RAND AFRIKAANS UNIVERSITY

Transcription

1 Integrated marketing communication and the role of public relations therein: A case study of RAU By ILSE NIEMANN (Student Number ) DISSERTATION Submitted in fulfilment of the degree MAGISTER ARTIUM in CORPORATE COMMUNICATION in the FACULTY OF ARTS at the RAND AFRIKAANS UNIVERSITY SUPERVISOR: ANDREA CRYSTAL, CO-SUPERVISOR: PROF ANSKE GROBiEiR JUNE 2002

2 I. DECLARATION Financial assistance provided by the National Research Foundation (NRF) in respect of costs of this study hereby acknowledged. Opinions or conclusions that have been expressed in this study are those of the writer and must not be seen to represent the views, opinions or conclusions of the NRF.

3 IL ACKNOWLEDGEMENTS I wish to thank: My Creator for blessing me with ability and in so many other ways; Andrea Crystal, who has guided me, and driven me beyond limitations that I believed existed. It is a privilege to have you as a mentor; Prof Anske Grobler, for not only providing invaluable inputs into this document, but also the impact you have had on my academic career thus far; Letitia de Wet for prioritizing my appointments, and her genuine interest in this study; Fatima Velosa for professional language editing; My family, in particular, my parents for their emotional as well as financial support; and Jean for your unconditional support, patience and belief in me..

4 III. DECLARATION I hereby declare that the dissertation submitted for the MA Corporate Communication degree entitled: Integrated marketing communication and the role of public relations therein: A case study of RAU, apart from the help recognized, is my own work and has not been formerly submitted to another university for a degree. Ilse Niemann May 2002

5 IV. ABSTRACT This study determines the role of public relations as a marketing communication function in RAU's integrated marketing communication approach. The research topic was selected for numerous reasons. Firstly, dramatic changes have occurred in the tertiary educational domain, which causes universities to adapt their marketing communication approaches. Based on these environmental changes, the Public Relations Division at RAU commissioned the study on the research topic, which is the second consideration for the study. The debate on integrated marketing communication shows, in the third place, that this approach is increasingly important. On closer investigation there is a definite need for a thorough literature review with an authentic integrated marketing communication approach, driven by the integrated organizational functioning and processes. From a public relations perspective, on closer investigation, there is a need for the direct empirical examination of the role of public relations as a contributing function of integrated marketing communication in order to narrow the gap between literature and empirical evidence. To achieve the research objectives, an extensive literature study had to be undertaken. Integraled marketing communication had to be researched in depth, to achieve a thorough understanding of the philosophy of integrated marketing communication. Hence, the contextualization of integrated marketing communication was examined to understand how the concept is applied within an organizational setting. Following from this, it was established that the integrated marketing communication programme can be seen as the advanced application of integrated marketing communication within the organizational context. The role of public relations as a marketing communication function was then explored within this integrated marketing communication approach. It was established that a shift towards a more marketing:oriented approach to public relations was increasing, thus the importance of marketing public relations.

6 The study was enhanced by two phases of research conducted within RAU to meet the objectives of the study. The first, quantitative phase determined the extent to which RAU's communication activities is integrated. The measuring instrument used is the integrated marketing communication mini-audit scale. It is essential to note that all organizations are integrated to a certain extent (Duncan & Moriarty, 1997:14). Therefore, this study did not focus on establishing whether RAU as an organization is integrated. In the second, qualitative research phase, the role of public relations as a marketing communication function within RAU's integrated marketing communication approach was determined. The issue that became apparent throughout this study was that integrated marketing communication in any organizational context is of strategic importance for the "unity of effort" of the greater well-being of the organization. It was found in this research project that there are fundamental concerns for RAU regarding integrated marketing communication, and that public relations is practised on a technical, traditional level. The results of this study are primarily based on three key findings: firstly, the lack of core competency within the Division of Public Relations, secondly, the lack of cross-functional planning and operations within this department, and thirdly, a lack of interactivity with stakeholders. It is put forward that RAU should concentrate on the basic requirements and infrastructure necessary to utilize integrated marketing communication and that marketing public relations should be an integral part of the functioning of RAU as a tertiary educational institution.

7 V. OPSOMMING Hierdie studie ondersoek die rol van openbare skakelwerk as 'n beniarkingskommunikasiefunksie binne RAU se geintegreerde bemarkingskommunikasiebenadering. Hierdie onderwerp is gekies weens 'n aantal redes. Eerstens het daar in die tersiere onderwyssfeer dramatiese veranderings plaasgevind. Hierdie veranderings het universiteite genoop om hul bemarkingskommunikasiebenadering aan te pas. Na aanleiding van hierdie omgewingsveranderings het die Afdeling Openbare Betrekkinge van RAU, in die tweede plek, hierdie studie aangevra. Derdens blyk dit uit die debat rondom geintegreerde bemarkingskommunikasie dat hierdie benadering toenemend belangriker word. Na deeglike ondersoek is daar bevind dat daar 'n besliste behoefte aan 'n intensiewe literatuurstudie oor outentieke geintegreerde bemarkingskommunikasie bestaan, gestu deur geintegreerde organisatoriese funksionering en prosesse. Vanuit 'n openbare skakelwerkperspektief, is daar 'n behoefte vir die direkte empiriese ondersoek van die rol van openbare skakelwerk as 'n bydraende funksie van geintegreerde bemarkingskommunikasie geydentifiseer, om sodoende die gaping tussen literatuur en empiriese bewysmateriaal te vernou. Om die navorsingsdoelwitte te bereik, moes 'n uitgebreide literatuurstudie onderneem word. Geintegreerde bemarkingskommunikasie is dus in diepte nagevors ten einde die filosofiese begronding daarvan vas te stet. Daama is die konsep van geintegreerde bemarkingskommunikasie gekontekstualiseer binne 'n organisatoriese opset. Hieruit is afgelei dat die geintegreerde bemarkingskommunikasieprogram gesien kan word as die gevorderde toepassing van geintegreerde bemarkingskommunikasie binne die organisatoriese konteks. Die. rol van openbare skakelwerk as 'n bemarkingskommunikasiefunksie is daama ondersoek binne hierdie geintegreerde bemarkingskommunikasiebenadering.

8 Daar is vasgestel dat daar 'n toenemende voorkeur vir 'n meer bemarkingsgeorienteerde benadering tot openbare skakelwerk is. Dit bring mee dat bemarkings-openbare skakelwerk toenemend belangriker word binne hierdie kommunikasieveld. Om die doelwitte te bereik is hierdie studie versterk deur twee navorsingsfases wat binne RAU afgehandel is. Die eerste, kwantitatiewe, fase het die mate waartoe RAU se kommunikasie-aktiwiteite geintegreer is, bepaal. Die meetinstrument wat hiervoor gebruik is, is die geintegreerde bemarkingskommunikasie mini-ouditskaal. Hier is dit van belang om daarop te let dat alle organisasies tot 'n mate geintegreer is (Duncan & Moriarty, 1997:14). Daarom het hierdie studie nie bepaal of RAU geintegreer is nie. In die tweede, kwalitatiewe navorsingsfase, is die rol van openbare skakelwerk as 'n bemarkingskommunikasiefunksie binne die geintegreerde bemarkingskommunikasiebenadering van RAU bepaal. 'n Belangrike bevinding van hierdie studie is dat geintegreerde bemarkingskommunikasie in enige organisatoriese konteks van strategiese belang vir die groter welsyn van die organisasie is, aangesien daar dan dieselfde boodskap deur verskillende kommunikasie-aktiwiteite (eenheid van pogings) deurgegee word. Daar is in die navorsingsprojek bevind dat daar fundamentele probleme is vir RAU rakende sy geintegreerde bemarkingskommunikasie, en dat openbare skakelwerk beoefen word op 'n tegnies, tradisionele wyse. Die verduideliking van hierdie bevindings is dat daar eerstens, die kembevoegdheid by RAU se Afdeling Openbare Betrekkinge ontbreek, tweedens dat kruisfunksionele beplanning en -operasies binne hierdie departement ontbreek, en derdens is daar bevind dat interaktiwiteit tussen die belanghebbendes ontbreek. Voorts word aanbeveel dat RAU behoort te konsentreer op die basiese voorvereistes en nodige infrastruktuur om geintegreerde bemarkingskommunikasie moontlik te maak en dat bemarkings-openbare skakelwerk 'n

9 integrale deel van die funksionering van RAU as tersiere onderwysinstelling behoort to vorm.

10 VI. TABLE OF CONTENTS Page CHAPTER 1 FOR, THE STUDY INTRODUCTION TO, AND MOTIVATION 1.1 INTRODUCTION CONCEPTUALIZATION OF CONSTRUCTS Integrated marketing communication Public relations in integrated marketing communication PROBLEM STATEMENT RESEARCH QUESTIONS AND AIM EMPIRICAL RESEARCH Research strategy Research design Research methodology KEY PARAMETERS DEMARCATION OF CHAPTERS Literature review Empirical research 19 CHAPTER 2 INTEGRATED MARKETING COMMUNICATION 2.1 INTRODUCTION 2.2 KEY CONCEPTS IN INTEGRATED MARKETING COMMUNICATION 20 21

11 Page Marketing The marketing mix From the promotional mix to the communication mix Marketing communication WHAT IS INTEGRATED MARKETING COMMUNICATION? THE ORIGIN OF INTEGRATED MARKETING COMMUNICTAION THE SHIFT FROM THE TRADITIONAL PROMOTIONAL MIX TO INTEGRATED MARKETING COMMUNICATION MARKETPLACE TRENDS THAT HAVE NECESSITATED NEW WAYS OF COMMUNICATING Internal or organizational changes External trends MULTIPLE STAGES OF INTEGRATED MARKETING COMMUNICATION Stage one of integration awareness Stage two of integration image integration Stage three of integration functional integration Stage four of integration coordinated integration Stage five of integration consumer-based integration Stage six of integration stakeholder-based integration Stage seven of integration relationship management integration CONCLUSION 65

12 Page CHAPTER 3 THE THREE-DIMENSIONAL INTEGRATED MARKETING COMMUNICATION APPROACH 3.1 INTRODUCTION OVERVIEW OF THE THREE-DIMENSIONAL INTEGRATED MARKETING COMMUNICATION APPROACH CONTEXTUALISATION OF THE THREE- DIMENSIONAL APPROACH First dimension: integrating external communication The value of customers Targeting customers Integrating the "voice of the customer" "Customer terrorists" Integrating global communication Stakeholder relationships Second dimension: integrating vertical communication A customer-centric vision Management and the customer-centric vision Cascading objectives Upward communication Third dimension: integrating horizontal communication Internal communication from management Learning how the parts of the organization function The impact of office architecture The digital architecture Communication overload 94

13 Page 3.4 CONCLUSION 95 CHAPTER 4 THE INTEGRATED MARKETING COMMUNICATION PROGRAMME 4.1 INTRODUCTION REQUIREMENTS FOR THE INTEGRATED MARKETING COMMUNICATION PROGRAMMES SETTING OBJECTIVES FOR THE INTEGRATED MARKETING COMMUNICATION PROGRAMME Build brand equity Provide information Manage demand and sales Communicate differentiation and enhance positioning Influence attitudes and behaviour APPROACHES TO INTEGRATED MARKETING COMMUNICATION PROGRAMMES The mandated "one look" approach The theme lines on matchbooks approach Supply-side programmes Ad hoc approaches Strategic system integrated marketing communication planning Eight-step integrated marketing communication process Step 1 global customer/prospect databases Step 2 customer/prospect valuation 118

14 Page Step 3 contact points and preferences Step 4 brand or organization relationships Step 5 message and incentive development and delivery Step 6 estimate on return on customer investment (ROCI) Step 7 investment and allocation Step 8 marketplace measurement THE INTEGRATED MARKETING COMMUNICATION PROGRAMME MEASUREMENT PROCESS Two new measures in integrated marketing communication Measurement over time Multidimensional measures How not to evaluate an integrated marketing communication programme The partial approach The global approach The specific approach Proposed integrated marketing communication measurement approach Media exposure Product impressions Personal contacts BARRIERS TO INTEGRATED MARKETING COMMUNICATION Ego and turf battles between individuals and departments 141

15 Page Organizations think they are already integrated Absence of databases and accompanying technology to track and profile customers and other key stakeholders Fear of change Short-term planning Hierarchical organizations Cult of specialization Decentralization Communication seen as low in priority Lack of a core competency in communication CONCLUSION 145 CHAPTER 5 PUBLIC RELATIONS IN INTEGRATED MARKETING COMMUNICATION 5.1 INTRODUCTION PUBLIC RELATIONS DEFINED A SHIFT IN FOCUS IN THE FIELD OF PUBLIC RELATIONS The traditional roles of public relations A shifting emphasis in the role of public relations THE NEED FOR CREDIBILITY THE MARKETING PERSPECTIVE OF PUBLIC RELATIONS THE OVERLAP OF MARKETING AND PUBLIC RELATIONS MARKETING PUBLIC RELAITONS 167

16 Page Marketing public relations adds value to integrated marketing communication THE LEADING ROLE OF PUBLIC RELATIONS IN INTEGRATED MARKETING COMMUNICATION THE INTEGRATED MARKETING COMMUNICAITON MESSAGE TYPOLOGY Planned messages Inferred messages Maintenance messages Unplanned messages INTEGRATED MARKETING COMMUNICATION SYNERGY APPROACH Consistency Interactivity Mission CONCLUSION 193 CHAPTER 6 EMPIRICAL RESEARCH 6.1 INTRODUCTION RESEARCH STRATEGY Quantitative research methodology Qualitative research methodology RESEARCH DESIGN RESEARCH OBJECTIVES Phase one integrated marketing communication Operationalization of concepts 211

17 Page Phase two public relations in integrated marketing communication SAMPLING DESIGN Population Sampling Phase one integrated marketing communication Phase two public relations in integrated marketing communication RESEARCH METHODOLOGY Phase one integrated marketing communication The structured, written questionnaire Closed-ended questions in structured, written questionnaires Phase two public relations in integrated marketing communication VALIDITY AND RELIABILITY METHOD OF DATA COLLECTION Phase one integrated marketing communication Phase two public relations in integrated marketing communication Prepared interview questions Adapted questions asked during interviews DATA PROCESSING Phase one integrated marketing communication Phase two public relations in integrated marketing communication CONCLUSION 251

18 Page CHAPTER 7 RESULTS, INTERPRETATION AND CONCLUSIONS 7.1 INTRODUCTION REPORTING AND INTERPRETATION OF RESULTS Phase one integrated marketing communication Individual questions of the IMC mini-audit Sub-sections of the IMC mini-audit Overall results of the IMC mini-audit Phase two public relations in integrated marketing communication CONCLUSION RECOMMENDATIONS FOR RAU LIMITATIONS SUGGESTIONS FOR FURTHER RESEARCH 291 LIST OF SOURCES 293

19 VII. LIST OF TABLES Page 2.1 Moving from the four Ps to the four Cs Differences between traditional marketing communication and integrated marketing communication Comparison between quantitative and qualitative methodologies Interview schedule Results of individual questions in descending order Sub-section results of the IMC mini-audit 265

20 IX. LIST OF FIGURES Page 3.1 The three-dimensional approach of integrated marketing communication The relationship path of customers The eight-step integrated marketing communication process Four classes of marketing and public relations use The consistency triangle 188

21 X. LIST OF GRAPHS Page 7.1 Results of individual questions in the IMC mini-audit 7.2 Results of the sub-sections of the IMC mini-audit 7.3 Comparison of IMC mini-audit results

22 XI. APPENDICES Page APPENDIX A: Cover page for questionnaire 327 APPENDIX B: Questionnaire IMC mini-audit 328 APPENDIX C: Interview schedule 330 APPENDIX D: Matrix of the overall results of the IMC mini-audit 334 APPENDIX E: Matrix of the organisational infrastructure results of the IMC mini-audit 334 APPENDIX F: Matrix of the interactivity results of the IMC 335 mini-audit APPENDIX G: Matrix of the mission marketing results of the IMC mini-audit 335 APPENDIX H: Matrix of the strategic consistency results of the IMC mini-audit 336 APPENDIX I: Matrix of the planning results of the IMC mini-audit 337 APPENDIX J: Matrix of the evaluating results of the IMC mini-audit 337 APPENDIX K: Organizational infrastructure (individual responses) Graph 338 APPENDIX L: Interactivity (individual responses) Graph 339 APPENDIX M: Mission marketing (individual responses) Graph 339 APPENDIX N: Strategic consistency (individual responses) Graph 340 APPENDIX 0: Planning (individual responses) Graph 340 APPENDIX P: Evaluating (individual responses) Graph 341

23 CHAPTER 1 INTRODUCTION TO, AND MOTIVATION FOR, THE STUDY 1.1 INTRODUCTION Advertising and promotion have been used by organizations for years to sell goods, services and ideas however, the marketplace is continually changing, and traditional strategies are becoming archaic at a rapid pace. Competition has increased in both commercial and non-profit spheres. Consumers have become distrustful of business, new communication and information technologies have been developed, and organizations have discovered that it is more profitable to sell to current customers' than to new customers (Shimp, 2002:7). All these factors are causing traditional promotional practices to become obsolete, as these are no longer sufficient to achieve organizational objectives. Currently, organizations need more effective and efficient ways of communicating with customers than in the past, largely due to their increasing knowledge as well as their increasing scepticism. Consequently, an increasing number of organizations are starting to accept the philosophy of integrated marketing communication, not only as a tool for effective communication, but often as the only manner to survive in a marketplace that suffers from information overload. Integrated marketing communication is not merely an attempt to integrate the various and proliferating means of communication to ensure their working together in delivering a single message. Instead, integrated marketing communication goes beyond consistent and comprehensive communication planning (Belch & Belch, 2001:vi) and is grounded on the postulate that customers will integrate information themselves (Harris, 1998:ix). In other words, customers collaborate their own information, experiences and preconceptions Customers in the broader sense of the word 1

24 and develop, albeit mostly sub-consciously, either favourable or unfavourable perceptions of organizations, products and brands. This chapter outlines the parameters. in which the research is undertaken. It provides background information, accentuating the need for integrated marketing communication, the role of public relations therein and the paradigm shift needed within the tertiary education sector, where the focus is now to brand tertiary institutions and actively present them to the stakeholders. The chapter also presents key aspects of the research methodology, including the primary objectives of the research study, and sets out the key parameters as well as the specific sub-goals that will be focused on. Chapter 1 concludes with a demarcation of the remaining chapters of this research project. 1.2 CONCEPTUALIZATION OF CONSTRUCTS Integrated marketing communication Integrated marketing communication assumes that customers base their decisions on their perceptions of reality, rather than on reality itself. For instance, customers buy a product from Sony if they think it is better than a Panasonic product. They choose the Sony because of a multitude of favourable impressions, experiences and conversations that they have had about different brands. However, these positive or negative perceptions of reality are created and managed with communication, and sustaining these perceptions without communication is impossible. All planned communication must start with an understanding of all the ways in which customers receive and process information. Communication professionals must strive to deliver a consistent picture of the brand position and organizational. position through all the channels that reach customers (Duncan & Moriarty, 1997:x). Communication professionals can however control only a fraction of the 2

25 impressions that customers receive about organizations, products and brands. Yet the fraction they control, if handled well, can make a major difference in customer perceptions and organizational success. Handling marketing communication tools well means working them in tandem, creating a consistent and distinctive brand-building message stream, or in essence strategic consistency. The integrated marketing communication concept and processes presented in this study are those used by organizations that truly put the customer first. Although the term used for this study is integrated marketing communication, in the 1990s, various terms saw the light as a result of the differences between the field of study of advertising, marketing and public relations. These terms include integrated marketing communication, convergent communications (Newsom, Turk- & Kruckeberg, 2000:7), co-ordinated communication (Caywood, 1998:90), the new public relations (Caywood, 1998:90), integrated communication (Gronstedt, 2000:4), integrated brand communication (Duncan,.2001:vii), customer relationship management (Duncan & Moriarty, 1997:iv) or even integrated corporate communication (Wightman, 1999:18). Even so, despite differences in the naming of this idea, the notion of "integrated marketing communication" became the dominant marketing communication idea in the 1990s (Schultz, 1999a:11). In this new business environment, organizations have learned that integrated marketing communication practices and principles will help them build the customer relationships that create profitable brands (Gronstedt, 2000:7). The traditional promotional approach is a suitable means to acquire customers and create a sales transaction. However, such a transaction is a single interaction that ends once the sale is made, and one transaction does not create a customer relationship. A customer relationship, in contrast, consists of a number of interactions, including sales transactions that are repeated over time. 3

26 Building customer relationships and integration is an organizational challenge (Duncan, 2001:79). This is because there are so many parties involved in managing brand relationships. An organization cannot build relationships externally until it builds them internally. This building of relationships, internally in the organization, affords public relations the opportunity for its utilization in the organizations, as public relations is essentially about building relationships with internal and external stakeholders (Skinner & Von Essen, 1999:4). The coordination of brand messages being created and delivered by all the departments in an organization is extremely difficult. That is why practising integrated marketing communication often involves organizational restructuring. It is also why integrated marketing communication is more widely and successfully practised in smaller organizations (Harris, 1998:x). Nevertheless, larger organizations recognize the value of integrated marketing communication and are working to be more focused through better internal integration (Duncan, 2001:4). Similarly, Moriarty (2002:1) accentuates the growth of integrated marketing communication in stating: "Integrated marketing communication is enjoying a growth in awareness, particularly among larger companies. More than half (54 per cent) of the 179 polled say their companies are implementing some form of integrated marketing communication, and 75 per cent of large companies are doing so". Based on this acknowledgement of the importance and acceptance of integrated marketing communication, an organization must however first know who its customers are, to develop a relationship with these customers. Integrated marketing communication uses customer databases to identify customers and thus to create the possibility of establishing a personal, two-way dialogue with them (Spotts & Lambert, 1998:214). Further to this, integrated marketing communication is neutral about marketing communication functions and the media, using a technique that lets each unique brand situation determine the best combination of marketing communication and media. Integrated marketing communication therefore proposes that all marketing communication functions 4

27 and media have an equal opportunity to be used for a specific brand situation (Duncan & Moriarty, 1997:11). The field of integrated marketing communication is therefore currently in a dynamic, though ever-evolving period. In this evolutionary period of the concept, it would appear as if much literature exists on integrated marketing communication. Many of these texts claim to be focusing on integrated marketing communication, but they are in truth merely traditional promotional approach texts, which cover promotional elements, but not true integration. In addition, most of these texts exclude various other integrated marketing communication mix elements and some of the literature, advocating the idea of integrated marketing communication does not view integrated marketing communication as an organizational process, but merely as the superficial integration of a message for a specific campaign. Additionally, the study of some of the component elements such as advertising, sales promotion, personal selling and direct marketing (Wilson, 2001:1) is not in itself unique, as there is a multitude of research that has been conducted on these elements of integrated marketing communication. This can be seen in, for example, the research into the usefulness of online Internet-based advertising (McMillan, 1997:1). Furthermore, Krishnan and Chakravarti (1993: ) studied the effects of traditional advertising on customer attitudes through branding, and Smith (1994:26) further studied the effects of sales promotion on operant conditioning Public relations in integrated marketing communication The various functions within integrated marketing communication contribute to the synergistic functioning of the integrated marketing communication strategy of an organization. These functions can occur individually, but they contribute cumulatively to the synergistic functioning of the integrated marketing communication of an organization. One such function is that of public relations. 5

28 According to Harris (1998:x), the marketing communication function that has received the most interest in integrated marketing communication is public relations. "Public relations can account for its growth by its great versatility, its aptitude for drama, and its capacity to break through the information clutter and capture attention and interest." (Harris, 1998:x.) Although public relations appears to be an important concept in integrated marketing communication (Harris, 1998:x), there is not much literature-based evidence that supports the specific role of public relations as a marketing communication function within integrated marketing communication in terms of empirically-based research. Thus, the need for the direct empirical examination of the role of public relations as a contributing element of integrated marketing communication in order to narrow the gap between literature and empirical evidence. Before the literature-based evidence can be examined, the following issues should be borne in mind, in order to understand the rise in importance of public relations within the field of integrated marketing communication: Firstly, the premise of integrated marketing communication that all communication functions play an equally important role ensures that the importance of public relations could increase in integrated marketing communication. The reason why there is a need to recognize the importance of public relations is that many marketing people in the past did not always recognize or appreciate the value of public relations (Duncan, 2001:529). Secondly, because of the turf battles between the different functions, public relations professionals were typically negated to focus on non-profit organizations and media groups, and were therefore not significantly involved in managerial issues. Some major steps towards bringing the 6

29 marketing and public relations departments closer came in the early 1990s with the development of the concept called relationship marketing, pioneered by Regis McKenna. At the same time, courses devoted to relationship marketing began to develop in business schools around the world through the efforts of scholars such as Jag Sheth at Emory University in Atlanta, Christian Gronroos in Finland and Rod Brodie in New Zealand. McKenna (1991:2) challenged the marketing industry to become more customer-centric and to improve their understanding of customer relationships. "Advertising, promotion, and market-share thinking are dead, and what counts are the relationships a company develops with its customers, suppliers, partners, distributors even competitors." (McKenna, 1991:3.) Public relations professionals have, according to Duncan (2001:529), always understood the concept of relationships seeing that the word relations is part of the job title. Thus, the importance of public relations messages in the brand decision process, its usefulness in announcing new products, helping prospects and customers find information and establishing credibility for the brand. Furthermore, according to Caywood (1998:93), the public relations professional is a crucial ingredient for success in the practice of integrated marketing communication, because of its most important contribution of public relations to integrated marketing communication: - its ability to lend early awareness and credibility to a product, service or idea in the organization. Thus, the preceding discussion illustrates that there is a rise in the importance of public relations as a marketing communication function within integrated marketing communication. Based on the above, it is clear that the concepts of integrated marketing communication and public relations are the main conceptual focus of the study. 7

30 1.3 PROBLEM STATEMENT To be able to contextualize these concepts into an organizational setting, as integration is inherently bound to organizations, and not an isolated concept, it was decided to examine these concepts within the tertiary education domain. The first consideration for the tertiary educational sector as the domain for this study is the need to change the tertiary education institution's approach to marketing communication, to an approach based on the various environmental changes (locally as well as internationally) that have taken place in this sector. From a local perspective, there is a need for tertiary institutions to position themselves within the sphere of the new plan on higher education in South Africa, in order the institution to conform to the government's demands, as the government is ultimately the single greatest provider of funding. This impacts on the study to the extent that the government is recognized as a key stakeholder, from its position as funding authority (Anon., 2000a:5). Furthermore, based on the new plan on higher education in South African, the current recruiting and Marketing communication actions will have to change towards a more inclusive and representative approach in terms of objectives. This will be in terms of not just aiming recruiting at schools, but also at adult learning and further in terms of globalization on the level of e-learning (Anon., 2000b:2). Furthermore, the government's newly launched initiative, "The new plan on higher education", requires that some technikons merge with some universities. This widens the scope of external communication immensely, as the two legacy institutions serviced two distinctly different markets. The new unified institution's market is therefore set to increase, not in market share, but rather in market breadth. From an international perspective, the change in the local educational environment has been confirmed with the changes found in the environment in 8

31 which universities function (Shattock, Booth, Wagner & Williams, 1998:95). Anon. (1998:2) confirms this notion in stating that "Higher education is confronted with formidable challenges and must proceed to the most radical change and renewal it has ever been required to undertake". In accordance with this notion, within the South African context, Anon. (2000a:6) states "Universities face their biggest challenge in 35 years as the Government... opened the door to institutional diversity, vocational foundation degrees, e-universities and differentiated tuition fees". First, a decrease in government funding has meant that the total undergraduate student numbers in tertiary institutions are effectively limited, and in addition students have to rely on ever-decreasing grants. Secondly, in 1992, the former "poly-technics" were given university status (especially in the United Kingdom). Similarly, in South Africa, a wide variety of colleges and educational institutes now offer accredited or franchised university competitive degree courses, thereby dramatically expanding the number and variety of degree courses on offer. Additionally, the South African tertiary educational domain has changed with the increase in international universities and colleges establishing themselves in the South African market. This is proving to provide even more competition to state-funded universities, although the education market has grown exponentially since the fall of Apartheid and the consequential access to education given to the masses, a market historically occupied by mainly white South Africans. Thirdly, technological changes have lowered the cost for students entering the market, leading to an increase in both distance learning and Internet-based courses (Naude & Ivy, 1999:126). Estimates of the exact nature of the decline in overall applications vary from 7.5% (Scott-Clark, 1995:1) to 1.5% (Tysome, 1996:3) in undergraduate numbers. Although this reduction in student numbers varies between tertiary institutions, many of them are finding themselves operating in an unfamiliar environment: having to compete for students. One result of these environmental changes in the tertiary education domain has been that these institutions are marketing themselves more aggressively in order to increase their market share, whether in 9

32 terms of student numbers or in terms of the quality of those enrolling (Lomas, 1996:62). Furthermore, O'Brien and Deans (1996:33-34) state that since the 1990s there also came a change in the type of student that enrols at university. MacFarlane (1993:29) believes this to be more a change of attitude to university life than the type of student, with students being much more employment oriented from a very early stage in their university career. This more strategic approach by students that study is a stepping-stone to future employment is very different from students perceiving the university experience and the pursuit of learning as the overriding stimuli. The link between these environmental changes and the marketing communication of tertiary institutions is highlighted by a study conducted in the USA in 1995, regarding 300 educational institution administrators, whose institutions were facing declining student enrolment, increasing cost and rising tuition fees, who were asked the question "What is marketing communication?" The results indicated that 61% viewed marketing communication as a combination of selling, advertising and public relations. Another 21% said it was only one of these three activities and only a small percentage knew that marketing communication had something to do with the broader scope of relationships with stakeholders (Kotler & Fox, 1995:6). It can therefore be interpreted that the tertiary educational domain needs to adapt its marketing communication approach, because of the environmental factors threatening its functioning. The extent to which the marketing communication activities of universities have been undergoing fundamental changes has been well documented by Smith, Scott and Lynch (1995:40) who identified five phases in the development of marketing communication activity, culminating with the current phase of what they term 'The marketing institution". Such institutions have an integrated 10

33 marketing communication function, increased interdepartmental co-ordination and appropriate organizational structures. Therefore, the need for integrated marketing communication and the application of integrated marketing communication within the tertiary educational domain is necessary from these environmental changes. Within the tertiary educational domain, RAU as a primarily state-funded university similarly experiences the impact of the above-mentioned environmental factors. Firstly, this impact is evident through the 2.4% decrease in undergraduate student numbers per year from 1998 (Anon., 2000b:3). A possible reason for this decline in student numbers can be the decline in government funding that forces students to rely on grants that are not always sufficient. Secondly, RAU is to a great extent impacted by the new plan on higher education, which requires the possible merger of RAU with the Technikon of the Witwatersrand. This will significantly impact on the way in which RAU would market themselves, as two distinct sectors within the tertiary educational domain must now function and market itself as an inclusive unit. Also, within the changing tertiary educational domain, RAU's marketing communication approach will have to become more inclusive, and therefore not only focus on school leavers as potential students, but also keep adult learning and e-leaming in mind when recruiting students. Thus, based on the changed environment within the tertiary educational domain, the Division of Public Relations at RAU commissioned this study on the research topic. 1.4 RESEARCH QUESTIONS AND AIM Based on the problem identified in the tertiary education domain, the research questions are as follows: Where does RAU, as an organization, stand on the integration scale as determined by the integrated marketing communication mini-audit? 11

34 What is the role of public relations, as a marketing communication function, in RAU's integrated marketing communication approach? The aim of this study is therefore to determine where RAU, as an organization, stands on the integration scale of the integrated marketing communication audit, and to determine the role of public relations as a marketing communication function in the integrated marketing communication approach of RAU. 1.5 EMPIRICAL RESEARCH Research strategy For the purpose_ of this study, qualitative and quantitative research is used. Triangulation is used in the study to improve the profundity of the understanding of the research, by applying the two independent research methodologies. These methodologies, though independent, are supportive of each other, because if both results support the dominant concept, they will greatly enhance the validity of the result of the study Research design The research design for the purpose of the study is in the form of a case study. The case being studied for the purpose of this study is the tertiary education domain. According to Mouton (2001:150), the strength of the case study research design is its high construct validity and its in-depth insights. The study will further follow an exploratory approach, in that this study is merely a starting point for the Public Relations Division on the exploration of its integrated marketing communication approach. Additionally, the study seeks to explore the specific case under consideration (the tertiary education domain) to argue towards a logical conclusion and not necessarily to prove it (Stake, 1995:47). The literature review is used, throughout the study, as a basis for interpretation to 12

35 enable the realization of the conclusion Research methodology The research of this study is divided into two phases. The first phase consists of the quantitative research methodology, attempts to establish the extent to which RAU's marketing communication strategy is integrated. It is crucial to note that all organizations are naturally integrated to some extent (Duncan & Moriarty, 1997:14). Therefore, in this study, it is not necessary to establish whether RAU as an organization is integrated, because of the inherent integrative nature of all organizations. The focus is therefore on the extent to which RAU is integrated. The research methodology used in the first phase of this study is the integrated marketing communication mini-audit. This is a written, structured questionnaire developed by NorthWestern University, Colorado, USA to measure the extent to which an organization is integrated as a whole. A main hypothesis is stated, with sub-hypotheses to ensure an in-depth exploration of the research problem. These sub-hypotheses form the primary components of each statement in the integrated marketing communication audit. Based on the commissioning of this research study, it is necessary first to establish where RAU is positioned on the integration scale, so that recommendations for the University can be made, based on the in-depth literature review. In the second phase of the research, the focus was on public relations as a marketing communication function within RAU's integrated marketing communication approach. The reason why public relations is chosen from all the various marketing communication functions available for contributing to the overall integrated marketing communication approach is based on two primary grounds. Firstly, public relations is chosen because of its historical use and prominence within the Public Relations Division at RAU; therefore, attempting to establish what the exact role of public relations is because of its prominence. 13

36 Secondly, the public relations role is explored, because of the increasing importance and global realization of its contribution to an integrated marketing communication approach as discussed in section 1.2. The purpose of the second phase of this study is therefore to determine the role of public relations, as a marketing communication function, in RAU's integrated marketing communication approach. The research methodology used for the purpose of this second phase is in-depth face-to-face interviews with the heads of sub-divisions in the Public Relations Division at RAU. In this study, the investigation of phase two (public relations within integrated marketing communication) causes phase one (where RAU stands on the integrated marketing communication mini-audit scale) to be investigated more significantly. The extent to which RAU is integrated is the main focus of the study, but adding the second phase offers more insight into the study. The second phase of this study is thus used to enrich the first phase of the study. L6 KEY PARAMETERS For the purpose of this study, it is necessary to set parameters so as to clarify certain concepts, to avoid misinterpretation. Firstly, it is necessary to note that the concept of marketing communication refers to marketing communication in the broadest application thereof. Therefore, not viewing it in a similar sense as the applications of the promotional and communication mixes, but marketing communication, for the purpose of this study is focused on all communication instruments combined to the best utilization for a specific campaign. Secondly, according to Steyn and Puth (1999:198), and for the purpose of this study, stakeholders are defined as follows: "..groups of people are stakeholders 14

37 when they are affected by decisions of an organization or if their decisions affect the organization". Steyn and Puth (1999:198) further state that publics form when stakeholders recognize the consequences of an organization's behaviour as a problem and organize to do something about it. For example, the residents of a community become a public when they become aware of the pollution caused by the organization's production processes and decide to approach the local city councel to complain. Therefore, the moment that a stakeholder group becomes aware of a potential problem caused by the behaviour of the organization, the stakeholder evolves as a public. Thirdly, it is significant to note that for the purpose of the study, the term public relations is used and not corporate communication. The reason for this is that the study focuses on public relations as a marketing communication function per se and not public relations in the broader sense of the word to mean corporate communication. Corporate communication implies the overall corporate communication strategy of an organization (Steyn, 2000:21). This suggests that corporate communication has a broader application in the overall organizational communication, whereas public relations refers only to one of the marketing communication functions applied within the marketing communication approach of an organization. Although corporate communication is the preferred term used in various literature, according to Steyn and Puth (1999:6), theoretically it can be equated with public relations or communication management. Therefore, it is appropriate to use the term public relations for the purpose of this study. Fourthly, for the purpose of the study, it is necessary to understand that organizations are functioning in the Customer Century. In the Customer Century, organizations have to begin with, and focus very strictly on, the needs and wants of customers (the outside-in approach) in order to become a customer-centric organization. Furthermore, an integrated marketing communication approach will lead the organization to greater customer centricity. 15

38 By setting the key parameters of the study, any misunderstandings of terms are therefore limited. 1.7 DEMARCATION OF CHAPTERS From the background of the study, it is evident that two major constructs are identified, which are manifested in the research methodology. The structure of the study can be summarized into two different sections. These are the literature study (Chapters 2 5) and the empirical research (Chapters 6-7) Literature study Chapter 2 elaborates on the exploration of integrated marketing communication. The main aim of the chapter is to arrive at a thorough investigation into a true conceptual basis of the concept of integrated marketing communication, as various literature texts discuss the topic on a superficial and succinct level. Besides arriving at a definition for integrated marketing communication, Chapter 2 also makes a clear distinction between the old traditional promotional approach and how integrated marketing communication differs from the old approach. Furthermore, the factors that lead to the "need' integrated marketing communication approach are discussed in detail to establish the background for the relevance of such a new approach. To be able to achieve integrated marketing communication in an organization in this customer-centric environment makes it necessary for the organization to evolve through various levels of integration. These levels are discussed in detail. With the information obtained from this chapter, which serves as the foundational discussion of this study, it is necessary to contextualize integrated marketing communication in an organizational context. This is the aim of Chapter 3. 16