Putting Integrated MarketingCommunications to Work Today

By Matthew P. Gonring

The restructuring and re-engineering takingplace in organizations are not single events.Rather, they are evolutionary processes re-

quiring managers to continually realign prioritiesand resources with organizational goals. At thevortex of this development is the communicationsfunction and process. By taking responsibility forpositioning a primary corporate asset — the com-pany's reputation — public relations practitionerscan assimilate an accountability that enables themto become players. If, however, their primary con-cern is what this evolution means for their ownjob and function security, then public reiations isnot even in the game.

Playing the game means leading the evolution byaligning communications where it can add thegreatest value today. Yesterday's successes are notgood enough to carry tomorrow's challenges. Value-added communications strives for two ideals: effi-ciency and effectiveness. The way to achieve this isby integrating the communications function intoa single planning system. Called integrated market-ing communications, or IMC, this process creates trueaccountability by maximizing resources and link-ing communications activities directly to organ-izational goals and the resulting bottom line.

Also driving the need for integration is the failureof traditional mass communications to reach highlyfragmented, disenchanted audiences. IMC over-comes this by working to influence the behaviorof target audiences over time. Traditional masscommunications influences these long-term be-haviors only marginally. {Brody, 1994)

Thus, "given that there is a need for the publicrelations, marketing and advertising functions tobecome more aligned, practitioners in our increas-ingly complex environment must possess the

knowledge, skill and ability to function efficiently."(Miller & Rose, 1994)

Good Communication Affects Bottom LinePublic relations practitioners can take steps now

to make integration work on behalf of their clientor organization. The first is to bring managementinto the communications loop to demonstrate theimplications of good communication in general.For instance, it is crucial that management addresspotentially controversial issues — because, despitecompanies' conditioned fear of in-depth reporting,candid communication pays off in more objectivecoverage.

Public relations brings this important element tothe integrated mix. By keeping its pulse on all in-ternal and external stakeholders, public relations isable to balance public opinion and business strat-egy. If public relations is to be fully integrated into

Matthew P. Gonring

FaM 1994 45

the organization, it must learn to counsel manage-ment and to manage communication in a waythat shapes the opinions and hehavior of relevantconstituents.

Already, more business executives are beginningto understand the interrelationships between pub-lic relations, corporate image and sales. "CFOs andinvestor relations executives are eager for mediacoverage that builds public awareness of a com-pany's fundamental strengths, value and values.They realize even a small drop in sales can meana large drop in earnings." (Dilenschneider, 1992)By building credibility for a company, public rela-tions can help secure investors and lenders andstrengthen supplier/customer relationships.

Public relations' broadperspective helps companiesto avoid myopic sales effortsthat fail to take customers

into consideration first.

Public relations' broad perspective helps compa-nies to avoid myopic sales efforts that fail to takecustomers into consideration first. Public relationscan work with marketing to guard against those"big ideas" that just won't fly with the stakehold-ers in a particular market.

Likewise, practitioners benefit by reviewing mar-keting strategy, white papers and other research.The result is a better understanding of the marketin which the company operates, which guidespublic relations towards efforts that support busi-ness objectives.

Understanding the IMC ProcessHaving established the importance of communi-

cation for their organizations, practitioners mustacquaint top management with the IMC processitself. While the academic definitions of IMC con-tinue to evolve, they share several elements incommon: The IMC process starts with the cus-tomer or prospect and then works back to deter-mine the forms and methods through whichpersuasive communications programs should bedeveloped. Influencing or directly affecting behav-ior is the ultimate goal. (Schultz, Jan. 1993)

IMC thus becomes a "new way of looking at thewhole, where once we only saw parts such as ad-vertising, public relations, sales promotion, pur-chasing, employee communications, and so forth.It's realigning communications to look at it theway the customer sees it — as a flow of informa-

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tion from indistinguishable sources. (Schultz, Tan-nenbaum & Lauterborn, 1994)

Real-world examples of IMC can be bench-marked from organizations that have successfullyadopted the process. Examples include McDonald's,IBM, Suzuki, Allen-Bradley and Financial SecurityAssurance, among others. Trade associations, suchas the International Association of Business Com-municators (IABC), frequently run seminars onIMC, as do Northwestern University and otherschools currently pioneering the concept. Publicrelations practitioners who have gained the ear ofmanagement can then take the lead and put to-gether proposals outlining the IMC process, its ad-vantages and implementation. Such proposalsoften include the following recommendations:

• Audit the pockets of communications-relatedspending throughout the organization. Item-ize the budgets and tasks and consolidate theseinto a single budgeting process. Reassess allcommunications expenditures hy product, pro-motional tool, stage of life cycle and observedeffect. Use this as a basis for improving furtheruse of these tools.

• Create shared performance measures. Developsystems to evaluate communications activities.Since IMC attempts to change consumerpurchase behavior, this hehavior must be mea-sured to ultimately demonstrate communica-tions' impact on the bottom line. ROI can hemeasured either by tracking a company's owncommunications efforts or through syndicatedcustomer data.

• Use database development and issues man-agement to understand your stakeholders.Include customers, employees, investors, ven-dors and all other stakeholders at every stageof your communications plan.

• Identify all contact points for the companyand its products. Use this audit to determinewhere communications can best be used to re-inforce the company's messages. Measure com-munications' ability to do so at each contactpoint, whether it be your product packaging,retail display, shareholder meeting or spokes-person, etc. Work to ensure your communica-tions efforts are occurring when, where andhow your customers want them.

• Analyze trends — internal and external —that can affect your company's ability todo business. Look for areas where communi-cations can help the most. Determine thestrengths and weaknesses of each communica-tions function. Develop a combination of pro-motional tactics based on these strengths andweaknesses. Use this mix to meet marketinggoals.

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• Create business and communication plansfor each local market. Integrate these into aglobal communications strategy.

• Appoint a director responsible for the com-pany's persuasive communications efforts.This move encourages efficiency by centraliz-ing planning and creating shared performancemeasures.

• Create compatible themes, tones and qualityacross all communications media. This con-sistency achieves greater impact and preventsthe unnecessary duplication of work acrossfunctions. When creating materials, considerhow they can be used for a range of audiences.Make sure each carries your unique primarymessage and key selling points.

• Hire only team players. Employees trained inthis new, integrated way of thinking will notbe locked into functional silos. Rather, theythrive on group accountability and are open toany new responsibility that enables them tobetter meet the needs of customers.

• Link IMC with management processes, suchas participatory management. This producesa fully integrated management effort aimed atmeeting corporate goals. An integrated strategyshould permit efficiency in each communica-tion function contributing to the success ofthe corporate mission.

Integration must be livedand demonstrated by tbetop person or persons in

tbe organization.

Barriers to Implementing IMCThe reality is that few organizations are able to

implement IMC except on a step-by-step basis.And organizations will challenge each and everyone of the ideas proposed above. For this reason,the support of top management is vital. "Inte-gration cannot be accomplished by middle man-agers or from those in the lower levels of theorganization. It must come from the top, and itcan't be just a memo or a directive. Integrationmust be lived and demonstrated by the top personor persons in the organization. There must be acommitment from top management to integrateand to remove the barriers which prevent integra-tion." (Schultz, Aug. 1993)

Practitioners can play a key role by using theirinternal and external "feelers" to identify potential

barriers and propose solutions. Frequently, thesebarriers include the following:

• Fear of change. The disciplines must over-come their fear of ceding control to a singleplanning system. Group performance measureshelp to change current power structures.

Practitioners can play a keyrole by using tbeir internaland external 'feelers" to

identify potential barriersand propose solutions.

• Hierarchical organizations. Integration de-mands cross-training, a process hindered byvertical structures. A first step can be to formteams throughout the organization and createan opportunity for cross-functional assign-ments and advancement through acceptanceof greater responsibility. Collapsing the num-ber of salary ranges also helps to flatten organi-zational layers.

• Turf battles and functional silos. Each disci-pline feels the need to protects its status — i.e.,budget — and does not want to relinquish orshare accountabilities. However, a single bud-geting process and shared performance mea-sures are needed if communications is to meetthe larger goals of the organization. The focusshifts to doing what is right for the customer.This requires companies to give equal consid-eration to all functional areas and to ensurethat each has an equal opportunity of beingselected for a particular campaign. This fact,more than any other, preaches the need forcross-functional training.

• Inside out communications planning. Whenprofit goals are set internally, the urge is to goout and find customers to help meet thesegoals. Learning to start with customers andwork backwards ensures an integrated commu-nications program that can be linked to thebottom line.

• Short-term planning. IMC is often synony-mous with relationship marketing in that it worksto influence consumer behavior over time.Short-term planning focused on new customeracquisitions weakens a company's ability tobuild a loyal customer base.

• Lack of database development. Marketingtechnology exists to measure customer behav-ior, but companies have been slow to adoptit. Some industries struggle with database de-

Fall 1994 47

velopment more than others (e.g., packagedgoods). However, everyone can follow the leadof financial services and direct mailers, manyof whom have become adept at identifyingsegments and sending them targeted messages.

• Media fragmentation. Consumers are hard-to-reach targets, which demands increased effi-ciency from marketers and makes it moredifficult to justify mass media costs. Integratedmarketing communicators must continuallydemonstrate how their mix of non-traditionalmedia creates more impact at less cost.

True AccountabilityThe above challenges are formidable, but they

also provide the opportunity for communicationsto gain prominence and influence. Key to the IMCprocess in any organization is top executive sup-port and endorsement. It is this support that willdrive the organization toward centralized planningand budgeting in its communications functions.This single planning system creates true account-ability by maximizing resources and linking com-munications activities directly to organizationalgoals and the resulting bottom line.

The drive for efficiency and effectiveness in anorganization is a never-ending pursuit. By aligningthe communications function where it can addthe greatest value, public relations practitionerscan ensure they are "in the game." Those publicrelations practitioners who hold themselvesaccountable to corporate assets become the keyplayers. nw

ReferencesBrody, E, (Summer 1994) PR Is to Experience What Marketing

Is to Expectations, Public Relations Quarterly, p. 20.Dilenschneider, R. (Summer 1992) Use Ingenuity in Media Re-

lations, Public Relations Quarterly, p. 13.Miller, D. and Rose, P. (Spring 1994) Integrated Communica-

tions: A Look at Reality Instead of Theory, Public RelationsQuarterly, p. 15.

Schultz, D. (January 18, 1993) Integrated Marketing Communi-cations: Maybe Definition is in the Point of View, MarketingNews, p. 1.

Schultz, D. (Aug. 16, 1993) Four Basic Rules Lay Groundworkfor Integration, Marketing News, p. 5.

Schultz, D., Tannenbaum, S., and Lauterborn, R. (1994) TheNew Marketing Paradigm: Integrated Marketing Communications,p. xvii.

Matthew P. Gonring is vice president of corporate commu-nications for USG Corp., Chicago, where he oversees allinternal and external communications, including marketing,financial, investor and news media relations. Prior to joiningUSG as director of public relations in 1988, Gonring spenteight years in the airline industry, working in corporate com-munications at United Airlines (UAL Corp.) and NorthwestAirlines. Gonring Is a graduate faculty member in the Inte-grated Marketing Communications program at NorthwesternUniversity, Evanston, III. He speaks and writes often on thetopic of IMC.

Kaarina Bergstrom contributed to this article. She is aMaster's candidate in the Integrated Marketing Commu-nications program at Northwestern University, Evanston, HI.USG, 125 S. Franklin St, Chicago, IL 60606, 312-606-4124.

Congratulations to Denny Griswold

Fifty years ago this fall, Denny Griswoldfounded the very first public relations periodical,PR News newsletter. She was truly prescient inshowing the importance of independent pub-lishing. As the association publication varied indirection, quality and policy over the years,Denny went straight down the track with un-abashed belief in PR, while still standing firm onethical performance and outspoken when shefelt management blundered or practitioners wereless than upright.

Professional standards and goals in manycases set by Denny have become benchmarksfor the rest of the independent PR publishers:

Jack O'Dwyer's Newsletter; pr reporter's CharlesProut, Robert Barbour, Patrick Jackson and OttoLerbinger; Public Relations Review''?, Ray Hiebert;and Public Relations Quarterly (we're forty, by theway).

Also, the Newsletter Publishers Associationrecognized her contributions to the newsletterfield by naming her Publisher of the Year in 1984.

While Denny's no longer the publisher ofPR News, she is still active and able to see whatshe has accomplished for the profession. Wecongratulate her on her newsletter's fiftiethanniversary!

—H.P.H.

48 Public Relations Quarterly