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Integrating Communications Peggy Simcic Brønn 1 Key Words Stakeholders Relationships Reputation/Image Competitive Advantage Cause or Mission Marketing Peggy Simcic Brønn 2 Marketplace Trends Proliferation of brands and products 4 P’s no longer provide USP Too many messages Increasing distrust of business Deparmentalization/specialization Peggy Simcic Brønn 3 Marketplace Trends Decreasing message impact and credibility Decreasing cost of using databases Increasing client expertise Increasing mergers and acquisitions of MC agencies Increasing cost of mass media Increasing media fragmentation Traditional MC and IC Traditional New Transactions Relationships Functional organization Cross-functional org. Specializations Core Competencies Mass marketing Data-driven marketing Stable of agencies CMO agency Customers Stakeholders Mass Media Purposeful interactivity Ads & Promotions Strategic consistency Cause Marketing Mission marketing Adjust prior plan Zero-based planning Peggy Simcic Brønn 5 IC Cross-functional approach for managing profitabale, long-term relationships Bringing people and corporate learning together In order to maintain strategic consistency in all communications Encourage and facilitate purposeful dialogues with customers and other key stakeholders Create awareness and commitment to the corporate mission. Peggy Simcic Brønn 6 Relationship Building Key element of IC Not just with customers Knowing Trusting Consistent Accessible Responsive Affinity Likeable Committed Constructs determining strength of relationships Peggy Simcic Brønn 7 Communication Relationships Stakeholder Support Brand Equity Peggy Simcic Brønn 8 Planned Messages Say Product, Service Messages Unplanned Messages Confirm Do The Integration Triangle Does behavior confirm what organization is saying? Duncan, T. and Moriarity, S., Driving Brand Value Drivers of IC Focus on stakeholders Focus on relationships more than transactions Strategic consistency process Interactive process Mission Marketing process Peggy Simcic Brønn 10 Drivers of IC Zero-based planning process Cross-functional team infrastructure Core competency infrastructure Database infrastructure IC agency infrastructure Peggy Simcic Brønn 11 IC Really about integrating all communications functions Marketing Organization Management Peggy Simcic Brønn 12 Strategy Identity Image Common Starting Points Management Communication Organizational Communication van Riel, C., Principles of Corporate Communications Marketing Communication Evolutionary Integrated Communications Stage 1 Integration: Awareness Proposition: the greater the degree of change on the existence of specific market pressures, the grater the likelihood that integrated marketing communication will emerge Stage 2 Integration: Image Integration Need for consistency message, look and feel. Duncan and Caywood Stage 3 Integration: Functional Integration Greater degree of involvement among still traditionally separated areas. Stage 4 Integration: Coordinated Integration Barriers starting to disappear, each function becoming more equal. Stage 5 Integration: Consumer-Based Integration The value of a refined customer and prospect database. Elements begin to work together. Stage 6 Integration: Stakeholder-Based Integration IMC becomes more broadly defined to become integrated communications. Stage 7 Integration: Relationship Management Integration A fully integrated communication strategy reaching all stakeholders brings communications professionals into contact with all management functions. CORPORATE COMMUNICATIONS Management Communication senior managers to internal and external groups Marketing Communication advertising, direct mail, personal selling, etc.. Organizational Communication PR, public affairs, investor relations, corporate advertising, etc... Peggy Simcic Brønn 18 MANAGEMENT COMMUNICATION Develop a shared vision of the company/organization Establish and maintain trust in leadership Initiate and manage change process Empower and motivate employees Peggy Simcic Brønn 19 ORGANIZATIONAL COMMUNICATION All forms of communication used by organization other than marketing communications Most commonly Public Relations Directly primarily at ‘target groups’ (stakeholders) other than customers Less obvious in attempts to influence behavior Spend about 1/5 the amount spent on marketing communications Peggy Simcic Brønn 20 MARKETING COMMUNICATION Communication efforts supporting sales of goods/services Advertising usually recognized as dominant element Largest share of communications budget used here Peggy Simcic Brønn 21 Marketing Communications Tools Planned Communication Directed Toward Consumers Primarily Advertising Sales Promotion Product Public Relations Direct Mail Sponsorship Personal Selling Peggy Simcic Brønn 22 Public Relations Communication Often Unplanned Communication Due to Stakeholders Raising Issues, not Organization Media Relations Employee and Member Relations Community Relations Public Affairs and Government Relations Consumers, Environmentalists Investor Relations Peggy Simcic Brønn 23 INTEGRATING COMMUNICATION So that management can harmonize all consciously used forms of internal and external communication as effectively and efficiently as possible in order to create a favorable basis for relationships with groups upon which the company is dependent. Cees B. M. van Riel Peggy Simcic Brønn 24 Barriers to Integration Ego and turf battles Uneven compensation and reward systems Lack of corporate discipline to put customer first Absence of databases and accompanying technology Lack of an internal communication system to help with cross-functional planning Lack of a core competency in marketing communication Peggy Simcic Brønn 25 Barriers to Integration Lack of understanding of importance of stakeholders Lack of agreement on marketing and marketing communication objectives Overdependence on mass media Lack of understanding of how to use one-toone media Functional areas not used optimally for overall good of organization in building and sustaining customer relationships Peggy Simcic Brønn 26 Organizational Differences Marketing Public Relations - Integrating PR with Advertising Public Relations Under Marketing Integrate all Communications Functions Using Marketing Theories for Planning and Managing Integrating all Communications Functions Through Public Relations Function Obstacles to Integration and Potential Solutions Obstacle Solution • Turf battles between functional areas Re-engineering • Managers’ background/expertise Hire generalists rather than specialists • Organizing and planning an integrated marketing effort Clear goals; unified approach • Information sharing Strong information culture • Leadership and Infringement - budgets - public relations Zero based communication planning • Ethical issues Clear mission and policy directions Recognizing stakeholder base Benefits of Integration Gives a better process for acquiring, retaining and growing customers Adds value through facilitating customer recourse, feedback, recognition Enables brands to be more knowledgeable of customers and therefore more responsive Gives a process for making brand communications and company more human, personal Peggy Simcic Brønn 29 Ensuring internal understanding and external acceptance Openness Clarity Internal Environment Attention Company External Environment Understanding Strength Acceptance Schultz, M., Ervolder, L., Hulten, J., ‘The Integration Between Corporate Culture, Identity and Image: The Emergence of a New Industry?, Working Paper, Copenhagen Business School (1997). 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