1. Integrated Communication Learning Unit 4 19 May 2011

2. DPR3A-LU4-IntegratedCommunication&Branding 2 Learning unit outcomes 2 Evolution of integrated communication Concepts of integrated marketing communication and integrated communication Coordination between Public Relations, marketing and business management Branding and role of branding in integrated communication

3. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 33 Defining the concepts Integrated communication is: cross-functional process for creating and nourishing profitable relationships by strategically controlling messages sent to customers and stakeholders and encouraging data-driven, purposeful dialogue (Duncan, 2001) a strategic management process of controlling or influencing messages and encouraging purposeful, data-driven dialogue to create and nourish long- term, profitable relationships with stakeholders (Duncan, 2001) (Rensburg & Cant, 2009)

4. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 44 IC in communication management Focus of IC on building relationships with stakeholders with the emphasis on messages and dialogue created as a strategic imperative for a successful organisation Traditional roles of marketing management and communication management raised to level of business management through integration Communication management therefore contributes directly to the bottom line of the organisation and its general wealth

5. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 55 Application of IC Integrated communication applied in communication management involves: One voice/one look communication, ie organisation develops single persona and voice that are consistent Coordinated approach to communication management and marketing Purposeful organisational communication which involves everyone in the organisation IC is built on symmetrical communication to build relationships between organisation and internal and external stakeholders

6. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 66 Theoretical components of IC Two-way symmetrical communication Interactivity more important than products Managing stakeholder relationships Relationships replacing management of transactions Brand relationships and brand equity Intangible side of business with too little emphasis One voice, one look vs integrated communication Fundamental integration not merely mixed messages Cross-functional processes and planning Interconnectivity between processes and planning needed

7. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 77 Why integration? Three areas where change and evolution necessitated integration External market trends: product overload, increased consumer knowledge and sophistication, less trust in organisations Trends within organisations: larger organisations and impact of technology needed more coordination, generated wide range of communication opportunities Societies’ demand for organisational integrity: holistic, integrated approach to communication has better chance to display positive brand image of integrity

8. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 88 Evolution of IC Timeline for evolution of integration based on works of various authors (Barker & Angelopoulo, 2006) Prior to and during industrial revolution 1920s and after World War II 1950s, 1970s, 1980s Early 1990s and late 1990s 2000s and currently

9. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 99 Coordination of PR, marketing and business management Business world = networks of individuals and organisations that produce goods and delivers services to meet needs of individuals and organisations (Niemann, 2005) Organisations pervade networks through goods, services and their ideologies (Fox, 2006) Organisations institute ideologies through communication management which converges linguistic, cognitive and social actions (hear, see, interact)

10. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 10 Coordination of PR, marketing and business management [2] Communication plays a vital role in business management with a symmetrical worldview Communicators use knowledge about stakeholders to: negotiate win-win solutions and establish mutual benefit create mutual understanding between public and management through two-way communication two-way communication allows for input from stakeholders for innovative solutions and corrective discourse Relies on systems thinking = interdependece

11. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 11 Coordination of PR, marketing and business management Interdependence = community-building construct of communication management Organisations realise importance of focus on: internal communication and interaction mutual exchange of influence internal-external balance in the organisation Focus on individual level indicative of social cultural context in which organisations are operating Behave as reasonable members of communities in interdependent relationships 11

12. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 12 Coordination of PR, marketing and business management PRPs practicing communication management: play a social role in representing organisations and acting in the public domain (Bishop, 2006) play a key role in adjusting or adapting behaviours of senior management to bring publics and management closer together Modern marketing’s focus on building long-term relationships with customers overlaps PR’s building relationships with stakeholders This necessitates integrated communication 12

13. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 13 Branding and IC Concepts Brand: perception resulting from experiences with and information about a company or products Brand identity and image: what a brand stands for and how it is described, and customer’s perception of brand identity Branding: process of creating a brand image that engages the hearts and minds of customers Brand characteristics – Manual p150 Design, performance, ingredients/components, size/shape, price, marketing communication 13

14. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 14 Class exercise In groups, pick a brand Discuss how it is using traditional and integrated marketing communication techniques/tools such as advertising, sales promotions, direct marketing, public relations, packaging, personal selling Give your opinion on the effectiveness of the techniques Discuss ideas of alternative/additional methods Class feedback/discussion

15. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 15 Drivers of brand relationships Brand relationships are at the heart of IC Ten drivers of brand relationships: Create and nourish relationships vs transactions Focus on stakeholders vs customers/shareholders Strategic consistency vs independent brand messages Purposeful interactivity vs mass media monologue Market corporate mission vs products claims Zero-based planning vs updating last year’s planning Core competencies vs communication specialisation Integrated agency vs traditional full service agency Databases to retain customers vs new customers

16. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 16 Benefits of brand relationships Benefits to company Impact on costs: current vs new customers, relationships spread acquisition costs, loyal customers less marketing costs, satisfied customers less hand holding Impact on sales/profits: loyal customer buy more, increased value, fewer defections Benefits to customer Less risk Fewer decisions Fewer switching costs Greater buying efficiency Increased association, self-identification 16

17. 19 May 2011DPR3A-LU4-IntegratedCommunication&Branding 17 Homework Review example of brand campaign wrt: Audience Objectives Messages/themes Creative rationale Results 17