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Introduction
The marketing of wine has been under some scrutiny in relation to targeting
new consumers, developing and launching new products, and the impact of
changing market conditions on performance (e.g. Rabobank, 1999; Rach-
man, 1999; Christy and Penn, 1994; Cawley, 1994; Gluckman, 1990;
Howley, 1990; Spawton, 1990; Mitchell and Greatorex, 1989). Interestingly,
there has been little empirical research with regard to marketing communica-
tions and brand performance in the context of the wine industry, and yet mar-
keting communications and branding is expected to drive industry growth in
the future (WFA, 2001).
The focus on IMC is also being driven by ongoing global changes in the mar-
keting communications environment, and the need for improved effective-
ness of marketing communications. These global changes include the
development of sophisticated customer databases, fragmentation of mass
media, cost of new customer acquisition and customer defection, the rela-
tionship between below and above the line activities, and changes in con-
sumers' response to traditional communications tools and approaches,
amongst others. Shimp (2000) further qualifies the changes affecting mar-
keting communications as:
1. Reduced faith in mass marketing as communications channels
proliferate and customer and consumer loyalties diminish or
dilute.
2. Increasing reliance on more highly targeted communications
methods to reflect an emerging relationship marketing
orientation in business.
3. Greater demands placed on marketing communications
suppliers, such as agencies, to become more of a brand custodian
or guardian than just a transaction based supplier of
communications services.
4. Increased efforts to access communications 'return on
investment' reflecting greater demands by managers (marketers)
for accountability and measurement of alternative customer
acquisition and relationship activities.
Research Objectives
Age of Brand %
For brands targeting increased growth in their current market, this may
be oriented around direct and mass-media communications aimed at in-
creasing overall frequency of wine consumption by current users, drawing
customers from competitors and substitute products such as beer, or bring-
ing non-users into the market - a difficult task in the highly competitive and
fragmented alcohol markets. For managers targeting new markets, wine
brand related communications activities will need to focus on channel adop-
tion and establishing brand awareness (both in terms of recall and particu-
larly point-of-purchase recognition), trial, and repeat purchase. In both
cases, adopting a strategic and integrated approach to marketing communi-
cations will facilitate these growth-related goals. Building Strong
Brands Through the
Linking Integration and Performance
Management of
This section examines the relationships that exist in the data between the Integrated
level of integration reported by respondents, with regard to their brand com- Marketing
munications practices, and their self-reported brand-related performance Communications
Firstly, a correlation analysis was employed to determine if any relationship
existed between the five IMC constructs and two primary performance di-
mensions (Table III). The underlying rationale being that the constructs of
IMC help facilitate overall brand performance. The measures of perform-
ance had a multi-dimensional flavour and employed eight metrics represent-
ing two basic dimensions:
1. Profitability-related performance - evaluation of market share
growth, sales growth, overall profitability, and premium pricing.
2. Market Impact-related performance - evaluation of comparative
brand awareness, customer satisfaction and loyalty, and level of
trade cooperation.
Table IV also reports the results for the market impact-related perform-
ance dimension. Significant differences were observed for all metrics.
Higher integration in marketing communications management appears to be
associated more with market impact-related performance than profitability-
related performance. In the context of the wine industry this is of some sig-
nificance as current global market changes mean that firms with higher lev-
els of brand awareness, customer loyalty, and satisfaction, and whom enjoy
higher levels of trade support, are those brands that are more likely to
achieve on-going success in maintaining their position on retail shelves and
restaurant lists - perhaps translating into greater total sales income.
were conducted for each of the five IMA constructs. Results for each con-
struct are found in the following tables.
Firstly (Table V), the organisational infrastructure construct reflects
how well cross-functional interactions support the development of brand eq-
uity, and how well those responsible for managing communications pro-
grammes actually understand the strengths and weakness of the marketing
communications tools they employ. High integration respondents felt they
had a better understanding of IMC tools and that cross-functional contact be-
tween the members of the organisation involved in marketing communica-
tions activities, and between the organisation and their agencies, was better
than low integration respondents.
With regard to Interactivity (Table V), high integration respondents
also performed better in the activities that link the firm to their customers.
IMC planning related Low 3.24 Marketing plan Audit Low 3.53
to Mission High 4.29 ** High 4.50 **
Planning and Evaluation (Table VII) in the context of IMC can be more
complex than traditional communications planning because it takes into
5. Eagle, L., Kitchen, P., Hyde, K., Fourie, W. and Padisetti, S. (1999) "Per-
ceptions of integrated marketing communications among marketers and ad
agency executives in New Zealand," International Journal of Advertising,
18, pp.89-119.
10. Keller, K.L. (2001) "Mastering the marketing communications mix: mi-
cro and macro perspectives on integrated marketing communications pro-
grams." Journal of Marketing Management, 17, pp.819-847.
11. Kitchen, P.J. and Schultz, D.E. (1999) "A multi-country comparison of
the drive for IMC," Journal of Advertising Research, Jan/Feb., pp.21-38.
13. Lockshin, L. (1999) "Building market based assets in the wine industry,"
Australian and New Zealand Wine Industry Journal, 14, 5, pp.77.