Public Relation Based Model of Integrated Marketing Communications

By Naumovska, Ljupka; Blazeska, Daliborka | UTMS Journal of Economics, December 2016 | Go to article overview

Public Relation Based Model of Integrated Marketing Communications


Naumovska, Ljupka, Blazeska, Daliborka, UTMS Journal of Economics


INTRODUCTION

Today's dynamic business society uplifts standards for effective and sustainable communication among stakeholders. The effectiveness of company's marketing communication strategy is highly dependent on the proper combination of integrated communication elements: advertising, public relations, sales promotion, direct marketing and personal sales. For several decades the most frequently used tool for mass marketing communication of companies was and still is the advertising. The advertising, as a leading component of the promotional mix, earned its popularity; both in practice and literature due to the level of its predominant usage equated to other promotional mix components. The trend of advertising and particularly the dominant part of marketing budget captured in advertising activities was so much exploited that has lead even to stage of confusion to the term marketing. Using other words, advertising became synonym for marketing (Solomon 2010). However, due to many drivers, external and internal, business environment is changing; accordingly, companies are tailoring their business model and hence adapting their marketing integrated communications strategy. Customers are more educated and research oriented. The most dominantly uses method for marketing communications-advertising, is not based on credibility and the receiver is aware of the fact the sender has paid for the message (Koushiki 2015). Furthermore, advertising is one-way mass communication method that lacks the function of interactions-an aspect required by today's customers. The modern customer is associative with certain brand only when the relation is founded on trust, which requires a sustainable marketing communication and memorable experiences (Clow and Donald 2010). Customers nowadays seek for personal, niche oriented communication based on facts, evidences and trustworthiness-aspects that advertising cannot longer obtain because of its functional limitations. This paper will present the urge of promotional mix restructuring with much stronger exploitation of public relations versus advertising due to its advantages and functionalities based on trustworthiness. The replacement of the leading role of marketing communications strategy from advertising to public relations will be elaborated in this paper as a model for successful and effective marketing communication. The research is based on quantitative research of the business segment. In order to reach this finale, a range of arguments and models used in theory are elaborated. Previously, the paper exploits the reasons why certain marketing approaches and models, neglect public relations mainly due to the poor understanding and lack of know- how as a main driver for low PR awareness. In order to emphasize its importance, firstly, the distinctive role of PR in communication mix is discussed and then the public relations functionality is stressed out via comparative analyses with advertising disadvantages brought up by the modern market trends. Then, the new role of advertising is elaborated in accordance with new market trends. The theoretical and qualitative research in this paper is revealing a new marketing communication model with different structuring of the existing components in favor of increased public relations usage and decreased advertising efficiency.

1.THE MARKETING COMMUNICATIONS MIX

The company communicates with its target by every means of its internal and external operations and activities: advertising, promotions, pricing policies, CEO's public exposure, media statements, employee's behavior, packaging, designs etc. Some of these marketing communication elements are well integrated, planned and carefully performed, but some are less or not controlled at all. In many cases companies fail to control their external interactions and hence, jeopardize their reputation and image. Each single aspect of company's interaction with the public may influence on its image and thus on customer's willingness to undertake transactions in favor of purchasing company's products or services (Giannini 2010). …

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