The role of corporations in a ‘world at risk’,
Trondheim 19-20 November 2012
"How to fight against Integrated Marketing
Communication (IMC) of tobacco companies: some insights from critical and social marketing"
Juan Miguel Rey-Pino
Lucia Porcu
Salvador del Barrio-García
(University of Granada, Spain)

u   Analysing the role of IMC in tobacco industry from a social and critical marketing perspective; u   Examining how the implementation of IMC exerts a positive effect on tobacco companies’ overall financial/economic performance; u
Achieving a better knowledge of the benefits that tobacco companies achieve by using IMC strategies and CSR for Stakeholders.

Introduction (1): IMC theoretical background
Introduction (2): Critical and Social Marketing
Analysis of IMC in tobacco industry from a critical marketing perspective: (unethical) examples from Spain
Conclusions and implications for policy makers

Introduction (1): IMC theoretical background
Introduction (2): Critical and Social Marketing
Analysis of IMC in tobacco industry from a critical marketing perspective: (unethical) examples from Spain
Conclusions and implications for policy makers

What is Integrated Marketing Communications (IMC)?
>
Evolution of Marketing Communications
Transactional approach
Relationship approach
Integrated approach

What is Integrated Marketing Communications (IMC)?
“IMC is a concept of marketing communications planning that recognize the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines - for example general advertising, direct responses, sales promotion or PR- and combines these disciplines to provide clarity, consistency and maximum communications impact ”
(American Association of Advertising Agencies, 1989)

What is Integrated Marketing Communications (IMC)?
“IMC is an audience-driven business process of strategically managing stakeholders , content, channels, and results of brand communication programs”
(Kliatchko, 2008)
“IMC is a cross-functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven , purposeful dialogue with them” (Duncan, 2002)

Lauterborn’s 4Cs (Schultz et al ., 1993)
Not PRODUCT, but CONSUMER Not PLACE, but CONVENIENCE
The product characteristics have to match the specifics of what someone wants to buy. And part of what the consumer is buying is the personal "buying experience“
As above, turn the standard logic around.
Think convenience of the buying experience and then relate that to a delivery mechanism. Convenience may include aspects of the physical or virtual location, access ease, transaction service time, and hours of availability.
Not PRICE, but COST
Not PROMOTION, but
COMMUNICATION Understand the consumer's cost to satisfy the want or need. The product price may be only one part of the consumer's cost structure. Often it is the cost of time to drive somewhere, the cost of conscience of what you buy, etc.
Communicate, communicate, and communicate. Many mediums working together to present a unified message with a feedback mechanism to make the communication two-way. And be sure to include an understanding of non-traditional mediums, such as word of mouth and how it can influence your position in the consumer's mind.

Communication-based Marketing model for managing relationships ( Duncan and Moriarty, 1998 )
You cannot not communicate

“IMC is the major communication development of the last century and a key competitive advantage of marketing”
(Kitchen and De Pelsmacker, 2004)
Effects on:
-
Marketing and corporate communications (i.e. higher communication impact and better effectivenes of creative ideas; stronger and more consistent corporate image and reputation)
-
Brand performance (i.e. more favourable brand image, higher brand equity and brand awareness, etc.)
-
Stakeholders relationships (i.e. higher shareholder value; customer loyalty and satisfaction etc.)
-
External agencies relationships (i.e. Better relationships between client-agencies and among external agencies)
Economic/financial Results

IMC perspectives
Reductive approach
- mere coordination of the communication mix
- Communication as a tactical tool
- inbound focus
- the main goal is consistency among messages conveyed via differente communication tools
(«one sound, one sight» effect,
Schultz et al., 1993; Nowak &
Phelps, 1994)
Wide approach
- a continuous and crossfunctional process based on interactivity
- communication as a strategical value
- outbound focus (data bases and strong market orientation)
- the purpose is to get synergies and sound long term relationships with stakeholders (Duncan &
Moriarty, 1998; Kitchen & Schultz
2009)

Introduction (1): IMC theoretical background
Introduction (2): Critical and Social Marketing
Analysis of IMC in tobacco industry from a critical marketing perspective: (unethical) examples from Spain
Conclusions and implications for policy makers

So … How Social Marketing works?
(Hastings, 2007)
Push on public policies
Social & critical
Marketing
•
Theories
•
Research
Botto m-up activi ties
Mk mix adoptant

Critical and Social Marketing: two sides of the same coin?
>   Social & Critical Marketing
(Gordon et al., 2007):
◘
Examines critically the effects of commercial marketing health and welfare of society.
◘
Use of commercial marketing tools to solve social problems derived from a wrong use of commercial marketing (eg.
Alcohol, tobacco, food, gambling...)
>
Outcomes:
◘
Extended use of research to push policy makers to take action against unethical marketing practices
(regulatory actions):
»
WHO FCTC articles against Tobacco Inductry signed by 168 countries.
Article 6: Price and tax measures.
Article 12:
Education, communication, awareness.
WHO
FCTC
ARTICLES training and public
Article 11:
Packaging and labelling of tobacco products.
Article 13: Tobacco advertising, promotion and sponsorship.

Introduction (1): IMC theoretical background
Introduction (2): Critical and Social Marketing
Analysis of IMC in tobacco industry from a critical marketing perspective: (unethical) examples from Spain
Conclusions and implications for policy makers

IMC in tobacco industry: an analysis of examples from
Spain from a critical marketing perspective
IMC & Social Marketing Literature
Public Health
Hawkins, J., Bulmer, S. & Eagle, L.
(2011)
Nutrition
Dresler-Hawke, E. & Veer, E.
(2006)
Environment
Carlson, L., Grove, S., Laczniak,
R.N.& Kangun, N. (1996)
Drug and alcohol
Morgan, P. & Voola, R. (2000)
Tobacco Industry
Dewhirst, T. & Davis, B. (2005)
Pharma
Industry
Alcohol
Industry
Public
Health
Tobacco
Industry
Food
Industry

IMC in tobacco industry: an analysis of examples from
Spain from a critical marketing perspective
Our analysis is theoretically based on IMC reductive approach :
-
mere coordination of the communication mix
-
communication as a tactical tool
-
inbound focus
-
the main goal is consistency among messages conveyed via different communication tools («one sound, one sight» effect, Schultz et al., 1993;
Nowak & Phelps, 1994)

IMC in tobacco industry: an analysis of examples from Spain from a critical marketing perspective
>   Imperial Tobacco Limited use of three critical integrated marketing communication (IMC) practices (Dewhirst & Davis, 2005) (based on
Tobacco Industry internal documents from the Canadian case in the 90’s
(Cunningham & Kile, 1995)):
◘   Strategically consistent brand communication.
◘
Cross-functional planning and monitoring.
◘   Data-driven targetting and communication.
>
Philip Morris use of (Coombs et al., 2011):
◘   internal:
»
employees, cross-functional disciplines –marketing and corporate, affairs teams, distributors and retailers)
◘   External:
»
education and communication (Media, third parties (stakeholders?), parents, teachers, law enforcement, community leaders, legislators, regulators)

tobacco control & denormalisation Vs. TOBACCO IMC
STRATEGIES: A CONTINUOUS DEVELOPMENT OF
COUNTER-TACTICS.
•
Use of packaging and cigarettes to attract new consumer & maintain current ones.
•   New forms of tobacco smoking
(waterpipes with flavoured tobacco) and promotion of
RYOT natural & ecological blending.
•
Restrictions related to words describing attributes as methol, light, mild…
•
Promoting RYOT products and low cost brands.
•
Increasing taxes for lowering demand.
•
Using the point of sales as the
“FORTRESS” for
IMC through product placement, advertising, promotional gifts and low cost brands, displays, badgets, etc.
•   Modern vending machines
(colours, new tech., ads on panel)
•
Controlling advertising & promotion inside the point of sales.
•
Prohibition of smoking in public places, bars and restaurants.
•
Product placement
(movies, tv series)
•   Social media
(Internet, apps)
•   Tradtional advertising is banned, except the point of sales.

Consumer: Why did Sapho decide to smoke? Branding tobacco only for women (Rey et al., 2011). Some examples.

Consumer: Packs & Innovation.

Cost: RYOT and low cost brands.
Targetted as less harmful.
Natural blending evokes no additives.
Slower combustion.
Closer to nature.
Alternative people (young people).

Convenience: isn’t it cute? Tobacco placement and children.

Communication: movies, Sitcoms and women.

Communication: Promotions & On-line promotions.

Communication. New Media (social media & Apps).

Social media.

Twitter.

Apps.

The importance of stakeholders: broadening the
IMC question.
Providers (eg.
Farmers-
Extremadura)
Government-
State.
Tobacco
Companies stakeholders.
Affinity sectors
(alcohol & food
Industry)
Civil society:
•   Population.
•
•   Consumers.
• Academia
NGOs???

Integrated CSR Communication & Tobacco
Industry: An explosive mix?
Short Term thinking
Perceived benefits for consumers (stress, fashion accesory)
Long term thinking
Profit for Public sector (taxes) Bad reputation & Losses for
State (cost for chronicle diseases)
Jobs for disadventaged regions (Extremadura 93% production)
???
Generate profit and complementary business & employement
???
Cooperation with other sectors Bad reputation for other sectors
Chronicle diseases & bad image
& Death

Tobacco CSR activities? Some examples.
Biodiversity &
Natural resources
Generating employement
OHS
Partnership & suppliers
Philantropy
Political donations
Health promotion
Illicit trade
Human rights & sustainability
Code of conduct
Imperial
Tobacco
Philip
Morris
BAT Japan
Tobacco

Introduction (1): IMC theoretical background
Introduction (2): Critical and Social Marketing
Analysis of IMC in tobacco industry from a critical marketing perspective: (unethical) examples from Spain
Conclusions and implications for policy makers

IMC and Critical Marketing: conclusions and implications for policy makers
>   As Communication technologies evolve , there will be greater opportunities to be more customized and interactive, thus it would be necessary to work on policies addressed to better control the emergence of IMC strategies via new media and user-driven technologies (i.e. apps, internet platforms, social media, etc.) that may be used to foster tobacco consumption.
>
As laws evolve against tobacco marketing activities, companies evolve too through new strategies (CIM and social media, stakeholders orientation through CSR activities). Need to know how to react.
>
Public health policers must pay more attention of how the use of stakehoders (stakeholders orientation) can help the Tobacco sector to implement their plans and IMC activities, thus broaden the IMC concept.
>
Carefully examine the impact of CSR activities and response from stakeholders: counter-attack for a long term thinking from the Public
Health Sector.
>
Continuous market research to target new consumers (women).

Come in here, Dear boy, have a cigar.
You're gonna go far,
You're gonna fly high,
You're never gonna die,
You're gonna make it, if you try;
They're gonna love you.
(Pink Floyd, Have a cigar)
Thank you for your attention!
Juan Miguel Rey Pino
Marketing and Market Research Department
Universidad de Granada (Spain) e-mail: jrey@ugr.es