Integrating Communications

1. Integrating Communications Peggy Simcic Brønn

2. Key Words • Stakeholders • Relationships • Reputation/Image • Competitive Advantage • Cause or Mission Marketing Peggy Simcic Brønn

3. 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

4. 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

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

6. 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

7. Relationship Building • Key element of IC • Not just with customers Knowing Responsive Trusting Affinity Consistent Likeable Accessible Committed Constructs determining strength of relationships Peggy Simcic Brønn

8. Communication Relationships Stakeholder Support Brand Equity Peggy Simcic Brønn

9. 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

10. Drivers of IC • Focus on stakeholders • Focus on relationships more than transactions • Strategic consistency process • Interactive process • Mission Marketing process Peggy Simcic Brønn

11. Drivers of IC • Zero-based planning process • Cross-functional team infrastructure • Core competency infrastructure • Database infrastructure • IC agency infrastructure Peggy Simcic Brønn

12. IC • Really about integrating all communications functions • Marketing • Organization • Management Peggy Simcic Brønn

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

14. 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

15. 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.

16. 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.

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

18. 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

19. 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

20. 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

21. 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

22. Marketing Communications Tools Planned Communication Directed Toward Consumers Primarily • Advertising • Sales Promotion • Product Public Relations • Direct Mail • Sponsorship • Personal Selling Peggy Simcic Brønn

23. 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

24. 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

25. 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

26. 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-to-one media • Functional areas not used optimally for overall good of organization in building and sustaining customer relationships Peggy Simcic Brønn

27. 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

28. Obstacles to Integration and Potential Solutions Solution Obstacle • 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

29. 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

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