The need for a South African integrated communication implementation model

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Globalisation directs a stakeholder-based approach

The most recognisable development in business and management today is the globalisation of markets for products and services (Kitchen, 1999:v). Kitchen and Schultz (2000:6) argue that for many businesses and industries, business extends well beyond the national marketplace. Dunning (1993:14) maintains that in such an environment, organisations need to notice the threefold focus of gaining and retaining a global competitive advantage, namely a) organisational resource, b) control over technology and c) marketing and strategic alliances. Bartlett and Ghoshal (1998:43) agree, but add firstly, that organisations also need to take full advantage of economies of scale and scope arising from global integratedness. This includes significant economies arising from experience and learning effects in both manufacturing and marketing. Secondly, Bartlett and Ghoshal (1998:43) state that organisations also need to have a proper understanding of differences in supply capabilities and consumer needs in different countries. This understanding would be derived from nationally and internationally integrated databases that monitor supply and demand (current and future) side capabilities and needs. Thirdly, organisations also need to use the experience gained in global and national markets to strengthen their resource base as a whole. Keegan (1999:3) predicts that the twenty-first century will be “one of tremendous change and diversity”. Kitchen and Schultz (2000:14) reason that almost irrespective of the distribution and widening of world markets, multi-national organisations will be poised to take full advantage of market and marketing opportunities on a global scale.

A value-chain perspective of building customer relationships

The value-chain perspective is linear, describing a series of value-added, sequential steps in building relationships with customers. It shows how the supply side is linked to the demand side, moving raw materials through a series of value-added production steps, and through marketing and sales, to channel members who provide the final added-value elements for the end user. Since the value chain is based on an industrial economic model (Drummond, et al., 2003:96) and the fact that it can be argued that the value chain takes an insideout perspective, it literally ends when the final sale is made (Wilmhurst & Mackay, 2002:13). Lancanster and Reynolds (2002:49) reason that the valuechain also fails to include the value-adding role of relationships (therefore, twoway symmetrical relationship building approach) and communication with customers. Duncan and Moriarty (1997:11-12) maintain that the value-chain’s linear approach works for explaining transaction-based, traditional marketing that focuses on products and customers. It does little, however, to explain the ongoing relationships of all the important stakeholder groups that can both add and remove value. The value chain perspective therefore overlooks the interactive nature of all the various relationships that make up a brand’s environment, which is the essence of two-way symmetrical communication management in a transformed market.

Communication management’s emphasis on a stakeholder

approach Communication is not limited to managing relationships with customers as is the case with marketing management, but should be used for planning and monitoring relationships with all stakeholder groups. As mentioned in Chapter 1, Section 1.6.2, by definition, all the organisation’s stakeholders have a vested interest in the success of the organisation (Skinner & Von Essen, 1999:34). Therefore, what the organisation does affects them, and what they do affects the organisation. Duncan and Moriarty (1997:55) state in this regard that the broader and deeper the support of the organisation’s stakeholders, the greater the stakeholder capital and thus the greater the organisation’s brand equity. Kotter and Haskett (1992:67) mention that what marketing managers often forget is that profitability is a result of the action of all the stakeholders, not just the customers. This is because each of the key stakeholder groups can affect profitability just as much as the customers. Just as brand share is the result of the organisation’s brand’s customer franchise, brand equity is the result of the organisation’s stakeholder franchise (Duncan & Moriarty, 1997:55). The marketing department must, therefore, be willing to work with other areas of the organisation and even to give up budget when resources can be better spent to address a problem or leverage an opportunity with a stakeholder group besides customers.

A value-field relationship-building perspective of communication

management Since the world is more connected, with greater interaction and interdependence of brand stakeholders than in the past, Duncan and Moriarty (1997:12) propose that a value-field approach is more applicable in the context of communication, than the traditional value chain perspective of marketing management (Drummond, et al., 2003:96; Lancanster & Reynolds, 2002:49; Wilmhurst & Mackay, 2002:13) in understanding how brand relationships and brand equity are created and how best to manage them. The value field approach shows how brand equity is a result of a field of relationships and that adding value is a non-linear, dynamic process with continual, overlapping interactions, transactions and feedback (Duncan & Moriarty, 1997:12). Gummesson (interview as quoted in Duncan & Moriarty, 1997:13) calls this an imaginary organisation, while Normann and Ramirez (1993:66) refer to this concept as a “value constellation”.

Communication management and the levels of strategic management

Argenti (2003:22) advocates communication strategy as the vital link between organisational strategies (business management) and the communication function – enabling the professional to implement communication programmes that advance the accomplishment of the corporate vision and mission. To elevate communication to the same level of importance as any of the main functional areas, it is necessary to impact on the organisation and its management where it really counts – the enterprise or corporate strategy. That is, the strategic intent of the organisation. As discussed in Section 2.2.2.3, it is imperative for communication to be part of this strategy, as this is where the organisation’s reputation and image are portrayed to the public through nonfinancial actions, such as corporate governance issues. Steyn (2000:10) adds that strategy formulation and strategic planning are prerequisites for developing a sound communication strategy, for they provide focus and direction to the communication as well as synergy between the enterprise or corporate strategy and communication.

Communication strategy in strategic management

Steyn (2000:12) strongly argues and illustrates that communication strategy is not the same as communication plans, but it provides a framework for the strategic and operational communication plans necessary to carry out the strategy. She also states that it is problem solving in unstructured situations, selecting the right problems to solve. Steyn and Puth (2000:76) contend further that communication strategy does not follow the traditional linear approach where the emphasis is on planning, but it is moulded on the more modern approaches to strategy, for example, adapting the organisation to trends, events and stakeholders in the environment (adaptive strategy). It also focuses on relationships, symbolic actions and communication, emphasising attitudinal and cognitive complexity among diverse stakeholders, which is the essence of interpretive strategy. Grunig and Hunt (already) defined the task of communication two decades ago as “building and maintaining relationships with stakeholders” (Grunig & Hunt, 1984:21).

Table of contents :

• CHAPTER Orientation and motivation
  • 1.1 INTRODUCTION
  • 1.1.1 Integration in business management
  • 1.1.2 Integration in marketing management
  • 1.1.3 Integration in communication management
  • 1.2 PROBLEM STATEMENT
  • 1.2.1 Globalisation directs a stakeholder-based approach
  • 1.2.2 A stakeholder focus
  • 1.2.3 Complexity in integrated communication implementation
  • 1.2.4 The need for a South African integrated communication implementation model
  • 1.3 PRIMARY AND SECONDARY RESEARCH OBJECTIVES
  • 1.3.1 Primary research objective
  • 1.3.2 Secondary research objectives
  • 1.4 RESEARCH METHODOLOGY
  • 1.4.1 The Mitroff model for problem solving in systems thinking
  • 1.4.2 An application of this model for systematic problem solving
  • 1.5 CONCEPTUALISATION AND META-THEORETICAL FRAMEWORK
  • 1.5.1 Grand theory
  • 1.5.1.1 Systems thinking
  • 1.5.1.2 General systems theory
  • 1.5.2 Theoretical domains
  • 1.6 DEFINITION OF TERMS
  • 1.6.1 Strategic management
  • 1.6.2 Integrated marketing communication vs. integrated communication
  • 1.7 DELIMITATION OF STUDY
  • 1.8 DEMARCATION OF CHAPTERS
• CHAPTER Business management, marketing management and communication management in a changed marketplace
  • 2.1 INTRODUCTION
  • 2.2 BUSINESS MANAGEMENT IN A CHANGED MARKET
  • 2.2.1 The management of change in business management
  • 2.2.2 A greater emphasis on strategic management in a changed market
  • 2.2.2.1 Strategic thinking and strategy formulation
  • 2.2.2.2 Strategic and operational planning
  • 2.2.2.3 Levels of strategic management
  • 2.2.3 Strategic management in a changed market necessitates a learning organisation
  • 2.3 MARKETING MANAGEMENT IN A CHANGED MARKET
  • 2.3.1 Marketing management’s emphasis on a customer approach
  • 2.3.2 A value-chain perspective of building customer relationships
  • 2.4 COMMUNICATION MANAGEMENT IN A CHANGED MARKET
  • 2.4.1 Communication management’s emphasis on a stakeholder approach
  • 2.4.2 A value-field relationship-building perspective of communication management
  • 2.4.3 A stakeholder approach to strategic communication management
  • 2.4.3.1 Communication management and the levels of strategic management
  • 2.4.3.2 Communication strategy in strategic management
  • 2.5 THEORETICAL COMPONENTS OF INTEGRATED COMMUNICATION
  • 2.5.1 Two-way symmetrical communication
  • 2.5.2 Managing stakeholder relationships
  • 2.5.3 Brand relationships and brand equity
  • 2.5.4 “One voice, one look” vs. “sophisticated” integrated communication
  • 2.5.5 Cross-functional processes and planning
  • 2.6 CHANGED ORGANISATIONS IN A POST-APARTHEID SOUTH AFRICA
  • 2.6.1 The shift towards globalisation
  • 2.6.2 The re-engineering of organisations
  • 2.6.3 The outsourcing of functions
  • 2.6.4 Organisational restructuring
  • 2.6.5 Downsizing
  • 2.6.6 The empowerment of employees
  • 2.6.7 Democracy in the workplace
  • 2.7 CONCLUSION
• CHAPTER The evolution and definition of integrated communication
  • 3.1 INTRODUCTION
  • 3.2 THE ESSENCE OF INTEGRATED COMMUNICATION: TEN STRATEGIC DRIVERS
  • 3.2.1 Drivers relating to corporate focus
  • 3.2.2 Drivers relating to corporate processes
  • 3.2.3 Drivers relating to corporate infrastructure
  • 3.3 THE HISTORY OF INTEGRATED COMMUNICATION
  • 3.4 CHANGE FACTORS STEERING INTEGRATED COMMUNICATION
  • 3.4.1 The growth and diffusion of information technology
  • 3.4.2 The shift in management’s view of communication accountability
  • 3.5 DEFINING INTEGRATED COMMUNICATION BASED ON ITS EVOLUTION
  • 3.5.1 First evolutionary era in defining integrated communication
  • 3.5.2 Second evolutionary era in defining integrated communication
  • 3.5.3 Third evolutionary era in defining integrated communication
  • 3.5.4 Fourth evolutionary era in defining integrated communication
  • 3.5.4.1 Contributions by the Gronstedt (2000) definition
  • 3.5.4.2 Contributions by the Duncan (2001) definition
  • 3.6 THREE MARKETPLACES IN WHICH INTEGRATED COMMUNICATION HAS BEEN PRACTISED
  • 3.6.1 The historical marketplace – the product century
  • 3.6.2 The twentieth century marketplace – the customer century
  • 3.6.3 The twenty-first century marketplace – the stakeholder century
  • 3.7 INTEGRATED COMMUNICATION AS A CONCORD OF ALL ENDEAVOURS
  • 3.8 CONCLUSION
• CHAPTER Integrated communication implementation models
  • 4.1 INTRODUCTION
  • 4.2 AN EVOLUTIONARY INTEGRATED COMMUNICATION MODEL
  • 4.2.1 Awareness integration stage
  • 4.2.2 Image integration stage
  • 4.2.3 Functional integration stage
  • 4.2.4 Coordinated integration stage
  • 4.2.5 Consumer-based integration stage
  • 4.2.6 Stakeholder-based integration stage
  • 4.2.7 Relationship management integration stage
  • 4.2.8 Comments and critique on the evolutionary integrated communication model
  • 4.3 A STAKEHOLDER RELATIONS MODEL FOR INTEGRATED COMMUNICATION
  • 4.3.1 Stakeholders
  • 4.3.2 Receiving tools
  • 4.3.3 Interactive tools
  • 4.3.4 Sending tools
  • 4.3.5 Comments and critique on the stakeholder relations model
  • 4.4 HUNTER’S MODEL FOR INTEGRATED COMMUNICATION
  • 4.4.1 Stage 1: coordination and cooperation between public relations and marketing
  • 4.4.2 Stage 2: top management’s view of public relations and marketing
  • 4.4.3 Stage 3: the communications department
  • 4.4.4 Stage 4: communication as part of the dominant coalition
  • 4.4.5 Stage 5: communication as part of the relationship management approach
  • 4.4.6 Comments and critique on Hunter’s model for integrated communication
  • 4.5 INTEGRATION THROUGH THE PUBLIC RELATIONS FUNCTION
  • 4.5.1 Comments and critique on integration through the public relations function
  • 4.6 THE THREE-DIMENSIONAL INTEGRATED COMMUNICATION MODEL
  • 4.6.1 The 1st dimension: external integration
  • 4.6.2 The 2nd dimension: vertical integration
  • 4.6.3 The 3rd dimension: horizontal integration
  • 4.6.4 Comments and critique on the three-dimensional approach to integrated communication
  • 4.7 AN EIGHT-STEP INTEGRATED COMMUNICATION MODEL
  • 4.7.1 Step 1: global database
  • 4.7.2 Step 2: customer value
  • 4.7.3 Step 3: contact point/preferences
  • 4.7.4 Step 4: brand relationships
  • 4.7.5 Step 5: message development and delivery
  • 4.7.6 Step 6: estimate of return on customer investment (ROCI)
  • 4.7.7 Step 7: investment and allocation
  • 4.7.8 Step 8: marketplace measurement
  • 4.7.9 Comments and critique on the eight-step integrated communication model
  • 4.8 CONCLUSION
• CHAPTER Issues in the implementation of integrated communication
  • 5.1 INTRODUCTION
  • 5.2 WHEN SHOULD INTEGRATED COMMUNICATION BE IMPLEMENTED?
  • University of Pretoria etd – Niemann, I (2005)
  • 5.2.1 Complexity of target audience
  • 5.2.2 Complexity of product or service
  • 5.2.3 Complexity of distribution
  • 5.3 WHAT SHOULD BE INTEGRATED?
  • 5.3.1 Employees
  • 5.3.2 Customers and other stakeholders
  • 5.3.3 Corporate learning
  • 5.3.4 Brand positioning
  • 5.3.5 “The big creative idea”
  • 5.3.6 Corporate mission
  • 5.4 MINIMAL REQUIREMENTS FOR THE IMPLEMENTATION OF INTEGRATED COMMUNICATION
  • 5.4.1 Structural requirements
  • 5.4.2 Customer-orientation requirements
  • 5.4.3 Brand requirements
  • 5.4.4 Management requirements
  • 5.4.5 Cultural requirements
  • 5.4.6 Uniqueness requirements
  • 5.5 PROBLEMS IN THE IMPLEMENTATION OF INTEGRATED COMMUNICATION
  • 5.6 BARRIERS TO THE IMPLEMENTATION OF INTEGRATED COMMUNICATION
  • 5.6.1 Structural barriers
  • 5.6.1.1 Organisational structure barriers
  • 5.6.1.2 Organisational character barriers
  • 5.6.1.3 Technological barriers
  • 5.6.2 Manager’s perceptions of integrated communication
  • 5.6.2.1 Resistance to change
  • 5.6.2.2 Politics and power
  • 5.6.3 Compensational barriers
  • 5.6.4 Marketing trends as barriers
  • 5.6.5 Organisations think they are already integrated
  • 5.6.6 Short-term planning
  • 5.6.7 Lack of a core capability in communication
  • 5.7 CONCLUSION
• CHAPTER Methodology: empirical research
  • 6.1 INTRODUCTION
  • 6.2 A QUALITATIVE RESEARCH PARADIGM FOR THE STUDY
  • 6.3 PRIMARY AND SECONDARY RESEARCH OBJECTIVES
  • 6.3.1 Primary research objective
  • 6.3.2 Secondary research objectives
  • 6.4 RESEARCH STRATEGY
  • 6.5 PROPOSITION RESEARCH
  • 6.5.1 Research propositions
  • 6.5.2 Theoretical statements
  • 6.6 RESEARCH METHOD
  • 6.6.1 In-depth interviews
  • 6.6.2 Face-to-face approach to in-depth interviews
  • 6.7 SAMPLING DESIGN
  • 6.7.1 Population
  • 6.7.2 Sampling technique
  • 6.8 PILOT STUDY
  • 6.8.1 Execution of the pilot study
  • 6.8.2 Consequences of the pilot study
  • 6.9 DATA ANALYSIS METHOD ACCORDING TO THE MORSE AND FIELD APPROACH
  • 6.9.1 Comprehending in the Morse and Field approach
  • 6.9.2 Synthesising in the Morse and Field approach
  • 6.9.3 Theorising in the Morse and Field approach
  • 6.9.4 Re-contextualising in the Morse and Field approach
  • 6.10 CONCLUSION
• CHAPTER The implementation of integrated communication in South Africa
  • 7.1 INTRODUCTION
  • 7.2 RESEARCH METHOD FOLLOWED
  • 7.3 AIMS OF INTERVIEW QUESTIONS
  • 7.4 INTERVIEW QUESTION IN RELATION TO PROPOSITIONS AND INTERPRETATION CATEGORIES
  • 7.5 REPORTING METHOD OF THE RESULTS
  • 7.6 REPORTING AND INTERPRETATION OF THE RESULTS
  • 7.6.1 Category 1: The understanding of the concept of integrated communication
  • 7.6.1.1 Sub-category (a): The South African context
  • 7.6.1.2 Sub-category (b): Integrated communication
  • 7.6.2 Category 2: Implementation of integrated communication
  • 7.6.2.1 Sub-category (c): Holistic orientation
  • 7.6.2.2 Sub-category (d): Internal communication
  • 7.6.2.3 Sub-category (e): Dialogue
  • 7.6.2.4 Sub-category (f): Stakeholders
  • 7.6.3 Category 3: Barriers to the implementation of integrated communication
  • 7.7 ACCEPTANCE OR REJECTION OF PROPOSITIONS FORMULATED FOR THIS STUDY
  • 7.7.1 The concept of integrated communication
  • 7.7.2 A strategic perspective of integrated communication
  • 7.7.3 The link between communication and organisational objectives
  • 7.7.4 Structural alignment to ensure cross-functional planning
  • 7.7.5 Mediums used to ensure interactivity
  • 7.7.6 Mission marketing in integrated communication implementation
  • 7.7.7 Strategic consistency measures
  • 7.7.8 Evaluation means in determining integratedness
  • 7.8 CONCLUSION
• CHAPTER A conceptual model of integrated communication in South Africa
  • 8.1 INTRODUCTION
  • 8.2 REVISITING THE PROBLEM-SOLVING MODEL
  • 8.3 RESEARCH DESIGN FOR MODEL BUILDING
  • 8.4 PRIMARY RESEARCH OBJECTIVE REVISTED
  • 8.5 CONCEPTUALISATION OF THE PROPOSED MODEL
  • 8.5.1 A systems approach to the implementation of integrated communication in South Africa
  • 8.5.2 Summary of the proposed conceptual model
  • 8.5.3 Explanation of the graphical representation of model
  • 8.6 PRINCIPLES OF THE CONCEPTUAL MODEL
  • 8.6.1 The strategic intent of the organisation drives strategic integrated communication
  • 8.6.2 Learning organisational principles continuously reposition the organisation
  • 8.7 THREE DISTINCT AREAS OF INTEGRATION
  • 8.7.1 Organisational integration area
  • 8.7.1.1 CEO/top management integration
  • 8.7.1.2 Renaissance communicator
  • 8.7.2 Stakeholder integration area
  • 8.7.2.1 Interactivity integration
  • 8.7.2.2 Brand contact point integration
  • 8.7.3 Environmental integration area
  • 8.8 INCORPORATING THE ESSENCE OF INTEGRATED COMMUNICATION IN THE CONCEPTUAL MODEL
  • 8.9 ADDRESSING CRITIQUE ON OTHER EXISITING MODELS
  • 8.10 ADDRESSING BARRIERS IN THE IMPLEMENTATION OF INTEGRATED COMMUNICATION
  • 8.11 CONCLUSION
• CHAPTER Conclusions and recommendations
  • 9.1 INTRODUCTION
  • 9.2 CONCLUSION OF FINDINGS RELATED TO RESEARCH OBJECTIVES
  • 9.2.1 Strategic integrated communication in integrated communication implementation
  • 9.2.2 Existing universal concerns in integrated communication implementation
  • 9.2.3 A global theoretical approach to integrated communication implementation
  • 9.2.4 The current state of integrated communication implementation in South Africa
  • 9.2.5 A conceptual model for integrated communication implementation in South Africa
  • 9.3 CONCLUDING REMARKS
  • 9.4 RELIABILITY OF THE STUDY
  • 9.5 LIMITATIONS OF THE STUDY
  • 9.6 SUGGESTIONS FOR FURTHER RESEARCH
  • List of references

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STRATEGIC INTEGRATED COMMUNICATION IMPLEMENTATION: TOWARDS A SOUTH AFRICAN CONCEPTUAL MODEL

STRATEGIC INTEGRATED COMMUNICATION IMPLEMENTATION: TOWARDS A SOUTH AFRICAN CONCEPTUAL MODEL