Integrated Marketing Communication (IMC)

Sport Marketing practice

HYU Sport Industry and Management Dept.

Dr. Joon-Seo A. Choi

IMC

• “A process through which companies accelerate returns by aligning communication objectives with corporate goals (Shultz & Schultz, 2003).”

• “Strategic marketing initiative focused on one-sight, one-sound

communication both internally and externally.”

• A communication tactic developed in the late 80’s and early 90’s.

• TIMES HAVE CHANGED…

Back then…

• The elder Bush occupied the White House.

• China was just opening the doors to the outside.

• Internet belonged to “geeks”.

• Emails and dot-com’s foreign to many.

• TV advertising – dominant form of commercial communication.

• Marketers thought in terms of products, not brands.

• Companies were strictly divided into biz functions or units, all separate and independent, and managed from the top down. No cross-functional teams.

• Integration was a difficult concept.

1990’s

• The explosion of technology changed all that and IMC finally emerged!

• Tumultuous business environment of pro and anti-integration (“too difficult to implement”, “take away creativity”…etc)

• A few forward thinking pioneers began to develop and implement IMC w/in their org.

• Today, the IMC has achieved acceptance in businesses of all types!

Why the new IMC?

• WARNING: The “New IMC” will overturn some traditional marketing

principles and concepts!

• Customers now relate to brands, not to the various forms of marketing or marcomm – branding becomes the basis of integration.

• A focus on individuals, not market segments.

• Increased focus on measurement and accountability – in sport industry as well.

• Strategic and value-driven, linked to the short- and long-term goals of the entire org, not just to product sales objectives! (Strategic issues –“How much to invest, how much ROI (Return-on-Investment), when will ROI occur?...etc.”)

• A global approach

• What DROVE the emergence of the

• new IMC?

The Factors…• 1. A shift away from the Four P’s:

• 4 P’s Model:

• The traditional theory base for almost all marketing education and practice. Governed the manner in which businesses conducted their marketing activities. “If a company got each of the Four P’s right, business would grow and prosper.”

• Only an “internal” orientation w/o the mentioning of customers or profits!

• Managers managed things they knew and controlled (4P’s) – selection of products, setting of prices, organization of distribution channels, implementation of advertising and promo programs

• Market share was the gateway to profits in the 1980’s (“outspend, out-promote, out-distribute”)

The Factors…

• 1990’s – the Fall of the 4P’s Model in America…

• Cost efficiency was critical and this meant integration of business functions.

• “Category killers” – giant retailers that consolidated activities for consumers and dominated suppliers (manufacturers) overnight.

• Ex. Costco, Home Depot, Toys-R-Us, E-Mart

• Manufacturers no longer controlled the distribution channel (Place) and the other components of the 4 P’s slipped away.

The Factors…

• 2. A parallel shift in marketing spending

• From the promo mix of the 80’s (sales force, media ad, publicity) to a new breed of comm strategies (sales promo, direct marketing, PR activities)

• “Below the line” – new promo techniques (discounts, contests, sponsorships) – “Push”

• “Above the line” – traditional advertising building long-term brand image – “Pull”

• More and more marketing $$ were supported to measurable, incremental, fast-acting solutions – “below the line” activities.

The Factors…

• 3. Demand for IMC

• Traditionally, marketing $$ were devoted to ad media (TV, NPP, magazines, outdoor, radio)

• By 2000, a 50:50 split in advertising and promos!

• To protect from decreasing revenue streams, ad agencies created “one-stop shopping”

• 1st attempt at IMC but a shaky one due to lack of all-around expertise.

The Factors…

• 4. Growth drivers of IMC

• a. Development of digital technology across entire spectrum of biz operations.

• b. Increasing emphasis on branding and “experiencing” brand as the major competitive differentiating tool

• c. Increasing focus on globalization as marketers spread across the traditional geographic boundaries.

• d. Accountability and the measurement of financial returns on marcomm activities.

The new IMC

a. Technology

• Advent of Internet and e-commerce

• IMC now a two-way communication channel (outbound AND inbound)

• Consumer insights & direct marketing now more feasible than before thanks to Internet

The new IMC

• b. Branding

• From “innovate and grow” to “copy and improve” – a new breed of competitors emerged.

• (ex. Private Brands everywhere)

• No longer a battle of products, but of BRANDS (or “brand equity”) and what they meant to consumers.

• From the battle of the “tangibles” (products) to “intangibles” (brands)