Integrated Marketing Communication Essay Example

clients' promotional needs. These agencies positioned themselves as MIMIC agencies. Some also entered non-advertising areas to retain control over clients' promotional programs but struggled to offer significant value beyond their expertise in advertising.The advertising industry quickly recognized that MIMIC was not just a trend but a concept with its own perspective. Terms like new advertising, orchestration, and seamless communication were used to describe the integration idea. The American Association of Advertising Agencies (the as) created a task force that developed an early definition of MIMIC: A marketing communications planning concept that evaluates the strategic roles of different communication methods such as general advertising, direct response, sales promotion, and public relations. These disciplines are combined to bring clarity, consistency, and maximum impact in communication. The as' definition emphasizes utilizing all forms of promotion for optimal communication impact. Some proponents of the MIMIC concept argue for considering all sources of brand contact with customers and prospects. G. Schultz (2004) advocates for a comprehensive approach called MIMIC which involves planning marketing and promotion programs while coordinating various communication functions. This approach requires firms to develop a total marketing communications strategy that recognizes how all marketing activities communicate with customers beyond just promotion alone.The combination of messages and contacts that consumers receive, such as media advertisements, direct-marketing efforts, publicity, sales promotions, internet messages, as well as factors like price, package design, point-of-purchase displays, and store type influence the way they perceive a company and its brands. MIMIC aims to align all marketing and promotional activities in order to project a consistent and unified image in the marketplace. Luxury perfume brands utilize distinct packaging and brand names along with high

prices to suggest quality and an upscale image – this idea is further reinforced through advertising. These brands typically use a selective or exclusive distribution network to enhance their overall image. Many companies view MIMIC as a means to ensure consistent messaging about the company and its brands. For these companies, the MIMIC approach improves upon the traditional method of treating communication elements as separate activities. However, marketers are starting to realize that MIMIC offers more than just ideas for integrating marketing and promotional programs. The MIMIC approach also helps companies manage their marketing and promotional efforts by identifying the most effective methods for reaching customers and other relevant stakeholders (e.g., employees, suppliers, investors).The growing importance of MIMIC can be attributed to various reasons, including the acknowledgement by marketers that strategically integrating communication functions is more valuable than functioning autonomously. Coordinating marketing communication efforts allows companies to avoid duplication, capitalize on synergy among various tools, and develop more efficient and effective programs. MIMIC advocates believe it provides an easy way for companies to maximize their marketing and promotion investments. The adoption of MIMIC continues to grow as marketers adapt to changes in demographics, lifestyles, media habits, and buying patterns among consumers, as well as advancements in technology and new formats for reaching them. For example, the expansion of cable television and digital satellite systems has significantly increased the number of channels available to subscribers. Some channels now offer 24-hour direct-shopping networks or infomercials that resemble TV shows instead of advertisements. Additionally, the advent of the World Wide Web has introduced online services that not only provide information and entertainment but also allow users to shop

for a wide variety of products and services through a previously non-existent medium.Marketers have responded to the changing communication environment by creating interactive websites for advertising and sales. They have had to expand beyond traditional media options to adapt. MIMIC has seen rapid growth due to several factors. One factor is the shift in power from manufacturers to retailers, who demand larger promotional fees and allowances. Database marketing has also gained traction, with marketers investing in databases for targeted advertising through telemarketing and direct mail. Customer relationship management programs have been implemented to reward loyal customers, increasing costs. Airline loyalty programs are an example of costly promotional programs. The demand for accountability and focus on ROI has led advertisers to explore tools for improving cost-benefit relationships. Knowing the effectiveness of advertising programs is no longer acceptable without alternative options available.Companies are allocating more funds to sales promotions, direct-marketing, and internet expenditures to assess their communications. The rapid growth of the internet has significantly impacted the media landscape, making it similar to television. This, along with interactive TV, wireless internet, and other new media platforms, has led marketers to reconsider their traditional strategies. Technological advancements like digital video recorders and Tivoli have caused a decline in TV commercial audiences, causing advertisers to redirect funds towards internet advertising, product placements, and integrations. These changing media habits have prompted marketers to adapt.

In summary, younger generations are reading newspapers and general-news magazines less than their parents did. Newspapers have experienced a notable decrease in readership and advertising revenues. Younger audiences prefer obtaining news from the internet instead. While general-news magazines have also seen a decline in circulation, special-interest magazines

are gaining popularity. This significant shift in the media landscape highlights the importance of adopting a MIMIC approach (Multiple Interactive Media Integrated Communication) when it comes to marketing communications.

Previously, Chevrolet allocated a major portion of its media budget to one program. However,the rise of cable TV and the internet has diversified the media landscape significantly.The United States now has over 400 cable TV channels, leading to a decrease in network TV audiences. Cable TV now has a larger audience than network TV. Media consumption is at an all-time high, with cell phones being used in unexpected places like bathrooms. The integration of products and advertisements has greatly increased. In the 1990s, media planners had around 1,250 scheduling options on television alone. By the 2000s, this number rose to a staggering 1.25 quadrillion with the availability of 100 broadcast and cable channels. Today, with over 400 channels, the number of choices is immeasurable.

Traditional advertising methods such as public relations, sponsorships, event marketing, and product placements have taken on a different perspective due to new media platforms like the Internet, interactive TV, wireless devices, and digital content forms. Major TV advertisers like General Motors, Procter & Gamble, and American Express are allocating more funds to "new" media rather than traditional advertising methods as revenues from traditional media decline while new media revenues skyrocket at an unprecedented rate. This shift is supported by ample evidence.

Procter & Gamble previously allocated 90% of its advertising budget to television in the past.However, less than 25% of the budget for some new products today is allocated to TV advertising. The remaining funds are directed towards sales promotions, new media initiatives, direct marketing,

and related activities. These traditional media channels have been widely used for decades and have well-established advertising models despite advancements in digital television and online newspaper editions.

On the other hand, non-traditional media channels have emerged more recently as alternative ways to reach the target audience. These include social media platforms like Facebook, Instagram, and Twitter; search engines such as Google; online video platforms like YouTube; and mobile advertising. These channels offer more targeted and interactive approaches to advertising.

Integrated media refers to the combination and coordination of various traditional and non-traditional media channels to create a unified message across different platforms. This involves strategic planning and the use of technology to integrate messaging efforts. Companies like McDonald's and Ford have shifted a significant portion of their advertising budgets towards these non-traditional media channels in recent years.The recognition that solely relying on traditional media is insufficient to effectively reach target audiences has driven a change in advertising strategies. Marketers now understand the importance of using a variety of media channels to adapt to the evolving media landscape. The Media Integration Model for Integrated Communication (MIMIC) provides a framework for managing this changing environment and establishing communication objectives. This shift reflects the need to adopt a more comprehensive approach to reach modern consumers. While certain traditional media have remained consistent, others have undergone significant changes, such as public relations becoming integrated with marketing-oriented communication elements. Similarly, product placements and sponsorships have also evolved in scope and frequency.College football games now have different names. Direct mail and catalogs have transformed into various forms of direct-response advertising, including infomercials, home shopping channels, and online retail shopping. The ever-growing list of

new media includes wireless tools, podiatrists, blobs, search ads, product integrations, video on demand, and behavioral targeting. These media forms have all evolved in different ways but offer marketers a wider range of options to choose from. When considering these new options, the goal is to create an effective and efficient media strategy that understands their impact on receivers individually and as a whole. Additionally, as the environment and media continue to change, planners must recognize that understanding and managing the media process will become increasingly important. Despite its many benefits, Integrated Marketing Communications (IMC) faces barriers such as resistance to change, difficulties in communicating with diverse target audiences.

Functional silos within organizations can stifle creativity and cause conflicts in timeframes due to rigid organizational structures where managers protect their budgets and power.Unfortunately, there are structures in place that separate communication, data, and managers from each other. For example, the PR department does not typically report to marketing, and the sales force rarely interacts with advertising or sales promotion teams. This lack of cohesion can cause problems, such as sales representatives being unaware of new promotional offers. Additionally, internal power struggles between managers from different departments can worsen these issues as they resist others influencing their decisions or budgets. This raises two important questions: What should a truly integrated marketing department look like? And how will this integration impact creativity? In an ideal setup, it shouldn't matter whose creative idea is being pursued, but often it does. Advertising agencies may be less enthusiastic about developing ideas from PR or direct marketing consultants. However, integration can limit creativity by requiring all sales promotions to align with the

overall marketing communications strategy. While this may suppress excessive creativity, it can also present a greater and ultimately more fulfilling creative challenge when working within a tightly integrated brief.

Time horizons pose a barrier for MIMIC since different time scales may clash with advertising and sales promotions aimed at shorter-term goals. However,MIMIC planning can accommodate both improving the brand and increasing sales objectives.

Unfortunately, MIMIC planning is not commonly used due to a lack of expertise and commitment among managers and agencies. Understanding the barriers to implementation is the first step in successfully implementing MIMIC, which includes a strategic understanding of the product and market, changes in technology, buyer attitudes and behavior, and anticipated competitor moves.

Brands are now viewed as inseparable from the vision, capabilities, personality, and culture of the corporation. The brand focus encompasses elements such as logo, corporate identity, tagging, style, and core message. The consumer experience includes product design and packaging design as well as the retail store experience and service.

The text also highlights various tools within the field of communications for promotional activities and integration. Communications tools include advertising, direct marketing through online channels such as social media platforms. Promotional tools encompass trade promotions, consumer promotions,personal selling,and database marketing along with customer relationship management (CRM), public relations,and sponsorship programs.Integration tools consist of softwareand analytics that track customer behaviorand campaign effectiveness.

The internet has drastically transformed business practices which has led to alterations in approaches to segmentation,targeting,and positioning strategies for productsand services.The purpose of business remains the same, which is to bring economic and social value. However, marketing strategies have changed to prioritize connectedness. In the past, marketing was seen as one-way broadcasting, but

now it is viewed as a two-way conversation between marketers and customers. This conversation is made possible through the use of different components of the marketing mix, such as promotion.

Promotion involves various activities like advertising across different media platforms, sales promotion, personal selling, Internet marketing, sponsorship marketing, direct marketing, database marketing, and public relations. By integrating these promotional tools with other elements of the marketing mix, businesses can gain a competitive advantage.

The MIMIC (Master Integrated Marketing Communications) process starts with the marketing mix that includes different types of marketing efforts like advertising and sales. Without a complete MIMIC plan in place, there will be no integration or harmony between the company and its customers.

Integrated marketing is based on a master plan that coordinates efforts in all aspects of the marketing mix. This plan includes situation analysis, setting objectives for marketing activities, allocating a budget for those activities,strategizing ways to achieve those objectives,taking actions accordingly,and evaluating performance afterward.

The goal of integrated market communications is to ensure consistency in messaging as well as utilizing both online and offline channels effectively for promoting products or services.Times have changed, and the effectiveness of simply selling whatever can be made has diminished. Instead, companies now utilize online marketing channels such as e-marketing campaigns (SEO, pay-per-click, affiliate marketing, email marketing, banners) as well as various web-related platforms like blogging, microblogging, social media sites, internet radio, and internet TV. These channels are vital for integrated marketing communication programs that encompass all elements of the marketing mix (product, price, place, promotion). The significance of these plans lies in the current technological advancements and the shift of channel power to consumers from manufacturers through

retailers. Integrated Marketing Communications is a data-driven approach that leverages nonuser insights to create strategies for fostering stronger brand-consumer relationships. It entails using a combination of both online and offline channels to engage consumers at key touch points while comprehending their consumption patterns across different media types. Regression analysis and customer lifetime value play significant roles within this approach since understanding consumer desires is crucial throughout this process.The alignment of product characteristics with consumer preferences and the importance of the "buying experience" both significantly impact consumer purchasing decisions. It is crucial to consider not just the price, but also the overall cost to satisfy a consumer's want or need. This cost includes factors such as time spent traveling, conscience-related considerations, guilt associated with not fulfilling certain obligations, and the investment made by consumers to mitigate risks. Moreover, convenience plays a key role in purchase decisions. Rather than focusing on place alone, it is important to prioritize convenience in terms of the buying experience and then align that with an appropriate delivery mechanism. This involves considering various aspects including physical or virtual location, ease of access, transaction service time, and hours of availability. Similarly, effective communication is essential. Instead of solely emphasizing promotion efforts, it is crucial to adopt a comprehensive approach that utilizes multiple mediums for communication together in order to present a unified message and establish a feedback mechanism for two-way communication. Additionally, it is important to understand non-traditional mediums like word-of-mouth marketing and how they can influence consumer perceptions. The goal should be to ensure consistent messaging throughout the day across different channels so that each message reinforces earlier images in the customer's

mind.The aim of selecting integrated marketing communications elements is to create an effective and consistent campaign that reaches across various media platforms. Some marketers prefer ads that appeal to a wide audience, while others focus on targeting specific audiences. Advertising campaigns receive a significant portion of marketing funds, with research budgets also dedicated to these elements. Once key materials are tested, the findings can be applied to other contact points like letterhead, packaging, logistics, and customer service training. Personal selling is a popular form of integrated marketing communication that involves face-to-face persuasion between a seller and buyer. It is often considered the final stage in marketing and can be categorized as either retail sales or business-to-business selling.A crucial step in developing a successful Integrated Marketing Communications plan is conducting a promotions opportunity analysis. This analysis involves identifying target audiences for a company's products and services, as well as determining the communication strategies needed to reach these audiences. By conducting a thorough analysis and obtaining accurate information about the target audience, marketers increase their chances of delivering a message that achieves the desired outcomes. The process of developing a promotions opportunity analysis consists of five steps: conducting a communication market analysis, assessing competitors and opportunities, identifying target markets and customers, positioning the product, and establishing communication objectives.

The next step is to develop brand awareness. This includes increasing category demand, changing customer beliefs or attitudes, enhancing purchase actions, encouraging repeat purchases, building customer traffic, enhancing firm image, increasing market share, increasing sales, reinforcing purchase decisions, and creating a communications budget.

There are several factors that affect the relationship between promotional expenditures and sales. These include the objective of

the promotion itself (such as increasing sales or building brand awareness), threshold effects (the point at which additional spending does not result in significant increases in sales), carryover effects (the impact of previous promotions on current ones), wear-out effects (when repeated exposure to a promotion diminishes its effectiveness), decay effects (how long the impact of a promotion lasts), and random events that can influence consumer behavior.The fourth step in a promotions opportunity analysis program involves developing a comprehensive communication strategy for the company and its products. This strategy establishes a long-term direction for all marketing activities, aligning with the overall message and opportunities identified in the communication market analysis. It is important for these strategies to be directly linked to the firm's marketing objectives and feasible within the allocated budgets for marketing and communications. Unless significant new events arise after implementation, these strategies typically remain unchanged.