Integrated Marketing Communication

This report discusses the concept of integrated marketing communication and its importance in spreading business. It focuses on the marketing mix elements and channels used by H&M. The report also explores the Marcom message and different creative message strategies. It provides insights into budgeting methods and an action plan for successful marketing communication.

INTEGRATED MARKETING COMMUNICATION
1

Executive Summary
There are five elements or channels which are essential for the company to consider
significant for spreading its business in Gold Coast. The channels include advertising
element, personal selling and direct marketing, public relationships, the sales promotion for
the targeted customer and presence of every customer in the business process. The report
stresses on various models of integrated marketing communication and Marcom strategy,
including its strategies and budget. H&M is chosen for this demonstration of the marketing
mix with its elements and channels. There are effective budgeting strategies which are to be
followed by the company for grasping the Australian retail market. Among these methods,
H&M is choosing the affordability method for lowering the costs of the company products
for attracting more and more customers. With the aid of utilising low-cost strategy, the
company strategies to grasp the customers of the Gold Coast for the increment of their sales
revenue and company profit margin. Marcom message ensures the positioning of a
company’s name and brand and provides proper information which is needed by the company
for the betterment of a particular company’s sales volume and customer acquisition. H&M
officials must react to the customer feedbacks and rectify their problems for the better
customer base
2

Table of Contents
Introduction................................................................................................................................4
Overview of H&M as well as brand and product.......................................................................4
The Target Market......................................................................................................................4
Marcom Objectives....................................................................................................................5
Marcom budget..........................................................................................................................5
Different budget methods and budget method of H&M............................................................6
Marketing communication mix/ elements and channels..........................................................6
Advertising Element...............................................................................................................6
Direct Marketing.....................................................................................................................6
Personal Selling......................................................................................................................7
Public Relationships...............................................................................................................7
Sales Promotion......................................................................................................................7
Selection of the element of MC Mix and channels with justification........................................7
Marcom message........................................................................................................................7
Six types of creative message strategies....................................................................................8
Emotional...............................................................................................................................8
Unique Selling proposition.....................................................................................................8
Generic...................................................................................................................................8
Positioning..............................................................................................................................8
Brand image............................................................................................................................8
Pre-emptive.............................................................................................................................8
Reason of H&S for choosing emotional strategy.......................................................................9
Action plan providing tactics with timeline and costing..........................................................9
Summary and conclusion.........................................................................................................10
Recommendations....................................................................................................................10
3

Reference list............................................................................................................................11
Appendix: Elements of Marketing Communications Mix.......................................................13
4

Introduction
Integrated marketing communication is a simple concept which is essential for ensuring all
sorts and forms of messaging and communications which are linked together. Integrated
marketing communication means to integrate all the promotional tools for working
harmoniously. The report stresses on various models of integrated marketing communication
and Marcom strategy, including its strategies and budget. H&M is chosen for this
demonstration of the marketing mix with its elements and channels. Lastly, the report
concludes with the justification of the company for choosing a certain strategy and taking
action plan for the betterment of the company in proceeding to the Australian retail market
specifying Gold Coast. The report also provides a recommendation by which it can enter into
the Australian Retail Market with ease and excel in business management.
Overview of H&M as well as brand and product
Hennes and Mauritz is a Swedish manufacturer of cloth and garments from 1947. Erling
Persson founded the brand in 1947. Today Hennes and Mauritz is a global brand and is
situated in Stockholm, Sweden. According to Hall and Kim (2017, p.1256), uplift in business
management can only be achieved by spreading its market on a worldwide scale. The
company is growing at a rapid scale in the international market is looking forward to the
betterment of the company by spreading its market in the Australian retail industry. The
company is reputed for the sales of footwear, cosmetics, clothing accessories and other
apparels for men, women and kids. The brands of H&M consists of Monki, Weekday, Arket,
COS and others which are very reputed in the global aspect.
The recent sales of the company experienced a sale hike of 5% to $183594.76 in 2018
(Hm.com, 2019). The Local market of the company enjoyed a 3% rise in product sales, which
was beneficial for the company (Hm.com, 2019). The annual sales of the company in the
global market marked a total sales value of $45,50,431 million, which was an increase in
22% in the company sales volume (Hm.com, 2019). Depending on this, the company is
planning to start and enlarge its market in the Australian province and boost the company’s
development.
The Target Market
The company have selected Gold Coast, which is a suburban place of Australian Market as
the company forecasted that it could grow at a rapid phase in this part of the country. The
5

company officials forecasted this strategy as they forecasted about the immense growth of the
business in the Gold Coast. As influenced by the views of Forzoni et al. (2018, p.56), it can
be stated that accepting nature in the people can help in spreading business at a rapid pace.
Depending on this strategy, the company is also planning to launch its products in the Gold
Coast for the betterment in sales revenue collection of the company. The Australian market is
ready to accept the company as the retail industry of the country is greatly approachable.
Marcom Objectives
Depending on the analysis, it can be understood that there are six objectives which are
necessary for understanding the business processes of the company.
● To create brand awareness
● To enhance brand image
● Increase customer loyalty
● To introduce new brands
● To inform the customers about the latest brands introduces
● To improve corporate relationships with special interest groups
Marcom budget
Per cent of sales budgeting
Budgeting cost of H&M will be evaluated by calculating the ratio between advertising cost
and sales cost. Company will try to maintain $20,000 for budgeting cost within which overall
sales expenditure, including advertising cost, will be estimated significantly (Hm.com, 2019).
The company also plans to follow an affordable structure for the betterment of the company.
Marcom budget is one of the best levels of investments which the company is targeting to
follow. This method maximises MR=MC, where MC is marketing cost and MR is Marketing
Revenue. This involves a tremendous amount of budget for maximising its profits in the
Australian retail Market. Another important method of Marcom Budgeting is the process of
advertising. The company significantly will decide to follow this process of advertising and
H&M have decided to invest in an advertisement for the betterment in promotion, leading to
increased customer attention.
6

Different budget methods and budget method of H&M
The Marcom strategy
There are certain methods which are related to the budget analysis of Marcom Budgeting
strategies. The methods are as follows,
● Percent-of-Sales Budgeting
● Objective-and-Task Method
● Competitive Parity Method
● Affordability Method
There are effective budgeting strategies which are to be followed by the company for
grasping the Australian retail market. Among these methods, H&M is choosing the
affordability method for lowering the costs of the company products for attracting more and
more customers. With the aid of utilising low-cost strategy, the company strategies to grasp
the customers of the Gold Coast for the increment of their sales revenue and company profit
margin. As influenced by the views of Cawsey and Rowley (2016, p.759), it can be analysed
that maintaining low cost is essential for any company to increase sales volume. The
company thus is targeting low-cost structure for attracting most of the Australian women
mass for the increment of sales in women garments and footwear in which H&M is best at
(Hm.com, 2019).
Marketing communication mix/ elements and channels
Advertising Element
Advertising dramatises the brand of the company, and the consumers generate a healthy and
legitimate relationship with the company. As per the views of Laurie and Mortimer (2019,
p.17) advertising builds brand image and inflames the number of short term sales.
Advertising is important for all business processes as it increases the customer base and
boosts brand recognition.
Direct Marketing
Direct marketing involves various kinds of marketing, which involves, telephonic marketing,
direct mail marketing, online marketing, social media marketing and a lot more. According to
Fill and Turnbull (2016, p.28) Direct marketing involves four different characteristics,
including Nonpublic, Intermediate, Customised and Interactive. These are well suited for
highly targeted marketing efforts.
7

Personal Selling
Personal selling is the best-suited method, which is essential for interacting marketing as it
provides customer feedback, which is essential for upgrading and uplifting the company
products. According to Juska (2017, p.32), customer feedback is an essential part of any
business management as it rectifies the problems of a certain organisation.
Public Relationships
Public Relationships is essential for uplifting business management and reflects the idea of
the mass about a specific company by which a company can improve and prosper. According
to Ots and Nyilasy (2015, p.141), the public relations is important for all companies as it
creates a strong bonding between a company and its customers.
Sales Promotion
Providing certain offers and attractive coupons by any retail company can increase a short
term sale in a company which is beneficial for all companies. As per the views of Batra and
Keller (2016, p.129), it can be analysed that providing discounts and arranging lottery
contests can increase company sales volume.
Selection of the element of MC Mix and channels with justification
Among these five elements, the company have chosen the policy and promised to undergo
according to this policy of advertising and marketing strategy which is essential for reaching
out to the Australian customer mass and increasing the sales value of the company. Based on
the views of Keller (2016, p.291), it can be analysed that advertising and promotion are
essential for spreading business process in any part of the retail market of the world.
Depending upon these aspects, the company chose to stick to the advertising process as it
generates a strong bonding between the customer and the company along with providing
short time sales and increases brand awareness by dramatisation. Thus the company is
efficient to follow the process of advertisement and promotion of the brand as it is essential
for customer attraction and to boost company sales (Refer to Appendix).
Marcom message
Marcom message is a strategy for ensuring the marketing plans which a company undertakes.
Marcom message is the message which is suggested by the marketing communication
network of a company. According to Kuang-Jung et al. (2015, p.38), it can be stated that
Marcom message ensures the positioning of a company’s name and brand and provides
8

proper information which is needed by the company for the betterment of a particular
company’s sales volume and customer acquisition.
Six types of creative message strategies
Emotional
An emotional strategy is applied to create a dependency in the customer’s mind, which is
beneficial for the company. As per the views of Fill and Turnbull (2016, p.39) infusing
emotionality in customer transaction is essential for a company to boost customer loyalty.
Unique Selling Proposition
A company must infuse certain attributes in a product which is authentic and unique for the
customers. According to Blakeman (2018, p.19), this helps in taking a company one step
further towards brand awareness and customer attraction. This is a simple but powerful
strategy boosting the main selling point.
Generic
The generic strategy is essential for incorporating in an advertisement as it focuses on selling
category rather than brand specification. According to Valos et al. (2016, p.27), categorical
analysis is essential in advertising for highlighting the features of a particular product.
Positioning
Positioning places a certain brand at the best position in a competitive market. This is
essential for a particular company to maintain its position on the rank scale.
Brand image
Brand image is a psychological connection which develops in customers mind for a specific
brand. This can be influenced by a company for increasing the rate of brand addiction, which
is tremendously beneficial for the company as it invokes a sense of love towards a certain
brand.
Pre-emptive
This is the strategy which is taken by various companies for being the first company to sell a
particular product to a target audience. This is important for some selective business
processes.
9

Figure 1: Six types of creative message strategies
(Source: As influenced by the views of Blakeman, 2018)
Reason of H&S for choosing an emotional strategy
H&S will choose the emotional strategy as it is one of the serious factors which must be
stressed for betterment in customer retention and increase brand loyalty and customer
attraction. The company chose this strategy as the company through dramatising
advertisements can increase brand addiction to a large number of customers.
Action plan providing tactics with timeline and costing
Different activities The way of fulfilling the
goal of activities and
timeline and cost
Responsible person
Communicating with
international customers daily
Focusing on messages of
customers and contacting
immediately with them
regarding their requirements
Three months
Marketing manager
10
Six types
of creative
message
strategies
Pre-
emptive
Positioning
Unique
Selling
proposition
Emotional
Generic
Brand
image

$100
Optimizing official website
daily through the social
media optimization process
Recruiting skilled and
experienced digital marketer
Two months
$200
Digital Marketer
Increasing customer base Providing discounts and gift
cards and contests
1 month
$250
Sales manager
Building brand awareness Generating advertisements
with dramatisation for better
customer loyalty and
attention
2 months
$100
Marketing manager
Table 1: Action plan
(Source: influenced by Luxton et al. 2015, p.39)
Summary and conclusion
Thus it can be concluded that Marketing is one of the great steps for the betterment in sales
volume of a company. Marketing Communication involves merchandising, research and
development, communication and promotion. Based on the above discussions, it can be
analysed that the company will significantly follow emotional tactics for generating more
customers and increasing its sales volume.
Recommendations
H&S must involve various steps which are essential for the company to stress on. The
company should recruit quality employees for brand promotion and advertising of the
company products in the Gold Coast. Again the company officials must react to the customer
feedbacks and rectify their problems for the better customer base. Along with that, the
11

company also must indulge in social media marketing to attract especially the youth
generation and create brand loyalty.
12

Reference list
Batra, R. and Keller, K.L., (2016). Integrating marketing communications: New findings,
new lessons, and new ideas. Journal of Marketing, 80(6), pp.122-145.
Blakeman, R., (2018). Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Cawsey, T. and Rowley, J., (2016). Social media brand building strategies in B2B
companies. Marketing Intelligence & Planning, 34(6), pp.754-776.
Fill, C. and Turnbull, S.L., (2016). Marketing communications: brands, experiences and
participation. London: Pearson.
Forzoni, L., Buffagni, C., Nonino, F. and Pompei, A., (2018), December. Case Study of a
Clinical Marketing Strategy within a Global Diagnostic Imaging Company. In Proceedings of
the 2018 International Conference on Education Technology Management (pp. 53-57).
ACM.
Hall, K.D. and Kim, J.S., (2017). Millions for Marcom, but Not One Cent for Research: A
Structured Abstract. In Creating Marketing Magic and Innovative Future Marketing
Trends (pp. 1253-1257). Springer, Cham.
Hm.com. (2019). About H&M Group. Available at: https://about.hm.com/en.html [Accessed
on: 28.05.2019]
Hm.com. (2019). Full Year Report of 2018. Available at:
https://about.hm.com/content/dam/hmgroup/groupsite/documents/masterlanguage/cision/
2019/01/2371044.pdf [Accessed on: 28.05.2019]
Juska, J.M., (2017). Integrated marketing communication: advertising and promotion in a
digital world. Abingdon: Routledge.
Keller, K.L., (2016). Unlocking the power of integrated marketing communications: How
integrated is your IMC program?. Journal of Advertising, 45(3), pp.286-301.
Kuang-Jung, C., Mei-Liang, C., Chu-Mei, L. and Chien-Jung, H., (2015). Integrated
marketing communication, collaborative marketing, and global brand building in
Taiwan. International Journal of Organizational Innovation, 7(4).
Laurie, S. and Mortimer, K., (2019). How to achieve true integration: the impact of integrated
marketing communication on the client/agency relationship. Journal of Marketing
Management, pp.1-22.
Luxton, S., Reid, M. and Mavondo, F., (2015). Integrated marketing communication
capability and brand performance. Journal of Advertising, 44(1), pp.37-46.
13

Ots, M. and Nyilasy, G., (2015). Integrated marketing communications (IMC): Why does it
fail?: An analysis of practitioner mental models exposes barriers of IMC
implementation. Journal of Advertising Research, 55(2), pp.132-145.
Valos, M.J., Haji Habibi, F., Casidy, R., Driesener, C.B. and Maplestone, V.L., (2016).
Exploring the integration of social media within integrated marketing communication
frameworks: Perspectives of services marketers. Marketing Intelligence & Planning, 34(1),
pp.19-40.
14

Appendix: Elements of Marketing Communications Mix
(Source: http://www.themarketingguywhodrivessales.com/crashcourse/promix.htm)
15