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As the CIM’s official publisher, Butterworth-Heinemann develops, produces and publishes the
complete series in association with the CIM. We aim to provide definitive marketing books for
students and practitioners that promote excellence in marketing education and practice.
The series titles are written by CIM senior examiners and leading marketing educators for
professionals, students and those studying the CIM’s Certificate, Advanced Certificate and
Postgraduate Diploma courses. Now firmly established, these titles provide practical study
support to CIM and other marketing students and to practitioners at all levels.
Formed in 1911, The Chartered Institute of Marketing is now the largest professional marketing
management body in the world with over 60,000 members located worldwide. Its primary
objectives are focused on the development of awareness and understanding of marketing
throughout UK industry and commerce and in the raising of standards of professionalism in the
education, training and practice of this key business discipline.
Books in the series
Below-the-line Promotion, John Wilmshurst
The CIM Handbook of Export Marketing, Chris Noonan
The CIM Handbook of Selling and Sales Strategy, David Jobber
The CIM Handbook of Strategic Marketing, Colin Egan and Michael J. Thomas
CIM Marketing Dictionary (fifth edition), Norman A. Hart
Copywriting, Moi Ali
Creating Powerful Brands (second edition), Leslie de Chernatony and Malcolm McDonald
The Creative Marketer, Simon Majaro
The Customer Service Planner, Martin Christopher
Cybermarketing, Pauline Bickerton, Matthew Bickerton and Upkar Pardesi
The Effective Advertiser, Tom Brannan
Integrated Marketing Communications, Ian Linton and Kevin Morley
Key Account Management, Malcolm McDonald and Beth Rogers
Market-led Strategic Change (second edition), Nigel Piercy
The Marketing Book (third edition), Michael J. Baker
Marketing Logistics, Martin Christopher
The Marketing Manual, Michael J. Baker
The Marketing Planner, Malcolm McDonald
Marketing Planning for Services, Malcolm McDonald and Adrian Payne
Marketing Plans (third edition), Malcolm McDonald
Marketing Research for Managers (second edition), Sunny Crouch and Matthew Housden
Marketing Strategy (second edition), Paul Fifield
Practice of Advertising (fourth edition), Norman A. Hart
Practice of Public Relations (fourth edition), Sam Black
Profitable Product Management, Richard Collier
Relationship Marketing, Martin Christopher, Adrian Payne and David Ballantyne
Relationship Marketing for Competitive Advantage, Adrian Payne, Martin Christopher, Moira
Clark and Helen Peck
Retail Marketing Plans, Malcolm McDonald and Christopher Tideman
Royal Mail Guide to Direct Mail for Small Businesses, Brian Thomas
Sales Management, Chris Noonan
Trade Marketing Strategies, Geoffrey Randall
Forthcoming
Relationship Marketing: Strategy and Implementation, Helen Peck, Adrian Payne, Martin
Christopher and Moira Clark
Services Marketing, Colin Egan
Integrated Marketing
Communications
The holistic approach
Butterworth-Heinemann
Linacre House, Jordan Hill, Oxford OX2 8DP
225 Wildwood Avenue, Woburn, MA 01801–2041
A division of Reed Educational and Professional Publishing Ltd
Preface xiii
Acknowledgements xv
Part One
Agency structures 98
The advertising agency 99
Other services to the agency team 106
Other agency/consultancy structures 106
Regional agencies 107
The changing role of marketing communications 107
The agency/client relationship 109
Agency remuneration 110
The criteria for agency selection 113
References 115
Additional reading 115
Part Two
7 Advertising 119
Aims and objectives 119
The diverse nature of advertising 119
The functions of advertising 120
The advantages and limitations of advertising 122
Types of advertising 123
The advertising process 124
Understanding the advertising process 126
The strategic aspects of advertising planning 130
Brand positioning 132
Implications for strategy development 134
Advertising strategy and the product life cycle 135
Determining the advertising objective 138
Developing the advertising plan 139
Business-to-business advertising 142
References 142
Additional reading 143
References 326
Additional reading 327
Index 345
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Preface
This text has its origins in the workbook The book is divided into two parts. The
which I prepared for the Chartered Institute of first section is designed to provide an over-
Marketing for the Diploma paper Marketing view of the important dynamics of market-
Communications Strategy. Due to the inevita- ing communications, an understanding of
ble constraints imposed on that work, I the consumer, an examination of the role of
wanted to develop a specific and compre- the brand and the process of developing,
hensive textbook examining the nature of managing and integrating marketing com-
marketing communications. This is the munications. The second section provides an
result. in-depth examination of the specific areas of
In a field as fast-moving as this, I have tried the profession and the tools which are avail-
to reflect contemporary views as to the way in able to the marketer.
which the process works and the benefits of I hope that this book will be of interest to a
developing an understanding of integration. variety of audiences, both those who are
Whilst, I hope, soundly based upon academic studying the subject as part of an academic
theory, it also examines the real world applica- programme, both at undergraduate and post-
tions within the broad field of marketing graduate level, as well as those who are
communications. The focus remains the embarking upon a career within the pro-
values of the brand and the contribution fession. Whilst the debate surrounding inte-
which marketing communications can make grated marketing communications continues,
towards their development. To achieve that the imperative is the development of a real
end, we need to develop an enduring under- understanding of all of the tools which are
standing of consumer behaviour, increasingly available to the professional. Only with that
on an international basis, as brands expand understanding will the true potential of inte-
their horizons far beyond national borders. gration begin to be realized.
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Acknowledgements
Along the way I have been helped by many international chapter; Debi Hayes, a colleague
people who gave up both valuable time and at the University of Greenwich, for suggestions
the result of their long years of practical on direct marketing; Jez Frampton at Saatchi &
experience to help ensure that this work is true Saatchi for his help with the creative brief; and
to the profession which it serves. I would like Sally Ford-Hutchinson, Global Planning Direc-
to thank especially the following who read tor at DMB&B (and also my wife) for painstak-
through the various chapters or otherwise ingly reading through everything I have
provided me with valuable input (I should add written to ease out the bugs. I would also like to
that these are in no particular order): Tim thank the people at Butterworth-Heinemann,
Armes, Media Group Director of MediaVest, and especially Tim Goodfellow and Diane
for his help and assistance on the media Scarlett, for making this book happen.
chapter and for ensuring that the media cost To all of those I have mentioned, and those
information is up-to-date; Nina Mink, Plan- other colleagues past and present who have in
ning Director of IMP, for her comments and some way contributed to this work, I am
suggestions on the sales promotion chapter, extremely grateful. However, such errors as
and especially for providing the guidelines on remain are entirely down to me.
international sales promotion; Mike Dickson,
Director of DMB&B, for reading through the Tony Yeshin
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Part One
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CHAPTER 1
Marketing communications –
an overview
development of even rudimentary printing number will continue to grow as the technol-
processes, it became possible to expand com- ogy improves. We have radio on FM, medium
munications to reach a wider audience. Early wave and long wave and, apart from the BBC
printed material provides examples of the stations both national and local, we have three
emergence of a new form of communications national commercial stations (Classic FM,
designed to convey information about the Virgin 1215 on MW, and Atlantic on long
availability of products and services to a wave) and some 180+ regional and local
broader public. The era of marketing commu- commercial radio stations. There are news-
nications had begun. papers, national and regional, morning and
In their earliest form, these communications evening, daily, weekly and Sunday. There are
predominantly took the form of the printed magazines, over 3500 of them, covering every
word and, with the advent of newspapers, form of interest area imaginable. There is a
this style continued. With the development of wide range of outdoor media, not just fixed
industrialization, companies emerged to meet poster sites, but posters on the sides of buses
the expanding demand for consumer goods, and taxi cabs, on the Underground and at
and the growth of transportation meant that railway stations. And many of us have
these companies could serve a wider market. become walking advertisements for the
Moving from a local to a regional or even brands we wear, with our clothes bearing
national basis of sales introduced a new logos for all to see.
element to the process – companies needed to The dramatic explosion in the range of
differentiate their products from those of their media outlets, and the complications that this
competitors – and even by the eighteenth has introduced to the task of media planning,
century, we begin to see the rudimentary can be seen visibly in Figure 1.1, contrasting
emergence of branding. Mostly, this was quite the situation which obtained in 1975 with that
simplistic, consisting only of an association of of 1996.
the proprietor’s name with the products he In 1996, according to the Advertising Asso-
produced. ciation (1997) (Advertising Statistics Year-
book, The Advertising Association/NTC Pub-
lications Ltd, 1997) some £11.9 billion was
spent on advertising in the UK, representing
The background to marketing some 1.89 per cent of our gross domestic
product. This figure has fluctuated somewhat
communications over recent years and currently stands at its
highest level since 1989 (Table 1.1).
Today, consumers are exposed to a vast Of this total, 30 per cent was in the form of
amount of information on a daily basis – press display advertising (£3,645 million),
everything from news reports on television, representing a further decline. In fact, from a
radio and in the press, weather forecasts, high point of 36 per cent in 1987, display
traffic information, store signs, product pack- advertising has fallen progressively over
aging, in-store point of sale material, and so recent years – 36 per cent in 1987, 35 per cent
on. Advertising is just one of the elements in 1989, 33 per cent in 1992 and 1993 and 32
with which the consumer must deal every per cent in 1994 and 1995. A further 23 per
day. cent was in the form of classified advertise-
Recent years have seen an explosion in all ments (£2,768 million). It is interesting to
forms of media. Apart from the land-based examine the pattern of press expenditure
television channels – BBC1, BBC2, ITV, Chan- amongst the various outlets (Table 1.2).
nel 4 and Channel 5 – we have an increasing 28 per cent of total expenditure was on
number of satellite and cable stations, and the television (£3,333 million), which has
Marketing communications – an overview 5
Figure 1.1 The media explosion. Adapted and updated from D. O’Donoghue in Cooper, A. (ed.), How to Plan
Advertising, 1997. Statistics from AA Statistics Yearbook, Advertising Association/NTC Publications, 1997
remained at this level for the past five years. It is possible to compare the levels of
Of this total, some £418 million represented advertising across a wide variety of countries.
production costs, at their highest level since Table 1.3 depicts the advertising expenditure
1985. Direct mail represents 12 per cent of the as a percentage of the gross domestic product
total expenditure (£1,404 million), up from the for 1995, the latest year for which comparable
level of 10 per cent which it has held over the figures are available:
previous three years; whilst the ‘all other’ It is in the context of these very consider-
category accounts for a further £843 million or able expenditure levels that marketing com-
7 per cent. Other media represented much munications is considered a vital part of the
lower levels of expenditure. Some £426 mil- marketing function. However, every aspect of
lion was spent on outdoor poster and trans- the marketing communications mix is being
port advertising, £344 million on radio and re-examined to determine whether it makes
£73 million in the cinema. an effective contribution to the continual
6 Integrated Marketing Communications
Table 1.2
Total National Regional Consumer Business & Directories Production
newspapers newspapers magazines professional costs
publications
Figure 1.2
implemented. In the 1960s the primary specialist companies. This ‘blurring’ can be
source for the development of all forms of seen in Figure 1.2.
marketing communications campaigns was
the advertising agency. At the time, separate ‘Discipline overlap is blurring long standing distinctions.
departments provided their clients with It’s increasingly difficult to categorise work as sales
advice in all of the appropriate areas. promotion or direct marketing, for example. Most direct
Since then, two strands of change have marketing offers contain some form of sales promotion
and vice versa. And with the growth of direct response
taken place. On the one hand, the wider
press and TV advertising, direct marketing is moving
appreciation of the techniques, and the need closer to conventional advertising.’ (Cook, 1994)
for specialist personnel, have both resulted in
the creation of specialist companies which
deal with specific areas. The consequence has
been a fragmentation of the provisions within The strategic challenges facing
the area, with the growth of sales promotion,
public relations, direct marketing agencies
organizations
and others, often separate and distinct from
the advertising function. In turn, these too Marketing and, for that matter, marketing
have fragmented further, with companies communications, are being readdressed by
emerging to provide inputs and implementa- major corporations to determine the values
tion in the areas of point of sale, incentive, which they derive from the adoption of their
sponsorship, product placement, and a myr- principles. Indeed, the very nature of these
iad of other areas. principles is being evaluated to determine
On the other, there has been a tendency for their relevance in the context of the challenges
this variety of ‘specialists’ to provide inputs being faced by companies in the late 1990s.
across a wide range of areas, with the con- The evolution of the marketing concept is
sequence that several different companies will well documented, and will not be revisited
have the ability to develop campaigns utiliz- here. However, many are now challenging the
ing the different tools of marketing commu- precepts which have become the basis of
nications. No longer do campaigns feature a marketing planning. Nilson (1992), in his book
single component or element; rather, they may Value Added Marketing, suggests that market-
employ several different devices which pre- ing has ‘lost its way’. Despite employing high-
viously were the domain of dedicated and quality management major organizations
10 Integrated Marketing Communications
Table 1.4
The departmental approach Integrated approach
Set overall five-year sales and profit targets Review future markets, needs, technologies and
competences
Develop individual supporting strategies Establish vision, priorities, competences, needed to
and plans by department win tomorrow
Combine departmental plans Develop key strategies for value, innovation,
competences, attitudes
Adjust five-year sales and profit targets Convert into sales, profit and investment targets,
and individual department strategy and plans
Characteristics of approach:
Financially driven Market and competence-driven
Department-based Cross-departmental
customer value at minimum cost.’ Davidson than just the content of the message itself.
contrasts the different approaches reflecting Close attention needs to be paid to the context
the past (departmental approach) with the of the message (the vehicle used to commu-
future (integrated marketing) in Table 1.4. nicate with the target audience) as well as the
The essential requirement of the ‘new mar- timing and tone of that message. An imper-
keting’ approach is the development of a close ative is the identification of clear, concise and
customer focus throughout the organization measurable communications objectives which
which, in turn, demands an understanding of will enable the selection of the appropriate
customers as individuals in order to appre- communications tools to achieve the goals
ciate their perceptions, expectations, needs set.
and wants. In this context, an important role By developing an understanding of the
of marketing is the provision of information, identity of the consumer and their particular
in order that decisions are based on contem- needs and wants, we can determine the nature
porary, relevant and accurate information of the behaviour which the communications
about the marketplace, considering both com- programme will seek to reinforce or change –
petitors and customers. This implies, in many and, in turn, the specific nature of the message
instances, the establishment of an effective which will affect that behaviour, and the
database system which, if properly devel- means by which we can reach them.
oped, becomes a key strategic resource of the The strategic role that marketing commu-
organization. The information provided will nications can play is increasingly evidenced
enable far more sophisticated market segmen- by the impact of specific campaigns. These not
tation, targeting and positioning, all of which only affect the way in which consumers think
are essential ingredients of the development about the particular products and services
of effective marketing communications. which are offered to them, but the very way in
which they consider the categories in which
those products and services exist. The Virgin
Airline campaign has resulted in business-
Strategic marketing people re-evaluating the in-flight experience;
First Direct have made consumers consider
communications the fundamental requirement of being able to
access their bank account at times which suit
Shultz, Tannenbaum and Lauterborn (1992) them; the AA has moved people’s thinking
argue that marketing communications often from the need to make a broken-down car go
presents the only real differentiating feature again towards the company’s ability to
that can be offered to potential consumers. By resolve personal emergencies, and so on.
recognizing the fact that everything a com-
pany does consists, in some form, as part of
the communication which takes place
between itself and its customers, it becomes The expanded marketing
aware of the increasingly important role of
marketing communications as a strategic
communications mix
tool.
Just as the premise of the ‘new marketing’ As we have already seen, the expanded
places the consumer at the centre of all marketing communications mix has moved
activity, so too marketing communications our thinking way beyond the simple distinc-
must be considered from the essential per- tions between advertising, public relations,
spective of understanding consumer behav- sales promotions and similar categorizations
iour. This implies a consideration of more of the various tools available to us. Not only are
12 Integrated Marketing Communications
the tools themselves significantly enhanced a simple idea is rarely easy. It is important,
with the availability of new and emergent therefore, that communicators gain a detailed
forms of media, associating devices such as understanding of the way in which meaning
product placement and sponsorship, but their is transmitted in order to be able to develop
application has changed with the development effective communications strategies. The
of the Internet, electronic point of sale, virtual process of communications is explained visu-
advertising and ambient media. ally using the model developed by Wilbur
We have at our disposal an ever increasing Schramm in 1955. Although somewhat sim-
array of means of reaching our target con- plistic, it depicts the basic components essen-
sumers in a cost-effective manner, but this tial to any form of communication (see
demands an increasing understanding of the Figure 1.3).
relevance and application of these tools and
their individual contribution to the commu-
nications process.
Figure 1.3
Figure 1.4
Once the message has been created, the The response which the receiver makes will
sender will use one or more of a variety of vary according to the nature of the message
channels of communication. These may be and the impact of these and other extraneous
commercial channels such as television, radio, factors. In some instances, the intention of the
print media or posters, or the communication message may be to convey information. At
may consist of a letter, mailing or phone call. other times, there may be a specific injunction
An important consideration here is the way in to make a purchase. Needless to say, the
which the chosen medium may impact on the sender of the message will be keen to under-
message itself. Since some channels of com- stand the way in which the receiver has
munication have a high level of credibility, the responded to it.
messages they carry will be enhanced. Con- Some communications will have feedback
versely, some channels may have a negative mechanisms built in from the outset. This may
impact on the message. In this context, it is consist of a telephone number which the
worth remembering the words of Marshall receiver is invited to call, or a coupon to be
McLuhan when he said, ‘The medium is the returned. In other cases, the various tools of
message’. market research will be utilized to gain an
A critical aspect of the communications understanding of how the consumer interprets
process is the intervention of what is com- the message and responds to it. It should be
monly known as ‘noise’ or ‘interference’. clear that the nature of the message itself is
The individual is bombarded with informa- only one of the key components. If the medium
tion on a daily basis – news and weather selected to convey the message is poorly
broadcasts, a wide variety of advertising targeted; if the impact of the surrounding noise
messages, apart from interpersonal commu- causes distractions; or if the intended receiv-
nications, to name but a few – and all of er’s prior experience distorts the meaning of
which may interfere with the ability to hear the message, then the communications process
clearly the message sent by the particular has failed.
advertiser. The inevitable consequence is Communication may be considered to be a
that the decoding process, in which the hierarchical process in which potential con-
receiver of the message interprets its mean- sumers are taken through a sequence of stages
ing, can often become confused. The in order, hopefully, to convince them to
intended recipient may only see part of a purchase a product or service. Various models,
commercial, or mishear some of the spoken of which the best known are AIDA, DAGMAR
words. He or she will bring their own views (Colley, 1961), Lavidge and Steiner (1961) and
and beliefs to the interpretation process, Ray (1973), depict the stages through which the
which may also affect the way in which the consumer passes en route to purchase. The
message is understood. important stages are shown in Figure 1.5.
14 Integrated Marketing Communications
1 1. Marketing communications – an
overview
chapter:
Fill, Chris, Marketing Communications: Frameworks, Theories
and Applications, 1995, Prentice Hall
aid understanding:
of sales promotion: