Integrated Marketing Communication from Tactic to Strategy by Olof Holm

1. > > Integrated Marketing Communication Strategy
Integrated Marketing
Communication:
from Tactic to Strategy
Olof Holm
Stockholm University School of Business, Stockholm, Sweden

2. IMC: form Tactic to Strategy
Purpose
p
To identify obstacles to further developing IMC
y p g
from tactics to strategy.
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3. IMC: form Tactic to Strategy (con’t)
(con’t)
Methodology
gy
• A review of relevant literature during the 1990s
g
• A study of four large Swedish companies.
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4. IMC: form Tactic to Strategy (con’t)
(con’t)
Introduction
• IMC became a real hot topic in the field of
marketing
• IMC has influenced thinking and acting among
companies, all facing the realities of competition
in an open economy.
by Caywood et al., 1991; Miller and Rose, 1994; Kitchen and Schultz, 1997, 1998, 1999
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5. Introduction
Marketing Budgets for 20 years ago
Other, 25%
Advertising, 75%
Advertising Other
by Kitchen,
2003
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6. Introduction (con’t)
(con’t)
Marketing Budget for Today
g g y
Advertising, 25%
Trade Promotion, 50%
Consummer
Promotion, 25%
Trade Promotion Consummer Promotion Advertising
by Kitchen,
2003
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7. Introduction (con’t)
(con’t)
The allocation of communication budgets away from
mass media and traditional advertising has obviously
promoted IMC in recognition and importance for
effective marketing
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8. Introduction (con’t)
(con’t)
75%
75%
25%
25%
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9. The emergence of IT has fundamentally changed
• The media landscape
• Contributed to an extensive deregulation o markets
Co bu ed o a e e s ve de egu a o of a e s
• Individualized patterns of consumption
• Increased the segmentation of consumer tastes and
preferences
by Eagle and Kitchen, 2000; Kitchen, 2003
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10. The Correct Position of the Company
Business Organization
Environment p
Concepts
External Internal Identity Profile Image
Opportinuties Threats Strengths Weaknesses
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11. How internet influences industry structure
competition migrates to price
differences among competitors are reduced
red ced reduced b i t entry shifts power t suppliers
d d barriers to t hift to li
geographic market widens increasing end-users bargaining power is increased
the number of competitors through reduced switching costs
Internet
new substitution threats are created difficult to keep internet applications
by the proliferation of internet from new entrants
standardization of products the internet can expand the market
reduces differentiation by making the industry more efficient
traditional powerful channels are eliminated
Porter (2001)
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12. The IT - revolution
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13. The Consequences of the IT - revolution
• The three communication systems were separate
separate.
The IT- revolution has made a total communicative
integration.
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14. The Consequences of the IT - revolution
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15. The Consequences of the IT - revolution
Telephony Television
Industry Industry
Computer
Industry
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16. The Level of Communication Management
Strategic
Level
Advertising Agencies and
Tactic Level Account Executives
Operational L
O ti l Level
l
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17. The Level of Communication Management
On a tactical level marketing
g
The communication is handled by p y professionally skilled
y
account executives, art directors and copy directors with
very limited competence and experience f strategic
li i d d i from i
management.
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18. Compare the Education Program
Communication Theory
Strategic Management
3%
100%
80%
60%
90%
97%
40%
20%
10%
0%
Tactic Level Strategic Level
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19. Tactical
Strategic
Level
Leadersh
hip
10%
Strategic Management
c
Copy
mer
Consum Behavior
Advertis
sing
90% Media
Art
nication Theory
Commun
Subjects
3%
Methodo
ology
Strategic Planning
c
Applied Management
al
Financia Analysis
97%
Marketin
ng
Politics
Economiics
Compare the Education Program by Subjects
Total
100%
100%
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20. The Problems of Communication
how accurately the symbols of
Level A
Technical communication can be transmitted.
how precisely the transmitted symbols how effectively the received meaning
convey th desired meaning.
the d i d i Communication does affect conduct in the desired way
Problems
Level B Level C
Semantic Effectiveness
by Warren (1949)
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21. Why has communication to move
from tactics to strategy ?
• Fast technological advancement
• A rapidly globalizing
• Deregulations of markets
• Individualization of consumption patterns
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22. Conclusion
• A majority of fi h remained on a llevell
j i f firms have i d
mainly dealing with tactical coordination of
promotional elements very few, a handful have
moved to financial and strategic integration
integration.
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23. Conclusion (con’t)
• Diff educationall cultures might be an
Different d i l ihb
essential obstacle to move IMC from tactics
to strategy
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24. Conclusion (con’t)
• O l strategically oriented IMC can h l
Only i ll i d help
business to move forward.
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25. IMC: form Tactic to Strategy
Thank You
Tha k Y
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26. Presented by
Onion Head
Siriporn Pongvinyoo
p g y
mrkokung@hotmail.com
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