052010, the Bureau aims at attaining three crucial goals. At the same time, the Strategic
Plan outlines a step-by-step action plan that would act as a road map in accomplishing the
goals in a timely way. These goals consist of the following:
64



Goal One: Develop the Oxford Visitors and Convention Bureau to a selfgoverning entity that reflects the newly adopted mission statement;
Goal Two: Evaluate whether the current events meet the revised mission
statement; and
Goal Three: Develop and implement a marketing plan to promote travel
and tourism in the greater Oxford area.
Of the three outlined goals, the third is directly relevant to Integrated Marketing
Communications, and thus relevant to this paper. Objective one of goal three touches on
developing brand statement, which is the guiding light in marketing undertakings. The
second objective aims at contacting local merchants and vendors, compiling data on room
availability, meeting room space and food and beverage capabilities. The data is also
compiled on audio visual resources, entertainment and recreational resources, and
transportation resources. Objective three focuses on developing a profile of a target client
based on information compiled from previous objectives targeting individual visits to
Oxford.
OVCB target market and audience
Initially when the OVCB rolled out its marketing program it targeted people
living within a two-hour drive radius. This was later expanded to a four-hour drive radius.
The Bureau targets such groups as the youth, professionals, fraternities and sororities and
Miami alumnae members, among others. Among the youth, the organization targets boys
and girls participating in soccer, baseball, ice hockey, and swimming camps during
summer time. Fraternities and sororities are targeted because members can hold their
annual leadership workshops in Oxford. Apropos these two groups, the Bureau aims at
selling Miami University as the ‘mother of fraternities’.
65
There are two professional organizations that are specifically targeted - lawyers
and teachers. Every July, between 70 and 100 members of the State of Ohio Attorneys
attend education training in Oxford. According to Diana, the OVCB Executive Director,
the attorneys prefer Oxford for the training because it is a day’s drive and a quiet setting.
In addition, Miami University’s Marcum Conference Center and Miami Inn offer
considerable meals and lodging rates. Availability of two golf courses within Oxford area
is another added reason why the attorneys choose the City to hold their conventions.
Members of the Miami Alumnae are also targeted because every summer there is
a reunion weekend which brings together the institution’s former students. During the
reunion weekend, the OVCB plays the role of decorating the City’s main streets with
colorful balloons, which gives the place an aura of beauty, attractiveness and liveliness to
visitors. Another important target is the annual car show, an event that brings together at
least 500 participants drawn from not only in Ohio, but also nationally and as far as
Canada.
OVCB marketing programs
It is a Herculean task promoting any area as a favorable tourist destination point.
Hence, promotional efforts call for proper planning, putting in place the right promotion
mechanisms and setting aside a substantial financial backing. Nevertheless, having proper
planning and enough funding is one thing, and succeeding in promotional campaigns is
another thing all together. The point here is good planning will be rendered useless if
promotional programs are non-effective or cannot achieve the set goals and objectives.
66
Likewise, it is tantamount to a waste of money in marketing efforts if promotional
activities are not effective enough. To promote the City of Oxford, one must improve the
existing marketing communications programs. There is no short-cut, because failure to
carry out an aggressive marketing campaign will not help develop the Oxford area as a
favorable visitor destination.
In promoting Oxford, the Oxford Visitors and Convention Bureau employs four
main marketing communications programs: advertising, personal selling, public relations
and sales promotions. Based on such indicators as revenue realized from the OVCB
activities, marketing communication budget and the manner of executing marketing
campaigns, the Bureau has done a good job, but can improve in some areas.
The Montgomery report says that the OVCB’s performance has been good as
compared to peer bureaus. In the report, OVCB is ranked second after the Athens Visitors
and Convention, which generated $271,529 as revenue in 2001. The OVCB’s revenue
was $137,212 followed by Hamilton Visitors and Convention Bureau with $81,228 and
Bowling Green Visitors and Convention Bureau with $40,353. The reason why Athens
eclipses other bureaus is because it serves not only the City of Athens, but the County as
well, which increases its revenue base.
Despite its small size and considering the meager resources at its disposal, the
Bureau has faired well. The Bureau has without failure managed to attract a sizeable
number of visitors to the city. Certainly, Oxford has the potential of attracting many
visitors and even netting higher revenues. Netting higher revenue is possible through an
aggressive marketing campaign. Such a campaign requires sufficient financial backing
and achievable marketing communication programs. Although, in the 2007 fiscal year,
67
advertising, personal selling, public relations and sales promotion tools were employed in
promotion activities, it appears these elements were not effective enough. This is mainly
attributed to financial constraints, which could not allow for a massive campaign.
In many organizations and corporations, especially in the USA, the role of
marketing communications department is never given the attention it deserves by top
executives. That marketing communications departments are not given due recognition
explains why they are also allocated little money for their promotion programs. The case
of the OVCB is not an exception. In the financial year 2006, for example, the marketing
communications department was only allocated $20,000. In contrast, the same fiscal year,
the Bureau netted $320,000 as income - thanks to promotion efforts by the under-funded
marketing communication department. What does such a scenario portend? If, with just a
mere $20,000 budget, the department managed to generate a substantial $320,000, then,
with more funding, recognition and prudent planning, the organization’s revenue can be
expected to increase considerably. In a nutshell, these figures demonstrate that with its
current budget, the Bureau’s marketing efforts are far from reaching their full potential.
Therefore, the tools that the Bureau employed in the four promotional campaigns
might not have been effective enough to make a great impact on the target audience. For
example, in the 2007 financial year, the OVCB paid $199 for advertisement in Baymont
Inn, an in-house magazine for one of the local hotels. Also, a half-page ad appeared in the
Ohio 2007 Travel Planner and Visitors Guide magazine. In personal selling, the Bureau
preferred promoting book signings at its local book stores. It was also involved in direct
contact with customers on regular basis for restaurant recommendations. In public
relations, Diana explains: “We attend the Fraternity Executive Association’s annual
68
conference as a sponsor and have a booth representing the OVCB and Miami
University.” Coupons are one of the many elements of sales promotion. The OVCB used
coupons by working in partnership with a local printing company to produce a coupon
incentive book. “We then get our standard advertisement in the book for free and we
distribute these books at all major events,” Diana adds.
Table 1.2: Oxford Visitors Bureau & Convention Bureau Budget for the Year 2006
Total Income
Marketing Communication Budget
$ 320,000
$ 20,000
Budget Breakdown
Welcome sign maintenance
Marketing folders
Information booths
Visitors guides
Business cards
Marketing mailings
Historical walking tour guide reproduction
Street banners
Event Support
Other expenses
Total Expenditure
In dollars
100
1,000
100
12,315
200
1,000
2,000
50
1,000
1,000
18,765
Source: Oxford Visitors & Convention Bureau 2006 financial report.
69
Figures 008 and 009 show a print ads developed by OVCB promoting Oxford city. The ads
appeared in some magazines in Ohio
Figure: 008
Source: Oxford Visitors & Convention Bureau.
Figure 009
Source: Oxford Visitors & Convention Bureau.
70
Figure 010: Shows the face of OVCB coupon savings booklet. Coupons is one of the elements of sales
promotion
Source: Oxford Visitors & Convention Bureau.
Figure 011: This Dubois Bookstore coupon appeared in the Oxford Area Coupon Savings
Source: Oxford Visitors & Convention Bureau.
71
Figure 012: Another coupon found in the Oxford Area Coupon Saving
Source: Oxford Visitors & Convention Bureau.
Figure 013: Skippers was not left behind in having its promotional coupons appear in the
Oxford Area Coupon Savings.
Source: Oxford Visitors & Convention Bureau.
72
The OVCB areas of improvement and the way forward
Areas for improvement
Taking a look at the marketing promotional tools that the OVCB has been using,
one cannot fail to see that there is a need to strengthen its campaign efforts for better
results. The Bureau places a number of ads in some local magazines, whose scope of
readership is small. There was also the Oxford Area Coupon Savings, with a distribution
confined to Oxford only. Placing a few ads in magazines and distributing coupons within
Oxford is not enough. Hence, the necessity of an achievable marketing campaign plan,
which requires sufficient funds for implementation. Still, a lot has to be done to ensure
that the message reaching the target market makes strong impact.
Furthermore, the OVCB has not attempted using the Integrated Marketing
Communications (IMC) as its promotion program. IMC provides an array of merits,
which any serious organization should embrace for marketing purposes. For instance,
organizations that employ IMC gain a competitive edge over their business rivals (Smith
and Taylor 2002: 15). That the OVCB has performed fairly in the past means that it is not
too late for the Bureau to seize the opportunity and reap the many benefits associated
with IMC. Two of the IMC hallmarks are the consistency and unification of the message
sent to the targeted consumers.
When promotion programs, either advertising or personal selling are used in
isolation as in the case of the OVCB, it means such messages are weak and tend to
confuse the target. This is due to the fact that the messages are fragmented and thus not
speaking in one voice as it happens in IMC. Obviously, the OVCB is in a competitive
73
business where similar organizations are engaged in promoting their respective cities.
This means that OVCB and its competitors are going for the same customers. In such a
scenario, then, a consistent, consolidated and crystal-clear message from OVCB has a
better chance of making greater impact on its target audience. This will give the Bureau
an upper hand when compared to its peer competitors such as Athens VCB, Bowling
Green VCB and Hamilton VCB.
The other challenge facing the OVCB is that, though its strategic plan has been in
place since 2005, it is not clear whether its implementation has been a success story. The
Montgomery Audit report of 2004 strongly recommended that the Bureau should develop
a three-year strategic plan that formally defines priorities and sets short and long-term
goals. The adoption of the Montgomery recommendations to develop a strategic plan
through, which it would achieve its goals and objectives was a positive development and
a step in the right direction. Here is the question: Is implementation of communication
marketing programs possible when there is no strategic plan in place? The
implementation cannot just start from nowhere. There must be a plan that spells out the
steps to be followed during the implementation process. These steps include identifying
the opportunity, determining objectives, identifying the target audience and the budgets,
etc.
The Montgomery report recommends that the Bureau should ensure that its
activities align with its mission with a call to shift focus from coordinating, hosting and
sponsoring community events to marketing and outreach. The report, however,
acknowledges that a significant amount of OVCB resources are allocated to planning,
coordinating and hosting community-oriented events, many of which may not necessarily
74
increase the number of out-of-town visitors to the City of Oxford. Further, the report
points out that a survey conducted by the International Association of Convention and
Visitors Bureaus (IACVB), member bureaus only spend 4.2% of total expenditures on
event-related activities, which is 25.8% less than the amount the OVCB spent in 2002.
Additionally, the report says the 2002 Membership Survey revealed that only 6% of
Convention Visitors Bureaus business is generated through events; the majority of CVB
business is generated through leisure and corporate travel at 56.6% and 22.6%,
respectively.
The way forward
Fragmented promotional messages are bound to fail as they lack the strength to
make the desired impact on the target audience. That is why the OVCB should consider
employing IMC in its future campaigns. The use of IMC will improve the Bureau’s
promotional efforts and such a move will ensure that the City of Oxford remains a
favorable place to visit. Without mincing words, the OVCB should revise its strategies
and consider embracing IMC, which will bring such benefits as greater efficiency,
stronger customer loyalty and added impact.
The small nature of the OVCB should not hinder the effectiveness of IMC.
Burnett and Moriarty say the following about this issue: “Small companies, particularly
new companies, have found that they have a real advantage in gearing up for integration
because there are usually not as bound by tradition or inertia” (1998: 65). In small
companies most work is organized around projects, not functions or departments,
resulting in a structure that avoids turf wars, according to Burnett and Moriarty (1998:
75
65). These disputes are the main drawbacks in IMC implementation by many
organizations. Thus, the OVCB should consider putting in place a promotional
management plan, which should follow the steps below as outlined by Shimp and
DeLozier (1986:570):







Situation analysis;
Marketing objectives;
Promotion budget;
Integration and coordination;
Promotion mix management program;
Implementation; and
Evaluation.
According to the Montgomery Audit report (2004: 10), the Auditor of State listed
seven phases that should be followed when developing strategic planning for non-profit
organizations such as the OVCB. These steps are as follows:







Determine readiness;
Articulate mission and vision;
Asses the environment;
Agree on priorities;
Write the strategic plan;
Implement the strategic plan; and
Monitor and evaluate.
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Figure 014: The promotion management process
Source: Shimp, Terence & W. Delozier, Promotion Management & Marketing Communication, 1986.
77
The promotion management for OVCB
(i) The situation analysis
The Oxford Visitors and Convention Bureau has been involved in marketing
efforts to bring visitors to this small City. This is domestic tourism. According to the
European Environment Agency, domestic tourism, in relation to a given country or
region is a form of tourism, wherein residents of the given country or region travel only
within those areas.
Therefore, the first step would involve determining business opportunities for the
OVCB. This would be derived from a comprehensive SWOT analysis of the
organization’s marketing communication plan. The main concern in this case will center
on problems and opportunities affecting marketing messages that the OVCB releases to
the target audience. Analytically, messages targeting either car show participants or
sorority members are not strong enough to convince those people to stage their activities
in Oxford. Also, these messages lack consistency and unification, hence such marketing
efforts are expected to yield the least results. One of the solutions to these problems is
ensuring that the promotion mix is well planned before execution.
Now, the daunting task confronting the OVCB wing of marketing communication
is how to design an Integrated Marketing Communications program that would have a
strong impact on the targeted audience, be they professionals such as attorneys from
Ohio, members of different fraternities or sororities. While developing the IMC program,
the OVCB has to address the following questions: (i) What communication channels or
tools are most appropriate for the target audience? (ii) What attitudes and perceptions of
the targeted people should be advocated? (iii) What resources are needed to conduct a
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successful IMC program? The Bureau has in the past focused a lot on coordinating,
hosting and sponsoring community events, however, these only reach people within the
City of Oxford. The Bureau should therefore, shift its focus to marketing and outreach,
which would reach other people outside the Oxford area, who might develop interest in
visiting the City.
(ii) Marketing objectives
Putting in place sound marketing objectives and identifying problems and
opportunities would help come up with the statement of marketing communication
objectives for the Oxford Visitors and Convention Bureau. It is clear that the Bureau’s
mission is to promote and publicize the City of Oxford as a favorable place to visit.
Therefore, the OVCB promotional messages should address these parameters: creating
awareness, creating understanding, creating changes in attitudes and perceptions and
reinforcing previous decisions and attitudes.
In creating awareness, the messages should be well-designed to form a positive
image about the City among the target audience, who in this case should be people living
outside the Oxford vicinity. The message should be free of any ambiguities in order to
make it easily understood. Also, the message should try to address any negative attitude
or perceptions that might have developed among some target audiences. For instance, if
some people believe that Oxford lacks recreational facilities, then the messages should
put forth a strong case for Oxford being a city with some of the best recreational facilities
in the region.
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This can be done through advertisements in local television and radio stations as
well as newspapers such as The Cincinnati Enquirer. Lastly, as recommended by the
Montgomery report (2004: 9), the OVCB should ensure its activities align with its
mission. Moreover, and above all, the Bureau should follow the Montgomery report’s
suggestion of shifting the focus of its operations from coordinating, hosting and
sponsoring community events to marketing and outreach.
(iii) Promotional budget
One of the reasons why the OVCB has experienced difficulties in its marketing
undertakings
emanates
from
financial
constraints
in,
which
the
marketing
communications department is allocated very little money for promotion activities. To
say the least, the department survives on a shoe-string budget, hence the reason why it
cannot embark on an aggressive promotion campaigns to sell Oxford as an ideal visitor
destination. The $20,000 allocated for marketing communications programs should be
doubled or tripled so that the Bureau can mount a serious promotion campaign to woo
visitors to the City. It is the budget that determines, which and to what extent each tool
will be used. After the overall marketing communication budget is known, then a certain
percent would be assigned to each tool.
For example, the OVCB can distribute the available promotion money as follows:
50% advertising, 20% direct marketing, 10% sales promotion, 15% personal selling and
5% public relations. From there, each category, let’s say advertising, is broken into
smaller and more specific budget allocations, which might look like this: 30% network
television, 25% radio, 20% magazines, 15% newspapers and 10% outdoor.
80
Let us assume that in the next financial year the department will be allocated
$120,000, then the budget breakdown for the five promotion mix outlined above will
look like this:
Table 1.3: Overall budget breakdown
Promotion Method
Advertising
Direct Marketing
Sales Promotion
Personal Selling
Public Relations
Total
Percentage
50%
20%
10%
15%
5%
Allocation in dollars
60, 000
24, 000
12, 000
18, 000
6, 000
120,000
Table 1.4: Advertising budget breakdown
Tool
Television
Radio
Magazines
Newspapers
Outdoor
Total
Percentage
30%
25%
20%
15%
10%
Allocation in dollars
18, 000
15, 000
12, 000
9, 000
6, 500
60, 000
(iv) Integration and coordination
All successful Integrated Marketing Communications programs require that the
various promotion mix elements work together to accomplish overall marketing
objectives. To achieve optimal effectiveness, advertising campaigns, sales promotion
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techniques, and publicity releases must be integrated with one another and coordinated
with personal selling efforts.
The success of the IMC programs by the OVCB would depend on the
combination of all the five promotion mix. A good mix would involve the following:
television and radio broadcasts, print materials in newspapers and magazines, and personto-person communication using managers in the OVCB’s marketing department. Others
could be sending promotional materials such as brochures about Oxford directly to the
target audience and staging such activities as contests, loyalty programs, coupons and
deals. The careful integration of broadcast, print, face-to-face, promotional activities and
sending materials directly to people will be essential in attracting more people to the City
of Oxford.
(v) Implementation
The primary targets are people within a 4-hour drive radius from Oxford who
might like to hold some activities in the City Oxford. Thus, the marketing communication
program by the OVCB should be designed to tell people that Oxford is a good visitor
destination due to a number of reasons such as availability of recreational activities and a
quiet environment. The messages sent to the prospective audience should speak in one
voice, that is, they should have consistency and unification. This means what is said in a
radio ad should agree with the message contained in a direct mail or a press release.
Unification of voice ensures that the target audience understands the message clearly, and
may arouse their interest to visit Oxford.
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Accomplishing these tasks, however, requires a lot of creative thinking, because it
is creativity that will convince people to visit the City of Oxford. For example, the
Bureau can organize a giveaway contests, in which participant could win a prize, let’s
say, a T-shirt with OVCB logo or a paid dinner in one of the Oxford’s hotels. It should,
however, be noted that the success of this plan will depend on how well it is
implemented. This means that the manager in charge of communication at the OVCB
must make such decisions as types of media and the time when promotions as ads will
run. For example it would be disastrous to advertise during winter as this is the period
when people are mostly indoors with minimal outdoor activities and movements. The
manager should also ensure that the decisions he or she has made are implementable. He
or she should also monitor these activities so as to ensure all decisions are implemented
to the letter.
(vi) Evaluation
It is absolutely necessary to measure the effectiveness of all the communication
programs. If there were some deficiencies, then, corrective measures should be taken
without waste of time. I suggest that the OVCB takes a six-month period before engaging
in measuring effectiveness of its promotion campaigns. For instance, determining
whether there has been an increase of visitors to the City of Oxford as compared to the
same period of last year would tell whether the communication programs were effective
at all. The evaluation should also determine whether the promotional efforts attained the
laid down objectives. On measuring the effectiveness of its promotion campaigns, the
Montgomery report states: “The OVCB should develop a method to obtain, analyze, and
83
report the results of performance. The Bureau should work with the Ohio Department of
Travel and Tourism (ODTT) to obtain economic impact statistics for the City of Oxford,
which can be used to generate return-on-investment calculations” (2004: 12).
The ODTT statistics can help tell who are the return customers or visitors, and
this will help develop marketing communications that are meant for such loyal
customers. Developing such messages is good because it is always easy to retain a
customer than to acquire a new one. A lot of money will be used in acquiring a new
customer as compared to retaining an old one, hence why the OVCB should recognized
and reward its return customers through such schemes as discounts on lodgings and
meals.
An increase in promotion budget by $100,000 as I have suggested above would
greatly help in strengthening the Bureau’s main areas of weaknesses. For example, one of
the major challenges facing the City of Oxford is inadequate conferencing facilities. The
Miami University’s Marcum Conference Center has a limited capacity so that it cannot
accommodate a big number of people who wish to hold their meetings in the City. That is
why the additional $100,000 can help in improving the capacity of the Conference
Center. The expansion of the Marcum Center means that organizations with big
membership are able to hold their conventions in the City of Oxford because the
conference facilities have enough capacity. Thus, more people coming to the City of
Oxford means an increase in revenue for the Bureau, which would be attained through
increased bed tax. This revenue can be used to improve service delivery to people of
Oxford among other ventures that would benefit the community.
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CHAPTER NINE
The future of IMC and conclusion
Absolutely, there is no doubt that the IMC concept has a very bright future as
demonstrated by the fact that many organizations have embraced it despite the raging
debate which has been going on for the last decade regarding the concept’s viability. The
main challenge facing the implementation of IMC emanates from infighting within
leadership structures of many organizations. Burnett and Moriarty (1998: 65) see the
future of IMC based on the following reason: “At least one reason for the growing
acceptance of IMC has been the emergence of reengineering, a process that businesses
use to break down rigid, departmental structures to create more fluid and flexible
organizations that can respond quickly to marketplace challenges.”
In addition, the future of this concept depends on a number of solutions. First,
there is the need for organizations to create the position of Director of Corporate
Communications within the top-level executive. The director should be a qualified
personality in the communication field. At this level, the director will be in a position to
articulate issues affecting the marketing communications department. Wretlind (1993: 6)
says that this kind of arrangement provides a direct and short channel through which
valuable information and orientation can flow in both directions.
The other solution would be to develop measurements that tell executives what
they need to know, as they are mostly frustrated in their efforts to measure the
performance of the marketing communications efforts. In support of the idea of
measuring these efforts, Wretlind stresses:
85
The primary device through which to measure marketing communication performance in
relation to its true purpose is an annual survey of customers and of prospects by means of
questionnaires. Some firms have tried this, usually with unsatisfactory results, because
the surveys ask them wrong questions. They ask the wrong questions because they are
based on wrong assumptions about the purpose of marketing communication” (1993: 7).
There is also the need for the marketing communication department to get closer
to the sales function. This can be achieved if the staff working in the department get
acquainted with some field sales persons on a first-time basis. Here, the marketing
communication people should talk with salespeople about the work and problems they
face. They should find out what the salespeople like or dislike about the support from
marketing communications. Wretlind (1993: 9) says the marketing communications
people should ask their sales counterpart what they would like better.
So far, it is clear that IMC is good though it is facing some teething problems
mostly emanating from management structures. This is mainly due to fear associated with
change of the status quo as a result of integration. The process of integration brings
consolidation of departments, a move that causes resistance among some managers who
fear losing their position in a new management dispensation. This resistance explains
why the apathy in IMC implementation by many organizations.
It can be said without fear of contradiction that efforts to sabotage the benefits of
IMC will no continue for long. This is because companies will not tolerate such
maneuvers that stall IMC implementation when their competitors are reaping its benefits.
It is a matter of time before this management resistance comes to naught. Another good
step would be to educate managers with respect to the importance of IMC before
deciding to use it. The education should come in the form of training through workshops,
a method that would positively prepare managers to embrace the IMC concept.
86
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