The effects of an integrated marketing communication (IMC) capability on brand performance

Drawing on the Resource Based View of the firm this research investigates how an IMC capability drives a brand's financial performance by influencing the effectiveness of communication campaigns and the brand's market-based performance. Based on the results from a sample of 187 managers with brand marketing responsibility we show that an IMC capability has a significant effect on a brand's financial performance. The analysis also demonstrates that communication campaign effectiveness and the brand's market-based performance mediate this relationship. We conclude that the process of undertaking IMC is a key business capability and a mechanism through which assets, such as brands, and managerial orientations convert into returns for the firm. Competitively, the more the firm is able to build its capability in executing IMC the greater its campaign effectiveness is likely to be, with flow-on benefits to both the brand's market and financial performance