Integrated corporate and product brand communication (1).

INTRODUCTION

Today, integrated communication needs to be viewed from a global perspective. Given the speed, span and reach of electronic communication, there are technically no local or national firms, only global ones. The reality is that organizations no longer have any choice. Once they enter the electronic arena, they become global almost instantaneously as witness the growth of Amazon.com, PriceLine, Charles Schwab and other "new economy" brands. This "global without choice" situation creates a two-fold communication scenario for executives:

(a) integrated communication that is created and related primarily at the corporate brand level; and

(b) integrated marketing communication that takes place primarily at the level of the individual brands.

Corporations or firms are brands in their own right. Thus, communication decisions are not just about traditional product branding directed by the midlevel managers, but corporate and organizational brand communication as well which generally is the purview of senior corporate managers. The important point, of course, is that both areas of communication are interactive, synergistic, and generally global. This duality in communications at varying levels of management in the firm has caused much of the disruption in traditional communication planning.

In this conceptual paper, we start by looking at the global environment in which integrated communication (corporate) and/or integrated marketing communication (product or service) will be deployed. We justify the need for the two types of communication, one taking place at the corporate level, the other at the operating marketing level. Obviously for business-to-business firms or those with unitary product or service lines, this distinction may require more analysis, and in some cases, may not even be relevant. But, for those firms with multiple product lines, diverse brands, and brand architectures that rely on the corporate name for support and relevance, the issue is clear and the discussion below appropriate. More importantly, the principles and processes outlined can, we believe, be used in all organizations. The argument that follows is based on that in our book: Global Communications: An Integrated Marketing Approach (Schultz and Kitchen, 2000) and we further develop and expand this argument in Raising the Corporate Umbrella (Kitchen and Schultz, 2001).

THE CONTEXTUAL GLOBAL ENVIRONMENT

Clearly, this paper cannot consider all types of global marketing activity (see Dunning, 1993). As the period from the mid-1980's to the present day has defined the contemporary global economy, this is where we focus attention. It is in this time span, this scenario, and this economy and related marketplaces that corporations are engaged in the battles for market and mind share, competitive positioning, and global dominance. Today, businesses are still progressing through a series of environmental upheavals that are impacting business activity around the world. This has been created by an exponential advance in information technology that potentially is universally accessible; by the dislocation of labor away from the country of origin toward the Asian, Indian, and Eastern European economies; and by the rise of informed streetwise, savvy, and sophisticated consumers at least in the triad regions (i.e. in the USA/Canada, Pacific Rim, and the European Community). These factors are all influenced and impacted by the fluid nature of capital that can flow from one side of the world to the other at the flick of a computer button. And, all this is compounded by rising social issues and growing unrest concerning globalisation, not just in underdeveloped countries but in the U.S.A., Australia, and other apparently globally connected countries.

Dunning (1993) remarks:

The decision-making nexus of the MNE [global firm] in the early 1990's has come to resemble the central nervous system of a much larger group of interdependent, but less formally governed activities, aimed primarily at advancing the globally competitive strategy and position of the core organization. This it does,--first by efficiently combining its organizational specific resources with those it acquires from other firms:--second by its technology, product and marketing strategies: and,--third, by the nature of alliances it concludes with other firms (italics added).

Earlier, Bartlett and Ghoshal (1989) indicated that achieving corporate success required development and management of a cross-border network of separate but interrelated activities including:

a) taking full advantage of scale economies;

b) understanding the differences in supply capabilities and consumer needs on a country by country basis; and

c) seeking to use the experience gained nationally and internationally to strengthen the resource base of the organization.

To these we might add, a full understanding of the development and implementation of information technology. For example, North America is primarily focused on the development of broad-brand communication while China, India, and South America are focusing on wireless. While the two are compatible in a market, they are also extremely competitive in terms of development, usage, and customer acquisition.

These three activities, with our fourth, involve a continuous sensitive interaction in terms of communication and a necessary balance between globalization and localization.

But, all firms are not at the stage where global decisions need to be made on a continuing basis. Each firm is located at some or various points on the developmental continuum from domestic to global in terms of traditional marketing evolution. In spite of the fact that global communication is available, each firm may, at its choosing, be using what they believe to be singular or plural approaches to communicate with those publics/customers/consumers/users who could either impact corporate performance or constitute a target market. Further, each firm may also range from a clear focus on one element of the promotional mix (i.e. selling or direct marketing), to an integration of all communication and promotional elements combined. And those can be implemented in either a corporate or product marketing communication format. The goal of integrated communication aims, therefore, is to enhance the competitive strategy, position, and capability of the core organization to insure success--in the competitive marketplace while recognizing that product--level branding and communication is still critically important to most firms.

Competitive performance, we believe, is the major function of marketing effort, since marketing is basically about creating exchanges. From a global external perspective,--market share--or put another way--satisfaction of consumer needs, and thus, greater shares of customer requirements is the desirable outcome. From the same perspective, consumers and publics need to be communicated with, effectively, efficiently, and in an integrated manner. Following Shimp (2000), it is evident that in the highly competitive global marketplace, whatever is marketed (product, service, corporation, political party, idea) has also to be communicated. The most meaningful physical metaphor for what is to be communicated is the concept of brand.

THE MOVEMENT OF COMMUNICATION TOWARDS A GLOBAL BRAND ORIENTED APPROACH

Marketing is the major business development of the twentieth century. It affects almost every aspect of consumer daily life. It has been argued by Sheth et al. (1988), that marketing rests inexorably on two pillars: (a) thorough understanding of consumer needs and behavior; and, (b) critical analysis of opportunities for competitive advantage. To these, we would add a third pillar, (c) creating, and maintaining positive relationships with publics or stakeholders that could impact or influence corporate performance.

Marketing concerns creating satisfactory exchanges with consumers and customers as a result of integrated marketing communication programs. We believe communication must be superimposed on the marketing discipline because of the necessity of building and maintaining positive two-way relationships with other publics who could impact organizational performance. Those might include such firms or persons as suppliers of material, labor, and capital; the stock market(s), business analysts, employees, and other influential publics all of whom can be impacted through an effective corporate communication program. Conversely, such publics impact corporate performance.

Businesses today must be consumer, profit, and publicly oriented. Only a few years ago, the first two would have sufficed. But, in support of our dualistic argument regarding the marketing concept, that is--creating exchanges that satisfy individual and organizational objectives more effectively and efficiently than the competition--Philip Kotler (2000) has labelled marketing as inappropriate in a world of environmental deterioration, population expansion, world hunger and poverty, and neglected, under-funded, and business-like social services. Thus, marketing as exchange has been augmented by the need to preserve or enhance consumer and societal well being, too. Increasingly, this extends beyond 'seeming' to the needed 'substance' of corporate social responsibility.