Jang Ho Moon



		Integrated Marketing Communication Revisited: Strategic Communications in Wired World Jang Ho (Jay) Moon ADV 391 Dr. Leckenby Dec. 12, 2007 CHAPTER 1 INTRODUCTION Marketers in today's wired world must feel like they are walking through a minefield. Markets are splintering into niches, customers are avoiding commercial messages, competitors are proliferating, and communication and information channels are exploding more than ever before. Very few marketers feel that they face a promising future. In the midst of the wired world, marketers are desperately searching for new answers to age-old questions. The questions have not changed: How do we communicate with consumers? Implement marketing communication in today's media environment is not easy since consumers are not just watching television or reading newspapers, but they are wired. They are no longer passive media consumers in an online environment. In addition, online media are continuously evolving. As seen in the recent huge popularity of Web 2.0 media such as myspace.com, YouTube, and blogs, channels of communication in the online environment are becoming increasingly diverse, sophisticated, and extensive. Wired consumers watch their favorite television shows via web broadcasting anytime they want while they skip the advertisements and commercial messages that they encounter. Consumers online no longer have a blind belief in the mass media since they have alternative information sources. “People like me” such as bloggers and online community members may provide more honest and hands-on information than the mass media. Then, what is the best way to implement strategic communication to interact with those wired consumers? This study proposes that the integrated marketing communication approach is still the most effective tool to implement strategic communication in the 21 st century. However, there is need of new integrated marketing approach with a focus on online media environment. This study posits that the traditional integrated marketing communication approach should be revisited and revitalized to successfully interact with the wired consumers. By adapting a new approach designed exclusively for the online consumers, integrated marketing communication may enjoy another heyday in the 21 st century. In order to examine the effect of the integrated marketing communication in an online environment, this study provides literature from traditional integrated marketing communication and case studies. Theory related to the integrated marketing communication is extensively reviewed to develop linkage between traditional IMC and online IMC. CHAPTER 2 THE CHRONICLE OF IMC In this chapter, this study attempts to find a concrete foundation for new approach of integrated marketing communication in new media environment by reviewing “traditional” integrated marketing communication literature. Five concepts of integrated marketing communications are selected based on their apparent acceptability among academia and industry, as reflected in the various citations and references. IMC concepts are reviewed in chronological order. 1. IMC by American Association of Advertising Agencies (1989) The first formal definition of the IMC was developed at Northwestern University in 1989 in the association with American Association of Advertising Agencies (4As). A review of literature indicates that this 4As definition has been the most widely cited since 1989 up to present among academics and practitioners (Kliatchko, 2005). According to American Association of Advertising Agencies, IMC is “a concept of marketing communications 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.” This definition emphasizes the need for a synergistic marketing communication plan that uses multiple tools of marketing communications other than traditional advertising. It highlights the importance of having one communication strategy as the overarching element and the integrative factor of the various tools or disciplines employed, and of achieving greater synergy that would otherwise be absent if the tools were to be used independently without supporting and reinforcing each other (Brown, 1997). 2. IMC by Don Schultz (1991) In 1991, Don Schultz and his colleague proposed another definition of IMC. According to them, IMC is “the process of managing all sources of information about a product/service to which a customer or prospect is exposed which behaviorally moves the consumer toward a sale and maintains customer loyalty.” This definition introduces other dimensions of IMC that had not been articulated in the earlier one. Specifically, this definition focuses on (1) the customer or prospect, which is at the very heart of the IMC concept, (2) relationship between the brand and the customer, (3) the need for behavioral responses from customers or prospects for a success of IMC campaign (Duncan and Caywood, 1996). 3. IMC by Tom Duncan (1992, 1994) Tom Duncan's first definition of IMC was introduced in 1992. According to him, IMC is “the strategic coordination of all messages and media used by an organization to collectively influence its perceived brand value.” This definition supports the view that IMC attempt to achieve a synergy through the coordination of all messages and communication tools employed by an organization and its communication agencies (Kliatchko, 2005). However, this definition limited the messages and media used to those that the brand and its agencies sought to deliver (Duncan and Caywood, 1996). Duncan , therefore, revised this definition in 1994. Duncan defined as “IMC is 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 emphasizes building relationship with all stakeholders and moved away from a merely attitudinal to a behavioral change or response by saying that “IMC creates and nourishes profitable relationships” (Duncan and Caywood, 1996). Also, Duncan expanded the concept of the target market to include all employees, regulators and other parties who may have a direct relationship with the organization. Moreover, Duncan focused on creating long-term effects by fostering customer relationships rather than merely creating short-term impact (Kliatchko, 2005). 4. IMC by Nowak and Phelps (1994) Nowak and Phelps coined three broad conceptualizations of IMC as follows: (1) “one-voice” marketing communications, (2) “integrated” marketing communications, and (3) “coordinated” marketing communications. One-voice marketing communication refers to integration that creates a clear and consistent image, position, message, and/or theme across all marketing communication disciplines or tools. Integrated communications is the creation of both a brand image and a behavioral response that come directly from marketing communications materials such as advertisements. Coordinated marketing communications refers to the coordination of all marketing communication tools such as advertising, public relations and direct marketing. According to Nowak and Phelp (1994), the goal of IMC is to produce a holistic campaign to achieve synergy that both develop awareness and brand image while it evokes a behavioral response from the target audiences. 5. IMC by Don Schultz and Heidi Schultz (1998) In 1988, Schultz and Schultz proposed a new concept of IMC, which attempts to capture the current as well as the future scope of IMC. Schultz and Schultz defined IMC as “a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences.” This concept of IMC is different from others because of its focus on the business process (Schultz and Schultz, 1998). It also expands the understanding of the term brand communication program from its traditional view to all other contact points between the organization and its brand and the consumers or prospects. Moreover, by stating “relevant external and internal audiences”, this one suggests that the audience of IMC is not limited to consumers only (Kliatchko, 2005). In sum, authors and scholars in the field of marketing communications have not reached an agreement on the general concept of IMC (Kliantchko, 2005). IMC is criticized since it is considered as nothing but a management fashion and it is theoretically underdeveloped and ambiguously defined (Cornelissen, 2000). Aside from a lack of agreement on IMC definitions, the issue of viewing IMC as both a concept and a process is also unsettled (Beard, 1997). In addition, IMC is considered as “nothing new” approach by skeptics (Eagle et al., 1999). However, IMC is still in a “pre-paradigm stage of development” (Schultz and Kitchen, 2000). Therefore, the value of IMC will become more evident as further research and experience is obtained. In this regard, new IMC approach with a focus on online media environment will contribute not only for the practitioners but also for the concept of IMC. CHAPTER 3 THEORETICAL ROOTS OF IMC This chapter attempts to review the relevant theory of IMC. At its most fundamental level, the IMC concept is an attempt to understand how and why consumers respond to some marketing communication messages more positively others. Therefore, this chapter attempts to suggest theoretical roots of IMC which are the adopted from various psychology literatures. 1. Social Psychology Literature To examine how individuals relate to their environment is important to understand how consumers react to marketing communication messages (Mcgrath, 2005). Therefore it is valuable to see how the social constructionist perspective relates to IMC (Hackely and Kitchen, 1998). Some of social psychology literatures suggest significant implications for the creation of marketing communications messages. 1) Symbolic Self-Completion Theory Symbolic self-completion theory suggests that people all have a natural desire or need to complete their self-concepts (Wicklund and Gollwitzer, 1982). This theory suggests that people may experience what they perceive to be a gap between the sum of components of the self and what they perceive to be the “complete” definition of the self. As a result, people may turn to the acquisition of material goods to fill the gap. Marketing communications can play a important role in defining which specific brand can best fill this gap. In this regard, marketing communication efforts can be translated as “representative of societal norms that hold emotional power to confer or withhold social acceptance” (Gomes, Leupold and Albracht 1998). This perceived psychological need brings a huge chance for marketers who can position their products as the ideal way for individuals to complete their self-concept. (Mcgrath, 2005) 2) Extended Self Extended self suggests that our behavior is the result of a desire we have to “extend” our self concept beyond our physical bodies and into the world around us (Belk, 1988). It is helpful to understand why consumers respond to marketing communications messages. According to extended self concept, if a product can be positioned as a desired extension of a person's self-concept, then it can have an enhanced position in the market place. For example, marketing luxury items such as imported automobiles and designers' clothing can benefit from the extended self theory when these products are marketed as society's natural expressions of the extended self. 2. Cognitive Psychology Literature People make their purchase decisions based on their attitudes toward brands. Literatures from cognitive psychology suggests that individual's attitude toward brands can be influenced by marketing communication efforts. 1) Hierarchy of Effects (HOE) The HOE model suggests that there is a way to understand the ways which marketing communications efforts could effectively change consumer attitudes and hopefully even consumer behavior. According to HOE model, consumers respond to marketing communications stimuli in a hierarchical manner of three psychological and behavioral stages: cognitive, affective, and conative (Mcgrath, 2005). The original HOE model was developed to help explain how the personal selling process worked. The modification of original model such as AIDA Model (Strong, 1925), and the Lavidge-Steiner Model (Lavidge and Steiner, 1961) properly explain how consumers respond to marketing communications messages. 2) Information Processing Model (IPM) Information Processing Model introduced by McGuire (1968) posits an alternative view of the persuasion process which builds upon the HOE model by suggesting a sequence of six steps which the process of persuasion is presumed to follow: Presentation, Attention, Comprehension, Yielding, Retention, and finally Overt Behavior (Perry, 1996). The IPM and its modifications have had a major influence on the marketing communications field such as media planning models for advertising agency which account for the need to establish frequency of exposure to consumers. (McGrath, 2005) 3) Elaboration Likelihood Model (ELM) & Heuristic-Systematic Model (HSM) ELM is also helpful to understand how consumers process marketing communications messages since ELM's two routes to persuasion–central and peripheral—provide important implications. According to ELM, messages for certain brands which have been developed in a way which generate central processing can lead to the creation of relatively strong and long-lasting attitudes about the messages. On the other hand, marketing communications messages that adopt peripheral cues will not be as long lasting or as resistant to change as those processed centrally (Petty and Cacioppo, 1986). Similar to ELM, Heuristic-Systematic Model (HSM) suggests the possibility of multiple consumer motivations by proposing two routes to persuasion—heuristic and systematic (Eagly and Chaiken, 1993). 4) Cognitive Structure (CS) & Cognitive Response Model (CRM) CS and CRM proposes following cognitive structures: (1) consumers react to marketing communications messages by creating conceptual images of the messages in their mind (2) consumers make a linkage between these images and a set of beliefs about the images (Olson et al., 1982). From the perspective of marketing communications, these cognitive structures are valuable because the model suggests that they can be powerful predictors of attitudes, behavioral intentions toward the brand, and ultimately purchase intention (Olson et al., 1982). CS and CRM also provide a framework to understand the cognitive structures that consumers may create about a brand, and how these structures relate to their own self values. These relationships can suggest the deeper meanings consumers may attach to a brand – and to its marketing communications (McGrath, 2005). CHAPTER 4 THEORY FOR UNDERSTANDING IMC'S SYNERGY The idea behind IMC is coordination of messages for maximum impact which is created through synergy. The notion of IMC makes sense only if the integration generates synergy for the effectiveness of marketing communication (Moriarty, 1996). According to Moriarty (1996), synergy exists through “the function of memory-messages that are conceptually integrated and that repeat essential units of meaning over time through different channels and from different sources come together to create coherent knowledge and attitude structures in the receiver.” To investigate this concept of synergy as created by multidimensional IMC programs, a review of relevant theory and research from diverse disciplines such as marketing, consumer behavior, communication, education, and psychology will be followed. 1. Cognitive Structure 1) Script and Schema Theory A schema refers to mental map of a generalized routine or pattern of thinking, whereas a script is an outline of a routinized sequence of behavior (Moriarty, 1996). Abelson (1981) described a schema as a hypothesized cognitive structure that organizes behaviors encountered in event-based situations. According to schema theory, schema maps an individual's expectations and routines that operate in particular situations such as getting up in the morning, getting to work, going to restaurant, or attending a cocktail party (Moriarty, 1996). Script theory is proposed by Rittenburg and Laczniak (1990) to analyze viewers' decision processes that operate when they encounter an advertising message on television. Script or schema theory can analyze how people deal with various types of message encounters involving various types of channels and message strategies. Particularly, this would be useful in mapping creative strategies for integrated communication situations (Moriarty, 1996). 2) Conditioning and Association Once a stimulus evokes a particular response, a similar pattern of stimulus and response is more likely in the future (Burgoon et al., 1981). In particular, this is how associational thinking is learned. Attitudes are also thought to be subject to development through conditioned response with their potential for negative-positive polarity (Moriarty, 1996). Preston and Thorson posit that this process as a general theory for understanding how advertising works (Preston, 1982; Preston & Thorson, 1984). 3) Contiguity Theory Contiguity theory focuses on the complexity of the processing situation. According to contiguity theory, a combination of stimuli leading to a response will, when repeated, lead to that same response again (Guthrie, 1959). The communication pattern that preceded a particular desired behavior should, upon its repetition, elicit the behavior again: the same arguments should touch the same responsive chord (Burgoon et al.,1981). According to this theory, a stimulus has its most striking image when it is first paired with the response. However, when applying this idea of persuasion, Burgoon et al. noted that all stimuli are attended to by everyone on any one occasion, therefore to ensure that the behavior is repeated by a range of people, the message should be repeated under varying circumstances (Moriarty, 1996).This is an important implication for IMC planning. In addition, the greater the similarity of language and arguments, the more likely it is that the same response will be elicited again, which provides support for the notion of conceptually integrated messages (Moriarty, 1996). 4) Construction Theory & Cognitive Response Theory Construction theories suggest that receivers are not passive processors; in fact, they bring thoughts based on previous experiences to the encounter that are used to elaborate on or, in some cases, counterargue with the new information (Moriarty, 1996). In other words, people are not cognitively passive since they have a reservoir of prior knowledge and experiences that are activated by cues in a new message and this prior information serves as a sounding board for the evaluation of the new information (Moriarty, 1996). According to cognitive response theory, persuasive messages are mediated by the thoughts generated by the receiver as the communication is processed. This reflects the interest in more individualistic cognitive theories based on a receiver-oriented model, rather than the mechanistic sender-oriented perspectives associated with traditional communication models and the effects research tradition (Moriarty, 1996). Thoughts and feelings, labeled cognitive responses, are thought to influence upon attitude formation and change (Mehta & Davis, 1990). New messages are integrated with the old in order to build a coherent and consistent image, attitude, or impression (Moriarty, 1996). 2. Attitude Formation Attitude formation is an area that marketing communication scholars have been interested in. Much of the research and theory in this area parallels the work in cognitive processing since it is expected that a network of linked attitudes forming an attitudinal structure (Moriarty, 1996). 1) Multi-Attribute Model According to multi-attribute model of attitude formation (Fishbein and Ajzen, 1975), people perceive brands as bundles of attributes and, given what we know about how people perceive and process information, these bundles are built over time from bits and prices of accumulated information and experiences. Information from advertisements, as well as from other sources, is integrated into an attitude structure and this structure determines both intentions to purchase – the attitude – and the actual purchase behavior (Fishbein and Ajzen, 1975). Multi-attribute model is based on the idea of concept integration. A set of beliefs about a concept becomes organized in the mind as a cognitive structure – a complex network of integrated understandings that makes up an attitude (Moriarty, 1996). This model is clearly in line with the way IMC works. Logic suggests that the more encounters and the more consistent they are, the stronger the attitude. Therefore, conceptually integrated messages are likely to be the most effective approach to attitude as well as concept development (Moriarty, 1996). 2) Theories of Repetition Fishbein's attitude theory suggests that salient beliefs are those activated from memory to become a consideration in a particular situation. If such beliefs are anchored in a person's memory, then that means the person must have heard something relating to it previously. Therefore, saliency is built up over time through repetition as stored knowledge. This relationship of saliency to repetition is significant to understand the process of communication on which the concept of IMC is built (Moriarty, 1996). 3) Theories of Consistency Attitudes are built on the integration of cognitive and affective responses to information provided (Moriarty, 1996). They represent complex thoughts made up of likes and dislikes, as well as knowledge, considerations, and ideas organized as an attitudinal structure. Because these complex thoughts include pieces of attitudes that are interdependent, change in one attitude can affect other parts of the attitudinal structure (Moriarty, 1996).The consistency theories include Rosenberg 's Consistency theory, Heider's Equilibrium theory, and Festinger's Theory of Cognitive Dissonance. These consistency theories are relevant in particular because they addresses the need for integration without conflict when a variety of messages are presented (Moriarty, 1996). 4) Situational Theory In order to effectively deliver their key messages, marketing communicators must understand the situational constraints that complicate their efforts. Grunig and Hunt's (1984) situational theory suggests that the audiences uses different types of processing for different types of message encounters. With the adaptation of situational theory, it would be helpful to plan the use of various message channels for strategic reasons in terms of their presumed contributions to the overall message impact. 3. Channel and Source Credibility The goal of integrated communication is to create a higher level of impact and one way that can be obtained is by enhancing the credibility of the message. Credibility is situational depend upon both source presenters in a message as well as for the channel or medium carrying the message (Moriarty, 1996). Credibility is also a function of repetition – the “everyone is saying it” phenomenon. The strategy to intensify believability is by spreading credibility among a variety of sources. Learners seem positively affected when persuasive messages are presented in as credible a manner as possible (Simonson, 1984). People learn more easily from credible sources. Furthermore, attribution theory suggests that messages lacking in credibility will be discounted and will not be very persuasive (Gotlieb & Sarel, 1991; Jones et al., 1972). Person perception theories look at the effect of physically attractive communicators and models and has consistently found that attractive (vs. unattractive) communicators can have more positive impact on the products with which they are associated (Joseph, 1982). 1) Single-Channel Models & Channel Capacity Individual's perceptual system is restricted and that it can only process sensory information selectively due to limited capacity (Broadbent, 1957). In other words, when information is presented simultaneously via two different channels – such as verbal and visual – the perceptual system can only attend to one at a time, switching back and forth (Moriarty, 1996). Therefore, there is the need for integration to minimize confusion. Channel capacity refers to an area of research that seeks to determine how much information an individual can process given the physiological or psychological limits on the person or the situation (Travers, 1970). According to this theory, the more complex the information, the more it draws on overlapping and competing set of categories (Moriarty, 1996). 2) Dual Encoding Although there is a tendency to focus on the words as the carrier of meaning, visuals can have an effect on brand attitudes and that visuals apparently enhance memory for ad content (Edell & Staelin, 1983; Lutz & Lutz, 1977). Moreover, when the visual and verbal content are interactive, the brand name is integrated into visual, then recall is intensified. The opposite is also true. If the visual and verbal elements are not integrated, then recall is lower (Moriarty, 1996). 3) Signal Detection Signal detection has been used to investigate cross-channel decision making when provided signals are in conflict (Moriarty, 1996). Usually this involves measuring responses to competing audio stimuli that are emitted close to the threshold of hearing. This methodology is used by perceptual psychologists to analyze memory strength and has been proposed as a useful advertising methodology to evaluate the impact of clutter (Singh & Churchill, 1986; Tashcian, White & Park, 1988). CHAPTER 5 “TRADITIONAL” IMC APPROACH: GILLETTE CASE STUDY In order to examine the current stage of integrated marketing communication, this study provides a case study which successfully implemented an IMC campaign. This particular IMC campaign implemented by Gillette Company in 2006 is selected because the campaign describes how on-line and off- line marketing communication can be integrated successfully to create a synergy effect. This case study provides good sense of “traditional” approach of IMC in today's market place. 1. Overview Headquartered in Boston , Gillette Company is the world leader in male grooming, a category that includes blades, razors, and shaving preparations. January 2006, Gillette Company launched Gillette Fusion and Gillette Fusion Power, the new wet shaving systems for men and the world's first razors to feature advanced technology on both the front and back of the blade cartridge. Gillette's MACH3Turbo and M3Power were the top-selling shavers on the market at that time. However, Gillette was launching two revolutionary new shaving products simultaneously to further strengthen category leadership and brand value. Thus, the goal of the integrated marketing campaign was to enhance already strong brand value and to sustain the company's category leadership through the launch of Fusion and Fusion Power. In addition, a well-organized communication campaign that conveys a clear message about Fusion's new technology and performance was required. Therefore, Gillette needs to execute a powerful integrated communication campaign, including well-funded print, radio, television and internet advertising, in-store promotions, point-of-sale displays, direct mail, spokesperson, sports game sponsorship and various public relations activities to reach its target audience: the men 18 - 40 years old. 2. IMC: Strategies and Tactics “The Best a Man Can Get” is the umbrella platform for different kinds of marketing communication tactics. Under this platform, the key message is modified to maximize each marketing activity. Although the message format is slightly different in each communication channel, the key message is consistently maintained. 1) Aggressive Media Buy First, Gillette Fusion's teaser advertising hit the TV market. Anyone who watched prime-time television one week before Super Bowl Sunday probably got the message. The TV teaser ad lured viewers as mysterious images -- a spinning molecule, a desert landscape, a silver-domed lab -- flashed giddily across the screen. The spinning molecule morphs into the letter O. However, the ad doesn't say what Fusion is. “Coming 02.05.06 ” at the ending credit only gives a hint. Figure1. Teaser Advertising One month later, Gillette unveiled the Fusion system through 15-sec and 30-sec TV advertising on Super Bowl Sunday. “A revolutionary technology and a unique idea come together to create new Gillette Fusion: The best shave ever!” was the main message. The TV advertising effectively described the new razor's core competence: the five-blade technology and precision trimmer blade. Since commercials during the Super Bowl are huge attention-getter, the big debut on Super Bowl Sunday was an expensive but effective to land Fusion. Huge advertising campaign was implemented via television, radio, print, theater, and online. Figure2. Super Bowl Advertising for Debut 2) Aggressive Media Relations Right after Gillette unveiled Fusion to the public, huge media coverage followed. Newspapers, various kinds of magazines, television and Internet media reported Gillette's new razor as serious news. Interestingly, the angle on story varied widely. Fortunately, Gillette's public relations team was eager to pitch their new product's story from many different angles. Sometimes media covers the new technology of the razor, sometimes they focus on razor market competency, and sometimes they report on Fusion's advertising. As Fusion makes news through Gillette's various other marketing activities, media coverage continues. In addition, Gillette boosts buzz by appearing on popular TV shows such as The Tonight Show and The Apprentice. On The Tonight Show, Jay Leno made a joke about Fusion, saying that “Gillette's Fusion has five blades. Five blades. Even Swiss army knife doesn't have five blades.” Although his joke was cynical, Fusion's appearance on The Tonight Show created an online buzz right away. Gillette Fusion also appeared on the popular reality show, The Apprentice. During the episode, teams faced off in a marketing campaign that used text messaging to promote the Gillette Fusion Razor. Showcasing Fusion on The Apprentice was a great way to build buzz for the product. The show enabled Fusion to reinforce its features and benefits in a unique way. . Figure3. PPL on Popular TV Shows 3) Enforcing Partnership & Sponsorship To back up the Super Bowl marketing, an equally large distribution plan was critical. And that's what Gillette did when it partnered with CVS, the nation's largest pharmacy chain, to release Fusion to every U.S. CVS store—5,400 of them—in a single day before any other retailers had the razors. In partnership with CVS, Fusion also executed in-store promotions and point-of-sale displays. In addition, Gillette Fusion co-sponsored Soundcheck, Wal-Mart's in-store concert project, as part of a media deal between the brand and Wal-Mart.com. It was a smart way to keep a strong partnership with the world's leading retailer. Gillette was an official sponsor of NASCAR. Gillette continued to leverage the new Gillette Young Guns program throughout the 2006 NASCAR NEXTEL Cup Series season to strengthen its partnership with men's sports and NASCAR. Gillette conducted a unique event promotion during the most important auto race of the year, Daytona 500. Before the national anthem, more than 118,000 fans were given cards to produce two visual stunts. During the singing of the National Anthem, the cards showed a patriotic design, then flipped to reveal the Gillette Fusion logo. The stunt was slated to air live during pre-race coverage on NBC. 4) On-line Promotion Fusion's well-designed web-site (www.gillettefusion.com) provides plenty of information about the innovative razor's features. A science lab web-site offers a unique cyber experience through 3D graphics. The web-site works as the information hub for the various off-line events. People can register at Gillette Fusion Music (www.gillettefusionmusic.com) to download the latest Gillette Fusion Mix MP3 files and to apply for a chance to win a trip to the 4th Annual Miami Spring Fest or an iPod Nano. In addition, in another web-site called “Get Geared Up”, people can log on and play the instant Win Game with the new Gillette Fusion razor by shaving the room with mouse. The more times one plays, the better one's chances are to win. In the meantime, the web-site keeps asking players to tell friends about the Gillette Fusion Get Geared Up Sweepstakes and Instant Win by clicking on the Tell-A-Friend button. 5) Off-line Promotion The "Face of Fusion" tour was a nationwide contest to launch the new Gillette Fusion razor for men. Each contestant competed for $500 and a Gillette Fusion prize pack; the winner advanced to the national competition. The national winner received a 2006 Dodge Charger, a 12-month contract with FORD Models and the chance to appear in a Gillette Fusion ad. Since this event tours ten cities, local media coverage and buzz-making were followed. In addition, massive sampling was conducted through direct mail. Sampling is an effective way to create an on-line buzz. People who received Fusion spread their opinion and information through their blogs. And those blogs create even bigger buzz. Lots of photo and reviews of Fusion hit appear on-line. 3. Case Analysis Synergy was generated by the IMC campaign. For example, the sweepstakes event in New York City would be much less effective if it was done by itself. Since the event was tied to the TV show The Apprentice, which was the perfect place for Fusion, the sweepstakes got enormous media attention and created buzz. In another instance, the “Face of Fusion” tour was the integration of an on-line event, an off-line event, celebrity endorsement, and ambush marketing. Using celebrities from the hugely popular TV show “American Idol,” Gillette received photo coverage without directly sponsoring the show. This huge integrated marketing communication campaign is helpful to understand the current stage of the IMC campaign. More specifically, this campaign shows how on-line and off-line marketing communication can be integrated via a web-site as an information hub. In addition, this campaign suggests that integration under the unified theme is the key to a successful marketing communication campaign. However, while online activities and off-line activities were tightly connected together under the overarching theme, there is no clear integration among online promotions. In other words, this IMC campaign still lacks integration among online media which can deliver consistent message to wired consumers. CHAPTER 6 NEW TECHNOLOGY AND IMC The advancement in communication technology benefited IMC. Not only has technology provided new and innovative channels of communication, it has also made the availability, development, and management of databases an indispensable tool in managing customers today (Schultz & Schultz, 1998). A most important advantage of the IMC approach is greater focus on more specific and well-defined target markets (Schultz & Kitchen, 1997; Kitchen & Schultz 1999). Due to the technology, the IMC approach is now able to more accurately capture empirical behavioral data on consumers, employ valuation tools and techniques, and differentiate customers beyond merely economic criteria (Schultz & Schultz, 1998). Although previous studies have shown the benefits of new communication technology, integrating new communication technology into a marketer's IMC campaign is still in its infancy. This study provides two pioneering cases which successfully integrated a new online technology into their marketing communication mix. These cases suggest how marketers can maximize their communication goals by extending their online channels. 1. Virtual World: The Convergence of Online Media One recent trend in online marketing communication is the growth of various 3D virtual environments such as MMORPGs and non-game virtual worlds. Marketers are starting to explore these virtual environments to communicate with target audiences who may be difficult to reach through traditional media outlets, providing the opportunities to interact with their brand and product. Some pioneering companies actively extend their IMC campaign channels to this virtual world. Among those various virtual worlds, Second Life is a non-game type of multi-player 3D virtual environment that has gained the most attention from corporate America and mainstream media over the past few years. Second Life is a virtual environment where a number of popular elements of the Internet such as user-generated content, social networking, e-commerce, instant messenger, video games, online community, and avatars are integrated in a 3D graphic format. Second Life has grown explosively since its 2003 launch and currently more than nine million “residents” around the world inhabit the virtual world spending more than 1 million dollar in a day. Following cases discusses the potential of non-game 3-D virtual environments as an effective IMC channel and the successful communication strategy in this wired age. 1) American Apparel American Apparel, a Los Angeles-based clothing company known for its provocative advertisements and sweatshop-free products, is a pioneer brand in Second life . When American Apparel learned that the demographics of residents in Second life matched the demographics of their target audience, they quickly jumped into this virtual venue. In June 2006, American Apparel opened a virtual store and became the first real-world retailer to open shop in Second life . To maintain its brand image, American Apparel wanted to build its virtual store to resemble its “ real-world ” stores, so the company wisely hired popular Second life architect Aimee Weber to design the store. Her 6,000-square-foot, two level virtual replica includes interior and exterior details such as hardwood floors, signs, and track lighting. In this virtual store, Second life residents can buy American Apparel products for their avatar. Most of the store ' s virtual clothing retails for less than $1, which translates to about 270 Linden Dollars, the currency exchanged in Second life . The goal of American Apparel ' s presence in Second life is much more than selling virtual clothing. According to Raz Schionning, the company ' s Web director, American Apparel wanted to execute a “ boundary-pushing experiment ” to reach young, tech-savvy consumers. He added that “ even though Second life has been around for three years, it's still cutting-edge, and just to be aware of it and to have gone so far as to get involved with it means that you're a trendsetter, not a trend follower. ” ( Warren , 2006) American Apparel has kicked off several new marketing initiatives in its virtual store. The company ' s most interesting and innovative promotion is the “ Be Your Own Twin ” campaign. When users buy a virtual product with their avatar from American Apparel ' s online store, they receive 15% discount on the same item in the real world. For example, if an avatar buys a virtual Pom-Pom Beanie, the user will receive 15%-off coupon for the purchase of a Pom-Pom Beanie at American Apparel ' s online store. In addition, the company provides a link to American Apparel ' s website so that users can easily purchase their product. Figure4. Inside American Apparel ' s Second life store Therefore, if avatar looks good in their new virtual clothes and receives compliments on the outfit from virtual friends, this may influence users to buy the same outfit for themselves. This virtual-consumption marketing strategy is unprecedented, as it encourages users to become consumers through their avatars. Previous to this, some online retailers allowed shoppers to try on products in a virtual world before they purchased them in real life. The virtual stores in Second life , however, are different from those online retailers in many ways. Users are socially active through their avatars in Second life , unlike the avatars found in online retail sites. Moreover, avatars in Second life are sophisticatedly modified, upgraded, and coordinated by their users for their second social life. In other words, avatars in Second life are true “ second egos ” of consumers. Although many virtual store initiatives have failed to really tap into the Second life community because they don ' t offer enough variety in terms of merchandise and entertainment, American Apparel ' s virtual-consumption “ Be Your Own Twin ” campaign has been highly successful. 2) Toyota Scion Scion is Toyota ' s rapidly growing, youth-focused compact-car brand. In 2006, this unexpectedly popular automobile surpassed its 150,000-car-a-year sales goal by 25,000 vehicles (Chon, 2006), and the company ironically decided to restrain production volume to keep sales from going above 150,000 vehicles the following year. Scion ' s marketing strategies help to keep the brand image as special, cool, and cutting-edge; nevertheless, the company sacrifices some of its sales. In fact, to enhance its unique brand identity, over the past few years Scion has reduced its traditional-media advertising. Toyota mostly focuses attention on the brand by marketing it through experiential events, branded entertainment, and social networking sites. However, even MySpace.com has become too mainstream for the Scion after News Corp. bought the website. In a WSJ interview (Chon, 2006), Mark Templin, vice president of Scion, says, “ Because we no longer have to focus on brand awareness, we can be even more edgy and more risky. ” Scion focuses their marketing campaign on a mere 10% of 142 million consumers under the age of 35, and Toyota especially wants to reach young, trend-setting, tech-savvy individuals. Figure5. Scion ' s virtual showroom Establishing a virtual presence in Second life was an ideal way for Toyota to create an extraordinary venue for marketing the Scion. In November 2006, Toyota launched “ Scion City , ” a gigantic virtual Scion showroom in Second life . Toyota was the first automotive company to jump into virtual world, and the company has launched many innovative virtual marketing strategies, which many other companies have copied. Second life residents are able to not only visit Scion City but they also can test-drive various Scion models. The virtual Scions were sophisticatedly designed by Francis Chung, who runs the famous virtual automaker Dominus Motor Company. When avatars climb into a virtual Scion, they can view expertly rendered interior details, such as the dashboard, steering wheel, and seats. If users like the Scion after they test-drive it, they can buy a virtual Scion for their avatar for 300 Linden Dollars (equivalent to about 1 U.S. dollar, depending on the current exchange rate). 2. Case Analysis In current new media environment, simply presenting a web-site on the internet is not enough to attract wired consumers. Instead, communication through various online channels such as blogs, brand communities, social networking sites, and user-generated content sites are strongly needed. In this regard, the virtual environment such as Second Life in the above cases could be one essential marketing communication channel mix for the marketers in the wired age. The virtual environment technology is expected to be one of the most effective online communication tools in the near future. Since a virtual environment is the integration of popular existing elements of online media such as user-generated content, social networking, e-commerce, instant messenger, video games, online community, and avatars, it has a strong potential as a communication medium. CHAPTER 7 INTEGRATED MARKETING COMMUNICATION REVISITED Based on the literature of “traditional” IMC, theory of IMC, and analysis of case studies in previous chapters, this study suggests the need of new integrated marketing communication approach with an exclusive focus on online media. Current IMC campaign still lacks integration among online media which can deliver consistent message to wired consumers. While online marketing communication and off-line marketing communication are integrated, there is no clear integration among online media. Although marketers are trying to actively adapt those new online media, it is hard to find clear integration. Therefore, the integrated marketing communication approach should be redefined in today's media environment: an exclusive online integrated marketing communication approach is needed to interact with the wired consumer in 21 st century. In order to meet the growing demand of online marketing communication, marketers should not only extend diverse online communication channel, but also integrate those online media. In the traditional IMC approach, the Internet is considered merely as one channel of the communication mix. The Internet should be appreciated as more than just a marketing communication channel in the current wired age. In addition to the company web-site and banner advertising, many online communication channels are available such as web-magazines, blogs, user-generated websites, social networking sites, MMORPG (massively multi-player online role-playing game), and MUVEs (multi-user virtual environment), to name a few. IMC approach for online marketing communication has promising since almost all traditional marketing communication activities are now available through those various online communication channels. Placing banner advertising on the portal web-sites, placing b-roll and television advertisements on YouTube, holding online contests and competitions, implementing direct mail via email, maintaining fan clubs in the online brand community and social networking website, making publicity in the web-magazines and online news sites, implementing The IMC approach in online communication will provide clarity, consistency, and maximum communication impact to wired consumers since the theories of traditional IMC can be adapted on online media environment without any loss. IMC theories such as script theory, schema theory, contiguity theory, construction theory, cognitive response theory, situational theory support the strong effect of IMC approach in online environment. The same synergy effect will be achieved in online environment. In sum, this study argues that the best way to implement strategic communications to wired consumers in the 21 st century is the integrated marketing communications approach with a focus on online media. This study suggests integration marketing communication approach is still the most effective concept in a wired media environment. The traditional integrated marketing communication approach should be revisited and modified. By adapting a new approach designed exclusively for the online consumers, integrated marketing communication may enjoy another heyday in the 21 st century. REFERENCE Abelson, Robert P. (1981). "Psychological Status of the Script Concept," American Psychologist , 36 (7) (July): 715-729. Belk, Richard (1988), "Possessions and the Extended Self," Journal of Consumer Research, 15, 139-168. Belch, G. & Belch, M. (1995) Introduction to Advertising and Promotion: An Integrated Marketing Communications Perspective . Chicago : Richard D. Irwin. Brown, J. (1997) Impossible dream or inevitable revolution? Investigating the concept of integrated marketing communications. Journal of Communication Management , 2(2), pp. 70 – 81. Barry, Thomas E. (1987). "The Development of the Hierarchy of Effects: An Historical Perspective." In Current Issues and Research in Advertising , 10: 251-295. Berlyne, Donald E. (1970). "Novelty, Complexity and Hedonic Value." Perception and Psychophysics , 8: 279-28l. Broadbent, D. E. (1957). "A Mechanical Model for Human Attention and Immediate Memory." Psychological Review , 64 (3): 205-215. Broadbent, D. e. (1958). Perception and Communication , New York : Pergamon Press. Burgoon, Judee K.; Burgoon, Michael and Miller, Gerald R. (1981). "Learning Theory Approaches to Persuasion." Human Communication Research , 7 (2): 161-179. Cacioppo, J. T., Harkins, S. G. & Petty, R. E. (1981). "The Nature of Attitudes, Cognitive Responses, and Their Relationships to Behavior." In R. Petty, T. Ostrom, & T. Brock, eds. Cognitive Responses in Persuasion. Hillsdale , N.J. : Erlbaum. Comelissen, Josep P. and Andrew R. Lock(2000), "Theoretical Concept or Management Fashion? Examining the Significance of IMC," Journal of Advertising Research, 40 (September-October), 7-13. Duncan, Thomas R. (2002), IMC: Using Advertising and Promotion to Build Brands, New York , NY : McGraw-Hill, Inc. Duncan and . (1994), "New Sides of IMC," in Faure, C. and L. Klien (Eds.) Marketing Communications Strategies Today and Tomorrow: Integration, Allocation, and Interactive Technologies, Cambridge , MA : Marketing Science Institute. Duncan, Thomas R. and Stephen E. Everett (1993), "Client Perceptions of Integrated Marketing Communications," Journal of Advertising Research, 33, 30-39. Duncan, Thomas R., Clarke Caywood and Doug Newsom (1996), Preparing Advertising and Public Relations Students for the Communications Industry in the 21 Century: A Report of the Task Force on Integrated Communications. Eagly, Alice H. and Shelly Chaiken (1993), The Psychology of Attitudes, New York , NY Brace Jovanovich. Engel, James F., Roger D. Blackwell and Paul W. Miniard (1993), Consumer Behavior, 7""ed., London : Dryden, 391-417. Edell, Julie A. and Staelin, Richard E. (1983). "The Information Processing of Pictures in Print Advertisements." Journal of Consumer Research , 19: 45-61. Finn, Adam (1988). "Print Ad Recognition Readership Scores: An Information Processing Perspective." Journal of Marketing Research. 25 (May): 168-177. Fishbein, Martin and Ajzen, Icek (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Reading , Mass: Addison-Wesley. Gomes, Mary E., Stephen Leupold, and Matthew Albracht (1998), "Advertising, Community,and Self," Revision, 20 (4), 26-37. Goming, Matthew P. (1994), "Putting Integrated Marketing Communications to Work Today," Public Relations Quarterly, 39 (3), 45-49. Gotlieb, Jerry B. and Sarel, Dan (1991). "Comparative Advertising Effectiveness: The Role of Involvement and Source Credibility." Journal of Advertising, 20: 38-45. Grunig, J. E. & Hunt, Todd. (1984). Managing Public Relations, New York : Holt, Rinehart & Winston. Guthrie, E. R. (1950) "Association by Contiguity." In Psychology: A Study of a Science, S. Koch, ed. New York : McGraw Hill. Gould, Stephen. J. (2000), "The State of IMC Research and Applications," Journal of Advertising Research, 40, 22. Hackley, Christopher and Philip Kitchen (1998), "IMC: A Consumer Psychological Perspective," Marketing Intelligence and Planning, 16 (3), 229-235. Joseph, W. Benoy (1982). "The Credibility of Physically Attractive Communicators: A Review." Journal of Advertising, 11 (3): 15-24. Kliatchko , J. (2005). Towards a new definition of Integrated Marketing Communications (IMC). International Journal of Advertising, 24 (1), 7-34. Lavidge, Robert J. and Gary A Steiner (1961),"A Model for Predictive Measurements of Advertising Effectiveness," Journal of Marketing, 25, 59-62. Lutz, Kathy A. and Richard J. Lutz (1977), "The Effects of Interactive Imagery and Leaming: Application to Advertising," Journal of Applied Psychology, 62,493-498. Mehta, Abhilasha and Davis, Clive M. (1990). "Celebrity Advertising: Perception, Persuasion and Processing." AEJMC Annual Conference, Minneapolis , MN . Maclnnis, Deborah J. and Linda L. Price (1987), "The Role of Imagery in Information Processing: Review and Extensions," Journal of Consumer Research, 13,1-23. McGuire, William J. (1968), "Personality and Attitude Change: An Information Processing Theory," in Psychological Foundations of Attitudes, Greenwald, A.G., Brook, T.C., and Ostrom T.M., eds.. New York , NY : Academic Press. McGrath, J. (2005), “IMC AT A CROSS ROADS: A theoretical review and a conceptual framework for testing,” Marketing Management Journal, p55-66. Moriarty, S. (1996). The Circle of Synergy: Theoretical Perspectives and an evolving IMC Research agenda in Integrated Communication: Synergy of Persuasive Voices, edited by Thorson, E. and Moore, J.. New Jersey USA: Lawrence Erlbaum Associates Nowak, G. & Phelps, J. (1994) Conceptualizing the integrated marketing communications' phenomenon: an examination of its impact on advertising practices and its implications for advertising research. Journal of Current Issues and Research in Advertising, 16(1), pp. 49–66. Olson, Jerry C, Daniel R. Toy and Phillip A. Dover (1982), "Do Cognitive Responses Mediate the Effects of Advertising Content on Cognitive Structure?" Journal of Consumer Research, 9, 245-262. Perry, David K. (1996), Theory and Research in Mass Communication: Contexts and Consequences, Mahwah , NJ : Lawrence Erlbaum. Petty, Richard E. and John T. Cacioppo (1986), Communication and Persuasion: Central and Peripheral Routes to Attitude Change, New York , NY : Springer-Verlag. Preston , Ivan and Esther Thorson (1984). "The Expanded Association Model: Keeping the Hierarchy Concept Alive." Journal of Advertising Research, 24 (1): 59-66. Preston , Ivan (1982). "The Association Model of the Advertising Communication Rittenburg, Terri L. and Laczniak, Russell N. (1990). "Future Research in Television Advertising: TheCommercial Break, Not the Commercial." Proceedings of the 1990 Conference of the American Academy of Advertising , Patricia A. Stout, ed. Schultz, Don E. (1996) "The Inevitability of Integrated Communications," Journal of Business Research, 37, 139-146. Schultz, Don E. (1998), "New Century Needs New Marcom Methods," Marketing News, 32, (3), 12-13. Schultz, Don E. and Phillip .J. Kitchen (1997), "Integrated Marketing Communications in U.S. Advertising Agencies: An Exploratory Study," Joumal of Advertising Research, 37 (5), 7-18. Schultz, Don E. and Phillip J. Kitchen (2000), "A Response to 'Theoretical Concept or Management Fashion?"' Joumal of Advertising Research, 40, 17. Shimp, Terrence A. (1990), Promotion Management And Marketing Communications, Chicago , IL.: Dryden Press. Snyder, Beth (1991), "Rethinking 'Integrated,"''Advertising Age, 62 (46), 32. Singh, Surendra N. and Churchill, Gilbert A. (1986). "Using the Theory of Signal Detection to Improve Ad Recognition Testing." Journal of Marketing Research, 23 (November): 327-336. Simonson, Michael R. (1984), "Media & Persuasive Messages," Instructional Innovator, February: 23-24. Strong, Edward K. (1925), The Psychology of Selling, New York , NY : McGraw-Hill. Thorson, Esther (1990), "Consumer Processing of Advertising," in Current Issues and Research in Advertising, Ann Arbor , MI : University of Michigan . Travers, Robert M. W. (1970) Man's Information System. Scranton PA : Chandler Publishing Co. Tashchian, Armen; White, J. Dennis; and Pak, Sukgoo (1988). "Signal Detection Analysis and Advertising Recognition: An Introduction to Measurement and Interpretation Issues." Journal of Marketing Research, 25 (November ): 397-404. Thorson, Esther (1991). "Consumer Processing of Advertising." Current Issues and Research in Advertising, 12: 197-230. Wackman, Daniel B. (1973). "Theories of Interpersonal Perception." In Consumer Behavior: Theoretical Sources, Scott Ward and T. S. Robertson, eds., Englewood Cliffs, NJ: Prentice Hall.