Study Unit 2 Flashcards
(21 cards)
How did the IMC develop?
The development of IMC is a shift from personalised sales to mass marketing to relationship building with a focus on personalisation and customisation.
Define Integrated Marketing Communication
IMC is the process of strategically managing consumer relationships in support of the corporate brand of an organisation; the process is aligned with and drives the corporate brand of an organisation.
What are some of the driving forces for growth of IMC?
Value for money Dissatisfaction with advertising Increasing media costs Rapid growth of database marketing Increasing price competition Environmental factors Shift of information technology
What are the components of the IMC?
IMC is an important feature of strategic management.
Organisations should achieve profound integration of marketing communication actions aligned with the corporate brand.
IMC reflects conceptual and practical change.
Organisations should achieve consistent imagery for its brands and coherent messages.
IMC requires better skilled communicators with a holistic view of communication from a brand perspective.
Focus on few key brands.
Consumer information infrastructure should be managed to achieve brand objectives.
IMC encourages communication as a unified image.
What are the benefits of IMC?
Consistency of message delivery
Better use of media
Cost savings
Easier working relations
Increased impact
Better communication uniformity
Greater professional experience
Increased brand awareness
What are the barriers of using IMC?
Few organisations have reached full integration
It’s largely misunderstood.
Internal problems such as fear of losing expertise & staff reductions, lack of understanding benefits, short-term outlook, political battles between departments.
External factors such as agency egos, fears of losing control, lack of expertise in individual areas of communication.
Budget and problems with remuneration
Structural problems as few organisations are able to implement integration
IMC staff need to develop new skills and expertise.
Name the promotional mix
Personal selling Sales management Sales promotion Publicity and media Marketing public relations Advertising Direct marketing Sponsorship Internet
What is personal selling?
One on one presentation of organisations products
Sales team or people are responsible for implementing marketing strategies
It’s 3 fold: information, persuasive and relationship building role
Types of personal selling are order taking, creative selling, supportive communication
Advantages of personal selling are bringing the human element into selling and personalising the brand; enhancing customer satisfaction; instant feedback; build relationship with customers
Disadvantages of personal selling are the limited number of potential customers per day; time consuming; possible message inconsistency; unethical behaviour; difficult to keep sales people motivated
Environmental effects on personal selling stem from external environment, organisational environment, and sales environment.
The future of personal selling assumes that consumers are more sophisticated, educated and discerning; the buying function is professionalised, better sales training, improved telecommunications; technological developments make sales people more accessible.
What’s sales management?
It’s the management process directing strategy, devising tactics and implementing policies that fulfil the organisation’s sales, marketing and corporate objectives
Management is responsible for managing, controlling and motivating sales force.
The problems with sales management is the high cost of personal selling, time involved, changing patterns of consumer buying
Management needs to decide on agents versus direct sales force; sales force structure, sales force size, territory development.
Management should employ people who are relationship oriented; financially aware; marketing trained; computer literate; and skilled in negotiation
Issues to consider in sales management are recruitment an selection; leadership and supervision; effective management; remuneration; and evaluation and control.
What’s sales promotion?
It’s marketing activities specific to a time period, place or consumer group which encourage a direct response from consumers through the offer of additional benefits.
Offers incentive to buy
Action focused marketing
Impacts on purchase behaviour, distribution, attracting and encouraging customers, packaging, pricing and profitability.
Three areas for sales promotion are business or trade sales, which creates a push mechanism; consumer sales promotion, which creates a pull mechanism; sales force sales promotion, motivated sales team to sell more.
Why is sales promotion continuously growing?
Increased respectability Growing power of retailers Increased impulse purchasing Decreasing time horizons Micro-marketing approaches Declining brand loyalty Increased competition and brand proliferation Interactivity Short term focus Affordability and demand for accountability
What are the main aims and techniques of sales promotion?
To attract new customers Stimulate repeat purchases Stimulate larger purchases Increase store traffic Introduce a new product or service
Techniques to add value are
price allowances, contests, deals, coupons, discounts, free samples, trial offers, encourage consumer to buy in conjunction with advertisement
What are the main categories and types of sales promotion?
The main categories are retailer and consumer promotions initiated by retailers; sales promotion directed towards organisations own sales force as an incentive to improve productivity; and price cuts, coupons, displays and feature advertising.
Types of sales promotions are trade promotions to push products from the manufacturer to the retailer and persuade retailers to support the brand through price cuts and in-store advertising. E.g. Extend credit and guarantees on products
Another type is consumer promotions to create a demand for products and to pull them from retailers, increase brand awareness, induce brand switching, attract new customers, and promote purchase acceleration with existing customers. E.g. Free gifts and service
Lastly, organisation promotions to generate added store traffic, move excess inventory, enhance store image, create overall perceived price image. E.g. End of season clearance sales, Edgar’s Red hanger sale
What are the steps of sales promotion planning?
Environmental or situational analysis
Setting objectives
Development of promotions strategies
Implementation of plan and activities
Evaluation of results
What are the 4 factors to consider when developing a sales promotion strategy?
Product related factors: type, price, brand image, stage in life cycle
Consumer related factors: characteristics of target market, buying decisions, level of consumer
Organisational related factors: resources allocated
Situation related factors: prominence of the organisation in its environment; and activities of competitors.
What’s publicity and media?
It’s a non personal communication, not directly paid for, in the form of a media release to ensure exposure of a product or service to known target audience
A media plan is developed to use as a guideline in media selection and product publicity is part of media planning
Results of this promotional mix component are:
Targeting and managing relationships with stakeholders;
Use to communicate with inaccessible stakeholders, i.e. Opinion leaders
Analyses trends and changes in the environment
Enables organisation to plan for crises
Allows flexible communication
Adds credibility
Cost effective
Creates basis for sales
Positions and creates a positive corporate image
Methods to obtain positive media publicity:
Distribute media releases Media conferences or launches to announce important information Exclusive rights to information Interviews with key personnel Community involvement
What is Marketing Public Relations?
It’s a new promotional discipline that comprises of marketing and public relations activities.
It’s the process of planning, executing, and evaluating programmes that encourage purchases and customer satisfaction through credible communication information aimed at te needs, wants, concerns and interests of consumers.
It gives the product or service added credibility, exposure as newsworthiness.
Benefits are credible and positive relationships; effective allocation of budget; increased skills for handling miscellaneous set of communication and promotion activities; PR remains a management function.
We use MPR to introduce a new product or service through launches;
for building brand loyalty by focusing on the credibility factor;
building consumer trust and position organisation as a provider of help;
cause-related marketing by making donations to worthy causes in consumer’s behalf.
What is Advertising?
It’s a promotion via an advertisement.
It guarantees exposure to a general or specific target audience in return for an advertising rate charged.
Aims to create awareness, persuade, inform or remind target audience.
Aims to create a predisposition, tell a story and actively build the brand
The advertising process consists of the advertiser, the message, the media, the perception, and the audience
The goal is to be unique and devise an original approach to situations.
Types of creative strategies are generic, pre-emptive, resonance, emotional, unique selling proposition, brand image and positioning.
Advertising should be explicit, precise, specific, carefully considered, calibrated and measured.
The role of advertising is to build awareness; inform target audience; overcome false impression; generate interest; develop consumer preferences; support sales force: generate leads; position the product; build credibility and positive image, reassure purchasers, create trust and remind customers of product availability.
What’s direct marketing?
It’s a two-way communication process to establish relationships and to maintain and enhance relationships.
It’s also a way to record consumer reactions and transactions as a basis for targeting, executing and measuring these actions.
Examples are direct mail, telemarketing, direct response print media, or broadcast media, or interactive media.
Marketing drivers are market changes; less effective traditional promotional tools; more individualised consumer information; marketing databases and data mining
Characteristics of interactive marketing:
Continuous availability Marketing in real time Personalisation Data volumes and integration of data Many to many communication Comparison shopping Global reach Keeping in touch Low transaction costs Website is more like a shop than a catalogue
What’s sponsorship?
It’s an commercial agreement between parties who expect a favourable return on their investment, in monetary or non-monetary terms.
The main categories of sponsorship are Cause-Related Marketing, Sport, and Event sponsorship.
It creates a feel good factor among consumers.
The benefits of sponsorship are brand equity, flexibility, media exposure, cost-effective news, global and national unification, challenges and industrial labour relations.
Methods to determine the success of sponsorship are through media audits, awareness measures, image and attitude, persuasion and preference, and behavioural messages.
How is the Internet used as a promotional mix marketing tool?
Technological developments have given rise to:
the growing importance of e-commerce;
rapid internationalisation of small and medium-sized companies;
innovative approaches;
new developments in market research and marketing information systems;
changing roles of intermediaries;
growing importance of virtual communities;
new approaches to marketing, promotion and advertising; changing power relationships;
impact of IT on market structure; and
new consumer-driven approaches.
The Internet is a low-cost gateway to global customers
The concept of connectivity relates to a network of computers which has become an extremely powerful communication and information search vehicle.
The networks required to use the Internet are LAN, WAN, and MAN.
