Using the literature about IMC - Essay Example

?Using the Literature about IMC Executive Summary The report has been prepared for demonstrating various approaches towards the use of IMC tools by the marketers of low involvement and high involvement products. Its aim was to evaluate the difference in strategy generation through IMC tools by the marketers. It has been found out from the report discussion that the consumers’ perception of any product is the ultimate initiator for choosing the IMC tools. The marketers of low involvement products are less interested in using the IMC tools due to the inability of the strategy pertaining to influencing the customers while on the other hand, the marketers of high involvement products are very conscious of selecting the best IMC tools because these strategies have been proved to be effective in influencing the customers of high involvement products over a long period of time. Table of Contents Executive Summary 2 Introduction 4 Importance of IMC as Strategy for Relationship Building 4 IMC Tools Used by Marketers of Low-Involvement Products 5 IMC Tools Used by Marketers of High-Involvement Products 7 Conclusion 10 References 11 Bibliography 13 Introduction The most important aspect of both product as well as service marketing is to create effective communication with customers. The organizations which can effectively and efficiently communicate with their respective purposes to the customers, becomes ultimately successful in achieving the organisation’s objectives. Marketers make the most use of marketing communication tools for most effectively reaching their targeted customers. In the present times, Integrated Marketing Communication (IMC) approach has developed and the marketer presumes it to be the most effective among all other individual means of marketing communication. However, there prevail differences between the utilization of IMC tools among marketers of low involvement products and marketers of high involvement products. This research report will demonstrate and discuss the prevalence of various literatures about IMC. The aim of this report is to analyse the literatures about IMC and present an evaluation of the existing difference between marketers of low involvement products and high involvement products. Importance of IMC as Strategy for Relationship Building The concept of Integrated Marketing Communication has gained its importance as an effective means of communication in the recent times due to its effective credibility of creating long term relationship with customers. According to the literature presented by Perkins and Algren (2008), marketers who have the objective of enhancing relationship with their supporters are more probable of achieving success through the use of IMC tools than those who have lesser concern for relationship building. The prospect of relationship building strategy is enhanced through successful communication of organizational aims and objectives to the customers. Communication of the aims and objectives is aimed towards creation of greater value perception of the organization among the customers. Since the strength of relationship determines an organization’s age, marketers, in the modern world are all focused on building up long term relationship with their stakeholders. This literature has been included in this report because this will provide a basis for further analysing the marketer’s point of view regarding marketing of low involvement and high involvement products. It can, however, be cited that relationship building is the primary objective of using IMC tools by the marketers (Perkins & Algren, 2008). IMC Tools Used by Marketers of Low-Involvement Products Kitchen and Pelsmacker (2004) in their book “Integrated Marketing Communication: a Primer” have written about the fact that it does not matter as to what an advertisement provide to the people but it matters as to how the people perceive the advertisement. People are interested in spending their valuable time watching advertisements of those products only which they perceive to hold an important position in their lives. Thus, at this stage, it can be presumed that customers will have very low interest towards watching advertisements of low involvement products. This is because there is anticipation that within a product category, there will be no mass difference between features of familiar brands. The customers perceive that the performance of those brands under the same category will be more or less equivalent to each other. But it is also true that marketers usually process the low involvement products in the same way as that of products of high involvement and the scholars criticize this move of the marketers. It is apparent that experience with low involvement products has greater influence on the customers than advertisement. The influence becomes evident by purchasing decision of the customers after the initial trial on a low involvement product (Kitchen and Pelsmacker, 2004). A study was conducted by Ndubisi (2005) that analysed the effectiveness of various sales promotional tools used by the marketers for marketing low involvement products. The strategies of promoting the low involvement products like that of price discounts, bonus pack, free samples and in-store display are effective in promoting the low involvement products that results in product trial by the customers but the promotional tools like that of coupon does not influence purchasing decision of the customers. The study has an implication for the marketers of low involvement products that through selective use of IMC tools, the promotional objectives can get fulfilled by the organization. Thus, it can be assessed from the findings of the study that marketers should take crucial decision regarding the selection of effective promotional tools for low involvement products to avoid inefficient utilization of resources of the organization (Ndubisi 2005). Gardner, Mitchell and Russo (1984) way before the 90s had evaluated the conceptualization of low involvement products. They conceptualized the factor of “involvement” as a state variable which is situation-specific. This situation specific behavior of the customers is visualized when they are exposed to an advertisement. The writers have associated low involvement with either a strategy for non-brand or a deficit in attention seeking from the customers. The attitudes towards the brand in case of low involvement products is not build during the customers’ exposure to an advertisement but at the time when a purchase decision is taken by the customers. Thus, it is evident that effectiveness of IMC tools for promoting the low involvement products can only be judged from the influence on purchasing decision of the customers. But at the same time, it is also true that for low involvement products, people take the purchase decision based on their habits irrespective of their gathered knowledge from the advertisements and other promotional tools. This has an implication for the marketers that they need to be critical while taking decision regarding the use of IMC tools for promoting low involvement product. This is because they are aware of the issue that IMC tools will be partially effective in influencing purchasing decisions of the customers (Gardner, Mitchell and Russo, 1984). IMC Tools Used by Marketers of High-Involvement Products According to Laura & Et. Al. (2010), use of IMC tools is an effective approach of the marketers of high involvement products as these tools can be used as strategic business process. This process is effective in developing, valuating, measuring and coordinating various programmes of brand communication that are the most essential requirements in building relationship from long term perspectives. It is, however, also true that using the IMC tools for high involvement products is more effective in the service industry. This is because the buyer-seller relationship is bound to get enhanced in a service industry and IMC tools can be utilized at its best for enhancing the relationship over a longer period of time. IMC is such an approach where marketers combine sales and advertising with other functions, for example, online promotions. Power of IMC tools in creating the long term value with customers ensures the level of relationship in the future. In this literature, an important notion has been provided by the writers, that is, of “sustainability” factor. A strong positive relationship between sustainability and IMC tools for high involvement can be developed from the ideas generated by the writers in this literature piece. Sustainability is an essential issue in marketing related activities inclined towards high involvement products like that of software to be validated every year. Thus, the above discussion reveals that the use of IMC tools for high involvement products is more important than that of low involvement products (Laura & Et. Al., 2010). Review of another literature regarding the usefulness of IMC tools as means of strategic building by the marketers of high involvement products reveals the effectiveness of it. An interesting issue of pull versus push strategy has been observed from this literature. Push strategies are those strategies which are used by the marketers for inducing the elements of supply chain for inducing promotion and thus sell products to the end users. This strategy is effective when there is no involvement of brand loyalty to the products for which the strategy has been undertaken. Thus, this is suitable for low involvement products. On the other hand, for high involvement products, pull strategy is a better option for the marketers. This strategy is appropriate when there is requirement of generating high brand loyalty and product is of high involvement concern. It is for this reason that companies like Intel and HCL would rely more on pull strategy whereas a company like Coca-Cola strive for both pull as well as push strategy. The same endurance in pull strategy is required to be present among the marketers when they take decisions regarding the use of IMC tools. The communication mix needs to be arrived at after prolonged discussion on what level of influence is required from the marketing communication (Long Island Partnership, 2011). Gupta & Cooper (1992) had presented their perceptions regarding the affect of IMC tools on consumers’ purchase decisions. For evaluating the impact, they studied the relationship prevailing between advertisement discounts and promotional discounts which are both an essential part of the IMC tools. Although, objective of both the discounts is to influence the purchasing decision of the consumers, an integration of both the approaches will lead to creation of strong long term relationship between the buyers and sellers. Evaluation of purchasing decision by the consumers is based on the perceived value of the products and services by the consumers. Integrated IMC tools are an effective mode of enhancing perceived value of the consumers in case of high involvement products (Gupta & Coper, 1992). In a literary piece authored by Lastovicka and Gardner (1978), it has been evaluated that decision related to the IMC tools selection is simpler in case of low involvement products than that of high involvement products. The selection of IMC tools in case of low involvement and high involvement products varies due to the consumers’ perception regarding the products. The literature has presented various examination conducted by the writers on evaluating the difference between marketers’ perception of the high involvement products to that of the low involvement products. The conclusion derived at this literature suggested that the cognitive structure for low involvement products is less integrative than that of high involvement products. This is because of the fact that marketers are more interested in applying innovative and variety of approaches for high involvement products as they are more inclined towards creating long term relationship for those products. On the other hand, perceiving the consumers’ notions about the low involvement products, marketers of these products are less interested in spending more resources for using the IMC tools (Lastovicka and Gardner, 1978). Conclusion Thus, from the various literatures presented above about the use of IMC tools by marketers of low involvement and high involvement products suggest that differences prevail between both the marketers’ as well as the consumers’ perception regarding the high involvement and low involvement products. The most important aspect of the discussion has been the influencing capability of the IMC tools on consumers’ purchasing decision. Hence, the marketers are more interested in evaluating the effectiveness of IMC tools and then taking the decision. From the facts discussed above about various literatures, it is evident that marketers of low involvement products are inclined towards pushing their sells for increasing revenue while on the other hand; the marketers of high involvement products focus more on the effective integration of IMC tools so that the products can be made to be best perceived by the consumers. The ultimate aim of the marketers of high involvement products is to generate the long term relationship with the consumers. References Gardner, M. P., Mitchell, A.A. & Russo, J. E., 1984. Low Involvement Strategies for Processing Advertisements. Faculty. [Online] Available at: http://forum.johnson.cornell.edu/faculty/russo/Low%20Involvement%20Strategies.pdf [Accessed April 11, 2011]. Gupta, S. & Coper, L. G., 1992. The Discounting of Discounts and Promotion Thresholds. Journal of Consumer Research. [Online] Available at: http://www.anderson.ucla.edu/faculty/lee.cooper/Pubs/The%2520Discounting%2520of%2520Discounts%2520and%2520Promotion%2520Thresholds.pdf [Accessed April 11, 2011]. Kitchen, P. J. & Pelsmacker, P. D. 2004. Integrated Marketing Communications: A Primer. Routledge. Lastovicka, J. L. & Gardner, D. M., 1978. Low Involvement versus High Involvement Cognitive Structures. Advances in Consumer Research Volume 5. [Online] Available at: http://www.acrwebsite.org/volumes/display.asp?id=9405 [Accessed April 11, 2011]. Laura, A. & Et. Al., 2010. A Sustainable Supply Chain Management: An Integrated Communications Perspective. Forum. [Online] Available at: http://www.trforum.org/forum/downloads/2010_99_Supply_Management_Marketing_Perspective.pdf [Accessed April 11, 2011]. Long Island Partnership, 2011. Integrated Marketing Communication (IMC). General Marketing. [Online] Available at: http://www.longislandpartnership.org/2011/03/19/integrated-marketing-management-imc/ [Accessed April 11, 2011]. Ndubisi, N. O., 2005. Effectiveness of Sales Promotional Tools in Malaysia: The Case of Low Involvement Products. Allied Academies International Conference. [Online] Available at: http://sbaer.uca.edu/Research/allied/2005vegas/mktg%20studies/12.pdf [Accessed April 11, 2011]. Perkins, A. & Algren, M., 2008. The Use of Integrated Marketing Communications by U.S. Non-profit Organizations. Introduction and Review of Literature. [Online] Available at: http://people.ku.edu/~dguth/NP-IMC.pdf [Accessed April 11, 2011]. Bibliography Barron, S., Harris, K. (2003). Services Marketing: Texts and Cases, 2nd ed. Palgrave, New York, NY. Christian Gronroos (2007). Service Management and Marketing: Customer management in Service Competition. John Wiley, Chichester. Christian Gronroos (2000). Service Management and Marketing : A Customer Relationship Management Approach, 2nd Edition. John Wiley, Chichester. Groove, S. J., Carlson, L. & Dorsch, M. J. (2002). Addressing Services’ Intangibility through Integrated Marketing Communication: An Exploratory Study’. Journal of Services Marketing, Vol. 16 No. 5. Hoffman, D. K., Bateson J. E. G., Wood, E. H. & Kenyon, A. K. (2009). Services Marketing: Concepts, Strategies and Cases. Cengage Learning, South-Western. Kasper, H., Helsdingen, V. P & De Vries, W. (1999). Services Marketing Management: An International Perspective. John Wiley & Sons. Sohn, Y. (2010). ‘Toward Building the Relationships-Reputation Integrated Model’. International Journal of Integrated Marketing Communication. Read More