Peggy Simcic Brønn1 Integrating Communications

Peggy Simcic Brønn2 Key Words l Stakeholders l Relationships l Reputation/Image l Competitive Advantage l Cause or Mission Marketing

Peggy Simcic Brønn3 Marketplace Trends l Proliferation of brands and products l 4 P’s no longer provide USP l Too many messages l Increasing distrust of business l Deparmentalization/specialization

Marketplace Trends l Decreasing message impact and credibility l Decreasing cost of using databases l Increasing client expertise l Increasing mergers and acquisitions of MC agencies l Increasing cost of mass media l Increasing media fragmentation

Peggy Simcic Brønn5 Traditional MC and IC l Transactions l Functional organization l Specializations l Mass marketing l Stable of agencies l Customers l Mass Media l Ads & Promotions l Cause Marketing l Adjust prior plan l Relationships l Cross-functional org. l Core Competencies l Data-driven marketing l CMO agency l Stakeholders l Purposeful interactivity l Strategic consistency l Mission marketing l Zero-based planning TraditionalNew

Peggy Simcic Brønn6 IC l Cross-functional approach for managing profitabale, long-term relationships l Bringing people and corporate learning together l In order to maintain strategic consistency in all communications l Encourage and facilitate purposeful dialogues with customers and other key stakeholders l Create awareness and commitment to the corporate mission.

Peggy Simcic Brønn7 Relationship Building l Key element of IC l Not just with customers KnowingResponsive TrustingAffinity ConsistentLikeable AccessibleCommitted Constructs determining strength of relationships

Peggy Simcic Brønn8 Communication Relationships Brand Equity Stakeholder Support

Say ConfirmDo Planned Messages Unplanned Messages Product, Service Messages The Integration Triangle - Does behavior confirm what organization is saying? Duncan, T. and Moriarity, S., Driving Brand Value

Peggy Simcic Brønn10 Drivers of IC l Focus on stakeholders l Focus on relationships more than transactions l Strategic consistency process l Interactive process l Mission Marketing process

Peggy Simcic Brønn11 Drivers of IC l Zero-based planning process l Cross-functional team infrastructure l Core competency infrastructure l Database infrastructure l IC agency infrastructure

Peggy Simcic Brønn12 IC l Really about integrating all communications functions n Marketing n Organization n Management

Strategy IdentityImage Management Communication Organizational Communication Marketing Communication Common Starting Points van Riel, C., Principles of Corporate Communications

Evolutionary Integrated Communications l Stage 1 Integration: Awareness n Proposition: the greater the degree of change on the existence of specific market pressures, the grater the likelihood that integrated marketing communication will emerge l Stage 2 Integration: Image Integration n Need for consistency message, look and feel. Duncan and Caywood

l Stage 3 Integration: Functional Integration n Greater degree of involvement among still traditionally separated areas. l Stage 4 Integration: Coordinated Integration n Barriers starting to disappear, each function becoming more equal.

l Stage 5 Integration: Consumer-Based Integration n The value of a refined customer and prospect database. Elements begin to work together. l Stage 6 Integration: Stakeholder-Based Integration n IMC becomes more broadly defined to become integrated communications.

l Stage 7 Integration: Relationship Management Integration n A fully integrated communication strategy reaching all stakeholders brings communications professionals into contact with all management functions.

Peggy Simcic Brønn18 CORPORATE COMMUNICATIONS l Management Communication n senior managers to internal and external groups l Marketing Communication n advertising, direct mail, personal selling, etc.. l Organizational Communication n PR, public affairs, investor relations, corporate advertising, etc...

Peggy Simcic Brønn19 MANAGEMENT COMMUNICATION l Develop a shared vision of the company/organization l Establish and maintain trust in leadership l Initiate and manage change process l Empower and motivate employees

Peggy Simcic Brønn20 ORGANIZATIONAL COMMUNICATION l All forms of communication used by organization other than marketing communications l Most commonly Public Relations l Directly primarily at ‘target groups’ (stakeholders) other than customers l Less obvious in attempts to influence behavior l Spend about 1/5 the amount spent on marketing communications

Peggy Simcic Brønn21 MARKETING COMMUNICATION l Communication efforts supporting sales of goods/services l Advertising usually recognized as dominant element l Largest share of communications budget used here

Peggy Simcic Brønn22 Marketing Communications Tools l Advertising l Sales Promotion l Product Public Relations l Direct Mail l Sponsorship l Personal Selling Planned Communication Directed Toward Consumers Primarily

Peggy Simcic Brønn23 Public Relations Communication l Media Relations l Employee and Member Relations l Community Relations l Public Affairs and Government Relations l Consumers, Environmentalists l Investor Relations Often Unplanned Communication Due to Stakeholders Raising Issues, not Organization

Peggy Simcic Brønn24 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 Brønn25 Barriers to Integration l Ego and turf battles l Uneven compensation and reward systems l Lack of corporate discipline to put customer first l Absence of databases and accompanying technology l Lack of an internal communication system to help with cross-functional planning l Lack of a core competency in marketing communication

Peggy Simcic Brønn26 Barriers to Integration l Lack of understanding of importance of stakeholders l Lack of agreement on marketing and marketing communication objectives l Overdependence on mass media l Lack of understanding of how to use one-to- one media l Functional areas not used optimally for overall good of organization in building and sustaining customer relationships

Organizational Differences l Marketing Public Relations - Integrating PR with Advertising l Public Relations Under Marketing l Integrate all Communications Functions Using Marketing Theories for Planning and Managing l Integrating all Communications Functions Through Public Relations Function

Obstacles to Integration and Potential Solutions Obstacle Solution Turf battles between functional areas Managers’ background/expertise Organizing and planning an integrated marketing effort Information sharing Leadership and Infringement - budgets - public relations Ethical issues Re-engineering Hire generalists rather than specialists Clear goals; unified approach Strong information culture Zero based communication planning Recognizing stakeholder base Clear mission and policy directions

Peggy Simcic Brønn29 Benefits of Integration l Gives a better process for acquiring, retaining and growing customers l Adds value through facilitating customer recourse, feedback, recognition l Enables brands to be more knowledgeable of customers and therefore more responsive l Gives a process for making brand communications and company more human, personal

Ensuring internal understanding and external acceptance Understanding Openness Clarity Strength Company Attention Acceptance Trust Internal Environment External Environment 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).