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THE RELATIONSHIP BETWEEN INTEGRATED MARKETING COMMUNICATION AND

Outlook onBRAND EQUITY


Communication

THE RELATIONSHIP BETWEEN INTEGRATED MARKETING


COMMUNICATION AND BRAND EQUITY

Adrian BRUNELLO1

1. Assoc. Prof., PhD, Modern Languages Institute, “Apollonia” University of Iasi, Romania
Corresponding author: adrian_brunello@yahoo.com

Abstract concept has influenced thinking and acting


This article focuses on the importance of marketing among companies but also authorities, state
communication both for customers and for companies. In owned companies and political parties, all facing
today’s globalized society the use of an integrated the realities of competition in an open economy.
marketing communication (IMC) strategy plays a major
role in persuading customers to buy the products or Marketing organizations are increasingly
services of a particular firm. But IMC has a much more paying an emphasis on integrating their
significant value: it contributes to the development of a messages, procedures, and communications
company’s brand equity. The following article presents the
concept of brand equity, both from a financial and market
within their formal organizational boundaries3.
perspective, and it deals with the relationship between Some 20 years ago academics and professionals
IMC and brand equity, also analyzing its implications. discussed theory and practice of business
Keywords: communication, integrated marketing communication but without considering the idea
communication, brand equity, customer-based brand equity.
of integration as a realistic approach to reach a
competitive strategic position for the company.
1. INTRODUCTION
Some early attempts in the beginning of the 1980s
initiated academic interest and articles appeared
Marketing communication represents a in the academic literature4. From the beginning
concept that first occurred during the last decades of the 1990s IMC became a real hot topic in the
of the twentieth century, as a result of the field of marketing5.
incredible development of marketing during that Few years back, major portion of marketing
period. Although so far, the opinions of various budgets went to advertising. Now the situation
specialists differ in terms of concept content, one has changed, the money is allocated into various
may speak about a consensus on the role and activities such as trade promotions, consumer
importance of marketing communications. promotions, branding, PR and advertising. The
In today’s global economy characterized by allocation of communication budgets away from
high dynamism and fierce competition, compa­ mass media and traditional advertising has
nies are looking for the best way of communicating obviously promoted IMC in recognition and
with their clients and they do everything humanly importance for effective marketing. The emergence
possible to persuade the customers of their of IT has fundamentally affected the media
product’s quality and the benefits that people get practices, contributed to an extensive deregulation
from using their products or services1. of markets and individualized patterns of
Therefore, communication has become a consumption and increased the segmentation of
fundamental aspect of marketing, and a key consumer tastes/preferences. The key has been
success factor for the company. Organizations ‘value’ and several combinations of methods
use various forms of marketing communication are used, all aiming to raise benefits and reduce
in order to meet financial or non-profit targets2. costs.
Integrated Marketing Communication (IMC) Companies cannot be considered legitimate
is one of the most important communications players if there is no consistency between
trends adopted all over. The emergence of this messages, words, behaviors, procedures and

International Journal of Communication Research 9


Adrian Brunello

deeds6,7. Therefore, it is very important for people The objectives of any marketing communication
understand the importance of integrated process are to create brand awareness, deliver
communications. information, educate the market, and advance a
The American Association of Advertising positive image of the product brand. In simpler
Agencies defines IMC as “a concept that terms, “IMC refers to speaking with one voice,
recognizes the added value of a comprehensive eliciting a response”. Therefore, “IMC is a return
plan that evaluates the strategic roles of a variety to building brand loyalty by building brands that
of communication disciplines, and combines deserve loyalty”.
these disciplines to provide clarity, consistency
and maximum communication impact”. Jones & 2. BRAND EQUITY
Schee, (2008) consider that integrated marketing
communication represents a combination of
direct marketing, general advertising, sales There are two opposing viewpoints regarding
promotion and public relations8. brand equity. Some specialists favor the
The eventual role of the IMC is to convey a consumer-oriented perspective while others
consistent message to customers9. Effective IMC consider that the market performance-oriented
approaches foster companies to effective usage perspective is best suited to conceptualize this
of promotional resource and to build longer term concept. Motomeni and Shahrokhi (1998)
sustainable consumer relationships. identified two opposing perspectives or schools
The concept of IMC is increasingly accepted of thought: the marketing perspective and the
by many firms due to a number of advantages. financial accounting perspective10.
The mass media advertising was initially thought The financial accounting perspective deals
of as viable and useful. However, nowadays with brand equity in terms of asset valuation for
specialists consider it ineffective because of high the balance sheet or for merger, acquisition or
cost involved and the unpredictable target divestiture purposes. One should also study
audience. Today, firms use precisely targeted brand equity because it helps improve marketing
promotional techniques such as direct mail, cable productivity. Due to higher costs, greater
TV, the Internet, etc. Today almost all companies competition, and flattening demand in many
seek for effective implementation of information markets, companies try to increase the efficiency
technology in promotional aspects. These new of their marketing expenses. Therefore, marketers
initiatives of information technology have foster need a more thorough understanding of
buyers and sellers to share and to promote an consumer behavior in order to improve the
effective customer relationship management. decision making process and the positioning of
Integrated marketing communication the firm’s products. It is believed that one of the
represents the reunion of all marketing tools, company’s most valuable assets for improving
approaches, and resources within a company marketing productivity is the knowledge that
which maximizes the impact on the consumer’s has been created about the brand in the minds of
mind and which leads to maximum profit at the consumers from the firm’s investment in
minimum cost. Generally marketing starts from previous marketing programs. Financial valua­
the “Marketing Mix” and also includes internet tion issues have little relevance if no underlying
marketing, sponsorship, direct marketing, value for the brand has been created or if
database marketing and public relations. The managers do not know how to exploit that value
integration of all these promotional tools along by developing profitable brand strategies11.
with other components of the marketing mix to
gain edge over competitors is referred to as 2.1. The marketing perspective:
Integrated Marketing Communication. Using Customer-based brand equity
outside-in thinking, it is a data-driven approach Marketers start from the assumption that the
that focuses on identifying consumer insights power of a brand lies in the minds of consumers
and developing a strategy with the right (online and what they have experienced and learned
and offline combination) channels to forge a about the brand over time. The advantage of con­
stronger brand-consumer relationship. ceptualizing brand equity from the consumer’s

10 volume 3 • issue 1 January / March 2013 • pp. 9-14


THE RELATIONSHIP BETWEEN INTEGRATED MARKETING COMMUNICATION AND BRAND EQUITY

perspective is that it enables managers to consider 3. THE RELATIONSHIP BETWEEN


specifically how their marketing program INTEGRATED MARKETING
improves the value of their brands. Although the COMMUNICATION AND BRAND EQUITY
ultimate goal of many marketing programs is to
increase sales, it is first necessary to establish
What is the connection between IMC and
knowledge structures for the brand so that
brand equity and how does integrated marketing
consumers respond favorably to marketing
communication contribute to a company’s
activity for the brand12.
equity? Schultz, Tannenbaum, and Lauterborn
Aaker (1991) defined brand equity as “a set of
five categories of brand assets (liabilities) linked (1993) conceptualize the effects of integrated
to a brand’s name or symbol that add to (subtract marketing communication in terms of “contacts”.
from) the value provided by a product or service”. According to these authors, a contact is any
He presented in his model the five dimensions information-bearing experience that a customer
of brand equity: a) brand awareness; b) brand or prospect has with the brand, including word
perceived quality; c) brand associations; d) brand of mouth and the experience of using the
loyalty; and e) other proprietary brand assets, product15. All of these contacts with customers
such as patents, trademarks and channel relation­ can potentially influence the firm’s brand equity.
ships. Aaker (1991) considers these dimensions Keller (2001) considers that customers or
the main bases for brand equity measurement13. prospects can also have contacts with the brand
Conceptualizing brand equity from the through marketer-controlled communication,
consumer’s perspective is useful because it such as: media advertising; direct response and
suggests both specific guidelines for marketing interactive advertising; place advertising; point-
strategies and tactics and areas where research of-purchase advertising; trade promotions;
can be useful in assisting managerial decision consumer promotions; event marketing and
making. Two important points emerge from this sponsorship; publicity and public relations;
conceptualization. First, marketers should take a and selling16. There is ample evidence in the
broad view of the marketing activity for a brand literature that suggests that various marketing
and recognize the various effects it has on brand communications influence brand equity,
knowledge, as well as how changes in brand including advertising17, sponsorship, and various
knowledge affect more traditional outcome alternative communication options18.
measures such as sales. Second, markets must Taking into account Keller’s opinion, who
realize that the long-term success of all future considers that the most important purpose of
marketing programs for a brand is greatly the marketing communication is to create
affected by the knowledge about the brand in brand  equity, and Schultz, Tannenbaum, and
memory that has been established by the firm’s Lauterborn’s (1993) notion of marketing
short term marketing efforts. In short, because communications through “contacts”, one can
the content and structure of memory for the argue that firms can use IMC to achieve high
brand will influence the effectiveness of future brand equity through marketer-controlled brand
brand strategies, it is critical that managers contacts19.
understand how their marketing programs affect Integrated marketing communication has
consumer learning and thus subsequent recall been advanced as a strategic business process
for brand-related information14. that could contribute to building brand value.
In conclusion one could state that brand equity Although systematic research on several strategic
helps to differentiate the product from compe­ and tactical aspects of IMC is gaining momentum,
titors’ offerings; serves as a proxy for quality and it is widely accepted that effective communication
creates positive images in consumers’ minds; is critical in enabling the formation of brand
presents market share erosion during price and awareness and brand image, that is, brand equity.
promotional wars; and prevents market share Brand equity has been identified as a valuable
erosion by giving a firm time to respond to source of competitive advantage for many
competitive threats. organizations20,21. Given its importance, it is not

International Journal of Communication Research 11


Adrian Brunello

surprising that many organizations devote Where they are strong, they can be reinforced.
considerable amounts of resources to developing The marketer can become proactive in developing
strategies that will allow them to build and/or lasting relationships with desirable customers
maintain strong brands. For Duncan (2002), and prospects by understanding the reciprocity
marketing communications is the glue that that must exist between the two28.
enables the connection between the firm’s efforts In order for companies to display an integrated
and customers’ favorable responses22. marketing communication which will enhance
As Schultz (2004b) notes, brand equity is not brand equity, they have to begin with a very
merely built through independent forms of well-defined and operationalized brand identity.
communication (such as advertising or public This is the reason why firms should focus on
relations), but is generated by managing brand efforts that define and develop brand identity.
equity contacts via IMC23. IMC, with synergy Next, the brand managers and firm employees
among the various communications vehicles as should concentrate on communicating the
its fundamental concept, could potentially create established brand identity to every individual
the greatest persuasion effect in consumers’ responsible for the firm’s marketing communica­
encounters with brand contacts24. Indeed, based tions efforts. After brand managers clarify their
on their empirical study, Naik and Raman (2003) aspirations for the brand, and are able to clearly
conclude that by adopting an IMC perspective, and accurately communicate them to the brand
marketers harness synergy across multiple stewards, the IMC program should commence.
communication vehicles to build brand equity Whether internal or external to the marketing
across products and services25. firm, if the brand stewards have a clear and
Effective marketing communication enables accurate understanding of the brand identity,
the formation of brand awareness and a positive they are better able to develop a comprehensive,
brand image26. These then form the brand strategic IMC program that more clearly and
knowledge structures, which, in turn, trigger the accurately communicates that brand identity.
differentiated responses that constitute brand Finally, feedback from customers, prospects, and
equity. These researchers effectively argue that publics regarding brand awareness and brand
the IMC strategy is essential to the firm’s strategic image, along with feedback from other entities
brand development and that it strengthens the in the environment, including competitors, will
interface between the company’ s brand identity enable brand owners to adjust their brand image
strategy, and/or its IMC strategy. Therefore, the
strategy and its customer-based brand equity,
firm should pay particular attention to brand-
that is, brand awareness and brand image.
related market information from the environment.
Specifically, they propose a conceptual model of
brand equity in which the aspirational brand
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THE RELATIONSHIP BETWEEN INTEGRATED MARKETING COMMUNICATION AND BRAND EQUITY

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International Journal of Communication Research 13


Adrian Brunello

18. Joachimsthaler, E., Aaker D.A. (1997) Building Brands 24. Chang, Y., Thorson E. (2004), Television and Web
Without Mass Media in “Harvard Business Review”, Advertising Synergies in “Journal of Advertising”, 33
75 (January/February), pp. 39-50. (Summer), pp. 75-84.
19. Schultz, D.E., IMC Receives More Appropriate 25. Naik, P.A., Raman K. (2003) Understanding the
Definition in “Marketing News”. Impact of Synergy in Multimedia Communications in
20. Keller, K.L., Conceptualizing, Measuring, and “Journal of Marketing Research”, 40 (November),
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pp. 10-11. 28. Ibidem.

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