Elements of marketing communications

Published Date: 23 Mar 2015

Integrated Marketing Communications (IMC) is one of the most important nowadays' promotional practices, incorporating various different types of promotional elements, referred as the promotional mixes. Due to the different views of separate authors analyzing and defining these elements, various promotional mixes, including various elements occur.

Despite the differences in definitions, the purposes of all promotional mixes stay the same - provision of a set of tools used for promotion that could be adhered to certain situations in the market. These situations could be defined depending on various factors, such as stages in company's product's life cycle, company's willingness to communicate with its customers, company's will to maintain long-term relationships with its customers, etc.

Given the different promotional mixes available, the purpose of this work is to analyze the Integrated Marketing Communications (IMC) practice in terms of theory and practice, performing these steps in the process of the written work:

Analysis of theoretical material provided from four different authors for the purpose of observation and definition of differences in promotional mixes, according to Philip J. Kitchen and Patrick De Pelsmacker, Philip Kotler, Jim Blythe and Stephen Pike;

Defining the usage of various promotional mixes in the product and service sectors of the Lithuanian and foreign markets, through performed analysis of companies Vodafone, Omnitel, United Colors of Benetton and Audimas;

Conduction and analysis of a survey hosted in the Internet-based survey portal http://www.apklausa.lt for the purpose of finding the most and the least appealing marketing elements and defining the cause of the particular answers;

Drawing a conclusion combining the analysis of the theoretical part, definition of the various promotional mix usages in practice and the information provided by a conducted survey.

By reading this study, one will be able to gain in-depth knowledge about the elements of Integrated Marketing Communications (IMC), understand the differences between various promotional mixes and their element usage, observe the usage of these elements in practice and develop an opinion of how and when should a certain promotional mix and marketing element be used to do the strongest impact on a potential customer.

THEORY

2.1 About integrated marketing communications

In the course of marketing principles, the definition of Marketing communications is as follows: transmission from a sender to a receiver of a message dealing with the buyer-seller Relationship.

The definition of Integrated Marketing Communications (IMC) is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost (wikipedia.org).

Nowadays marketing communications is considered as one of the part of business which is considered the key competitive advantage of marketing and supervised by the companies with the highest level of interest.

As Integrated Marketing Communications is proclaimed to be a key competitive advantage of marketing, there occur discussions about the reasons of the emergence and growth of IMC. Philip J. Kitchen (2004) provides the following factors as the reason for:

Movement of marketing budget below-the-line - away from mass media advertising.

Media explosion and accompanying fragmentation.

Market demassification and splintering.

Greater segmentation and emergence of niche and unitary markets.

A revolution in information technology which is still sweeping the world.

More development of, easier access to, and usage of huge consumer databases that effectively underpin marketing communication of all types.

The importance of reinforcing consumer loyalty via Relationship marketing.

The importance of building and increasing a brand's image based equity.

Generally, the brand was recognized as the primary driver of corporate success.

Development and diffusion of digital technology.

The spread of multinationalization and globalism, supported by economic and political means.

As Integrated Marketing Communications is a set of tools (elements) used in order to reach the customer, there is no doubt that earlier, at the very beginning these tools could had been not combined but used and understood as separate instruments for product or service promotion. But as communication was defined as a transactional process (not processes) between two or more parties, the set of IMC tools was defined as promotional mix and the companies began using combinations of promotional mix elements in the promotion process of their product.

Marketing communication mix elements provide information that is important add value to a product or service from both sides - buyer (consumer) and the company (provider) as customers gain information about products or services and the company attracts more customers to buy, influences the demand of the product or service and in that case gets more profits, as the customer gains pleasure by observing that purchase.

According to the studies of the 1990's provided by Kitchen, there were four points defining the benefits of IMC:

Increased communications impact.

Higher level of effectiveness of creative ideas.

Provision of greater communication consistency.

Improved client return on communication investment.

By the year 2003, many commentators defined a negative side of IMC:

Not felt that IMC application could provide faster solutions.

Spotted weaknesses in terms of effective measurement and evaluation.

Indicated that IMC's time and cost contribution - uncertain.

Noted that much of IMC concerned with the need to combine and synergise promotional mix elements.

Because the IMC emerged so successfully and is combined of a set of different marketing tools in order to reach the customer effectively, there are various suggestions for the composition of the promotional mix (as at the beginning they were used separately). The compositions of elements, presented by different authors, are provided in this chapter of the written work.

In the course of Marketing Principles there are 8 elements of expanded promotional mix introduced:

Advertising.

Product placement.

Sales promotion.

Direct marketing.

Public Relations.

Publicity.

Guerilla marketing.

Sponsorships.

But in further part of this chapter, as it was already mentioned, there is be an opportunity to see that different authors provide various number of elements included into promotional mix.

2.2 Elements of integrated marketing communications

2.2.1 Philip Kotler (2001)

Philip Kotler in the book "Principles of Marketing" defines five major elements of promotional mix:

Advertising.

Personal selling.

Sales promotion.

Public relations.

Figure "Integrated promotional mix" (Kotler, 2001)Direct marketing.

Advertising is defined as "any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor". Some forms that are understood as forms of advertising: print, broadcast, outdoor and other forms.

The definition of personal selling is provided as follows: "personal presentation by the firm's sales force for the purpose of making sales and building customer relationships". The forms of presenting personal selling are: sales presentastions, trade shows, incentive programs.

Sales promotion, according to Kotler, is "short time incentives to encourage the purchase or sale of a product or service". Point-of-purchase displays, premiums, discounts, coupons, specialty advertising and demonstrations are the forms of sales promotion.

P.Kotler provides the definition of public relations as follows: "building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavourable rumors, stories and events".

Direct marketing is defined as "direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships". Forms of tis ICM element are: catologs, telemarketing, fax, kiosks, the Internet and else.

2.2.2 Philip J. Kitchen (and Patrick De Pelsmacker) (2004)

Philip J. Kitchen and Patrick De Pelsmacker in the book "Integrated Marketing communications: A Primer" presented a promotional mix which consists of "seven main elements of modern promotion":

Advertsing.

Sales promotion.

Direct marketing.

Marketing public relations.

Sponsorship.

Internet or e-communications.

Relationship marketing.

In the book "Integrated Marketing communications: A Primer" Philip J. Kitchen provides the definition of advertising: "any paid form of non-personal presentation of ideas, goods or services by an identified sponsor". This element of promotional mix covers such communications functions as informing, persuading, reminding, adding value and assisting other company efforts.

Awareness of avoiding the advertising, or ethical issues that advertising was linked to during the process of development, defines the need to set effective objectives at the beginning of advertising process which have to be "compatible with overall corporate objectives" and have to be revisited after the changes of market conditions. The biggest challenge for the advertisers is measuring the effects of advertising when it is used separately and in the combination with other elements of the promotional mix.

Author defines sales promotion as "a range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives".

Figure "Sales promotion during the trade channels" (Kitchen, 2005)This promotional mix element is focused on short-term objectives, is sales-oriented and forces customers to purchase a good without thinking, immediately. This element of IMC is used during the whole trade channel - manufacturers, distributors and resellers.

Kitchen defines three main types of promotion: consumer (and retailer) promotions; trade promotions; sales force promotions, and all these types have a wide variety of tools available. But, because of short-term orientation, sales promotions (especially trade promotions) use an increasingly important part of IMC budget

Consumer promotional tools

Trade promotion tools

Sales force promotion

Money-based

Buying allowances

Sales meeting

Product-based

Count-recount allowances

Free sales training

Prize-based

Buy back allowances

Contests

…

Merchandise allowances

…

Specialty advertising

Advertising allowances

Slotting fees

Table "Types of sales promotion" (Kitchen, 2004)

The definition of direct marketing is provided as follows: "an interactive system of personal and intermediary-free dialogue which uses one or more communications media to affect a measurable behavioral response at any location, forming a basis for creating and further developing an ongoing direct Relationship between an organization and each of its customers individually".

This element is an increasingly important tool of the IMC mix that allows marketers to communicate with highly targeted consumer segments directly, even with individual customers and stimulate purchases directly. This is the element which allows engaging long-term relationship building contacts with customers. Due to the more powerful database, maintenance and changes in database construction, the efficiency and quality of direct marketing operations have instantly improved.

Like other IMC elements, marketing public relations faces lots of challenges in a competitive nowadays world, particularly in terms of accountability for efficiency and effectiveness.

Definition of sponsorship is: "an investment in cash or kind in an activity, in return for access to the exploitable commercial potential associated with this activity. <...> The sponsor also actively markets his association with the sponsored event or cause". This can be an effective tool for creating and supporting brand awareness, enhancing brand images and building and supporting customer loyalty.

Sponsorship projects, even more than any other elements should be effectively added to the IMC. "The strategic fit between the sponsored event or cause and the company's objectives of target groups, and the promotional spin-off potential of the project are very important considerations". There are three types of sponsorship: event; cause-related; broadcast.

"E-communications is using the Internet, mobile phones, interactive television, and other electronic media in marketing communication campaigns" mentioned P.J. Kitchen. This is a vital part of all communications nowadays and of IMC. As the convergence of media is expected, there should not be forgotten the point that technology can only be successful only when "consumers are able and willing to understand, accept, adopt, and use it in their buying decisions".

P.J. Kitchen provides a definition of relationship marketing as follows: "Relationship marketing is marketing seen as relationships, networks and interaction. It is aimed at establishing long-term win-win relationships with customers". This element's concept is the profitability of loyal customers.

2.2.3 Jim Blythe (2005)

Jim Blythe in the book "Essentials of marketing", at the very beginning of talking about the promotional mix (IMC mix) names four elements of the basic promotional mix:

Advertising

Sales promotion

Personal selling

Public relations

Figure "Marketing mix" (Blythe, 2005)This author provides an outstanding definition of promotional mix: "the promotional mix is like a recipe, in which the ingredients must be added at the right times and in the right quantities for the promotion to be effective".

Advertising, according to Jim Blythe, is: "a paid message inserted in a medium". And the hugest amount of advertising works below the conscious level and there are four elements important in the effectiveness of advertising listed:

Awareness.

Liking.

Interest.

Enjoyment.

The message of advertising has to be clear as it is a non-personal communication and is directed for lots of customers s and without doubt marketers, using advertising strategy, use the attention and interest attraction (A and I of the AIDA model) . it is usually impossible to cover all Aida model in one advertisement, so there is a spread between types of promotion (elements of IMC), so there are various types of advertising campaigns, Jim Blythe provides few categories of these campaigns: teaser campaigns; lifestyle campaigns; rational campaigns.

Jim Blythe defines sales promotions as "short-term activities designed to generate a temporary increase in sales of the products" and the purpose of this IMC element is creating a temporary increase in sales by adding immediacy to the decision-making process. There are listed four characteristics of sales promotions:

Attractiveness.

Fit to product category.

Reception delay.

Value.

This element of IMC is said to be useful for low-value items and is most useful and effective while used with other elements of promotional mix. And Blythe, similarly to P.J.Kitchen, provides three types of sales promotions: trade promotions; retailer promotions; manufacturer promotions.

Personal selling is called the most expensive promotional tool, "used only for high-order-value or highly technical products that need a lengthy decision-making procedure". Ales persons have to combine knoelwdge of the product, knowledge of the customer's needs and knowledge of sales techniques "to help the customer arrive at a decision".

Public relations are defined as "the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organiozation and its publics". Basic routes that oublic relations operate through are mouth-to-mouth, press and TV news, and personal recommendation. As advertising is considered to be both persuasive and informative, public relations is used only for providing information.

Besides four basic elements of promotional mix, J.Blythe shortly presents sponsorship ("an investment, in cash or kind, in an activity in return for access to the exploitable commercial potential associated with this activity") and mentions publicity which together with public relations is considered the most cost-effective promotional elements.

2.2.4 Steven Pike (2008)

In the book "Destination marketing. An integrated marketing communication approach", written by Steven Pike, there are listed only five elements of IMC, which are as follows:

Advertising

Personal selling.

Sales promotion.

Public relations.

Direct marketing.

Steven Pike defines advertising as "paid non-personal promotion of ideas or products by an identifiable sponsor". The target of this IMC element is stimulating the desired images of the customer in such way that causes the action. This author presents four stages in the design and implementation of advertising campaign:

Objectives setting.

Budget allocation decisions.

Message decisions.

Evaluation of the campaign.

Message decisions stage is named as the most problematic one, because these decisions should be guided by segmentation and positioning strategies and should have a clear focus and point of differentiation.

Personal selling S.Pike called the most effective IMC element in stimulating the dialogue with consumers. This is very effective in launching new products, services, brands or facilities and appears as trade shows, special interest travel trade exhibitions, tourism exchanges or trade education seminars. This IMC element, used as a push strategy, is mostly favoured by small budget companies because costs are lower than advertising.

Sales promotion is not widely discussed by this author, there is only mentioned the fact that "individual businesses attempt to match capacity with projected levels of demand through measures such as yield management and sales promotion" and that this activity contains 5% of promotional budgeting.

Mostly discussed element of IMC in the book "Destination marketing. An integrated marketing communication approach" is public relations, defined as: "the process of managing how, when, and in what way you communicate, so that you may ultimately influence the behavior, attitude, and perceptions of those important to you". There is also listed the main functions and hierarchy of public relations.

Functions:

Achieving positive editorial message coverage.

Engaging the public.

Active management of communications.

Application of strategy and creativity in reputation management.

Networking with potential clients at seminars, exhibitions, and events.

Wining and dining important customers.

Function

Philosophy

Press agentry

Striving for media publicity

Public information

Disseminating objective but positive information only

One-way asymmetrical

Utilizing research to design messages that will stimulate stakeholders to behave the way the organization desires

Two-way symmetrical

Using research and open communication to enhance relationships, where both the organization and publics can be convinced of the need for change.

Table "Hierarchy of public relations" (Pike, 2008)

Direct marketing, similarly to sales promotions, is not widely discussed by S.Pike, this element of IMC is mentioned just in the part of budgeting, where was mentioned that direct marketing takes 7% of consumer advertising budget.

ELEMENTS USED BY FOREIGN COMPANIES

3.1 United Colors of Benetton

Benetton is one of the largest Europe's clothing manufacturer and the world's largest consumer of wool products in the garment sector. Today this company is present in 120 countries. The stores are managed by independent partners and generate a total turnover of over 2 billion euro. It is a company with high Italian quality, whose style and design are clearly seen in the United Colors of Benetton and more fashion-oriented Sisley brand and in sportswear Playlife brand.

„The development of Benetton's commercial organization has been supported by a major programme of investment in megastores, some of which are run directly by the group, per its plan to control distribution, others by long-standing partners. These stores are in very prestigious locations and offer their customers very high quality.

So the secret of so popular and successful business in United colors of Benetton company is marketing. Nowadays we live in a society where the image is in the first place of our values. Every day we buy less and less products but more and more image. It is not a bag, it's Luis Vuiton , it's not a pair of jeans, it's a pair of Levi's. „One brand stands out from the others not by so much by product design but as by marketing strategies". And United Colors of Benetton is responsible for this. They don't choose directly advertising, they want to show that this is the first company which is not interested in products but in the people wearing them. The company is responsible for personal contact, they are available for everyone: „no matter your skin color , living region, social background or sexual preference".

For United Colors of Benetton promotion and advertising is responsible one person - Oliviero Toscani. This company never had real advertising but when Benetton hired Oliviero everything changed. He was responsible for advertising strategy.

United Colors of Benetton advertising principle is very simple -"take a powerful image and stamp a logo in a corner". Toscani established the image of Benetton Company as one of the most powerful brands in the world. He says that „the advertising industry does not recognize its power to influence culture for the better", thought that advertising is a waste of time or communication and very expensive. So the United Colors of Benetton try to have an image that will make people to discuss, help us to see the world differently. That is the reason why UCB is using social advertising where people can see AIDS victims or newborn baby with a blood. In company's advertisements never will be labeled clothing, only a logo in the corner of the picture.

Pease and brotherhood. It was a message to the world from UCB in 1993. The company was addressing the issue of racism and in the ads people could see a black woman breastfeeding a white child. Later Benetton launched AIDS and Safe Sex campaign and these advertisements raised companies brand profile, although it cause problems with customers and retailers. As Toscani said: "it was advertisement of reality". Advertising campaigns for Benetton was really cheap, they spend 4 % of the income of their marketing.

Nowadays this company has Public Relations offices in every country. Furthermore UCB sponsor volleyball team in Italy and Formula 1. It's other way how to advertise United Colors of Benetton brand.

This company is using Philip Kotler strategy which was written in the book "Principles of Marketing" and he defines five major elements of promotional mix:

Advertising.

Personal selling.

Sales promotion.

Public relations.

Direct marketing.

All these points are in UCB Company's marketing. „Benetton cares about the controversial issues and wants to see a discussion about these topics. "

3.2 Vodafone

Vodafone Group- is a global telecommunicating company headquartered in United Kingdom. It's the largest company in the world by revenue and the second-largest by subscribers with 332 â€žmillion proportionate subscribers as at 30 September 2010". This network operates in 30 countries and has partners in 40 countries. ' It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers'. Vodafone name comes from voice data fone,' chosen by the company to "reflect the provision of voice and data services over mobile phones".

The secret of the most famous brand in the world is Vodafone using marketing strategy. The world market has few barriers therefore Vodafone must be visible as 'the brand to buy'. Marketing involves customers needs and finding them the right product or service at suitable price. Vodafone seeks more and more to impress its customers not only by products also they try to increase benefits. 'This involves effective communication.' Vodafone seeks to get new customers and aims to keep old ones by emphasizing their unique brand.

Vodafone aim is to improve its profit margin by adding value to its products and services. They try to earn more from products which they sold. The 'Vodafone live' service let users to download pictures, music, games or information.

Advertising:

This company advertises its brand with sports icons such as David Beckham.

People can see Vodafone on TV, in magazines or other media outlets.

Stores have special offers.

Stores, products and staff project the Vodafone image.

Public relations (PR):

PR is planned, continuous effort organization which lets to establish and develop good relationships with all public. That Vodafone is the partners with Manchester United football team and Ferrari provide positive relationships with public. Nowadays society want to know everything and you can't leave them without any information. So Vodafone sent for clients all information about sport or formula 1. This company is providing 'with plenty of positive press coverage, world-of-mouth and public relations.'

Internet:

Because Vodafone network is used by more than 332 million users in more than 40 countries, so this company moved their communication to the Internet. They have the main Vodafone website where customers can order new communication plan , buy a telephone or pay for the bills.

Vodafone suggest for their customers social networking (chat and dating), entertainment (music, videos or TV). What is more this network users can order a mobile internet on your PC or Mac, on your phone.

It's very easy to use this mobile network; you have just to go into the main Vodafone website.

Sponsorship:

Sponsorship for Vodafone is more than having a logo on a shirt or a racing car. The company tries to act as ambassadors for their brand saying to the world: 'This brand is all about being dependable, empathetic, and innovative, can do and full of vitality and life'.

For example, Ferrari fans can order MMS (multimedia messaging services), news services and chat forums, and download interested games or wallpapers. What is more the Vodafone Race Track racing imitator lets for clients to compete in racing simulator. 'Vodafone's link with Ferrari gives them a USP in terms of up-to-the-minute involvement with the world's leading racing team.'

ELEMENTS USED BY LITHUANIAN COMPANIES

In this part we are going to talk about two Lithuanian companies. They are well known around in Lithuania and in some cases in other countries. These companies are - „Audimas" and Teo.

4.1 Audimas

The first company that we chose - „Audimas", was started in Kaunas in 1936. First of all it was a sewing business. On those days, when Lithuania was in Soviet Union „Audimas" was state owned and it produced some sports clothing. When Lithuania got freedom, in 1991 „Audimas" became joint-stock company. And it is still now. A huge renovation was made during 1997 and 1998 in all departments - from manufacturing to selling. Today there are about 500 employees. „Audimas" also has a department in Belarus. It is the biggest sports and leisure clothing manufacturer in Lithuania.

„Audimas" business covers all the process from designing the product to logistics. It makes business in two main poles as they say - "regional brand operation" with already made clothes and "supplier operation" which covers development of new clothing line and selling in the local area. It delivers the production quite fast and there are now complains about that, it cares for middleman's, develops the delivery service.

„Audimas" seeks to:

Always be innovative;

Create high quality, stylish sports clothing;

Satisfy the need of people living active style life.

The company tries to implement strategy by creating strong values:

Ethics and Fairness. Acting fairly while maintaining high ethical standards and a strong sense of responsibility and maintaining transparency in management.

Customer-focus. Providing customers with new values and solutions, and achieving sustainable growth together.

Innovation. Achieving continuous innovation in all corporate activities, and aiming for dynamic evolution and growth.

Competencies and Initiative. Strengthening fieldwork abilities and initiative, the foundations of our corporate activities, through consistently learning from one another and constant self-driven efforts.

Emphasis on Human Resources. Providing an environment where employees find value in their work, and building positive, energetic relationships between people and the organization.

Safety and Environment. Placing top priority on safety, accident prevention and environmental preservation, ensuring the safety and health of our employees, our customers and local communities.

In this part we are going to look deeper in the elements of marketing communication of „Audimas" company.

„Audimas" - freedom of movement!

The idea of the trademark is the focus of exploring, discovering, what makes you feel better. The text written in the Internet site appeals to readers feelings. They are telling to look at the eyes of a man or a women, who discovered something new, while riding a bike or doing other outside sports - they look different. Then the text goes on about freedom - what does it mean to „Audimas", how it is relevant to the fact that the company is making as comfortable clothing as it can be for an active lifestyle, a balanced life and great energy movement.

Advertising

„Audimas" doesn't seem to have a huge advertising campaign, that it is sure not pushy and in the same time effective. They are the first company which used legally bought foreign song and its movie clip in the TV commercial in Lithuania. It was a commercial showing people enjoy the taste of freedom of life. The clip reflects „Audimas" values and philosophy. „Audimas" has several impressive TV commercials similar to this one that are related to main values of the company.

One Lithuanian story could be mentioned as an example of other advertising. „Audimas" in year of 2000 made an outdoor stand, with real clothes inside. It may seem that it was really smart communication with customers. Not in Lithuania, because many of clothes were stolen. This advertising campaign was suspended.

Internet

„Audimas" has a great part of customers and partners that are active Internet users, so they moved their communication forward to the Internet, by promoting the brand trough the Internet. They have several Internet web pages. The first is mainly about the company and the second is an e-shop, where you can order and buy „Audimas" production. The Internet website gives an information about discounts, new production. With the help of e-shop „Audimas" gathers information about customers, needs of the market and then it can easier make decisions.

„Audimas" uses Internet for other communication as well, like for example there was a competition - who will be the models of photo session for a new product line. This competition was madee in well known news web page www.delfi.lt and there were about 200 participants. Web page users were voting and only nine of 200 were chosen.

The other aspect of internet use is social network. You can find „Audimas" in one of the most famous these days social network site - facebook.com. There you can find pictures of the new collection, everything about discounts and coupons. This is the part related to the sales promotion.

Sales promotion

There are a lot of discounts that „Audimas" offers in the facebook. Starting with seasonal discounts. There are also coupons for one of the product line clothes that make 100Lt discount. In this part of the year they made an offer for Christmas - special clothing with lower prices.

Sponsorship

„Audimas" made great promotion in 1999 when supported the Lithuanian Olympic team. It still does it until now and is the official sponsor of Lithuanian team. It also makes clothing for basketball team „Žalgiris". In 2001 the new production for this club was presented by brake and other style dancers. It also makes clothing for Latvian basketball team.

„Audimas" supports not only famous sportsmen and clubs, but also young and perspective sportsmen, various events for children sports. In 2001 „Audimas" started a basketball tournament called "Orange Virus". The purpose of this game is to make an opportunity for citizens to spend time having fun and having an opportunity to become famous in sports, as „Audimas" says "Orange Virus" also prevents young people from crime.

„Audimas" also has a campaign for supporting disable people.

4.2 Omnitel

It is the biggest telecommunication company in the Baltics, providing a variety of telecommunication services - transferring voice, mail, new information, entertainment and other operations. „Omnitel" is a member of TeliaSonera group. From beginning „Omnitel" had a great influence in new technology development in Lithuania. It is the first company started GSM services in 1995 and the first in Lithuania offered 3G services in 2006.

History

1991 Juozas Kazickas and Viktoras Gediminas Gruodis founded company "Litcom". It was the first private telecommunication company in Baltics.

1995 „Omnitel" (first in Lithuania) offered GSM and.internet services.

2000 - first WAP portal was lauched.

From 2001 „Omnitel" is the largest telecommunication company in the Baltics.

In 2002 „Omnitel" launched alliance "Window to the Future" encouraging Internet and computer literacy development.

In 2002 „Omnitel" was the first one who offered MMS services.

In 2004 Onitel became TeliaSonera group member and now it owns 100% of „Omnitel" shares.

One more interesting campaign that „Omnitel" started is the social innovation "Grow responsibly". It seeks to stimulate responsibility and positive culture in the family.

The elements of marketing communication that „Omnitel" uses.

Internet

„Omnitel" has a well developed communication through the internet. A web page with self-service ability, where customers may do all the necessary everyday operations, from seeing how much messages did they sent to paying for the services by online banks. There is information about all „Omnitel" plans and prices. It is convenient for users.

 Advertising

„Omnitel" does a huge advertising on TV. They do it like a story, going by one theme. Some commercials are ranked in the highest positions by the internet users in the surveys. Like for example in 2009 a commercial for a new plan for a family with flying planets and all family members on them, with nice music playing on the background got first place.

Also „Omnitel" use outdoor stands in the streets and bus stop, were „Omnitel" is promoting new mobile prices for 1Litas or just some new services.

There was an analysis made, how much prices are similar in Lithuania telecommunication sector and the conclusion was that in this field of business it is like a war. „Omnitel" is one of the strongest in the field and for maintaining its position it has to offer the most attracting and new advertising for the costumers.

Sales promotion

Like it was said, there is a war on telecommunication services in Lithuania and only offering all kinds of coupons and discounts „Omnitel" can maintain its large proportion of market share. Today as the Christmas is coming „Omnitel" is offering a 3400Litas discount for smart phones. „Omnitel" also offers lottery - in the latest one each costumer who bought OmniId can win a Renault car. There is also a lottery where costumer has to send a text message to a given number and might win tickets to a concert. Offering all kind of discounts, lottery and coupons „Omnitel" pushes costumers to use its services.

Direct marketing

„Omnitel" has a pool of numbers and emails. And by direct marketing they try to attract new customers. Phone calls offering to change the operator or to enter a new plan, email with new services - hard, but effective communication.

Public relations

„Omnitel" organises many events in Lithuania.

For 11th time the most popular and prestige auto sport event - "„Omnitel" 1000 km race". It is recognized worldwide, because last year it was shown on a "Motors TV" channel - a multinational one, not only in Lithuania.

A recent event for young and keen people - „Omnitel" gadget creating competition, hold all weekend, for creating programs for smart phones, the winner will get 15000Litas.

„Omnitel" also organises boys (until 18) basketball championship, that is the second most attractive sports event in Lithuania, gathering talented and perspective basketball players from all around the Europe.

Aurelijus Katkevičius has written a book about „Omnitel" company that is also some kind of public relation.

Another sport event is „Omnitel" organised footbal competition for children. It is called „Ežys goal" and has been organised four years in a row.

„Omnitel" has even disco parties. „Ežys Discotronas" a party in one of the night clubs in Vilnius, were some discounts have been offered for „Omnitel" users.

Also „Omnitel" had written a long-term contract with Office of Lithuanian Government and is an service provider to the government administration.

CONCLUSIONS

There were four authors analyzed in this paperwork, and the results are as follows:

Marketing principles

Philip Kotler (2001)

Philip J. Kitchen (2004)

Jim Blythe (2005)

Steven Pike (2008)

Advertising

Advertising

Advertising

Advertising

Advertising

Sales promotion

Sales promotion

Sales promotion

Sales promotion

Sales promotion

Product placement

Personal selling

Internet or

e-communications

Personal selling

Personal selling

Public relations

Public relations

Marketing public relations

Public relations

Public relations

Direct marketing

Direct marketing

Direct marketing

Publicity

Direct marketing

Sponsorships

Sponsorship

Sponsorship

Guerilla marketing

Relationship marketing

Publicity

Figure "Promotional mixes by different authors"

As it is seen from the table above, there are only three elements of Integrated Marketing Communications (IMC) that were named by all of four authors and mentioned in the course of Marketing Principles: advertising, sales promotion and public relations (although P. J. Kitchen called this element marketing public relations). According to this, a conclusion can be made that the most successful result in selling a product or service can be reached by combining these three elements. Nonpersonal presentation and promotion of good or service, short time incentives to encourage purchase of goods or services and building good relations with publics including building up a good corporate image, these are the IMC elements, causing the effective growth of sales.

Vodafone company is using Philip J. Kitchen strategy which was written in the book 'Integrated Marketing communications. And this author emphasizes seven communication elements:

Advertising.

Sales promotion.

Direct marketing.

Marketing public Relations.

Sponsorship.

Internet or e-communications.

Relationship marketing.

LIST OF REFFERENCES

Blythe J. (2005). "Essentials of marketing"

http://en.wikipedia.org/wiki/Vodafone

http://uzdarbis.lt/t156557/"Omnitel"-programeliu-dirbtuves/

http://www.adbrands.net/uk/vodafone_uk.htm

http://www.benetton.com

http://www.docshare.com/doc/81693/Case-analysis-benetton

http://www.fibaeurope-u18men.com/en/default.asp

http://www.klase.lt/renginiai/view/31406/ezio-diskotronas

http://www.kronika.lt/index.php/sportas-ir-renginiai/276-eio-golas

http://www.promosportas.lt/lt/lenktynes/naujienos/

http://www.synopanel.lt/naujiena/2009-m-kovas-10-labiausiai-isiminusiu-10-labiausiai-patikusiu-reklamu/

http://www.thetimes100.co.uk/case-study--superbrand-sponsorship--41-43-5.php

http://www.thetimes100.co.uk/download-vodafone-edition-9-full-case-study_41_131_144

http://www.trysmilijonai.lt/renginiai/"Omnitel"-1000-km-lenktynes-lietuva-1724.html

http://www.verslobanga.lt/lt/leidinys.printer/3e49145d08aa4

http://www.vilnius-events.lt/lt/renginiai/"Omnitel"-europos-vaikinu-iki-18-m-krepsinio-cempionatas

http://www.vodafone.co.uk/personal/index.htm

http://www.vtv.lt/naujienos/telekomunikacijos/365.html

Kitchen P.J, Pelsmacker P (2004)."Integrated Marketing communications: A Primer"

Kotler, P (2001). „Principles of marketing"

Marketing UCB case study http://www.e-bgroup.com/articles/UCB.pdf

Pike S. (2008). "Destination marketing. An integrated marketing communication approach"