Organizational and Managerial Communications Chapter 11 From Integrated Marketing Communication to Integrating Communication Peggy Simcic Brønn 1 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 2 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 Peggy Simcic Brønn 3 Brands • Brand – Transformation – Promise • Brand Relationships – – – – Managing Expectations Acquisition versus Retention Trust Intensity Peggy Simcic Brønn 4 Relationship Building • Key element of IC • Not just with customers • Mass communication unable to deliver Knowing Trusting Consistent Accessible Responsive Affinity Likeable Committed Constructs determiningPeggy strength of relationships Simcic Brønn 5 Communication Relationships Stakeholder Support Brand Equity Peggy Simcic Brønn 6 Brand Messages Does behavior confirm what an organization is saying? 1) Planned Messages (Mkt. Communications, Public Relations) Say 4) Unplanned Messages 2) Product, 3) Service Messages (Positive/Negative) (when come in contact with organization) Confirm Do Peggy Simcic Brønn 7 Cross-functional Planning and Management • Integrated Marketing Communication -integration of all marketing communications functions • Integrated Marketing -- integration of marketing functions (sales, distribution, R&D, marketing communications) • Integrated Communication -- integration of ALL communication functions Peggy Simcic Brønn 8 Integrated Communication • Cross-functional approach for managing profitable, 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 9 Traditional Marketing Communication and Integrated Communication Traditional • • • • • • • • • • Transactions Functional organization Specializations Mass marketing Stable of agencies Customers Mass Media Ads & Promotions Cause Marketing Adjust prior plan New • • • • • • • • • • Relationships Cross-functional org. Core Competencies Data-driven marketing CMO agency Stakeholders Purposeful interactivity Strategic consistency Mission marketing Zero-based planning IC • Really about integrating all communications functions – Marketing – Organization – Management Peggy Simcic Brønn 11 Strategy Identity Image Common Starting Points Management Communication Organizational Communication van Riel, C., Principles of Corporate Communications Marketing Communication • Relationship Management Integration – A fully integrated communication strategy reaching all stakeholders brings communications professionals into contact with all management functions. (Duncan and Caywood, 1998) Peggy Simcic Brønn 13 Organizational Possibilities (Kotler) • Marketing Public Relations - Integrating PR with Advertising • Public Relations Under Marketing • Marketing Communications under Public Relations • Two Separate but Equal Functions • Integrate all Communications Functions Using Marketing Theories for Planning and Managing • Integrating all Communications Functions Through Public Relations Function Peggy Simcic Brønn 14 Hunter’s 5-stage Model 1. 2. 3. 4. 5. Coordination and cooperation between marketing and PR PR and marketing perceived as equally important Marketing communication and PR put together into a communication department Communication and marketing placed right under CEO Integrating communication function into the relationship management function Peggy Simcic Brønn 15 Stimulating Coordination • Define common starting points (CSPs -- covered earlier) • Establish quality standards for ‘common operating system’ • Coordinate decision-making within communication Peggy Simcic Brønn 16 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 17 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 18 The integrated communicator • Must understand product development and positioning as well as reputation development and stakeholder communication • Needs to clarify market niche, identity messages, appeals themes, core values and corporate culture • Needs to know about product-support communication, institutional advertising, news story marketing, issues management, crisis and internal communication Peggy Simcic Brønn 19 The integrated communicator • Needs background to influence new employee programs, training programs and internal events that build community • Has to understand and use survey, focus group and interview research • Versed in all media, including group dynamics and face-to-face communications • Has a thorough understanding of theory of business and can use business knowledge to serve senior management Peggy Simcic Brønn 20 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 21