INTEGRATED MARKETING COMMUNICATIONS

TOPIC OF DISCUSSION: CRITICALLLY EVALUATE THE CONTENTON THAT today the dominance of one-tomany (mass) communications is decreasing in favor of narrowcasting and one-to-one communications

SUBMITTED TO:

SUBMITTED BY:

Philip J. Kitchen

ASHISH MOHAN SRIVASTAVA PROGRAMME: TRANSFER CREDIT ETU20101290 1

REPORT: INTEGRATED MARKETING COMMUNICATIONS

My flow of ideas!!!
Standard definition: mass communication My take on Mass Communication Past and Evolution of Mass Communication Present of Mass Communication (in terms of channels) Augmented features provided by Mass Communication One-to-one communication: An Insight Present of narrowcasting Augmented features provided by One-to-One Communication Clash of titans: One-to-One Vs One-to-Many Key features that led to One-to-One Dominance over its counterpart Implications (Points to be noted) References

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ABC OF MASS COMMUNICATION!!!

Mass Communication: It refers to the notion of communicating through media technologies, including Internet, television, newspapers, and radio and the organizations which control these technologies. (Source: Wikipedia accessed on 13 April, 2011) Inference drawn: We can infer that mass media really plays an important and significant role in shaping the perceptions of the public on a variety of important issues, both through the information that is conveyed through them, and through the analysis and interpretations that they place upon this information. They also play a large role in shaping modern culture, that is by selecting and portraying a particular set of beliefs, values, and traditions (an entire way of life), as reality. By portraying a certain interpretation of reality, they shape reality to be more in line with that interpretation. My take on Mass Communication: To me Mass Communication is actually analogous to Web Casting which is actually an acronym for broadcasting. It could be either over the internet, your own TV Channel, with your own TV programs, on AIR 24 hours every day, the World are the audience, all ages, all sexes etc. Now the questions that come to our mind are: Why web-casting? What can you web-cast? Some of the plausible answers could be: To promote a product, to promote services, teaching things for e.g. cooking etc These days power point presentations are made into webcast. Another question that strikes the chords of my heart and mind is where you can web-cast? There is plethora of sources available. For example blip.tv, break.com, buzz net, crackle, Daily motion, facebook etc.

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THE PAST:

EVOLUTION OF MASS COMMUNICATION MEDIA: The invention of the printing press in the late 15th century gave rise to some of the first forms of mass communication, by enabling the publication of books and newspapers on a scale much larger than was previously possible. Newspapers The invention of high-speed rotary steam printing presses, and railroads in the early 1800s facilitated large-scale distribution of newspapers over wide geographical areas. Since the beginning, high-circulation newspapers have been a medium for conditioning public opinion. . (Source: Wikipedia accessed on 13 April, 2011) My inference: As such newspaper was an effective means of mass communication and in the beginning there was a two-way medium with lots of feedback from the readers however the increase in circulation led to a decline in feedback and interactivity from the readership, making newspapers a more one-way medium. Electrical telegraph In the 1840s, the first commercial electrical telegraph was developed. (Source: Wikipedia accessed on 13 April, 2011) My inference: It facilitated separation of communications from transportation, enabling messages to be transmitted instantaneously over large distances. Movies Cinema began to be a large-scale entertainment industry in 1894, with the first commercial exhibition of film. The first films with a narrative began to be distributed in 1987. (Source: Wikipedia accessed on 13 April, 2011) My inference: The universality of its influence was great as experts opined that movies were the reflection of the real life in terms of reel life so it empowered the movie makers with the power of playing with the emotions of the general public also from communication perspective we can

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infer that movies gave a new dimension of broadcasting information of current trends, fashions, technology etc. in the society as a whole.

Radio The first commercial broadcasts in the United States began in the 1920s. Television
The first television broadcasts for a mass audience began in 1936 Germany and UK. Regular mass TV broadcasts in the United States only began in 1948, with a show hosted by Arturo Toscanini and starring comedian Milton Berle.(Source: Wikipedia accessed on 13 April,2011)

My inference: These are perhaps one of the most powerful means of communication for broadcasting
as they have become an inseparable part of household for millions of users. They have a wider spectrum of domain. They bolstered the effectiveness of mass communication many folds.

PRESENT!!!

SOME OF THE RECENT BROADCASTING SERVICES IN PLACE ARE:

Voice Broadcasting Services: It allows clients to simultaneously send a personalized voice message to hundreds or thousands of recipients fast.

E-Mail Marketing: E-mail marketing software is easy to use and helps organizations of any size create, send and monitor e-mail campaigns to targeted customer segments. E-mail marketing platform facilitates sending of e-mails quickly and cost effectively.

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Text Messaging: are gaining significant momentum as companies strive to build brand loyalty with users and automate their text marketing campaigns through an easy to use Webbased interface.

GPS Enabled Target Marketing: It enables clients to send specialized messages to mobile users based on their location and proximity to client establishments, through GPS (Global Positioning Satellite) technology. (Source: Blast Companys website accessed on 16 April, 2011)

AUGMENTED FEATURES!!!

FROM MASS COMMUNICATION LEADING TO MASS MARKETING: Mass marketing is the maximum exposure of product advertising to consumers. It's the opposite of niche marketing where the idea is to advertise and market products to specific target markets. A target market is a segment of consumers identified through research to be the most likely to buy a particular product. In mass marketing, products that many people want or need such as soda, toothpaste, bread and household cleaners are advertised to a large audience. My stance: Mass communication has paved way for the success of marketing and has taken marketing to greater heights. With the emergence of new technologies such as television and radio advertisers were able to reach wide audiences of people with each advertising message. This gave birth to the concept of Mass Marketing and a new chapter in the history of marketing was added. Now it became way easy to market products that most people needed or wanted

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through the medium of broadcasting. Thus, mass marketing required a communication channel to reach consumers and broadcast technology fulfilled that requirement. The immediate effect of evolution of mass marketing under the aegis of mass communication was wider reach to the consumers. For example, products advertised during national television programs reach consumers in entire countries. As long as these products are available countrywide, advertising to such a huge demographic is considered successful marketing strategy. Consumers seeing products advertised on television commercials are more likely to choose them over similar store products that weren't promoted. Also as we have learnt in DESIGN OF NEW PRODUCTS that the best way to influence your consumers is to make them familiar with the product LIVE. It was found that showing television viewers the actual product and communicating benefits such as getting sparkling white teeth by using Brand X toothpaste has been shown to increase sales of advertised products One of the other added advantages derived from mass marketing and indirectly from mass communication is:BRAND RECOGNITION. Actually Brand Recognition occurs when consumers recognize a product through its packaging, name and promoted benefits. Consumers seeing a new product advertised that appeals to them are likely to add it to their shopping list. Mass marketing also works to inspire brand loyalty by reminding consumers of the benefits of a product over competing products. Through repeated product advertising, advertisers hope consumers will continue to purchase the item. Through mass marketing strategy, brand managers create a wide appeal for their products to match the wide scope of their audience. Another aspect associated with Mass Marketing is Undifferentiated Marketing. The name is so given since the typical strategies of reaching different market segments aren't used. In differentiated marketing, at least two different market segments are targeted. Each segment is reached through unique promotional strategies. This type of market concentration can be extremely effective in creating product sales, but it's more expensive than mass marketing. The main benefit of undifferentiated marketing is that it does not require as much focus and research identifying the tastes of individual market sections. It can also mean the company can be confident that it will not miss out any potential consumers in its marketing. This strategy

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makes sure marketing reaches people who do not fall into the supposed target market but would still be interested in buying. Undifferentiated marketing can also be suitable for a product or service that is intended to be profitable based on quantity of sales rather than high mark-ups or a high price. This often applies to products that meet common needs such as food, clothing or transport. If carried out successfully, undifferentiated marketing can lead to a product being so well-established that it dominates a market and even becomes synonymous with that market. (Source: wisegeek.com accessed on 16th April 2011) My inference: From the above instances we can clearly infer that mass communication is an important chapter in the life of marketing as it provides platform for effective implementation of marketing by acting as a channel for reaching to the target consumers. Further mass communication is very important in context of underdeveloped countries like Namibia etc. as it is necessary in such countries to increase the brand awareness and mass communication is probably the best solution for that. ONE TO ONE COMMUNICATIONS/NARROWCASTING: AN INSIGHT
PRESENT:

Narrowcasting could be defined as the distribution, management and display of rich content in public spaces over a centrally controlled network. It is an approach that concentrates on providing services or products to one customer at a time by identifying and then meeting their individual needs. It then aims to repeat this many times with each customer, such that powerful lifelong relationships are forged. As such it differentiates customers rather than just products. Narrowcasting technologies and networks have changed the manner in which brand managers and retailers can reach and interact with customers. This new channel has arrived at such a relevant time as the effectiveness of traditional broadcast TV advertising is moving towards a downturn. Narrowcasting enables you to:

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1. Reach customers at the point of purchase and from out of home locations with highly focused value added content and promotional information 2. Specify the time of the day, level of traffic, store locations or other metrics for delivery of promotional messages and other content. 3. Centrally manage, update and distribute content in real time. 4. Enhance brand and visual merchandising by shifting from traditional static signage to dynamic networked displays in public spaces.
AUGMENTED FEATURES:

ONE TO ONE COMMUNICATION GIVING WAY TO ONE TO ONE MARKETING: One to One Marketing is more than a sales approach. It's an integrated approach that must permeate all parts of an organization: marketing, sales, production, service, finance, etc. In fact, One to One Marketing needs the guiding vision that drives the whole company. One to One Marketing recognizes that lifetime values of loyal customers who make repeat purchases far exceed that of fickle customers who constantly switch suppliers in search of a bargain. This is particularly true within financial services where the customer acquisition costs are very high. Whilst at first the concept appears to be only suitable for a niche market of rich clients, modern information technology, particularly the new interactive mediums, provide an opportunity to bring personalized and customized products to the mass market yet at a mass produced price. This is called Mass Customization. However, it does require new thinking that breaks away from the traditional concepts of mass marketing and mass production. Taking an example of American Finance and Investment, Inc. (AFI), a top provider of web based mortgages. It has discovered a new way to enhance call center interactions with its customers. AFI offers its customers an efficient and cost-effective means of shopping for a mortgage loan, but recognizes that human interaction is still critical to a final decision for most people. It now offers its customers an immediate phone connection at the moment of need and an opportunity to see personalized, visual, explanatory materials on the Web as the conversation takes place. Using teleweb technology from Web line Communications, AFI enables its customers to hit a callback button on the Web site to request immediate human assistance. Instead of just putting marketing materials up on the Web (or mailing them out, as traditional
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competitors do), AFI can engage the customer in a conversation that includes the online exchange of files and Web content. This enables the customer representative to explain the companys products and terms in a powerful way, leading the customer to materials of particular relevance. (Source: http://www.managingchange.com/guestcon/highimp.htm accessed on 16th April 2011) My Inference: As it is quite clear that one to one communication has given way to one to one marketing and thus critical for the success of new marketing strategies. As in the case of AFI we can clearly derive that one to one marketing requires a high impact customer interaction which can be achieved by personalized human assistance via the web. Example showing the immense application of ONE TO ONE MARKETING AND RELATIONSHIP Another interesting provider of interaction enhancement capabilities is Sky Alland Marketing. It has developed a capability called Smart Talk. It stems from the premise that good dialogue is good marketing. At the heart of Smart Talk is good database management, because the technique wont work unless you can readily infuse your calling script with relevant, personal customer data. In a Smart Talk scenario, information captured during previous contacts with the customer is fed into the calling script, creating the potential for a true one-to-one dialogue. Sky Alland relies on Smart Talk to build customer relationships for clients such as Porsche, Mitsubishi and Owens Corning. In the case of Mitsubishi, Sky Alland captures customer phone contacts verbatim; yielding a treasure-trove of information that can be passed along to a local dealer or worked into the script of a future outbound call. Smart Talk empowers the caller to engage in a personal, intelligent conversation with customers about their specific concerns. For example, if a Sky Alland customer representative makes a call to determine if the customer is satisfied with the way the car was sold and delivered, and finds during the course of the call that the sun roof isnt working properly, that information is conveyed to the dealership so the problem can be fixed. (Source: http://www.managingchange.com/guestcon/highimp.htm accessed on 16th April 2011)

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ONE-TO-ONE VS ONE-TO-MANY COMMUNICATION CRITICAL EYE!!!  Difference in terms of nature and scope of application: As we have seen the insights of both the approaches we can clearly infer that both the approaches have certain inherent characteristic features which make their application effective in their respective specific environment. For instance if we look at the underdeveloped countries like Namibia, Sub Saharan African countries like Senegal etc there Mass Communication seems to be more relevant as the competition is not very fierce and the level of awareness of the people is not appreciable hence a proper mass communication is required by the marketers to promote their products and reach as much people as possible. On the contrary talking about countries like France, UK, and USA etc. the concept of one to one marketing seems adequate and perfectly relevant because due to the fierce competition in these developed countries the level of interaction with the customers has to be differentiated and for that specific customers have to be catered as per their specific needs and demands. Again another instance of differentiation could be observed in business to consumer sector. In B2C sector the concept of one-to-many communication seems relevant but the multiplicity of electronic media has the ability to change one-to-many to one-to-one form. Another instance of differentiation is visible in the distribution driven and consumer driven sectors. For example in distribution driven sector like the Carrefour supermarket chain we know that one-to-many would be effective and sufficient to carry out the business well but in case of the consumer driven field like that of Bulk e-mailing it is one-to-one that is more effective and important.

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 Difference in terms of channels and mediums: Lets start with the electronic media first. The electronic media has got immense power and ability to alter the identity and size of the target audience. As we have seen that the printing press, the radio, and the television allowed for messages to reach large numbers of people but one thing that was missing was a two way communication because these were mostly one way form of communication and interaction. Then we have the CB Radio. It is actually revolution in the field of communication as it allowed even the strangers to become a part of electronic community without any personal commitment. One could communicate with one other person or with many people. The price of entry to this medium is moderate. Thus it is an effective channel for one-to-many communication. Computer mediated communication allows for more flexibility in access levels as well as audience size. Email for example can be sent to one person or many. One can list each recipient individually or create a mailing list of many names for periodic mailings. In this case, the senders intent determines who receives the message. Thus if it is case of bulk emailing then it acts as a channel for one-to-many communication whereas if it is guided to cover specific consumer then it performs the role of one-toone communication. Usenet is a channel of communication wherein one can send message to a large forum of people. The architecture of Usenet is such that it changes the interaction pattern within the group. For example in our college(IMT Nagpur) we have a Google Group in which one sends a message to the group and there is a moderator to the group, who decides if the message is appropriate or not. Assuming the message is accepted, that message is read by the users who choose to read that message. Thus also comes under the category of the one-to-many communication. What is interesting with Usenet is that with 22Gig of messages going through a day in a public self governed arena, one would expect some level of anarchy. This is not the
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case. What makes it even more of a marvel is that it is not just one specific person sending messages to many at a time, but any involved person can send a message. It is very easy for anyone to post to a group. A moderator my sometimes be involved, however, most groups are not moderated. One does not always receive a reply, however, if certain forms of etiquette are followed, the barriers to entry into a community can be lowered. This depends on the individual group. Some groups post rules periodically, some post messages once something inappropriate is sent. Others have moderators. FUTURE PROSPECT: Another striking concept that has come into picture with the advent of Usenet is mass multiple channel interaction electronic communication. So, what is currently needed are newer and better interfaces to better understand the culture of systems and research into these forms of mass multiple channel interaction electronic communication. GRAPHICAL REPRESENTATION OF THE DIFFERENCE BETWEEN CHANNELS OF ONE- TO- ONE VS ONE -TO- MANY COMMUNICATION!!!

Mediated

One-to-one

Mailing list Chat

Usenet group CB radio

E-mail Messaging Talk Net meeting

Telephone 2 people

Conference Call

Conversation 2 people

Meeting,

Group Meeting

Conference, Bulk Mailing

Face to face One-to-one One-to-many 13 REPORT: INTEGRATED MARKETING COMMUNICATIONS

(SOURCE: http://web.media.mit.edu/~kkarahal/generals/communication/one_group.html accessed on 16th April 2011)

KEY FEATURES THAT HAVE LED TO THE DOMINANCE OF ONE-TO-ONE COMMUNICATION VIS--VIS ONE-TO-MANY COMMUNICATION  It supports one-to-one marketing that delivers economies of scope and not economies of scale unlike its counterpart.  It aims at concentrating initially on those 20% or sometimes even those 10% of customers who are the most profitable of the lot.  In one-to-one marketing driven by one-to-one means of communication the approach is to provide tailor-made products to meet particular needs. The idea is to make competitive shopping difficult and to shift the focus from price to benefits.  The goal behind one-to-one marketing driven by one-to-one means of communication is lifetime share of customer  Taking advantage of the positives of one-to-one communication one can extend the service to more customers by developing Mass Customization capabilities and you then gain an ever increasing market share without the need to match the lowest price mass market supplier.  With an intimate knowledge of individual customers, the products and services can be more accurately targeted This implies right specification at the right time in the right way. SOME SECONDARY SHADES OF DIFFRENCES BETWEEN THE SCOPE AND AMBIT OF ONE-TO-ONE COMMUNICATION VIS--VIS ONE-TO-MANY COMMUNICATION
 One to one marketing led by one to one communication helps in differentiating our

company from the competition. It gives an opportunity to meet the unmet needs of our most profitable customers. The brighter side is that we can feed those needs
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directly in the New Product Design and by effective use of Mass Customization we can actually feed those needs directly into the product line and this leads to fast response to the changing trends.
 One-to-one communication leads to gaining loyal customers as compared to one-to-

many communication and this is because focusing on individual customers gives them a sense of recognition and they feel important and associated with the organization. This influences the loyal customers to provide a rich source of new ideas that can be exploited with other customers or with new prospects. Also this lowers the risk of failure and a higher chance of beating the competition. Another added advantage that adds to the cap of one-to-one communication is the idea that loyal and delighted customers provide excellent references and referrals. POINTS TO BE NOTED!!! The implications of the one-to-one approach have to be well integrated within the entire system so as to make the optimum utilization of the above advantageous benefits over mass communication. Organization: All the staff needed to be well trained and motivated to meet the individual needs Promotion: The promotion needs to re-orient itself so as to highlight the individual possibilities and unique benefits. Design: Personalization and Customization has to be well taken care of. Servicing: Profiles of the individual customers need to be maintained well. Feedback: It has to be encouraged and captured during any part of the marketing, purchase or support and data needs to analyzed, communicated and acted upon in a timely fashion. Information technology: Proper data mining tools, interactive technologies, customer information system are the key tools to make effective utilization of one-to-one aspect of communication and to reach greater heights. Towards the culmination of the topic I would like to take a stand that YES, one-to-one communication is the NEXT BIG THING and that it is very much relevant in the context
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of developed countries whereas mass communication has underwent a hit in terms of its dominance but for underdeveloped countries it is still the sustainer!!! More references: B. Cowlan. A Revolution in Personal Communications: The Explosive Growth of Citizens Band Radio. Inter/Media Interpersonal Communication in a Media World. Oxford University Press.1979. pp. 116-121. D. Horton and R. Wohl. Mass Communication and Para-Social Interaction: Observation on Intimacy and Distance. Inter/Media Interpersonal Communication in a Media World. NY:Oxford University Press.1979. pp. 32-55.

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