further understanding on integrated marketing communication imc essential implications to plan an effective imc campaign in vietnam automobile industryf

ĐẠI HỌC QUỐC GIA HÀ NỘI
TRƯỜNG ĐẠI HỌC KINH TẾ

NGUYỄN VĂN VƯỢNG

FURTHER UNDERSTANDING ON INTEGRATED
MARKETING COMMUNICATION (IMC)-ESSENTIAL
IMPLICATIONS TO PLAN AN EFFECTIVE IMC
CAMPAIGN IN VIETNAM AUTOMOBLE INDUSTRY

Chuyên ngành:

Quản trị kinh doanh

Mã số:

60 34 05

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. Vũ Huy Thông
Th.S Nguyễn Việt Anh

Hà Nội – 2007


TABLE OF CONTENT
ABSTRACT ..................................................................................................................................................... 1
TÓM TẮT ........................................................................................................................................................ 2
LIST OF ABBREVIATION ........................................................................................................................... 3
LIST OF TABLES ........................................................................................................................................... 4

INTRODUCTION ........................................................................................................................................... 9
1. NECESSITY OF THE THESIS................................................................................................................. 9
2. PURPOSE ................................................................................................................................................. 9
3. KEY RESEARCH AREA ....................................................................................................................... 10
4. METHODOLOGY .................................................................................................................................. 10
a. Research purpose .............................................................................................................................. 10
b. Research Approach ........................................................................................................................... 11
c. Research Strategy .............................................................................................................................. 11
d. Data collection ................................................................................................................................... 13
e. Sampling ............................................................................................................................................ 13
f. Data analysis method ......................................................................................................................... 14
g. Validity ............................................................................................................................................... 15
h. Data presentation and data analysis ................................................................................................. 16
5. CONTRIBUTION OF THIS THESIS ..................................................................................................... 16
6. OUTLINE ............................................................................................................................................... 16
CHAPTER 1 LITERATURE REVIEW ..................................................................................................... 18
1.1. PRIOR CONCEPTS TO UNDERSTAND INTEGRATED MARKETING COMMUNICATION ..... 18
1.1.1 Market ........................................................................................................................................... 18
1.1.2. Marketing .................................................................................................................................... 18
1.1.3. The Changing Role of Marketing ............................................................................................... 18
1.1.4 Relationship marketing ................................................................................................................ 19
1.1.5. The marketing mix ...................................................................................................................... 20
1.2. INTRODUCTION TO INTEGRATED MARKETING COMMUNICATION.................................... 20
1.2.1. The Integrated Marketing Communication Process Model ....................................................... 20
1.2.2. Marketing Communication ......................................................................................................... 22
1.2.3. The concept of Integrated Marketing Communication .............................................................. 23
1.2.4. The revolution of IMC ................................................................................................................ 24
1.2.5. Major reasons leading to the revolution of IMC ........................................................................ 25

5

1.3. APPROACH OF IMC IN AUTOMOBILE .......................................................................................... 26
1.3.1. The IMC Concept in Automobile ................................................................................................ 26
1.3.2. History of Marketing Communication in Automobile ............................................................... 26
1.4. THE IMC PLANING PROCESS MODEL .......................................................................................... 29
1.4.1. Identifying the target audience ................................................................................................... 30
1.4.2. Determine objectives of communication ..................................................................................... 30
1.4.3. Design the message ..................................................................................................................... 31


Content .................................................................................................................................................... 31



Structure ................................................................................................................................................. 32



Format ..................................................................................................................................................... 32



Source ...................................................................................................................................................... 32

1.4.4. Selecting Communication Channels........................................................................................... 33


Directed communication channel (Personal communication channels) ............................................. 33



Indirect communication channel (Non-personal communication channels) ...................................... 33

1.4.5. Establish the budget .................................................................................................................... 33
1.4.6. Deciding on the Marketing Communications Mix ..................................................................... 34


Selection factors ...................................................................................................................................... 34



IMC tools ................................................................................................................................................. 37

1.4.7. Measure Result ............................................................................................................................ 37
1.4.8. Manage the Integrated Marketing Communications Process ................................................... 37
1.5. MAJOR TOOLS USED IN AN IMC CAMPAIGN .............................................................................. 37
Overview of the promotion mix ............................................................................................................. 37
1.5.1. Advertising ................................................................................................................................... 38


Definition ................................................................................................................................................. 38



The Five Ms (5Ms) of Advertising ......................................................................................................... 38

1.5.2. Sales promotion ........................................................................................................................... 41


Definition ................................................................................................................................................. 41



Sales promotion purposes ...................................................................................................................... 41



Sales Promotion type and sales promotion tools .................................................................................. 41



Steps in Sales Promotion Program Development ................................................................................. 42

1.5.3. Direct marketing .......................................................................................................................... 42


Definition ................................................................................................................................................. 42



Direct Marketing Tools .......................................................................................................................... 42



Steps in Developing a Direct-Mail Campaign: ..................................................................................... 43

1.5.4. Interactive/internet Marketing .................................................................................................... 43
1.5.5. Public Relation and Publicity ..................................................................................................... 44

6




Publicity and Public Relation ................................................................................................................ 44



Publicity .................................................................................................................................................. 44



Public relation ......................................................................................................................................... 45



Personal Selling....................................................................................................................................... 46

1.6. THE IMC SYNERGY MODEL ........................................................................................................... 46
1.6.1. Consistency .................................................................................................................................. 46
1.6.2. Interactivity .................................................................................................................................. 46
1.6.3. Mission-orientation ..................................................................................................................... 47
1.6.4. Audience complexity.................................................................................................................... 47
1.6.5. Product complexity ...................................................................................................................... 47
1.6.6. Distribution complexity ............................................................................................................... 48
1.7. CONCEPTUALIZATION AND FRAME OF REFERANCE .............................................................. 48
1.7.1. Conceptualization ........................................................................................................................ 48
1.7.2. Frame of Reference ..................................................................................................................... 48
CHAPTER 2 CASE STUDIES ..................................................................................................................... 50

2.1. DATA PRESENTATION .................................................................................................................... 50
2.1.1. Case 1. The IMC Planning Process in GM Daewoo Vietnam ................................................... 50
2.1.2. Case 2. The IMC Planning Process Ford Vietnam .................................................................... 57
2.2. DATA ANALYSIS .............................................................................................................................. 61
2.2.1. Within Case 1. The IMC Planning Process In ........................................................................... 61
GM Daewoo Vietnam ............................................................................................................................ 61
2.2.2. Within Case 2. The IMC Planning Process of Ford Vietnam ................................................... 65
2.2.3. Cross Analysis ............................................................................................................................. 67
CHAPTER 3 FINDING AND IMPLICATION .......................................................................................... 69
3.1. IMPLICATIONS FOR IMC PLANS OF GM DAEWOO VIETNAM AND FORD VIETNAM . 69
3.1.1. Implications for IMC Planning Processes of GM Daewoo ........................................................ 69
Vietnam and Ford Vietnam .................................................................................................................. 69
3.1.2. Implications for existing IMC campaigns of Vietnam automobile ventures ............................. 73


Media As A Matter of Communication ................................................................................................ 79



Advertising As A Matter of Communication ....................................................................................... 82



Demography As A Matter of Communication ..................................................................................... 84

3.1.3. Examples of IMC Impacts........................................................................................................... 86


An example of IMC impact-Ford Vietnam .......................................................................................... 86



An example of IMC Impact-GM Daewoo Vietnam ............................................................................. 87

3.2. IMPLICATION FOR EXISTING THEORY ....................................................................................... 90

7




Perception of IMC Benefit........................................................................................................... 90



Organizations’ (Clients’) perception of IMC benefit .................................................................. 91



The agency’s perception of IMC Benefit .................................................................................... 92



Audiences’ perception of IMC benefit ........................................................................................ 93

CONCLUSION .............................................................................................................................................. 97
LIST OF REFERENCES .............................................................................................................................. 98
APPENDIX..................................................................................................................................................... 99
APPENDIX 1. ADVERTISING’S HISTORY AND EVOLUTION ...................................................................... 99
APPENDIX 2. VIETNAM AUTOMOBILE INDUSTRY ................................................................................ 102

APPENDIX 3. GM DAEWOO’S MEDIA PLACEMENT SCHEDULE .......................................................... 111
APPENDIX 4. VIETNAM AUTOMOBILE PROMOTIONAL ACTIVITIES.................................................... 113
APPENDIX 5. INTERVIEW QUESTIONS-IMC PLANNING PROCESS....................................................... 118
APPENDIX 6. CONSUMER’S INTERVIEW QUESTIONS. .......................................................................... 125
APPENDIX 7. A SUCCESSFUL IMC CAMPAIGN ..................................................................................... 130
APPENDIX 8. LIST OF INTERVIEWEES (HANOI AND HOCHIMINH CITY-EXTRACTED)................ 131

8


LIST OF ABBREVIATION
ABBREVIATION

ANNOTATION

ADV(S) OR AD(S)

ADVERTISING(S)

AFTA

ASIAN FREE TRADE AREA

AIDA

AWARENESS, INTEREST, DESIRE AND ACTION

AMA

AMERICAN MARKETING ASSOCIATION

BTA

BILATERAL TRADE AGREEMENT

CBU

COMPLETELY BUILDING UNIT

CKD 1

COMPLETE KNOCKDOWN KITS, TYPE 1

FDI

FOREIGN DIRECT INVESTMENT

GDP

GROSS DOMESTIC PRODUCTIVITY

U.S OR USA

UNITED STATE OF AMERICA

IMC

INTEGRATED MARKETING COMMUNICATION

MARCOM

MARKETING COMMUNICATION

PR

PUBLIC RELATION

SCT

SPECIAL CONSUMPTION TAX

SKD

SPECIAL KNOCKDOWN KITS

SOE

STATE OWN ENTERPRISE

VAT

VALUE ADDED TAX

WTO

WORLD TRADE ORGANIZATION

3

LIST OF TABLES
EXHIBIT

PAGE

Exhibit 1. The IMC process model

21

Exhibit 2. The promotional mix model

22

Exhibit 3. Product life cycle

35

Exhibit 4. Product life cycle and promotion mix strategy

36

Exhibit 5. Frame of Reference

49

Exhibit 6. GM Daewoo’s IMC Planning Process

55

Exhibit 7. GM Daewoo’s IMC tools

55

Exhibit 8. GM Daewoo’s Promotional Strategies

56

Exhibit 9. Ford Vietnam’s IMC Planning Process

58

Exhibit 10. Ford Vietnam’s Major IMC Tools

60

Exhibit 11. Comparison of Kottler’s and GM Daewoo’s IMC Model

61

Exhibit 12. GM Daewoo’s IMC Action plan

63

Exhibit 13. Comparison of Kottler’s and GM Daewoo’s IMC Model

65

Exhibit 14. Comparison of GM Daewoo’s and Ford’s IMC Model

67

Exhibit 15. IMC Planning Models Adjusted for GM Daewoo and Ford

72

Exhibit 16-26. Automobile Consumer Survey on IMC

74

Exhibit 27. Vietnam Advertising Market, 2004

79

Exhibit 28. Top ten advertising brands, 2004

80

Exhibit 29. Customer view of GM DAEWOO (1)

89

Exhibit 30. Customer view of GM DAEWOO (2)

89

Exhibit 31. Client’s Perceived Benefit of IMC

92

Exhibit 32. Agencies Beliefs about IMC Benefit

93

Exhibit 33. IMC Planning Process Proposed for Automobile Ventures

95

4


INTRODUCTION
1. NECESSITY OF THE THESIS
Compared with other industries, Vietnam automobile industry is a very fresh one,
only over ten-year since foreign ventures jumped into the market. Despite of the
fact that current market size is small and certain disadvantages, Vietnam automobile
market is promising; the industry is predicted to be one of the key industries of the
nation in near future. Beside familiar ventures, such as GM Daewoo, BMV,
Mercedes, Ford, and Toyota that operate as different legal economic entities…the
market also attracts emerge domestic assemblers.
Even though ventures are leading automobile manufactures around the world,
experienced on different markets, they now meet certain difficulties in Vietnam-the
market is described as a particular environment. How to plan an effective marketing
communicational campaign? How to communicate with consumer in most effective
way? Is current promotional program appropriate? These always matter to
automobile marketers
This thesis was written with the subject of “Further understanding on Integrated
Marketing Communication (IMC)-Essential implications to plan an effective
IMC campaign in Vietnam automobile industry” expected to ease up above
questions. The thesis partly fulfills requirements for the degree of master of
business administration.

2. PURPOSE
The main purposes of this thesis are: ―Further Understanding on Integrated
Marketing Communication‖ and the exploration of how Integrated Marketing
Communication campaigns have been planned and developed by Vietnam
Automobile ventures. From analysis and comparisons, findings and implications are
drawn; these can be references for automobile marketers and marketing
communication agencies as implications to plan an effective integrated marketing
communication campaigns.

9


3. KEY RESEARCH AREA
This thesis presents basic concepts of Integrated Marketing Communication.
Especially, the thesis focuses on two automobile ventures, GM Daewoo Vietnam
and Ford Vietnam, which have been chosen as two case studies. To affiliate the
studying purpose, it is also essential to see consumer‗s perception of automobile
IMC campaigns as well as to take a look on Vietnam Advertising Industry.
Major data in this thesis were collected in the first half of 2005
4. METHODOLOGY
a. Research purpose
Generally, due to studying purposes, there are three correspond types of techniques
to carry out a research: Exploratory, Descriptive and Causal1
 Exploratory is especially necessary when don‘t understand the issue at hand
very well or there is no clear theory for it. Exploratory helps develop ideas,
issues, and possible answers to questions and finally it defines constructs of
interest. The aim of exploratory is to acquire basic knowledge within the
problem
 Descriptive research simply describes, but does not directly link outcomes to
particular causes, for example 95 percent of online consumers are satisfied with

their online shopping experiences
 Causal research seeks to relate specific outcomes to the variables that are causal
of the outcomes. Three following conditions must be satisfied for a causal
research:
 One variable must precede the other in time
 Alternative explanations for findings should be ruled out
 Nomic necessity -- The ―causal link‖: ―Do we have reason to believe that the
relationship makes sense‖
Due to the fact that I do not intend to explain reasons behind IMC planning
decisions of Automobile manufactures; instead of that, I focus on describing how
1

Causal sometime called Explanatory

10


IMC is planned in some Vietnam automobile firms and used it as material to
compare with marketing theories and from that general findings and implications
drawn out. As the result, descriptive research is mainly in use. This is the
appropriate way to further understand on IMC as presented in introducing page:
―Further understanding on Integrated Marketing Communication (IMC)Essential implications to plan an effective IMC campaign in Vietnam
automobile industry”
b. Research Approach
There are two ways to address a problem when conducting a research; they are
qualitative research and quantitative research. According to Yin, the focus of
qualitative research is ―not numbers but on words and observations, stories, visual
portrayals, meaningful characterizations, interpretations and other expressive
descriptions‖. On the other hand, quantitative research usually used to determine the
quantitative or extension of some phenomena with numbers. Qualitative research

uses a coded identifier to assist in checking and cleansing the data set. Code
responses logically, include codes for non- responses, refusal to answer, and nonapplicable
Qualitative ―purists‖ argue that their research may be less ―precise,‖ but it increases
understanding, allows for complexity and depth
In response, quantitative ―purists‖ find qualitative research to be ―fuzzy‖ and
―subjective‖, (Wolfinbarger). In this thesis I used both quantitative method and
qualitative method, they can support each other to affiliate the researching purpose.
c. Research Strategy
Strategy is the way to conduct the research. There are many research strategies;
according to marketing statisticians, these following strategies are often in used:
Experiment, Survey, Archival Analysis, History and Case Study.
 Experimental research systematically changes the level of one or more
independent variables and seeing the impact on the outcome variables
 Survey are the same information (variables) collected from a number of cases

11


and form a data set or grid
 Archival Analysis is based on secondary data collected by someone else for
other purpose. The problem with Archival Analysis is that the data used for
other purpose. However, Archival Analysis is proven if current research purpose
close with previous research purpose or current researcher fairly understand
about the previous research
 History Analysis is most alike with Archival Analysis because both of them are
used historical data but History Analysis use data collected with the same
purpose by some one else. The problem with History Analysis is timely issue
and concerns about the reliability of the research.
 For Archival Analysis and History Analysis, there are necessary questions used
to evaluate secondary data are:

 Who collected it?
 Why was it collected?
 How was the data collected?
 What data were collected?
 When was the data collected?
 Do multiple sources indicate the same conclusions?
 Case Study is often used when the research less involves in complex objectives
and phenomena. Case Study let researcher easy to compare among cases to find
out the most appropriate solution for the problem. However, if the purpose of
the research related to a larger field which involves many variables and objects
in different areas, case study is no longer proven because a case study
considered as a single observation
According to the research purpose, to further understand on IMC Planning Process
in a typical industry like Vietnam Automobile Industry, the appropriate strategies
for the research are: Case Study and Archival Analysis since the problem addressed
is not complicated and there are only over ten automobile ventures in Vietnam. In
addition to that, to fulfill the purpose of the research, other strategies also employed.

12


d. Data collection
There are different sources of evidences for data collection. They are: Observation,
Focus Group, In-depth Interview, Projective Techniques, Grooming Study, Survey,
Documentation, Market check, Artifact and Archival Record…
Since strategies of the research are mainly Case Study and Archival, appropriate
data collection methods correspondingly are Interview, Archival Record and
Documentation
 Interview considered as main source of data collection. Three common ways to
conduct an interview are:

 Open-end: the respondent freely answer the question
 Structured interview: Respondents are asked about certain issue
 Focus group: A loosely structured interview conducted by a qualified
moderator among a small number of informants simultaneously. There are
often six or more persons involving in a focus group; they freely to talk
about an issue exchanging their ideas for certain time and after that they can
move to another issue
 Archival record is the data collection method that use data form previous
researches as a source for reference. This is also reliable source but used
selectively
 Documentation is the data collection method that uses letters, written report,
memoranda, articles, news that presented in mass media and internal document.
The advantages of documentation is the credibility of the source because these
data are posted on mass media which recognized as reliable sources
e. Sampling
Sampling will show where and why data are collected. Follow the researching
purpose and researching strategy, samples need to be taken in relevant sources;
otherwise, it becomes incompatible and unmatched with designing purpose. For the
purpose of further understanding on IMC Planning Process in Vietnam Automobile
Ventures, samples can be taken from any company. In addition to that, Vietnam

13


automobile has six teen ventures only; therefore, there is no doubt that sampling
meet statistical standards. After considering researching strategy and statistical
standards, my focuses are GM Daewoo Vietnam-VIDAMCO and Ford
Vietnam.The accuracy of sampling is strengthen despite of the fact that both GM
Daewoo Vietnam and Ford Vietnam are American automobile firms since Daewoo
originally was a Korean automobile firm and GM acquired Daewoo after GM

Daewoo Vietnam had established for years; further, managing philosophy including
IMC planning of GM Daewoo Vietnam nearly unchanged after the acquisition.
About consumer‘s sampling as presented in data collection method above, I used
archival record; it means that most data about consumers are collected by the two
companies for the same purpose of exploring consumer‘s insight. Consumer
sampling used for reference since as said in studying onjective, my focus is how
IMC planned in Vietnam automobile. To affiliate the purpose of the research, it is
also necessary to take a look on Vietnam advertising industry and media firms.
f. Data analysis method
According to research purpose, there are two suggested strategies for data analysis:
relying on theoretical proposition and developing a case description
 Relying on theoretical proposition: this strategy is often used when researching
strategy is to select one or more cases then compare it with theories; in addition
to that, cross comparisons also employed2. The main ideas of this strategy are to
develop Case Study or collect data form previous studies to make comparisons.
As matter of fact, to match with designing study purpose, relying on theoretical
proposition strategy is most appropriate strategy; from comparisons and analysis,
findings and implications will be addressed
 An alternative for relying on theoretical proposition is developing a case
description. This strategy is usually implemented when there is no previous
research available thus, it leads to develop multiplied full case studies and it
focuses on cross analysis rather than relying on theoretical proposition approach.
2

In this thesis, different IMC theories of different authors are employed as a method to enhance validity

14


This strategy is less favorable because it is not cost effective and time consume;

other concern about this strategy is lack of reference source
Due to the superiority of relying on theoretical proposition strategy, in this thesis, it
is mainly in use.
g. Validity
Validity is a testing strategy to establish a frame of measurements to reaffirm and
leverage the quality and the reliability of the research. Main tasks dealing with
validity are to determine the researching methodology then make it more reliable by
making it best fit with statistical standard, theories and empirical evidence. There
are four tests to reinforce quality of a research: construct validity, external validity,
internal validity and reliability
 Construct validity: this strategy aims at establishing multiple source of
evidences or chains of evidences or having key informants involved. In this
thesis, theories of well-known marketers, key informants and data from reliable
source were used as material for study
 Internal validity: establishing causal relationship-a result is inferred from other
conditions-and/or certain conditions are in use as a base to develop following
studying steps. Internal validity is not used in descriptive. Due to this thesis is
mostly descriptive, this strategy will not be in use
 External validity: the strategy uses replication by establishing different case
studies in order to show the agreement or common result among those cases.
This strategy is usually in use when researchers develop full case description. In
this thesis, although relying on theoretical proposition is mainly in use, external
validity is also employed as the cross comparisons among case studies
 Reliability: Another way to create reliability for the research is to pave the way
for relating people use it as material for their work while ensure that the same
procedure for next research is still correct. In fact, this studying method is
approached by many researchers. As mentioned in early, this research can be
reference for automobile companies and advertising agencies in Vietnam.

15

Consulting from this research, other following researches can be developed with
the same procedure.
h. Data presentation and data analysis
Data presentation and data analysis (IMC Planning Process and Consumer‘s
perception of automobile IMC campaigns) will be presented in chapter 3 and
chapter 4 of this thesis
5. CONTRIBUTION OF THIS THESIS
This thesis is written as partial fulfillment of the requirements for the degree of
master of business administration in Hanoi School of Business, Hanoi National
University. During three months of studying and writing this thesis, I have gained
deeper understanding on Integrated Marketing Communication in Vietnam
automobile industry, especially in GM Daewoo Vietnam-VIDAMCO and Ford
Vietnam as well as business operation of marketing communication agencies and
media firms in Vietnam. It has been also interesting to see how automobile
marketers conduct their marketing activities in academic and scientific way.
6. OUTLINE
This thesis is presented in three chapters,
Chapter 1: Literature Review
Chapter 2: Case Studies- IMC Planning Process in Vietnam Automobile
Chapter 3: Finding and Conclusion
 The introduction of thesis, which addresses the necessity and the purpose of
thesis, key research are, methodology, contribution of the thesis and the outline
(presented as above)
 Chapter 1 presents basic concepts of Integrated Marketing Communication
Planning Process, major tools of Integrated Marketing Communication and The
Synergy Model of Integrated Marketing Communication
 Chapter 2 consists of two case studies of IMC Planning Processes in Ford
Vietnam and GM Daewoo Vietnam-two automobile ventures. The chapter also

includes analysis and comparisons

16


 Chapter 3 presents findings and implications for automobile marketers and
marketing communication agencies in Vietnam. To support for these conclusion,
current IMC campaigns are also referred 3 and a survey‘ result presents
consumer‘s perception of current IMC campaigns of Vietnam automobile
ventures

3

In this chapter, IMC campaigns just are extractions; see more for IMC campaigns of Ford and GM and

other assemblers at appendix 3 and appendix 4

17


CHAPTER 1
LITERATURE REVIEW
1.1. PRIOR CONCEPTS TO UNDERSTAND INTEGRATED
MARKETING COMMUNICATION
1.1.1 Market
The market is a group of actual or potential customers for firms‘ product / service
1.1.2. Marketing
We have experienced through periods of economics through each periods people‘s
opinion of fundamental economic concepts have changed such as: production, need
and want, market and marketing. Generally, marketing is a process to meet

consumer‘s demand in meaningful way compared with that of competitors. There
have been certain changes in perspectives of the role of marketing
1.1.3. The Changing Role of Marketing
 Simple Trade Era: As specialization developed, families traded or sold their
output to local middlemen. Local middlemen, in turn, resold these goods to
other consumers or more distant middlemen. In Simple Trade Era, the focused
role of marketing described as ―Sell Surplus‖. This early role of marketing is
still the focus much of the marketing activity in the less-developed areas of the
world.
 Production Era: During the production era, the company focuses on production
of a few specific products (Increase Supply Period). A production focus is more
common when few products are available in a given market
 Sales Era: As production rises, competition increases as more companies move
to meet demand, the focus shifts to selling activities to ―beat the competition‖
and win customers
 Marketing Department Era: During this era, all the marketing activities are
brought under the control of one department.

When executed well, this

improves short-run policy planning by integrating and coordinating the firm‘s

18


activities (Coordinate and Control)
 Marketing Company Era: At this marketing people develops long-range plans
in addition to short-run marketing planning and the whole company effort is
guided by the marketing concept. Companies in this era always focus on
building ―Long-Run Customer Loyalty‖

The role of marketing has changed through time. As a result, there have been many
definitions of marketing that belonged to different school of thoughts. The question
involved in explaining the concept of marketing and roles of marketing. Here below
are most popular definitions of marketing
―Marketing is a societal process by which individuals and groups obtain what they
need and want through creating, offering, and freely exchanging products and
services of value with others.‖ (Philip Kotler). Exchange involves obtaining a
desired product from someone by offering something in return. The exchange
process must satisfy following preconditions: Exist at least two parties; parties are
on their own choice to participate in exchange process; Each party must have
something valuable to exchange and this must be recognized valuable by other
parties. Parties must announce about the need and value of the deal
A supplement for exchange is the concept of transaction: Transaction involves at
least two things of value, agreed-upon conditions, a time of agreement, and a place
of agreement
Another school of thought, the definition of The American Marketing Association
(AMA): The AMA managerial definition: ―Marketing is the process of planning
and executing the conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and organizational
objectives.‖
Therefore, marketing is a vast field and valuable things for exchange is also diverse
1.1.4 Relationship marketing
Today the competition is getting tougher and tougher. On the market, no company
can free stand alone as solo player. The unique position no longer exists in a free

19


competitive environment and customers are key drivers of the market. How may
way to co-exist with customers? Just one way-satisfy them. How to satisfy them?

Just one way again-Do better than what competitors do. Companies nowadays do
not focus on beating competition-seek and kill their competitors. This is a long way
on a short road because sometimes companies may not identify their competitors
until everything becomes too late. It is necessary to shift the thinking and
companies are investing more and more in building relationship with customers.
Relationship marketing aims to build long-term mutually satisfying relations with
key parties, which ultimately results in marketing network between the company
and its supporting stakeholders
1.1.5. The marketing mix
The marketing mix (4Ps)4 facilitate the exchange process and the development of
marketing relationship by fully examining the needs and wants of customers,
developing products and services that satisfy these needs, offering it at certain price,
making it available through particular place or channel of distribution, developing a
program of promotion or communication to create awareness and interest. The
marketing mix is a main tool set for companies to position their brands and services.
The basic task of marketing is to combine these elements so that it can affiliate the
exchange process with consumers in market place. The marketing mix is the most
appropriate answer for the question how to satisfy consumers if a company can do
this better than its competitors
1.2. INTRODUCTION TO INTEGRATED MARKETING
COMMUNICATION
1.2.1. The Integrated Marketing Communication Process Model
First of all, we affirm that the process of integrated marketing communication is a
communication process. Communication is the transmission, and understanding
information using verbal or non-verbal symbols. Another definition, communication
4

The 4Ps include: product, pricing, place or distribution, and promotion. The 4Ps will be further discussed

later

20


is the process by which information (or message) is transferred from a sender to a
receiver(s) and it is meaningful to all parties who involve in the process

Exhibit 1. The IMC process model
Source:
Companies,
Agencies

Message

Encoding

Decoding

Receivers,
consumers

Information channel
(TV, print, mail…)

Noise
Feedback

One hundred percent understanding is the goal of communication but error can
appear any time in the process that may cause by any components
It has been estimated that as much as 70 percent of all organizational

communication fails to meet its desired goal. Thus, in order to pursue the synergy of
integrated marketing communication process, besides coordinating integrated
marketing communication tools, one can improve the efficiency of each component
or all components in the model above
 Encoding is the mental process of turning an idea into some format that can be
transmitted easily to others; this is the mission of marketer ―The encoding
challenge is not only to describe a product‘s benefit in a way that is
understandable and persuasive, but to do so in a way that will attract attention
and make the decoding as easy and enjoyable as possible for the receivers who
are the target audiences (Duncan)
 Message is the encoded idea … the set of symbols that are transferred from
source to receivers through communication channel. Message and channel is
affected by interference and distraction called noise. During process from
encoding to decoding, the noise can distort the message making it different from
expectation of senders, commonly cause negative results

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 The manner in which the message is transferred … the specific behaviors or
artifacts that are used to convey the message called information channels
 Decoding is a mental process within which receivers perceive the message
 Feedback is action of receivers after they perceive the message. If a promotional
message form a company passes through noise with nearly one hundred percent
as it encode, the feedback may be purchasing or any ordering request
1.2.2. Marketing Communication
The concept of Integrated Marketing Communication is developed from previous
concepts of marketing communication
In 1992, Wells, Burnett and Moriarty defined marketing communication as ―the
mechanism for communicating information to consumer‖. Keller had the same

definition in 2001: ―the means, by which firms attempt to inform, persuade, incite
and remind consumers-directly or indirectly-about the brand they sell‖. A third
definition of the same concept is ―activities that communicates the merits of the
product and persuade target customers to buy it‖ (Kottler and Amrstrong)
It seems that all three definitions jointly agree that marketing communication is a
core activity that helps firms deliver massages to consumers in a most effective way.
Major objectives of Marketing Communication are ―to inform‖, ―to persuade‖ and
―to remind‖ firm‘s audiences. An alternative word for Marketing Communication is
Promotion Mix Process. As mentioned in the article 2.1.5, Promotion Mix is one of
elements of Marketing Mix (4Ps) that jointly direct to target market. Promotion Mix
itself includes following major tools: Advertising, Personal Selling, Public Relation
and Publicity, Direct Marketing and Sale Promotion

Exhibit 2. The promotional mix model
Personal selling
Product

Advertising
Sale promotion
Public Relation
and Publicity

Promotional
Mix

Price
Distribution

Marketing
Mix

Promotion

Direct Marketing
Target Market

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1.2.3. The concept of Integrated Marketing Communication
For many years, the promotional function of most companies was dominated by
mass media. Advertising played a key role in nearly all areas of marketing
communication. As tough completion raised, the fragmentation among consumers5
and certain disadvantages of Advertising, marketers realized that they need other
tools maximum communication impact by providing their customers a clear,
consistent message about their companies‘ images, products, service and.
Additional tools were in used to seek for the synergy among various promotional
tools by acquiring Public Relation, Direct Marketing, and Sales Promotion …often
referred as non-advertising tools. Advertising agencies have not only provided
advertising services but also supplied others promotional services, they have
considered them as separated businesses which provided separated budgets and
separated strategies 6 . The reason is that marketers understand the value of
strategically integrating the various communication functions rather than having
them operates autonomously. By coordinating their marketing communication
effort can avoid duplication, take the advantages of synergy among various
communication tools and develop more efficient and effective marketing
communication programs to maximize the return on investment in marketing
activities; this marketing expenditure now must be considered as an investment
rather than an expense. As a result, in 1993, Schultz, Tannenbaum, and Lauterborn
introduced a new concept called Integrated Marketing Communication (IMC). The

IMC was defined as following: ―IMC is a concept of communication planning that
recognize the added value of the comprehensive plan that evaluated the strategic
role of a variety of communication disciplines (for example, general advertising,
direct response, sales promotion and public relation…) and combine these
disciplines to provide clarity, consistency, and maximum communication impact‖

5

Fragmentation among consumers mainly resulted from the difference of following factors: income,

demographic, life style shopping pattern…
6

For the corporate goal of a Marcom agency, there still exist interrelationship among promotional services

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(Schultz).
IMC today widely acknowledged as the key to superior brand communication.
Regarding the comprehensive power of integrated marketing communication-the
interactive synergy between advertising and promotion-in 1998, Jobber said that:
―advertising brings the horse to water, promotion makes it drink‖
1.2.4. The revolution of IMC
Keller stated that: ―Perhaps, no area of marketing has seen more dynamic changes
over the years than marketing communication‖
Integrated marketing has become the approach of choice for most large global
marketers. According to marketers, the movement toward integration has been
driven by the fragmentation of media usage, the rapid emergence of the Internet as a
viable marketing channel, and the ever-increasing pressure for marketers to

demonstrate a return on marketing investment
It is helpful in discussing integrated marketing approaches to recognize and
understand three stages of integrated marketing that have emerged in recent years
 The Translation Stage for integration is the most common form of integrated
marketing today. The Translation stage focuses on delivering a consistent
message and visual identity across marketing channels. It has branding as its
primary goal. With the advent of the Internet, the Translation stage has extended
beyond consistent messaging and visuals to include tactics such as including a
URL on a print or TV ad. This stage of sensory and messaging consistency
across channels seeks to reinforce the desired message and the company‘s brand
 The Extension Stage of integration uses secondary channels (Web, direct
marketing) to extend a theme from a primary channel (TV, print), with the
parameters of the extension being driven by the core attributes of the chosen
primary channel. The goal of the Extension Stage is to get users to engage with
the brand for an extended period of time and to collect data about the user so
that future re-contact and outreach can be made even more targeted and relevant.
The primary focus of the first two stages of integration is to coordinate elements

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of the marketing mix. However, as target audiences have more choices (due to
the proliferation of media outlets) and more power to avoid ads (via spam filters
on e-mail accounts, online ad-blocking software, and video on demand and
personal video recorders), reaching them through message bombardment-even if
consistent across mediums-will not be enough to sustain attention or ensure
preference for the brand.1
 The next evolution of integration, Orchestration, is designed to address this
issue. Orchestration is about designing coordinated, sequenced communications
where each channel has a distinct, unique role in leading the customer to act as

desired. The difference between this stage and the prior two is that with
Orchestration the marketer is using each interaction to build toward a larger goal.
With Orchestration, the emphasis is not so much on consistency or even
expansion but more on the notion of a journey where a clear destination exists
and a dialog with successive communications (based on response) develops
1.2.5. Major reasons leading to the revolution of IMC
 Planning efficiency and effectiveness:
By coordinating marketing communication efforts companies avoid duplication,
take advantage of synergy, and develop more efficient and effective programs
 Consumer adoption of technology and media:
 Consumers‘ lifestyles and purchasing behavior are changing as they adopt
new technologies
 Traditional media are facing declining audiences and less responsive
consumers
 Innovative marketing practices
 Innovative marketing practices:
 A shift in marketplace power from manufacturers to retailers
 A shifting of marketing dollars from media advertising to other forms of
promotion
 A movement away from relying on advertising- focused approaches to solve

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communication problems
 The rapid growth and development of database marketing
 Demands for greater accountability from ad agencies and changes in
compensation
 Rapid growth of the internet
 Customer’s point of view:

All elements of the promotional campaign have to be carefully linked in some
manner so that the message is clear and does not misrepresent the brand
 Relationship marketing:
Creating, maintaining, and enhancing long-term relationship with individual
customers as well as other stakeholders for mutual benefit.
Marketers must recognize which tools within the promotion mix help to strengthen
relationship
1.3. APPROACH OF IMC IN AUTOMOBILE
1.3.1. The IMC Concept in Automobile
As we know, the concept of IMC not until was developed with an official definition
by three scholars: Schultz, Tannenbaum, and Lauterborn in 1993. However, prior
concepts of IMC and early IMC application have existed for years
As matter of fact, up to now there have been no official definitions of IMC in
automobile. Following is the concept of Integrated Marketing Communication in
Automobile which has been totalized from various ideas of scholars and automobile
marketers: Integrated marketing communication in Automobile is a process of
comprehensive meaningful marketing activities that effectively deliver the
messages of automobile firms and their responsible subsidiaries to current
consumers and potential consumers in order to raise awareness; maintain or change
brand image; persuade for buying actions; and get loyalties of customers.
1.3.2. History of Marketing Communication in Automobile
In this part, we take a glance of milestones in automobile marketing communication
during the period from early of previous century to now. Main discussion in this

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