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

39 Chapter 3 provides the contextualization of the concept of integrated marketing communication by applying it to the Three-dimensional Approach, suggested by Anders Gronstedt, Ph.D. (2000). This pragmatic approach to integrated marketing communication forms the theoretical framework of the study. The approach is based on the integration of three dimensions in an organization. The first dimension is the integration of external communication, thus focusing on the process of involving everyone in the organization in both inbound and outbound communication with customers and stakeholders. To make this happen, management has to prepare, empower and support frontline employees through the process of integrated vertical communication (the second dimension). This second dimension is about opening up frequent, two-way communication among management and employees. Therefore, as established in the exploration of the concept of integrated marketing communication, the real revolution for an organization comes from the cross-function, cross-business and cross-region alignment of integrated horizontal communication (the third dimension). This third dimension integrates communication among people working in different business units, departments and countries. These three dimensions illustrate that integrated marketing communication needs to occur throughout the organization (external integration), ranks or hierarchy (vertical integration) as well as functions, business units and regions (horizontal integration). Integrated marketing communication is not any one of these dimensions alone. All three dimensions need to be in place to acquire the full benefits of integrated marketing communication in the so-called customer century. In this chapter, the three-dimensional approach is used to illustrate the fundamental organizational processes and cultures that should be in place to apply the concept of integrated marketing communication as established in Chapter 2. Chapter 4 is an extension of the application of the concept of integrated marketing communication within the organization, based on the organizational 17

40 processes and cultures established through the application of the threedimensional approach. The focus of this chapter is the integrated marketing communication programme, which can be seen as an advanced stage in the development of an integrated marketing communication approach in the organization. Therefore, the processes and cultures discussed in Chapters 2 and 3 should first be in place, before the organization could consider the implementation of the integrated marketing communication programme. Various approaches to the integrated marketing communication programme are discussed. The focal approach for the study in this regard is the eight-step approach, suggested by Kitchen and Schultz (2000) because of its comprehensive and detailed implementation and application of the integrated marketing communication programme. The integrated marketing communication programme measurement process is also focused on. The barriers to integrated marketing communication are further discussed, because these can prevent the organization from achieving an integrated marketing communication approach. This idea of integrated marketing communication causes communication professionals to reconsider all the components and possibilities of marketing and communication, specifically to take into account the irreplaceable aspect public relations brings to integrated marketing communication. Public relations professionals are in tum, acquiring control of the opportunity that integration presents them, to make a difference on the bottom line of the organization. Chapter 5 examines public relations as a marketing communication function within integrated marketing communication. The concept of public relations and its objectives are discussed. The focus is on the traditional roles of public relations in order to compare them with the new image of public relations and the need for credibility. The overlap of marketing and public relations is discussed to arrive at the concept of marketing public relations and how it adds value to integrated marketing communication. Many scholars suggest that public relations should lead the total integration in an organization. This notion is 18

41 explored. To link the role of public relations to integrated marketing communication, two fundamental approaches of integrated marketing communication (namely message typology and synergy approach) are discussed. The distinct role of public relations based on these roles within integrated marketing communication is discussed Empirical research Chapter 6 consists of the representation of the methodology as well as the description of the data gathering and processing of the research methodology. This entails determining firstly where RAU stands on the integration scale of the integrated marketing communication mini-audit. Secondly it entails determining the role of public relations as a marketing communication function in this integrated approach of RAU. Chapter 7 presents the results and the interpretation thereof for the study in addition to specific conclusions and recommendations. It relates to RAU's position on the integration scale as well as the role of public relations within this integrated approach. Results are thus given and brought into context by linking them to the findings of the literature overview. 19

42 CHAPTER 2 INTEGRATED MARKETING COMMUNICATION 2.1 INTRODUCTION Integrated marketing communication is analogous to musical instruments. Different musical instruments are not interchangeable even though they can play the same tune. In the same way, different forms of marketing communication may convey the same underlying messages, but the tone of the messages will vary. Integrated communication is like a band. The different communication "instruments" advertising, public relations, database marketing, media specialists, sponsorships, websites, sales, packaging, direct marketing, interactive and event marketing are just like different musical instruments. By bringing all these communication "instruments" together, integrated marketing communication enables the right hand to know not only what the left is doing, but also to also know what the feet, amts and legs are doing. As a result, the unified body is stronger than its many individual parts. In the practice of this unified integrated marketing communication approach, the various marketing communication professionals are busy finding shared ground to meet the challenge of selling to customers rather than markets. If this is to be accomplished, the effort must be to make marketing communication more customer oriented. As the centre of innovation shifts from the laboratory to the customer, the organization's marketing will be defined by the customers' agenda. Organizations now face sophisticated customers who are no longer content to be, as it were, at the end of a marketing food chain that starts with the premise: "We speak, you listen". In a business environment like this, the premium will be placed more on the relationship between the organization and its customers and less on the 20

43 transaction with the customers. To build profitable stakeholder relationships, organizations must initiate and maintain a dialogue that can lead to long-term relationships. Integrated marketing communication is critical to this process, because it provides the skills and new ways of thinking that are necessary if organizations are to create and manage such a dialogue successfully with its stakeholders. In this chapter, the key concepts in integrated marketing communication are reviewed to create the context for this chapter, after which the definition and evolution of integrated marketing communication is discussed. The shift from traditional marketing communication to integrated marketing communication will then be the focus as well as marketplace trends that have necessitated new ways of communication in the Customer Century. The shift to integrated marketing communication progresses through a series of stages. These multiple stages of integrated marketing communication will be discussed. 2.2 KEY CONCEPTS IN INTEGRATED MARKETING COMMUNICATION To understand integrated marketing communication, it is essential to have a basic understanding of a number of important concepts related to the field. For this reason, the following section will explain the basic constructs of marketing, the marketing mix, the promotional mix, and marketing communication, after which the question of what exactly is meant by integrated marketing communication, will be posed Marketing Marketing, as an academic and practical discipline, is a product of the twentieth century (Kitchen, 1999:20). The American Marketing Association's (AMA) definition of the word marketing introduces a number of key concepts: "the 21

44 process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals" (Bennett, 1995:244). Additionally, Evans and Moutinho (1999:4) refer to marketing as "the process of creating and providing what customers want in return for something they are willing to give (money, time, or membership)". According to these definitions, marketing involves the setting of (an) expectation(s) with customers and management, and the creation of reciprocal satisfaction through exchange processes. From these definitions, marketing can also be seen as a concept, as well as a process. It is evident, from Bennet's definition (1995:224) that marketing is a concept "a philosophy of business that focuses on meeting customer wants and needs" (Blythe, 1998:11) as well as a process "...process of planning..." This concept and process of marketing is based on the notion of customer wants and needs. Marketing further suggests that it (marketing) is a part of every employee's responsibility, since everyone in the organization is involved, directly or indirectly, in satisfying customers and other stakeholders (Duncan, 2001:13). Boone and Kurtz (1989:11) have the same opinion, and add that the marketing concept is a company-wide customer orientation with the objective of achieving long-term success. From this general objective, taking into consideration the marketing objectives and goals, the target segments and the market position that have to be defended, the tools of the marketing plan have to be decided upon. The marketer has a number of tools to hand: the instruments of the marketing mix The marketing mix The AMA definition of marketing given earlier in section contained a list of tools or marketing strategy areas that are together called the marketing mix. Traditionally, the instruments included in the marketing mix are divided into four components, called the four Ps of the marketing mix. These four Ps determine how goods or services are manufactured or provided, the pricing of the goods and services, the distribution thereof, and how the organizational communication 22

45 presents it (Duncan, 2001:14). The four Ps of the marketing mix are product (design and production), price, place (distribution) and promotion (Barenblatt & Sinclair, 1996:80). Promotion, the final element of the marketing mix, also consists of various elements to comprise the promotional mix. Therefore, although promotion is part of the marketing mix, it is also a mix in its own right From the promotional mix to the communication mix The fourth P, promotion, is the most visible instrument of the marketing mix (Pelsmacker, Geuens & Van den Bergh, 2001:3). Promotion involves communication instruments through which the organization communicates with its target groups and stakeholders to promote its products or the organization as a whole. Cross (1998:80) and Koekemoer (1998:2) state that the promotional mix consists of six elements: advertising, personal selling, sales promotion, direct marketing, public relations and sponsorship. However, due to the evolution in the marketing sphere, whereby marketing evolved into a more tailored, personalised approach, the emphasis is more towards communication and its functionality within marketing. This shift introduced a movement towards the communication mix, in preference to the use of the term promotional mix (Howard, 1997:32). The communication mix, according to Pelsmacker et al (2001:5), also consists of communication functions, but does not only focus on six elements (like the promotional mix), but includes at least 12 communication elements. These include: advertising, sales promotion, sponsorship, public relations, point-of-purchase communication, exhibitions and trade fairs, direct marketing communication, personal selling, interactive marketing, personal communication, mass communication, and image or theme communication. The communication mix is therefore a wider mix of elements than the promotional mix. 23

46 A fundamental characteristic of these two mixes is that they are predominantly, although not entirely, reliant on one-way communication. In other words, the messages are designed to be delivered to a target audience in a way that will have some desired impact, such as creating awareness or motivating a purchase (Morris, 1989:12). In contrast to this predominantly one-way communication approach of the communication mix, marketing communication became the answer to overcome the problem of one-way communication with a predominant two-way communication approach Marketing communication In the more contemporary views of the 1990s, the role of communication in organizations becomes broader, and it is to a greater extent focused on creating dialogue (Gronstedt, 2000:7). This implies that the customer can now also initiate communication and the organization responds to this or vice versa, should the organization initiate communication. This concept is reinforced by Broom, Lauzen and Tucker (1991:220), who state that marketing communication is used to create dialogue, and not only to dispense information, i.e. it is characterized by two-way communication. When comparing marketing communication with the promotional and communication mixes, it is evident that these mixes are inherently flawed as they limit the use of various communication instruments. In the promotional mix, and to a lesser extent the communication mix, the choice of communication functions available to the communication professional seems limited, when in reality it is not. This creates a problem, as it invariably places restrictions on the organization with regard to the selection of effective communication vehicles used to communicate with its audiences. In contrast to these mixes, marketing communication is used as the collective term for all the communication functions used in marketing a product or a service (Rotzoll and Haefner, 1996:31). The emphasis here is the use of the words collective and all. 24

47 In addition to the definition of Rotzoll and Haefner (1996:31), Bennett (1988:161) defines marketing communication as "various communication techniques such as advertising, personal selling, sales promotion and public relations/product publicity available to a marketer which are combined to achieve specific goals"' (Bennett, 1988:161). From this definition, the idea of combining, i.e. similar to the concept of a collective term as proposed by Rotzoll and Haefner (1996:31), the various communication vehicles make an important contribution, as an organization seldom uses just one of the marketing communication functions; most often, it uses a different combination thereof. Correspondingly, from the perspective of Pickton and Broderick (2001:3), marketing communication is, "communications with target audiences on all matters that affect marketing and business performance, and involves the management of the marketing communication mix". Marketing communication according to this definition firstly emphasises communication with all stakeholders (as did Rotzoll and Haefner (1996:31)), which can include communications with internal audiences, company stakeholders and external audiences other than customers. Secondly, this definition focuses on the principle that all communication with stakeholders should be managed actively. Therefore, it implies that marketing communication should be part of the strategic processes of an organization. According to Pelsmacker et at (2001:20), in recent years, marketing communication has become the favoured term among academics and some practitioners to describe all the communication elements of the marketing mix, which involve the communication between an organization and its target audiences on all matters that affect marketing performance. Unlike the marketing mix, where the four Ps are always present, the components of the marketing communication mix will vary widely. Also, the extent to which each marketing communication function is used will greatly vary depending on the specific product or service and the situation. 25

48 The purpose of marketing communication, as evident from these definitions, is to add value to a product for both the customer and the organization (Evans & Moutinho, 1999:119). Firstly, customers gain value from marketing communication by learning about what features, benefits and improvements the product has; and where the product can be purchased. In addition, customers also gain value when they purchase a brand ("a perception of an integrated bundle of information and experiences that distinguishes a company and/or its product offerings from the competition" (Duncan, 2001:761)) that is well known and has a good reputation. Secondly, organizations gain value from marketing communication, because without brand awareness, customers will not be likely to buy the organization's products or services. From the above, it is evident that marketing communication is the broadest in application, when viewed against the applications of the promotional and communication mixes. Marketing communication is therefore focused on all communication instruments combined to the best utilisation for a specific campaign. From the concept of marketing communication, the concept of integrated marketing communication has evolved. A discussion on the concept and evolution of integrated marketing communication follows below. 2.3 WHAT IS INTEGRATED MARKETING COMMUNICATION? In the 1990s, confusion abounded as to the exact definition of integrated marketing communication. Some people referred to it as "one-stop shopping" (Swan, 1993:42), while others regarded it as one consistent message (Duncan & Everrett, 1993:31). Integrated marketing communication has further been depicted as a management philosophy (Stewart, 1996:149; Comelissen, 2000:3), an educational movement (Hutton, 1996:3) and a unifying business practice (Burnett & Moriarty, 1998). These inconsistencies in describing integrated 26

49 marketing communication have prevented the development of a cohesive research stream in this area (Low, 2000:29). Wolter (1993:12) describes the consequence of this inconsistency as follows: "People are having trouble defining integrated marketing communication because the concept lacks a good, solid theory from which to start. Current integrated marketing communication practice suffers from superficiality..., ambiguity..., and a blurred focus". Based on these discrepancies in defining integrated marketing communication, it is necessary to examine definitions of the concept in order to arrive at a definition for the purpose of the study. The focus of this section will therefore firstly be on various definitions proposed for integrated marketing communication. These definitions are presented below in chronological order. The main concepts for each definition will be identified, after which a comparison will be drawn between these definitions. At its earliest application in the 1980s (Spotts & Lambert, 1998:211), integrated marketing communication was described as the integration of various communication vehicles within a specific campaign. From this initial description of integrated marketing communication, the line dividing it and marketing communication is integration. The introduction of integration immediately takes the notion of marketing communication one step further, in not only combining various communication functions, but also integrating these functions. Based on the description of Spotts and Lambert (1998:211), integrated marketing communication is therefore not merely a combination of communication instruments, but an integration of those instruments. According to this description of the term by Spotts and Lambert (1998:211), the premise of integrated marketing communication can be referred to as synergy. Synergy can be achieved when all such communication works in concert, as it ensures that stakeholders are exposed to consistent and complementary messages. In addition to the description by Spotts and Lambert (1998:211), one of the first definitions of integrated marketing communication was proposed by the 27

50 American Association of Advertising Agencies in This definition, focused on using more than just advertising, public relations and direct marketing communication to achieve maximum communication impact:...[integrated marketing communication is a] concept of marketing communication planning that recognizes' the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines general advertising, direct response, sales promotion, and public relations and combines these disciplines to provide clarity, consistency, and maximum communication impact (Caywood, Schultz & Wang, 1991:3). The contribution of this definition is that it views integrated marketing communication as a strategic process that adds value to the communication by combining various communication disciplines to create a powerful, clear and consistent message. By applying "clarity" and "consistency" in combination, it implies synergy, as stated in the description of Spotts and Lambert (1998:211). The limitation of the definition proposed by the American Association of Advertising Agencies in 1989 is the inclusion of only traditional promotional mix elements, excluding a broader array of communication instruments. in relation to this definition, Schultz (1991:101) uses the following definition of integrated marketing communication: 'The process of managing all sources of information about a product or service to which a customer or prospect is exposed which behaviourally moves the customer toward a sale and maintains customer loyalty". The key contribution of this definition is that it focuses on the process of integrated marketing communication as a process that should be managed actively, and therefore implies that it is not something that would just happen. Furthermore, by including "all sources of information" to which customers are exposed, the definition of Schultz (1991:101) focuses on a broader variety of communication functions available, in contrast to the definition of the American Association of Advertising Agencies in 1989, which is limited to the traditional promotional mix elements. Furthermore, this definition adds the need for a conscious, behavioural outcome from customers when communicating with them. Moreover, this definition's use of the maintenance of "customer 28

51 loyalty" implies that the outcome is not limited to a sale, and in other words does not stop there. Furthermore, by referring to customer loyalty, it indicates that there is a shift towards being a customer-centric organization, where the focus is more on the importance of the customer than on the organization. In addition to the definitions stated above, Tannenbaum (1991:3) views integrated marketing communication as follows when stating that:...[integrated marketing communication is] a renewal of a forgotten commitment made to customers. It is a return to the day when the customer was approached with respect. The customer conversation was two-way...it combines every form of communication the price of the product, where the product is sold, how it is displayed, labelling, packaging, what is said about it in the advertisements, direct marketing, public relations. It even includes what a company's employees say about the product in sale pitches, telephone conversations, cocktail parties... Integrated marketing communication is a return to building brand loyalty by building brands that deserve loyalty. Firstly, this definition makes a contribution to defining integrated marketing communication as it also includes an internal focus. Tannenbaum (1991) includes that intemal communication and actions also contribute to the communication efforts of the organization, not only the traditional audiences of the organization previously included. Another contribution of this definition is that it emphasizes the dialogue (a prominent feature of marketing communication) by moving away from the transactional style, to focus on a conversational style. Furthermore, this idea of two-way communication is a key characteristic of the concept of a customer-centric organization, as implied by the definition of Schultz (1991:101), as a lack of two-way communication will damage the organization's affiliation with customers and will ultimately destroy its customer-centricity. Similarly to the definition of Schultz (1991:101), Tannenbaum (1991) also emphasizes that all sources of information about the organization should be integrated. Tannenbaum (1991) further brings the concept of brand loyalty into the definition of integrated marketing communication, therefore also viewing brand loyalty as a behavioural change that should take place similar to Schultz (1991:101). 29

52 Additionally, Keegan, Moriarty and Duncan (1992:631) view integrated marketing communication as: 'The strategic coordination of all messages and media used by an organization to collectively influence its perceived brand value". The use of "strategic coordination" implies synergy through the coordination of complementary messages. Similar to the definition of Schultz (1991:101), the definition of Keegan et al (1992) focuses on the concept that all messages and media should be used collectively to create a greater impact. This definition of Keegan et al (1992) also focuses more on the influencing of the perception of the brand. This results in more of an attitudinal change than that is the case with the definition of Schultz (1991:101). More recently, Duncan (1997) defines integrated marketing communication as "the process of strategically controlling or influencing all messages and encouraging purposeful dialogue to create and nourish profitable relationships with customers and other stakeholders". Duncan (1997) uses the notion of controlling messages strategically, which is similar to the idea of managing all messages as stated in the definition of Schultz (1991) and is equivalent to the idea of strategic coordination of messages used in the definition of Keegan et a/. (1992:631). Duncan (1997) focuses however, more on relationship building as the outcome of the approach (e.g. "create and nourish profitable relationships"). A unique contribution of this definition is the inclusion of profitable stakeholders in the definition. This idea reflects the recognition of integrated marketing communication that some stakeholders are more profitable than others. Furthermore, by adding "stakeholders" to this definition, it moves the concept of integrated marketing communication beyond the customer target audiences to include all the relevant parties that have a direct or indirect impact or stake on organizational operations and profitability. Following on Duncan's (1997) definition, Harris (1998:7) defines integrated marketing communication as follows: "... is a cross-functional process for 30

53 creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging purposeful dialogue with them". The contribution of this definition is the idea that integrated marketing communication involves a crossfunctional process. The outcome of this process will then be not only to create (as stated by the definition of Duncan (1997)), but also to nourish profitable relationships with stakeholders and customers. The use of all messages to create purposeful dialogue between the organization and the stakeholders and customers is similar to the definition of Duncan (1997). The definition of Harris (1998:7) further agrees with the definition proposed by Duncan (1997) when it refers to "stakeholders", implying a broader audience than the customers of an organization. Moreover, Harris (1998:7) supports Duncan (1997) in proposing a two-way communication process in integrated marketing communication. Additionally, the definition of Harris (1998:7) necessitates action, in accordance with the definition of Duncan (1997) when stating "creating and nourishing profitable relationships". Gronstedt (2000:7) further defines the concept of integrated marketing communication as: "the strategic management process of facilitating a desired meaning of the company and its brands by creating unity of effort at every point of contact with key customers and stakeholders for the purpose of building profitable relationships with them". Therefore, the view that integrated marketing communication should be encouraged from a managerial level is recurring as stated in the definition of Duncan (1997), which sees it as a strategic process, therefore implying the practice of integrated marketing communication at a managerial level. The outcome of integrated marketing communication, from an organizational perspective, similar to the definition of Harris (1998), is to build and maintain profitable relationships. Another thought in this definition is the use of "unity of effort" whenever the organization communicates, or comes into contact with the audience or the audience comes into contact with the organization. This idea is not new in defining integrated marketing 31

54 communication, as it relates back to the combination of communication forms used in the definition of Tannenbaum (1991). Gronstedt (2000:7) agrees with Duncan (1997) that building profitable relationships is an important aspect of integrated marketing communication. Gronstedt (2000:8) has the same opinion as Duncan (1997) in that integrated marketing communication is a process of dialogue and interaction. However, Gronstedt (2000:7) adds the idea of learning in the relationships for the better cultivation of relationships with key customers and stakeholders. Gronstedt's key contribution (2000:8) is that he focuses on integrated marketing communication as a process that must permeate through the entire organization, rather than a quick-fix programme from the marketing or communication department. This definition of Gronstedt (2000) also implies, like Duncan (1997), that integrated marketing communication goes beyond customers, to involve other "stakeholders". Every contact point with customers and stakeholders has to be integrated strategically to build profitable relationships. This notion agrees with the external trend to be discussed in of increasing client expertise, which necessitates a new way of communicating with stakeholders. Organizations are becoming conscious that in addition to customers, other stakeholders are frequently just as valuable to communicate with. In one of the most recent definitions of integrated marketing communication, Duncan (2001:8) defines integrated marketing communication as follows: "It is a cross-functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them". Duncan (2001:8) includes all the key elements already mentioned as contributed by the other authors, but most importantly adds that the focus on two-way communication should be data driven. This is brought on by an increasing amount of communication taking place between the organization and the stakeholder, based on information obtained, and captured 32

55 into a database. This is reinforced by the internal trend of departmentalization, in the sense that, as organizations grow, they tend to function in separate divisions. This definition of Duncan (2001:8) is the most comprehensive and inclusive definition discussed in this section. Following on the various definitions stated above, the main elements of integrated marketing communication can be described as follows: Synergism, meaning the individual efforts, are mutually reinforcing with the resulting effect being greater than if each functional area had selected its own targets, chosen its own message strategy, and set its own media schedule and timing. Duncan (1997) best describes this concept as: "In marketing, synergy means that when all product and corporate messages are strategically coordinated, the effect is greater than when advertising, sales promotion, public relations, etc. are planned and executed independently, with each competing for budgets and power and in some cases sending out conflicting messages". Creating and nourishing stakeholder relationships: This means attracting new customers and then interacting with them to find ways in which the organization can further satisfy their wants and needs. The more satisfied customers or other stakeholders are, the more business or support they will give to the organization (Gronstedt, 2000:4). Nourishing means not only retaining customers and stakeholders but also increasing the organization's percentage of their category purchases and support. Each stakeholder group can affect the organization in a different way. Profitable customer relationships: Profitable customer relationships are specified, because not all relationships are of equal value to an organization. This implies that the organization should not waste valuable time and money on those who are unprofitable. The organization needs to determine which relationships with stakeholders are profitable and which ones are not (Shimp, 2002:522). The concept is to invest, reward and work with those stakeholder 33

56 relationships that can most impact on cost and revenue. For example, a person who has only a cheque account with a bank does not generate nearly as much profit for that bank as the customer who has a cheque account and a savings account, and finances his or her vehicle with the bank. Integrated marketing communication identifies the more profitable customers and directs a greater proportion of the marketing effort towards maintaining a relationship with those customers. Long-term: Fostering long-term relationships between the customer and the organization is an imperative. The Nordic School of relationship marketing 2 essentially espouses that all organizations are essentially service organizations that is, they are dependent on long-term customer relationships (Schultz, 1999b:8). A long-term view is thus required, and involving all parts of the organization in building relationships is key to its success. Strategic consistency: Strategic consistency is the coordination of all messages that create or cue brand messages, positions and reputations in the minds of the customers and other stakeholders (Duncan & Everett, 1993:30). The less consistency there is in what the brand says and does, the more the brand will be unfocused and diffused. Strategic consistency, from the customer's point of view, means "no negative surprises" as well as "easy recognition" of the brand. This does not mean, however, that every brand message should be the same. Messages need to vary by stakeholder and customer segment. Also, messages will differ by situation. Cross-functional process: This implies that all of the organization's major departments (including outside communication agencies) that affect the customer must have a means of working collectively in the planning and monitoring of brand relationships. A cross-functional process further integrates managers from different departments and agencies who are working on the same brand in order to plan and manage the messages an 2 A marketing school of thought that originally grew out of the research into service marketing in Scandinavia and Finland and quickly became an internationally recognised approach to service marketing research (Granroos, 1999:1) 34

57 organization sends to and receives from customers and other stakeholders. Strategically controlling or influencing all messages: This signifies recognising that everything an organization does sends a message how it makes its products, how products perform, how it sets prices, through what kinds of stores it provides its services or sells its products, and how its employees act. In other words, all messages refer to messages beyond only using the more traditional mixes' elements. To control or influence brand messages strategically, means to plan and monitor them to ensure they have consistent meaning. The messages must therefore not contradict each other. Encouraging purposeful dialogue: Communication is the comerstone of all relationships. Customers want the ability to interact with organizations and initiate a discussion when they have a need to do so, and to have this dialogue in a convenient way and at a time convenient to them. Data-driven communication: The integrated marketing communication process has been developed to achieve three goals more effectively and efficiently than the traditional promotional mix, namely: acquire, retain and grow profitable customers. Integrated marketing communication achieves all three in part by using prospect and customer information compiled in some form of a database. Data-driven communication is the optimization of all customer contacts through the distribution and application of customer information. Simply stated, it is the organization's promise, that no matter how the customers interact with the organization, it will always recognise who they are. Furthermore, data-driven communication requires the co-operation of all departments and divisions within an organization around this concept. From the above, the definition of integrated marketing communication for the purpose of this study, which involves a combination of the definitions mentioned, reads as follows: "Integrated marketing communication is the strategic management process of controlling or influencing all messages and encouraging 35

58 purposeful data-driven dialogue to create and nourish long-term, profitable relationships with key customers and stakeholders". To clarify the concept of integrated marketing communication even further, the origin of integrated marketing communication is discussed in the following section. 2.4 THE ORIGIN OF INTEGRATED MARKETING COMMUNICATION As has already been established, integrated marketing communication is an elusive concept. While its origins are somewhat debatable, the term integrated marketing communication appears to have emerged in the public relations literature in the late 1980s (Spoils & Lambert, 1998:212). Kitchen and Schultz (1999:21) oppose this statement in stating that the study of integrated marketing communication, as compared to the practitioner studies, which went before, had its beginnings with the Medill School of Journalism at NorthWestern University in the United States of America. Here, a keynote study led by Caywood (Caywood et al 1991) sought to analyze how the subject of integrated marketing communication was developing. This study served to spawn a new conceptual debate conceming integrated approaches to marketing communication activities. The literature before the Caywood et at (1991) study indicates that though tactical "one sight, one sound" integrated marketing communication had been mentioned, there had been little or no attempt to formalize this emergent concept (Kotler, 1972:46; Drucker, 1958:252). The following serves to help crystallize and position the current status of this debate. Following Caywood, Schultz (1991), an early writer on this topic and subsequent "product champion", attempted to standardise the integrated marketing communication debate in the United States. He argued that nothing (in the United States) had received as much publicity and discussion at leamed meetings, while seeing little real activity, as had the concept of integrated 36

59 marketing communication in At present, the concept is still undergoing development. An example of the developmental nature of integrated marketing communication was found in a special issue of the Journal of Marketing Communication (1996) where four of the five papers included were concerned with the theory building of integrated marketing communication and/or identification of key issues. In other words, integrated marketing communication is in a pre-paradigm (Duncan, 2001:6) as opposed to a post-paradigm stage (Mills 1959; Kuhn, 1964; Crane, 1972). Much of the early literature on integrated marketing communication is pre-paradigm in nature, i.e., to do with explanations of integrated marketing communication and how it can be used by clients or service agencies, rather than on theory building per se. This would be expected of a new concept for theoretical reasons. A new scientific concept can. be determined in part by the direct inspection of paradigms, a process that is often aided by, but does not depend upon, the formulation of rules and assumptions. Indeed, the existence of a paradigm need not even imply that any full set of rules exists (Kuhne, 1970:44). A further reason for integrated marketing communication still undergoing development is emphasised by Kitchen and Schultz (1999:3) by stating that integration in marketing communication was not the norm in Western cultures, despite papers to the contrary (Duncan, 1993, 1995; Duncan & Everett, 1993; Kitchen, 1993, 1994, 1996; Kitchen & Moss, 1995; Kitchen & Proctor, 1991; Kotler, 1972, 1986, 1997; Novelli, ; Waterschoot & Van Bulte, 1992). This shift can be explained by the fact that communication integration came along with modernization and the post-modern era where aspects cannot be used in isolation to be efficient, but needed to be integrated in the global arena (Schultz, 1999a:11). It is however important to note the speed with which most major marketing texts and more specialist works - such as the Gronstedt study (2000) - have adopted some type of integrated approach to the communication function (Kotler, 1991; Zikmund & D'Amico, 1996; Shimp, 1997; Belch & Belch, 1995; Keugman, 1994). 37

60 Since 1990, there have been several major studies done on integrated marketing communication. All four studies came up with two consistent findings: Integrated marketing communication is "a good idea", but only a small percentage of companies are practising integrated marketing communication on a high level of integration, as will be explained in the following section (Duncan & Moriarty, 1997:xiv). The four studies include: University of Colorado in cooperation with Advertising Age surveyed a broad range of 240 US businesses; NorthWestern University in cooperation with the American Association of Advertising Agencies surveyed a small sample of mega-companies in the US; Helen Mitchell (now at Cranfield's School of Management in the United States) surveyed United Kingdom companies, and R Sridhar, Ogilby & Mather Direct in Bombay surveyed Indian companies. In analyzing these studies, Duncan and Moriarty (1997:xiv) found that the reason so few organizations were practising "sophisticated" integrated marketing communication was that it could not really work unless organizations made significant changes in how they were organized and what their corporate priorities were. To be able to practise "sophisticated" integrated marketing communication, organizations should be aware of the shift from the traditional promotional mix to this integrated marketing communication perspective. This shift is discussed below. 38

61 2.5 THE SHIFT FROM THE TRADITIONAL PROMOTIONAL MIX TO INTEGRATED MARKETING COMMUNICATION According to Duncan and Moriarty (1997:xi), traditional marketing can no longer justify its existence. Organizations can no longer just make a product, price it, place it, promote it and expect to continue to exist in this linear, inside-out thinking (to be discussed in detail later in this section). Traditional promotional mix variables such as product development, pricing, form and type of distribution, or channels are no longer as effective as they were. The developments in computers and other new communication technologies, the expansion of the global marketplace, the growing competition among the various internal departments and external agencies, the move from a manufacturingbased economy to a service-based one, the increase in mergers and acquisitions, and the increase in customer demands requires that organizations completely transform how they communicate with customers and sell their products. In a less developed, less sophisticated, less informed marketplace, traditional marketing communication concepts worked well. Today, the traditional promotional mix variables on which marketers conventionally relied (a better product design, more production efficiency, restricted or limited product availability, willingness to take a lower margin on sales) have lost their value as competitive weapons (Duncan & Moriarty, 1997:xi; Schultz, Tannenbaum & Lauternborn, 1994:43). According to Duncan and Moriarty (1997:xi), the new competitive arena is brand value, which creates long-term, profitable brand relationships. A brand, according to Duncan (2001:13), is "a perception of an integrated bundle of information and experiences that distinguishes a company and/or its product offering from the competition". It is, however, important to note that the brand itself is not a physical entity but rather a perception that lives in the mind of the customer, based on the particular set of brand-related associations, experiences and 39

62 messages to which the customer has been exposed. Brand value, according to Duncan (2001:61), is the result of the organization's stakeholder franchise, in other words, the loyalty of its various stakeholders to the brand. Duncan and Moriarty (1997:1) state that the way in which organizations manage their brand relationships is becoming more important than products themselves. Brand value will therefore be determined by how well organizations not only create, but also retain and grow their brand relationships (Schultz, :3). Integrated marketing communication is the process for managing the stakeholder relationships (in order to get stakeholder loyalty) that drives brand value. The broader and deeper the support of various stakeholders, the stronger a brand will be. This is the reason why, in marketing communication, it is important to think not only of goods and services but also of the total brand offering. The product offering, involves not only the physical goods or the primary service function but much more: 'The [total product] package includes the functional utility of the good or service; assistance in applications development provided before the sale, training or repair services provided after the sale; timely delivery; and any brand name or reputation benefits that help the buyer promote its own products or services" (Cespedes, 1995:244). How this total product package or offering is perceived is therefore what makes up a brand. When referring to integrated marketing communication, the idea of a total product package is important, because integrated marketing communication is based on the fact that everything an organization does and sometimes what it does not do (the total offering of the organization) sends a message that will affect the brand. According to Anchrol (1991:82), the fundamental view of marketing has shifted to a large degree, from the 1960's four "Ps" (product, price, place and promotion) to the 1990's four "Cs": customer, cost to satisfy needs, convenience to buy (including negotiating terms and conditions) and communication (dialogue 40

63 between field sales, the corporate office and the customer). The contrast between these two approaches can be summarized as follows: Four Ps: Inside-out Focus Four Cs: Outside-in Focus Product ---> Customer Price -,. Cost to satisfy need Place --> Convenience Promotion > Communication Table 2.1 Moving from the four Ps to the four Cs In most organizations, changing from a focus on the traditional four Ps to more of a customer focus requires a major change in the corporate culture and in the marketing strategy. In other words, an organization must move from using inside-out thinking (Focusing on the needs of the organization), to using outsidein thinking (focusing extemally on customers' needs and wants) (Duncan, 2001:14). Inside-out thinking starts with the organization's needs, whereas outside-in thinking starts with the customer's needs (Schultz, 1993b:8). Schultz (1993b:8) summarizes the outside-in approach as follows: Always start with the customer. The key is knowledge of the customer as a person; In this approach, the marketers are constantly trying to build a relationship with the customer, to get and keep a customer over time; Value the customer in some way. In this approach, the marketers know which customers they want to keep and which ones they want to let go; and Marketers in this approach are driven by effectiveness, not just efficiency, by knowing the value of the customer. 41

64 The four Cs model shows that the focus should be on customer wants and needs (marketing communication) versus products (traditional promotional mix). This is also the essential difference between inside-out and outside-in thinking. Pricing is another area where the focus shifts from inside-out to outside-in thinking. Instead of focusing on how to price a product, the organization focuses on what it costs to satisfy a customers needs. For example, a certain car made by Renault may cost less than a similar model made by Ford. However, if the Renault breaks down more often, requiring more repairs, the Renault ends up costing the customer more than the Ford does. Likewise, the shift from place to convenience indicates a focus on how easy it is for customers to acquire the product, rather than on how easy it is for the organization to distribute it. Based on easy access of information, this has been one of the primary reasons that direct-response marketing has been so successful (Duncan, 2001:14), and also why electronic commerce (e-commerce) has enjoyed exceptional growth in recent times. Customers can now buy products easily without leaving their home they merely go online or call a tollfree number, and the product is delivered within a few days. The final shift for marketing communicators is the one from promotion to communication. Traditionally, promotion has meant sending brand messages and offers to customers, using predominantly one-way communication. The new way of marketing communication thinking focuses on opening up opportunities for dialogue. In other words, the shift for the organization is from "telling and selling" to "listening and leaming" (Schultz et al., 1993:12). Duncan and Moriarty (1997:4) as well as Duncan (2001:15) strongly agree that two-way or interactive communication is the "lifeblood" of strong brand relationships. The four "Cs" are not designed to replace, but rather refocus, redirect and examine the true market engine; the customer (Reich, 1998:27). The four Cs model can be seen as a simplified way of demonstrating how the integrated 42

65 marketing communication focus is different from the traditional marketing focus. This does not mean the four Ps are unimportant, but rather that they have an external dimension that must be taken into consideration and managed when building a brand (Duncan, 2001:15). In essence, this implies that the old traditional linear production-based value chain needs to be replaced by the non-linear, interactive value field a brand relationship environment (or customer-centred environment) containing many stakeholder groups, extensive brand contact points, aftermarket support, the reputation of the organization, customer recourse and relationship-sensitive factors (Duncan & Moriarty, 1997:xii). The primary differences between traditional marketing communication (inside-out approach) and integrated marketing communication (outside-in approach) concepts can best be summarized by Table 2.2, as suggested by Duncan and Moriarty (1997:xii), and Duncan and Caywood (1996:21): Focus of Traditional Marketing Focus of Integrated Marketing Communication Communication Transaction Relationships Customers Stakeholders Mix of marketing Strategic consistency in brand communication tools messages Mass media (monologue) Interactivity (dialogue) Cause marketing Mission marketing Adjust prior year's plan Zero-based planning Specializations Core competencies Functional organizations Cross-functional organization Mass marketing Data-driven marketing Stable of agencies Communication management 43

66 agencies Table 2.2 Differences between traditional marketing communication and integrated marketing communication The 10 drivers of brand relationships as referred to by Duncan and Moriarty (1997:16-19) include the following: Creating and nourishing relationships rather than just makitig transactions. Traditionally, marketing communication has been a process of developing and sending out brand messages to create sales, i.e. transactions (Duncan, 2001:62). Organizations have learned, however, that they can be more profitable by focusing on building customer relationships rather than on just transactions. It is increasingly more costly to acquire a new customer (Harris, 1998:4). Therefore, organizations are finding that putting more investment into growing current customers is more cost-effective (Duncan & Moriarty, 1997:16). The more organizations know about current customers and the more they can use this information when communicating with these customers, the more credibility their communications will have and the stronger the relationship between the organization and the customer will become. Focusing on stakeholders rather than only on customers and/or shareholders. Integrated marketing should not be limited to managing relationships with customers but used for planning and monitoring relationships with all stakeholder groups. By definition, all the stakeholders have a vested interest in the success of the organization. What the organization does affects them, and what the stakeholders do affects the organization. Maintaining strategic consistency rather than independent brand messages. Recognising the communication dimensions of all brand contacts and sources of these messages is critical because they impact 44

67 positively or negatively on the behaviour of customers and other stakeholders. The more the brand's position is strategically integrated into all the brand messages, the more consistent and distinct will be the organization's identity and reputation. The more a "big idea" is emphasized, the more likely all the marketing communication efforts will have integrity. Generating purposeful interactivity rather than just a mass media monologue. Interactivity is itself a form of integration (Duncan & Moriarty, 1997:17). A balance between mass, personalized and interactive media is used to enrich feedback from customers, and to reach them. The more customer feedback and dialogue is facilitated, the more integrated the customers can be into the organization's planning and operations. This means the organization achieves more listening and learning, and less telling and selling. Marketing a corporate mission rather than just product claims. According to Duncan (2001:31), the only way a genuine mission makes a positive contribution to an organization is when it is integrated into everything that the organization does, regardless of the department or programme. Using zero-based planning rather than altering last year's plan. Zerobased communication planning means that all communication objectives and strategies must be justified in terms of what needs to be done to manage relationships better as opposed to simply adjusting the previous year's allocations and programmes (Duncan & Moriarty, 1997:18). Using cross-functional rather than departmental planning and monitoring. Organizationally, integration is about linking expertise and sharing information (Aakar & Biel, 1993:1). A cross-functional management process for planning and monitoring relationships provides a way to link (rather than merge) specialty departments and functions, allowing them to maintain their specialisation but eliminating their isolation (Duncan, 2001:763). 45

68 Creating core competencies rather that just communication specialization and expertise. All marketing communication professionals should have a basic understanding of the strengths and weaknesses of major marketing communication functions. Experts are needed in the organization to produce materials, but communication generalists are needed to plan and manage an integrated marketing communication programme. Using an integrated agency, rather than a traditional, full service agency. A communication management agency takes responsibility for coordinating a brand's total communication programme. It handles the planning and routine executions internally, but when communication expertise is needed, it has relationships with other specialist agencies that can provide it. It continues to monitor the work of the specialist agency to see that they remain focused on strategy and execute at the appropriate level of quality (Duncan & Moriarty, 1997:19). Building and managing databases to retain customers rather than acquiring new customers. Information is the bloodstream of integration (Duncan & Moriarty, 1997:19). How customer and other stakeholder data are collected, organized and shared determines whether or not an organization has a record of its stakeholders' transactions and interactions. Without a programme of building and using databases, it is difficult for the organization to create personalized communication (Duncan, 2001:62). Gronstedt (2000:5-8) describes this shift from the traditional marketing communication to the integrated marketing communication approach as a shift of focus from the production-based approach, where the emphasis is on "selling what we make" (tell and sell approach), to the customer-based approach, where the emphasis is on "make what customers want". In the customer-based century, integrated marketing communication is a concept and an interactive process for not only acquiring, but also more importantly, for 46

69 retaining and maximizing the lifetime value of brand relationships. It is based on the fact that everything an organization does, and sometimes what it does not do, sends a message. It recognizes and responds to the fact that everyone in the organization increasingly has the potential to "touch" the customer in a contact point (Gronstedt, 2000:6). Every brand message has one of three effects as stated by Duncan and Moriarty (1997:xii): Strengthens relationships by adding value; Reconfirms current relationships; or Weakens brand relationships by reducing brand value. Having a process for managing brand relationships is critical in the new integrated marketing communication approach, because relationships are the components of brand equity. Brand equity, according to Duncan (2001:47), "is the intangible value of a company beyond its physical net assets". The author explains the concept of brand equity further by stating that brand equity is the value attached to a brand based on the quantity and quality of relationships with customers and other stakeholders. Brand equity represents the net-sum support that is determined by the relationships an organization has with its stakeholders. In essence, brand equity is therefore determined by the quality of a brand's relationships with its customers and other key stakeholders (Duncan & Moriarty, 1997: xiii). This shift from the traditional promotional mix to the integrated marketing communication approach has caused a new sentiment in the business world. These trends are discussed below. 2.6 MARKETPLACE TRENDS THAT HAVE NECESSITATED NEW WAYS. OF COMMUNICATING This shift from the traditional promotional mix - with its emphasis on transactions - to integrated marketing communication, with the emphasis on brand 47

70 relationship building, are driven by trends and situations. These marketplace trends, both inside and outside organizations, have made relationship building a critical element of any organization's success. These trends include internal, or organizational changes, and external or marketplace changes Internal or organizational changes Integration in an organization must exist internally if the organization is to communicate effectively with the stakeholders. There are however internal situations that cause marketing communication efforts to disintegrate: Departmentalization: As organizations have grown bigger and bigger, they find themselves composed of highly separated departments and divisions that have been grouped in order to maintain accountability and control. With each new department and division in the organization, increased competition for budgets, staff and recognition occurs. Senge (1990:24) explains this as follows: "Functional divisions grow into fifdoms, and what was once a convenient division of labour mutates into the 'stovepipes' [departmental silos] that all but cut off contact between functions. The result: Analysis of the most important problems in the organization, the complex issues that crossfunctional lines, becomes a perilous or nonexistent exercise". This means that unless organizations integrate operations that communicate with customers and other key stakeholders, they will have little success in building profitable brand relationships (Duncan, 2001:30). Increasing mergers and acquisitions of marketing communication agencies: Top public relations firms are presently owned or merged with advertising agencies (Duncan & Caywood, 1996:15-16). For example, Twilight Advertising and Promotion Holdings (Anon., 1999a:11) and TinCan Communication (Olwagen, 2001) were both previously public relations firms that merged with advertising agencies in ordir to provide a full marketing communication function to South African clients. Although mergers have 48

71 resulted in few clients moving all their communication business under one roof (Reich, 1998:27), their mergers have underlined that certain advertising agencies recognise that these other forms of marketing communication are important and will comprise an increasing portion in their clients' marketing communication activities (Duncan & Everett, 1993:33). Increasing pressure on bottom lines: The financial community continues to look at quarterly earnings of public organizations, thus driving managements to force marketing to do more with less, and give priority to short-term rather than long-term results (Reich, 1998:27; Duncan & Caywood, 1996:16). The impact of this on marketing communication is that marketing communication professionals now have smaller budgets to create better tangible results. Furthermore, this also means that the marketing communication professional must be accountable for actions taken for, and on behalf of, the organization. Decreasing cost of using databases: The drastic cost reduction, coupled with the increased sophistication of audience segmentation, has provided marketers with a whole new way to reach target audiences more efficiently (Reich, 1998:27). According to Duncan and Caywood (1996:15), in the mid- 1970s in the United States of America, the cost of storing and retrieving a single name and address was about $1.50; today, it is less than one cent (US) External trends Literature suggests eight external situations in the marketplace that affect brand relationships and call for the development of more integrated forms of marketing communication: Decreasing message impact and credibility: Sacharin (2001) suggests that not only are customers becoming more insensitive to commercial messages, but the growing number of commercial messages also makes it increasingly difficult for a single message to have and effect. The reason for this trend is 49

72 that people are overwhelmed with the explosive growth in the new media form (Rice, 1995:1). Advertisements are everywhere not just on television, radio, billboards and in the print media, but also in bathrooms, on luggage, on taxis and even on fruit and vegetables. This ongoing bombardment of messages has desensitised people's senses (Duncan & Everett, 1993:30). Sacharin (2001:ix) states that the constant "noise" is leading to "an entire society with a form of attention deficit disorder". It is more difficult than ever before for new messages to break through the perceptual barriers of people because of this "techno-splosion" (Chiocchi, :3). Increasing client expertise: Clients are not only pressing on their agencies to be more cost effective today, but are also no longer accepting the idea that television advertising should be the traditional medium to reach customers (Duncan, 2001:29). At the same time, organizations are realising that besides customers, other stakeholders and publics are often just as important to communicate with (Kitchen & Schultz, 1999:21; Rice, 1995:1). Increathing "mass" media costs: While database costs were falling, increases in mass media far outpaced the customer price index throughout most of the 1980s (Kitchen & Schultz, 1999:21). This trend has continued throughout the 1990s and into the new millennium (Duncan, 2001:278). Mass media endeavours are increasingly expensive, while database management remains cost-effective, with the added bonus of rapid development in technology in spite of the low cost (Mader & Semenchuk, :2). Increasing media fragmentation: With the exception of the decreasing number of newspapers, the number of radio stations, television stations and magazines increased between 1980 and 1990, thus increasing the competition for customers' attention (Brody, 1994:20; Chiocchi, :3; Schultz, 1993c:20; Schultz et al.1994:21). According to the Lord Group study (1999) that won the ARF David Ogilvy Research Award - it took 38 years for radio to obtain 50 million users, 13 years for television to reach 50 million users and only five years for the Internet. A process that used to be gradual has become accelerated in today's marketplace (Rice, 1995:1). 50

73 Products induced upon the marketplace have a better opportunity to "find their market" more quickly (Duncan & Caywood, 1996:15-16). While it is still the survival of the fittest, the gestation period has been shortened (Reich, 1998:27). Increasing audience fragmentation: With the help of technology and more sophisticated research methods that resulted from technology3, organizations have increasingly been able to segment and target specialised audiences such as teenagers, affluent retirees and emerging markets more accurately (Duncan & Caywood, 1996:15-16; Reich, 1998:27). This has, in turn, placed more emphasis on finding media that can efficiently reach these niche markets (Rose & Miller, 1994:14). Misuse of new communication technology: Computer-driven databases have made interactive, one-to-one marketing possible, moving away from mass marketing. The Internet, too, has opened up new lines of external communication. There are also automated voice response systems and automated responses. However, organizations often use these technologies at the customer's expense. For example, automated voice response systems often make callers move through various menus without offering the desired option. All of these new communication technologies are utilized to save organizations money and/or to increase sales efforts with little regard for those being contacted. Increasing number of "me-too" products: With the increased ability to analyze and match successful competitive products, manufacturers have continued to flood retailers with new products that are nearly identical to many already existing products on the shelves (Rice, 1995:1). The fact that many of the new products have few, if any, significant differences, means that marketing communication must either create a strong brand image or deliver enough commercial messages to gain attention and sales (Schultz, 1996b:15; Reich, 1998:27). Such as "Bacon's Media Source Software", which lists mail, , and phone data of audiences (Wilcox, Autt, Agee and Cameron, 2000:461). 51

74 Increasing power of the retailer The power of the present retailers and the instant information provided by scanner data have led to the fact that retailers now have both the influence and knowledge to tell suppliers the kind of products and promotions they want and when they want them (Kitchen & Schultz, 1999:21). Most suppliers cannot afford not to cooperate (Duncan & Caywood, 1996:16, Rice, 1995:1). Increasing global marketing: Nearly every major organization is involved in global marketing in some way today. Even if an organization is not selling outside its native country, it must be aware that its competitors will increasingly be foreign based (Kitchen & Schultz, 1999:21). These changes underline the increase in competition and the necessity for organizations to concentrate on maximum efficiency in all their operations (Gonring, :2). Based on the internal and external trends, the collective trend to new ways of communicating in business is integrity. One of the most important changes in society in recent years is the increasing demand for integrity in the business world. In an era of customer and other stakeholder distrust, increasing the perception of a brand's integrity is very important (Paine, 1994:107). Integration produces integrity because an organization that is seen as a "whole" rather than as a collection of autonomous pieces and parts is perceived as being more sound and trustworthy, a prerequisite for sustaining relationships. Integrity also has a nuance that connects with values and moral principles, characteristics for any brand that is concerned with social responsibility. The concept of integration in marketing communication and integration in the entire organization is in tune with these trends. Ten years ago, the business world was not quite ready to embrace the principles of integrated marketing communication, but as the marketplace developed over the past decade, integrated marketing communication grew in stature (Gonring, ). In a business environment where all these trends affect the operations of the 52

75 marketing communicator, following the integrated marketing communication principles of knowing the customer, building the brand and measuring effectiveness can put organizations ahead of the competitors. For organizations that currently embrace integrated marketing communication, these trends translate into opportunities. The highly competitive marketplace has made relationship building paramount in the operations of the organization. It is with relationship building that integrated marketing communication can strategically place the organization in this changing marketplace. Zinkhan and Watson (1996: ) have claimed that by practising integrated marketing communication, organizations can best respond to these marketplace trends. According to the authors, integrated marketing communication can be seen as the best way to take advantage of the marketplace trends to communicate more directly with individual customers. Schultz (1996c:4) sees integrated marketing communication as inevitable, because of the marketplace trends, and states that whether organizations embrace integrated marketing communication or not, customers already integrate messages. To be able to achieve total integratedness, in the environment sketched above, the organization needs to evolve through various levels of integrated marketing communication. These levels will be discussed in the following section. 2.7 MULTIPLE STAGES OF INTEGRATED MARKETING COMMUNICATION Organizations facing the changing markets and societal expectations (as discussed in 2.6) have to re-examine their organizational structure and processes. Organizations undertake some form of reengineering, restructuring, transformation or realignment to equip the organization better to respond to these changes (Smith, 1993:17). 53

76 The following approach to organizational integration takes an evolutionary process. The process assumes that organizations can integrate their marketing communication activities over time. The process also assumes that the managers will gain experience at each stage, permitting them to increase the level of performance. Integrated marketing communication according to the stages of integrated marketing communication begins at an awareness level and may advance through several stages to a general integration of new ways of conducting business. Duncan and Caywood (1996:21-33) firstly suggested a model with seven stages to indicate the various stages an organiiation has to go through in order to be fully integrated. Sirgy (1998:6-7) agrees with Duncan and Caywood (1996:21-33) that there are seven stages for an organization to reach integratedness, which include: Awareness Image integration Functional integration Coordinated integration Consumer-based integration Stakeholder-based integration Relationship management integration Caywood (1998:xv-xxiv) uses a similar model for the organization to move towards total integration. The author suggests only six stages of integration. The first three stages of Caywood (1998:xv-xxiv) correlate with the first three stages suggested by Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7). The last three stages suggested by Caywood (1998:xv-)ociv) have the same underpinnings as the stages described by Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7). However, Caywood (1998:xv-xxiv) uses different terms to name these stages and combines the stages suggested by Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7) to form fewer stages. For example, Caywood (1998:xv-xxiv) combines the fourth (coordinated integration) and fifth (consumer-based integration) stages of Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7) to form his fourth stage of consumer-based integration. 54

77 Furthermore, Caywood (1998:xv-xxiv) renames the relationship management integration stage (stage seven) of Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7) to the Utopian stage. It is however important to note that Caywood's (1998:xv-xxiv) interpretation of the stages of integrated marketing communication has the same underpinnings as the stages suggested by Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7). In the present study, the stages of integrated marketing communication will be described according to Duncan and Caywood (1996:21-33) and Sirgy (1998:6-7), as their interpretation of the different stages has an in-depth discussion of the different stages, whereas Caywood (1998:xv-xxiv) refers to them in more general terms. The seven stages - as a brief contextualization - begin with the recognition that the environment for an organization has changed enough to demand a new approach to the market and to various stakeholders. Each stage contains the elements of the previous stage and then adds or reinterprets some dimension. The stages recognize that new management systems and processes take time to develop; must be matched to the nature of the resources of the organization; and are themselves adaptive and changing. At each stage of the model, the communication strengths and weaknesses of each medium are weighed and balanced to create the best mix. A fully integrated strategy will permit each form of communication to contribute to the success of the corporate mission Stage one of integration awareness The first stage of integration is awareness. Awareness of the changing business: social, technological, political and cultural environments creates the demand for new business systems to respond to the market. The trends discussed in 2.6 have contributed to management's recognition that these changes would force marketing managers to adapt to the new marketplace. Awareness assumes that change reinforces the opportunity for developing an integrated management and 55

78 marketing system. Caywood.(1998:xvi) states that while most managers caution their consultants and programme speakers about these marketplace trends: "Don't tell me that the market has changed; tell me what to do about it", organizations can still be ignorant to specific changes in the market or trends they do not recognize. For instance, automotive manufacturers in the United States developed round cup holders for drinks consumed in transit. While this boded well for industries marketing drinks packaged in round containers, and that were suited to travel, it presented challenges for competing products that did not share these characteristics. Dairy products did not meet these demands, and in the United States had been slow to create packaging to suit the needs and lifestyles of the customer, which developed with the advent of automotive cup holders. While the car manufacturers fought for the greatest number of cup holders in their products, the dairy industry had not responded with rounded packaging that suited the cup holders, nor did it perform satisfactorily (to remain cold) when travelling. Having square pegs for round holes, the dairy industry involuntarily competed with juice and other cold drink manufacturers. This first stage of integration, in an organization pursuit to achieve total integratedness, forces the assessment of the changes in the environment and provides the motivation for a more integrated approach. For example, the increasing number of media alternatives from compact disc, audio tape, Internet, interactive point of purchase coupons, and still traditional print and video must be constantly assessed for possible contribution to the management and communication programmes of the organization (Gronstedt, 2000:8). The basic shift in market power, taste, access and diversity will demand new organizational strategies and tactics to communicate with the customer and to establish new relationships with customers and other stakeholders. 56

79 2.7.2 Stage two of integration image integration The second stage towards a more completely integrated organization is the integration of the image of the organization. According to Duncan and Caywood (1996:21-33), Sirgy (1998:6-7) and Caywood (1998:xv-xxiv), stage two of integration recognizes the value of having a consistent message, look and feel for an organization. Organizations focus in this early stage of integrated marketing communication on the importance of having common colours, graphics and logo treatments throughout the organization's communication materials. Within those organizations that define integrated marketing communication to mean a common look, the approach to planning for integrated marketing communication can be described as follows: Some centralized or corporate group gives guidelines, and the makers of all communication material are asked to develop their materials accordingly. Thorson and Moore (1996:137) refer to this approach as the "one look" approach. Efforts to integrate logically focus initially on the appearance of integration or the lack of integration. For example, IBM has, for many years, placed their focus on the precise representation of the IBM logo. The appearance of the logo in appropriate communication vehicles (brochures, advertising, media stories) was controlled by IBM communications professionals. As the organization expanded its relationships with what IBM calls "IBM partners" or business allies, the use of the logo was closely monitored to control the way in which IBM product resellers and service organizations used the logo (Caywood, 1992:31). The corporate image reflected in the icons of trademarks and corporate symbols can be an important element of consistency in the look of communication. However, the tone of the message and the quality of the message production across the media is also important. Some of the criticism of this stage of integration characterizes it as a relatively superficial level of integration (Duncan & Everett, 1993:33). The logic of this stage of integration provides an opporlunity to build initial stages of collaboration among the specialty areas of advertising, personal selling, sales 57

80 promotion, direct marketing, public relations and sponsorship (Caywood, 1998:xviii) Stage three of integration functional integration Stage three in an organization pursuit to achieve total integratedness, moves the process of integration to a greater degree of involvement among the still traditionally separated areas of communication responsibilities. The process of integration at this stage begins with a strategic analysis of the strengths and weaknesses of each of the functional communication areas, including, but not limited to, public relations, advertising, sales promotion, sponsorship and direct marketing. As an example, public relations permits a product/service or organization to use third-party credibility with careful targeting and placement of newsworthy stories in the media. Advertising allows (with sufficient budget) a message to be repeated. Promotional marketing may capture the customer at the point of purchase better than other communication, whereas direct marketing permits constant testing of various offers to the customer. Strategic exercises such as planning and developing programmes that are a link between the organization's goals and capabilities and changing marketing opportunities - may be developed within a cross-functional team to identify in detail the strengths and weaknesses of each area according to the specific project to be marketed. Drawing from each functional area of communication allows the practitioner to develop tactics to meet the goals of the marketing team. For example, with the introduction of the new Volkswagen Beetle, Volkswagen won early support of key auto trade and business media by inviting them to participate in background sessions on the car during the pre-production stage. The car was introduced using video news releases and interactive satellite feeds that resulted in 800 individual television segments in the United States. Such media coverage provided a powerful third-party endorsement that was then merchandised with clever advertising tag lines such as "Less flower. More power (Wilcox et at 2000:311). 58

81 This integrated stage of functional integration seems according to Caywood (1998:xviii) to be most controversial with the communication professionals who manage the still separated activities of the traditional promotional mix elements. A national study commissioned by the American Association of National Advertising Agencies and the Association of National Advertisers in the United States in 1990 found that one of the significant barriers to integrated marketing and communication were the so-called functional silos. As a result of years of "command and control" management (Duncan & Moriarty, 1997:35), these organizations consist of highly separated departments and divisions, each being assigned a certain function in the overall process. As organizations grow, the problem of integration worsens because departments are further subdivided in order to maintain accountability and control. The "threat" of a more integrated strategy to communication was the pressure to join strategies, programmes and budgets for the overall benefit of the organization and its stakeholders and shareholders (Caywood et al. 1991:5) Stage four of integration coordinated integration At the fourth stage of integrated marketing communication, all the communication functions are equal in their potential to contribute to the marketing effort. Each functional specialty recognizes that it must cooperate in the development of a communication programme or risk not participating at all. Shared budgets, shared performance measures and outcomes rule the process. For example, IBM found their communication agencies following an all-or-nothing approach to the campaign budget until the organization redirected the agencies to integrate their plans and tactics before presenting their ideas to the firm's managers (Caywood, 1992:12). This stage of the marketing effort accentuates personal selling. Personal selling and the sales management process are emphasized in the function as the connection to the customer and marketing becomes more direct. For example, direct mail can be helpful. in cultivating individualised relationships with customers, although it is important to supplement postal mail 59

82 with faster, electronic forms of interaction to enable customers to make more immediate contact with the marketer (Peppers & Rogers, 1999:105). The interpersonal communication aspect of the selling process is included in the integrated plan. This also refers to the idea of relationship marketing that it is important to know what the customer wants out of a relationship with the organization. In business-to-business marketing and consumer marketing, a key marketing objective is to develop a communication strategy that increases the customer's tendency to buy with several carefully directed communication tactics using the best communication tools (Hayes, 1994:34). This refers to the concept of communication by objectives. Communication drives relationships, or as Duncan and Moriarty (1997:9) put it: "..the fuel that drives relationship personal or commercial - is communication". It is also important to note that, according to the relationship marketing theory, with every interaction, the organization must have specific and different objectives. Also evident in this stage may be elements of an emerging database. The database may initially consist of simple and accurate contact information, including names, titles, addresses, addresses as well as phone and fax numbers. As the database is strengthened through marketing-driven contacts, information about past purchases, competitive purchases, capital expenditures and service expenses is added. Also included are the details of what forms of communication the customer responds to. The use of direct response mechanisms in advertising, telemarketing and direct mail are crucial to database building and maintenance Stage five of integration consumer-based integration As each step of the communication integration strategy is mastered and accepted, the elements begin to work together. The original objectives of integration, to manage the marketing communication process more efficiently by wasting fewer resources, becomes a matter of practising greater marketing 60

83 effectiveness. Only the most important customers of the organization are reached with the strongest and most effective media and through the most precise channels of communication. In a more fully developed marketing communication process, the customer and the customers are rediscovered, as marketing is planned from the outside-in, as opposed to the inside-out approach (Lauterborn, 1999:13; Reich, 1998:29). Both customers and prospective customers are included in the formula. The lessons learned from earlier stages of integration document the value of a refined customer and prospect database. Experience with the sales and communication information increased with marketing research permits increasing predictions as to the prospect's readiness to buy. Attitudinal data related to business trends collected through surveys of customers and prospects may add insight to the customer. The customer's contact with the brand and organization are carefully uncovered in this stage of integration. Each contact point, whether the customer or the organization initiates it, is identified. For example, all customer contacts with an airline from the travel agent to the baggage handler and counter service representative, as well as experience with airport signage, airplane cleanliness, on-time flight, safety and so on are considered part of the contact points with the airline. Each point of contact is a message, a form of marketing communication that reinforces the customer's business opinion of the organization (Duncan, 1997). Carefully collected behavioural data recording the customer's and prospect's response to marketing communication can help the marketer plan better. Eventually, the database may reveal the buying stage or readiness to buy of the prospective customer (Schultz, 1995a:5). 61

84 The full implications of what marketing has characterised as a customer orientation can be fulfilled with an integrated strategy that focuses on the communication-stimulated behaviour of the customer. In a system that focuses on the target customer, the components of integrated marketing communication become mere tactics. The traditional promotional mix elements are simply applied in the strategy in an integrated way to anticipate and respond to the customer. Rather than constantly replacing customers - the leaking bucket theory (Peppers & Rogers, 1999:6) that proposes that there are always enough customers to replace defecting ones - attention is given to holding and building the correct customer base in this stage of integration. Issues of customer loyalty are examined as organizations create a marketing plan that builds and maintains relationships with current customers. An organization should therefore focus more on the retention of current customers than on the acquisition of new customers, which is in accordance with the outside-in approach (Duncan, 2001:62). Increased customer satisfaction and subsequent increased purchases are the goals in this stage of integrated marketing communication (Duncan & Caywood, 1996:30) Stage six of integration stakeholder-based integration The evolution of integration suggests that the success of each stage may lead to new dimensions in the next stage. Beyond the customer and customers are numerous publics and stakeholders that have a stake in the outcome of the success or failure of an organization. Integrated marketing communication moves to a more broadly defined integrated communication (as explained in section 2.3), as it expands the communication to other stakeholders, including employees, the community, the govemment, the press, vendors and suppliers, and all individuals or groups who can affect or be affected by the organization. 62

85 On the advanced stages of integration, public relations plays a more dominant role (Caywood, 1998:xxii). Public relations is the management, through communication, of perceptions and strategic relationships between an organization and its internal and external stakeholders (PRISA, 2000). This accentuated role of public relations at advanced levels occurs because public relations is the active management of the relationships that organizations have with stakeholders. While the attention to stakeholders other than customers or customers is practised at many levels of integration, the full benefit of a mature integrated process can be applied at this stage of integration (Stepanek, 1999:30). The concept of stakeholder management is an advanced approach in management and public relations to understanding how organizations relate to a rich mix of individuals and groups. Those organizations and individuals can be approached with the same level of targeted intensity as customers were targeted by using database systems previously built for marketing. For example, the ability to reach investors quickly under conditions of a takeover or bid for an organization can be more easily accomplished with data from data organizations, such as Georgeson in the United States. The organization provides subscription or list services of shareholders with or without the street name designation for ease of appealing directly to the shareholders (Burnett & Moriarty, 1998:196). Integrated marketing communication moves to a more broadly defined integrated approach, as it expands the communication of the organization to other stakeholders, including employees, the community, the government, the media, and all other related target audiences of the organization. As the efficiency and effectiveness of integration are tested and proved, a third element emerges in a more mature integrated programme. Although it can be argued that the third element should be embedded from the beginning, the issue of equity is more likely to be considered in a more established and confident business organization (Moriarty, 1997:7). Equity suggests the strongest elements of social responsibility that drive an organization to broaden its communication (Duncan, 1997). 63

86 Integrated communication begins with careful stakeholder identification, with ' hundreds of possible groups and individuals being labelled as important to the future success of the organization. The process demands that managers or staff should be "assigned" to each stakeholder group to monitor and track their actions relevant to the firm (Reich, 1998:27) Stage seven of integration relationship management integration The development of a fully integrated communication strategy to reach customers and stakeholders brings the communication professional into direct contact with the full range of management functions in businesses and other complex organizations. Integration implies (and a managerial approach to communication demands) that communication be regarded as a strong element in the total management process. The process has become a full range of relationship management, both internally and externally (Duncan & Moriarty, 1997:11; Schultz, 2000:14). In general, the fully integrative model should place communication professionals at management level and redefine their roles from staff to management. There is therefore a definite shift from integration at a "technical" level, to integration at a "strategic" level. This is also in line with the definitions of integrated marketing communication presented by Keegan et al. (1992) and Gronstedt (2000), which stresses the importance of strategic thinking in integrated marketing communication. Each stage of integration contributes to the performance of communication in the management process. As integration is proven both internally and externally to be a logical framework for managing the communication and relationships of an organization, it will prove to be an integral part of the management effort. 64

87 2.8 CONCLUSION In the marketplace of the 21 st century, the driving force is not organizations with products to sell, but customers controlling what, where, when, why and how they buy products. This refers to a customer-focused organization, which is an underlying principle of the integrated marketing communication approach and also the basis of this chapter. Integrated marketing communication begins with the customer and interactions with the customer in other words, the outside-in approach. Another focal point of the chapter is the explanation of the shift from the traditional promotional mix to integrated marketing communication to illustrate the relevance of this new approach in such a demanding marketplace. The transition then from a less integrated approach to total integration requires the organization to progress through defined levels of integration. At each level, an organization essentially needs to redefine its means of conducting business in the marketplace, and this necessitates virtually a paradigm shift at each level. Therefore, it cannot simply be assumed to progress organically, but needs to be considered carefully. The concept of integrated marketing communication in brief means unity of effort. "Unity of effort" does not however refer only to consistent messages sent out by an organization to all the stakeholders, but includes unity of purpose for the organization, unity of organizational processes, unity of an organizational goal, and unity of action within the organization. Furthermore, integration refers ultimately to everything the organization does and does not do. Thus, integration is an organizational pursuit, and not a quick-fix solution to marketing communication. When an organization becomes more integrated, its interactions with stakeholders becomes more consistent, its reputation more distinct, and its stakeholders more trustful of it. In essence, integration increases the integrity of the organization. Integration produces integrity because an organization that is 65

88 seen as a whole rather than as a collection of disparate, autonomous functions is perceived as being more sound and trustworthy (thus a unified effort), and these are important prerequisites for sustainable relationships with customers and stakeholders. Integrated marketing communication is a customer-centric, data-driven method of communicating with customers and other stakeholders, and therefore organizations need direction in applying this concept into the organizational functioning. Chapter 3 contextualizes the foundations of integrated marketing communication as discussed in Chapter 2 by applying the concept of integrated marketing communication within the organizational context in order to ensure the full integration of communication. 66

89 CHAPTER 3 THE THREE-DIMENSIONAL INTEGRATED MARKETING COMMUNICATION APPROACH 3.1 INTRODUCTION Another approach for an organization to move through the multiple stages of integration and to assure that full integration of communication takes place is the three-dimensional integrated marketing communication approach as suggested by Gronstedt (2000). Although this model entails similar aspects of integrated marketing communication as discussed in the different stages of integrated marketing communication in Chapter 2, it is necessary to use this model as a theoretical underpinning for the study, because the model provides guidelines to move towards, what Caywood (1998:xvii) refers to as the "utopian stage" of integrated marketing communication. The value of this three-dimensional approach of integrated marketing communication for the purpose of this study is that this approach contextualizes the concept of integrated marketing communication by applying it within an organization. This is significant, as the implementation of the concept of integrated marketing communication is generally more controversial than the acceptance of the concept itself. The three-dimensional approach shows (unlike most integrated marketing communication models) how integrated marketing communication can be implemented effectively and efficiently applied practically within an organization. The three-dimensional integrated marketing communication model is based on a nine-year study conducted by Gronstedt, on the role of communication at fourteen leading organizations in America and Europe to research the concept of effective integrated marketing communication. The model Gronstedt (2000) proposes from the research moves the organization from a "Production Centur?' (inside-out thinking) organization to a "Customer Century" (outside-in thinking) 67

90 organization. The model proposes that the organization integrate communication externally with key customers and stakeholders, vertically between senior management and frontline workers, and horizontally across departments, business units and geographical boundaries The three-dimensional model for integrated marketing communication as proposed by Gronstedt (2000) is not an isolated attempt, but a continuous effort to integrated marketing communication. It determines whether an organization can attract and keep workers, reliable investors, and most importantly, profitable customers. The expression "3-D" is used because organizations need to learn how to communicate in all three dimensions - externally, vertically and horizontally - simultaneously for effective integrated marketing communication. Excelling in one dimension but neglecting the other will not suffice for fully integrated marketing communication according to this approach. An organization can be given the "fully integrated" epithet only if the organization has the ability to integrate all three of these dimensions successfully. These three dimensions of applying integrated marketing communication within an organization will be discussed in this chapter. To put the approach as a whole into context, the focus will firstly be on a brief overview as well as contextualisation of the approach. Thereafter, the three dimensions of the approach will be discussed in detail. 3.2 OVERVIEW OF THE THREE-DIMENSIONAL INTEGRATED MARKETING COMMUNICATION APPROACH The proposed three-dimensional integrated marketing communication approach depicts the organization as a three-dimensional triangle (Figure 3.1), where the triangle in front is divided into three parts, with senior management at the top, middle management in the middle, and front-line employees at the bottom. "Front-line" is broadly defined as anyone below middle management adding value directly or indirectly to the customer. The triangle behind this represents stakeholders, such as the local community, the media, investors and government 68

91 regulators. The last triangle represents the customers. The point of illustrating these groups as overlaying triangles is to show that Customer Century (outsidein) organizations need to involve people at all levels in the organization and from every department in ongoing dialogues with customers and other stakeholders of the organization. 1 st dimension: External integration Customers Stakeholders Middle management Front-line employees The organization 2ss dimension: Vertical integration % / # Top mans ment So / \ Middle managem Customers Stakeholders The organization Front-line empl yees 3rd dimension: c -. Horizontal integration ic--- * Top an ement L Customers Middle management.. \ v Stakeholders Front-line eilifloyir The organization Figure 3.1 The three-dimensional approach of integrated marketing communication. Source: Gronstedt (2000:8) 69

92 3.3 CONTEXTUALIZATION OF THE THREE-DIMENSIONAL APPROACH The first dimension of integrated external communication is the process of involving everyone in the organization in both internal and external communication with customers and stakeholders (integrated external communication). To accomplish this, senior management needs to train, empower and support frontline employees through a process of integrated vertical communication (the second dimension). The second dimension entails opening up direct, frequent and two-way communication among senior management and employees. It keeps management in touch with the front-line workers and through them, the customers, and employees are in line with the strategic context of the employees' work. However, as long as communication is restricted to the vertical "silos of function", business units and countries, it will not appear integrated with the customers of an organization. True integration comes from the cross-business, cross-function and cross-region alignment of integrated horizontal communication. This third dimension of integrated communication integrates communication among people working in different business units, departments and countries. The three dimensions illustrate that integrated marketing communication needs to be practiced throughout organizations (external integration), job levels (vertical integration) functions, business units and regions (horizontal integration). Integrated communication is not any one of these dimensions alone. All three dimensions need to be in place to obtain the full benefits of integrated communication in the Customer Century. Each dimension will now be discussed in detail. 70

93 3.3.1 First dimension: integrating external communication Integrated external communication is based on building close customer and stakeholder relationships at all levels of the organization. This first dimension starts with identifying the most important customers and stakeholders of the organization based on their current profit contributions and potential lifetime customer value to the organization. The conflicting voices of these customers are then integrated into the organization. Satisfaction surveys, retention rates, complaints, enquiries, field operations, market research and other sources of customer information are tracked, and the information is widely shared within the fully integrated marketing communication organization. Employees of all job functions and levels experience the products or services from the customer's perspective, talk to the customers in their own environment, learn about their needs, ask about their ideas and listen to their complaints. According to Yastrow ( :2), fully integrated organizations can build relationships and anticipate the future needs of their customers, only by listening in a collective sense. This same process is applied to nurture relationships with key stakeholders (Garavan, 1995:11). Each aspect of the first dimension of integrated marketing communication as suggested by Gronstedt (2000) will now be discussed: The value of customers According to Duncan and Moriarty (1997:43), it costs between five to twenty times more to recruit a new customer than to keep an existing one for an organization. Further research shows that customers become more profitable over time. It shows that existing customers cost less and provide more revenues the longer they are active, because the cost of acquiring the customer fades, customers become less price sensitive, they require less attention from sales and customer service personnel, they buy more and they refer other customers to the organization (Reichheld, 1996:21). 71

94 From a customer's point of view, a long-term relationship offers advantages as well. Most customers enjoy the convenience and peace of mind of buying the same brands from the same store. Likewise, business buyers are also increasingly turning to small numbers of "preferred suppliers". Minimal search cost, the security of the customer knowing what he or she gets and volume discounts can be benefits of a relationship experienced by customers and business buyers alike. Long-term customer relationships are essential for business success. Research supports the idea of a relationship focus. For instance, Ford estimates that each percentage point gained in car-owner loyalty is worth $100 million in profit every year (Anon., 1994a:24). The focus on existing relationships should however not be at the exclusion of recruiting new customers. In other words, there needs to be a balance between relationships and acquisitions for an organization. There is still a role for recruiting new customers, but prospects should be selected carefully before they are pursued, based on their potential for long-term relationships. New methods such as data-warehousing and data-mining technology are used to target stakeholders. A data warehouse is an enterprisewide "storehouse" of databases from different units of the organization and external sources. Data mining can discover less obvious patterns and connections among thousands of variables in a database, and identify common characteristics of the customers with the best potential based on numerous factors, including buying behaviour and demographics. The combination of data mining and data warehousing can increase the ability to identify the best customers and prospects, to target messages and to grow relationships (Schultz, 1996b:17). The problem with "Production Century' marketing managers as apposed to "Customer Century" marketing managers is that they consider the communication process to be completed when a prospect makes the purchase. 72

95 At that point, according to Gronstedt (2000:54), the customer returns to being another anonymous prospective client and the marketing process starts all over again. Instead, Customer Century marketing managers need to focus on moving customers along the relationship path, from "prospects" to "evangelists" (Duncan & Moriarty, 1997:65) as indicated in Figure 3.2. Evangelist Loyal Occasional First-time buyer Prospect Figure :55) The relationship path of customers. Source: Gronstedt, Communication needs to be integrated carefully into each of these segments with the purpose of moving customers to become loyalists and evangelists. Prospects need to get incentives to make the first purchase; occasional buyers need to be enticed to become loyalists; and loyal buyers need to be provided with T-shirts, buttons, talking points or other incentives to make the customer an evangelist. Research in the computer software industry shows that customer evangelists recruit, on average, five new customers and provide support for an additional nine existing customers (Harrington, 1999:124). Relationships should not be forced upon the customer. Trying too hard to. develop unwanted relationships with existing customers can put customers off. The existence and depth of relationships depend greatly on the intensity of 73

96 customer involvement with the product (Gronstedt, 2000:54). Suppliers of lowinvolvement products like potato starch flour or toilet bowl disinfectant should, for example, focus more on their relationships with retailers and professional users than on customers, seeing that customers are per se not the organization's primary stakeholder. Therefore, relationships must be focused on the most relevant stakeholders of the organization Targeting customers This three-dimensional approach to integrated marketing communication reinforces the idea that the organization has to focus on its most profitable customers. By combining the power of database technology, Internet connectivity and mass customisation capabilities, organizations can identify the customers with the greatest profit potential and arrange communication and service to suit the stakeholders' individual needs. Fully integrated organizations, such as the FedEx company [globally] (Grant, 1997: ), are aggressively combining customer databases from finance, accounting, marketing communication, sales and customer service, from business units and subsidiaries, and from channel members and syndicated sources to get a complete picture of the cost and income flows from individual, end-user customers (Duncan & Moriarty, 1997:14). Saturn, the car manufacturer in the US, has database information on every one of its two million vehicle owners (Henry, 1998:6). Hewlett-Packard has a central customer database with between 6,5 and 8 million names, complete with the recentness and frequency of purchase for and individual customer and his or her contact history with the organization (Anon., 1999b:119; Yarbrough, 1996:70). Not all the customers of an organization are profitable. Unprofitable customers, need to be either ignored or turned into profitable customers by rising prices and/or reducing service levels. A surprisingly small number of customers account 74

97 for almost the entire profit of the organization. This "Pareto effect", first expounded by the Italian economist Wilfred Pareto, concluded that, the 80/20 rule, which stipulates that about 80 per cent of any organization's profit is attributed by 20 per cent of its customer base is true for most organizations. (Gronstedt, 2000:57). By identifying the most profitable customers or customer segments, the level of investment in each of them can be determined and the returns can be measured. This is a new approach to resource allocation, where organizations "invest in customers" rather than spend money on marketing. Analysing purchase history is a good point of departure to move towards "investment in customers". The best predictor of future buying behaviour is the past buying behaviour of the customer. "Lifetime customer value" determines how much the marketer of an organization can afford to spend on a relationship with a particular customer. It is an assessment of how much revenue a marketer can expect from a particular customer from the present until the relationship terminates, i.e. the net present value of future profits of a customer (Wood, 1997:11; Schultz, 1999b:8). Estimated retention rates become an important variable in this equation, because customers who remain loyal for a longer period are more valuable. Another critical variable in any analysis of customers' future profit potential is their "share of wallet" how much a company has captured of a customer's budget for a category of purchases (Schultz, 1993d:12). This customer information is frequently unavailable to the marketing staff to use for communication and one-to-one relationship building. It is usually not readily available to the front-line workers who could use the information to improve communication with customers and enter information from customers into the database of the organization. It is important for an organization to share the customer database broadly within the organization and organize the organization's entire manufacturing, service, delivery and communication 75

98 process around individual customer needs (Duncan & Moriarty, 1997:111; Schultz, 1996c:15) Integrating the "voice of the customer By identifying the most important customer, the organization will be able to listen to the customer in a collective sense. The "voice of the customer needs to reach senior executives as well as middle managers and front-line workers (Gronstedt, 2000:58). According to Marcia (1999:30-31), the British computer manufacturer D2D, has an effective customer satisfaction process. It asks its customers to fill in a scorecard every month to monitor and look for ways to improve relationships. According to Dayvon Goodsell, D2D's quality manager (Marcia, 1999:30), "the principle behind the scorecard, is you take a number of different facets of the relationship: Product quality and timeliness are obvious. On top of that, we have flexibility, willingness to change, responsiveness, communication, and technical competence. We try to get the scorecard every month, at least every quarter. It gives us a target for improving it. The score is communicated internally to the team that produced that client's product". Customers compare what they get with what they expect from an organization. If expectations are set too high by the organization, customers will inevitably be disappointed. In the Production Century model, marketing and sales are responsible for the main focus of the marketing mix by persuading people to buy at any price. The role of communication is to communicate value in hyperbolic ways; in other words communicating the value in exaggeration especially for effect. In the Customer Century model, the role of communication is to create value by managing the expectations of customers and learning about the customer needs (Gronstedt, 2000:61). 76

99 Managing expectations through integrated external communication is the first step in exceeding. them. Organizations that merely satisfy customers are no longer effective. For example, Xerox learned a few years ago that "completely satisfied" customers are six times more likely to repurchase Xerox products than its "very satisfied" customers, who are only marginally more loyal than the "satisfied" customers (Schultz, 1996a:13). According to Jones and Earl (1995:88), anything less than complete satisfaction of the customer is not going to sustain that specific customers' loyalty. In other words, customers need to be satisfied "Customer terrorists" Fully integrated organizations take special care to listen to the voice of dissatisfied customers. It is particularly important for an organization to act promptly on customer complaints, or the customer will turn into what Gronstedt (2000:62) refers to as a "customer terrorist". Customer complaints need to be addressed swiftly and the information shared widely, for corrective actions to avoid similar situations in the future. This systematic use of customer information is the way organizations need to learn from experiences and continually need to improve on these past experiences (Schultz et al., 1994:77) Integrating global communication Integrated global communication is the logical extension of integrated marketing communication. Customer preferences are converging as people from all over the world are wearing the same brands of sports shoes, drinking the same cold drinks and using the same computers. Burgeoning global media organizations like Sky, Star, AOL Time Warner and Disney are competing to offer global television programming. 77

100 At the same time, like-minded communities from all over the world are meeting on the Internet to chat, browse and trade. Certain European countries have moved away from their respective currencies, adopting the single Euro currency. Trade barriers are also being destroyed. As customer markets are becoming more global, customer goods organizations are forcing business-to-business organizations, like Ericsson, to restructure so as to serve global clients effectively. Integrated global communication is imperative in the Customer Century, so much so that the term according to Kitchen and Schultz (2000:15) is rapidly becoming an oxymoron because there will be "no other kind of business in the future" Stakeholder relationships External integration goes beyond customers to every group or individual with a stake in the organization. Success in the Customer Century requires careful attention to all stakeholders. All stakeholders ask one or both of the following questions: 'What can you do for me?" or "What can you do to me?" The stakes of the stakeholders of an organization are growing for the organization in the environment of fierce competition, sophisticated customers, demanding employees, intrusive governments, litigious publics and active shareholders, scrutinizing media and growing registered special interest groups (Bernstein, :3). The successful management of relationships with these groups lead to a cycle of reinforcement where success leads to success. Organizations that can attract good employees will attract equally good investors, customers and partners. The converse is equally true the mismanagement of stakeholder relationships can put organizations in a difficult position. The news media have emerged as particularly critical stakeholders that can greatly influence an organization (Schultz, 2000:14; Garavan, 1995:11). Organizations find that the same logic of integrated marketing communication applies to noncustomer stakeholders (Reich, 1998:27; Moriarty, 1997:7-8). 78

101 Stakeholders are not only becoming more important for the organization, they are also becoming more intertwined. This web of stakeholder relationships keeps getting more and more entangled as individuals and organizations have multiple stakes in an organization. The fact that stakeholder roles are so interrelated and overlapping makes it even more important for an organization to integrate communication. According to Mike O'Neil, the former director of communication and public affairs at Eastman Chemical in the United States, "In this business, you cannot just have one area that you worry about because everything spills over. If you communicate to employees, then almost immediately it is in the community. If it is in the community, it is in the media. So there are no sharp lines drawn" (Lucas, 1995:24). Integrated stakeholder communication is not about revealing the exact same information to everyone, but about being consistent. Different stakeholders have different communication needs: Customers want to learn about the value of service offerings, investors want to know about the organization's overall performance and employees want to find out about personal growth opportunities. Fully integrated organizations address each stakeholder's needs, without appearing disintegrated (Gronstedt, 2000:74). This can be compared to the way an individual communicates differently with his or her spouse, friends and boss, while still maintaining a single personality. In much the same way, organizations need to have a clear "personality", with easily recognisable traits that can be conveyed in all communications. By integrating communication with different stakeholders with a clear single personality, organizations can adapt to each stakeholders' needs while still maintaining a sense of "self' (Siracuse, 1999:11). The road to integrated stakeholder communication takes the following course: identifying the "critical few" stakeholders, cultivating "symmetrical relationships" with them, and involving everyone in the entire organization in integrating communication with them, as explained below (Gronstedt, 2000:75). 79

102 Identifying the "critical few" All stakeholders are not equal. As with customers, most important stakeholders are small in numbers but big in effect. One approach of identifying the most critical stakeholders developed by scholars Mitchell, Agle and Wood (1997:855) is to rank them in terms of their power, legitimacy and urgency. For example, a major shareholder has the power and ability to influence the organization. A television news anchor has legitimacy, as someone with respect based on socially accepted norms. A recently dismissed worker has urgency, with a timesensitive stake that is critically important to the stakeholder. Organizations should periodically review stakeholders in terms of their power; legitimacy and urgency as a basis for prioritising them and developing communication plans according to Freeman (1993:xi). Cultivating "symmetrical relationships" Once the key stakeholders of an organization have been identified, fully integrated organizations learn about the needs of stakeholders and accommodate them. They best way to learn about the stakeholders of an organization is to have regular symmetrical surveys in which the needs of the stakeholders are carefully considered in accordance with the organizational goals. The Customer Century organization therefore makes use of symmetrical relationships with its relevant key stakeholders (Gronstedt, 2000:77; Grunig & Grunig, 1991:270). Enlisting the full support of "part-time" communicators Fully integrated organizations enlist the support of managers and employees who interact with stakeholders on a daily basis (Gronstedt, 2000:77). All employees are "part-time communicators" who talk, for example, to friends and neighbours 80

103 who might on shares in the organization; who interact with people in the local community whose environment is being affected by the organization's presence; and who vote for legislators who can take actions that will affect the organization. Research studies indicate that people inside an organization are the primary source of information for external stakeholders (McCallister, 1981:21). Keeping employees informed is a good start to get the employees' full support. The next level is to utilise managers and technical specialists in the organization as corporate spokespeople. Saturn and Eastman Chemical Company go beyond using their employees inside the organization as "part-time" Communicators. Saturn enlists its independent dealers as spokespeople to the local media. Using retailers as conduits to local media is an effective way to nurture these important relationships and secure media publicity that benefits both the retailer and the manufacturer (Henry, 1998:7). Eastman Chemical Company is another example of an organization using its "extended enterprise" as communicators to "fight its causes". It mobilizes a grass-roots organization of retirees, spouses and anyone else who will volunteer to influence important policy issues. An "issue management process" helps the grass-roots organizations focus on key issues issues that are important to support the organization's overall goals. The goals are identified, policy statements are made, measures of Ea stman's success with them are determined, and an action plan is laid out (Gronstedt, 2000:78). Building stakeholder relationships is not much different from building customer relationships. The same principles of trust, honesty, respect, consistency and two-way communication apply. Identify the critical few, gain insight into their needs and involve all the organization's employees in exceeding their expectations at every point of contact. The survival of organizations in the Customer Century is dependent not so much on their ability to compete as on their ability to collaborate with their environment (Gronstedt, 2000:80). 81

104 3.3.2 Second dimension: integrating vertical communication The second dimension of the three-dimensional approach of Gronstedt (2000) is the integration of vertical communication in the organization. This second dimension keeps the top management of an organization in touch with the realities of the business and employees in line with the strategic context of the work. As will be discussed in and , a fully integrated organization's management is strict in its 'top-down' communication of a clearly defined mission in words and actions to align the organization. Messages are cascaded down the organization, and employees are reached directly via the Internet. Employees and middle managers communicate up the organization through processes of 'bottom-up' communication, transferring opinions, feelings and ideas up the levels of the organization. To support this infrastructure, a climate of open communication exists in these organizations. Top-down communication starts with the communication of a vision of how the organization adds value to its customers to provide a focus and a sense of purpose to the entire organization. The vision needs to be anchored in the values and philosophies for which an organization stands, and the mission or purpose of the organization. These values need into be translated to clear brand promises that are communicated to customers and stakeholders (Gronstedt, 2000:89). Examples of brand promises are: "A different kind of company, a different kind of car" (Saturn); "The world on time" (FedEx) and "The Document Company" (Xerox). These statements are not only communicated to customers, but are prominently featured in the buildings of these organizations. They are on the covers of annual reports and employee magazines, for example. By establishing a limited number of corporate messages, communication professionals can ensure consistency in all the communication of the organization. The key is to find messages that can transcend cultural and regional differences, and to adapt any sub-messages that apply. 82

105 A customer-centric vision The challenge for the organization is to develop a vision that is specific enough to provide real guidance, yet is adaptable enough in the rapidly changing environment. The vision of the organization needs to be based not only on the organization's core competency the skills and technologies that are central to its strength but also on opportunities in the marketplace. It needs to be a broadly phrased direction of the organization rather than a detailed plan, expressed in terms of customer benefits rather than product features. Once a customer-centric big picture is developed, it needs to be condensed to concise, pithy statements that can be communicated effectively. Without a clearly defined and broadly communicated vision and strategy, employees have no basis for integrating communication about the organization externally (Gronstedt, 2000:92) Management and the customer-centric vision The CEO and the senior management team play a critical role in communicating the vision of the organization. Communicating the vision of the organization with words alone will lead management down the path of management by "slogans and exhortations" (Jones, 1983:18). It is management's actions that determine if the vision becomes a force of corporate identity or a source of employee cynicism in an organization. Leadership in the Customer Century is about story telling, about dramatising events and creating corporate myths and legends that embody the purpose of the organization (Gronstedt, 2000:94). Where leaders of an organization set a personal example, employees support it; align themselves around their visions, and work to make them a reality. Xerox has, for example, a bonus system for 83

106 both corporate and individual performance. If an individual manager's operations perform at 120 per cent of the plan, but the organization as a whole is at 80 per cent of the plan, the individual gets only 96 per cent of his or her bonus (1.2 x 0.8). But if both the individual and the organization perform at 120 per cent of the plan, the bonus is 144 per cent (Allaire, 1998:119). Correlating the reward with effective communication sends a strong message about the organization's priorities (Gronstedt, 2000:95) Cascading objectives Guided by the vision, leading managers focus their organization's efforts around a small number of objectives that will move their organizations closer to the vision. Communicating these objectives effectively is key to achieving them. When objectives have been drafted, each senior manager needs to sit down with the managers reporting to them to discuss how they could contribute to the corporate objectives. When second-level management has decided on objectives for the year in support of the corporate objectives, it initiates similar discussions with the third-level management. In this way, the corporate objectives are "cascaded" down the management ranks of the organization and translated into specific actions along the way (Linton & Morley, 1995:64). This must not be confused with "management by objectives" (MBO). The idea with MBO is to formulate a strategy that will accomplish an organization's specific objectives. According to Simmons (1990:40), the use of MBO in planning ensures the "... production of relevant messages and establishes criteria against which campaign results can be measured". The problem with management by objectives is that top management moves away, draws up a "wish list" of thirty objectives and assigns different and often conflicting objectives to different departments (Wilcox et al., 2000:142). Like a kamikaze pilot with a quota of five ships, the organization has more goals than it can realistically accomplish and no plans for achieving them. 84

107 In contrast, the Customer Century organization aligns the entire organization around a small number of shared objectives, and develops processes to achieve them. The other difference with this process is that it starts with "bottom-up" communication from front-line employees up through the levels of the organization. The vision and objectives of these organizations are not just the creation of senior managers. They originate from dialogue with the workers who are closest to the customers (Schultz, 1994b:14-16; Wilcox et al., 2000: ). Finally, the difference with traditional approaches is that the goals of the organization are communicated widely and openly. The same cascading process is practised for ongoing communication as well. Fully integrated organizations use the same cascading approach for employee training, which is another important aspect of vertical communication. Training is a key ingredient in successful vertical communication by giving everyone in the organization shared frames of reference, shared language and a shared vision of the organization's future (Gronstedt, 2000:98). What makes "cascading" such a powerful approach to planning and ongoing communication is that it gets every manager involved twice, firstly as a participant and secondly as a teacher. When people see their managers' involvement, they know they are serious. An additional benefit of this communication method is that corporate planning and communication can be tailored to each part of an organization and delivered in a small interactive setting in which employees can ask questions about how issues will affect them. Employee surveys show that employees prefer to get organizational information from their immediate managers or supervisors. A Newsweek poll showed that most workers' biggest complaint was poor communication between themselves and managers. Sixty-four per cent believed that this problem impeded their work (Anon., 1997:9). Training and supporting line managers and supervisors to be communicators ensure that communication is based on the communication 85

108 needs of employees rather than simply on senior managers' self-interested needs to convey or withhold messages that may only benefit them. The risk with the cascade is that information stops at middle management level, with the content of the information then being misinterpreted. Analogous to the "broken telephone game", there is always the risk of distortion when information is passed along multiple channels. To avoid this problem, the cascade can be supported with a videotaped message from the CEO to start the meetings; facilitators who help guide the meetings, and presentation slides and talking points to be used by the leader of the group. But more importantly, managers need to be provided with the information, time, resources and training to communicate effectively Upward communication A more difficult challenge with vertical communication is to ensure that faultless information is relayed up the organization, giving senior managers direct access to the front-line workers who know the customers and the operations firsthand. The responsibility for integrating upward communication is solely that of top management (Gronstedt, 2000:106). The CEO, senior management team and board of directors need to instigate ongoing processes of both face-to-face dialogue and online communication with employees. The test of effective bottom-up communication is how long it takes for bad news to reach senior management (Gronstedt, 2000:106). It used to take months in the Production Century. The best fully integrated organizations in the Customer Century do this in minutes. Employee satisfaction surveys are an important upward vehicle. They allow upper management to act upon the ideas and suggestions of the people who are closest to the customers. They are also a leading indicator of changing customer 86

109 satisfaction. Research by Xerox shows that when employee satisfaction increases, customer satisfaction increases with it (Carey, 1995:59). Facilitating bottom-up communication goes much deeper than the mechanical processes of meetings and surveys. It requires an open atmosphere, free of fear of punishment from speaking up. Contrary to the trend that lifelong job security is a thing of the past (Morgan, 1993:62), it is a reoccurring perquisite among fully integrated organizations that have found it to be the fastest route to dismissing any fears of speaking out. These organizations' employees can communicate more openly and freely with the assurance that their opinions are not going to put their jobs at risk. Without trust and open communication between employees, problems and mistakes are not discussed and addressed. No example is more useful of the power of open communication than the fall of the Soviet Union. Mikhail Gorbachev coined a phrase relevant in this context: "You cannot have Perestroika [reconstructions] without glasnost [openness or transparency]" (Montgomery, 1998:4). The former Soviet leader brought about the fall of the communist regime by allowing freedom of speech. Once people were free to express their opinions and voice criticism, there was no turning back for the reform movement. Glasnost is as important for organizations as it is for nations. Few organizations allow open discussions about problems. People report only the good news upwards and send management propaganda downwards. Most of what pass as employee communication publications are the equivalents of what was the Soviet newspaper Pravda, with the focus on corporate "puffery" and management "happy talk", instead of information designed to build a broad base understanding of, and a debate around, the organization's goals. This Soviet-style approach to communication is still prevalent in some organizations, but change is under way. Corporate censorship is no longer an option. Having experienced the fall of most dictatorships around 87

110 the world, organizations are also experiencing the fall of autocratic organizations (Gronstedt, 2000:111). Lines of communication between the periphery of an organization where the "action" is and the centre need to be open, truthful and direct. The real benefit for organizations comes from communication with the same speed and liveliness across departments, disciplines and regions of the organizations, which is the focus of the next dimension of integrated marketing communication. It explains how fully integrated organizations influence the skills, expertise, relationships and information of the entire enterprise through the integration of horizontal communication Third dimension: integrating horizontal communication The third dimension of the three-dimensional approach of integrated marketing communication of Gronstedt (2000) integrates communication among people working in different business units, departments and countries of an organization. Teamwork is an important concept in the third dimension of integrated marketing communication. The "ground rules" for teamwork, the "problem-solving process", the "quality improvement process" and the "decision-making tools" need to be communicated frequently to all the employees of an organization. For example, at Xerox, employees can, whenever they are in doubt, look around the walls of any Xerox conference room to see the framed posters featuring these "ground rules" for teamwork (Schultz, 1996a:15). Structured problem-solving methods provide teams in an organization with a road-map to follow, restraining them from moving directly from the problem to implementing solutions. It provides a common language and a common approach to dealing with issues in the organization. 88

111 The essence behind Xerox's teamwork success is to define every team member's role. Members of Xerox's teams are assigned the roles of facilitator, responsible for aiding discussions; team leader, directing the project; scribe who takes notes; timekeeper, responsible for seeing that an appropriate amount of time is spent on each agenda item, and starting and ending the meeting on time; and behavioural checker, whose job it is to make sure that no one dominates the meeting, everyone's opinions are being heard and everyone is an active listener. At most organizations, the only universal language is financial accounting. Organizations like Xerox have developed a much more dynamic team- and process-oriented universal language. Effective teamwork controls creativity and unleashes brainpower in the organization; it leads to better solutions, better decisions, and improved business results through more effective implementation (Allaire, 1998:113). This (teamwork) is the "engine" of horizontal communication (Gronstedt, 2000:116). Organizations like Xerox (Schultz, 1996a:15) and Saturn (Steinhart, 1998:16) have found cross-functional teams to be the drivers of horizontal communication. Although they represent entirely different industries, they both manage teamwork in similar ways. Both of these fully integrated organizations have discovered that teamwork is a skill that has to be taught and practised by everyone in an organization. All fully integrated organizations have similar teamwork processes that are engrained at every business level. These processes involve mutual respect, recognising individual strengths and weaknesses, and setting definite time limits for meetings. The setting of rules and guidelines for teamwork simplifies projects from beginning to end. Teamwork is the ultimate vehicle for facilitating integrated marketing communication. It facilitates conversations across areas of expertise, cultures and levels. It allows organizations to integrate processes and develop new 89

112 insights. Facilitating systematic teamwork requires a shift in mind-set, away from the American tradition of individualism. Such a shift is particularly difficult in marketing and communication departments, where a motion of individualism remains prevalent (Gronstedt, 2000:121). Organizations like Xerox (Schultz, 1996a:15), Saturn (Steinhart, 1998:16) and Motorola (Klaus, 1997:25-28) demonstrate that successful teamwork is possible if senior management is committed to training everyone in teamwork skills, rewarding successful teams, and setting examples by practising teamwork in their own daily work. Integrated horizontal communication is at the heart of integrated marketing communication, because few customers look for an organization with a successful financial side, efficient operations or creative advertising. Instead, customers look for good service, innovative products and reputable brands. What matters to the customer in reality are the core processes the chain events in which value is added that move across functions and departments of organizations. Examples are: taking and delivering an order, bringing a new product to market, offering responsive customer service, and labelling the service offering of the organization with a brand customers trust. This process view requires a change in perspective, from a vertical to a horizontal view. The problem with most organizations, according to Gronstedt (2000:117), is that processes are not managed with the same caution as functions. As a result, cross-functional processes are left to happenstance. For example, the designers design a new product, engineers change it, operations makes it, marketing promotes it, sales sell it, finance collects payments, and customer service returns it. Integrated horizontal communication reverses this flow. It starts from the "outside in", feeding information about the customer's needs back through the value chain of order fulfilment, manufacturing or operation (Lauterborn, 1999:13). The third dimension of integrated horizontal communication links and influences skills, assets and processes of the organization by opening the free flow of 90

113 communication across departments, business units and regions of the organization. It bridges the inherent conflicts between aligning the organization with customers and developing core competencies, between functional excellence and cross-functional synergies, between maximal coordination between business units and minimal corporate overhead, and between localisation and globalisation. The essence of horizontal integration is in establishing effective teamwork processes, facilitating "virtual communities of practice" and systematically rotating people among job assignments (Gronstedt, 2000:117) Internal communication from management Horizontal communication takes place at all levels of fully integrated organizations, starting at board level. The way in which the board manages horizontal processes and works like a team sets a precedent for middle management, which is where the impact of horizontal communication rests. It is the middle managers that support the front-line units by making the collective resources and capabilities of the organization available to them, and by continually keeping the knowledge flowing in the organization. Combining vertical and horizontal structures enables an organization to enjoy both the depth of specialised knowledge that vertical structures facilitate and the synergistic collaborative thinking that the horizontal structure provides. Horizontal process responsibilities need to be assigned at both senior and middle management levels (Gronstedt, 2000:118) Learning how the parts of the organization function An effective way to institutionalise horizontal communication is to move managers deliberately across functions, business units and countries. This practice enables fully integrated organizations to transfer experience, facilitate 91

114 personal networks and build pride in the organization rather than just the occupational and technical specialties. Giving employees the opportunity to perform various functions is mutually beneficial to the individual and the employer. By rotating jobs, employees get a genuine sense of what is involved in other positions and departments of the organization. Production Century organizations typically direct their employees in one role to perform very specific functions. The employees are never made aware of what other individuals in the organization are doing or how various departments should work together towards common goals. Fully integrated organizations, on the other hand, encourage individuals to explore many different areas. This helps the employees develop greater respect for their co-workers, and encourages an exchange of information between various departments (Gronstedt, 2000:130). International occupational rotation is becoming increasingly important in the face of a more global marketplace. The international transfer of people in marketing and communication is, however, still rare, even among fully integrated organizations. But the need for global integrated marketing communication is providing the motivation for a growth of communication "emigrants" (Gordon, 2000:75-80). The obstructions to job rotation are embedded in Western traditions. The Japanese generally tend to remain loyal to an employer but may change occupations within the organization during their career. In contrast, most Westerners are loyal to their occupation and may change employers several times during their career (Imai, 1986:30). Lateral movements in an organization are commonly viewed as relegation. Therefore, moving people horizontally in an organization has to be done with caution. It can only be successful if the people involved perceive the rotation as a growth opportunity, and are rewarded for changing jobs. Fully integrated managers enable their people to experiment and 92

115 explore other areas of the organization. In return, employees stay with their organization for a longer period when they see growth potential through job rotation (McCown, 1993:68-70). Gronstedt (2000:132) cautions against the danger of exaggerating job rotation. Organizations risk omitting new perspectives provided by externally recruited employees. Another danger is that rotation is done too frequently not providing people with enough time to settle into a position. According to Gronstedt (2000:133), any organization that can manage systematic job rotation (without overdoing it) in combination with appropriate training will find it to be one of the most powerful ways to integrate communication across departments and business units The impact of office architecture Open internal communication entails much more than the structure and rigidity of formal horizontal and vertical communication. Informal communication can be encouraged through the right physical layout of the office. As Winston Churchill once said, 'We shape our buildings. After that, they shape us". The philosophy of doing away with status symbols like "the corner office" and levelling the traditional communication hierarchies plays an integral role in successful internal communication The digital architecture Computer connectivity is developing with such speed that "digital architecture" is becoming as important as office architecture in integrating internal communication. Intranets and intemal websites for employees are emerging as the general platform of communication choice in the organization. 93

116 Intranets grant global access to thousands of documents, presentations, software packages, policies and training materials available for employees twenty-four hours a day. Information stored in drawers, binders, piles on desks, in-baskets, out-baskets and wastepaper baskets becomes unlocked and available anywhere and at any time. It can be easily searched, cut and pasted into memorandums, presentations, marketing tools and training modules. Employees can communicate with the person who produces the information and see how particular information relates to other information via hyperlinks. Intranets empower people to make suggestions, share ideas and learn from colleagues. They influence the organizational intelligence and facilitate organizational learning (Strachtman, 1998:3). In addition, Intranets are an effective way for managers to keep in touch with employees. Managers can correspond with people via and listen in on discussiongroups on the Intranet. They can practice virtual "management by wandering around" in the widespread international organizations without moving themselves, giving a new meaning to the role of horizontal communication (Wilcox et al., 2000:453) Communication overload The new climate of hyper communication has created its own problem: information overload. The average employee receives 2.3 million words in routine communication in a three-month period. This is in addition to the 178 voice and electronic mail, faxes and mail messages that the average person sends and receives each workday, interrupting them three to four times an hour (Markels, 1997:B1). The traditional solution to the problem is to control and restrict the flow of information, which is the justification of bureaucracies. The only viable solution is to develop more effective processes of both vertical and horizontal communication. Vertical communication from the top needs to be tailored to the needs and preferences of individual employees, and messages have to be labelled carefully for content, audience and urgency. 94

117 The future calls for a better balance between high-tech and high-touch communication. Human and virtual communications need to work in tandem to reinforce each other and optimise horizontal communication. Communication, human resources, marketing, Total Quality Management and Information Systems departments all bring important perspectives to employee communication. Their collaboration is needed to reinforce consistent brand messages, leverage knowledge, create synergies, and get the advantages of scale and scope of the entire organization. If the organization aspires to be a fully integrated organization, it requires a new mind-set for management. The organization needs to focus less, on operational, financial and legal implications of decisions and more on communication implications to customers and stakeholders (Duncan & Moriarty, 1997:xii). Communication in this approach needs to be integrated externally, vertically and horizontally to ensure success. Applying this three-dimensional model of integrated marketing communication as suggested by Gronstedt (2000) to an organization is not a swift solution, but a framework for thinking about change for an organization as a whole CONCLUSION Evident from this three-dimensional approach to applying integrated marketing communication within an organization is that the Customer Century is the quintessential roadmap for organizational success. For the organization to be successful in the Customer Century, it needs to be integrated in three dimensions, namely externally, vertically and horizontally. It is once more evident that integrated marketing communication is an organization-wide effort, including vertical and horizontal integration internally, and furthermore almost expanding the "organizational barriers" to include customers into the organization with its 95

118 external integration, thereby actively including customers as part of the organizational functioning, strengthening the principle of "unity of effort" and further moving towards a Customer Century organization. Integrated marketing communication, given this approach, builds strong customer relationships, which is an important foundation to sustain a competitive advantage in today's marketplace. The outcome of this three-dimensional approach is that the organization will have created loyal customers, which are less costly to maintain, les6 price-focused, and more inclined to give positive references about the organization to others; therefore, moving the organization to greater customer centricity. Firstly, this approach to integrated marketing communication is effective because it gives organizations greater control of the messages and contact points that will ultimately be entrenched in the customers' and stakeholders' minds, enabling the organization to cultivate and manage relationships better. Secondly, based on the three-dimensional approach, integrated marketing communication is efficient, saving 'time and money by leveraging the efforts of various functions within the organization, creating synergy and unifying efforts towards a common goal. Thirdly, integrated marketing communication strengthens employee relationships, by valuing and acting on their initiatives, sharing their resources and providing the information they need to perform their functions. The three-dimensional approach suggested by Gronstedt (2000) is particularly applicable for the reason that it contextualizes integrated marketing communication within the greater organizational functioning. This approach providing the integrated marketing communication infrastructure and Chapter 2 providing the foundation of integrated marketing communication, enable the implementation of integrated marketing communication programmes (the advanced stage of integrated marketing communication). Once an organization has implemented a fully integrated approach (Gronstedt, 2000), it can then, and only then, apply the integrated marketing communication programme, driving the 96

119 implementation of the approach beyond infancy. This integrated marketing communication programme is the focus of Chapter 4, where it is presented in detail. 97

120 CHAPTER 4 THE INTEGRATED MARKETING COMMUNICATION PROGRAMME 4.1 INTRODUCTION From the previous two chapters it is apparent that integrated marketing communication builds customer relationships, which are the only sustainable source of competitive advantage in today's commoditized marketplace. Planning and implementing integrated marketing communication means leading the evolution of the organization in this customer century by aligning communication where it can add the greatest value for the organization the bottom line. As is evident from the three-dimensional approach of integration discussed in Chapter 3, from a more decentralized view, integrated marketing communication is much more than determining whether the communication programme could or should be localized or whether a global message and image could be created and delivered. To develop a truly integrated marketing communication programme requires a number of skills and capabilities in the organization. This process of an integrated marketing communication programme will be the main focus of this chapter. In this chapter, the emphasis will firstly be on the requirements for integrated marketing communication programmes, after which the objectives of an integrated marketing communication programme will be discussed. Various approaches for an integrated marketing communication programmes will be discussed, after which the focus will be on the eight-step integrated marketing communication programme as suggested by Kitchen and Schultz (2000). 98

121 When the eight-step integrated marketing communication programme suggested by Kitchen and Schultz (2000) is considered, it is evident that relationship marketing forms an integral part of this programme. Relationship marketing brings quality, customer service and marketing communication in alignment, leading to long-term and mutually beneficial customer relationships. Relationship marketing is achieved through the four steps of (1) identifying customers, (2) differentiating them one from another, (3) interacting with them, and (4) customizing some aspect of the product or service to meet their individual needs (Peppers, Rogers and Dorf, 1999:viii). The underlying principle of relationship marketing is that it correlates customer satisfaction and loyalty, ultimately resulting in profitability. A clear definition of relationship marketing is incorporated, and elaborated on, within the discussion of the eight-step integrated marketing communication programme. As in any communication programme, after the implementation of the programme, it is vital for the organization to measure the outcomes of the programme. The measurement of an integrated marketing communication programme will then be discussed. Finally, the barriers of integration will be discussed, since even if the organization has the most comprehensive planning process and the finest implementation of these plans, and the organization is not aware of the barriers to integration, this entire programme will be without success. The requirements for an integrated marketing communication programme will firstly be discussed below. 4.2 REQUIREMENTS FOR INTEGRATED MARKETING COMMUNICATION PROGRAMMES There are a number of general requirements with which an organization must comply before the implementation of an integrated marketing communication programme can be considered. Therefore, the organization must have mastered the following nine key areas, or as an absolute minimum have at least access to 99

122 these, before an effective integrated marketing communication programme can be developed (Eppes, ; Schultz, et a/., 1994: ). Create global processes of internal and external standardization of operating, producing, transporting and communicating (Kitchen & Schultz, 2000:67); Gronstedt (2000:22) has the same opinion as Kitchen and Schultz (2000:67), and adds that it is necessary for the organization to start with customers, not products (thus the outside-in approach suggested by Schultz (1993d:12)); Eppes ( :6) and Gronstedt (2000:22) agree that it is necessary for the organization to identify and value customers and prospects; Schultz et at, (1994:177), Gronstedt (2000:23) and Kitchen and Schultz (2000:67) agree on the importance of identifying customer and prospect contact points; Aligning the organization's interactive response capabilities with those of the needs and demands of stakeholders (Schultz et al., 1994:177); Duncan (2001:90) proposes cross-functionality of processes in the organization as a prerequisite, so that all the departments in the organization are able to cooperate with each other in the planning and monitoring of relationships with stakeholders and the brand; Organizations must value their own brand, as the customers and stakeholders are unlikely to value it if the owners are not seen to value it (Duncan & Moriarty, 1997:14); and Creating flatter organizational hierarchies to prevent departmental silos obstructing the creation and retention of customers (Gronstedt, 2000:115). Given these eight requirements for the successful implementation of an integrated marketing communication programme, the organization must align and integrate itself and all the various elements in the communication process to focus on customers and stakeholders. If these requirements are in place for the organization, the organization can begin with the objectives that the organization 100

123 would like to achieve through the integrated marketing communication programme. 4.3 SETTING OBJECTIVES FOR THE INTEGRATED MARKETING COMMUNICATION PROGRAMME Integrated marketing communication is an effective tool for developing a consistent image and supporting relationship building with stakeholders in the organization (Hansted & Hemanth, :2). To ensure the success of integrated marketing communication programmes, organizations should establish clear, measurable objectives that the integrated marketing communication programme needs to achieve. Wood (1997:11-12) suggests that broad integrated marketing communication goals fall into five categories, which are inter-related in their ability to create or enhance customer relationships. To sharpen the focus of the programme, Schultz (1994a:16) suggests that the programme should concentrate only on one or two goals to avoid stretching the integrated marketing communication strategy and budget to cover four or five objectives. The choices according to Wood (1997:11-12) include: Build brand equity From the definition of brand equity, discussed in section 2.5, Chapter 2, it can thus be said that brand equity is in essence determined by the quality of a brand's relationships with its customers and other key stakeholders, and refers to the brand's distinctive value and identity (Duncan & Moriarty, 1997:xii-xiii). In other words, equity is the total value (tangible and intangible value) of the organization, or alternatively stated, it is the value of the organization, beyond the intrinsic value of its physical assets used to manufacture and deliver services (Duncan, 2001:47). By using integrated marketing communication to reinforce the brand's unique value and identity, the organization increases awareness and encourages stronger preference among customers and prospects. Moreover, 101

124 using integrated marketing communication to build brand equity can provide a strong competitive weapon as well as a tool for strengthening relationships with distributors and other channel partners. This is due to brand equity representing the net-sum support that is determined by relationships that an organization has with its stakeholders those who work for it, supply it, buy its products, buy its stock, recommend its stock, write about it in the media, and monitor how it conforms to government laws and regulations. In other words, brand support comes in many different forms and from many different stakeholders. When a relationship is negative or lost altogether, the net sum of support is reduced and the brand loses value. The value of brand equity can be illustrated through the example of Donna Karan International (Duncan & Moriarty, 1997:7). In June 1996, there was an initial public offering of a 50 per cent stake in Donna Karan International, the designer of popular woman's and men's exclusive clothing and accessories. Donna Karan International is not a manufacturer but rather "an originator and purveyor of image" (Bradley, 1996:8). The 10.8 million shares opened at $24 and immediately rose to $28, generating over $250 million. However, shareholders do not own any company assets, tangible or intangible, but only a share in the company. What is significant in this case is the fact that the investors were prepared to pay a premium for the shares, based on the fact that they bought into the brand, Donna Karan International. This is noteworthy as the market established its estimate of the value of the brand, with no regard for the value of the brand holder's net physical assets. The investment decision is made based on projected future returns and the risk factor involved. In this case, the brand value convinced investors to pay a premium for the shares, as the strength of the brand created the expectation of high future returns, or lower risk of the stability of such returns. Both these factors contributed to a higher share price and it is therefore safe to argue that the inherent value of the Donna Karan brand prompted these investments. Thus, in essence, the market recognized the value of brand equity, and was prepared to 102

125 pay for it, thereby placing a monetary value on the brand equity. The basic principle for the integrated marketing communication programme here is to connect the brand of the organization to the benefits that the investor values, which is in this case the good quality, exclusivity and image tied to the brand (Wood, 1998:12). This is the foundation of managing brand promise and creating trust on which the brand is built. An important integrated marketing communication practice is to create brand messages that make realistic promises that set expectations that the brand can meet Provide information In the course of making a buying decision, customers need information. If providing information is the main objective of the integrated marketing communication programme, it is important to investigate what stakeholders need, so that the organization can provide what customers want in a way that is most convenient for them (Duncan & Moriarty, 1997:47) Manage demand and sales When the organization cannot meet the demand or has a temporary problem, it may need integrated marketing communication to reduce sales or shift the demand. Most of the time, however, organizations use integrated marketing communication to build sales by stimulating primary demand (for a relatively new or innovative product category) or selective demand (for the organization's own brand in a more mature product category), for example, American Express, which uses direct mail, advertising and other integrated marketing communication tactics to build selective demand for its corporate card. In a highly competitive market, American Express's integrated marketing communication programmes are designed to have a positive effect on cardholder acquisition and, by extension, on market share (Duncan & Moriarty, 1997:138). American Express therefore creates a demand for its products, within a very 103

126 specific target market, through the integrated marketing communication programmes. In this case, the product is marketed as exclusive, and therefore to a niche market of individuals. This immediately makes the product desirable as a status symbol, thereby increasing its appeal in its own niche market and in doing so increasing its market share Communicate differentiation and, enhance positioning Integrated marketing communication helps the organization convey the most significant points of differentiation and contributes to its positioning in the marketplace (Wood, 1997:11). For instance, Postnet stresses the range of guaranteed "urgent delivery' choices offered to business customers. Having same-day as well as next-day choices differentiates the organization from one of its main competitors, the Post Office, who is seen by the public to have only one urgent delivery product, and while doing so positioning it as being able to meet virtually any deadline Influence attitudes and behaviour The organization can use integrated marketing communication to promote a favourable inclination towards the organization and its products while encouraging customers and other stakeholders to take some action, such as recommending the organization's services, contacting representatives or listing the organization's products on a purchase order (Wood, 1997:12). Once the organization has decided on a goal(s) from the five broad goals for its integrated marketing communication strategy, it needs to define specific, measurable and time-defined objectives linked to the overall marketing and corporate objectives. An example of an objective for an integrated marketing communication programme is: "Within the first three months, obtain 75 percent awareness among the retail trade of the brand's new, improved formula". Only 104

127 by measuring the integrated marketing communication results will the organization be able to evaluate its investment in integrated marketing communication and check the progress towards initiating relationships with new customers, strengthening relationships with existing customers and re-initiating stalled relationships with former customers. In the following section, the integrated marketing communication programme will be discussed, exploring some approaches to planning so as to arrive at the best approach for integrated marketing communication programmes. 4.4 APPROACHES TO INTEGRATED MARKETING COMMUNICATION PROGRAMMES Six approaches to integrated marketing communication processes are suggested in literature. All six approaches will be referred to briefly, but the focus will be on the approach suggested by Kitchen and Schultz (2000), namely the eight-step integrated marketing communication process. This approach is the most comprehensive and uses an all-inclusive approach to an integrated marketing communication programme. The first five approaches for integrated marketing communication programmes are suggested by Duncan and Caywood (1996), Sirgy (1998) as well as Thorson and Moore (1996). These approaches are utilized most frequently by marketers of customer. products (Duncan and Caywood, 1996:19-20). These include: The mandated "one look" approach Organizations that are in a fairly early stage of understanding and implementing integrated marketing communication focus on the importance of having common colours, graphics and logo treatments throughout the organization's communication materials (Caywood, 1998:xvii), as discussed in the second stage of integration - image integration stage - in Chapter 2, section Within those 105

128 organizations that define integrated marketing communication to mean a common look, the approach to planning for integrated marketing communication is quite simple: some centralised or corporate group develops guidelines, and the makers of all communication materials are asked to develop their materials accordingly (Duncan & Moriarty, 1997:80-81). Sometimes, particularly in customer product organizations, the "one look" emanates from an advertising programme involving a visual approach developed by the advertising agency (Swan, 1993:42-43). In this regard, the mandated one-look system is a strategic basis to the following approach The theme lines on matchbooks approach This second approach suggested by Thorson and Moore (1996:138) and Sirgy (1998:10) for integrated marketing communication programmes is used by some marketers who think in terms of customer advertising being the central communication element, and is often the result of an advertising agency's encouragement. Based on this approach, given a particular advertising campaign, the idea is to make sure that customers are reminded of the advertising through the use of the other integrated marketing communication vehicles. The main focus of this approach is using advertising as the foundation. The result is then, that the advertising theme line is primarily the element that is carried over. In the best cases, the theme line or other execution element is transferred onto integrated marketing communication vehicles that have some thematic tie with the line and are likely to reach the target audience effectively (Thorson & Moore, 1996:138). An example of this would be the use of the Coppertone theme line: "Tan don't bum..." in skywriting over beaches during the summer. In other cases, the goal of achieving broad exposure for the theme line strays from the idea of the strategic focus (Duncan & Moriarty, 1997:91). An example of this would be the maker of a brand of house paint that defended its sponsorship of formula one racing cars on the basis that it enabled exposure of 106

129 the brand's theme line in a venue that matched the paint's upscale positioning as: "It [the paint] is unique, and we're unique" Supply-side programmes In supply-side programmes, the third approach suggested for the integrated marketing communication programme, a package of communication vehicles is assembled based on what the supplier has to sell (Duncan & Caywood, 1996:19-20). The supplier might be an advertising agency that has divisions that provide other communication services or as part of a recently growing trend the supplier might be a media conglomerate. These media conglomerates are organizations that were once active in a single medium, such as television or magazines. In the past decade, a number of the more successful media organizations (for example Primedia) have diversified into other media, entertainment and promotional organizations. These organizations approach advertisers with packages that include media advertising, direct marketing using tailored segments of the supplier's subscription list, sweepstakes and contests, special event sponsorship and the production of sales training films. To advertisers, these packages can seem appealing, based on very attractive pricing and the appearance of complete integration Ad hoc approaches The fourth approach for integrated marketing communication programmes is the ad hoc approaches as suggested by Thorson and Moore (1996:139). A number of marketers who understand the value of integrated marketing communication programmes and have organizations that can be mobilised to integrate their communication attempt to create such programmes through a combination of market analysis and meetings of the groups involved. Typically, an individual within the marketing organization will lead this effort, and will involve internal departments (for example, the corporate communication department), and 107

130 externally, a communication agency (Sirgy, 1998:11). This process has the potential to result in effective programmes. According to Duncan and Caywood (1996:19), there are two principle shortcomings to ad hoc approaches: first, the process is often not efficient much time is generally wasted in the development of a programme, because the participants do hot know where to start or how best to proceed. The second drawback is that the outcome may or may not be a well-balanced programme, depending on the skills of the group leader and differences in persuasion skills of the advocates of individual disciplines. For example, a particularly aggressive proponent of advertising or direct marketing may effectively lobby that the programme should be dominated by his or her discipline, even when a more rigorous analysis would suggest that this is not in the best interest of the marketer Strategic system integrated marketing communication planning In contrast to these four approaches discussed, Thorson and Moore (1996: ) suggest using a strategic planning system for integrated marketing communication (the fifth approach). On a more general level, this strategic system suggested by Thorson and Moore (1996) can be linked with the general systems theory. The general systems theory gives insight into the functioning of an organization as a whole as well as the influence the environment has on organizational functioning (Du Plooy-Cilliers, 2001:33). Relating this back to the approach of Thorson and Moore (1996), the strategic systems approach also focuses on the functioning of the organization as a whole with integrated marketing communication. The central principle of this theory is that the whole is bigger than the sum of its parts (Cutlip, Center & Broom, 1994:214). This means that the whole is made possible through a complex interaction between the different interdependent subsystems of an organization. In integrated marketing communication, the underlying notion is also that the whole of the 108

131 organization's functioning is more than the sum of the parts when the parts of the organization function on their own. This strategic planning system for integrated marketing communication programmes avoids the pitfalls of: Implementing only superficially integrated communication, such as a programme that shares only common graphics and logo treatments (as suggested in the mandated "one look" approach (Swan, 1993) and the theme lines on the matchbooks approach (Sirgy, 1998:10)); Using the tools of integrated marketing communication to build customer preference (a common function of customer advertising) instead of using each tool to accomplish other tasks necessary to complete the selling cycle (as suggested in the supply-side planning approach (Duncan & Caywood, 1996:19)); and Developing a programme that allocates resources across integrated marketing communication tools for the wrong reasons such as the pressures from suppliers or organizational politics. On a more general level, the advantages of using a strategic planning system to develop integrated marketing communication programmes are similar to those that marketers and their traditional advertising agencies have experienced in using traditional advertising strategy planning approaches in the past. More specifically, these involve: Using a disciplined approach to planning marketing communication is far more likely to result in effective communication than a more intuitive process, particularly as the competitive market for the product becomes more cluttered, and unique selling points are less obvious because of media fragmentation and product parity. 109

132 The programme development becomes more efficient. Although some time is invested at the beginning to create the strategy, fewer false starts should result in reduced programme development time (Schultz et al., 1994:65). The use of a strategic system is particularly effective in large organizations, in which it is important for many individuals and groups with different perspectives and different roles to play to reach consensus on the programme before implementation begins (Thorson & Moore, 1996:140). The development of the plan, if done in a manner that includes all key group members, enables all the members to contribute. This type of planning for integrated marketing communication programmes is referred to by Duncan and Moriarty (1997:172) as cross-functional planning. The structure of the planning system helps to make the process orderly and logical, and ensures that the outcome is a programme that is both synergistic and balanced. Although the advantages of efficiency and effectiveness should be persuasive enough to motivate marketers and their agencies to adopt a strategic approach to the development of integrated marketing communication programmes, this has for the most part not yet happened. The reason for this is that the strategic system that would aid in the planning of an integrated marketing communication programme requires a more complex set of interrelated considerations and decisions than does a system in which a single audience and message are identified (Schultz et al., 1994:70). Specifically, an integrated marketing communication planning system, if it is truly comprehensive according to Duncan and Moriarty (1997:70), must first take into account: Various customer groups with differing levels of involvement with the category or brand (for example, purchasers and users, and mothers and children); 110

133 Multiple non-customer audiences (for example, retailers, recommenders and organization employees); and Opportunities to reach customers at numerous points during the decision process (for example, deciding to include the brand on the list and in the store, dealership or showroom at the point of purchase). Thus, the system must firstly provide a way of examining each of these targets, both as a potential recipient of the marketer's message and as a potential voice for the marketer someone who, as recommended, could for example influence other members of other targets. Secondly, the integrated marketing communication planning system must also provide the basis for evaluating an extremely wide range of communication vehicles (the programme tools) that could be used in various combinations to reach the targets identified as relevant to the marketing objective. Thirdly, the ideal integrated marketing communication planning system would help the planners with the difficult issues involved in resource allocation; given all the target audiences and all the communication tools that could be used, determining what combination of elements would best accomplish the marketer's objectives at the most efficient cost (Thorson & Moore, 1996:141). This refers to the concept of zero-based communication planning (as discussed in Chapter 2, section 2.5), the idea that communication tools are used based on an assessment of what needs to be done now and not based on the previous year's budget allocation (Duncan & Moriarty, 1997:148). This planning system of Thorson and Moore (1996:141) is a planning system that is both market and customer based. The focus on the market is necessary if the marketer is to take into account all the potential audiences for communication, and to determine the best allocation of resources among these audiences. The customer focus is important to ensure that the message is relevant and motivating to each individual for whom it is intended. This strategic system planning approach suggested by Thorson and Moore (1996:139) contains four steps, namely: 111

134 Audience identification; Segmenting customer audiences based on the stage of purchase cycle; Identifying messages and communication vehicles for each target; and Resource allocation. The four-step approach will not be discussed in detail, but will be referred to in the eight-step integrated marketing communication process of Kitchen and Schultz (2000) Eight-step integrated marketing communication process Kitchen and Schultz (2000) alternatively suggest an eight-step integrated marketing communication process the sixth approach to be discussed in greater detail. This approach suggests a circular nature of the integrated marketing communication planning process: working through all eight steps, and then taking the planner back to step one (See Figure 4.1). Through this "closed loop" planning system, the learning from each step in the process and from each completed communication programme is included and combined with the data previously gathered and stored, and provides a basis for planning the next stage of the communication plan or the next communication programme. The organization is constantly learning from marketplace experience, and is continuously improving and enhancing the knowledge of customers and prospects. In this approach, the organization is also constantly testing assumptions and connecting them to the marketplace reality. 112

135 Step 1 Global Database Step 8 Marketplace measurement Step 7 Investment and allocation Step 2 Customer/Prospect value Step 3 Contact points/ Preferences Step 6 Estimate Return on Customer Investment Step 5 Message development and delivery Step 4 Brand relationships Figure 4.1 The eight-step integrated marketing communication process. Source: Kitchen & Schultz (2000:9) Step 1 global customer/prospect databases One of the ingredients in the integrated marketing communication approach to developing effective and efficient marketing communication programmes is substantive, continually updated knowledge about customers and prospects. This generally comes from data and information stored electronically in a customer or prospect database or in databases that the organization may maintain (Schlossberg, 1992:5). A database, according to O'Connor and Galvin (1997:273), is a collection of related information that is stored and organised in a way that allows access and analysis The use of the database as an essential tool in the integrated marketing communication programme relates back to the 113

136 definition of integrated marketing communication for this study, which focuses on the vital inclusion of data-driven communication between the organization and all the stakeholders. In order to create the data-driven communication, organizations use databases to manage information, from which they are able to interact with customers or stakeholders. Personalised, purposeful dialogue with customers and stakeholders cannot occur without a database to track all the interactions and not just the transactions. The aim of the purposeful dialogue is to build a relationship with customers and stakeholders. This consideration is in line with the concept of relationship marketing, for the reason contained in the definition of Gronroos (1994:9): "...to establish, maintain and enhance relationships with customers and other partners at a profit, so that objectives of the parties involved are met. This is achieved by a mutual exchange and fulfilment of promises". Gronroos's (1994:9) definition of relationship marketing encompasses the concept of exchange. Relational exchange in the domain of relationship marketing reflects the essential idea that each exchange takes into account both the past and the anticipated future (Davies, 1995:17). The relationship that the organization has developed with customers and prospects over time is thus reflected in data on purchases, enquiries, responses to promotions and other behavioural data that allow the organization to determine what actions the customers or prospects have taken in the past and thus what might be expected in the future. It can consequently be seen as a learning relationship that the organization has with the customers. Peppers, Rogers and Dorf (1999:3) refer to a learning relationship as a relationship that gets "smarter and smarter with every new interaction with the customer. Peppers and Rogers (1997:15) state that, in a learning relationship, the customer tells the organization of some need, and then the organization. customises its products or services to meet this need. If the organization can observe customer. behaviour over time, it is much easier to understand the 114

137 buying strategy the customers are employing or at least the exchanges being made in brand purchase and supplier selection (Duncan & Moriarty, 1997:111). This "learning relationship" refers directly to the relationship marketing idea that different customers should be treated differently, based on the information obtained in the learning relationship that the organization has with the specific customer. For 21 st century data and database management to be successful, it has to bring all the relevant data obtained in an organization together, so that the organization accurately knows and understands its customers. Data exists throughout the entire organization and unless it is brought together, however, it is often futile (Kitchen & Schultz, 2000:90). Database mining can be used to bring this information together. Data mining is the act of using software programmes to analyse the customer databases to look for such things as trends and buying patterns and to determine customer segments that are only buying a small portion of the organization's product offerings (Duncan & Moriarty, 1997:225). Data mining therefore identifies common characteristics of the customers with the best potential based on a multitude of factors, including buying behaviour and demographics (Gronstedt, 2000:54). Duncan (2001:763) describes the purpose of data mining as identifying trends, relationships (e.g. heavy users buy less frequently than the average customer but in larger quantities), and other information and insights about customers, in order to make better marketing decisions. Communication professionals must therefore be knowledgeable about data, data handling and data access (Harris, 1998:118). The database is the core of any integrated marketing communication process (Duncan & Moriarty, 1997:213). Gonring (1994:49) agrees with this notion and adds that it is vital to develop databases and utilize them in order to understand the stakeholders of the organization. An important element for the organization to 115

138 capture is information that describes or illustrates the relationship the organization has with the customer or prospect. The phrase "relationship with the customer" separates a database from a mailing list or various types of segmentation representation. Without this type of data, the organization must resort to practising mass marketing on a global scale. Most functional databases contain, at minimum, details on past purchases by the customer or qualifications of customers that allow them to be separated from others. While databases play such a major role in organizatioris, Kitchen and Schultz (2000:91) further found three major issues most organizations are confronted with when they attempt to develop a customer-integrated marketing communication database: 1. Firstly, the level of data needed and the capturing and maintenance costs should be considered. In this regard, it has been found that the best approach to developing and using an integrated marketing communication database is (Schultz, 1995b:12) as follows: Understand what the data will be used for; Understand how it will be used to develop communication programmes; and Then match up the costs with the needs and benefits. 2. Secondly, the types of data needed for marketing and communication planning should be considered. These types of data needed in this database include the following types of information: Demographics (Kitchen & Schultz, 2000:92); Psychographics or lifestyle data as suggested by Koekemoer (1998:237); Behaviour (predictive data as suggested by Koekemoer (1998:237)); 116

139 Usage patterns (Kitchen & Schultz, 2000:92), while Koekemoer (1998:238) refers to this as predictive data; and Geographics (Kitchen & Schultz, 2000:92). 3. Thirdly, the methods used to analyse and understand the data should be considered. To analyse and understand the data, the following are prescribed: an integrated marketing communication approach suggests using aggregation (bringing together similarly behaving customers and prospects) rather than trying to understand and explain how markets are organised (segmentation), what the specific groups in those segments do and how they respond to marketing communication programmes (Kitchen & Schultz, 2000:93). Instead, the premise behind aggregation is that behaviours are the most important variable in understanding customers and prospects. The reason why these three issues mentioned above are imperative for the organization is contained in the finding of a benchmark study conducted in the United States in 1997 on best practices in integrated marketing communication. In this study, it was found that one of the major differences between best practice organizations and those seeking to improve their integrated processes was that the best practice organizations had managed to integrate their global databases while those seeking to emulate them had not (McGoon, 1998:17). When comparing this first stage of the Kitchen and Schultz (2000:87-95) approach (global customer/prospect databases) to the first stage of the strategic system planning approach suggested by Thorson and Moore (1996), the most evident difference is that the Thorson and Moore (1996) approach begins by determining the most likely customer for the product. The Kitchen and Schultz (2000) approach accordingly focuses more on obtaining information about the (supposedly already identified) customer in the first stage. It can therefore be considered that it is essential to identify the customer first (as confirmed by the relationship marketing idea to identify customers first (Peppers et al., 1999:ix)), 117

140 and then obtain information about that customer to assure the learning relationship between the organization and the customer Step 2 - customer/prospect valuation The significant nature of the global customer database becomes apparent when the organization considers that step two in the integrated marketing communication process is to value customers or prospects by some means (Kitchen & Schultz, 2000:95). The reason for this valuation is that if the organization is to invest the finite resources of the organization in cultivating the best customers and prospects, it must have some means of valuing each of them as a basis for this investment process (this process will be discussed in Step 7 of the Kitchen and Schultz (2000) approach). Similarly, the strategic system planning approach suggested by Thorson and Moore (1996) recommend their second step, the segmentation of customers, based on the stage of purchase cycle. In the Thorson and Moore (1996) approach, it is thus also necessary to value the customer. In the approach to customer and prospect valuation, the most important return to the organization (sales and, ultimately, profits) is above all contended with. That is, the organizations try to identify those customers who are presently the most financially valuable to the organization and those who might be worth the most for the organization in future by using the purchase_ information in the database information (Kitchen & Schultz, 2000:95). Thus, the organization focuses on both short-term and long-term returns of the organization. The difference between these two groups, their potential returns and the time frame of those returns as stipulated in the databases will become important when the organization starts to determine the returns on their marketing and communication investments (Duncan & Moriarty, 1997:57) (the concept of returns will be discussed in Step 6 of the Kitchen and Schultz (2000) programme approach). 118

141 The best method to value customers and prospects is financially, that is, by determining their purchases, or what Kitchen and Schultz (2000:79) refer to as "income flows". The income flow approach to valuing customers according to Kitchen and Schultz (2000:97) is derived from four elements. These elements are directly aligned with the three elements of the relationship marketing view on valuing customers suggested by Peppers and Rogers (1997:32-36). These approaches are discussed in combination below. Firstly, Kitchen and Schultz (2000:97) suggest that the organization should determine what the total penetration in the product category is among that group of users. The organization's interest is how many of the total customers in that product category purchase the organization's brand, i.e. what share of total customers in the category does the organization have. Secondly, this view includes determining how the organization's customers fit into the overall product category. The relationship marketing view encompasses the first two phases of the Kitchen and Schultz (2000:97) approach, in that it focuses on the purchase dynamics and the share of total purchases. According to the relationship marketing approach, the first step towards understanding the value of customers is to understand their level of use of the organization's products or services. What is the total number of customers who buy from the organization, and what is their buying rate? This yields the total current volume. The organization's estimate of total potential must be based on some dependable evidence that the organization can capture additional sales from customers rather than just some "hoped for" increase. This analysis must be done not only for present customers but also for competitive customers and emerging users (Harris, 1998:129). Once the organization has established the buying rate of the customers, the next step, according to the approach of Kitchen and Schultz (2000:97) is to determine what share of the total category requirements the purchases of the brand represent, i.e. what share of the purchase does the organization enjoy compared to the competitors. This concurs with the second step of the relationship 119

142 marketing view, which entails the valuation of customers and prospects (Peppers & Rogers, 1997:32-36). Calculating income flows for each group means including the additional calculations from the product margin. This will give the organization the current total value of each customer. Hence, the organization can also estimate or calculate its potential future financial value (Sirgy, 1998:213), in other words a quantified currency value. This will provide a basis for setting the behavioural objectives, which is the third element of the practice of relationship marketing and is discussed below. As stated above, Peppers and Rogers (1997:35) propose that the final stage in the valuation of the customer is that of behavioural objectives. Similarly, according to Kitchen and Schultz (2000:96), the last stage in valuing customers is that the organization needs to develop a measure of margin contribution for each customer (i.e. measurement of the behavioural response of the customer). Behavioural objectives are valuable elements for integrated marketing communication, for they define what is to be accomplished with such a programme (Schultz et al., 1994:108). That is, if the behavioural objective is to retain the present income flow from a customer, then the communication programme must be focused on that goal. The organization is setting communication objectives that will be measured by behavioural results (Schultz, 1994c:16). When the behavioural objectives are set, the organization develops the integrated marketing communication programmes that will help achieve those goals. The essence of step two of the integrated marketing communication programme is therefore purely a general valuation of the customer or prospect in order of importance to the organization. This is done to be able to direct the integrated 120

143 marketing communication programme at customers and prospects, based on their consequent value for the organization Step 3 - contact points and preferences Step three of the eight-step integrated marketing communication process (Kitchen & Schultz, 2000) lists two areas for implementation: contact points and contact preferences. Contact points are all the ways in which customers and prospects come into contact with the organization, the brand, channel members or any other persons or activities that are related directly to the brand and that can be or are used to influence either present or future considerations of the brand (Duncan, 1997). Contact preferences are the ways customers and prospects would prefer to receive information or material from the organization or the brand (Duncan & Moriarty, 1997:161). It is critical to determine what communication approaches customers and prospects prefer since, given the many product and media alternatives available, the organization cannot force a message on a customer. Instead, the organization must respond to the preferences of the customer. In the customer century, it is no longer how the organization wants to communicate; it is how the customer wants to be communicated with that really matters in the global system. In the area of contact points/preferences, the organization must in addition learn and understand how customers want to communicate with the organization and how they want to access information from the organization. To learn how customers want to communicate, the organization uses an uncomplicated process: The organization asks them how they would like to receive information, materials, or background on the organization's products or services. The organization then attempts to comply with the customer's wishes (Linton & Morley, 1995: ). Similarly, Thorson and Moore (1996) suggest in their step three of planning the identification of messages and communication vehicles for each target. 121

144 With regard to contact points, one of the best means to understand brand contacts is through a brand contact audit and analysis by the marketing communication group intended to identify all the ways in which the organization touches customers and prospects. This can be a formal or an informal process, in which representatives from the various areas of the organization list how and when and in what ways they come into contact with customers and prospects. The questions about the brand contacts for the audit include where the contact occurred, what the customer or prospect's expectations were at that time, and how that contact might be improved (Sirgy, 1998: ). Understanding current and existing customer contact points and preferences is required for integrated marketing communication (Duncan & Moriarty, 1997:96; Schultz et al., 1994:83). Therefore, the organization needs to devise ways in which to collect more information about customers. These strategies must be devised in such a way that relevant information about customers can easily be captured by all staff or employees (Peppers & Rogers, 1994:9). Every engagement with a customer must be seen as an opportunity and "moment of truth" (Duncan, 1997) for the customer. This idea refers to the relationship marketing step of interacting with customers. Peppers et al. (1999:5) state that in this step of relationship marketing, the organization must engage the customers in an ongoing dialogue that enables the organization to learn more and more about the customers' particular interests, needs and priorities. Owrid and Grimes (2001:7) state that the organizations that most successfully manage these seamless engagements of key entities (by closing the gaps that separate them) are those that will truly prosper in the 21 st century. Owrid and Grimes (2001:7) suggest that there is one requirement for arriving at this, which is referred to as a 360-degree brand idea. That requirement is to be totally single-minded about the end the organization wishes to achieve and at the same time neutral (zero degree) about the means the organization uses to obtain it. The 360-degree view according to Gronstedt (2000:69) means that there needs to be some kind 122

145 of inter-related data system that can serve multiple applications in the organization. Another important part of understanding contact points is the impact of various internal and external stakeholders. For example, an environmental group may organize a strong communication programme against the practices of the brand or the organization. The communication professional must take these activities into consideration. The same is true for other stakeholders such as the financial community, government and legislative bodies, unions and other organised groups. While these stakeholder actions and activities may or may not be related directly to the specific audience, the communication professional must factor them into the overall programme to account for the impact they may have on the organization in the marketplace. Gonring (1994:19) agrees with this stage of implementation in suggesting that the organization should identify all contact points for the organization and the organization's products. Furthermore, the author also agrees on the usage of an audit to determine where communication can best be used to reinforce the organization's messages. Gonring (1994:19) has a similar opinion in that he believes that the organization must work to ensure that the organization's communication efforts are occurring when, where and how customers want them (i.e. contact preferences) Step 4 brand or organization relationships The brand will increasingly be one of the most valuable assets that the organization controls (Kitchen & Schultz, 2000:102). Given the lack of other sustainable competitive advantages, the brand becomes the primary relationship vehicle between the organization and its customers and prospects. This makes brand knowledge or the understanding of current brand meanings by customers 123

146 and prospects most important in identifying and developing new brand communication programmes (Duncan & Moriarty, 1997:48-49). The definition of a brand (as discussed in section 2.2.4) is primarily based on the idea that it is the relationship between the buyer and seller, or as stated by Duncan and Moriarty (1997:9): "...it exists in stakeholders' heads and hearts, not on the sides of packages, those are simply brand names and logos". Relationships have history, meaning, shared understandings and prospects for the future. All four of these elements are important in understanding the relationship a customer has formed with the brand and how that relationship might be improved, enhanced or changed, if necessary (Citss & Smith, 1995:54-55). While the organization owns the elements of the brand the produtt or service, the icons, the symbols, the messages and the colours the customers assemble it into a whole, and develops the brand meaning for themselves. Memory is formed when the brain takes two known elements, puts them together and creates a third or 'a new relationship (Baron & Byrne, 1997:145). For example, thirst and liquids occur as separate elements in the brain. Then, when the customer brings them together with the elements and symbols of Coca-Cola, a third or brand relationship is formed. Every person who connects thirst, liquids and Coca-Cola will not create the same associations of Coca-Cola, but they will create the same image in their minds. Each person uniquely creates the brand for himself or herself. Thus, while Coca-Cola and thirst and liquids are all basic relationships, the other personal elements that the customer adds are what create the brand and the relationship. This is what Kitchen and Schultz (2000:104) label "brand networks". It is critical for the organization to understand the brand networks customers and prospects have created with the brand before attempting to implement integrated marketing communication programmes to enhance, change or reinforce those networks. Several research techniques are available to help communication 124

147 professionals identify current brand networks among customers and prospects. These techniques generally fall under the heading of attitudinal research and relate to the awareness, knowledge and feeling that customers and prospects have about brands and organizations. One such technique to identify current brand networks among customers is the laddering technique as suggested by Schultz et al (1994: ). The research technique called laddering helps researchers understand the various forms of hierarchical category, product and brand levels that generally exist in a customer's mind. The research objective is to get beyond the superficial reasons people normally use to explain their behaviour and to reach the actual reasons people act and react as they do. The laddering method (consisting of in-depth probing as to the reasons a respondent identifies a concept as being important), which moves customers to higher levels of abstraction in order to obtain responses closer to the "end" or values level, illustrates how customers group products differentially at different levels of abstraction. In theory, it is this higher values level that governs perception and, ultimately, product evaluation (Botschen, Thelen & Pieters, 1999:162). Furthermore, the laddering procedure elicits a connected set or chain of interrelated descriptive elements (Bayley & Nancarrow, 1998: ). Through this laddering approach, the organization can start to understand how various concepts are connected (Thompson & Chen, 1998:8). The ideal solution to this approach is to illustrate these networks graphically so that they can be studied and perhaps modelled (Tippins, 2001:77). Thus, only by knowing the brand relationship that exists that is, the brand knowledge that comes from the previously developed brand network brought about by the brand experience can the communication professional develop an effective message or incentive. 125

148 Step 5 message and incentive development and delivery One of the most noticeable differences of the integrated marketing communication process compared to a traditional promotional mix process is that development of messages and incentives generally at the core of the traditional promotional mix process enjoy a lower priority in terms of implementation, in the development process. This reflects the basic premise of integrated marketing communication that the organization cannot develop effective messages or incentives, unless and until it understands customers (Schultz et al., 1994:108). Kitchen and Schultz (2000:82) state that the use of the terms messages and incentives rather than advertising or public relations or sales promotion are intentionally used, because based on their research, they found that customers rarely differentiate between the functional areas of marketing communication. Instead, customers tend to translate the functional areas into messages and incentives. Gonring (1994:49) describes this stage as follows: "Create compatible themes, tones and quality across all communications media. This consistency achieves greater impact and prevents the unnecessary duplication of work across functions. Make sure each message carries your unique primary message and key selling points". Traditionally, the centre of any marketing or communication programme has been the message to be delivered to the customers and prospects. Messages will continue to be important in the global marketplace, but they vary in importance depending on the type of marketplace in which the organization operates (Linton & Morley, 1995:31-32). Therefore, communication professionals must focus on understanding customers and prospects, and answering their. needs and desires. For the customer-centric communication professional, the message itself is often secondary to the message or incentive delivery system. 126

149 Therefore, it is vital for the communication professional to customize the message or incentive delivery system to be appropriate to the customer. Customization entails adapting some aspect of the organization's behaviour towards the customer, based on that customer's needs and values (Peppers & Rogers, 1999:5). There are various ways in which an organization can tailor its behaviour regarding an individual customer, other than customizing a physical product. These include: bundling, configuration, packaging, delivery and logistics, ancillary services, service enhancements, invoicing payment terms, preauthorisation and streamlining services (Peppers et al 1999:127). To establish the learning relationship between the organization and the customer, the organization must adapt the message and very importantly the message delivery system to meet that customer's individually expressed needs. Message delivery thus becomes the key issue in the century marketing communication structure. Historically, delivery systems were forms of media print or broadcast, in-store or through the mail, and so forth. In the integrated marketing communication approach, delivery systems include whenever and wherever a customer or prospect comes into contact with the brand or the organization the what is referred to as the moments of truth. If new and unique forms of delivery are to be used, there must be methods and ways of measuring the impact and effect of those delivery systems so that they can be compared to existing media forms (Schultz et a :101). Delivery systems may be more important in the customer-centric marketplace than messages or incentives. If the message or incentive cannot be delivered to the intended customer or prospect, it does not matter what the message or incentive is or was (Gronstedt, 2000:175). Thus, delivery systems have become extremely important and will become even more so in the view of Kitchen and Schultz (2000:83). 127

150 The entire process of integrated marketing communication focuses on the customer. This step evidently relates to the customer-centric theoretical approach of Gronstedt (2000) discussed in Chapter 3, where the focus of integration is on horizontal, vertical and internal integration of communication as well as external integration of communication Step 6 estimate of return on customer investment (ROCI) Subsequent to the five steps (global customer/prospect databases, customer/prospect valuation, contact points and preferences, brand or organization relationships, and message and incentive development and delivery) of the eight-step integrated marketing communication process, the next logical step is to estimate what type of return or response the organization might generate from the marketing communication activities. In the integrated marketing communication programme, Kitchen and Schultz (2000:83) call this return on customer. investment (ROCI), not the more familiar return on investment (ROI) (Schultz, 1994d:11). This step determines the financial value of the entire programme thus far, and translates results into financial terms, based on the utilization of various measurement methods. The key difference between this step and step two (the valuation of customers or prospects) is that in stage two, the focus is on the general valuation of the relationship the customer has with the organization and where that customer stands on the communication priority list of the organization. This is in contrast to the valuation that takes place in step six, where the return on the customer investment (ROCI) specifically is determined in financial terms with scientific financial measures. In step two, it was shown that neither all customers nor all prospects are alike in terms of their current or future value to the organization. This notion is further reinforced by the concept of relationship marketing that proposes that different 128

151 customers should be treated differently (Peppers & Rogers, 1999:1). Kitchen and Schultz (2000:79) suggest that the typical marketing and communication tasks of implanting messages or gaining awareness should be converted into concrete financial decisions that allow the organization to differentiate one customer or group of customers from another, which in return refers to lifetime customer value (LTCV), which is an estimate of how much a given customer contributes to an organization's profit over the average number of years the average customer buys from an organization (Duncan, 2001:765). LTCV is a relationship marketing idea based on product sales, aftermarket service revenue (direct revenue) as well as referrals and endorsements (indirect revenue). Semmelmayer ( :1) proposes that marketing communication outcome results must be translated into "financial" terms. An integrated marketing communication programme utilizes the feedback in a programme in creating a "learning cycle" (or a learning relationship as discussed in section 4.6.1) to maximize future results. That feedback, when analysed contemporaneously, can also constitute a concurrent yardstick of programme accountability. Thus, the "final frontier" of integrated marketing communication is accountability. Semmelmayer ( :2-4) suggests that the first step in developing accountability lies in planning the programme and establishing logical, reachable objectives. The second point in establishing accountability is to develop a tactical plan to achieve the objectives, which includes a series of internal and external progress checkpoints. Thirdly, measurement tools must be applied continually across the entire programme in an ongoing process. Additionally, one of the ingredients necessary to estimate any type of return from a customer is knowledge of the present importance of that customer. In other words, the organization must know what the customer is worth presently to be able to estimate what the organization might get back from any level of investment in future (Schultz, 1994b:12). The initial information will come from step two in the planning process, where the general current and potential values 129

152 of the customer are estimated. By knowing the value and what the investment in messages and incentives might be, the organization can begin to estimate what type of return it can generate. In planning an integrated marketing communication programme, the organization relies on estimates of returns based on experience or research or management knowledge - what the organization assumes might come back. Once the programme is in the marketplace, however, if the organization has set up the necessary "closed-loop" systems, it should be able to measure the actual results of investments. Thus, the organization begins with estimates and converts them into actual returns as it captures marketplace results (Kitchen & Schultz, 2000:84). This initial estimating activity is critically important to the integrated marketing communication programme. Only by estimating in advance can the organization determine what might be most valuable or return the greatest result to the organization. It is this testing process that initiates step seven of investment and allocation. Step six describes a framework for measuring both programme end-points and processes. It is an outline, detailing the essential elements of a strategy that can be implemented, economically and effectively, to make marketing communication efforts more capable and accountable. It is designed to afford the organization the information to make concurrent adjustments and optimize the results of ongoing efforts as well as improving planning for subsequent programrnes Step 7 investment and allocation The next step in the Kitchen and Schultz (2000) integrated marketing communication process is the concrete determination of the financial investment the organization plans to make in the customers and prospects through various forms of integrated marketing communication programmes. Thorson and Moore (1996) refer to this stage in the strategic system planning approach as the 130

153 resource allocation stage, where the objective is to determine how to allocate the available resources across a set of options to be covered with the existing resources. In the Kitchen and Schultz (2000) approach, this step is primarily a process of coinciding costs of various marketing communication activities and testing hem against the estimated returns. To a great extent, judgement is needed here, along with the information and material contained in the database (established in step 1) and the actual marketplace experience (Schultz, 1994b:12). In the integrated marketing communication approach, customers and prospects are the starting point, not markets and countries the outside-in approach. When the organization begins with the customers, it becomes apparent whether or not there is enough commonality to combine various customer groups when starting to cross borders and cultures. Thus, the aggregation of people or organizations that behave in a certain way gives them a commonality that tends to make global communication practical and possible. There may need to be changes in language or illustrations, but basically it is the behaviour that the organization is trying to influence, and behaviours tend to be driven by common, underlying decisions people or organizations make. This again refers to customization (the fourth step of relationship marketing as suggested by Peppers and Rogers (1999:124)) and is therefore the end result of this combination process, where the organization needs to act on what it has learned. Therefore, it uses its knowledge about individual customers to customize (change and adapt) the way the organization treats them. Furthermore, an important step in most investment and allocation decisions is to take a zero-based budgeting approach instead of a continued or rolling budgeting approach (Drury, 1992:443). There should be no preconceived conditions or preset media or delivery choices. Each decision should be made independently, allowing for interaction among the various programmes being planned and 131

154 executed. Inherent in this approach is the idea of media neutrality: decisions will be based on what will provide the best return to the organization, not on which medium is most attractive to the planner or what might be considered the best allocation decision (Gregory, 1996:39). The organization is dealing with its limited resources and must recognize that it is investing the resources in developing the best customers and prospects in the hope of the greatest returns. Inherent in step seven is the need to build on previous decisions. For example, the organization will need to use the valuation of the various customer groups from step two in the planning phase to determine how much organizations are willing to invest in an integrated marketing communication programme. This will depend on the present value of the customers and what their potential for future returns (lifetime customer value) might be (Sirgy, 1998:213). The organization will need to use the information from step five in the programme to decide on whether it needs to deliver messages or incentives Step 8 marketplace measurement Once the investment and allocation decisions have been made, the final step is to set up systems of measurement to determine what actually occurred in the marketplace. Most of those decisions what customers, what messages, what investments, and the like were made earlier in the eight-step process. The marketplace results are, however, what really happened, what the organization received for its investment in various customers, and how long it took to achieve those returns (Schultz et al, 1994:115). It is also here that the determination is made about whether or not all the preceding steps have been developed accurately and the returns generated. In step six, the communication professional estimates the return on proposed customer investments. In step eight, the organization measures actual marketplace results and compares them to the estimates. This demonstrates to 132

155 the communication professional how effective the planning has been. It is important to remember that in all the cases returns through income flows are measured. In step six it was estimated what level of income flow the programme might generate. Here any changes in the actual results of the programme are measured. In order to do this, the organization needs methods to capture current income flows so that it can measure them, compared to past income flows, to find the differences. In some cases, organizations may not be able to measure immediate income flow changes, which is why the communication investments are divided into business building and brand building (Clarke, 1996:27). The final step in the integrated marketing communication programme can be seen as the "recycling" phase of the integrated marketing communication programme. The organization takes the results achieved in the marketplace from the programme and, after evaluation, adds them to the database, ideally connecting the results to each individual customer. If this is not possible, the organization then links the results to each customer group. It is this agility to test and measure that in fact differentiates the integrated marketing communication programme from others. By taking results from current programmes and using them as input to the database, the organization creates a "closed-loop" system that allows it to learn and improve on previous results continuously (Harris, 1998:122). It is this "closed-loop" circular system that differentiates the integrated marketing communication approach from other generally ad hoc approaches as suggested by Thorson and Moore (1996:139) in section 4.4. Only by using actual marketplace results as the basis for the next programme cycle can the organization essentially become a learning organization. Knowing what worked and what did not work, knowing what performed up to expectations and what did not enables better, more effective communication professionals. 133

156 4.5 THE INTEGRATED MARKETING COMMUNICATION PROGRAMME MEASUREMENT PROCESS Once the organization has an integrated marketing communication programme under way, it is necessary (as indicated in stage eight of the integrated marketing communication process) that the organization give it enough time to work before deciding whether it worked well or whether it failed. Yarbrough (1996:72) suggests that the organization should wait at least 18 months before measuring its success or failure. Schultz et al. (1994:114) suggest the contrary. These authors believe that the real value of integrated marketing communication is that the behavioural objective is set in advance and therefore the measurement system is built into the process of integrated marketing communication. Based on the Schultz et al. (1994) approach, the measurement process for integrated marketing communication is relatively uncomplicated. The organization attempts to measure behaviour that is as close to actual purchase behaviour as possible. The first rule of integrated marketing communication measurement (based on the continual measurement approach) is that a very broad view of communication must be taken. This, in itself, changes how the organization thinks about the measurement of communication effects, for it says that the tools to be used must most likely be different from those used in the past. In the following discussion, the focus will be on various approaches that are suggested for the measurement of an integrated marketing communication programme. 134

157 4.5.1 Two new measures in integrated marketing communication Traditionally, most advertising and marketing communication measures have attempted to isolate the communication message or technique and measure its effect. For example, a measurement is taken of a person's awareness, recall, or knowledge prior to the implementation of the communication programme. Then the communication message is delivered. Following this, another reading of awareness, recall or knowledge is taken. The premise is that the communication programme or the message was responsible for the awareness, knowledge or recall changes (Baldinger, 1996:271). While this is a somewhat standard research technique, it ignores two issues that are vital in measuring the effects of integrated marketing communication programmes. Therefore, Schultz et at (1994:116) suggest two new methods for measuring integrated marketing communication programmes Measurement over time Based on literature, there is little question that the marketplace is dynamic, as are the brand networks that customers create in their minds. Most traditional advertising and marketing communication research approaches measure only a single point in time, in other words when the communication was delivered or shortly thereafter (Coulson-Thomas, 1992:13). The real value of integrated marketing communication according to Schlossberg (1992:5) is the effect of a planned communication programme emanating from a database over time. Thus, firstly, there is a need to look at how the integrated marketing communication programmes impact on the behaviour of customers or prospects at several points in a given period. This means knowing the communication history of the customer or prospect in addition to knowing what messages the marketer delivered (Kitchen & Schultz, 2000:180). 135

158 Multidimensional measures One-way communication measurement techniques have traditionally been designed to measure only the effect or impact of that communication tool or the result that particular communication message had on attitudes and awareness (Barenblatt & Sinclair, 1996:111). Integrated marketing communication assumes that there will likely be multiple messages, some controlled and some uncontrolled (based on message typology), that will influence a customer's behaviour (Moriarty, 1994:38). Therefore, the second new measure is that the measurement of integrated marketing communication effects must be multidimensional (Schultz et at, 1994: ). Firstly, the behaviour of the customer and secondly, the communication to the customer must be measured. While this substantially complicates the measurement techniques and requirements, it is a critical step in truly understanding how integrated marketing communication might have impacted on the customer's behaviour (Schultz, 1994c:15) How not to evaluate an integrated marketing communication programme Katz and Lendrevie (1996:260) suggest three approaches that are not adequate for the measurement of integrated marketing communication programmes. These include the following: The partial approach According to Katz and Lendrevie (1996:260), this approach might be considered the traditional method of presenting an integrated marketing communication programme. This approach is based on the idea that most of the budget is set aside for traditional advertising, and the remaining spent on other communication methods, such as a promotion or direct mail efforts. The outcome for this is that 136

159 most of the attention is given to advertising, because most of the budget is spent here. Little or no effort is made to measure or evaluate any of the non-advertising tools because expenditures are relatively small and the task seems too difficult. The measurement of the non-advertising functions is then mostly focused on advertising and the "separated" functions, which is in direct contrast to the synergistic idea of integrated marketing communication (Watson, 1993:25-29) The global approach The standard measures applied in evaluating an advertising programme are transferred to the non-advertising tools in this approach to measure integrated marketing communication programmes. For all communication, indicators such as gross rating points (GRPs), cost per thousand (CPM), reach and frequency are adopted for the measurement of a contest or a press release. Although this seems to make sense because it puts everything onto a level turf, it is in reality highly impractical because the advertising measures do not necessarily apply elsewhere (Duncan & Moriarty, 1997:101). For example, how does the organization measure the total number of rating points for a media tour? Or what is the reach of a trade deal? The specific approach With this third measurement technique, each tool is evaluated according to the technique that is most appropriate for it (Katz & Lendrevie, 1996:261). Thus, a telemarketing campaign would be judged according to the number of those items sold. Again, this seems to make sense initially, except that there are well over 200 different, identifiable communication tools available, and the number continues to increase annually. In contrast with how not to evaluate an integrated marketing communication programme based on these three approaches, the proposed method for 137

160 measuring an integrated marketing communication programme will entail the following methods: Proposed integrated marketing communication measurement approach In contrast to the above-mentioned approaches to measurement, Katz and Lendrevie (1996), Schultz et a/. (1994) and Anon. (1989) propose the following approaches to divide total exposures of the organization into one of three types: media exposures, product impressions and personal contacts Media exposures These include all exposures to the brand's message that take place in traditional media (Kitchen & Schultz, 2000:74). They encompass not only advertising in traditional media such as TV, radio, newspapers or magazines, but also contain publicity generated in those media by public relations efforts (for example press releases and video news releases). They also include the media exposures in which sales promotions occur, such as coupons or rebates placed in Sunday newspapers (Smith, 1994:25) Product impressions As the name suggests, these are the target audience's exposures to the product itself. This occurs not only in the store but also in the home, at a dealership or on the street, among others (Katz & Lendrevie, 1996:261) Personal contacts Too often, the organization underestimates how important dealing with individuals can be in influencing brand selections. Many decisions end up being 138

161 based on conversations with others. When customers buy a car or a large appliance, they talk to several dealers. The customer might also talk to friends and see what they think of the brands available. In some instances, the customer might listen to the advice or commentary of opinion leaders, such as the doctor, in choosing an analgesic or the veterinarian in selecting the right dog food (Schultz et al, 1994:117). Duncan and Moriarty (1997:261) summarized all the approaches discussed above in two primary ways to evaluate to what extent an organization is practising integrated marketing communication. One is output control (Harris, 1998:269) and the second is process controls (Kitchen & Schultz, 2000:170). Both measures are needed if an organization wants to maximize its brand equity. Output controls are external measures of integrated marketing communication results such as awareness studies, tracking studies and customer satisfaction surveys (Duncan & Moriarty, 1997:261). One area of output controls that has not been monitored effectively, however, is relationship building, because it is difficult to track relationships and estimate their efficiency (Reich, 2000:1). However, Duncan and Moriarty (1997:263) suggest that the relationship metrics help explain sales and share trends, and have proved to be a basis for more accurate forecasting. The six metrics that organizations use most successfully are customer profitability, LTCV quintile analysis 4, recency index, referral index and share of customer (Duncan, 2001:752). Process controls are internal measures of how an organization is doing integrated marketing communication; they evaluate how programmes operate and function, and the attitudes and knowledge of those responsible for these programmes. Financial audits, time and motion studies, and corporate communication audits are examples of process controls. Process controls have 4 A sophisticated analysis of customer profitability, where customers are divided into five equal groups, based on their LTCV. Tracking the average profitability of each quintile with their corresponding LTCV provides a more in-depth analysis of the sources of revenue (Duncan & Moriarty, 1997:263). 139

162 4.6 BARRIERS TO INTEGRATED MARKETING COMMUNICATION Most organizations recognize the need for integrated marketing communication programmes, and do not question the value thereof. But once the organization decides to develop an integrated programme, most organizations find several barriers, both within and outside the organization. Schultz (1993a:16) states that although each organization is different, based on experience, most of the barriers to integration can be classified into the following categories: Ego and turf battles between individuals and departments Yarbrough (1996:69) states that most employees are reluctant to move to integration because they believe it will require them to give up some of the power and the prestige to which their present positions entitle them. Schultz (1993b:16) agrees with this statement and adds that some employees also think that integrated marketing communication will take away some of their often hard-won turf. Wightman (1999:19) and Kitchen and Schultz (2000:208) suggest that it might threaten the employees' perceived position in the organization and that even fewer managers want to give up any territory or position, for that is how they calculate their value to the organization Organizations think they are already integrated When the subject of integration is brought up, the primary response of employees is often that they are already integrated (Schultz, 1993b:16). For example, some people responsible for public relations in an organization, at the very least, confer with the human resources in the organization before releasing a new campaign. In this regard, Duncan and Moriarty (1997:29) state that beyond such limited, often perfunctory interaction (and often only when it is 141

163 deemed necessary), there is often no, or very limited, communication with regard to the overall communication objectives of an organization Absence of databases and accompanying technology to track and profile customers and other key stakeholders According to Gonring (1994:47), marketing technology exists to measure customer behaviour, but organizations have been slow to adopt it. Schultz et al. (1994:177) state that some industries struggle with database development more than others (e.g. packaged goods). However, according to Duncan and Moriarty (1997:29), everyone can follow the lead of financial services and direct mailers, many of which have become adept at identifying segments and sending them targeted messages Fear of change The disciplines in an organization must overcome their fear of surrendering control to a single planning system. Group performance measures help to change current power structures in the organization, because team members are representative of the entire organization, and when performance is measured at a group level, team members are likely to be concerned with the performance of the group. A key principle in measuring performance is that what is measured is what will be delivered. Thus, the performance measurement system should be in line with the required performance of the employee. This, in return, relates back to the need of cross-functional teams and cross-functional planning in the organization. 142

164 4.6.5 Short-term planning Integrated marketing communication works to influence customer behaviour over time. Short-term planning focused on new customer acquisitions weakens an organization's ability to build a loyal customer base Hierarchical organizations Integration demands cross-training in organizations, a process hindered by vertical structures (Gonring, 1994:47). Duncan and Everett (1993:32) suggest that a first step can be to form teams throughout the organization and create an opportunity for cross-functional assignments and advancement through acceptance of greater responsibility. Kitchen and Schultz (1999:30) agree and add that to collapse the number of salary ranges can also help to flatten organizational layers Cult of specialization Integration requires a broad view of the customer, the marketplace, competition and communication. Integrated marketing communication creates the need for a totally different way of thinking than the one to which most employees are accustomed, which is, according to Schultz (1993b:16), to be specialists. Integrated marketing communication creates the need for generalists and not specialists (Wightman, 1999:19) Decentralization Decentralisation in an organization can be a two-way sword with regard to integrated marketing communication. On the one side, according to Kitchen and Schultz (1999:30), there is a current trend of management to take decisionmaking down to the lowest possible level in the organization. This can prove 143

165 counter-productive to integratedmarketing communication, because it would be impossible to centralize control over decisions in the organization. On the other hand, there is a need for employees to be empowered and to be able to respond to customers and other stakeholders. This creates problems for the organization's communication programme, especially where employees do not possess the skills necessary to deal with customers. Furthermore, it is virtually impossible to maintain a single, integrated approach, while delegating decisionmaking powers to the lowest level Communication is seen as low in priority In many organizations, according to Schultz et al. (1994:162), their communications "are developed and implemented at the lowest levels, that is, by the most junior and inexperienced employees". Yarbrough (1996:69) agrees and adds that being at a low level in the organizational order implies that communication is not recognized as being important. By not being part of management means that the communication departments will not have the final say and suggestions are validated only by managers outside the communication field (Gonring, 1994:47) Lack of a core competency in communication Duncan and Moriarty (1997:29) propose that another barrier to integrated marketing communication in organizations is the lack of core competency in communication among those responsible for managing marketing and sales. This lack of proficiency of communication in the organization results further in disagreement on the marketing and marketing communication objectives of the organization. In return, this then also leads to a misunderstanding or lack of understanding among this department of the relative and changing importance of stakeholders (Duncan & Everett, 1993:32). 144

166 To this point, integrated marketing communication has been described as a solution to many of today's marketing problems. However, acceptance has not been as rapid. With many other innovative concepts, there is resistance to change. According to Gonring (1994:49), although these barriers to integration are a major challenge to the organization, they can also provide the opportunity for communication to gain prominence in the organization. This integrated approach will result in higher revenues, due to a more focused marketing communication strategy as well as curbing expenditure on marketing communication, given the synergies derived from an integrated approach. The revenue generation impacts positively on the top line of the company's income statement, while the combined effect of increased revenue and lower expenditure contributes to a healthier bottom line. 4.7 CONCLUSION The effect of the integrated marketing communication programme on the organization is a drive towards centralized planning, implementation and budgeting, in all its communication functions. This programme creates true accountability by maximizing resources and linking communication activities directly to organizational goals, thereby positively affecting the organization's income statement through increased effectiveness. The integrated marketing communication programme, which was the focal point of this chapter, is the advanced step in an organization's pursuit to greater integration. However, a basic understanding of the concept of integrated marketing communication as discussed in Chapter 2 must first be recognized. Then the three-dimensional organizational application of the concept of integrated marketing communication (as discussed in Chapter 3) must be achieved in an organization. Only when the former two prerequisites are fulfilled can implementation of the programme be considered. 145

167 The implementation of the integrated marketing communication programme is the pinnacle of integration as it achieves three-dimensional integration of communication. This implies the alignment of vertical and horizontal communication internally, while simultaneously aligning external communication. The integrated marketing communication programme is therefore a crucial tool in the organization's ongoing pursuit of superior "unity of effort" and customercentricity. One of the basic elements of integrated marketing communication, in order to attain a customer-centric organization, requires that all marketing communication functions be afforded equal consideration when the integrated marketing communication programme is developed. This implies that public relations is regarded on an equal footing with other communication functions, and not just as a technical support function, as is still the mind-set in many organizations. The public relations capacity to lend credibility to the messages of the organization makes it an invaluable marketing communication function to be considered when designing the integrated marketing communication programme. This role of public relations as a marketing communication function, within integrated marketing communication, is discussed in Chapter

168 CHAPTER 5 PUBLIC RELATIONS IN INTEGRATED MARKETING COMMUNICATION 5.1 INTRODUCTION The idea of the integration of communication in an organization causes communication professionals, accustomed to media advertising as the primary solution to all marketing communication problems, to take a fresh look at all the components of marketing and specifically to consider the unique dimension that public relations brings to integrated marketing communication. Public relations professionals are in turn, taking control of the opportunity that integration offers them, to make a difference where it counts most to organizations and clients on the bottom line. Recent surveys found not only general acceptance of the integrated marketing communication concept, but also close to common agreement that public relations plays an integral role in its success (Harris, 1998:5). Of all the different components of integrated marketing communication, public relations alone has a unique ingredient that is essential to every integrated marketing communication programme, which is the capacity to lend credibility to the product message of the organization. In the following chapter, the concept of public relations will firstly be defined. The discussion continues with an emphasis on the shift in focus in the sphere of public relations, from the traditional roles of public relations utilized in organizations to the new emphasis of public relations roles in organizations. Public relations provides the bridge to overcome the credibility gap in marketing communication. The new marketing perspective of public relations is then 147

169 explored, focusing on the overlap of marketing and public relations and then as a result the concept of marketing public relations. The way in which marketing public relations adds value to the integrated marketing communication approach is subsequently discussed. The role of public relations when it takes the lead in integrated marketing communication is explored, after which the focus will fall on the theoretical approaches of the integrated marketing communication message typology and the integrated marketing communication synergy approach. 5.2 PUBLIC RELATIONS DEFINED From its modem beginnings early in the 20th century, public relations has suffered an identity crisis largely of its own making (Steyn & Puth, 2000:3). In terms of both theory and practice, public relations has failed to arrive at a broadly accepted definition of itself (Skinner & Von Essen, 1999:20-23). A review of modern public relations' short history suggests a number of definitions of the field. Through the first two or three decades of the 20th century, "using communication to build and hold goodwill" was the dominant theme in public relations (Simon, 1980:8). A review of more recent public relations definitions in textbooks and academic literature suggests a number of common themes but not true convergence (Gordon, 1997:57-66). The most common definitional components appear to be "management", "organization" and "publics". A number of definitions are proposed for public relations, some of which are suggested by authority bodies of public relations. The Public Relations Institute of Southem Africa developed one such definition for public relations (PRISA, 2000:41): "Public relations is the management, through communication, of perceptions and strategic relationships between an organization and its internal and external stakeholders". 148

170 This definition and the following definition focus on the relation between an organization and its publics: "Public relations is the management function that identifies, establishes and maintains mutually beneficial relationships between an organization and the various publics on whom its success or failure depends" (Broom, Lauzen & Tucker, 1991:23). These definitions indicate that the task of the public relations function in an organization is to distinguish between the various relationships; to identify the important elements within the perceived and relevant relationships; to focus attention on them; and to effect mutual understanding by means of two-way communication. Furthermore, Caywood (1998:xi) suggests that public relations is the profitable integration of an organization's new and continuing relationships with stakeholders, including customers, by managing all communication contacts with the organization that create and protect the brand and reputation of the organization. This definition of public relations by Caywood (1998:xi) draws from the underlying principle of integrated marketing communication, in that it proposes profitable relationships with stakeholders that should be managed actively. Furthermore, both definitions focus on the integration of all contact points that the organization has with these stakeholders. From this comparison of the definitions of public relations and integrated marketing communication, it is evident that, with the development of integrated marketing communication, the field of public relations also took on a broader application than just building goodwill, as established in the early definitions of public relations. Emerging from the work of Caywood (1998:xi) is, therefore, an understanding of the role and definition of public relations that suggests that public relations provides a new level of leadership for management to integrate relationships both inside and outside an organization - using a wide range of management strategies and tactics including communication. By integrating relationships into the 149

171 organization, it moves towards the outside-in approach of integrated marketing communication (discussed in section 2.5 in Chapter 2). Therefore, the power of public relations is in its ability to relate and develop productive relationships with other business functions and with multiple stakeholders. The value of the public relations contribution in the concept of integrated marketing communication emerges from the self-defined role of public relations of building "relations" or integrating relationships between an organization and its publics. This definition proposed by Caywood (1998:xi) will be used as the definition for public relations for the purpose of this study. When using the term public relations, it is important to note that, according to a. survey among Fortune 500 companies in the USA (Budd, 1995: ), there is a definite trend to replace the term public relations with corporate communication. The reason for this trend is that the term 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. In academic literature, however, the term public relations is still in widespread use, as indicated by the titles of the six textbooks most often prescribed in tertiary education in the USA (Wright, 1995:11-17). Steyn and Puth (2000:3) state that the body of knowledge in this field is also referred to as public relations. For the purpose of this study, the term public relations will be used for the reason that the field of public relations here refers to public relations as one of the marketing communication functions, used within the integrated marketing communication context. 150

172 organization, it moves towards the outside-in approach of integrated marketing communication (discussed in section 2.5 in Chapter 2). Therefore, the power of public relations is in its ability to relate and develop productive relationships with other business functions and with multiple stakeholders. The value of the public relations contribution in the concept of integrated marketing communication emerges from the self-defined role of public relations of building "relations" or integrating relationships between an organization and its publics. This definition proposed by Caywood (1998:xi) will be used as the definition for public relations for the purpose of this study. When using the term public relations, it is important to note that, according to a survey among Fortune 500 companies in the USA (Budd, 1995: ), there is a definite trend to replace the term public relations with corporate communication. The reason for this trend is that the term 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. In academic literature, however, the term public relations is still in widespread use, as indicated by the titles of the six textbooks most often prescribed in tertiary education in the USA (Wright, 1995:11-17). Steyn and Puth (2000:3) state that the body of knowledge in this field is also referred to as public relations. For the purpose of this study, the term public relations will be used for the reason that the field of public relations here refers to public relations as one of the marketing communication functions, used within the integrated marketing communication context. 150

173 When referring to public relations as one of the marketing communication functions, public relations then usually falls into the marketing or management communication departments in organizations that deal with the public issues encountered by organizations (Semenik, 2002:453). From the definitions of public relations, it is therefore evident that, with the evolution of the field of public relations, the emphasis of public relations has shifted in organizations. This shift in the field of public relations is discussed below. 5.3 A SHIFT IN FOCUS IN THE FIELD OF PUBLIC RELATIONS As is evident from early definitions of public relations, the field is traditionally viewed as an organizational activity involved with fostering goodwill between an organization and its various publics (Skinner & Von Essen, 1999:4). In this approach to public relations, public relations activities do not involve marketing per se but rather deal with general management concerns. Public relations, according to this traditional approach, generally focuses on the interactions with employees, stockholders, labour groups, citizen action groups and suppliers as part of the organization's general, non-marketing public. relations (Kitchen & Papsolomou, 1997:74). However, marketers have awakened to the fact that public relations can help reposition products, revitalize old ones, open new markets and strengthen the advertising claims. The goal of public relations today is not only to gain publicity (as used in the traditional approach to public relations), but also to win market share strategically (Kitchen & Schultz, 1999:340). This link between public relations and marketing is not new and has existed since at least the turn of the 20 th century (Kleiner, 1989:22). Public relations has always held a major attraction for clients, because of the credibility attached to information that has been examined by the reporters. Whenever a news release or case history is read, there is an implied third party endorsement by the media, 151

174 which adds the credibility to the message. The increasing complexity of modern society, the increased power of public opinion and the growing insight into what motivates individuals and groups, have all given a new status to public relations as a function of marketing communication (Mazur, 1994:3). According to Nakra (1991:42), today's sophisticated customers "no longer believe they will receive 100% of what they have been promised" with the advertising message. But they still "tend to believe what they read in newspapers and magazines or see or hear on television or radio, when presented as news or featured as a gospel truth". Many people who traditionally viewed public relations as a "step child" (Nakra, 1991:43), a "parasite of the press" (Gray, 1998:27) or "curse of our times" (Trudel, 1991:19) are beginning to give a new direction to their attitude towards this powerful function of marketing communication. The most important factor in the shift in focus in public relations is the increasing acceptance of public relations by clients (Brody, 1992:351). Trudel (1991:19) agrees with the above and adds that many people who have viewed public relations as little more than copywriting (in other words as the traditional technical function) seem to be changing their attitudes. Duncan and Everett (1993:32) propose that many public relations professionals give the credit for such a shift in focus to one product Tylenol. In this case study, in 1982, seven people in the Chicago area in the USA died after taking Extra Strength Tylenol capsules that had been laced with cyanide (after they reached the store). Within a week of the poisonings, Tylenol's market share fell from 35 to only 6.5 per cent. Strong public relations efforts combined with an already strong product and corporate image helped the product recover (Belch & Belch, 2001:590). Much of the credit for the successful public relations programme went to Johnson & Johnson's chief executive James Burke, and other top executives who decided to deal with the sabotage threat of their product. The organization recalled all Tylenols, did extensive investigations on the matter and developed tamper-proof packaging for their product. Kleiner (1989:23) proposes that all these public relations activities did more than save 152

175 the brand. Duncan and Moriarty (1998:17) agree and add that this enhanced "the credibility of public relations as a tool to affect sales directly". Another factor that has been responsible for the increase in public relations was the advent of technology for distributing broadcasting programmes (Verwey, 2000:63). With the availability of satellite press conferences and the Internet (Finn, 1988:15); it is now possible to link the conference by video or the Internet (Stanton, 1994:46), which eliminates the need for travel (Wilcox et al, 2000:453). Through the efforts such as those explained above, organizations are able to capture the imaginations of large segments of communities. The marketing executives begin to look at public relations executives as enthusiastic partners in the programmes that are mutually beneficial to both marketing and public relations objectives. Traditionally, public relations has thus been used to produce a desired corporate image through what might be termed "corporate image engineering" (Duncan, 2001:542). The efforts have been directed at promoting "homogeneous relations with various publics: customers, employees, suppliers, stockholders, government, general public, labour groups and citizen action groups" (Shimp, 1990:486). This general shift in the focus of public relations has also caused a change in the role of public relations in organizations. Traditionally, the roles of public relations were described according to four roles. In the new approach to public relations, the focus of these roles also shifted. The four roles and the new emphasis of the roles are discussed below. 153

176 5.3.1 The traditional roles of public relations Steyn and Puth (2000:14) propose that an individual's behaviour may best be understood as the function of a role. In an organizational situation, the concept of role refers to the standardized patterns of behaviour required of individuals in specific functional relationships, i.e. their everyday activities (Katz & Kahn, 1978:34). Dozier (1992:7) defines roles as follows: "Roles are at the nexus of a network of concepts affecting professional achievements of practitioners, structures and processes of the function in organizations, and organizational capacities to dominate or co-operate with their environments". Broom and Smith (1979:48) introduced the concept of roles to public relations conceptualizing four theoretical roles: expert prescriber, communication facilitator, problem-solving process facilitator and public relations/communication technician. Each role will be discussed in more detail below. Expert prescriber The expert prescriber is seen as the authority on both public relations problems and solutions (Cutlip et al. 1994:42), best informed about communication issues and best qualified to answer communication questions (Steyn & Puth, 2000:15). In this role, the public relations professional researches, defines communication problems, develops programmes, and takes responsibility for implementing the programmes. According to Cutlip et al. (1994:42), the expert prescriber role leads to passive management involvement that frustrates public relations professionals. They are held responsible for programme results while having little control over critical parts of the programme. 154

177 Communication facilitator The communication facilitator is a mediator, interpreter or communication link between management and the stakeholders of the organization. In this role, public relations professionals are sensitive listeners and information brokers who remove barriers in relationships between the organization and its stakeholders. Communication facilitators are boundary spanners who improve the quality of decisions that are associated with policies, procedures and actions of both stakeholders and the organization. They are liaisons who keep incessant twoway communication flowing between the organization and its stakeholders (Cutlip et al 1994:42). Problem-solving process facilitator The problem-solving process facilitator is a public relations professional who helps others in the organization to solve their public relations problems. These public relations professionals work with top management in defining and solving communication problems, becoming part of the strategic management team (Steyn & Puth, 2000:15). This role is therefore in contrast with the passive expert prescriber, functioning in a two-way symmetrical manner. Communication technician Public relations professionals in the role of technician do not contribute to management decision-making, but perform the low-level technicalities of generating communication products that implement the policy decisions made by others. Top management make strategic decisions, specify actions and assign the communication focused on the stakeholders. Technicians present the communication and journalistic skills (writing, editing, audio visual production, ' graphics and production of messages) needed to carry out communication 155

178 programmes, and do not conduct research to plan or evaluate work (Cutlip, et al. 1994:42). When these four theoretical roles were measured empirically among public relations professionals in numerous studies in the 1980s, only two empirical roles emerged, in other words, public relations professionals could not differentiate between these four roles in practice, but only between two (Steyn & Puth, 2000:16): the manager role and the technician role. The first three roles (expert prescriber, communication facilitator and problemsolving process facilitator) are therefore interchangeable, conceptual components of the same empirical role the public relations manager role. Practitioners in the manager role were found to make communication policy decisions and are concerned with all communication decision-making. They commonly benefit from research to plan and evaluate their work and counsel management (Grunig & Hunt, 1984:43). They are held answerable for communication programme results. They view themselves and are viewed by others in the organization as communication experts. They facilitate communication between publics and management, and direct management through a process of solving problems in relationships with stakeholders. Public relations professionals in the manager role conceptualize and direct communication programmes (Grunig, 1992:24) A shifting emphasis in the role of public relations According to Grunig and Hunt (1984:44), the manager and technician.roles are uncorrelated, indicating that they are unlikely to be played by the same person in an organization. These two roles of manager and technician have been the cornerstone of the roles theory in the field of public relations for the past 20 years. However, recent roles research by Stroh and Leonard (1999) in the South 156

179 African environment indicates that organizations now expect three roles from public relations professionals the role of strategist, the role of manager and the role of technician. This new role of the most senior public relations professional consists of monitoring relevant environmental developments and anticipating their consequences for the organization's policies and strategies, especially with regard to relationships with stakeholders. This idea of public relations monitoring the environment can be seen as a reinforcement of the outside-in approach of an organization, starting with the customer (the environment) and then working back to the organization (Schultz, 1993a:12), based on these external factors. Additionally, this new role of public relations emphasizes relationships with stakeholders, which is direct in line with the underlying principle of integrated marketing communication of building relationships with the organization's profitable stakeholders (Duncan, 2001:7) and further also the underlying principle of relationship marketing (Peppers et al., 1994:42). Additionally, this new role of public relations professionals is the information gathering and processing role of the communication facilitator, being part of the strategy formulation team that adapts the organization to the future (Cutlip et al., 1994:42). It constitutes public relations' inputs into the organization's strategic decision-making process, resulting in a contribution towards organizational strategy. From an integrated marketing communication perspective, this notion of organizational strategy is in line with the principle of integrated marketing communication, in that this approach is a contribution to the greater well-being of the organization (Shimp, 2002:xi). Moreover, from a public relations viewpoint, positioning public relations in a strategic position in the organization. The strategist role is played at the macro or top management level of an organization: constituting a strategic role for the most senior public relations professional responsible for the public relations function (Steyn & Puth, 2000:16). 157

180 From a public relations role perspective, organizations cannot achieve communication excellence without public relations professionals playing the technician role. However, by itself, technician role-playing does not contribute towards organizational effectiveness, nor does it satisfy the expectations that top management have of the public relations function (Grunig & Hunt, 1984:44). Based on these roles of public relations, there appears to be a sudden corporate discovery of the effectiveness of public relations in helping to market a product, service or cause (Cushman, 1988:10). Based on the shift in the focus of public relations, it is evident that there is not only an increased recognition of public relations, but an increased necessity for public relations. Effective public relations is not the single answer for an organization. On the contrary, in combination with other communication functions - e.g. advertising, personal selling and sales promotions public relations can be the platform on which brand identity is built, the customer is persuaded to buy (Broom et at, 1991:222) and credibility is established (Nucifora, 2000:11). 5.4 THE NEED FOR CREDIBILITY The importance of the credibility factor is underscored.by a survey of brand managers and marketing directors surveyed in Two thirds of the respondents said that they believed that public relations is as important or more important than advertising in building brand awareness. But four fifths of them believed that public relations is more important than advertising in building brand credibility. The increasing fragmentation of the traditional mass media, the growing customer sophistication and the rising cost of advertising have made public relations the key part of the integrated marketing communication mix (DDB Needham study in Harris, 1998:14). The credibility of public relations is needed to reach today's increasingly sceptical customers because they are finding advertising messages less credible. Kotler 158

181 (1991:v) offers the following explanation for the increasing importance of public relations in marketing communication: In an over communicated society, customers develop communication avoidance routines. They don't print ads; they tune out commercial messages. Message senders are finding it increasingly difficult to reach the minds and hearts of target customers. As mass advertising and even target advertising lose some of their cost-effectiveness, message senders are driven to other media. They discover, or rediscover, the power of news, events, community programmes, atmospheres, and other powerful communication modalities. Sooner or later they discover marketing public relations. Schultz et a/. (1994:84-85) agree with the above and state that, "You cannot depend on the product alone to build customer confidence. It's the rapport, the empathy, the dialogue, the relationship, the communication you establish with the customer that makes the difference. They separate you from the pack". This further highlights the critical role of public relations in marketing success. Building relations is what public relations is fundamentally about as proposed by the definition of public relations. According to Pollack (1996:3), communication professionals are seeking to create a brand experience with customers on a personal level by "mixing up a cocktail of paid advertising, public relations, sampling, direct marketing, and more. The aim: to bring customers not just an awareness of a brand but an actual- or virtual-experience of it." Pollack (1996:3) labelled this hybrid of established disciplines "the PR experience". According to Dilenschneider (1996:xxvii), the new integrated marketing communication mix puts to work jointly the tools of marketing and public relations, and labels public relations as "the glue that holds the whole thing together". Ellsworth (2000:14) cites the reasons why marketers are increasingly using public relations to promote products or services of the organization: The need to reduce costs. Global competition is putting pricing pressure on organizations. This means that costs have to be cut. Marketing 159

182 departments are motivated to search for less-expensive ways to get results. Fragmentation of the media. Marketing niches have replaced the mass market. To reach as many people as in the 1950s and 1960s, marketers have to use a variety of tools. Clutter of commercial messages. The challenge to break through the clutter and have the message noticed has left the door wide open for creative public relations. Increased competition. Public relations can get customers to the organization and not the competition by paving the way for the introduction, consumption or repositioning of a product or service. As the marketplace becomes more competitive, more cluttered, more fragmented and more expensive to compete in, organizations are demanding that marketing departments make the most of all their resources (Brody, 1994:21). With the ability to build goodwill through credible objective sources, raise customer awareness, educate key audiences and directly involve audiences with an organization's product, public relations can give the communication professional an extra edge in achieving objectives. Public relations as a value-added discipline can play several roles in integrated marketing communication. Public relations can leverage marketing investments, making advertising and promotions more profitably. It can help build trademark and brand equities with customers. It can help an organization define its place in the marketplace and strategically position the organization with key stakeholders. It can also help facilitate communication and gain acceptance for an organization's marketing communication strategy from customers who sell the products of the organization to the end customer (Harris, 1998:16). Although there is a trend towards recognising public relations in the integrated. marketing communication mix, there is still uncertainty towards public relations functions compared to marketing. 160

183 5.5 THE MARKETING PERSPECTIVE OF PUBLIC RELATIONS Various writers (Bernstein, 1988:59; Gage, 1981:10-11; Kreitzman, 1986:43-46) traditionally pointed to the use of public relations for marketing purposes, or its relevance to marketing communication. White (1991), for example, supports the view that public relations is part of marketing and serves as an aid to customer relations. When marketers considered options for marketing communication, public relations was traditionally bracketed with advertising and other forms of general marketing communication purposes. Kotler (1988:665) described public relations as "another important communication/promotion tool". He also stated that public relations has been the least utilized communication function, but it has a great potential for building awareness and preference in the marketplace, repositioning products, and defending them. From a marketing perspective, public relations is taking on a more strategic, marketing-oriented approach. Kitchen (1999) acknowledges this idea in stating that "while public relations undoubtedly can be, and is used for promotional purposes, its real role extends to establishing 'understanding' between an organization and those publics that have either a potential or actual interest in it". According to Lancaster and Massingham (1988: ), various arguments and academic debate have arisen from the fact that even though many organizations consider and implement 'publicity' as part of the overall marketing activity. In such an approach, a separate public relations department are not considered, which can coordinate the various promotional activities that fall under the public relations label, and have as an aim to build trust and understanding through open communication. In contrast to this approach, Cohen (1991: ) classifies public relations alongside advertising and promotion. To Cohen (1991), the main objective of advertising and publicity is to make the product or service known to potential buyers and present it in the most favourable way, which reflects the tendency to 161

184 label public relations as 'publicity'. This view does not take into consideration the fact that public relations may have a different role to fulfil apart from creating awareness, i.e. in considering the case of new product development. Public relations can, however, perform a distinctive supportive role over and above the one performed by advertising and promotion. This will depend on the specific programme as suggested by the notion of integrated marketing communication that all functions must be integrated to come to the optimum usage for a specific programme. Additionally, there is however a tendency found in the marketing management literature of attempts made to assign public relations to an inferior technical role under the control of marketing (Grunig, 1992: ). Specifically, Shimp and Delozier (1986: ) saw public relations and publicity essentially as activities that "serve to supplement media advertising, sales and sales promotion in creating product awareness, building favourable attitudes toward the company and its products, and encouraging purchase behaviour". Schwartz (1982:15) argued that public relations is but another form of "customer-oriented sales promotion" with a mission to build or shape the 'image' of a business in its support of sales promotion efforts under the control of marketing. McDaniel (1979:455), in turn, asserted that "public relations is a vital link in a progressive company's marketing communication mix" and that "public relations complement the role of advertising by building product/service credibility". However, efforts to bring public relations under the control of marketing management make no reference to any empirical or conceptual base to support this opinion (Grunig, 1992:378). Generally, what Kitchen (1999:344) refers to as a "naïve marketing perspective of public relations" promotes a reductionistic view of public relations that clearly implies the efforts of many marketing authors to bring the public relations activity under the control of marketing management, diminishing the public relations discipline into a tactical function. 162

185 The marketing perspective of public relations suggests that public relations be incorporated as an extra element within the marketing/marketing communication approach in order to achieve marketing objectives and, subsequently, corporate goals. In this view, marketing is seen as the dominant communication function, whereas public relations can be seen merely as a marketing communication function. According to Kitchen (1999:345), this "unsophisticated acceptance" of marketing dominance ignores the volatile and hostile environment in which organizations function. Furthermore, subsuming public relations in this way also ignores the fact that non-marketing problems cannot be solved by marketing management methods and techniques. This means that public relations extends beyond marketing, without decrying marketing's dominant role in creating exchanges. Thus public relations according to Kitchen (1999:345) can be seen as a corrective and complement to marketing in many circumstances. As the argument has indicated, even though marketing and public relations are independent, they are also interdependent and interrelated disciplines. As Kotler (1989:1-11) suggests, each discipline encloses a distinct set of independent activities, i.e. marketing is responsible for market assessment and public relations is responsible for relationships. At the same time, some public relations activities are shared by both disciplines (Harris, 1993:8). 5.6 THE OVERLAP OF MARKETING AND PUBLIC RELATIONS Along with the blurring of publics and markets, there is a crossover between the communicative tools of marketing and public relations. The strategies and tools of marketing communication are entering into public relations. Public relations professionals are, according to Kotler and Mindak (1978:19), realizing that "the best way to solve a public relations problem might be through the disciplined orientation that marketing provides". 163

186 Marketers are resorting to public relations tools. Walt Disney relied mostly on public relations activities in their marketing up to the mid-1980s (Grover, 1991:23). Most marketing textbooks mention publicity only briefly and note that the expertise on these tools is usually found in public relations departments. Marketing textbooks treat public relations as a set of tactical tools rather than a strategy (Nucifora, 2000:11). There has however, been a recent increase in literature explicitly dealing with the usage of public relations tools for marketing purposes. Clearly, the boundaries between marketing communication and public relations are fading away. Public relations is evolving from a press agentry/publicity role into a managerial communication function. Similarly, marketing is evolving from a sales function to a strategic marketing management discipline. Because these definitions of the two disciplines are broadening, the distinction between them is blurring (Dilenschneider, 1991:227). Public relations professionals are addressing markets, and marketers are addressing publics. Marketing communication tools have become a subset of public relations, and public relations tools have become a subset of marketing communication. The strictly distinguished division of marketing communication and public relations has more historical than operational value (Grunig & Grunig, 1991: ). According to Fletcher (1998:22) and McArthur and Griffin (1997:23), there are new responsibilities that have been established for public relations in an increasing number of marketing-oriented organizations. These responsibilities take on a much broader (and more marketing-oriented) perspective, designed to promote the organization as well as its products and/or services. Furthermore, Belch and Belch (2001: ) demonstrate four relationships that marketing and public relations can assume in an organization. These relationships are defined by the degree of use of each function. 164

187 "Class one relationships" are characterized by a minimal use of either function. Organizations with this design typically have very small marketing and/or public relations budgets and devote little time and effort to them. Small social service agencies and non-profit organizations are typically "class one". Organizations characterized by a "class two relationship" have a wellestablished public relations function but do very little in the way of formal marketing. Educational institutions and hospitals typically have such a design, although in both cases marketing activities are increasing. Both these groups have moved in the direction of class four organizations in recent years, though public relations activities still dominate. Many small organizations are typified by a "class three organization", in which marketing dominates and the public relations function is minimal. Private organizations (without stockholders) and small manufacturers with little or no public to satisfy, employ this design. "Class four organizations" have both strong marketing and strong public relations. These two departments often operate independently. Both groups may work together at times, and both report to top management. These four classes of marketing and public relations are shown in figure 5.1 below. PUBLIC RELATIONS Figure 5.1 Four classes of marketing and public relations use 165

188 The new role of public relations might best be characterised as class four, according to Belch and Belch (2001:578), although with a slightly different relationship. Rather than each department operating independently, the two now work closely together, to provide the best overall image of the organization and its product or service offering. Public relations departments increasingly position themselves as a tool to supplant and support traditional advertising and marketing efforts and as a key part of the integrated marketing communication programme (Curry, 1991:18). In some organization, turf battles and philosophical differences between marketing and public relations have been referred to by some in public relations as "marketing imperialism" (Duncan, 2001:545). This term reflects the views of some public relations managers who fear that, in an integrated marketing communication programme, public relations might be made subordinate to marketing (Harris, 1993:13). According to Shimp (2002:613), this idea seems to be decreasing, although it can still be found in some organizations. Marketing managers have a bottom-line responsibility and have to produce market share and sales, which is a different type of bottom-line responsibility than managing an organization's stakeholder communication (Grunig & Grunig, 1991:23). However, with the new marketing-oriented approach of public relations, one of its goals, as explained in section 5.3, is also to win market share strategically, and therefore to be accountable with a quantifiable result. This tension between the marketing and public relations objectives is one of the reasons why integrated marketing communication has become so important (Duncan, 2001:545). Its emphasis on cross-functional management provides a structure for coordinating these activities without the threat of imperialism from either functional area. Given the broader responsibilities of public relations; the issue is how to integrate it into the integrated marketing communication approach of the organization. 166

189 Kotler and Mindak (1978:15) suggest a number of alternative organizational designs in order to achieve this: Either marketing or public relations can be the dominant function; Both can be equal but separate functions; or The two can perform the same roles. From an integrated marketing communication perspective, the second suggestion would be most suitable. Based on the second suggestion, although all functions in integrated marketing communication has an equal opportunity to be part of the integrated marketing communication process, the functions cannot function separately. This will then limit cross-functional planning in the organization. Therefore, public relations is considered as an element in the marketing communication functioning. Additionally, based on the shifted focus of public relations with a marketing-oriented approach, the key component of this new marketing perspective of public relations is contained in the field of marketing public relations. 5.7 MARKETING PUBLIC RELATIONS Harris (1993:13) has referred to public relations activities designed to support marketing objectives as marketing public relations functions. Marketing public relations is defined by Duncan (2001:543) as "the use of non-paid media to deliver positive brand information designed to positively influence customers and prospects". Harris (1991:12) proposes that marketing public relations has evolved into a distinct discipline, and defines marketing public relations as follows: Marketing public relations is the process of planning, executing, and evaluating programmes that encourage purchase and customer satisfaction thiough credible communication of 167

190 information and impressions that identify companies and their products with the needs, wants, concerns and interests of customers. While traditional public relations focuses on a full range of stakeholder relationship programmes, marketing public relations focuses more on customers and prospects, complementing other marketing efforts. As a result of the increasing emphasis on marketing communication in organizations, a major part of the income of many public relations firms' comes from brand public relations activities. Harris (1998:16) has estimated that brandrelated public relations is the fastest-growing segment in the public relations industry. More specifically, the author estimates that up to 70 per cent of the revenue of public relations firms comes from marketing-related business. In general, marketing public relations is used to build brand credibility, make product news announcements, and reach hard-to-reach target audiences with articles in special interest and trade publications. It is particularly useful in launching new products. In an integrated marketing communication programme, monitoring and influencing unplanned messages (to be discussed in section 10.4) is an important responsibility of public relations. From a public relations point of view, with the growing interest in relationship marketing in practice as well as academic environments, two-way interactivity and integrated marketing communication, organizations are beginning to learn more about relationship management within the public relations context. Grunig and White (1992:31) explain that this public relations worldview is "symmetrical" (i.e. uses two-way communication), is idealistic about relationships, and is managerial focused. This is in contrast to the traditional product-and-sales focused worldview that relies primarily on one-way communication sent from a marketing communication department to customers. To create more symmetrical relationships, public relations communication must also become more datadriven. Moriarty (1994:41) describes this notion as follows: 168

191 cc As PR people become more proficient with databases and interactive technologies, two-way communication with stakeholders will continue to increase. As it does, there will need to be some serious creative thinking about what it means to participate in communication initiated by a wide range of stakeholders. As the increased spending on marketing public relations demonstrates, it is playing an increasingly important role in helping organizations meet integrated marketing communication objectives. The types of integrated marketing communication objectives that marketing public relations is especially good at helping to meet are discussed below Marketing public relations adds value to integrated marketing communication Marketing public relations adds value to the integrated marketing communication of an organization in a number of ways: Building marketplace excitement before media advertising breaks The announcement of a new product, for example, is an opportunity for the marketer to obtain publicity and dramatize the product, thereby increasing the effectiveness of advertising (Belch & Belch, 2001:578). For example, a public relations programme was created to build excitement about Jurassic Park. More than stories about the film appeared in the print and broadcast media a month before the event in the United States, making it a must-see event and, at the time, the most successful film ever released. Introducing a product with little or no advertising. 169

192 Crayola has used this approach to its advantage. When Binney & Smith, makers of Crayola crayons, announced the addition of eight child-tested, bold and bright colours to replace some of the old colours, the organization had no funds available for advertising and decided to rely on public relations. The public relations programme, which included an event enshrining the old colours in the Crayola Hall of Fame, attracted unanticipated negative attention in the print and broadcast media. The crayon maker called in the press to announce the return of the old eight in a special Collector's Edition. Furthermore, to bring the attention to sixteen new colours being introduced, the organization sponsored a national contest to determine the new crayons' names, and conducted a poll to determine the top crayon colours of all time among celebrities. By introducing the new range of crayons in such a manner, they made the non-reliance on advertising possible (Harris, 1998:70-74). Providing a value-added customer service Organizations use public relations to provide customers with helpful ideas, information and answers concerning their products and services. By earning a reputation as the customer's friend, they have been able to create a climate of acceptance for their products and services (Belch & Belch, 2001:579). This concept is particularly important in integrated marketing communication and in today's marketplace since it costs far less to keep a customer than to find a new one. This concept further refers to the shift from the idea of trademark to the idea of trustmark. The need for a trustmark is especially important with regard to transactors using the Internet, as many people are still sceptical about safely transacting over the Internet, given the risk of fraud. Value-added customer services can therefore separate the organization from its competition by building relationships, brand equity and store traffic. Demonstrating social responsibility and building customer trust 170

193 Marketing public relations is uniquely qualified to meld the corporate interest to the public interest (Belch & Belch, 2001:579). Today, customers want to do business with organizations that share their social concerns. These programmes of organizations are designed to win support by identifying organizations and brands with causes customers care about. According to Popcorn (1992:37), "It used to be enough to make a fairly decent product and market it, but not anymore. In the 1990s, the customer will want to know who you are before buying what you sell". Furthermore, the author states that organizations must form relationships with their customers based on trust, and organizations that do good and are good will inspire trust. This is what Popcorn (1992:37) refers to as "marketing the corporate soul" or what Klein (1999:441) refers to as brand citizenship, which is that the brand, just as organizations must take responsibility to govern itself. An example of poor brand citizenship is that of Nike using child labour in Indonesia thereby projecting a weak social ethic, which undermines its perceived integrity, and ultimately negates its mandate to govern itself. When customers make purchase decisions, they are deciding to buy two things, namely the product and the organization. People want to do business with organizations they know and trust. This trust is earned by being accessible and responsive to customers and by sponsoring activities and identifying with causes popular with customers Defending products at risk Marketing public relations can help the organization to build its brand, whereas traditional public relations tended to defend the brands of organizations (Caywood, 1998:103). Today, customer-buying decisions are increasingly impacted by public issues and by the words and actions of influential audiences. Most issues affecting this context are environment related, nutrition related, safety related, crisis related or corporate behaviour related, for example, a Pepsi- Cola case study, where it was claimed that a syringe was found in a can of Diet Pepsi. News accounts of tamperings begin to surface in the media. The 171

194 Associated Press in the United States surveyed its newspaper clients and found 50 reports of tampering in 23 states. The organization responded with a very effective public relations effort in which it flighted a live video transmission of its high-speed production process, showing how the empty cans are turned upside down, blasted with hot water and air, inverted, filled and sealed. All this happened in nine tenths of a second and effectively demonstrated that it is not possible to tamper with the product in such a controlled, high-speed process. The transmission was seen by more than 185 million viewers. Production photographs and pictorial flow charts provided by Pepsi were placed in key print media. Pepsi finished off the campaign with advertisements in 200 local newspapers thanking its millions of customers for standing by the organization, with the headline: "Pepsi is pleased to announce...nothing" (Harris, 1998: ). Making advertising news Today, customers are constantly bombarded by an exceptional number of advertising messages. Commercials of organizations must fight for the attention of their audiences. According to Kitchen (1999:353), there are two ways to gain attention. The first is to create advertising and spend money to make sure that the advertisement reaches the target customers. The second is to use public relations to maintain interest in the advertising. Some of the biggest advertising budgets are for long-time leading brands (Harris, 1998:95). When there is no product news to report, organizations make the advertising the news. Dusenberry (as quoted in Caywood, 1998:98) states that: "When you get this type of publicity, it's like somebody coming along and handing you a whole pile of money you didn't have. The advertising takes on more value because it's being mentioned in a non-advertising context". Famina (as quoted in Harris, 1998:96) agrees with this statement and states "in many ways, the public relations overshadows the ads". Furthermore, he states that advertisements should be more than just advertisements and that there should be public relations 172

195 opportunities every time an advertisement is produced. Nike and McDonald's build anticipation for coverage by providing sneak previews in the media. Typically, the video packages include outtakes from the making of the commercials and interviews with the organization spokespersons and celebrities who appear in the commercials. Building person-to-person relationships with customers From the previous chapters, it has been established that the very definition of marketing has changed and that there is a shift from transaction-based marketing, where the exchange or sale is the end, to relationship-based marketing, where the goal is to create a lifetime customer. The reason for this is because it is more cost-effective to keep an existing customer than to create a new one. Light and Mullen (1996:39) point out that "in category after category, a small share of loyal brand users account for an extraordinary share of a brand's profits". Furthermore, the authors add that a loyal customer can be nine times as profitable as a disloyal one who switches brands. For this reason, some organizations have become familiar brands by providing customers with helpful ideas, information and answers, and in effect creating and improving the trust of the customer. For example, Discovery Health hotline, a public relations initiative, provides members with basic health care answers. By earning a reputation as the customer's friend through public relations, they have been able to create a climate of acceptance for the organization. Integrated marketing communication takes this idea of relationships with publics even further, moving from customers to individuals or in public relations terms from publics to people. This thinking has been facilitated by the increasing sophisticated use of databases to identify customers whose loyalty organizations want to maintain or specific prospective customers qualified by their previous buying or lifestyle behaviour. 173

196 Making promotion news when there is no product news With a larger piece of the marketing portion in organizations moving from advertising to promotion (Harris, 1998:105), it follows that public relations should be used to gain higher visibility for major promotions in the same way that it is used to support advertising campaigns. For example, when McDonald's launched a promotion in celebration of the 25th anniversary of the Big Mac hamburger, the organization effectively used public relations to generate customer excitement about the hamburger. The story generated more than three hours of. airtime, including interviews with the McDonald's owner-operator who invented the Big Mac hamburger. McDonald's Research shows that generated publicity increased awareness of Big Mac's anniversary prior to the promotion. That promotion translated into a 13 per cent increase in Big Mac sales during the three-day publicity period that preceded the advertising. Influencing the influential stakeholders While customer audiences are often the targets of public relations efforts, marketing public relations programmes are also frequently targeted at opinion leaders who play important roles in influencing customer attitudes and actions. According to Anon. (1995:14), 10 per cent of the population who are the most influential spread the message to the other 90 per cent. Marketing public relations has recognized the importance of reaching influential stakeholders by word of mouth and word of media. Positioning the organization's brand 174

197 Positioning is at the heart of every successful integrated marketing communication programme (Harris, 1998:27). It is the guidepost for the development of integrated marketing communication programmes in which communication messages are cohesive, cumulative and mutually reinforcing. Positioning is further the way in which organizations and brands are perceived by customers relative to competition. Weiner (1996:469) defines positioning as "the creation of a distinct identity, image or concept for a product or service via advertising, public relations or other techniques. The arrangement of a product, service or other entity in its marketplace or other arena in relation to the audience can determine how well it will sell". Positioning has become so central to business that Trout and Martin (1996:147) state "a highly attractive industry may still not earn satisfactory profits if it has chosen a poor competitive positioning". Marketing public relations that exists to build relationships between customers, organizations and brands is therefore a key element in the positioning process. In contrast to these ways in which marketing public relations can add value to the organization, Belch and Belch (2001:580) note, however, that there are also disadvantages to using marketing public relations, which include: There is a lack of control over the media. It is difficult to tie in slogans and other advertising devices. Media time and space are not guaranteed. There are no standard effectiveness measures. One of the major threats expressed by Harris (1993:18) is that marketing public relations may lead to public relations' becoming subservient to marketing a concern expressed by many opponents of marketing public relations. However, according to Belch and Belch (2001:580), if employed properly and used in conjunction with other traditional public relations practices as well as integrated marketing communication, marketing public relations can continue to be used effectively. 175

198 In public relations in a broader sense, most measurement consists of counting the number of mentions, centimetres, or the amount of time a brand or organization story receives in the media. It is difficult, however, to link these measures to behaviours and to the bottom line. Another problem is public relations' own poor image (Steyn & Puth, 2000:3), which is mostly based on the traditional negative associations with public relations or what Wilcox et al. (2000:68) refer to as a "technician mentality". This view of public relations refers to public relations as the ability to perform a competent task of executing the "mechanics" of communicating (preparing news releases, brochures, newsletters and the like) even if the information provided by management or a client is in bad taste, is misleading, lacks documentation, or is wrong. Although marketing public relations is the most important area of public relations for marketing communication programmes, there is a trend towards public relations (in a broader sense) leading the integrated marketing communication approach. 5.8 THE LEADING ROLE OF PUBLIC RELATIONS IN INGRATED MARKETING COMMUNICATION In an increasing number of organizations, public relations is leading the total communication function, including marketing communication (Harris, 1998:16). This is especially true with technology, health care, business-to-business and financial services organizations (Brody, 1994:2). Public relations departments are concerned with managing the organization's relations with all those "stakeholders" whose support is needed for the organization to achieve business goals. The achievement of marketing goals is impacted not only by customers but also by other key stakeholders who have a stake in the success of an organization. These stakeholders include employees, 176

199 shareholders, legislators, regulators and the communities in which the organization conducts business. Messages to these and other important publics must be consistent with those communicated to customers. The ability of public relations to identify issues that impact on marketing, to handle crisis situations and to counsel top management can exert a strong influence on marketing success or failure (Gorton, 1996:viii). These functions are exclusively in the domain of public relations, and argue for public relations leadership in the development of integrated marketing communication and corporate strategy that encompass integrated marketing communication (Mitchell, 1994:17). One of the most important roles that public relations can play in marketing is to sensitize the organization to the concerns and interests of all the organization's stakeholders (Gray, 1998:27). Public relations is uniquely capable of identifying issues and interpreting changes in the social and cultural environment that can significantly impact on the marketplace (Moriarty, 1997:7). Thus, there is a need for public relations on a strategic level. In a survey conducted by Mitchel Kozikowski under communication managers, public affairs managers and public relations managers at 105 major USA public organizations, ninety per cent of the respondents agreed that public relations professionals should take the lead in integrating public relations with other communication disciplines (Anon., 1994b:32). Respondents also indicated strong agreement on the following issues: Public relations professionals need to do "systems thinking", considering the interrelationship of communication and other business functions. Database management must play an increasingly important part in public relations. Public relations strategy should not be media driven. Management want integrated marketing communication (Anon., 1994b:32). 177

200 Public relations professionals therefore recognize the importance of focusing on more than just customers. They understand that brand value is determined by the quality of relationships not only with customers, but also with all the stakeholders. This does not mean that a specific group within a department should be responsible for managing each stakeholder group, but that there should be cross-functional planning and monitoring of all stakeholder relationship programmes in order to maintain strategic consistency and reduce fragmentation. A well-managed integrated marketing communication programme identifies all stakeholder groups and the impact, both positive and negative, that each can have on an organization. Moriarty (1997:4) suggests five reasons why all stakeholder groups must be taken into consideration. An organization exists within a value field of stakeholder interactions. Organizations communicate directly with customers and retailers at the same time as retailers are talking with customers and customers are talking among themselves (Shimp, 2002:611). The interactions among suppliers, distributors and even competitors can affect brand value. Stakeholders overlap. Interacting and overlapping relationships demand that an organization be strategically consistent with its basic core values and brand messages (Duncan, 2001:8). An organization cannot say one thing to investors, something else to employees, and still something else to customers. Integrity builds trust. Integration means unity of effort or purpose. When an organization becomes more integrated, its interactions become more consistent, its reputation more distinct, and its stakeholders more trustful (Duncan & Moriarty, 1997:37). Integration produces integrity because an organization seen as working as one rather than as a collection of fragmented, autonomous functions is perceived as being more sound and trustworthy prerequisites for sustained relationships. 178

201 Brand equity equals support. Just as brand share is the result of a brand's customer franchise, brand equity is the result of an organization's stakeholder franchise. All stakeholders, not just customers, choose to what extent they support a brand or organization (Pelsmacker et al., 2001:35). People have a choice where they work, investors have a choice of investment opportunities, and customers have an ever-increasing choice of what they buy. People choose to be stakeholders. This gives them the right to understand and influence what an organization does. A brand is owned by stakeholders as much as by the organization. Profitability is the relationship's bottom line. Profits can be improved by increasing revenues and/or decreasing costs. All stakeholders can affect the bottom line because their actions can have an impact on costs and revenues (Duncan, 2001:245). Both costs and revenues can increase or the decrease depending on the efforts, attitudes, ideas and support of stakeholders. According to Duncan (2001:39), stakeholder and brand relationships are the means to the end of an integrated marketing communication process. Organizations make goods and provide services, but they sell brands. As competing products proliferate and become more similar, the role of stakeholder relationships becomes more critical in integrated marketing communication. An organization that has no stakeholder relationships does not have a brand. Therefore, understanding how brands are built and managed requires an understanding of how relationships are built and managed. According to Moriarty (1997:7), public relations is the answer to organizations for building and maintaining these relationships with stakeholders. Given that there is a need for the marketing communication functions to become more aligned, communication professionals in an increasingly complex environment must posses the knowledge, skills and ability to function efficiently (Miller & Rose, 1994:15). 179

202 Public relations professionals can take steps to ensure that integration works on behalf of their clients. The first is to bring management into the communication sphere, to demonstrate the implications of good communication in general (Schultz et al. 1994:127). Public relations brings this important element to integrated marketing communication (Gonring, 1994:46). By focusing on all internal and external stakeholders (as indicated in the section above), public relations is able to balance public opinion and business strategy. Pubic relations needs to be fully integrated into the organization to manage communication in a way that shapes the opinions and behaviour of relevant constituents (Harris, 1998:7). Already, according to Dilenscheneider (1992:13), more business executives are beginning to understand the interrelationships between public relations, corporate image and sales. "CFOs and investor relations executives are eager for media coverage that builds public awareness of a company's fundamental strengths and values. They realize even a small drop in sales can mean a large drop in earnings." (Dilenschneider, 1992:13.) By building credibility for an organization, public relations can help secure investors and lenders, as well as strengthen supplier/customer relationships (as already discussed in section 5.4). Public relations' broad perspective helps organizations to avoid narrow-minded sales efforts that fail to take customers into consideration first (Gonring, 1994:45). The drive for efficiency and effectiveness in an organization is a never-ending pursuit. By aligning the communication function where it can add the greatest value, public relations professionals can ensure they are an important part of organizational functioning. Those public relations professionals who hold themselves accountable to corporate assets will become the key players according to Gonring (1994:49). 180

203 Caywood (1998:564) makes the following prediction, based on over 20 years of business, marketing and public relations education in a parallel career in government and business consulting, that there will be no place for professionals who want to practise their profession or craft isolated from other business or organizational managers: "The best advice in business today is under promise and over deliver. No significant field of management can be practiced without being integrated through the efforts of public relations." (Caywood, 1998:564.) According to this prediction, the strength of public relations is the delivery of a sharper focus on the needs and interests of one or many stakeholders with relevant important and useful messages. This prediction is thus reflected in the idea to work more strategically; develop efficient, effective and equitable integrated marketing communication; and manage programmes to accomplish the mutual goals of the organization and society (Gonring, 1994:49). According to Caywood (1998:564), the challenge of institutions will be to use all the knowledge available to manage the organizations' response to its customers, its employees and other stakeholders. The success of communication professionals will be determined by their specific and accurate knowledge of stakeholder and customer segments relevant to their organization (Gonring, 1994:49). Brody (1994:20) agrees and adds that communication professionals must develop a detailed knowledge of specific customer, customer and other stakeholder groups. Furthermore, the level of knowledge and insight should be so great that the organization cannot hold meetings, plan for the future or make decisions on issues related to the customer or stakeholder without the contribution of the public relations profession in person, electronically or even virtually. Such expertise will make the public relations professional crucial to the success of the organization. And the success of the organization using the advanced and integrated practices of public relations will ensure the success of the field and of the professional who lead it. 181

204 Public relations is thus seen as the leading party in the integrated marketing communication approach, but there is a necessity for technical, managerial and strategic public relations. For public relations to be practised at these levels in an organization, Moriarty (1994:39) suggests that the integrated marketing communication message typology should be a guiding model for public relations in the organization. 5.9 THE INTEGRATED MARKETING COMMUNICATION MESSAGE TYPOLOGY According to Duncan and Moriarty (1997:78), the integrated marketing communication message typology is a model of various message types that are communicated by an organization. Moriarty (1994:39) proposes that some elements of the typology reflect conventional public relations viewpoints and others are new; but when the whole typology is analyzed, a whole new approach to public relations is evident. A totally integrated communication programme comprises all types of messages that are delivered through the organization at any time where a stakeholder is in contact with the organization (Reich, 1998:26). Schultz et al. (1994:83) state that each contact point that the stakeholder has with the organization is a communication opportunity. Most public relations programmes focus on the created contact points and ignore the wide range of other contact points, for example, contact points that just happen (Duncan & Moriarty, 1997:33). In other words, all elements of an organization and its processes have a communication dimension. Duncan's (1997) integrated marketing communication message typology identifies four types of messages of which an organization needs to be aware so it can control, or if not control, then influence them, namely: inferred, maintenance and unplanned messages. 182

205 5.9.1 Planned messages Planned messages are the marketing communication messages delivered by advertising, sales promotion, personal sales, merchandising materials, press releases, events, sponsorships and packaging (Moriarty, 1994:40). While much of the emphasis is on customer-targeted materials, planned messages are also directed at employees, investors and other key stakeholders, and can include annual reports, annual sales meetings, notices in pay slips, bulletin boards and newsletters (Duncan & Moriarty, 1997:78). Traditional planned messages usually promote the brand or organization, and their objectives include such effects as brand awareness, brand positioning and brand knowledge. They also encourage action: buying, sampling, requesting additional information, or increasing purchase frequency or quantity (Ducan, 2001:129) Inferred messages The following three types of messages are, however, much harder to control but equally important, because they may have more impact on stakeholders' opinions. These are the messages that customers and other stakeholders infer from the product itself (for example, performance, appearance, durability), its pricing, its design and where and how it is distributed. Duncan (2001:131) refers to these messages as product messages, and describes them as including all messages sent by a product's design, performance, pricing and distribution. Although product messages do not generally involve human contact between customers and the organization, they have a significant impact and can be anticipated and controlled, although the cost to control can be significant (Duncan & Moriarty, 1997:82). For example, if it is found that the design of a motorcycle is sending 183

206 negative message (e.g. old-fashioned, slow or undependable), the cost to redesign could be very expensive and require months of work Maintenance messages Maintenance messages are primarily communicated through service how the organization and its employees instigate and respond when there is contact with the stakeholders. This includes aspects such as attitudes of front-line staff and the product instruction book or service of the organization. Client service and employee relations programmes are related to some of these messages, although they seldom occur in a coherent and coordinated way. Duncan (2001:133) refers to these messages as service messages, and states that these messages come from contact with service representatives, receptionists, secretaries, delivery people and all the other representatives of an organization. Service messages are usually personal, real-time interfaces between an organization and a customer (Duncan & Moriarty, 1997:84). To be able to control inferred messages, it is necessary to standardize policies and procedures in order to maintain consistency and control. According to Duncan and Moriarty (1997:86), what happens, however, is that control sometimes becomes more important than consistency, depriving front-line people of the ability to act when it is in the customer's best interest to do so without violating the organization's integrity Unplanned messages Unplanned messages include brand- or organization-related news stories, gossip, rumours, actions of special interest groups, comments by the trade and by competitors, findings by government or research institutions, and word of mouth (Moriarty, 1994:40). Organizations can only hope that unplanned messages are positive and consistent with all the other brand messages, but 184

207 such messages are hard to control because they come from sources outside the organization (Duncan, 2001:135). These sources may be seen either as experts on the organization (such as employees); protectors of the public interest (special interest groups, media, government); or third parties who have no vested interest in the organization (friends, associates, media). The more the unplanned messages confirm that an organization does what it says it will do, the greater the trust that is built with customers and other stakeholders. Public relations has particularly acknowledged the importance of this type of message in its approach. The first step to manage unplanned messages from a public relations perspective is to do a word-of-mouth analysis of the organization's relationships. The amount of inconsistency can, from the public relations' side, be minimized through open employee relations with rumour control programmes, openness with the media, proactive dealing with government and special interest groups, and accessibility to the financial community. Additionally, this typology brings to public relations planning a more conscious approach for the developments of stakeholder communication strategies as well as organization systems that are needed to implement these strategies. One problem that public relations faces within an organization is that so many areas of communication are controlled by other departments. Marketing communication, for example, operates through the marketing department; the human resources department may handle employee communication; investor relations may report to the chief financial officer but regardless of administrative arrangements, they all contribute to these four messages. The message typology model suggests that a new structural approach to public relations may be needed to influence or control communication, depending on the type of message. Research on the role of public relations in effective quality programmes has found that the organizational structure is of less concern than the process designed to manage and facilitate cross-functional communication (Rielly, 185

208 1991:32). According to Moriarty (1994:41), it might seem like a good idea to recommend a communication czar who controls all the areas of communication. Schultz et a/. (1994:65) agree with this statement as one of the solutions to overcome the barriers to integrated marketing communication, but Moriarty (1994:41) states that it is unrealistic to "appoint" a communication czar. Gronstedt (in Moriarty, 1994:41) suggests that cross-functional teams seem to be more effective at managing communication across the boundaries in an organization. Furthermore, Moriarty (1994:41) suggests that what is needed is someone with a responsibility for monitoring unplanned or incidental communication. This person's spheres of influence will include all the traditional departments in an organization. This person would furthermore report both across departments where the various message sources are located and up to the public relations manager. This person would also be responsible for the organization's crisis communication plan since a crisis is by definition an unplanned message. Moriarty (1994:41) states that the public relations professional should be responsible for this portfolio in the organization. An additional integrated marketing communication arrangement significant for public relations according to Moriarty (1994:41) is the integrated marketing communication synergy approach, which is discussed below INTEGRATED MARKETING COMMUNICATION SYNERGY APPROACH The integrated marketing communication synergy approach identifies three different components of integration, namely consistency, interactivity and mission (Moriarty, 1994:42). The idea of how message strategies develop and interweave can make the public relations ideas more relevant and influential. Furthermore it brings understanding of the complexity of corporate message 186

209 synergy, and public relations professionals closer to the planned marketing communication where it was previously not prominent (Gonring, 1994:45). Synergy, according to Duncan (2001:767), is an interaction of individual parts that results in the whole being greater than the sum of those parts. In simple terms, synergy means therefore that marketing communication instruments must be combined in such a way that the organization's offering is consistently portrayed. In other words, all marketing communication instruments have to work in the same direction, and not conflict with each other. In many organizations, public relations, marketing and advertising work closely together. The public relations programme communicates good citizenship of quality, whereas the marketing communication attempt focuses on the various other message objectives such as explaining a product feature (advertising) or showcasing price deals (sales promotion) (Moriarty, 1996:333). This synergy model focuses on how the various messages (as discussed in section 5.9) are related to each other in a coherent way and how such varied messages come together in a coherent corporate or brand image, by the three aspects of consistency, interactivity and mission Consistency According to Duncan and Moriarty (1997:90), people integrate messages naturally. The individual does not orientate the message fragment that is stored in terms of a source or that came from an advertisement, a news story or an article in an employee newsletter. From a public relations perspective, when building an image of an organization, these parts fall together in the best way to create a good impression. An image of an organization that stays with a person is the organization whose various communication components communicate the same underlying theme. Without this type of consistency, the image will always be unclear (Duncan & Moriarty, 1997:90-91). 187

210 The value of synergy in integrated marketing communication theory relates directly to the systems approach in public relations, in that the sum of all the messages has a greater impact than the individual message on its own (as discussed in Chapter 4). A more complex integration than the "one voice" approach is "consistent voice communication" (Moriarty, 1994:42) where the messages are directed at different audiences. Although the messages say different things to different audiences, there are lines that hold the messages together and contribute to the overall corporate communication or brand image. Duncan (2001:327) suggests the consistency triangle shown in figure 5.2 to analyze how all the organization's brand messages relate to each other. / S / Brand integrity Figure 5.2 The consistency triangle Strategic brand consistency exists when a brand does what it says from the customer's perspective. What the brand says and what it does are reinforced by what others say about it. In other words: 188

211 "Say" messages are the planned communication (see section 5.9.1) delivered by the organization through its marketing communication programme. These messages set expectations. "Do" messages are those delivered by the organization's product and service messages (see sections and 5.9.3). They are conveyed by how products perform, what they cost, how convenient they are to get and use, and the products' support services. "Confirm" messages are those from other people who either criticize (e.g. do not confirm) or praise the brand or the organization (see section 5.9.4). Personal and positive third party communication is considerably more persuasive than most planned brand messages. The consistency triangle is used to identify gaps in brand communication and alert an organization to potential relationship problems. In other words, the "say" messages delivered by marketing communication must be consistent with the "do" messages of how products and services perform, and with what others say or "confirm" about the brand. Gaps between any of these points of the triangle threaten brand relationships Interactivity The second component of the synergy model is interactive communication that facilitates dialogue and builds relationships between the organizations and stakeholders. Interactive communication depends on a database programme for the identification of people who are involved or possibly involved in future communication programmes (Duncan & Moriarty, 1997:124). There is also a system needed for handling questions, responses and other communication that stakeholders initiate as well as programmes that stimulate interaction (Anon., 1993:22). 189

212 In relationship-focused marketing communication, feedback is not only the receiver's response to a message, but also the beginning of a new message as the receiver switches roles and becomes the source and sender of a message. The communication expectations of customers and other stakeholders can be identified as recourse, recognition, responsiveness, respect and reinforcement the 5 Rs of interactivity (Duncan & Moriarty, 1997: ). From a customer's perspective, interactivity means accessibility, recognition, responsiveness and accountability all the things people require in a relationship, whether personal or commercial. From a brand perspective, it means the ability to listen as well as speak and then modify behaviour as a result of feedback. According to Kitchen (1999:91), interactivity is the process by which customers are integrated into an organization, made part of the product planning and development process, and dealt with individually. Duncan and Moriarty. (1997:95) agree with this notion and state that, to be interactive, organizations must place as much emphasis on receiving as they do on sending messages. Databases and new media technologies make it possible to start moving to interactive communication programmes, away from the one-way, mass media approach, to two-way communication approaches, which will support dialoguebased relationships. As public relations practitioners are becoming more accustomed to databases and interactive technologies, two-way communication with stakeholders will increase in this interactive era. As this happens, urgent creative thinking is needed on what it means to participate in communication initiated by a wide variety of stakeholders (Morris-Lee, 1996:67). Duncan (2001:150) adds that these new communication technologies have further made it more cost-effective to listen to customers, record their comments and facilitate their questions, complaints and concerns. They have also made it possible for customers to initiate conversations with organizations about their brands. Because of this new world of two-way communication, the interface between 190

213 organizations and their customers and stakeholders is becoming more important than ever (Duncan, 2001:150) Mission The final component of synergistic communication is mission marketing. Attitudes of customer disrespect, disgust and distrust create new marketplace challenges. According to Gaines (1996:22), the bottom line for many stakeholders is that most businesses have little integrity. Therefore, if an organization wants to discard this stereotype and increase its integrity among customers and other stakeholders, it must prove that it is a good corporate citizen by showing positive brand citizenship, accepting the privileges and responsibilities of functioning within an economic and social community whether local, national or global. It can do this by practising mission marketing that adds value and trust to brand relationships. According to Duncan and Moriarty (1997:127), there are two basic levels of mission marketing. The first is having a mission or purpose for existing in addition to creating shareholder value and profits. This requires a corporate culture and discipline to ensure the mission is visibly practised and more than merely superficial words. The second level of mission marketing is more executional and applies to those organizations that are involved in a broad range of philanthropic activities. This requires changing the way they handle their social outreach and cause marketing programmes. To maximize the benefits of mission marketing, an organization should do both have and promote its mission as well as concentrate its philanthropic programmes into an activity that reinforces the mission. When mission marketing is exercised, it is difficult to determine the role of various traditional communication functions such as advertising and public relations, and to disconnect them from other communication sources such as the 191

214 corporate philosophy (Duncan, 2001:645). It appears that a mission focus works best with an entrepreneurial organization, where the owner is involved in all the aspects of the communication of the organization (Bonar, 1996:31). The founder of an organization's involvement and personal style becomes the focus of media interest, therefore decreasing or eliminating the need for conventional advertising (Duncan & Moriarty, 1997:147). For example, the involvement of the owner of Virgin, Richard Branson, in his various businesses became the focus of the media, thus reducing the need for conventional advertising. The problem comes in with existing organizations that have not made a successful shift from a founder-oriented to a manager-oriented mission. This is especially problematic in bottom-line focused organizations in highly competitive markets, as such organizations need to balance expenditure on conventional advertising with the financial benefits derived from it. Founder-oriented organizations do not have this problem. Furthermore, the management in manager-oriented organizations come and go, whereas with founder-oriented organizations, the likelihood of the founder leaving the organization is much lower, as s/he has much more of an emotional association with the organization. This makes for much easier and less expensive continuity in its marketing communication focus. Strategic public relations is necessary in developing a mission strategy and implementing buy-in throughout the organization. Nurturing relationships and involving and motivating people could be considered to be part of the public relations mission, but it is a role for which public relations people are often not well trained, because of a strong focus on a communication technician role within organizations. Involving everyone in the development and the implementation of a corporate change require a change agent specialist, and this is an opportunity for public relations to extend its sphere and make an important contribution to the organization. The integrated marketing communication synergy approach identifies not only how a corporate or brand image can hold together, but also the points where the 192

215 image can fall apart. Advertising and promotion are more concerned with the first component (consistency), although public relations advice is needed to determine what the consistent message must be, and then to reinforce that strategy in all the aspects of the organization media, financial, government and employee relations CONCLUSION From this chapter, it is evident that there has been a definite shift from traditional public relations to a more marketing-oriented approach to public relations, or as Anon. (2002:82) states: "PR has gone beyond being a support function for marketing or being a poor relation of advertising". Based on this shift, the idea of marketing public relations becomes significant, primary strength of which, from an integrated marketing communication perspective, is to build overall brand credibility. Furthermore, public relations is the ultimate relationship management tool, because of its ability to lend credibility to a product, service or organization. Communication professionals who inform their stakeholders gain credibility. As credibility is an intangible benefit, although a very real one, this ability to create credibility is viewed as the "secret weapon" that public relations brings to integrated marketing communication. Today's sceptical and sophisticated customers are sensitive to real information and to a sales pitch. Public relations closes the credibility gap, as it is the one marketing communication function devoted to providing information, and not salesmanship. It makes every other marketing communication effort more effective, as it lays a solid credible grounding for a brand. An integrated marketing communication approach, with its relationship focus, brings the importance of stakeholder relationships to the marketing communication sphere, and such relationships are essentially what public relations is all about. Also, based on the evidence of this chapter, one of the key 193

216 roles played by public relations within integrated marketing communication is to sensitize the organization to the concerns and interests of all stakeholders, as public relations is capable of identifying issues and interpreting changes in the social and cultural environment that significantly impacts the marketplace. From the integrated marketing communication approaches discussed, it is evident that in the components of interactive communication and mission marketing, public relations plays an essential role, because of the relationshipfocused role of public relations within the organization. All these integrated marketing communication components are important to public relations, and for public relations to be efficient and effective in an organization, it should be practised on a technical, managerial and strategic level in the organization. It is therefore important for all the sub-functions of public relations to be incorporated into the models and organizational structures of integrated marketing communication approaches. 194

217 CHAPTER 6 EMPIRICAL RESEARCH 6.1 INTRODUCTION The aim of this chapter is to define the methodological context of this study clearly so that the options implemented can be identified as most appropriate and of use to the present study. The quantitative and qualitative research methodologies and the aptness of each are firstly described as well as the utilization of triangulation as an appropriate strategy to increase the likelihood of accurate measurement in this study. For the purpose of the study, both quantitative and qualitative research methodologies are selected. The research design followed in the study is a case study approach in the. tertiary educational domain. The two research methodologies identified represent the two phases of the study. The first phase, consisting of the quantitative research methodology, attempts to determine the extent to which RAU's marketing communication strategy is integrated. In this phase, the IMC mini-audit is used as a research method. It is imperative to note that all organizations are naturally integrated to some extent (Duncan & Moriarty, 1997:14). Therefore, it is not necessary to establish whether RAU is integrated as an organization, because of the inherent integrative nature of all organizations. However, the focus is on to what extent RAU is integrated, based on the integration scale of the integrated marketing communication mini-audit. The second phase entails the qualitative research methodology, where the goal of the phase is to determine the extent to which public relations is used, as a communication function in RAU's integrated marketing communication approach. For the purpose of this phase, in-depth interviews are used as research method. 195

218 Secondly, the research objectives of the study are outlined, focusing on the research problem of the first phase and the research goal of the second phase. The suitable population and sampling procedures are discussed for the two phases. The focus is then on the research design, data gathering and data processing for the two phases. Additionally, the validity and reliability of the study are discussed.the research methodology will be discussed in the following section, to establish the aptness of the empirical research. 6.2 RESEARCH STRATEGY Research methods and techniques are task specific. The task is defined by the research goal. Different studies use different methods or techniques because they have different objectives (Mouton, 1996:38). It is however essential that the technique must be appropriate to the task at hand. Methodologies can be categorized under the two headings of qualitative and quantitative research methodologies. The distinction between qualitative and quantitative methodologies applies to the research process as a whole and not to any specific part thereof only. The methodologies can be utilized to corroborate the findings (complimentary) or to supplement limitations within either methodology (supplementary) (Abrahamson, 1983:4). Pauly (1991:125) recommends the use of both types of methodologies in one research project, for the reason that the researcher then, by using both types of methodologies, obtains a better, more substantive view of reality. Web (1966:3) provides the reason for using both methodologies by stating that "if a proposition can survive the onslaught of a series of imperfect measures,... confidence should be placed in it". The reason for using both qualitative and quantitative research methodologies is that it is a means of refining, broadening and strengthening conceptual linkages in the research (Berg, 1998:6). King, 196

219 are operationalisible in terms of specific measuring instruments (Allan & Skinner, 1991:4). The quantitative approach to research assigns only denotative meaning to results (not connotative meaning, which allows numerous understandings), where no alternative assumptions can be made about the scenario. Hypotheses are clearly stated and can be discarded in quantitative research. The observation is pre-planned and the researcher remains distant. Formal inventories are used and expected observations are already placed in categories (Huysamen, 1993:3). The context is controlled as far as possible. Sanders and Pinhey (1983:356) add that most quantitative studies follow three steps that do not overlap unless pilot studies are involved: Setting up analytical categories; Gathering the data; and Analysing the data. The researcher is entitled to record what is experienced only. The system ordering the experience must be such that it does not present more into the experience than the entities that are restricted in the experience (Huysamen, 1993:3). The researcher is therefore limited to the point that observations are not approximated nor allowed, and they are not recorded. Value or normative statements are not considered knowledge. The quantitative methodology recommends agreement of the scientific method. Therefore, methods for obtaining valid knowledge and the main stages in elaborating experience through theoretical indication are fundamentally the same in all areas of experience. The quantitative paradigm accentuates general laws of cause and effect, based on an explanatory outline that supposes that reality consists of a world of objectively defined facts. Quantification is crucial to the quantitative methodology. Therefore, concepts or constructs embedded in theoretical schemes or hypotheses are apparent to be observable, manipulable 198

220 and testable. It is a condition for the findings of research to be replicable and generalisible (Huysamen, 1993:4). To be able to determine the appropriateness of quantitative research methodology for the purpose of this study, the following advantages and disadvantages are listed. a Advantages of quantitative research methodology: The use of numbers allows greater precision in reporting results (Wimmer and Dominick, 1983:50). This advantage of quantitative research methodology is the accurate numeric presentation of the facts. It is therefore relevant to the study, as it presents the findings in an accurate, numeric form, which assists the comparative quality of the findings of this study when viewed against other studies and the integrity of the findings as a numeric presentation avoids subjectivity. These qualities make for a more accurate and quantifiable representation of the findings. Another reason, as stated by Babbie (2002a:20), and especially applicable to the study, is that quantification makes the observations in the research more explicit. As a result of this, the findings of the study can be presented entirely beyond the contamination of preconception, and this adds to the efficient conveying of the facts. Quantitative research permits the use of powerful methods of mathematical analysis, such as the Thurston scale for predicting probability (Wimmer and Dominick, 1983:50). Furthermore, the use of quantitative research methods makes aggregating and summarizing data easier (Babbie, 2002b:21). This will aid greatly in processing the data in a format useful for analysis and interpretation. 199

221 a Disadvantages of quantitative research methodology: Quantitative research has been shown to use a set of ad hoc procedures to define, count and analyze variables instead of attending to the social construction of meaning (Silverman, 1985:139). For the purpose of this study, this is a disadvantage that might be applicable, as a purely quantitative methodology might cause facts to be interpreted incorrectly, as the facts are viewed uncontaminated, while the relevant social context might provide useful insight into the result. Such insight might influence the conclusion, as the field of integrated marketing communication draws largely from the social environment in which it is practised. Allan and Skinner (1991:16) agree with the abovementioned, adding that quantitative research produces the problem of unsuitably fixing meaning where these are variable and renegotiable in relation to their context of use. Quantitative methodology neglects the uniqueness and particularity of human experience. With the appropriateness of the quantitative research identified for the study, it is imperative to note that quantitative and qualitative methodologies are not mutually exclusive. Therefore, qualitative research is discussed below Qualitative research methodology Qualitative research can be described as any type of research that produces findings not arrived at by statistical procedures or other means of quantification (Straus & Corbin, 1998:10). According to Schwartz and Jacobs (1979:7), the qualitative approach focuses on understanding the people studied in terms of their environment, and their perception of their context. Baker (1999:8) agrees and states that qualitative research attempts to understand how an entire social unit such as a group, organization or community operates in its own terms. Qualitative methods are characterized by the use of non-numeric data, induction 200

222 and exploratory methods (Smith, 1988:180). Allan and Skinner (1991:16) state that qualitative approaches contain procedures that are not as strictly formalised and explicated, with a limitless range and a more philosophical working method. When qualitative methodology is applied, the concepts or constructs have surplus meaning, in other words, it can be interpreted in many ways. Furthermore, the qualitative researcher perceives concepts and constructs as meaningful words that can be analyzed to provide an in-depth understanding of the phenomenon. Mouton (1988:1) adds that the term qualitative is an indication that this approach concentrates on qualities of human behaviour, i.e. the qualitative aspects as against quantitatively measurable aspects of human behaviour. According to Bailey (1979:6) hypotheses may appear from the development of the research in qualitative research. These hypotheses may be used later to conduct a quantitative study. In qualitative research, a research goal is instead presented and can therefore, in general, not be rejected. Observation takes place in a non-structured style. The observation is open so that even unforeseen events can be recorded (Mouton & Marais, 1990:165). The situation is accounted for and the researcher inter-relates or contributes to the observation. Mathematical methods are of minimal use, apart from implicit measuring or counting, such as "How many? How often? Or to what degree?" Qualitative research emphasises description rather than observation (Miller, 1991:5). Baker (1999:8) explains that qualitative research is often carried out to investigate some important concerns to be found in some parts of the human view. It can therefore be concluded that qualitative research can be explained as context specific and the data attained from such studies may be transferred and applied to related contexts for comparative or other purposes. 201

223 Qualitative research refers to numerous methods of data collection that comprises field studies, grounded theory research and ethnographic research (Mouton, 1988:1). Baker (1999:240) agrees with this statement and adds the data collection method of phenomenological research. To be able to determine the appropriateness of qualitative research methodologies for the purpose of this study, it is important to identify the advantages and disadvantages of qualitative research methodology as suggested by Wimmer and Dominick (1983:49). a Advantages of qualitative research methodologies: Qualitative research methodology lets the researcher view behaviour in natural surroundings without the artificiality that encloses experimental survey research from time to time. Qualitative research can intensify a researchers depth of understanding of the occurrence under investigation. It is apt for this study as the use of this approach will increase the depth of understanding, as there is a lack of information available on the research topic. Qualitative methods are flexible and allow a researcher to practise new ideas of concern. This is advantageous for the study, as this method is adaptable and accepts the practice of new ideas that might appear during the course of the data gathering. Such flexibility is especially important for this study, as integrated marketing communication is a young field of study, and if new ideas arise during the research, the study can be adapted to give more meaningful results. a Disadvantages of qualitative research methods: In qualitative research, sample sizes are commonly too small to allow the researcher to generalize the data beyond the sample selected for the 202

224 specific study. Therefore, qualitative research is often conducted preliminary to quantitative research for the reason of enlightening and operationalizing concepts, if the ultimate purpose of such research is intended at quantification or generalization. Reliability of data can be a difficulty in qualitative research since single observers are describing unique events. The researcher is in close contact with respondents that may result in a loss of objectivity. If qualitative research is not properly planned, the project may produce nothing of worth and therefore the researcher who uses qualitative methodology has to make particular provision to focus on the key issues in the research project. From the discussion of the two research methodologies, the differences between quantitative and qualitative research can be summarised best in the following table, as suggested by Neuman (2000:123) and Caywood (1998:43): Quantitative, verificationbased research methods Test hypothesis with which the researcher begins. Concepts are in the form of distinct variables. Measures are systematically created before data collection and are standardized. Data are in the form of numbers from precise measurement. Qualitative, discovery-based research methods Capture and discover meaning once the researcher becomes immersed in the data. Concepts are in the form of themes, motifs, generalizations and taxonomies. Measures are created in an ad hoc manner and are often specific to the individual setting or researcher. Data are in the form of words and images from documents, observations and transcripts. 203

225 Theory is largely causal and deductive. Procedures are standard and replication is assumed. Analysis proceeds by using statistics, tables or charts and discussing how what they show relates to hypotheses. Verifying the insights Large number of randomly selected participants Emphasizes studying people Fixed and rigid survey design Analytical skills are important in analyzing results Theory can be causal or non-causal and is often inductive. Research procedures are particular and replication is very rare. Analysis proceeds by extracting themes or generalizations from evidence and organising data to present a coherent, consistent picture. Discovering new insights Small number of purposefully selected participants Emphasizes learning from people Emerging and creative survey design Creative skills are important in analyzing results Table 6.1 Comparison between quantitative and qualitative methodologies From the above, it is clear that there is a definite distinction between qualitative and quantitative research methods, and that each method has certain advantages and disadvantages, which the researcher needs to be aware of, when selecting a suitable methodology. Wimmer and Dominick (1983:51) state that researchers have come to realize, that both qualitative and quantitative techniques are central in understanding any occurrence. As stated in sections and 6.2.2, both quantitative and qualitative research methods are used in the study for various reasons. According to Caywood (1998:42), it is important to use a combination of methods for each problem to. "triangulate" findings. This is a metaphorical expression borrowed from the navigation technique by which an unknown point can be located by establishing 204

226 the intersection of three vectors. In social science research, triangulation is the cross-checking of data and interpretations through the use of multiple methods and sources. Triangulation is therefore necessary to understand the nature of a research problem fully (Neuman, 2000:125). Research literature continues to support Neuman's recommendation (2000:125) to triangulate during research. For example, Goetz and LeCompte (1984) describe its use as a means of refining and strengthening conceptual linkages. Borman, LeCompte, and Goetz (1986) similarly stress that triangulation allows researchers to offer perspectives other than their own. Frankfort-Nachmias and Nachmias (1996:206) suggest that researchers can "minimise the degree of specificity of certain methods to particular bodies of knowledge", by using "two or more methods of data collection to test hypotheses and measure variables; this is the essence of triangulation". Berg (1998:6) states that novice researchers are instructed in the use of research strategies composed of multiple methods in a single investigation. Denzin (1978:101) also suggests that triangulation includes multiple data collection procedures, multiple theoretical perspectives and/or multiple analysis techniques. The use of multiple research strategies and theories increases the depth of understanding that an investigation can yield (Miles & Huberman, 1983:25). Triangulation is used in this study as a means of enlightening and supporting conceptual linkages, where the qualitative method is used in the study to refine the quantitative method to focus on a specific aspect (public relations) to strengthen the overall concept explored, namely integrated marketing communication. Therefore, triangulation is used in the study, especially to increase the depth of understanding of the research, by applying two independent research methodologies. These methodologies, although independent, are supportive of each other, because if both results support the over-riding concept, they will greatly enhance the validity of the result. 205

227 To be able to increase the depth of understanding of the research, the research design of the study is discussed. 6.3 RESEARCH DESIGN The development of a research design follows logically from the research strategy. A research design is defined as a set of guidelines and instructions to be followed in addressing the research problem (Mutchnick & Berg, 1996:7). The main function of a research design is therefore to enable the researcher to anticipate what the appropriate research decisions should be so as to maximise the validity of the eventual results (Mouton, 1996:x). For the purpose of the study, a case study is used as the overall research design. According to Babbie (2002b:285), social researchers often speak of case studies, which focus attention on one or a few instances of some social phenomenon. Ragin and Howard (1992:8) point out that there is little consensus on what may constitute a "case" and the term is used broadly. Yin (1985:23) defines a case study as an empirical enquiry that: Investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used. In response to this definition, Wimmer and Dominick (1987:156) propose the case study as a research methodology for the following three reasons: The case study technique can suggest why something has occurred, in other words, the phenomenon as stated in the definition. Case studies facilitate the researcher in obtaining much information about the research topic because of (as stated in the definition) multiple sources of evidence that are used. Case studies afford the researcher with the ability to deal with a wide 206

228 spectrum of evidence (the multiple sources of evidence as stated in the definition), such as documents, interviews and direct observations, which can be incorporated in the case study. Furthermore, Neuman (1997:32) suggests that most field researchers use case studies on a small group of people for some period. In this particular research, the small group was restricted to the tertiary educational domain. The main point of criticism of a case study is its general lack of scientific rigour and that it is time consuming to do (Neuman, 2000:32). Yin (1985:13) points out that a common flaw in the literature is the belief that case studies use only qualitative methods, or that a "case study' is a qualitative method (one that might be used mistakenly as a synonym for "ethnography" or "participant observation"). But according to Neuman (2000:391), the mode of observation used is not what distinguishes a case study. Instead, the author states that a case study is a particular case (or several cases in a multiple case study) and the utilization of the full variety of evidence regarding that case(s), including some evidence gathered by the use of quantitative research methods. The case being studied, for the intention of this study, is therefore tertiary educational domain. Babble (2002a:292) states that the limitation of attention to a particular instance of something is the essential characteristic of the case study. The case study approach is a comparatively flexible method of scientific research. In this approach, researchers are comparatively freer to discover and address issues as they arise in their experiments, because their project design seems to emphasize exploration rather than prescription (Van Wezel, 2000:219). According to Neuman (2000:392), the rationale for using the case study method is typically the availability of a special case that seems to merit intensive investigation. Additionally, the study is exploratory in nature. This is largely due to 207

229 the fact that this particular field of study, integrated marketing communication, has an immense scope for research as it encompasses a wide range of more specialized fields. In order to achieve a more focused approach, a case study approach is adopted within the wider sphere of exploration. This approach is particularly relevant as a research method, as exploratory research can be the first stage in a sequence of studies on a specific phenomenon. Furthermore, it seeks to explore the specific case under consideration to argue towards a logical conclusion and not necessarily prove it. The literature review will be used, throughout the study, as a basis for interpretation to enable the realization of the conclusion. The exploratory study will be used to establish facts, gather new data or even to determine whether there are useful trends in the data from the specific case study of the tertiary educational domain. It is thus clear that the overall research design for the purpose of the study is in the form of a case study, with the qualitative and quantitative research strategies for the two phases used being used within the greater case study approach. The research objectives applicable to the two phases of the study are discussed in the following. 6.4 RESEARCH OBJECTIVES In the following section, the research problem of phase one will be addressed, followed by the research goal of phase two of the study Phase one integrated marketing communication The research question for the study is as follows: Where does RAU, as an organization, stand on the integration scale as. determined by the integrated marketing communication mini-audit? 208

230 Based on the theoretical framework, the following hypothesis was developed to address the research question. H 1: If RAU scores above average s on the integration scale of the integrated marketing communication mini-audit, then RAU as an organization is integrated. To be able to address secondary issues that are directly related to the main hypothesis, the following sub-hypotheses were formulated: H a: If RAU's organizational infrastructure area is integrated, then RAU will score above average in the organizational infrastructure section of the integrated marketing communication mini-audit. H b: If RAU's interaction with all its stakeholders is integrated, then RAU will score above average in the interactivity section of the integrated marketing communication mini-audit. H c. If RAU's mission marketing is integrated, then RAU will score above average in the mission marketing section of the integrated marketing communication mini-audit. H d If RAU's brand messages are strategically consistent, then RAU will score above average in the strategic consistency section of the integrated marketing communication mini-audit. H e: If RAU's marketing communication planning is integrated, then RAU will score above average in the planning section of the integrated marketing communication mini-audit. 5 The average integration score for an organization on the IMC mini-audit is

231 H f: If RAU's marketing communication evaluation is effective, then RAU will score above average in the evaluating section of the integrated marketing communication mini-audit. H g: If RAU's various departments are integrated, then the organizational infrastructure section score will be above average on the integrated marketing communication mini-audit scale. H h: If RAU's area of corporate learning is integrated, then the organizational infrastructure section score will be above average on the integrated marketing communication mini-audit scale. H t If RAU's area of stakeholders is integrated, then the interactivity section score will be above average on the integrated marketing communication mini-audit scale. H If RAU's area of brand positioning is integrated, then the strategic consistency section score will be above average on the integrated marketing communication mini-audit scale. H k If RAU's planning section score is above average on the integrated marketing communication mini-audit scale, then RAU's area of the "big creative idea" will be integrated. H F. If RAU's evaluation section score is above average on the integrated marketing communication mini-audit scale, then RAU's area of the "big creative idea" will be integrated. H m: If RAU's area of corporate mission is integrated, then the mission marketing section score will be above average on the integrated marketing communication mini-audit scale. 210

232 To clarify the concepts used in the hypothesis, the necessary terms are defined in the operationalization of concepts Operationalization of concepts In order to clarify what is implied by the concepts mentioned in the hypothesis, the following descriptions are provided in the above contexts. Above average: The average score in the integrated marketing communication mini-audit is 2.8. To score above average on the integrated marketing communication mini-audit scale, the organization needs to score above 2.8 (Duncan & Moriarty, 1997:26). Organizational infrastructure: The processes managed by people who have a solid understanding of all marketing communication tools in the organization, based on cross-functional responsibilities and communication in the organization, and communication with the major communication agencies of the organization (Schultz et al., 1994:165). Interactivity: Two-way communication, which allows both the organization and the stakeholders of the organization to send and receive messages (Thorson & Moore, 1996:296). Mission marketing: The process that binds the organization's marketing communication efforts with the mission of the organization (Duncan, 2001:765). Strategic consistency: The coordination of all types of messages that create or cue brand images, positions and reputations in the minds of customers and other stakeholders (Kitchen & Schultz, 2000:122). 211

233 Brand messages: All the messages customers and other stakeholders receive from and about a brand that affect what they think about the brand (Gronstedt, 2000:44). Marketing communication planning: The process of designing a set of objectives, strategies and tactics orchestrating all the organization's marketing activities to help the organization achieve its financial objectives (Thorson & Moore, 1996:154). Marketing communication evaluation: The measurement and evaluation of brand messages and customer interactions, which include the generation of feedback on brand strategies and the different brand messages and programmes used by the organization (Duncan, 2001:765). Various departments: The employee expertise in the various departments needs to be preserved and linked by involving employees in the brandbuilding/growing/planning process and monitoring the brand relationships in a cross-functional way (Duncan & Moriarty, 1997:25). Area of stakeholders: Communication between the organization, the customers and other stakeholders needs to be integrated into the total operations of the organization (Harris, 1998:124). Area of corporate learning: Information on customers and stakeholders is structured in a meaningful form knowledge and made available to everyone who can use it to increase customer service or add value to the brand in some way (Gronstedt, 2000:89). Area of brand positioning: The area of how a brand compares to its competitors in the minds of the customers and the stakeholders (Duncan, 2001:762). 212

234 Area of the "big creative idea'''. The area of a creative concept that translates the strategy into an umbrella theme that unites all the various brand messages and contributes consistency to the brand image (Schultz et at., 1994:88). Area of corporate mission: The area where an organization has a real mission based on a set of corporate values, which maximizes the impact of the mission by integrating it into everything the organization does (Duncan & Moriarty, 1997:26). Following from the research question, the hypothesis and operationalization of concepts of the first phase of the study, the purpose and research goal of the second phase will be discussed Phase two public relations in integrated marketing communication The purpose of the second phase of this study is to determine the role of public relations, as a marketing communication function, in RAU's integrated marketing communication approach. The key elements in this research goal are discussed below: The study attempts to explore the role of public relations, where public relations is used as a marketing communication function within the integrated approach of the Division of Public Relations at RAU. The first reason for focusing specifically on public relations as a marketing communication function in RAU's integrated marketing communication approach is that, historically, RAU has used public relations as the dominant marketing communication function to reach its stakeholders. The research is therefore approached from this point of view to determine the present role of public relations as a marketing communication function, within the integrated marketing communication approach of this division, as opposed to the historical role of public relations as an independent function. 213

235 Secondly, the focus is specifically on public relations as a marketing communication function within the integrated marketing communication approach. This is due to public relations becoming, increasingly, not only part of the integrated marketing communication approach, but leading this approach in organizations (Gray, 1998:27). A 1996 survey by The Cantor Concern, an executive recruiting firm in the United States specializing in the communication field, confirms the trend towards integrating the public relations function with the overall communication function, and a trend towards public relations leading the integration approach (Harris, 1998:6). Based on this, the goal of this study is described as exploratory, because the aim of exploratory studies is to establish the 'facts', to gather new data and. to determine whether there are interesting patterns in the data (Mouton, 1996:103), rather than collecting accurate, replicable data (Mouton & Marais, 1990:44). Bailey (1982:39) and Babbie (1992:90) remark that in research, where the goal is exploration, it is the aim by way of a probable working manner, to attain an enhancement of the research problem. The participants in the research will be discussed in the population and sampling section. 6.5 SAMPLING DESIGN Any empirical-scientific enquiry commences with an investigation in which the problem investigated as well as the terrain covered by the investigation must be clearly depicted and defined. In the social sciences, the typical unit of analysis is the person, or groups of people, although there may also be other units of analysis. According to Wimmer and Dominick (1983:69), the chances of investigating the entire population are remote, if not non-existent. Therefore, a sample is drawn from the population for research purposes. The population and samples for the two phases of the study are demarcated and discussed below: 214

236 6.5.1 Population After determining the unit of analysis, the first task in sampling is to define the population of interest to describe the particular collection of units that make up the population. According to Tudd, Smith and Kidder (1991:130), a population is the aggregate of all the cases that conform to some designated set of specifications. Mouton (1996:134) refers to the population as a collection of objects, events or individuals having some common characteristics that the researcher is interested in studying. Although researchers must begin with careful specification of their population, poetic licence usually permits them to phrase their reports in terms of the hypothetical universe. The population therefore refers to the complete set of elements and their characteristics about which a conclusion is to be drawn based on a sample. The population in this study for both the first and second phases of the study is the top five, state-funded universities in South Africa, as published on a website dedicated to publish lists of the top 10 of specified topics, as listed on the website (Anon., 2002:1-2). These listings are compiled via opinion polls that are conducted on the website. The criteria set for this specific poll of South African universities are ratings of the universities' academic excellence and infrastructure. The top five universities listed on this website are, in order of excellence: RAU; The University of Cape Town; The University of Natal; The University of Pretoria; and The University of South Africa. 215

237 6.5.2 Sampling A sample is a division of the population that is taken to be representative of the total population (Wimmer & Dominick, 1983:69). The procedure by which a sample is drawn from the population is referred to as sampling. Strauss and Corbin (1990:176) refer more specifically to the term theoretical sampling sampling based on concepts that have "proven theoretical relevance" to the evolving theory. To establish "proven theoretical relevance" for the purpose of the study, various authors distinguish between two classes of sampling methods: a) probability sampling methods and b) non-probability sampling methods (Babble, 1992; Neuman, 2000; Mouton, 1996; Bernard, 2000; Singleton, Straits & McAllister, 1988; Tudd, Smith & Kidder, 1991). These methods are briefly identified as follows: a Probability sampling methods The essential characteristic of probability sampling is that the researcher can specify for each element of the population the probability that it will be included in the sample. In the simplest case, each of the elements has the same probability of being included, but this is not a necessary condition. What is necessary is that for each element there must be some specifiable probability that it will be included (Tudd et al., 1991:133). Therefore, probability sampling increases the possibility that the selection of elements from the population provides an accurate reflection of the parameters of the population. Examples of probability sampling are simple random sampling, systematic sampling, stratified sampling and cluster sampling, which can be described as follows: 216

238 Simple random sampling Mouton (1996:138), Babbie (2002:177) and Neuman (2000:203) agree that this is the simplest kind of sampling where each subject or unit in the population has an equivalent possibility of being selected. Systematic sampling Systematic sampling is simple random sampling with a short cut for random selection (Bernard, 2000:149). In systematic sampling, every kth element in the total list is chosen (systematically) for inclusion in the sample (Babbie, 1992:212; Abrahamson, 1983:227). A sampling rate is then selected, and the researcher may randomly select that starting point as well as the interval (Wimmer & Dominick, 1983:75). Stratified sampling In stratified random sampling, the population is first subdivided into two or more mutually exclusive segments, called strata, based on categories of one or a combination of relevant variables (Tudd et al., 1991:133). Simple random samples are drawn from each stratum, and these sub-samples are joined to form the complete, stratified sample (Singleton et al., 1988:145). Cluster sampling According to Babbie (1992:211), in cluster sampling, the population is broken down into groups of cases, called clusters, and a sample of clusters is selected randomly. Bernard (2000:154) agrees with this statement and adds that in some cases where it is therefore impossible for the researcher to obtain a complete list of the population, the researcher selects the sample in groups or categories. This procedure is then known as cluster sampling (Mouton, 1996:139). 217

239 Probability sampling calls for a sampling frame which is an actual list of the population (Coumoyer & Klein, 2000:118) from which the sample will be drawn. a Non-probability sampling methods Non-probability sampling refers to processes of case selection other than random selection. In non-probability sampling, there is no way to estimate the probability each element has of being included in the sample and no assurance that every element has some chance of being included (Tudd et al,. 1991:133). Baker (1999:123) remarks that it is important to note that because non-probability sampling is not based on accidental random selection, it is not possible to determine their representativeness. The chance for bias is larger and therefore generalizations that are derived from these samples stand on a weaker foundation than those that are based on probability samples. Examples of nonprobability sampling are convenience sampling, volunteer sampling, purposive sampling, quota sampling and snowball sampling, which are defined as follows: Convenience sampling Baker (1999:134) defines a convenience sample as an available sample that appears able to offer answers of interest to the study, such as groups of students. Neuman (2000:196) states that when a researcher selects cases that are convenient, he/she can easily get a sample that misrepresents the population. Such samples are cheap and quick; however, Royse (1999:116) remark that this method of sampling is often used, but that it is not considered to be an acceptable technique. This is because it is less accurate and it bears the danger that unconscious bias may slip into the selection of respondents. Coumouyer and Klein (2000:125) add that this method is acceptable only if a questionnaire has to be tested. 218

240 Volunteer sampling Volunteer sampling involves building a sample around individuals who are selfselected into the sample. Wimmer and Dominick (1983:72) caution that these subjects vary to a great extent from non-volunteers and may as a result produce invalid research results. Purposive sampling Purposive sampling is an acceptable kind of sampling for special situations. It uses the judgement of an expert in selecting cases or it selects cases with a specific purpose in mind (Neuman, 2000:198). In other words, in this form of sampling, the investigator relies on his or her expert judgement to select units that are "representative" or "typical" of the population. This method of sampling is chosen with the knowledge that it is not representative of the general population; rather it attempts to represent a specific portion of the population. Quota sampling Quota sampling is a form of purposive sampling that bears a superficial resemblance to proportionate stratified random sampling. In quota sampling, a researcher first identifies relevant categories of people, then decides how many to get in each category. Thus, the number of people in various categories of the sample is fixed (Neuman, 2000:197). Therefore, in the words of Royse (1999:123), this method is similar to purposive sampling but the subjects are selected to meet a predetermined or known percentage, so that the composition of the sample reflects the profile of the population. Snowball sampling Snowball sampling (also called network, chain referral or reputational sampling) 219

241 is a method for identifying and sampling (or selecting) the cases in a network. It is based on an analogy to a snowball, which begins small but becomes larger as it rolls on wet snow and picks up additional snow. Snowball sampling is a multistage technique (Bernard, 2000:179). Schutt (1996:86) comments that snowball sampling is more probable to be selected in field research, such as participant observation. Based on the possible choices of sampling mentioned in the above, Wimmer and Dominick (1983:71) record four considerations in selecting a sampling method: Cost versus value: The sample should generate the maximum value at the minimum cost. For the purpose of the study, the cost versus value factor was taken into consideration by selecting the sample to consist of a sample unit at one location, and all the participants gave their time freely. This resulted in the research being done, at virtually no cost. Time constraint For this study, the selection of a sampling method need not be sensitive to time constraints, as the respondents are the entire staff compliment of a specific division within the organization, thereby mitigating the risk of a drawn out sampling period. This is due to the fact that all the respondents work in the same office, and it should be fairly easy to gain access to everybody, within a reasonable time. Purpose of the study: Certain research is not intended for generalization to the population, but rather to examine variable relationships or to gather exploratory data for designing questionnaires or measurement instruments. For this study, it is thirdly important to take the purpose of the study into consideration. This research is not intended for generalisation to the population, but to gather exploratory data for the specific sample in the research situation. Amount of error allowed: When error control is not the foremost matter, non-probability sampling is generally sufficient. Given that error control is not the foremost matter, in this study, non-probability sampling methods 220

242 would be sufficient, if it is considered. Taking into account all these various factors related to sampling discussed, the sampling methods selected for the purpose of the two phases of the study are discussed below: Phase one integrated marketing communication The sampling method used for the purpose of this first phase of the study is purposive sampling, because the unit of analysis chosen is a specific case with a specific purpose. It can further be reasoned that purposive sampling is used, because of the commissioning of the research by the Division of Public Relations at RAU on the topic of the research. This sampling method is selected with the understanding that it is not representative of the broad population, but it attempts to represent a specific portion of the population. Furthermore, it can also be argued that the sampling method used is convenience sampling, for the reason that the sample is readily accessible. According to Coumoyer and Klein (2000:125), this sampling method should be limited to homogeneous populations or preliminary studies that are of an exploratory nature. The fact that this study is an explorative study and because of the preliminary nature of this study, this sampling method is acceptable in this context. The overall sampling unit for this phase of the study was therefore identified as RAU. Within this sampling unit, a sub-sample unit was identified as the 23 staff members in the Division of Public Relations at RAU Phase two public relations in integrated marketing communication For the intention of the second phase of the study, the sampling method used is purposive and snowball sampling. The purposive sampling method is chosen, because in this form of sampling, the investigator uses special knowledge about the group to select subjects who represent this population. The subject is also 221

243 chosen in order to ensure that certain types of people displaying certain attributes are included in the study (Berg, 1998:229). The types of people selected are the heads of sub-divisions of the Division of Public Relations at RAU, for the reason that these are the strategic leaders that should be leading the drive to integrated marketing communication at RAU. Furthermore, the attributes that these leaders should display are a sound grasp and basic theoretical knowledge of the principles of integrated marketing communication, if they are expected to lead such a drive. It can also be argued that the snowball sampling method was used, where one of the sample units provided the names and contact details of the other heads of sub-divisions within the Division of Public Relations. The sample unit for this phase of the study consists of the three heads of sub-divisions within the Division of Public Relations at RAU. The three subjects were selected because of their specific positions. With the samples identified for the purpose of the study, the research methodology for the two phases are discussed in the following section. 6.6 RESEARCH METHODOLOGY Phase one integrated marketing communication The first phase of the study will follow a positivist theorist (deductive) approach in providing quantitative data by means of an IMC mini-audit in the form of a structured survey questionnaire. When researchers begin with an "a priori assumption (before-the-fact reasoning), wherein a theoretical idea precedes any attempt to collect facts" (Haggan, 1993:16), they are using a deductive reasoning technique. In this case, this phase of the research is based on a theory or hypothesis, and the data is then collected and the results generalized to a larger population. The IMC mini-audit will be the instrument used to measure the hypotheses. 222

244 According to Duncan and Moriarty (1997:26), all organizations are integrated to some extent. In the light of this, the authors have developed an integrated marketing communication audit that helps determine which areas organizations need to focus on to become more integrated. The IMC mini-audit is based on the IMC in-depth audit, which was developed in the University of Colorado's IMC graduate programme (Duncan & Moriarty, 1997:26). The advantage of using an IMC mini-audit to measure the extent to which an organization is integrated are deduced from the benefits of using an IMC audit, as suggested by Duncan (2001: ). The advantages of using an IMC miniaudit can therefore be summarised as follows: The IMC mini-audit objectively shows to what extent planned messages contain consistent strategy. The IMC mini-audit identifies the degree of consensus and focus among managers, and reveals the extent to which managers are working towards the same marketing communication objectives. The IMC mini-audit identifies the level of coordination (or lack thereof) between communication within the organization. The IMC mini-audit provides a basis for refocusing and reallocating resources against the primary objectives. The IMC mini-audit findings give top management an objective basis on which to provide more effective leadership in marketing and relationship building, and they make top management aware that building and nourishing relationships is a cross-functional challenge and responsibility. The disadvantages of using an IMC mini-audit can be summarised as follows: The IMC mini-audit was implemented in the study, as this study is exploratory. An alternative research method that could also have been 223

245 implemented is the IMC in-depth audit. The latter is a time-consuming and exhaustive method that would not have proven practical for this study, due to the time constraints of the study as well as the limited human resources of the study. The IMC mini-audit focuses mainly on the internal side of the organization, therefore not examining the external extent of integration. Although the IMC mini-audit is not such an exhaustive evaluation method for measuring the extent of integration in an organization compared to the IMC indepth audit, it is vital to note that using the IMC mini-audit is sufficient for the purpose and scope of this study, as this is an explorative study, with the focus on the internal integration of the organization. The reason for this is that very little previous research has been conducted on the topic of integrated marketing communication at RAU. Therefore, using an IMC mini-audit will serve as an explorative research method as this is an explorative study, where the phenomenon of integrated marketing communication is discovered within the specific case The structured, written questionnaire The IMC mini-audit is in the form of a structured, written questionnaire. According to Coumouyer and Klein (2000:152), written approaches to data collection constitute a distinct social context for data collection characterized by limited social interaction between the interviewer and interviewees. The balance of power is in the direction of the person providing the questions in that the respondents are assigned the task of responding to the written material and are not free to respond to anything else (Bowers & Courtright, 1984:70). The written instruments are intended to be self-contained and may be prepared to exact specifications designed to ensure the validity and reliability of the data collected. by standardizing the response set. It is often the case that written surveys contain both fixed-format (closed-ended) and flexible-format (open ended) 224

246 questions (Singleton et al., 1988:243). a Advantages of written questionnaires: The advantages of written questionnaires can be summarised as follows: Singleton et al. (1988:243) state that low cost is the primary advantage of written questionnaires. Bernard (2000:231) agrees with Singleton et al. (1988:243) and adds that cost often determines whether research can be done at all, and low cost may mean that responses can be obtained from more people, increasing the sample size. For the purpose of the study, costs were a prohibitive factor and this advantage therefore is applicable. The cost of copying the written questionnaires amounted to R15,00, in total, for 25 questionnaires. Twenty-five written questionnaires were copied, although there were only 23 respondents. This measure was taken to ensure availability of extra questionnaires if needed for whatever reason. A second advantage of written questionnaires proposed by Neuman (2000:271) and confirmed by Babbie (1992:265) is the prevention of possible interviewer bias. Research has shown that the way in which the interviewer asks questions and even the interviewer's general appearance or vocal qualities may influence the respondent's answers (Dillman, 1978:254). Although these biases can be reduced in interviews, they can be entirely removed only with a written questionnaire. Therefore, the prevention of possible interviewer bias is an important advantage in the use of the structured written questionnaires in this study, as only denotative meaning can be attached to the answers of the respondents. A third advantage is that written questionnaires according to Tudd et al. (1991:216) may place less pressure for immediate response on the. subject. Subjects must also be encouraged to give such extensive, careful consideration to their response, and interviewers can in general motivate 225

247 subjects more than a written questionnaire (Berg, 1998:36). Not pressurizing respondents for immediate responses is another advantage of the research method for this study. The written nature of the IMC miniaudit might cause the respondents to want to think about their responses before answering immediately. Written questionnaires are occasionally credited with another advantage giving respondents a greater feeling of anonymity and therefore encouraging open responses to sensitive questions (Neuman, 2000:271). This advantage was applicable to the study, as the respondents could remain anonymous if they wished. a Disadvantages of written questionnaires: The written questionnaire also has important disadvantages. These are discussed in the following: The first such disadvantage involves particularly the quality of data that can be obtained (Bernard, 2000:231). According to Neuman (2000:272), two considerations are involved: The first is the response rate, defined as the percentage of respondents in the initial sample from whom complete responses are obtained. The second aspect of data quality besides the response rate is the accuracy and completeness of the responses to questions. The key issue here is the motivation of the respondent, and there are problems in creating and maintaining motivation with a written questionnaire (Tudd et al., 1991:216). The likelihood of a low response rate can be considered a disadvantage of using written questionnaires in the study, as the respondents complete the questionnaire at their discretion, without much pressure to complete it in time, or at all. A second disadvantage is a lack of control over question order (Neuman,. 2000:273). Berg (1998:36) agrees and explains that it is often important that the respondent answer one question before seeing another. With a 226

248 written questionnaire, the respondents are likely to look through the entire questionnaire before starting to answer, so there is no method to control question order. This is not considered a disadvantage for the purpose of this study, as the end result is not dependent on the order in which the questions are answered. Another disadvantage of written questionnaires is the inability to control the context of question answering, and specifically, the presence of other people (Singleton et al., 1988:243). Respondents may ask friends or family members to examine the questionnaire or comment on their answers, causing bias if the respondent's own private opinions are desired. According to Bernard (2000:231) and Babbie (1992:265), a certain number of potential respondents, particularly the least educated, will also be unable to respond to written questionnaires, because of illiteracy or other difficulties in reading or writing. Another disadvantage according to Neuman (2000:272) is that written questionnaires do not allow an interviewer to correct misunderstandings or answer questions that the respondent may have. Berg (1998:37) agrees and adds that respondents might answer incorrectly or not at all out of confusion or anger, often without the researcher being able to tell that a question has been misinterpreted. This disadvantage is a possibility in this study, in that the respondents might not answer questions in the questionnaire accurately, due to a lack of sufficient knowledge about a specific item in the questionnaire Closed-ended questions in structured, written questionnaires The standardized, structured questionnaire of the IMC mini-audit consists of closed-ended questions. With closed-ended questions, the respondent is asked. to select an answer from among a list provided by the researcher (Singleton et al., 1988:265). Closed-ended questions are, according to Babbie (1992:147), 227

249 very popular, because they provide a greater uniformity of responses and are more easily processed. The disadvantages and advantages of closed-ended questions can briefly be discussed as follows, as indicated by Neuman (2000:261): a Advantages of closed-ended questions: It is easier and quicker for the respondents to answer closed-ended questions. The answers of different respondents are easier to compare. Answers are easier to code and analyze statistically. The response choices can clarify question meaning for the respondents. Respondents are more likely to answer about sensitive topics. There are fewer irrelevant or confused answers to questions. Less articulate or less literate respondents are not at a disadvantage. Replication is easier. For the purpose of the study, the most important advantage of using closedended questions in the IMC mini-audit is that it is easy and quick for a respondent to answer, and the answers are easy to analyze statistically. a Disadvantages of closed-ended questions: They can suggest ideas that the respondent would not otherwise have. Respondents with no opinion or no knowledge can answer anyway. Respondents can be frustrated because their desired answer is not a choice. It is confusing if many response choices are offered. Misinterpretation of a question can go unnoticed. Distinctions between respondent answers may be blurred. 228

250 Clerical mistakes or marking the wrong response is possible. They force respondents to give simplistic responses to complex issues. They force people to make choices they would not make in the real world. The disadvantages of using closed-ended questions in the IMC mini-audit are that the misinterpretation of a question could go unnoticed, and marking the wrong response is possible. In this phase, the method design is based on a structured, written questionnaire, consisting of closed-ended questions in the IMC mini-audit. The research methodology of the second phase of the study follows below Phase two public relations in integrated marketing communication To address the research goal of the determining the role of public relations as a marketing communication function in the integrated marketing communication approach of RAU, in-depth interviews are used. In-depth interviews are less structured and more intensive than a standardized questionnaire (Van Vuuren, Maree & De Beer, 1998:410). In-depth interviewers aim to collect detailed, richly textured, person-centred information from one or more individuals (Kaufman, 1994:123). According to Berg (1998:61), in in-depth interviews, the researcher initiates a dialogue with a real person and engages the interviewee as a human being, not a study subject. Therefore, the interviewer does not utilize a structured interview, but rather constructs a guide of openended questions. The principal advantage of an open questionnaire format is that it does not suggest the terms in which respondents should answer a question (Abrahamson, 1983:318). Kaufman (1994:125) agrees in stating that the aim of open-ended questions is to elicit subjective idiosyncratic responses that allow for deeper 229

251 understanding. Open-ended questions allow the researcher therefore to follow up with probing questions in order to deepen the response to the question, thus increasing the richness of the data obtained. These open-ended questions serve as a guide to ensure that all topics, relevant to the research (that is, meeting the aims identified), are covered during the interview (Patton, 1990:324). Van Vuuren et al. (1994:410) agree, suggesting that a few points be written down prior to the interview so that the researcher knows the topics to be covered. The interview guide is, therefore, designed to explore and answer issues pertinent to the research goal. Kaufman (1994:124) continues explaining that in in-depth interviews, the wording of a specific question, the question in which they are asked, and the probes for greater detail are unique to each interview. The interviews in this study will thus be unstructured interviews. The unstructured interview, unlike the structured interview, implies that the researcher purposefully deviates from detached observation in order to experience the life world of the participant (Huysamen, 1994:174). The context and non-verbal behaviours are therefore taken into account. Berg (1998:61) suggests that in unstructured interviews, the researcher is not bound to a previously compiled list of questions but rather directs questions that have the theme or issue of the research as a guide. Van Vuuren et al (1998:406) list the following advantages and disadvantages of in-depth interviews as: a Advantages of in-depth interviews: The respondent is well motivated because of the personal contact. In the study the respondents should be motivated to cooperate, as the personal contact will cause them to feel that their responses are valued highly enough by the researcher to warrant personal attention. There is a high question completion rate, because of the personal contact, 230

252 as discussed in the aforementioned point, as well as the fact that respondents are less likely to ignore a person sifting in their office than a written questionnaire by itself. An increased amount of questions can be used, as the researcher can tailor the line of questioning as well as the individual questions as the interview progresses to suit the direction in which the interview is heading. It is possible to control the sequence of the questions, in a similar way, as discussed in the previous point. a Disadvantages of in-depth interviews: The most expensive method of data collection; and Interviewees can become fatigued. The disadvantages mentioned above are not factors that will influence this study, seeing that the interviews have no financial implication and the interviews will not be long enough for the interviewees to become fatigued. Patton (1990:288) adds to the above by identifying the strengths and weaknesses of in-depth interviewing, called the interview guide approach. Since the topics and issues to be discussed are outlined in advance, the comprehensiveness of the data is increased, making data collection somewhat systematic and allowing for comparison a strength. The main weakness identified by Patton (1990:288) is that important and prominent topics may inadvertently be omitted, and the process is time consuming. The in-depth interviews in this study will be conducted in a face-to-face approach. Face-to-face administration of questionnaires offers some important advantages, but it has some important disadvantages as well. The advantages. will be discussed first. 231

253 a Advantages of face-to-face interviews: Face-to-face interviews have the highest response rates and permit the longest questionnaires (Babble, 1992:269). Singleton et al. (1988:243) state that these interviews could be used with people who could not otherwise provide information respondents who are illiterate, blind, bedridden or very old. Neuman (2000:272) and Bernard (2000:230) agree with the above and add that interviewers can also observe the surroundings and use nonverbal communication and visual aids. Babbie (1992:269) explains that well-trained interviewers can ask all types of questions, can ask complex questions, and can use extensive probes. a Disadvantages of face-to-face interviews: High cost, according to Neuman (2000:273), is the biggest disadvantage of face-to-face interviews. The training, travel, supervision and personnel costs of interviews can be high (Babbie, 1992:269). According to Bernard (2000:230), interviewer bias is also greatest in faceto-face interviews. Singleton et al (1988: ) agree and add that the appearance, tone of voice, question wording, and so forth of the interviewer may affect the respondent. In addition, interviewer supervision is less than in telephone interviews, which supervisors monitor by listening in (Babbie, 1992:269; Neuman, 2000:273). The interviews for the purpose of this phase of the study will therefore be conducted in the form of face-to-face, in-depth interviews, for the reasons that they will increase the comparability of the replies specified to different questions 232

254 by the respondents and that there is a high completion rate and that an increased amount of questions can be used. 6.7 VALIDITY AND RELIABILITY Mouton and Maree (1989:53) differentiate between internal and external validity. Internal validity signifies whether a particular study generated precise and trueto-reality findings concerning a specific field occurrence, and therefore produced valid results. Sproul (1988:178) agrees and adds that it also refers to whether the constructs measured produced valid measurements; whether the captured data is accurate and reliable (Cournoyer & Klein, 2000:74); whether the analysis remains true to the data (Mutchnick & Berg, 1996:80); and whether the final conclusion is supported by the data (Sproul, 1988:73). External validity refers to an additional step, namely that the findings of an actual project are also generalizibe to a similar case, in other words whether the results create a broader validity than simply the project from which they have been created (Mouton, 1996:112). According to Miller (1996:6), the validity of research is based on certain qualities of the method, namely that it is conscientious, it is responsible and that it is a system of all-inclusive collaboration. To ensure validity in this particular study, the following was done: a) Duncan and Caywood at NorthWestern University, Colorado, both specialist researchers and practitioners in the field of integrated marketing communication, compiled the questionnaire used. Therefore, internal validity was assured in phase one of the research, because of the structured and precise nature of the research method. Thus, it can be assumed that the research produced valid results. 233

255 The IMC mini-audit is a tested research method, with NorthWestern University using the method as part of the master's programme in integrated marketing communication. Triangulation was used to ensure data verification. Both the questionnaire (IMC mini-audit) and in-depth interviews were used to collect data and verify the process as well as the knowledge gained through theoretical study and analysis. External validity was not established in the research, because of the specific context of the research. The research cannot be generalized to other organizations, because the findings are specific to RAU. Reliability refers to the consistency of measurement, or the degree to which an instrument measures the same way each time it is used under the same conditions with the same subjects (Spoul, 1988:74). Phase one of the research was reliable, because of the set criteria and the structured nature of the research method used in this phase. Consistency of measurement was however not achieved in the second phase of the research, because of the qualitative nature of the research strategy. 6.8 METHOD OF DATA COLLECTION The data required for the purposes of this study was collected in two phases. The first phase involved the structured, written questionnaires. The second phase involved obtaining the data through in-depth, face-to-face interviews Phase one integrated marketing communication The IMC mini-audit was used as a method of data gathering in the first phase of the study. The IMC mini-audit questionnaires were sent out to the 23 staff members (the entire staff component) in the Division of Public Relations at RAU. 234

256 In total, 23 questionnaires were personally delivered to the Head of the Division of Public Relations at that time (Letitia de Wet) on 11 March 2002, who distributed them to all the staff members in the division. The questionnaires were collected in person for analysis after a period of 9 days, on 20 March From the 23 questionnaires sent out, 15 were received, therefore producing a response rate of 65,22 %. The IMC mini-audit is based on the IMC in-depth audit, which is "an in-depth research method for evaluating IMC relationship-building efforts" (Duncan, 2001:727). The IMC in-depth audit is very complex, but although greatly simplified, the 20 questions in the IMC mini-audit provide the organization with an idea of where it stands on the integration scale. The IMC mini-audit is divided into five subsections of: Organizational infrastructure; Interactivity; Mission marketing; Strategic consistency; and Planning and evaluating. Each subsection has 3-4 questions to determine the extent to which the organization is integrated. With each question, the respondent is asked to circle the appropriate number in the mini-audit. The numbers range from one to five, where one is "never do" and five is "always do". There is also a "DK" (do not know), which the respondent can encircle. If a question does not apply to the organization, it is left blank. When the respondents are done, scores are added (minus blank items and "DKs") and divided by

257 The 20 statements, in the sections used in the IMC mini-audit, are discussed below to explain the meaning and purpose(s) of every section. The IMC miniaudit questionnaire is found in Appendix A. a Organizational infrastructure: "In our company, the process of managing brand/company reputation and building stakeholder relationships is a cross-functional responsibility that includes departments such as production, operations, sales finance and human resources, as well as marketing." The aim of this statement is to determine whether RAU sees integration as a cross-functional responsibility that involves all sectors of the organization. "The people managing our communication programmes demonstrate a good understanding of the strengths and weaknesses of ALL major marketing communication functions such as direct response, public relations, sales promotion, advertising, and packaging when putting marketing communication plans together." This statement aims to determine whether RAU's Division of Public Relations is seen as knowledgeable and competent in the execution of its work within an IMC framework. "We do a good job of internal marketing, informing all areas of the organization about our objectives and marketing programmes." The aim of this statement is to determine how internal marketing is seen in the organization and whether all the areas of the organization are informed about the objectives and programmes of the marketing communication function of the organization. 236

258 "Our major communication agencies have at least monthly contact with each other regarding our communication programmes and activities." The aim of this statement is to establish whether there is constant communication between the communication agency and the organization regarding communication programmes and activities. The aim of this subsection of the IMC mini-audit is to determine whether there is openness in the organization regarding the communication programmes and activities, and to determine whether the organizational infrastructure is in place to support integration. a Interactivity "Our media plan is a strategic balance between mass media and one-toone media." This statement aims to determine whether there is a balance between the various methods of communication used to address various publics of the organization, to determine whether the organization is making the most efficient media buys. "Special programmes are in place to facilitate customer enquiries and complaints." The aim of this statement is to determine whether there is proper two-way communication between the organization and the stakeholders, especially from the stakeholders' side. 'We use customer databases that capture customer enquiries, complaints, compliments as well as sales behaviour (e.g. trial, repeat, frequency of purchase, type of purchases)." This statement aims to determine whether there are mechanisms in place to record the communication from the side of the stakeholders. 237

259 "Our customer databases are easily accessible (internally) and userfriendly." The aim of this statement is to determine whether the information recorded from the stakeholders is freely available in the organization and easy to use. The aim of this subsection of the IMC mini-audit is to determine whether there are mechanisms in place for purposeful and useful two-way communication between the organization and its stakeholders. a Mission marketing "Our organization's mission is a key consideration and is evident in our marketing communication plans." This statement aims to determine the importance of using the mission in determining the reason for the existence of the organization and to determine whether the mission is integrated in the marketing communication plans of the organization. "Our mission provides an additional reason for customers and other key stakeholders to believe our messages and support our company." The purpose of this statement is to determine the importance of the mission in the existence and functioning of the organization when communicating with stakeholders. "Our corporate philanthropic efforts are concentrated in one specific area or programme." This statement aims to determine whether corporate philanthropic efforts of the organization are in line with the mission of the organization and part of the integration effort of the organization. 238

260 Thus, in summary, it could be stated that the aim of this subsection of the IMC mini-audit is to determine whether the organization's marketing communication efforts are tied to the organization's mission, whether the mission is a frequently communicated message to the stakeholders, and whether all aspects of the organization (including social responsibility) are linked to the mission of the organization. a Strategic consistency "All our planned messages (e.g. advertising, public relations, sales promotion, packaging) are strategically consistent" This statement aims to determine whether there is a consistency in the messages sent out by the organization through marketing communication functions. "We periodically review all our brand messages to determine to what extent they are strategically consistent." The aim of this statement is to determine whether the strategic consistency of brand messages is reviewed to make sure that they remain strategically consistent. "We consciously think about what brand messages are being sent by our pricing, distribution, product performance, customer-service operations, and by persons and organizations outside the control of the company." This statement aims to determine whether the strategic consistency of the messages the organization sends out is a top priority for the organization, even if they are brand messages sent out by people or organization over which the organization has no control. 239

261 The purpose of this section of the IMC mini-audit is to determine whether there is coordination of all types of messages of the organization that create or cue brand images, positions and reputations in the minds of customers and other stakeholders. a Planning "When doing our marketing communication planning, a SWOT analysis is used to determine the strengths and opportunities we can leverage, and the weaknesses and threats we need to address." This statement aims to determine whether the organization makes use of a structured evaluation of intemal and external situations that could help to position the brand better. "We use a zero-based approach in marketing communication planning" This statement aims to determine whether the objectives and strategies based on the current brand and marketplace conditions were documented, where the current conditions are considered and not previously documented factors that could influence the present marketing communication planning. "When doing annual marketing communication planning, we make sure intrinsic brand contact points are sending positive brand messages and that these contacts are being fully leveraged before investing in creating new brand contact points." The aim of this statement is to determine whether every brand-related, information-bearing interaction that a customer or potential customer has with a brand is in place before investing in creating new brand contact points. 240

262 The aim of this subsection of the IMC mini-audit is to determine whether the organization uses structured, scientific planning methods and strategies to establish two-way communication between the organization and its stakeholders. a Evaluating "Our company uses some type of tracking study to evaluate the strength of our relationships with customers and other key stakeholder groups." This statement aims to determine whether there are formal mechanisms in place to measure the intensity of the organization's relationship with customers and other key stakeholders. "Our marketing strategies maximize the unique strengths of the various marketing communication functions (e.g. public relations, direct response, advertising, event sponsorships, trade promotions, packaging)." This statement aims to determine whether the various marketing communication functions strengths are taken into consideration when planning the marketing communication strategy. 'The overall objective of our marketing communication programme is to create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups, and encouraging purposeful dialogue with them." The aim of this statement is to establish whether the overall marketing communication strategy is known to the organization and whether two-way communication is a top priority for the organization. 241

263 The aim of this subsection of the IMC mini-audit is to determine whether the organization uses structured evaluation procedures to establish two-way communication between the organization and its stakeholders. The analysis of this data gathered is discussed in section 6.9 of the chapter. In the following section the data gathering of the second phase of the study is discussed Phase two public relations in integrated marketing communication For the purpose of the second phase of the study, data was collected by using indepth interviews. The names and contact numbers of the heads of sub-divisions within the Division of Public Relations at RAU were obtained from Letitia de Wet (Head: Division of Public Relations, RAU at that stage), in an initial contact session on 20 February During this second phase of the data gathering, interviews were scheduled with the heads of sub-divisions of RAU's Division of Public Relations. It must be noted that the representatives of the sub-divisions were not interviewed in any order of preference and the interview schedule was based on the availability of the respondents. The interviews were conducted as per the schedule presented below. All the respondents were interviewed in their offices at RAU. This occupational context added formality to the interviews. NAME POSITION DATE AND TIME OFFICE NUMBER Dr Jimmy Ellis Head: Sub-division 11 March 2002 A Ring 213 of Community Relations and International Funding 15:00 Letitia de Wet Head: Sub-division 14 March 2002 A Ring 228 of Pubic Relations 9:00 242

264 Gert van Wyk Head: Sub-division of Alumni and RAU Foundation 18 March :00 A Ring 210 Table 6.2 Interview schedule It is important to note that 20 questions were prepared to ask during these interviews. These are discussed below in section to explain the meaning and purpose(s) thereof. During the first interview, the questions had to be adjusted to the level of knowledge of the respondents. The first interview can therefore be regarded as a pilot interview for this study, after which the questions were further adjusted based on the responses given by the respondents on certain questions. The questions asked in the interviews were mainly changed during the interviews, due to the lack of understanding of the meaning of the questions by some of the respondents. The actual (adjusted) questions asked in the interviews and the meaning and purposes thereof are discussed in section It is important to note that seven of the prepared questions were changed. The interview questionnaire can be found in Appendix B. With the knowledge and agreement of the respondents, the interviews were recorded for processing purposes by means of a Dictaphone Prepared interview questions "In your opinion, does RAU approach their marketing communication in an integrated manner?" The aim of this question is to establish the direction of thought used by the division, in other words, is integration a top priority for the division. "How does RAU make sure that messages sent to stakeholders have the same theme?" 243

265 This question aims to determine the mechanisms in place, to establish message consistency in the organization. "What is the corporate marketing communication objective of RAU?" The aim of this question is to determine whether RAU's marketing communication objective aims to establish integration within the organization. "What percentage of your marketing communication efforts would you say are specifically directed to these high-priority stakeholders?" This question aims to determine the importance of communicating and building relationships with these stakeholders. "Which marketing communication functions does RAU use to reach target audiences?" This question aims to establish whether RAU uses various marketing communication functions to communicate with stakeholders. "Which marketing communication function would you say is the most prominent in RAU's marketing communication strategy?" This question aims to determine single which marketing communication function used in RAU's marketing communication strategy is viewed as most significant "How would you define public relations for the purpose of your sub-division?" The aim of this question is set determine whether public relations is practised on a technical or managerial level, because this will influence the way public relations is practised in this division. "How would you describe the importance of public relations in RAU's marketing communication strategy?" The aim of this question is to establish the importance of public relations in RAU's marketing communication strategy. 244

266 9) "How does the Division of Public Relations use public relations as part of the planned messages used in the marketing communication strategy?" This question aims to determine how public relations is used in the planned messages as part of the Division of Public Relations. 10)"How would you describe the relation of the use of public relations to other marketing communication functions in your marketing communication strategy?" This question aims to obtain an indication of the relation of public relations used compared to other marketing communication functions. 11)"What types of public relations programmes does RAU use in its marketing communication strategy?" The aim of this question is to determine the variety of public relations programmes used in RAU's marketing communication strategy. 12)"How do these programmes relate to the overall marketing communication strategy?" This question aims to establish how these public relations programmes, mentioned in the previous question, relate to the overall marketing communication strategy and whether there is consistency between the two. 13)"Would you say that RAU's public relations strategy is based on RAU's corporate brand?" The aim of this question is to determine whether there is consistency between RAU's public relations strategy and RAU's corporate brand. 14)"How would you say is RAU's public relations strategy based on RAU's corporate brand?" 245

267 This question aims to determine which mechanisms are in place to make sure that RAU's corporate brand strategy and public relations strategy are in line. 15)"How does RAU use public relations to present itself to its stakeholders?" For the purpose of establishing how public relations is used in RAU's marketing communication strategy, the researcher wants to establish the techniques in which RAU uses public relations, specifically, to reach stakeholders. 16)"What programmes are in place to build the corporate identity of RAU?" This question aims to determine the specific methods used by RAU to build the corporate identity of the organization and how it relates to other marketing communication functions. 17)"How does the central mission of RAU anchor the public relations strategy within the marketing communication strategy of RAU?" The aim of this question is to determine the relation between the overall mission of RAU, the public relations strategy and the marketing communication strategy of RAU. 18)"How important do you think relationships are in the overall functioning of your division?" This question aims to establish if the Division of Public Relations at RAU functions in a customer-centric way. 19)"Who is responsible for building these relationships in your organization?" The aim of this question is to determine whether the division sees the building of relationships as an overall or specific function of a specific sub-sub-division of RAU. 20)"In your opinion, do you think that RAU has a balanced integrated marketing communication strategy?" 246

268 This question aims to establish whether RAU uses the various marketing communication functions in a balanced manner in RAU's marketing communication strategy Adapted questions asked during the interviews 'What is your sub-division's specific role in the overall functioning of RAU's Division of Public Relations?" The aim of this question was to identify the specific functions within each subdivision of the division briefly, and it served as an introductory question. "How would you describe the relation of the use of public relations to other marketing communication functions in your marketing communication strategy?" This question aims to obtain an indication of the relation of public relations used compared to other marketing communication functions. "How does your sub-division make use of public relations per se in your everyday functioning?" The aim of this question is to determine whether the respondents have an understanding of the public relations functions used in their sub-division, and to establish whether public relations is seen as an important part of the subdivision's functioning. "Do you see public relations as a technical support function in the functioning of your sub-division?" The aim of this question is to establish the perception specific of the role of public relations in the specific sub-division. "Do you see public relations as an integral part with a definite contribution to the overall functioning of the university?" 247

269 This question aims to establish whether the role of public relations in the greater university context is practised at a managerial or even a strategic level. 'Who is responsible for building these relationships in your organization?" The aim of this question is to determine whether the division sees the building of relationships as an overall or specific function of a specific sub-sub-division of RAU. 'Are databases important in the functioning of your sub-division?" The aim of this question is to establish whether programmes are based on the information obtained from the various stakeholders and whether if two-way communication is encouraged between the stakeholders and the organization. The analysis of the data collected and the analysis of the data collected will now be discussed. 6.9 DATA PROCESSING The data gathered in the previous section was processed as follows to arrive at the research results, discussed in the following chapter Phase one integrated marketing communication As per Duncan's IMC mini-audit (Duncan, 2001:727), the questionnaire is divided into five sub-sections. This was altered for the purposes of this study, in order to meet the criterion set in the hypothesis (H e and H f), in that the evaluation and planning stages should be studied in isolation, and not in unison. However, the questionnaire is set out in such a manner that these two stages are combined into one sub-section. When the results of this sub-section are processed, the results will be divided into those scores for questions pertaining to planning and those pertaining to evaluation, and these will be processed separately. Questions 248

270 15, 16 and 17 are deemed to relate to planning, and 18, 19 and 20 deemed to relate to evaluation. It is important to note, at this stage, that the questionnaires are handed to the respondents as originally set out, with questions 15 to 20 under the sub-section heading of "Planning and evaluating", and that the distinction between the nature of the questions is only made later, when the data is processed. The data processing of the data gathered in the IMC mini-audit was done in line with the requirements that Duncan proposes in his IMC mini-audit (Duncan, 2001:727). The analysis of data from phase one was done by using the Microsoft Excel Programme, since it allows for extensive analysis and manipulation of data in a multitude of ways. Babble (2002a:497) suggests the use of a data matrix for the representation of the data obtained. Black (1999:305) defines the data matrix as "any array of figures or numbers where the rows are the cases and the columns are the variables". The cells of the data matrix represent the actual values of each variable as they apply to a specific case, these cases being questions and respondents, depending in what format the data is viewed. These matrices are presented in Appendix C. The data obtained from the IMC miniaudit was processed in three ways. Firstly, the data gathered was processed to determine a result for each of the statements (questions put to the respondents) used in the IMC mini-audit. This was done by aggregating the scores for every statement individually, and then calculating the average score per statement. Thereafter, the result for each of the six sub-sections of the IMC mini-audit was established, by aggregating the scores attained for every sub-section, per individual questionnaire. This results in 15 totals per sub-section. For example, the total for sub-section 1 will be X, and for sub-section 2 Y and so forth, for all of the sub-sections. These totals are then aggregated, per sub-section for the entire sample. For example, this results in a total for sub-section 1, for all 15 respondents, and totals for each of the other sections, calculated in the same way. These totals are then divided by the number of respondents, which is 15. The result of this calculation is then an average score for every sub-section, for 249

271 the entire sample. These averages are then used to analyze the results for the sub-sections in isolation. Thirdly, the data is processed to determine the overall result of RAU, based on the IMC mini-audit. This is done by calculating the average per questionnaire (total for the questionnaire divided by the 20 questions), and then calculating the average for the sample by aggregating the average per questionnaire and dividing this total by the 15 questionnaires. These three categories of results are set to improve the depth of the conclusions that will be drawn from the results of the IMC mini-audit. Literature provides results for the overall averages attained in other studies, and does not detail results for question and sub-section averages. This causes some difficulty in the analysis of these two results, in this study, as no information could be obtained to benchmark the results. The overall average documented in these works is a score of 2.8. Given that no benchmarks are available for question and sub-section averages, it is assumed for this study that 2.8 should be a reasonable score against which to measure the scores attained in this study. This is assumed on the premise that if the overall average score available in literature is 2.8, then the average per question and sub-section should also be Phase two public relations in integrated marketing communication For the purpose of processing the data obtained from the in-depth interviews conducted, the Dictaphone recordings of the interviews were transcribed verbatim (transcriptions available on request). The questions stated in section are used as a guideline to determine specified categories, in order to facilitate data processing in this phase of the study. The following categories are identified: Sub-division's specific role within Division of Public Relations Integrated approach of RAU 250

272 Same underlying theme Sub-division's objectives Sub-division's mission in line with RAU's Mission Marketing communication functions Most prominent marketing communication function Public relations function Integral vs. Support 10)Public relations for other sub-divisions 11)Stakeholders 12)Brand 13) Relationships 14)Databases 15)Barriers The respondents' answers to the various questions were grouped and this process is referred to as categorizing (Straus & Corbin, 1990:63). The different responses were then placed into categories to reflect similarities and differences. These categories were used in terms of their properties and dimensions. The properties refer to the characteristics of a category and the dimensions represent the position of a property along a continuum (Neuman, 2000:417). The categories and the concepts pertaining to them are taken from the transcriptions and written as code notes. From the labels attached to the responses, the categories created and the analysis of the properties of the categories, the code notes form a summary of the similarities and differences between the interviewees to provide the background for the interpretation CONCLUSION In this study, a quantitative and qualitative research strategy was decided on as. most suited to the exploration of the concept of integrated marketing communication, and the role of public relations within it. The chosen 251

273 methodology is an explorative, case study perspective, where RAU is the case being studied. The research is divided into two phases: In phase one, quantitative research methodologies are used to determine where RAU stands on the integration scale as determined by the integrated marketing communication mini-audit. The integrated marketing communication mini-audit is a structured, written questionnaire that was distributed to all staff members in the Public Relations Division at RAU. Phase two is based on qualitative research methodologies to establish the role of public relations within RAU's integrated marketing communication approach. The research for this phase is conducted via in-depth, face-to-face interviews with the heads of sub-divisions in the Public Relations Division at RAU. The data obtained from the two phases is processed as follows: for the first phase, the formula of the integrated marketing communication mini-audit was used to derive an average score for RAU on the integration scale. Furthermore, the data from this phase was processed in three ways: firstly, the average for each statement in the mini-audit was established. Secondly, the average for the six individual sections was calculated, after which an overall average was established. The data obtained from phase two was processed, by transcribing the Dictaphone recordings verbatim. These transcriptions were used to identify categories from which the data could further be interpreted. The validity and reliability of the study was primarily assured through triangulation, to ensure data verification. In the next chapter, the results of the data obtained and processed in Chapter 6 are interpreted, to arrive at a final conclusion for the study. 252

274 253

275 CHAPTER 7 RESULTS, INTERPRETATION AND CONCLUSIONS 7.1 INTRODUCTION The methodological options exercised for the purposes of this research have been justified within the methodological context. The results obtained from the data processing within the two phases of this research project are presented in this chapter. The results of this study are primarily based on three key findings: firstly, the lack of core competency within the Public Relations Division, the lack of crossfunctional planning and operations within this division, and the lack of interactivity with stakeholders. To arrive at these findings, the focus will firstly be on the reporting of the results and the interpretation of phases one and two, presented separately, after which a combined interpretation of the results is then presented. The limitations for this study are then discussed. The chapter is concluded with suggestions for future research. It is important to note that given that no benchmarks are available for question and sub-section averages, it is assumed for this study that 2.8 (the suggested average for the overall result) should be a realistic score against which to measure the scores attained in this study. Therefore, the average per question and sub-section should also be

276 7.2 REPORTING AND INTERPRETATION OF RESULTS Phase one integrated marketing communication The data obtained from the IMC mini-audit was processed in three ways, as discussed in Chapter 6, section 6.9. The reporting and interpretation of these results are discussed, based on those three ways: Individual questions of the IMC mini-audit The averages for the individual questions in the IMC mini-audit are graphically summarized as follows: ==,AVERAGE Graph 7.1 Results of individual questions in the IMC mini-audit From these results of the individual questions in the IMC mini-audit, it can be stated that the results of 12 of the 20 questions are above the average of 2.8 and that by only looking at these figures, it could be interpreted that the organization should attain an above average score on the overall integration scale. It is however important to note that for the 8 questions that scored below the average 255

277 of 2.8, based on individual results, the average score is 1.8, significantly lower than the average of 2.8. It can therefore be argued that RAU has certain elements of integrated marketing communication relatively well implemented, but where it lacks integration, it has much on which to improve. The results of the individual questions are presented in descending order, to obtain a clearer understanding of the areas in which the Public Relations Division scored significantly higher or lower. Question Basic element of the statement in Average number the IMC mini-audit 20 Overall objective of marketing 4.60 communication programme 2 Core competency Planned brand messages' strategic 3.73 consistency 6 Infrastructure for customer enquiries Mission in communication planning Internal marketing Mission linked to customers Reviewing brand messages to maintain 3.60 consistency 19 Using strengths of marketing 3.60 communication functions 5 Balance of media Cross-functional operations Existing contact points vs. new contact 3.00 points 14 Unplanned messages SWOT analysis

278 18 Evaluate strength of relationships Accessibility of database Corporate philanthropic efforts Contact with communication agency Zero-based approach Usage of database 0.93 Table 7.1 Results of individual questions in descending order When looking at the results of the individual question values in descending order, question 20 had the highest score of 4.6. Question 20 refers to RAU's overall objective of the marketing communication programme and according to the high score in this question, the respondents know what is expected of them in achieving the desired end goal of the Public Relations Division. In this regard, very clear tasking occurs with regard to job descriptions. In setting the objectives of integrated marketing communication, the Division of Public Relations must take into account that in order to make these objectives obtainable and feasible, only two to three objectives at a time should be focused on. The question with the second highest average score on the integration scale is question two (3.87). According to the significantly high score of this question, it can be argued that the respondents feel that the staff members of the Division of Public Relations at RAU are knowledgeable and competent in the execution of their work within the integrated marketing communication framework. A possible subjective opinion is likely in this question as it could reflect on the abilities of the respondents. As per the literature review, it is important to note that when there is a reference to core competency, it involves three elements, namely, core competency in integrated marketing communication, competency in the functioning of the division and core competency in how the division functions within the greater organization (Duncan & Moriarty; 1997:72). It is thus evident 257

279 that the attitudes and orientation within the Public Relations Division are not an integrated marketing communication orientation. The significantly high average score of question 12 (3.73) means that there is control of the consistency of planned brand messages. The above average score of question 12 would indicate that set review mechanisms of planned messages in the Public Relations Division are in place to ensure strategic consistency of brand messages. Such control mechanisms include inter alia firstly a central control point, through which all communication must check for and secondly the technical marketing committee. This control by these mechanisms makes for a high score in the mechanisms in place to control strategic consistency of planned brand messages. Questions 6 and 9 similarly scored an above average score on the integration scale of the integrated marketing communication mini-audit with a result of From an organizational perspective, this implies that RAU has methods in place to facilitate customer enquiries and complaints. For example, a method used by RAU to assist with customer enquiries and complaints is the call centre of the University. Duncan and Moriarty (1997:46) specify that with regard to infrastructure for customer enquiries, the information obtained serves as a platform for the outside-in orientation (Schultz, 1993b:8). Such a platform would involve feedback loops in terms of organizational leaming. It is thus one thing to collect data, and quite another to utilize the data in strategic thinking and planning. Additionally, the above average result of question 9 (also 3.67) refers to the agreement on the importance of the mission when considering the planning of the marketing communication of the University. The strong realization of the mission in RAU's planning of the marketing communication indicates a realization of the importance of the mission in the overall functioning of the university in order to create an "integrity platform" and essence as well as humanizing the 258

280 organization (Bonar, 1996:31). The mission and vision are essential to achieve internal integration. Internal integration systems are directly related to the horizontal and vertical dimensions of the three-dimensional approach. Questions 3, 10, 13 and 19 equally scored an above average result of 3.6 on the integration scale of the integrated marketing communication audit. From the results obtained from question 3 (3.5), it can be deduced that the internal marketing is effectively managed in terms of intemal integrating mechanisms for alignment. Secondly, through question 10's above average score of 3.6, it is apparent that the application of RAU's mission on a practical level, such as the activities in its philanthropic programmes, provides further reason for customers and other key stakeholders to believe RAU's messages. Furthermore, this above average score indicates that the mission of RAU is reflected in the unplanned, planned, service and maintenance messages of the University. Therefore, according to Duncan and Moriarty (1997:132), through the above average score in question 10 of, in reality, applying the mission of the University practically, RAU shows that it has a purpose in addition to making a profit. This therefore shows that RAU has integrity, which is evident through its actions based on its mission (Gaines, 1996:22). This can further postulate that by practising mission marketing (as is evident from the high score in this question), it adds value and trust to the university and, in effect, builds brand relationships. Thirdly, through the similar above average result of Question 13 (3.6), this significantly high score can be interpreted as that in the Division of Public Relations, there is the periodic revision of all its brand messages to determine the extent to which they are strategically consistent. Once again, this result is significantly high because of the control exercised by the technical marketing committee to review RAU's brand messages to ensure the strategic consistency of its brand messages. 259

281 With the fourth score of 3.6, Question 19's above average findings on the integration scale can imply that the strengths of the various marketing communication vehicles as well as their weaknesses are taken into consideration when the Division of Public Relations plans RAU's marketing communication strategy. In effect, the division possibly applies one of the key underlying principles of integrated marketing communication by considering the optimal, integrated use of the most appropriate marketing communication vehicle(s) for achieving a specific marketing communication strategy (Duncan, 2001:529). Consequently, Question 5 scored above the average of the integration scale, with a result of 3.4. From this above average score, it is evident that the media plan that the Division of Public Relations uses, is a strategic balance between mass media and one-to-one media. This result emphasizes the finding from Question 19 as per the literature review, which highlights the importance of communicating by objectives. Thus, the most appropriate elements from the marketing communication mix are selected to suit the stakeholder groups respectively. RAU scored 3.13 in Question 1, which refers to the respondents feeling that at RAU, integration is a cross-functional responsibility, but not significantly so, because the score for this question is not significantly above average. Furthermore, this score of 3.13 on the integration scale proposes that the process of managing the brand or organizational reputation and building stakeholder relationships is not significantly cross-functional in nature to include various departments in the organization (Hamel & Prahalad, 1994:95). From RAU's score of 3.13 on cross-functionality, it can be interpreted that RAU's major departments, that touch the customer, do not necessarily work together sufficiently in planning and monitoring brand relationships, in order to assure ultimate consistency in the "say-do-confirm" (consistency triangle) of RAU. It should be noted that mechanisms such as the technical marketing committee 260

282 control message consistency only. Therefore, it is highly probable that any crossfunctionality that does occur occurs on a technical level. Question 17 did not score significantly above the average (2.8) with a result of Based on this result, it can be contended that RAU tends to be linear in terms of its usage of contact points to establish positive moments of truth in that RAU tends to emphasize existing contact points at the cost of establishing new contact points (Duncan & Moriarty, 1997:94). This implies that the inherent value of the integrated marketing communication mix, namely the variety of contact points means is reduced to that which is familiar. The focus in terms of levels of work is on maintaining service quality through technical control, attention to detail and reactive problem solving rather than proactive strategic positioning. The below average score of question 14 (2.67) is an indication that RAU does not significantly manage brand messages that are outside the control of the university. An important issue to note in this regard is that for integrated marketing communication to be practised efficiently and effectively, cognisance of the message typology as a whole needs to occur. The fact that RAU achieved an above average score for planned brand messages and a below average score for unplanned messages indicates that the reaching unity of effort will be impaired. For true strategic integrated marketing communication to be practised, it is necessary for RAU to manage all four elements of the message typology. A weakness in one will have a considerable effect on the impact of the practice of integrated marketing communication. It would appear as if RAU has not recognized that customers integrate the message of their own accord. Question 15's result of 2.33 is below the average of 2.8 of the integrated marketing communication mini-audit integration scale. This finding can be interpreted as that when the Division of Public Relations is doing its marketing communication planning, the lack of the use of a SWOT analysis to determine the strengths and opportunities that the division could leverage as well as the 261

283 lack of determining the weaknesses and threats of the division need to be addressed. This finding reflects the lack of a strategic orientation towards. integrated marketing communication. In integrated marketing communication, the SWOT analysis logically leads to zero-based planning (Duncan & Moriarty, 1997:149), because in zero-based planning, the tools that are used are based on the assessment of the SWOT analysis of what needs to be done (Schultz et al., 1993:12) and not based on the previous year's budget allocations. Therefore, by not having a significant degree of the utilization of a SWOT analysis, zero-based planning cannot take place effectively. The emphasis is therefore on maintaining quality of service rather than on improving service quality. The significantly below average score of Question 18 (2.07) can be interpreted as follows: It would appear that the Division of Public Relations does not use tracking devices to evaluate the strength of its relationships with customers and other key stakeholder groups. Consequently, RAU cannot be involved in a learning relationship with the stakeholders if it does not have mechanisms in place to measure those relationships (Duncan, 1997). Furthermore, RAU's ability to practise relationship marketing is inhibited, as it cannot treat different customers differently (a fundamental principle of relationship marketing) as it is not able to establish and value (as in the second step of the eight-step integrated marketing communication process) these customers. Subsequently, RAU cannot establish which stakeholders are the most profitable for the University, or nurture those relationships or prioritize them. RAU scored 1.80 on Question 8, which is significantly below the average of 2.8. This below average score is an indication that the customer databases at RAU are not sufficiently accessible (internally) and user-friendly. In line with the findings of question 18, question 8 reaffirms that it will not be possible to implement adequate relationship marketing strategies. A most significant outcome in this regard is that it is in direct opposition to the essence of integrated marketing communication in that without the customer databases, RAU cannot 262

284 create dialogue and it will thus be far more difficult to utilize this two-way communication. Furthermore, it therefore implies that RAU cannot effectively personalize its messages, because of a significant lack of access and understanding of the information in the database (Duncan & Moriarty, 1997:229). It is interesting to note that the infrastructure already exists to develop databases i.e. the gathering of the data can occur, yet accessibility to that data is limited. Once again, this impacts on the organization's ability to learn. Feedback loops, as stated earlier, are inadequate to facilitate organizational learning. The score of question 11 is below average (1.67) and it is therefore evident that RAU's corporate philanthropic efforts are not concentrated in one specific area of the University. The significantly low score of this question can be ascribed to the nature of RAU as an educational institution. In this educational domain, the philanthropic efforts are not only focused on one area of the University, but incorporate various projects such as the Carebique project (a social upliftment project in Mozambique) and the Adult Based Education and Training Centre within the broader community development area. Inherently, a greater affinity could be expected in the average scores of questions 9 and 11. However, in terms of the statement specifying one area of philanthropic efforts, it is possible that the respondents did not make the link with the mission of RAU, because RAU has philanthropic efforts in a diversity of areas. However, it should be related to the core business of the university. Projects may reflect fragmentation with regard to the core focus; thus, there could be many different projects concentrated around this. The result of question 4 (1.60) is significantly below the average of 2.8. The reason for this below average score on this question could be that RAU's Division of Public Relations does not make use of an outside communication agency so, in effect, it does not have contact with such an agency. However, in RAU's context, the function of an outside communication agency is fulfilled by an internal committee that determines the strategic orientation of the brand. From 263

285 this finding, it is obvious that the lack of contact with the group is significant. One of the barriers to integrated marketing communication is that communication is seen as low in priority. This is evident and the consequence is that those executing the integrated marketing communication strategy are not informed enough to guarantee a buy-in into the process. Furthermore, as per the third dimension of the three-dimensional approach, internal communication from management would also seem to be lacking in this regard. Management needs to drive this process and ensure that sufficient interdepartmental communication occurs. The low visibility of this function is more than likely due to an insufficient allocation of resources. This is recognized as a barrier to integrated marketing communication. This function is viewed as technical execution rather than of strategic importance because of the division's own positioning within RAU. The Public Relations Division RAU scored significantly below the average on question 16 (1.33) inferring that RAU does not significantly make use of a zerobased approach in its marketing communication planning. This score is also in line with the below average score of Question 15, in that not having a significant degree of the utilization of a SWOT analysis (question 15) means that zerobased planning cannot take place to a certain extent (question 16). Zero-based planning is one of the integral and fundamental aspects of the philosophy of integrated marketing communication, and yet it obtained the second lowest score in the integrated marketing communication mini-audit. The emphasis is therefore on maintenance vs. adaptive strategic functions. Question 7, the question with the lowest score on the integration scale (0.93), reflected a poor usage of databases. Duncan (2001:276) states that databases should be used to capture customer enquiries, complaints, compliments and sales behaviour. The implication of this result is the indication that, although RAU scored significantly high in obtaining information about customers (question 6), the below average score of question 7 (0.93) is an indication that RAU does not have mechanisms in place to utilize the information it obtained from the 264

286 customers effectively. From this result, linear thinking by RAU is evident, as although it obtains the information from customers, it does not effectively use the information to maintain and build relationships. This then results in an impairment for an organization in becoming a learning organization, because by not using the captured responses and the customer feedback, the organization cannot learn from its past experiences, and can in effect not create a learning organization (Kahan, 1997:1). By not having sufficient usage of databases, RAU cannot have a successful relationship between the University and the stakeholders, because there needs to be a relationship memory on the part of RAU, so that the University can act on the needs and wants of its stakeholders. These findings are directly in alignment with the findings relating to question 8 (accessibility of database). It is clear that a primary obstacle is RAU's philosophy surrounding the value and contribution that databases can play in effective integrated marketing communication. This underplaying in the importance of a database is in direct opposition with Duncan's expressed statement (2001:8) that integrated marketing communication can be integrated marketing communication only if data driven communication is a priority. The results of the individual questions can be grouped into six sub-sections. The interpretations of these results of the IMC mini-audit are discussed below Sub-sections of the IMC mini-audit The results of the various sub-sections of the integrated marketing communication mini-audit are shown in the figure below. 265

287 Ogrislicrel irfastructue Mssicn rraletirg BALEtirg Flaring Irtealivity 1ar-A ejc casistereg 12180figg PY 0329 Graph 7.2 Results of the sub-sections of the IMC mini-audit The averages of the various sub-sections are presented in a descending order, to obtain a clearer understanding of the areas in which the Public Relations Division scored significantly higher or lower. The scores of RAU's various subsections on the integration scale of the IMC mini-audit are as follows: Sub-section number Sub-section Average 6. Evaluating Strategic consistency 3.18 Organizational infrastructure Mission marketing 2.82 Interactivity Planning 1.87 Table 7.2 Sub-section results of the IMC mini-audit The evaluation sub-section had the highest score for a sub-section (3.22). This high score can be interpreted as a very structured way of evaluating the marketing communication strategies and programmes at RAU. The significantly 266

288 high score in this sub-section is possible because of the mechanisms in place to obtain the feedback received from customers through the continual research that the Division of Public Relations undertakes, for example customer service audits and customer satisfaction surveys among first-year students. These various mechanisms in place, however, measure very specific aspects within the Public Relations Division, and do not measure the holistic marketing communication function of the division and therefore not the greater efficiency of the Division of Public Relations. Therefore, a holistic and synergistic approach based on research findings will be more complicated. The sub-section of strategic consistency scored the second highest of the subsections (3.18) on the integration scale. The high score of 3.18 is however not reflective of the other sub-sections in the integrated marketing communication mini-audit as a whole, as those scores are inherently not in line with true strategic consistency because of the lack of a database, the lack of core competency, the lack of the use of a SWOT analysis and the lack of the use of zero-based planning. These characteristics of the other sub-sections are fundamental for the philosophy of true integrated marketing communication. Furthermore, because of a lack of these fundamental requirements of integrated marketing communication, RAU as an organization cannot reach the higher steps in the eight-step integrated marketing communication process as suggested by Kitchen and Schultz (2000). The reason for this is once again that the first, fundamental stages such as global customer/prospect databases (step 1) and customer/prospect valuation (step 2) are not in place. Therefore, RAU cannot reach the "utopian stage" of integrated marketing communication. Consequently, this above average score is an indication that the consistency referred to, is not strategic consistency, but a consistency of "one-look, one-feel". This refers in effect only to a low level of integration (stage two of integration image awareness) and therefore not true strategic consistency of relationship management integration (stage eight of integrated marketing communication). From a three-dimensional integrated marketing communication approach 267

289 viewpoint, this above average score on RAU's strategic consistency can be interpreted as that RAU meets the external dimension to a greater degree than it meets the other two dimensions (vertical and horizontal integration). For true integration to occur, all three dimensions need to be applied. The result for sub-section one, which focuses on organizational infrastructure, was just above average with the third highest score of Based on this score, it can be deduced that RAU's organizational structure does not significantly allow for cross-functional operations. Based on the just above average score of 2.85, from a three-dimensional approach of integrated marketing communication viewpoint, it is evident that RAU does not have significant integration on a horizontal level, as there is limited cross-functionality within RAU. As is evident in the literature review a potential reason why integration does not take place on a horizontal level, combined with a lack of cross-functionality, could be the possible turf battles between departments and divisions, which is one of the key barriers to integration. Sub-section three (mission marketing) scored 2.82 on the integration scale the fourth highest score for sub-sections. From this score, it is evident that RAU's marketing communication efforts are to a certain extent tied to the university's mission. It could however be argued that this just above average score is an indication that the RAU's mission is to a greater extent part of the setting of objectives to include the mission of the University, and possibly to a lesser extent part of the reaching of those objectives. The mission should be used as a guiding principle in selecting objectives not in terms of achieving objectives. For the interactivity sub-section, RAU scored 2.18 on the integration scale of the IMC mini-audit the second lowest score for sub-sections. This below average score on interactivity implies that RAU does not have significant purposeful, twoway communication with its stakeholders. This below average score in interactivity can be based on RAU still using the traditional promotional approach 268

290 (focused on transactions), which is primarily focused on sending messages, not an integrated marketing communication approach (focused on interaction) with purposeful dialogue. Furthermore, because it has a significantly low score on interactivity, it can be argued that there is no or limited provision for a mechanism to get continual, real-time feedback that could be used strategically to monitor and modify services as they are being developed and delivered (Fizdale, 1992:58). In essence, the below average score in this sub-section can also refer to RAU not taking advantage of new computer technologies and not having a corporate commitment to listen to its customers and therefore RAU does not gather information that could enable the University to customize messages. Based on these findings, it is evident that RAU does not have the desired infrastructure in place to utilize integrated marketing communication and can therefore not be a customer-centric organization. Service is seen as a product rather than a process. Then additionally, because RAU does not optimally make use of interactivity (and essentially of relationship marketing), it cannot truly move towards a leaming organization (Duncan, 2001:297) because of the lack of purposeful interaction between RAU and its stakeholders. The planning sub-section had the lowest score (1.87) of all the sub-sections. From this score, it can be deduced that in general the planning in RAU's marketing communication function does not take place in a structured way to establish two-way communication between the organization and its stakeholders. The reason for this significantly low score is that staff members in the Public Relations Division are aware of the tasks that they have to perform, but they are to a lesser extent aware of the role of their tasks within the plan of the greater organizational well-being. Furthermore, based on the lack of the use of a SWOT analysis and zero-based planning, it is evident that the focus of RAU's marketing communication is more short-term based, which is once again a barrier to integrated marketing communication in that this approach weakens RAU's ability to build a loyal customer base. For RAU, a long-term view is thus required, involving all parts of the organization to encourage purposeful dialogue and to 269

291 build relationships with its valued customers. This is not viewed as a strategic function, and is in reality practised as a technical execution. Organisational alignment is insufficient because of structural barriers. Brand teams are not integrated at a strategic level, only at the technical level. When referring to the scores of the sub-sections of the IMC mini-audit, it is important to note the major difference between the results of the planning and evaluating sub-sections. In practice, these two sub-sections should correlate, seeing that the goals of any programme of activity are set in the planning stages of such programme, and that the evaluation of these can only take place if it was stated clearly in the planning stages. This reinforces the notion that integrated marketing communication is applied on a technical level and not on a strategic level. The latter is an imperative for integrated marketing communication to work Overall results of the IMC mini-audit From the various sub-sections of the IMC mini-audit, RAU obtained an overall score of 2.67 on the integration scale. This is just below the average of 2.8, but significantly below a well-integrated organization score of 4.0 suggested by Duncan (2001:727). RAU's integration position compared to an average and an "above average" on the integration scale presented in Graph 7.3. IMC mini-audit comparison Value of IMC m ini-aud it A Seriesl Scores of organizations 270

292 Graph 7.3 Comparison of IMC mini-audit results From the results of the IMC mini-audit, RAU therefore needs to focus specifically on the area of strategic marketing communication planning and the area of interactivity, to become more integrated. Although the score of the organizational infrastructure sub-section is just above average, attention should also be given to this to ensure more efficient cross-functional operations in RAU. More emphasis should also be placed on the mission of RAU by relating all the activities and messages of the university back to its mission. Based on the overall results and interpretation thereof, the hypothesis stated in Chapter 6 needs to be tested. Hl: - The score of RAU on the integration scale according to the IMC mini-audit is Therefore, H1 must be refuted, because the average score for an organization on the IMC mini-audit scale is 2.8. Therefore, because RAU scored below average on the integration scale of the integrated marketing communication mini-audit, RAU as an organization is not sufficiently integrated. To be able to test the secondary issues that are directly related to the main hypothesis, the testing of the sub-hypothesis is as follows: Ha: - RAU scored 2.85 in the organizational infrastructure area of the IMC miniaudit. RAU's organizational infrastructure area is integrated, because it scored above average in this section. Therefore, Ha is accepted. Hb: - RAU scored 2.18 in the interactivity section of the IMC mini-audit. RAU's interactivity score is not above average. Therefore, Hb is refuted. - RAU scored 2.82 in the mission marketing section of the IMC mini-audit, 271

293 and is thus just above average in this section. Based on this score, He is accepted. Hd: - RAU scored 3.18 in the strategic consistency section of the IMC miniaudit. This score is above average and therefore Hd is accepted. He: - RAU scored 1.87 in the planning section of the IMC mini-audit and is thus below average in this section. Therefore, He is refuted. Hf. - RAU scored 3.29 in the evaluation section of the IMC mini-audit. RAU therefore scored above average in this section. Thus,Hf is accepted. Hg - Hg is accepted, because RAU scored above average in the organizational infrastructure section, and therefore RAU's various divisions are integrated. Hh: - Hh is accepted, because RAU scored above average in the organizational infrastructure section, with a score of Therefore, RAU's corporate learning is integrated. Hi: - Hi is refuted, because RAU scored below average in the section of interactivity. Therefore, RAU's area of stakeholders is not integrated. Hj: - Hj is accepted; because RAU's strategic consistency is above average. Therefore, RAU's area of brand positioning is integrated. Hk - This hypothesis is refuted, because RAU scored below average on the IMC mini-audit scale. Therefore, RAU's area of the "big creative idea" is not integrated. HI: - HI is accepted, because RAU scored above average on the evaluation 272

294 section of the IMC mini-audit. Therefore, RAU's area of the "big creative idea" is not integrated based on this hypothesis. Hm: - Hm is accepted, because RAU scored above average on the mission marketing section of the IMC mini-audit. Therefore, RAU's area of corporate mission is integrated Phase two public relations in integrated marketing communication In the category of the specific roles within the Division of Public Relations (Category 1), it was apparent that all three respondents had a very clear idea of their sub-division's specific function. Each respondent gave a thorough description of the function of the specific sub-division, but not necessarily their specific roles as part of the overall Division of Public Relations. The results of this category can be interpreted as that staff members in the Division of Public Relations have clarity about the tasks that they have to perform, but they do not understand the role of their tasks within the plan of the greater organizational functioning. It is thus likely that they do not understand alignment, and internal marketing and organizational structuring are therefore problems. It is therefore evident that there is a lack of cross-functional operations in the Division of Public Relations, where all the divisions and departments in an organization know what their specific role is within a certain section of the organization, as well as their specific role within the greater organization (Duncan & Moriarty, 1997:74). This is one of the barriers of integrated marketing communication and causes a problem from an integrated marketing communication perspective in the sense that there cannot be synergy in the organization if there is no clear understanding of a role in relation to the overall functioning of firstly the division in which it functions and secondly, in the overall organizational functioning (Prensky, McCarty & Lucas, 1996:176). A further result is that this appears to establish the functioning of the sub-divisions in functional silos and not as supporting functions of each other. This is clear from a statement made by one of the respondents that the three 273

295 sub-divisions should function on their own. This is in direct contrast to the integrated marketing communication approach, which proposes that all functions should work together in a cross-functional manner, because functional and departmental silos will get in the way of creating and retaining customers (Duncan, 2001:8). Furthermore, these silos will also prevent consistency in brand messages and obstruct the integration of the big creative idea in all messages. The results of Category 2 on RAU's integrated approach showed that the respondents were not unanimous in their responses. Respondent B felt that there had been a certain degree of integration within the organization, and that there was much improvement over the last three to four years in this regard. In relation to this view, respondents A and C were uncertain to the degree of integration in the organization by stating, "not to my knowledge and my understanding of integration" and that "I think they really try to market integrated, but I don't know how effective they are...". When looking at the results of category 2, it is clear that all three respondents were certain about the fact that there were procedures in place towards an integrated marketing communication approach for the organization. A significant response in this category was the response to the legitimacy of the marketing communication function of the organization: "...I don't know how legitimate the marketing function is on campus...". This is a serious concern from an integrated marketing communication point of view, in that this shows that there are turf wars in the organization, and this causes difficulty in the planning and monitoring of comprehensive communication programmes. These turf battles also seem to be fuelled by what is referred to as "back-stabbing", negative attitudes and threats because of a lack of core competency by most staff members. The problem with these turf battles (Schultz, 1993d:16) is that they motivate each side to become more cohesive in the biases and stereotypes of their abilities and their "opponent's" lack of abilities. It is recommended that based on the results of the two categories mentioned above, a cross-functional team should be assigned at 274

296 RAU. This cross-functional team could help diffuse the organizational conflicts that result from misperceptions or ignorance about what other divisions and groups in the organization are doing. This cross-functional team will not only enlighten each sub-division about what other sub-divisions and departments are doing to build stakeholder relationships, but also help each sub-division to have a more realistic perception of its own role within the organization. In Category 3, there was agreement that the policies and guidelines that are in place ensure consistency in the underlying theme of all the messages of the organization. One of the respondents however saw this as an obstacle in their functioning as the respondents sometimes want to go beyond standards to suit their message for a specific situation. From the results of Category 3, it is evident that all three respondents are aware of policies in place to ensure the same underlying theme for all the messages sent out by the Division of Public Relations and by RAU, in effect. It is however evident that the respondents are to a greater extent only aware of these policies, but do not implement them in a significant way, because of the lack of control mechanisms of these policies. Therefore, although these policies and procedures are in place, it seems that they are not seen in a very serious light, as one respondent pointed out that at times there is no time to follow the correct procedures and policies. From the results of this category it is evident that the marketing communication function at RAU is to a lesser extent enforced by management, which is a reason for concern from an integrated marketing communication perspective, because management should drive the idea of "unity of effort" within the organization (Duncan, 2001:94). It is recommended that these policies be implemented and controlled by a communication czar in the organization endorsed by the managerial level, because not only is it vital in integrated marketing communication that all messages have synergy, but they should also conform to a central positioning strategy and the core values of the organization. This refers to one of the very basic levels of integration (Caywood, 1998:xi), level two of integration of image integration where the organization should begin its pursuit 275

297 towards integration with the "one-look, one-feel" approach to move towards strategic consistency. The results from Category 4 focused on the various sub-divisions' objectives. From the interviews, it was evident that all the sub-divisions had a very thorough understanding of the objectives of their specific sub-divisions and that each subdivision was very focused on those objectives. The results of Category 4 can be interpreted as that each sub-division has a clear understanding of what the subdivision's role is within the greater Division of Public Relations. This category's results confirm the result of Question 20 in the integrated marketing communication mini-audit, in that the extent to which staff members are aware of the objectives for their specific division is the question with the highest score obtained in the mini-audit. This does not however imply that these objectives are strategically selected. They may be very clear on inappropriate objectives, which can be detrimental to overall organizational functioning. Category 5's results showed that there was not a clear understanding on how the sub-divisions' mission relates to the overall mission of RAU, and the respondents' answers varied greatly in this regard. The answers varied from that the sub-division is a support function for the organization to a repetition of the mission of RAU and not stating that the sub-division's mission related to that mission. Respondent C focused on the functioning of the sub-division, and how the sub-division's functioning fitted into the organization, therefore not focusing on the question asked. In comparison to these results, according to the results of Category 5, it is noticeable that the various sub-divisions do not have an idea of how their sub-division's objectives are related to the mission of RAU. From this, it can be accepted that each of the sub-divisions in the Division of Public Relations is to a great extent functioning on its own, and not in relation to the overall mission of the university. In effect, this again refers to the concept of cross-functional planning in the organization and that the sub-divisions should have an understanding of the greater organizational functioning. It further relates 276

298 to the aspect of mission marketing where the organization should promote its mission (externally and internally) and concentrate on the philanthropic activities that are supposed to reinforce the mission of RAU. This is especially true in the Division of Public Relations where one of the sub-divisions focuses strictly on community relations. Once again, this points to the division lacking internal alignment through internal branding efforts. It was clear from the results of Category 6 that the respondents were not familiar with the term of "marketing communication functions" and the term had to be explained before the respondents were able to respond to the questions in this category. The respondents were however still confused by the type of marketing communication functions that exist and only one of the respondents could give an indication of the marketing communication functions used within this division. The marketing communication functions mentioned were advertising and direct marketing. Publicity and in-house publications were also mentioned, which were categorized under the function of public relations. It is important to note that the function of public relations per se was not mentioned by one of the respondents. It was evident from the obtained data that only one of the interviewees is familiar with the marketing communication functions. This is however a problem, coming from the assumption that the heads of sub-divisions within the Division of Public Relations should have a thorough understanding of the basic concepts in the field. From the results of Category 6, it was therefore evident that there is a major shortcoming in subject-related knowledge in the division. Even after the explanation of the terms, two of the respondents still did not understand the concept of marketing communication functions and answered very broadly. In integrated marketing communication terms, this occurrence is referred to as a lack of core competencies. This could point to a level of unconscious incompetence. In referring back to core competency, from an integrated marketing communication perspective, a marketing communication manager needs three 277

299 levels of core competencies. The first level is knowing what the organization's core competencies are and then making sure they are supported by the functionaries. The organization's core competencies are what give it its competitive edge. Another important element of the organization's core competency should be an organization's mission. This should help determine how the core competencies are packaged and presented (Duncan & Moriarty, 1997:192). Therefore, a correlation can be drawn between this first shortcoming in the organizational core competency in the Division of Public Relations and the lack of understanding of the sub-divisions' roles related to the mission of RAU (Category 5). The second level of core competency is an understanding of how the organization "works" which is generally a problem in larger organizations such as RAU for the reason that there is a lack of involvement with, and interest in, the skills and techniques in other departments in the organization (Duncan & Moriarty, 1997:193). Once again, it refers to a failure in internal branding rather than external insuffiency. From RAU's perspective, this imply that the subdivisions in the Division of Public Relations at RAU do not have an interest or involvement in other sub-divisions. This lack of involvement makes it more difficult to network internally and position staff and programmes in the organization. The third level is having a core competency in the subject of marketing communication and managing stakeholder relationships. All the people in the marketing communication department of an organization need an understanding of, and a genuine respect for, each of the major marketing communication functions. They need to know how these tools complement each other and which can be use with the most impact and greatest cost efficiency (Duncan & Moriarty, 1993:193). In applying this third level of core competency to the Division of Public Relations the creation of core competencies will mean that staff members in the Division of Public Relations should acquire the fundamental competency and understanding of the field of integrated marketing communication. Furthermore, it will also ensure greater realization of synergy where messages reinforce each other and their strategic timing results in greater impact. 278

300 In Category 7, the respondents focused on the marketing communication-related functions (because of the lack of knowledge explained in category 6) used by their sub-division and not on the most prominent marketing communication function of the division. These functions varied again from "community outreach" to all the marketing communication functions being used equally. This can however not be a valid answer, because of the lack of knowledge of the marketing communication function available. Respondent B focused on the idea that the function used varies according to the specific target market and that there are different campaigns for each target market. The respondent referred to advertising and "publications or newsletters" as frequently used functions in the Division of Public Relations. The results from Category 7 indicate that most marketing communication functions play an equal role in the overall functioning of the division, although there is a tendency to focus significantly on advertising. This notion that every marketing communication function has the same chance of being used in the strategy is in line with the integration approach (Duncan, 2001:291). It is possible that they do not have an integrating vision i.e. that they are all managing 'strategic relationships and therefore quite often define their function in technical rather than strategic terms. This category was specifically included in the study to determine whether the name of the division (Division of Public Relations) would impact on the use of marketing communication functions, as the name of the division implies the use of public relations as a main function in the division. It can however be said that based on the results of the interviews, this idea is proven wrong and that public relations plays an equally important role in RAU's marketing communication strategy, compared to other marketing communication functions. However, the public relations practised in the Division of Public Relations is focused on the tactics and tools of traditional public relations, and further significantly focused on the traditional role of communication technician; therefore, not focusing on strategic or marketing public relations, and how it can add value in terms of the overall integrated 279

301 marketing communication approach, but still focusing on the tools and tactics of traditional public relations. From Category 8, it is clear that all three respondents acknowledge the use of public relations in the various sub-divisions, but the respondents are uncertain about their role in saying in the one sentence that public relations is a "great part of the functioning of our sub-division" and in another that the respondent is "hesitant to call the major function a public relations function...". Respondent B stated that public relations is practised on a broad level of relationship building in the organization. Respondent C was incidental in this category by stating that "we talk on a regular basis". From the results of Category 8, it is clear that there is an acknowledgement of the use of public relations in the Division of Public Relations. The use of public relations is not seen as a significant marketing communication function in this division, although using the name of "Sub-division of Public Liaison" in the "Division of Public Relations" implies the prominent use of public relations as a marketing communication function. In Category 9, the respondents' answers varied in that they viewed public relations in different ways. Respondent A views public relations as a support function for his sub-division, Respondent B views public relations as "an overall support structure...not only technically but also strategically.." and respondent C views public relations as an integral part of that sub-division's functioning. Based on the results of Category 9, the following conclusions can be drawn. In this category, there is a difference in opinion on the importance of public relations in the sub-divisions. Respondent C referred to public relations as an "integral part" of the functioning of the one sub-division and stated further "...it is the whole time a public relations exercise...". This "integral" role of public relations can however not be classified as public relations practised on a managerial or strategic level, as the respondent referred to the task of public relations as event management and the production of publications. This in fact refers to the technical function of public relations, which focuses on writing skills and organizing skills. 280

302 Respondent A described the role of public relations in that the sub-division in contrast to Respondent C as a support function delivered by the sub-division of public liaison. From this response, it is evident that public relations is seen and practised on a technical level, again focusing on event management or as the respondent referred to as "planning a function..." and the production of publications. It is therefore evident that public relations is still seen as being practised on the communication technician role level of traditional public relations, and not as an active marketing public relations approach (on a strategic level) of the new marketing-oriented approach to public relations. In Category 10, the respondents were asked to discuss how the sub-division of public liaison is used by other sub-divisions. When referring to the results of Category 10, it is important to note that Respondent A feels very strongly about the fact that the three sub-divisions as they stand "should function on their own...". It is evident that internal conflict is ever-present between the various sub-divisions, which impacts negatively on the Division of Public Relations as it is a barrier to integration. Respondent C shared this notion and stated: "I have to do a job and cannot always wait for the public relations department...". This can be interpreted as that the sub-division would prefer working on its own with rigid borders between the sub-divisions. This would however, mean that it would be impossible for people who need to work together to do so. A basic premise of integrated marketing communication, as explained in the literature study, is that critical processes such as managing customer relationships should not be restricted by functional walls and barriers (Duncan, 2001:92). Integrated marketing communication as emphasized by the interpretation of the results of this category calls for more than new lines on an organizational chart. Again, it refers back to the understanding of other functions within the organization besides the area of specialization this again refers back to core competency. Therefore, the working together of sub-divisions is essential from an integrated marketing communication perspective. From the public relations sub-division perspective, they see themselves as "ever-present in the other two...". Thus, 281

303 seeing themselves as a necessity for the other two sub-divisions' functioning it is recommended that the Division of Public Relations should consider restructuring towards more centralized control, strategy and planning to be able to deal with the stakeholders more effectively. Based on the idea of centralized control, it is suggested that the main functions at RAU that actively deal with the most important stakeholders of the University should be centralized. Therefore, it is suggested that the Student Services Bureau (purely the recruiting side), which deals with the development and maintenance of stakeholder relationships (student relationships), should be incorporated in such a new structure for the division, as this is one of the major contact points with potentially profitable customers that should be managed and controlled. This refers to a lack of coherence in terms of organizational mission. The focus is therefore on individual interest rather than organisational goals. From Category 11, it was clear that all the sub-divisions had a clear understanding of their sub-division's various stakeholders, and had various programmes in place to communicate specifically with a targeted stakeholder group. The aim of this category was however to establish (1) if respondents had a clear understanding of the stakeholders targeted by each sub-division and (2) to establish the techniques in which RAU uses public relations specifically to reach stakeholders. From the results of this category, it can be said that although the respondents had a clear understanding of the various stakeholders, and although all three respondents agreed on the fact that different programmes are addressed at different stakeholder groups, not one of the respondents could clearly indicate the specific public relations techniques used for those stakeholders. Therefore, it can be argued that the sub-divisions know what their specific tasks are in order to reach the stakeholders, but that they do not know how to implement the tasks to be able to reach those stakeholders. Furthermore, the result of this category refers to the interpretation of the results of Category 6, where the problem is a lack of core competency in the specific field. The respondents did not have the knowledge to answer the question specifically and 282

304 therefore gave general answers such as "visits to regions..", "extending international linkages, establishing networks, providing client services to visiting scholars and students...", focusing on the general roles of the sub-divisions. In Category 12 there was disagreement on whether RAU is a brand. Two of the three respondents felt that RAU should be marketed as a brand and that the marketing communication programmes are directly in line with this brand of RAU. From Category 12 when focusing on RAU as a brand, it can be interpreted that there is insufficient "buy-in" from all sub-divisions that RAU must be seen as a brand in order to position RAU strategically in the marketplace. This can cause differences in the "say-do-confirm" of messages sent out by the university (Duncan, 2001:327). Furthermore, differences in the consistency triangle can result in RAU not being able to identify gaps in its brand communication, resulting in an insufficiency in alerting RAU to potential stakeholder relationship problems (Duncan & Moriarty, 1997:91). From an integrated marketing communication perspective, it is crucial for top management to support and advocate this approach in the organization, which would further lead to the internal support of this approach. It is therefore recommended that RAU launch an intensive internal marketing communication programme, not only to inform staff, but also to empower staff with the core competencies to be able to deal effectively and efficiently with the stakeholders; furthermore, to explain specific functions for specific sub-divisions in building a stronger brand for RAU. In Category 13, two of the three respondents felt that relationships are the core of the division. One respondent worded it as "...that is what it is all about...". The other respondent was not sure that relationships could be called the core of what that sub-division is doing. From the results of Category 13, the following interpretations can be made: all three respondents felt that relationships were a very important part of their functioning. It is however alarming that Respondent A is in a sub-division where the core of the sub-division is to build, maintain and strengthen relationships and makes the statement that "..not sure I would call 283

305 them [relationships] the core of what I am doing..". Therefore, it is recommended that all staff members should (1) have a clear understanding of the specific requirements and expectations within a sub-division and (2) this again refers back to the need to have core competencies within the division. It is however clear that there is a cognisance of stakeholder overlap and from an integrated marketing perspective, the Division of Public Relations is on track in developing and managing relationships with these stakeholders by treating each stakeholder group as a target market with its own objectives and message strategy. The reason for this is that not all customers are equally important to the organization, and RAU should therefore identify its most profitable customers in the value field of stakeholders and retain and nourish relationships with those. From Category 14, it was clear that all three respondents felt very strongly about the use of databases in the functioning of their divisions, and each division relied heavily on such databases. It was however clear that the respondents were enthusiastic to expand the usage of such technologies, but there is a need for qualified staff to maintain these databases. From Category 14, it can be argued that databases seem to play a major role in the functioning of all three subdivisions. This is also in line with the integrated marketing communication perspective, where building and managing databases to retain customers rather than just acquiring new customers are essential (Schultz et a/., 1994:64). It is however recommended that databases become a more integral part of the functioning of RAU from a stakeholder relationship point of view. This means that databases should be the centre of the functioning of the Division of Public. Relations, because without a full-time well-managed programme of building and using databases, it will be difficult, if not impossible for RAU to create personalized communication with stakeholders. The barriers that emerged from Category 15 ranged from an ITS system that is not functioning sufficiently, time constraints, conflict and as one respondent put it "perhaps a bit of know-how". The barrier that all the respondents agreed upon 284

306 was the lack of staff capacity. These results of Category 15 are useful for the study in that there is agreement on the lack of human capacity in the Division of Public Relations. This can be overcome either by using an integrated external communication agency not only to relieve the workload of the division but also to contribute to the division from an objective perspective, or it can be overcome by appointing more staff with the relevant core competencies. The internal marketing communication campaign suggested for Category 12 could also reduce the internal conflict in the division as well as the need for "a bit more know-how". 7.3 CONCLUSION When comparing the findings of the two phases of the research, the following conclusions can be drawn from the study: Firstly, when comparing the score of the IMC mini-audit on organizational infrastructure and the results from phase two, it is evident that there is a possible discrepancy between the two phases' results. The organizational infrastructure sub-section of phase one indicates a fairly high score in this sub-section, implying effective cross-functional operations in RAU. In contrast to these results, the results from phase two indicate a major lack of cross-functional operations in RAU. The respondents perceiving their functioning in this division as an integrated approach could cause this discrepancy, where in reality they do not have the knowledge to see that their division is not functioning in an integrated manner. Secondly, in comparing the sub-section of interactivity and the categories of phase two related to interaction with the stakeholders, it is apparent that although RAU scored below average in this section of the IMC mini-audit, there is agreement from the results of phase two that RAU should focus on this area of. integrated marketing communication. There is a definite need according to the results of this section for interactivity that would ensure the integration of 285

307 customers and stakeholders into the planning and development of processes at RAU. Furthermore, the interactivity needed also implies that RAU must place emphasis on receiving messages as it does sending messages. In relation to this finding is the result of phase two focusing on databases. From these results, it is evident that there is a need for more effective and ongoing management and the use of databases in the Division of Public Relations. If the databases were then in place, it would make interactivity with the stakeholders easier and more targeted, because of the nature of the information obtained through interaction. By using this information, RAU could communicate more effectively with the stakeholders based on the needs identified by means of the databases. Thirdly, the results of the mission marketing sub-section of the IMC mini-audit are in direct line with the results of the second phase of the study. It is evident that there is an awareness of the mission of RAU, but this mission does not play a conscious part in the general functioning of the university. The conscious inclusion' of the mission in activities not only internally but also externally will strengthen RAU as a brand and motivate staff. This refers therefore to a lack of organizational alignment and a need for integration. In addition, it will also streamline the integrated marketing communication processes because it fosters associations and thus synergy among departments and outside stakeholder groups. When comparing the results of the two phases related to strategic consistency, the following conclusions can be drawn. Although there is a high score in strategic consistency according to the IMC mini-audit, it is recommended that RAU reinforce the message of the policies and procedures to ensure consistency and have stricter control mechanisms (for example a communication czar) in place, to ensure that the sub-divisions do not use their "own" messages, even if there are time constraints and even if the messages sent out are informal. All RAU's brand messages should have the same underlying theme, and there should be consistency in the brand messages sent to all the stakeholders. RAU 286

308 should realize that consistency must begin with brand positioning, which is based on core values, selling promises and distinctive features. Here, it is important for all the parties involved in RAU to see RAU as a brand. All RAU's messages planned, product, service and unplanned must complement and reinforce the brand position. To ensure strategic consistency even further, it is recommended that a consistency strategy be developed to address the problem of overlapping stakeholders and the tendency of stakeholders to integrate the wide range of brand messages that they continually receive automatically. Furthermore, managing strategic consistency across all four message types will create an added value for the RAU brand because this consistency helps build long-lasting relationships by increasing trust, increasing message synergy, and eliminating contradictory messages of the university. From the findings of the study, it is evident that there is definitely a lack of strategic planning in the marketing communication efforts at RAU. Based on the results of the IMC mini-audit, this is the lowest score of the mini-audit, and therefore extra attention should be given to this aspect of integration. Scientific methods of planning such as using a zero-based planning strategy are suggested. Based on the above, it might be possible that sufficient planning took place with regard to the marketing communication efforts of RAU, but that this planning was not well documented or communicated to the rest of the Division of Public Relations. Thorough documentation and communication of the planning of the marketing communication efforts are therefore suggested in this regard. From the three-dimensional approach of integrated marketing communication, it is evident that RAU is significantly integrated on an external dimension, although a higher degree of consistency is required in the "say-do-confirm" of the strategic consistency triangle. Therefore, it is necessary that RAU align everything it does (and does not do) in order to create a balanced strategic consistency triangle and in effect a well-integrated external dimension. RAU is also to a significant extent integrated in a vertical dimension, although greater control from management is 287

309 required to drive the process of integrated marketing communication. A reason for concern with regard to the three-dimensional approach is that RAU is significantly lacking in the horizontal dimension, in that cross-functional operations are lacking to a great extent, thereby fuelling turf wars and the isolation of the various functions and departments at RAU. The shortcoming in the horizontal integration therefore impacts on RAU's "unity of effort", which is required for integrated marketing communication. From the findings, it is however necessary to point out that because of a lack of core competencies with regard to the respondents, it was difficult to determine the exact role of public relations within RAU's integrated marketing communication approach. It can however be concluded that public relations is still practised at RAU on a technical, supportive level and is not part of the strategic and managerial planning of RAU. It is also evident that traditional public relations still plays an important role within the Division of Public Relations, but there is no realization of the functions of "the new image of public relations" as explained in the literature study. The name of the Division of Public Relations is also confusing, as it implies that the majority of the functions in the division are public relations based. It is therefore suggested that this division changes its name to a more descriptive term that reflects the range of functions performed in the division. From the results and the interpretation thereof, apart from the recommendations made throughout the interpretation of the results, the following general recommendations can be made for RAU. 7.4 RECOMMENDATIONS FOR RAU From the results of the research, it is evident that there are fundamental concerns for RAU regarding its integrated marketing communication. Six general recommendations can be made for RAU, based on the results of the study: 288

310 1) RAU should engage in cross-functional operation and structure, because integrated marketing communication is organizationally dependent. It is recommended that RAU put a cross-functional team in place to minimize isolation and narrow perspectives in the organization, and to reinforce the expertise of the various specialists at RAU, by: monitoring the organization's brand equity; planning across sub-divisions; allocating budgets to leverage positive messages and address conditions responsible for sending negative messages; and resolving conflicts that are barriers to integrated efforts at RAU. 2) It is a point of necessity for RAU to invest in improving the core competencies of staff within the Division of Public Relations, so that staff have: knowledge of RAU's core competencies and an assurance that staff members' work supports this; understanding of how RAU 'works', creating an interest in the skills and techniques in other areas of RAU, including alignment and coherence; a core competency in integrated marketing communication and managing stakeholders; and the ability to attract and retain competent staff. 3) An in-depth internal marketing communication strategy should be launched as a high priority. RAU will only be able to ensure integrated marketing communication within the organization if employees are empowered and informed, and if the following is done: They are informed of their role in satisfying customers. They are informed of their role in RAU's success. They must be rewarded on a balance of their individual performance and the overall performance of RAU. 289

311 They should be listened to when they have ideas on how to serve the stakeholders better even when those ideas involve other areas of operation at RAU. This involves establishing appropriate feedback loops to facilitate organizational learning. They should be given access to customer information files and other databases that enable them to make quick and knowledgeable responses. RAU should invest in more effective and ongoing full-time management and building of databases in the organization, available to all employees. Furthermore, the information in the databases should be used not only to collect data, but rather to turn this data into actionable marketing communication strategies and programmes. The re-naming of the Division of Public Relations is suggested, as the current name implies that public relations is the core function of this division. The current name tends to focus on the traditional promotional approach of marketing communication, although the practical functioning of the division seems to fall into the integrated marketing communication approach. The three sub-divisions within the Division of Public Relations tend to function separately, and not as one large division, because of turf battles and internal conflict between staff members. This is a major barrier to the integration process, and it is therefore recommended that the following steps be taken in this regard: Centralized control of all communication functions within RAU, which should be controlled strictly. Restructuring of the division to move from a brand-focused to a customer-focused structure so that RAU becomes externally rather than internally focused. Integrated marketing communication must start at management level and filter down through the entire organization. In other words, top management must show an understanding of 290

312 commitment to integrated marketing communication and must actively support this approach and be part of the brand team, ensuring organisational buy-in. The whole of RAU must commit to the customer. It must identify, learn about, work with and be concemed with the customers at all times and at all levels, including internal suppliers. The total organization must recognize that communication is one of its most important competitive weapons. Public relations must be an integral part of the functioning of RAU and not only an integral part of the Division of Public Relations. This means that public relations should be practised on a true strategic level in the organization; therefore, that a marketing public relations approach should be followed, away from the traditional approach to public relations practised currently. 7.5 LIMITATIONS Any study has inherent and specific limitations, and for this study, the following limitations are identified: The study is case specific, and therefore the results cannot summarily be extrapolated to the general population. There is a lack of cases and examples within the sphere of integrated marketing communication in the South African context, and specifically in the sphere of universities. This resulted in the use of international examples of best practice in the study. The reason that there are no significant South African examples is that integrated marketing communication is not yet optimally utilized in this context. There is a lack of specific information with regard to the exact role of public relations within the greater sphere of integrated marketing 291

313 communication. This potentially causes difficulty in comparing results attained in this study with other studies. Elements within the sample of the respondents did generally not have the desired level of technical knowledge to answer the questions put to them, and some questions needed a level of clarification for them to answer them effectively. It would have been preferable to conduct the interviews and the questionnaires with some time lapse between the two events. This would have had the effect that the respondents would not be able to refer back to the questionnaires, in their thought process or verbally, and alter their responses to coincide with what they had responded in the questionnaires. The objective would have been to conduct the interviews some two to three weeks after the questionnaires had been collected from the respondents. Due to the unavailability of the respondents, as most had work and other commitments, this objective could not be achieved and the time lapse between the completion of the questionnaires and the interviews was far smaller than desired, often on the same day. 1.6 SUGGESTIONS FOR FURTHER RESEARCH This study has identified four potential topics for future research: Firstly, the level of integration at RAU could be measured from both an internal and an external perspective. Therefore, the IMC in-depth audit would be a suitable measurement tool. By using the IMC in-depth audit, it would examine RAU's organizational structure, as well as the extent of understanding of marketing communication objectives and strategies within the university and the extent to which people agree with them (the external perspective). It would also measure to what extent planned brand messages are strategically consistent. A. very important aspect of the IMC in-depth audit for the case study of RAU is the gap analysis, which compares what is actually being done to what managers and 292

314 executives say is being done. This is important for RAU because from the findings of this study, it is clear that the responses of the heads of sub-divisions to certain aspects differed greatly from the view of the staff members of the Division of Public Relations. Secondly, based on these findings, research could be done to develop a potential implementation model for integrated marketing communication in organizations. A model for the implementation of integrated marketing communication will be a very important contribution to the field, as there is in general a problem in the implementation of the concept into organizations. Thirdly, research could be done to determine a norm table of mean scores for South African universities as a benchmark for evaluating integrated marketing communication in the South African context. Fourthly, research could be done to evaluate the impact of internal marketing on integrated marketing communication, which could be implemented within an organization. 293

315 LIST OF SOURCES AAKAR, D.A. & BIEL, A.L Brand equity and advertising. Hillside, NJ : Lawrence Erlbaum. ABRAHAMSON, M Social research methods. New York : Prentice-Hall. ANCHROL, R.S Evolution of the marketing organization: New forms for turbulent environments. Journal of Marketing, ALLAIRE, P.A Lessons in teamwork in navigating change. Boston : Harvard Business School. ALLAN, G. & SKINNER, C Handbook for research students in the social sciences. London : Falmer. ANON The ARF model for evaluating media. Journal of media planning, 4(2):1-56. ANON PR as part of the global marketing mix. Marketing, 1:22. ANON. 1994a. 'Always' brand building. Advertising Age, 1:24. ANON. 1994b. Management wants integrated communication and impact measurement. Communication World, 11(10):32. ANON The future of spending. American Demographics, January:14. ANON Newsweek. August,

316 ANON World declaration on higher education for the twenty-first century. Paris : Unesco. Anon. 1999a. In brief. PR and Communications Africa, 6(2):5. ANON. 1999b. 100 Best companies to work for in America. Fortune, January,11: ANON. 2000a. Suid-Afrikaanse Universiteite: Herstruktureer vir oorlewing. RAU Rapport, 33(1):5-7. ANON. 2000b. Herkonfigurasie van hoer onderwys probleem of uitdaging. RAU Rapport, 33(2):2-5. ANON Top 10 SA universities. [Web:] [Date of access: 26 Feb. 2002]. BABBIE, E The practice of social research. Belmont : Wadsworth. BABBIE, E. 2002a. The basics of social research. Belmont : Wadsworth. BABBIE, E. 2002b. The practice of social research. Belmont : Wadsworth. BAILEY, K.D Methods of social research. New York : Free Press. BAILEY, K.D Methods of social research. New York : Free Press. BAKER, T.L Doing social research. McGraw-Hill : Boston. 295

317 BALDINGER, D.J Integrated communications and measurement: The case for multiple measures. (In Thorson, E. & Moore, J. eds. Integrated communication. Synergy of persuasive voices. Hillside : Erlbaum.) BARENBLATT, M. & SINCLAIR, R The South African advertising book. Make the other half work too. Johannesburg : Thomson. BARON, R.A. & BYRNE, D.E Social psychology. Massachusetts : Allyn and Bacon. BAYLEY, G. & NANCARROW, C Impulse purchasing: A qualitative exploration of the phenomenon. Qualitative Market Research, 33(1): BELCH, G.E. & BELCH, M.A Introduction to advertising and promotion: An integrated marketing communications approach. Chicago : Irwin. BELCH, G.E. & BELCH, M.A Advertising and promotion. An integrated marketing communications perspective. New York : McGraw-Hill. BENNETT, P.D Dictionary of marketing terms. Chicago : American Marketing Association. BENNETT, P.D Dictionary of marketing terms. Chicago : American Marketing Association. BERG, B.L Qualitative research methods for the social sciences. Boston : Allyn and Bacon. BERNARD, H.R Social research methods. Qualitative and quantitative approaches. Thousand Oaks : Sage. 296

318 BERNSTEIN, J PR in top communication role. Advertising Age, 28 November, 59. BERNSTEIN, S Get real! New ways advertisers are integrating communications into customers' lives. Journal of Integrated Communications, [Web:] [Date of access: 5 Jun. 2001]. BLACK, T.R Doing quantitative research in social sciences. An integrated approach to research design, measurement and statistics. Thousand Oaks, California : Sage. BLYTHE, J Essentials of marketing. London : Pitman. BONAR, G Mission marketing: Whose business is it anyway? Sales and Marketing Strategies and News, 31. BOONE, L.E. & KURTZ, D.L Contemporary marketing. Chicago : Dryden. BORMAN, K.M., LECOMPTE, M.D. & GOETZ,.P Ethnographic and qualitative research design and why it doesn't work. EReserves : UNISA. BOTSCHEN, G, THELEN, E.M. & PIETERS, R Using means-end structures for benefit segmentation: An application to services. European Journal of Marketing, 1(2): BOWERS, J.W. & COURTRIGHT, J.A Introduction to qualitative and quantitative research methods. New York : Wiley. 297

319 BRADLEY, J Adages. Advertising Age, March, 4:8. BRODY, E.W The domain of public relations. Public Relations Review, 18(4): BRODY, E.W PR is to experience what marketing is to expectations. Public Relations Quarterly, 39(2): BROOM, G.M. & SMITH, G.D Testing the practitioner's impact on clients. Public Relations Review, 5(3): BROOM, G.M., LAUZEN, M.L. & TUCKER, K Public relations and marketing: Dividing the conceptual domain and operational turf. Public relations Review, 17(3): BUDD, J Commentary: Communication doesn't define PR, it diminishes it. Public Relations Review, 21 (3): BURNETT, J. & MORIARTY, S Introduction to marketing communication: An integrated approach. Upper Saddle River : Prentice-Hall. CAREY, R Coming around to 360-degree feedback. Incentives, CAYWOOD, C., SCHULTZ, D.E. & WANG, P Integrated marketing communications: A survey of national customer goods advertising. Northwestern University Report. CAYWOOD, C.L. ( [email protected] ) Discussion of possible sources. [ to:] Niemann, I. ) Jun

320 CAYWOOD, C.L Integrated marketing communications: A competitive weapon in today's marketplace. Marketing Review, 45(29): CAYWOOD, C.L The handbook of strategic public relations and integrated communications. New York : McGraw-Hill. CESPEDES, F.V Concurrent marketing. Integrating product, sales and service. Boston : Harvard Business School Press. CHIOCCHI, R Inductive vs. deductive marketing: The paradigm shift. Journal of Integrated Communications. [Web:] [Date of access: 5 Jun. 2001]. CLARKE, S Brand-building through integration. Marketing, 17:27. COHEN, W.A The practice of marketing management. New York: Maxwell Macmillan. CORNELISSEN, J.P Theoretical concept of management fashion? Examining the significance of IMC. Journal of Advertising Research, 40(5):7-16. COULSON-THOMAS, C Marketing communications. Oxford : Butterworth-Heinemann. COURNOYER, D.E. & KLEIN, W.C Research methods for social work. Needham Heights : Allyn and Bacon. CRANE, D Invisible colleges and social circle: A sociological interpretation of scientific growth. Chicago : University of Chicago Press. 299

321 CROSS, R Customer bonding: Pathway to lasting customer loyalty. Lincolnwood : NTC. CROSS, R.H. & SMITH, J Customer bonding: Pathway to lasting customer loyalty. Lincolnwood : NTC Business Books. CURRY, W.N PR isn't marketing. Advertising Age, December 18:18. CUSHMAN, A.D New elements in marketing mixes make budget headway. Marketing News, 19:10. CUTLIP, S.M., CENTER, A.H. & BROOM, G.M Effective public relations. New Jersey : Prentice-Hall. DAVIES, J.C Dependency, self interest and relationship marketing: A view of the nature of exchange. Journal of Marketing Theory and Practice, 3(4): DEACON, D., PICKERING, M., GOLDING, P. & MURDOCK, G Researching communications: A practical guide to methods in media and cultural analysis. Belmont : Wadsworth. DENZIN, N.K Handbook of qualitative research. Thousand Oaks, California : Sage. DILENSCHNEIDER, R.L Marketing communications in the postadvertising era. Public Relations Review, 17(3): DILENSCHNEIDER, R Use ingenuity in media relations. Public Relations Quarterly, 22:

322 DILENSCHNEIDER, R.L Dartnell's public relations handbook. Chicago : The Dartnell Corporation. DILLMAN, D.A Mail and telephone surveys: The total design methods. New York : Wiley. DOZIER, D.M The organizational roles of communications and public relations practitioners. (In Grunig, J.E., ed. Excellence in public relations and communication management. Lawrence Erlbaum Associates : Hillsdale, New Jersey.) DRUCKER, P.F Marketing and economic development. Journal of Marketing, 22: DRURY, C Management and cost accounting. London : Chapman & Hall. DUNCAN, T. ([email protected] ) Discussion of possible sources. [ to:j Niemann, I. ([email protected] ) Jun. 12. DUNCAN, T Integrated marketing? It's synergy. Advertising Age, March 8. DUNCAN, T The concept and process of integrated marketing communications. Integrated marketing communications research Journal, 1(1):3-10. DUNCAN, T Integrated marketing communication. (Paper delivered as part of the course in Integrated marketing communication at RAU.) Johannesburg. (Unpublished.) 301

323 DUNCAN, T IMC. Using advertising and promotion to build brands. New York : McGraw-Hill. DUNCAN, T. & CAYWOOD, C The concept, process and evolution of integrated marketing communications. (In Thorson, E. & Moore, J. eds. Integrated communications: Synergy of persuasive voices. Hillside : Eribaum.) DUNCAN, T. & EVERETT, S.E Client perceptions of integrated marketing communications. Journal of Advertising Research, 33(3): DUNCAN, T. & MORIARTY, S Driving brand value: Using integrated marketing to manage profitable stakeholder relationships. New York : McGraw- Hill. DUNCAN, T. & MORIARTY, S A communication-based marketing model for managing relationships. Journal of Marketing, 2(1): DU PLOOY-CILLIERS, F Paradigmaverskuiwing in veranderingsbestuur: 'n kommunikasiebenadering. Dissertation Master of Arts. RAU. ELLSWORTH, J A sustainable brand. Adweek Southwest, 22(27):14. EPPES, T.E Rebirth of an agency: Challenges and implications of operating in an IMC framework. Journal of Integrated Communications. [Web:] [Date of access: 5 Jun. 2001]. EVANS, M. & MOUTINHO, L Contemporary issues in marketing. London : Macmillan. FINN, D Tie public relations to public good. Marketing News, 12:

324 FIZDALE, R Integrated communications: The whole picture. The Advertiser, Summer:58. FLETCHER, W Marketing skills can make sweet music together. Marketing, 12:22. FRANKFORT-NACHMIAS, C. & NACHMIAS, D Research methods in the social sciences. New York : St. Martin's Press. FREEMAN, R.E Strategic management: A stakeholder approach. Boston : Pitman. GAGE, T.J PR ripens role in marketing, Advertising Age, 5 January, GAINES, S Growing pains. Business Ethics, January/February:22. GARAVAN, T.N Stakeholders and strategic human resource development. Journal of European Industrial Training, 19(10): GOETZ, P. & LECOMPTE, M.D Social statistics for a diverse society. Thousand Oaks, California : Pine Forge Press. GOFTON, K Integrating the delivery. Marketing, 31:Vlll. GONRING, M.P Putting integrated marketing communications to work today. Public Relations Quarterly, 39(3): GONRING, M.P Global mega trends push IMC concepts to forefront of strategic business thinking. Journal of Integrated Communications. [Web:] 303

325 [Date of access: 5 Jun. 2001]. GORDON, G The traditional office gets the boot. Intelligence, GORDON, J.C Interpreting definitions of public relations: Selfassessment and a symbolic interactionism-based alternative. Public Relations Review, 23(1): GRANT, L Why FedEx is flying high. Fortune, 10: GRAY, R Does PR measure up? Marketing, 17: GREGORY, A Planning and managing a public relations campaign. A step-by-step guide. London : IPR. GRONROOS, C From marketing mix to relationship marketing: Towards a paradigm shift in marketing. Management Decision, 32(2):7-12. GRONSROOS, C The relationships marketing process: Interaction, communication, dialogue, value. Paper delivered: 2 nd WWW Conference on relationship marketing. 15 th November th February Hanken Swedish School of Economics Finland. GRONSTEDT, A The customer century. Lessons from world-class companies in integrated marketing and communications. New York : Routledge. GROVER, R The Disney touch: How a daring management team revived an entertainment empire. Homewood : Business One-Irwin. 304

326 GRUNIG, J.E Communication, public relations and effective organizations: An overview of the book. (In Grunig, J.E., ed. Excellence in public relations and communication management. Hillsdale, New Jersey : Lawrence Erlbaum Associates.) GRUNIG, J.E. & GRUNIG, L.A Conceptual differences in public relations and marketing: The case of healthcare organizations. Public Relations Review, 17(3): GRUNIG, J.E. & HUNT, T Managing public relations. New York : Holt, Rinehart & Winston. GRUNIG, J.E. & WHITE, J The effect of worldviews on public relations practice. (In Grunig, J.E., ed. Excellence in public relations and communication management. Hillsdale, New Jersey : Lawrence Erlbaum Associates.) HAGGAN, M.I Diagnosing organizations: Methods, models, and processes. Thousand Oaks, CA : Sage. HAMEL, G. & PRAHALAD, C.K Competing for the future. Boston : Harvard Business School Press. HANSTED, K. & HEMANTH, M.G Integrated marketing communications: A valuable tool in emerging markets. Journal of Integrated Communications. [Web:] [Date of access: 5 Jun. 2001]. HARRINGTON, A The E-corporation. Fortune, May, 24:

327 HARRIS, T.L The marketer's guide to public relations. New York : John Wiley & Sons. HARRIS, T.L. 1993a. How MPR adds value to integrated marketing communications. Public Relations Quarterly, HARRIS, T.L. 1993b. The marketer's guide to PR: How today's companies are using the new public relations to gain a competitive edge. New York : John Wiley and Sons. HARRIS, T.L Value-added public relations. The secret weapon of integrated marketing. Lincolnwood : NTC Business Books. HAYES, H.B The agency-within-an-agency approach swells in ad shops. Washington Business Journal, 13(11):34. HENRY, J Behind Saturn's door no.3:hal. Automative News, November, 30:6. HOWARD, C.M Marketing communications: Teamwork and sophisticated sequencing will maximize results. Public Relations Quarterly, 42(4): HUYSAMEN, G.K Methodology for the social and behavioural sciences. Halfway House, Midrand : Southern Book Publishers. HUTTEN, K.C Experts will huddle to ponder the meaning of integrated marketing. Advertising Age, 65(14):3. IMAI, M Kaizen The key to Japan's competitive success. New York : McGraw Hill. 306

328 JONES, J.P What's in a name? Advertising and the concept of brands. Lexington, MA : Lexington Books. JONES, T.O. & EARL, S Why satisfied customers defect. Harvard Business Review, KAHAN, R Editorial. DM News, 19(2):1. KATZ, D. & KAHN, R.L The social psychology of organizations. New York : Wiley. KATZ, H. & LENDREVIE, J In search of the holy grail: First steps in measuring total exposures of an integrated communications program. (In Thorson, E. & Moore, J. eds. Integrated communication. Synergy of persuasive voices. Hillside : Erlbaum.) KAUFMAN, S.R In-depth interviewing. (In Sankar, A. & Gubrium, J.F. eds. Qualitative methods in aging research. London : Sage.) KEEGAN, W., MORIARTY, S. & DUNCAN, T Marketing. Englewood Cliffs : Prentice Hall. KEUGMAN, D.M Advertising: Its role in modem marketing. New York : Dryden Press. KING, G., KEOHANE, R.O. & VERBA, S Designing social inquiry: Scientific inference in qualitative research. Princeton : Princeton University Press. 307

329 KITCHEN, P.J Marketing communications renaissance. International Journal of Advertising, 12(4): KITCHEN, P.J The marketing communications revolution: A Leviathan unveiled? Marketing Intelligence and Planning, 12(2): KITCHEN, P.J Public relations in the promotional mix: A three-phase analysis. Marketing Intelligence and Planning, 14(2):5-12. KITCHEN, P.J Marketing communications: Principles and practice. London : International Thomson Business Press. KITCHEN, P.J. & MOSS, D.A Marketing and public relations: The relationship revisited. Journal of Marketing Communications, 1(2): KITCHEN, P.J. & PAPSOLOMOU, I.C Marketing public relations: Conceptual legitimacy or window dressing? Marketing Intelligence & Planning, 15(2): KITCHEN, P.J. & PROCTOR, R.A The increasing importance of public relations in UK FMCK firms. Journal of Marketing Management, 7(3): KITCHEN, P.J. & SCHULTZ, D.E A multi-country comparison of the drive for IMC. Journal of advertising research, 39(1): KITCHEN, P.J. & SCHULTZ, D.E Communicating globally. An integrated marketing approach. London : NTC Business Books. KLAUS, L.A Motorola brings fairy tales to life. Quality Progress, June:

330 KLEINER, A The public relations coup. Adweek's Marketing week, 16:22. KOEKEMOER, L Promotional strategy. Marketing communications in practice. Kenwyn : Juta. KOHL!, A.K., JAWORSKI, B.J. & KUMAR, A MARKOR: A measure of market orientation. Journal of Marketing Research, 30: KOTLER, P A generic concept of marketing. Journal of Marketing, 36(2): KOTLER, P Mega-marketing. Harvard Business Review, 64(2): KOTLER, P Marketing Management. Englewood Cliffs, NJ : Prentice Hall. KOTLER, P Public relations versus marketing. Dividing the conceptual domain and operational turf. Public Relations Review, 24:1-11. KOTLER, P Marketing Management. London : Prentice Hall. KOTLER, P Marketing management. Englewood Cliffs : Prentice Hall International. KOTLER, P. & FOX, K Strategic marketing for educational institutions. Englewood Cliffs : Prentice Hall. KOTLER, P. & MINDAK, W Marketing and public relations, should they be partners or rivals? Journal of Marketing,

331 KREITZMAN, L Balancing brand building blocks. Marketing, 13 November, KRISHNAN, D. & CHAKRAVARTI, S Traditional advertising, customer attitudes and branding. The correlation. Journal of Marketing Management, 13(5): KUHN, T.S The structure of scientific revolutions. Phoenix : University of Chicago Press. KUHNE, T.S The structure of scientific revolutions. Chicago : University of Chicago Press. LANCASTER, G. & MASSINGHAM, L Marketing primer. London : Heinemann Professional Publishing. LAUTERBORN, R.F Truly integrated marcomm inevitable in new millennium. Advertising Age's Business Marketing, 84(11): LIGHT, L. & MULLEN, J Your brand is your future. A client's guide. American Association of Advertising Agencies, 39. LINTON, I. & MORLEY, K Integrated marketing communications. Oxford : Butterworth Heinemann. LOMAS, L An evaluation of early development in higher education quality management. Journal of Further and Higher Education, 20(3): LORD GROUP Lord group media department. Media adoption curve. 310

332 LOW, G.S Correlates of integrated marketing communications. Journal of Advertising Research, 40(3): LUCAS, D Let the customer lead the way to true integration. Marketing, 44:24. MACFARLANE, B The results of recession: Students and university degree performance during the 1980s. Research in Education, 49: MADER, R. & SEMENCHUK, J From production to connection: The new model for market organization. Journal of Integrated Communications. [Web:] [Date of access: 5 Jun. 2001]. MARCIA, S You'll wanna hold their hands. Business Week, March, 22: MARKELS, A Messages inundate offices. Wall Street Journal, B1. MAZUR, L The bigger picture. Marketing, 17:3. MCARTHER, D.N. & GRIFFIN, T A marketing management view of integrated marketing communications. Journal of Advertising Research, 37(5): MCCALLISTER, L The interpersonal side of internal communications. Public Relations Journal, 37: MCCOWN, G A new social contract for business. World Business Academy Perspectives. 7(4):

333 MCDANIEL, C Marketing's stepchild: Product publicity. Harvard Business Review, 36(5): MCGOON, C Cutting-edge companies use integrated marketing communication. Communication World, 16(1): MCKENNA, R Relationship marketing. Reading, Mass : Addison Wesley. MCMILLAN, T Web marketing today. Journal of Marketing Research, 10(2):1-14. MILES, M.B. & HUBERMAN, A.M Qualitative data analysis : A sourcebook of new methods. Beverly Hills : Sage. MILLER, D.C Handbook of research design and social measurement. Newbury Park, CA : Sage. MILLER, D.C Research in social work. New York : Columbia University Press. MILLS, C.W The sociological imagination. New York : Oxford University Press. MITCHELL, A A subtle approach to PR. Marketing, 28: MITCHELL R.K., AGLE, B.R. & WOOD, D.J Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4):

334 MONTGOMERY, S Glasnost-Perestroika: A model potemkin village. [Web:] Perestroika.html [Date of access: 1 Nov. 2001]. MOORE, J. & THORSON, E Strategic planning for integrated marketing communications programs. An approach to moving from chaotic toward systematic. (In Thorson, E. & Moore, J. ed. Integrated communication. Synergy of persuasive voices. New Jersey : Lawrence Erlbaum.) MORGAN, M Spiritual qualities of leadership in business: A letter to the next generation. World Business Academy Perspectives, 17(4):5-16. MORIARTY, S PR and IMC. The benefits of integration. Public Relations Quarterly, 39(3): MORIARTY, S The circle of synergy: Theoretical perspectives and evolving IMC research agenda. (In Thorson, E. & Moore, J. eds. Integrated communication. Synergy of persuasive voices. Hillside : Erlbaum.) MORIARTY, S IMC needs PR's stakeholder focus. Marketing News, 31(11):7. MORIARTY, S A selection of IMC quotes ( ). [Web:] hhtp://spot.colorado.edu/-moriarts/imcquotes.html [Date of access: 24 May 2002]. MORRIS, R The marketing principle. Durban : Butterworths. MORRIS-LEE, J Database-driven PR. Target Marketing, 19(3): MOUTON, J.J Understanding social research. Pretoria : J.L. van Schaik. 313

335 MOUTON, J.J Introduction to qualitative research. Pretoria : Human Sciences Research Council. MOUTON, J.J How to succeed in your master's & doctoral studies. A South African guide and resource book. Pretoria : J.L. van Schaik. MOUTON, J.J. & MARAIS, H.C Basic concepts in the methodology of the social sciences. Pretoria : HSCR Publishers. MOUTON, J.J. & MARAIS, H.C Basic concepts in the methodology of the social sciences. Pretoria : Human Sciences Research Council. MUTCHNICK, R.J. & BERG, B.L Research methods for the social sciences. Needham Heights : Allyn and Bacon. NAKRA, P The changing role of public relations in marketing communications. Public Relations Quarterly, 36(1): NAUDE, P. & IVY, J The marketing strategies of universities in the United Kingdom. The International Journal of Educational Management, 13(3): NEUMAN, W.L Social research methods: Qualitative and quantitative approaches. Boston : Allyn and Bacon. NEUMAN, W.L Social research methods. Qualitative and quantitative approaches. Needham Heights : Allyn and Bacon. NEWSOM, D., TURK, J.V. & KRUCKEBERG, D This is PR. The realities of public relations. Belmont : Wadsworth. 314

336 NOVELLI, W.D One-stop shopping: Some thoughts on integrated marketing communications. Public relations Quarterly, 34:7-8. NUCIFORA, A Public relations goes strategic less flack, more clout. Business Journal, 14(12): O'BRIEN, E.M. & DEANS, K.R Educational supply chain: a tool for strategic planning in tertiary education? Marketing Intelligence & Planning, 14(2):1-10. O'BRIEN, L. & JONES, C Do rewards really create loyalty? Harvard Business Review, May-June:79. O'CONNOR, J. & GALVIN, E Marketing and information technology. London : Pitman. OLWAGEN, N Verbal communication with the author. Johannesburg. OWRID, J. & GRIMES, J A rough guide to better brand solution. Ogilvy : Johannesburg. PAINE, L.S Managing for organizational integrity. Harvard Business Review, 12: PATTON, M.Q Qualitative data analysis: An expanded source book. London : Sage. PAULY, J.J A beginner's guide to doing qualitative research in mass communication. Journalism Monographs, 2(1):

337 PELSMACKER, P.D., GEUENS, M. & VAN DEN BERGH, J Marketing communications. Essex : Pearson Education Limited. PEPPERS, D. & ROGERS, M Is one-to-one marketing customer interaction vital? Business Marketing, 79(2):9. PEPPERS, D. & ROGERS, M Enterprise one-to-one. Tools for building unbreakable customer relationships in the interactive age. New York : Doubleday. PEPPERS, D. & ROGERS, M The short way to long-term relationships. Sales and Marketing Management, 151(5): PEPPERS, D., ROGERS, M. & DORF, B The one-to-one field book. The complete toolkit for implementing 1to1 marketing program. New York : Doubleday. PICKTON, D. & BRODERICK, A Integrated marketing communications. Essex : Pearson Education. POLLACK, J New marketing spin: The PR 'experience'. Advertising Age, 5:3. POPCORN, F The Popcorn report. London : Arrow Books. PRENSKY, D., MCCARTY, J.A. & LUCAS, J Vertical integration and advertising agency participation in integrated marketing communications programs. Paper delivered: AMA Summer Marketing Educators Conference, Washinton, D.C. 316

338 PRISA Code of professional standards for the practice of public relations. PR & Communications Africa, 6(2):41. RAGIN, C.C. & HOWARD, S.B What is a case? Exploring the foundations of social inquiry. Cambridge, England : Cambridge University Press. REICH, K IMC: Through the looking glass. Communications World, 15(9): REICHHELD, F The loyalty effect. Boston : Harvard Business School Press. RICE, B The new face of marketing. [Web:] researchsu rvevs. co. za/oaners/newface. htm [Date of access: 22 Sept. 2000]. RIELLY, J The role of integrated marketing communications in brand management. The Advertiser, 32. ROSE, P.B. & MILLER, D.A Integrated Communications: A look at reality instead of theory. Public Relations Quarterly, ROTZOLL, K.B. & HAEFNER, J.E Advertising in contemporary society. Perspectives toward understanding. Urbana : University of Illinois Press. ROYSE, D.D Research methods in social work. Chicago, IL : Nelson- Hall. SACHARIN, K Attention. How to interrupt, yell, whisper and touch customers. New York : John Wiley & Sons. 317

339 SANDERS, W.B. & PINHEY, T.K Conduct of social research. New York : Holt, Rinehart and Winston. SHIMP, T.A Advertising & promotion. Supplemental aspects of integrated marketing communication. Fort Worth : Harcourt. SHIMP, T.A. & DELOZIER, M.W Promotion management and marketing communications. New York : Dryden. SCHLOSSBERG, H Data base is "nerve centre" of integrated marketing plan. Marketing News, 25(3):5. SCHULTZ, B. 1996a. Xerox-wide web. Network World, July 15. SCHULTZ, D.E Integrated marketing communication. Journal of promotion management, 1: SCHULTZ, D.E. 1993a. Integration helps you plan communications from outside-in. Marketing News, 27(6):12. SCHULTZ, D.E. 1993b. Maybe we should start all over with an IMC organization. Marketing News, 27(22):8. SCHULTZ, D.E. 1993c. We simply can't afford to go back to mass marketing. Marketing News, 27(4):20. SCHULTZ, D.E. 1993d. How to overcome the barriers to integration. Marketing News, 27(15):16. SCHULTZ, D.E. 1994a. The key to 'new marketing' is in the curves. Marketing News, 28(15):

340 SCHULTZ, D.E. 1994b. Spreadsheet approach to measuring ROI for IMC. Marketing News, 28(5): SCHULTZ, D.E. 1994c. Objectives drive tactics in IMC approach. Marketing News, 28(10): SCHULTZ, D.E. 1994d. Traditional marketers have become obsolete. Marketing News, 28(12):11. SCHULTZ, D.E. 1995a. It's the data-base question time of year. Marketing News, 29(8):5-6. SCHULTZ, D.E. 1995b. IMC is a great idea, but does it have 'legs?' Marketing News, 29(10):12. SCHULTZ, D.E. 1995c. Maybe it's time to think of customers as assets. Marketing News, 29(1):30. SCHULTZ, D.E. 1996b. Be careful picking database for IMC efforts. Marketing News, 30(6): SCHULTZ, D.E. 1996c. Is IMC finally becoming mainstream? Marketing News, 30(14):4. SCHULTZ, D.E The evolving nature of integrated communications. Journal of Integrated Communications. [Web:] z.ht [Date of access: 5 Jun ] SCHULTZ, D.E Invest in integration. Industry week, 247(10):

341 SCHULTZ, D.E. 1999a. New media, old problem: Keeping marcomm integrated. Marketing News, 33(7): SCHULTZ, D.E. 1999b. We could be more efficient if we considered... Marketing News, 33(15):8. SCHULTZ, D.E. 1999c. Integrated marketing communication and how it relates to traditional media advertising. (In Jones, J.P. ed. The advertising business: Operations, creativity, media planning. London : Sage). SCHULTZ, D.E Maxims for maximum customer relations. Marketing News, June 5:14. SCHULTZ, D.E., TANNENBAUM, S.I. & LAUTERBORN, R.F Integrated marketing communications: Pulling it together and making it work. Lincolnwood : NTC Business Books. SCHULTZ, D.E., TANNENBAUM, S.I. & LAUTERBORN, R.F The new marketing paradigm. Integrated marketing communications. Lincolnwood : NTC Business Books. SCHUTT, R.K.N.A Investigating the social world: The process and practice of research. Thousand Oaks, California : Pine Forge. SCHWARTZ, G Public relations gets short shift from new managers. Marketing News, 15 October, 8. SCHWARTZ, H. & JACOBS, J Qualitative sociology: A method to the madness. New York : Free Press. 320

342 SCOTT-CLARK, C Degrees fall out of flavour. The Sunday Times, 31 December, 16. SEMENIK, R.J Promotion and integrated marketing communication. Cincinnati : Thomson Learning. SEMMELMAYER, M Accountability: The final frontier for integrated communications. Journal of integrated communications. [Web:] [Date of access: 5 Jun. 2001]. SENGE, P.M The fifth discipline: The art and practice of the learning organization. New York : Doubleday Currency. SHATTOCK, M., BOOTH, C., WAGNER, L. & WILLIAMS, G Editorial. Higher Education Quarterly, 43(2): SHIMP, T.A Promotion management and marketing communications. Hinsdale : Trident Press. SHIMP, T.A Advertising, promotion and other supplemental aspects of integrated marketing communications. Orlando : Harcourt Brace. SHIMP, T.A Advertising & promotion. Supplemental aspects of integrated marketing communications. Fort Worth : Harcourt College. SILVERMAN, D Qualitative methodology and sociology: Describing the social world. Aldershot : Gower. SIMMONS, R.E Communication campaign management. New York : Longman. 321

343 SIMON, R Public relations, concepts and practices. Grid : Columbus. SINGLETON, R., STRAITS, B., STRAITS, M.M. & MCALLISTER, R.J Approaches to social research methods. New York : Oxford University Press. SIRACUSE, L Looks aren't everything: Creating competitive advantage with brand personality. Journal of Integrated Communications, SIRGY, M.J Integrated marketing communications: A sytems approach. Upper Saddle River : Prentice Hall. SKINNER, C. & VON ESSEN, L The public relations handbook. Johannesburg : Oxford University Press. SMITH, J Integrated marketing. Marketing Tools, November/December, SMITH, M.J Contemporary communication research methods. Belmont : Wadsworth. SMITH, P.R Marketing communications. An integrated approach. London : Clays. SMITH, D., SCOTT, P. & LYNCH, J The role of marketing in the university and college sector. Leads : Centre for Policy Studies in Education. SPOTTS, H.E. & LAMBERT, D.R Marketing déjà vu: The discovery of integrated marketing communications. Journal of Marketing Education, 20(3):

344 SPROUL, N.L Handbook of research methods. A guide for practitioners and students in the social sciences. Metuchen, NJ : The Scarecrow Press. STAKE, R.E The art of case study research. London : Sage. STEINHART, D Saturn's new boss brings female virtues. Financial Post, December 16. STEPANEK, M Effective relationship links in consumer marketing. Business Week, 22: STEWART, D.W Market-back approach to the design of integrated communication programmes: A change in paradigm and a focus on determinants of success. Journal of Business Research, 37(3): STEYN, B CEO expectations in terms of PR roles. Communicare, 19(1): STEYN, B. & PUTH, G Corporate communication strategy. Sandown : Heinemann. STRACHTMAN, N Group think employees are shattering the traditional corporate structure with intranets. Information week, June 1. STRAUSS, A. & CORBIN, J Basics of qualitative research: Grounded theory procedures and techniques. Newbury Park, CA : Sage. STRAUSS, A. & CORBIN, J Grounding theory methodology: An overview. Thousand Oaks, CA : Sage. 323

345 STROH, U. & LEONARD, A Communication management research in South Africa: An exploratory study of the current state of affairs. Communicare, 18(2):1-32. SWAN, A One-stop debate. Marketing, April 1: TANNENBAUM, S Integrated marketing communication: Outside perspectives. Sales & Marketing Strategies & News, 59(1):3-7. THOMPSON, K.E. & CHEN, Y.L Retail store image: A means-end approach. Journal of marketing practice: Applied Marketing Science, 4(6):6-17. THORSON, E. & MOORE, J Strategic planning for integrated marketing communications programs: An approach to moving from chaotic toward systematic. (In Thorson, E. & Moore, J. eds. Integrated communication. Synergy of persuasive voices. Hillside : Erlbaum.) THORSON, E. & MOORE, J Integrated communications. Synergy of persuasive voices. Chicago : Lawrence Erlbaum Associates. TIPPINS, M Value laddering as a method of sales research. Journal of personal selling & sales management, 21(1):77. TROUT, J. & MARTIN, S The new positioning. New York : McGraw-Hill. TRUDEL, M.R Consumer marketing synergy: PR comes of age. Public Relations Quarterly, 36(1): TUDD, C.M., SMITH, E.R. & KIDDER, L.H Research methods in social relations. Orlando : Harcourt Brace. 324

346 TYSOME, T Admissions chiefs slam 'inaccurate statistics. The Times Higher Education Supplement, 5 January, 3. VAN VUUREN, D., MAREE, A. & DE BEER, A.S Mass media research: The quest for certain knowledge. (In De Beer, A.S. ed. Mass media: The South African handbook of mass communication. Pretoria : Van Schaik.) VAN WEZEL, S.S The importance of participative organizational communication: A South African case study. Dissertation Master of Arts. RAU. VERWEY, S into the age of communication. Inaugural speech. RAU : Johannesburg. WATERSCHOOT, W. & VAN BULTE, C The four P classification of the marketing mix revisited. Journal of Marketing, 56(4): WATSON, G Strategic benchmarking. New York : John Wiley & Sons. WEB, E.J Non-reactive measures in the social sciences. Boston : Houghton Mifflin. WEINER, R Webster's new world dictionary of media and communications. New York : McMillan General Reference. WHITE, J How to understand and manage public relations. London : Business Books. WIGHTMAN, B Integrated communications: Organization and education. Public Relations Quarterly, 44(2):

347 WILSON, D An integrated model of buyer-seller relationships. Journal of the Academy of Marketing Science, 23(4):1-9. WILCOX, D.L., AULT, P.H., AGEE, W.K. & CAMERON, G.T Public relations strategies and tactics. New York : Longman. WIMMER, R.D. & DOMINICK, J Mass media research. California : Wadsworth. WIMMER, R.D. & DOMINICK. J.R Mass media research: An introduction. Belmont : Wadsworth. WOLTER, L Superficiality, ambiguity threaten IMC's implementation and future. Advertising Age, 27(19): WOOD, M.B Clear IMC goals build strong relationships. Marketing News, 31(13): WRIGHT, D.K Public relations education and the business schools. Public Relations Review, 8(2): YARBROUGH, J.F Putting the pieces together: Integrated marketing communications is increasingly discussed as a smart business strategy. Sales and Marketing Management, 148(9): YASTROW, S Fully integrated marketing. Journal of Integrated Communication. [Web:] [Date of access: 5 Jun. 2001]. 326

348 YIN, R.K Case study research: Design and methods. Applied Social Research Methods Series, Vol. 5. Thousand Oaks, CA : Sage. ZIKMUND, W.G. & D'AMICO, M Marketing. New York : West Publishing. ZINKHAN, G.M. & WATSON, R.T Advertising trends: Innovation and the process of creative destruction. Journal of Business Research, 37(2):

349 APPENDIX A: Cover page for questionnaire 6 March 2002 Dear Department of Public Liaison personnel member RESEARCH PROJECT - INTEGRATED MARKETING COMMUNICATION OF RAU I am reading my Masters Degree in Corporate Communication (M.A.) at RAU. As part of my studies I will conduct a research survey on the integrated marketing communication of RAU, and you have been selected as a respondent to provide an opinion on the matter. The purpose of the research is to determine RAU's standing on the integration scale, according to the IMC mini-audit model as developed by NorthWestern University, Colorado. This standing will be determined with the aid of a questionnaire, completed by the staff members of the RAU Department of Public Liaison. The results of the questionnaire will establish the extent to which the university's marketing communication strategy is integrated. It comprises numerous statements relating to RAU's marketing communication and your honest opinion is of utmost importance. All information provided will be treated as anonymous and confidential. Thank you for your co-operation. Yours sincerely Ms Ilse Niemann 328

350 Never Always DK Strategic Consistency All of our planned brand messages (e.g. advertising, sales promotion, DK PR, packaging) are strategically consistent. We periodically review all our brand messages to determine to what DK extent they are strategically consistent. We consciously think about what brand messages are being sent by our DK pricing, distribution, product performance, customer-service operations, and by persons and organisations outside the control of the company. Planning and Evaluating When doing our marketing communication planning, a SWOT analysis is DK used to determine the strengths and opportunities we can leverage, and the weaknesses and threats we need to address. We use a zero-based approach in marketing communication planning DK When doing annual marketing communication planning, we make sure DK intrinsic brand contact points are sending positive brand messages and that these contacts are being fully leveraged before investing in creating new brand contact points. Our company uses some type of tracking study to evaluate the strength DK of our relationships with customers and other key stakeholder groups. Our marketing strategies maximize the unique strengths of the various DK marketing communication functions (e.g. public relations, direct response, advertising, event sponsorships, trade promotions, packaging). The overall objective of our marketing communication programme is to create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups, and encouraging purposeful dialogue with them DK 329

351 APPENDIX C: Interview schedule Interview schedule Phase two: public relations in integrated marketing communication. What is your sub-division's specific role in the overall functioning of RAU's Division of Public Relations? In your opinion, does RAU approach its marketing communication in an integrated manner? How does RAU make sure that messages sent to stakeholders have the same theme? What is the corporate marketing communication objective of RAU? How does the central mission of RAU anchor the public relations strategy within the marketing communication strategy of RAU? 330

352 Which marketing communication function would you say is the most prominent in RAU's marketing communication strategy? How would you describe the relation of the use of public relations to other marketing communication functions in your marketing communication strategy? How does your sub-division make use of public relations per se in your everyday functioning? Do you see public relations as a technical support function in the functioning of your sub-division? 10)Do you see public relations as an integral part with a definite contribution to the overall functioning of the university? 331

353 How would you describe the relation of the use of public relations to other marketing communication functions in your marketing communication strategy? How important do you think relationships are in the overall functioning of your division? Name the various stakeholders that your sub-division serves directly. Who is responsible for building these relationships in your organization? Does your sub-division have programmes in place to reach the various stakeholder groups? Are databases important in the functioning of your sub-division? What programmes are in place to build the corporate identity of RAU? 332

354 Would you say that RAU's public relations strategy is based on RAU's corporate brand? What do you think is your greatest barrier within the functioning of your sub-division? Do you think that if RAU had a more integrated approach to marketing communication, it would contribute to the functioning of the university? 333

355 APPENDIX D: Matrix of the overall results of the IMC miniaudit Overall results of IMC mini-audit: RAU Respondent Total score Blank items & DKs Final Score AVERAGE 2.67 APPENDIX E: Matrix of the organizational infrastructure results of the IMC mini-audit Organizational infrastructure Respondent Total scores Blank items & DKs Total for section /

356 AVERAGE 2.85 APPENDIX F: Matrix of the interactivity results of the IMC mini-audit Interactivity Respondent Total scores Blank items & DKs Total for section / / / AVERAGE 2.18 APPENDIX G: Matrix of the mission marketing results of the IMC mini-audit Mission marketing Respondent Total scores Blank items & DKs Total for section 335

357 AVERAGE 2.82 APPENDIX H: Matrix of the strategic consistency results of the IMC mini-audit Strategic consistency Respondent Total scores Blank items & DKs Total for section AVERAGE

358 APPENDIX I: audit Matrix of the planning results of the IMC mini- Planning Respondent Total scores Blank items & DKs Total for section AVERAGE 1.87 APPENDIX J: Matrix of the evaluating results of the IMC mini-audit Evaluating Respondent Total scores Blank items & DKs Total for section _ _ _ _ _

359 AVERAGE 3.29 APPENDIX K: Organizational infrastructure (individual responses) Graph Organizational infrastructure - individual responses to 3- > V/ 4D 1.5 cc Respondents 338

360 APPENDIX L: Interactivity (individual responses) Graph Interactivity - individual responses c& 3.5 To oc 2 frit- 1.5 cc , Respondents APPENDIX M: Mission marketing (individual responses) Graph Mission marketing - individual responses 0 C > 0 C 0 ct. co 0 cc _3 n p_.4 el i_1 i9 Respondents /

361 APPENDIX N: Strategic consistency (individual responses) Graph Strategic consistency - individual responses Response value MIMIIIMMIST --we / p Respondents APPENDIX 0: Planning (individual responses) Graph Planning - individual responses 6 co 5 3 To > 4 o 3 c o cl- 2 o CC Respondents 340

362 APPENDIX P: Evaluating (individual responses) Graph Evaluating - individual responses To 3 tu O 2 Ak U fil Respondents 341

363 \