Thursday, February 4, 2016

PBL task 2: Integrated Marketing Communication System

Problem:

How can companies create an integrated marketing communication system?

Learning Objectives:

1.      What is IMC about and how does it work in practice? Name a few examples.
Who is in charge of, what do you coordinate in, IMC and how?2.      How can a company synchronize communication tools/channels to give a consistent message?
3.      What are common mistakes in IMC? Give a few examples.

Answers:

What is IMC about and how does it work in practice?

IMC approach is defined as a combination of traditional communication instruments that have been used independently.  In the IMC system, the marketers learn about:
-Customer’s media usage
-Relevance of the message
-When customers/ prospects receive the message the most (when to deliver the message)
=> Building and maintaining brand equity through a united focus on stakeholder’s loyalty. (Arens, Weigold, Arens, 2013, 248-249)

In reality, IMC application is affected by several factors which are:
·         Effectiveness of each communication tools
In marketing, the AIDA model (Awareness -> Interest -> Desire -> Action) is used for understanding the customer’s engagement to the product/service for better targeting audience.
Different communication tools have different levels of effectiveness at each stage.
For examples:
To attract the customers to a product, advertising and PR seem to be more effective than the others because they have better visual effects.
When come to the conviction stage, personal selling can persuade the customers to proceed to the purchase and sales promotion push them to the action stage quickly.

§       Type of purchase
There are 2 kinds of purchase: Low-involvement purchase and High-involvement purchase

Low-involvement purchase
Inexpensive
Easy to make the decision
Ex: drink, food…
The consumers do not take much time to make the choices between the products especially they are equivalent. They quickly choose the one that has more influence due to their frequent appearances, pictures, colors, or the story of the brand. For example, Pepsi and Coca-Cola have created great impact on the consumer’s mind by establish advertising in many channels that make their products available everywhere.

ð  Heavy advertising + PR

High-involvement purchase
Expensive
Risky
Careful consideration
Ex: car, house…
Before making the purchase, the consumers do some research about the products for details about the features, characteristics and functions of them to compare them.

ð  In this case, personal selling or directing can exchange a great amount of information to the customers.

§        Product life-cycle stages 

Introduction
At this stage, the sales of the product might be slow and the companies need to gain more awareness of the consumers.
Advertising: raise awareness
Personal selling: gain distribution coverage
Sales promotion/ direct marketing: induce trial


Growth
Interactive marketing and word of mouth create momentum for the products.


Maturity
Advertising, events and experiences and personal selling are applied for this stage to maintain the sales.


Decline
Sales promotion
Reduce other communication tools

Who is in charge of, what do you coordinate in, IMC and how?

Arens, Weigold and Arens (2013) explained the IMC plan is mainly coordinated by the brand manager.
Firstly, the brand manager review the marketing plan includes the actions such as summarize the situation, establish SWOT analysis and review the target markets to understand the company’s vision.
Then setting the communication objectives:
§Create awareness

§Develop comprehension: deliver information about the product => recognize the purpose, image, position and features.
§
§Develop the conviction: deliver information to persuade customers to believe in product’s value.

Thirdly, setting up the strategies:
§ 
§Targeting the audience: Identify the end users, who make the purchase, who influence the purchasing decision.  Ex: children have strong influence in family eats.

§Product concept: Develop a simple statement to describe product’s concept (considering consumer’s perception then comparing with the company’s marketing strategy).

§Deciding communication media
§
§Establishing the message: combine copy, art and production elements.
In addition, Arens, Weigold and Arens also emphasized the important of customer that the IMC approach starts with the customer then work back to the brand. The figure below illustrates the 7-step IMC planning model.


Database

1.Segment the customers/prospects

2.Find the best time, place and situation to build and maintain the relationships
(Consumer’s attitudes, buying history, how they find and interact)

3.Identify brand contacts, changes of the purchase behavior

4.Set communication objectives and strategies

5.Determine communication tactics/ tools
(Advertising, direct marketing …)


Figure 1. Wang-Schultz 7-step IMC planning model (Arens, Weigold and Arens, 2013, 251)

 

How can a company synchronize communication tools/channels to give a consistent message?

One of the elements that makes the IMC plan integrated is complementarity that is mentioned by Kotler. The author explained that different associations and linkages are emphasized across the communication options. A communication option which is best suited to eliciting other options.

Ex:
_Flyers with attached discount code
_TV advertisement leads to the event

Bibliography 

Smith, PR, Taylor, J. (2004) Marketing Communications: an integrated approach, UK & US, Kogan Page Limited.
Kotler, K. (2012), Marketing Management, England, Pearson Education.
Arens, C., Arens, W., Weigold, M., (2013), Contemporary Advertising & Integrated Marketing Communication, New York, McGraw-Hill International Education

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