Marketing communication degree

Have you ever responded by phone to a company's earnest plea on television imploring how it can't wait to have you as a valued customer, only to be shuffled to a disaffected employee who seems genuinely bored with helping you?

Well, if you've had such an experience--and wondered, "Don't they watch their own TV ads?"--you're acutely aware of the impetus for Integrated Marketing Communication. It begins with the "one-sight, one-sound" objective of marketing communication, and while that's only a part of the IMC concept, it's the part that shows most to consumers and the general public. And it's the problem that communicators who don't work directly with marketing frequently have to reconcile in their programs.

If you're not familiar with the IMC concept, here is an official definition: "...a strategic business process used to plan, develop, execute and evaluate coordinated and measurable persuasive brand communication programs over time with consumers, customers, prospects and other targeted, relevant external and internal audiences."

The topic of IMC is discussed at length in a best practices report of the same name produced by the American Productivity Quality Center (APQC), Houston, Texas. Report editor is Susan Elliott. Chief subject matter expert is Don Schultz, professor of integrated marketing communication at Northwestern University's Medill School of Journalism. The report is based on a study of 22 companies that practice varying degrees of IMC. Eight of the companies studied were termed "partners." Essentially these leading edge representatives are well along the road to IMC; 14 other companies were termed "sponsors," and also are well on the road to IMC but not as far along as the partners.

IMC development stages

The four degrees (or stages) of IMC development determined by the study are:

1) Tactical coordination of marketing communication. This is where most organizations seeking IMC begin, and focus is on functional areas including advertising, promotion, direct response, public relations and special events. Emphasis is on developing "one-sight, one-sound" policies and programs.

2) Redefining the scope of marketing communication. Here the organization begins to examine communication from the customer's viewpoint, looking at all contact and entry points of customers with the company. The critical question changes from "How do we reach the customer?" to "How does the customer reach us?" Outside in instead of inside out. Also, the scope of communication activities broadens to include internal marketing to employees, suppliers and other business partners.

3) Application of Information Technology. Here the organization uses data gained through IT to provide a basis to identify value and monitor the impact of integrated internal and external communication programs to key customer segments over time.

4) Financial and strategic integration. At this top level of integration, emphasis shifts from skills and data to driving corporate strategic planning using customer information and insight. Financial measures of marketing are adopted based on return-on-customer investment measures.

The study was built on the concept that corporate enterprises do not simply decide to "become integrated," but in fact, evolved as integrated organizations over a period of several years.

The study resulted in 12 key findings which are grouped under the four stages of IMC evolution. Following are those key findings with corporate examples to illustrate how the findings actually work in daily corporate reality.

Key Findings, Stage One

1. Integration requires a high degree of interpersonal and cross-functional communication within the organization, across business units, and with outside suppliers. It cannot be driven by formal policies and procedures alone.

For example, at Federal Express, within the marketing department activities are centered around customer segments. Each segment is staffed by a cross-functional team composed of a manager, a marketer, an analyst, an agency account executive, and--if applicable--a representative from the agency-managed fulfillment house. These cross-functional teams meet as frequently as necessary. E-mail has greatly facilitated this integration. All marketing vendors are connected to FedEx and to each other through the FedEx corporate e-mail system.

2. Organizations are taking charge of the integration process themselves rather than looking to ad agencies or other suppliers to provide the coordination.

The majority of companies surveyed believe it is not effective to give responsibility for integration to their lead ad agency.

For example, while CIGNA has an agency of record, divisions may often use smaller, local agencies for specific needs. The divisions have autonomy in creation and execution, however, corporate marcom has significant influence by "integrating" advertising at a high level--by reviewing and ensuring that the messages across the agencies are strategically aligned.

Dow Chemical coordinates its more than 100 outside creative service providers through its global agency management team, composed of five senior marcom employees, four senior public affairs people and a representative from purchasing.

Key Findings, Stage Two

3. Organizations gather extensive information about their customers - using primary and secondary market research sources as well as actual behavioral customer data--and apply that information in planning, developing and evaluating communication activities.

Most companies surveyed have made some effort to examine communication activities from their customers' points of view. Most have conducted some type of brand contact or communication audit.

As an example, eight years ago Dow Chemical conducted a survey to determine customer information and preferences. It found that customers were primarily interested in their own success rather than Dow's strengths. This resulted in the "We, We" ad in which Dow listed numerous strengths that could be applied to solve customers' problems, and it emphasized "We don't succeed unless you do." The expression has moved from being just an advertising slogan to one of the guiding principles of Dow's communication program.

4. Best-practice organizations create a variety of feedback channels to gather information about customers and effectively use customer feedback throughout the company.

Here are some of the reported methods: research work groups, focus groups, awareness and preference tracking for both quantitative and qualitative data, readership studies, tracking of press and industry consultant coverage, e-mail responses.

As an example of the latter, CIGNA's corporate marcom group uses its web site and some 1,000 customer e-mail messages a month to become the "voice of the customer." Marcom compiles the info ranging from complaints to compliments and sends it to the pertinent divisions, where a process has been put in place for them to respond within 24 hours.

5. One of the most difficult challenges of integration is aligning internal practices and processes with external communication.

FedEx has a flattop management structure with only five layers, and information flows very quickly. For example, Monday morning the senior VP of marketing meets with his direct reports; Monday afternoon, VPs of marketing meet with their direct reports, the directors who in turn meet with their direct reports. By Tuesday morning, the information from the Monday morning meeting has been completely disseminated. This happens every week.

6. Leading best-practice organizations maintain a greater number of data sources, and their marketing communication personnel have greater access to the data for planning marketing communication programs.

Here's a very brief look at how IT and marcom work together at four studied companies:

CIGNA: Marketing information systems exist at the corporate level, not in the individual departments, and transforms data captured at the divisional level into valuable company-wide information made available via its database.

Dow Chemical: Information technology plays a key role in Dow's knowledge management efforts, specifically supporting marcom through Dow's major investment in communication technology. Employees have access to customer and other information critical to their success through a Dow-developed intranet.

FedEx: Marketing at FedEx has two IT work teams supporting its efforts. The teams are physically located within the marketing building and report to both the IT and marketing organizations.

Hewlett-Packard: HP's IT provides infrastructure for global communication via e-mail and intranet, facilitating marcom personnel collaboration. HP feels its current efforts to capture consumer data through its web site is an innovation that will significantly improve the amount of data it gains from end users.