Benefits of Integrating Marketing Communication - Essay Example

Integrating Marketing Communication (IMC) affiliation Integrating Marketing Communication (IMC) Integrated marketing communication is a management strategy that focuses on integrating and coordinating all communication avenues, sources, and tools within an organization into a seamless program aimed at maximizing the impact on consumers and other users at minimum cost. IMC has become one of the most crucial weapons against competition for companies. This helps companies look at the marketing process from the perspective of customers and involves promotional activities coordinating (Smith, 2004). Companies have been able to take advantage of the various sources of communication to increase their competitive advantage. These include sales promotion, direct marketing, publicity, and advertising. Many big companies have been implementing new ways of technology and media that will help them in their IMC strategies. Benefits of IMC IMC has become very beneficial to companies in maintaining their competitive advantage, by helping them focus on marketing, operations, and sales resources in promoting the same messages to consumers and by making sure that marketing and sales promises are consistently being delivered. IMC also improves the value of the promotional effort by increasing its cost-effectiveness. This has a direct positive effect on the expenses incurred per unit being sold, which in turn has a positive effect on the balance sheet. Finally, IMC brings out better results for the company because sales, advertising, and marketing functions, which were in the past taken as separate functions now function as one under the IMC. This brings out coordination and cohesiveness that is reflected in positive results for the company. IMC five step Planning Process IMC has become a crucial aspect of companies that want to succeed in their operations. This helps in coordinating and branding communication efforts to achieve the objectives of the organization (Schultz, 1993). The most popular version of the IMC planning model is the five-step strategic planning process. This includes selecting the target audience, understanding the target audience decision-making, determining the best positioning, developing a communication strategy, and setting up a media strategy. Selecting the target market starts by analyzing and comprehending the market and understanding consumer wants. This is considered the start of a successful marketing campaign. Once the company has found a niche for its products and services, it is crucial that it does a research on its competitors and similar products and services that are available in the market. After this process, the company can be able to come up with overall plan to launch its products and services. It is crucial to note that partnerships, sales methods, and franchising must be established first because they are crucial aspects of product and service launch. The second step involves understanding the target audience decision-making process by analyzing how people make decision to buy a product or service. For example, the unique feature in a product and service that would make a person buy products and services from one company and not the other. Other features include the price, quality, and packaging of products. This is crucial because the company will be able to gain a competitive advantage over its competitors. The next step involves determining the best position which involves selecting a target market that includes a distinct group of consumers who the company is confident that they are most likely to buy its products and services. This also looks at the unique features of the target group including the interests or hobbies, age, gender, and their ability to afford the products and services provided. Every market has specific characteristics for example, in terms of their taste and preferences, and it is crucial for companies to find the customers who best fit their products and service. This is crucial as customers buy products and services based of their quality, some because they are cheaper, and some because of their tastes. Companies need to come up with tactics which effectively use the marketing mix tools of price, product, promotion, and distribution that will reach and influence prospective customers. After the best position and the target group have been identified, the company can effectively develop a communication strategy. Identifying the ideal customers for the products and services provided by the company helps in the advertisements, pricing, product packaging, and pricing which will be adapted by a business. A lack of understanding of the target market can be detrimental to the business, for example, if the wrong message is passed to the target market through the advertisements, they can feel offended. This process looks at the material and the message that is most appropriate for the chosen group. The cultural background of the target market is one crucial aspect that needs to be considered when developing a communication strategy. Understanding culture is especially crucial for companies that operates internationally. This is because people in different markets have different cultures depending on their understanding and their traditions. This is also so as to avoid cultural conflicts that in the host country that may affect the acceptance of the business by the citizens. For example, companies operating in markets that are located in the east like Arabia and Qatar cannot use marketing communication strategies which encourage alcohol consumption or social interactions between people of opposite sex. This is due to the fact that these countries prohibit the consumption of alcohol. Since, they mainly follow the Islamic law, they follow this culture as consumption of alcohol is against the Islamic law. The culture of these countries also includes restrictions in the social interaction. This is where it is forbidden to show affections in public like holding hands, shaking hands with the opposite sex. The final step is setting up a media strategy to market to the intended target audience. This needs to be a strategy which will ensure that many people get the messages. Some of the media strategies available include television and radio advertisements that runs for a reasonable period of time during normal programming. Other media strategies include the use of posters, and billboard that contain messages which to inform customers about the product. With globalization, online marketing has also become very common today. Many businesses use the internet to market their products, build credibility, trust, and share information about a brand. The final media strategy available is the use of newspapers and magazines. The most crucial thing in advertising products through the newspapers and magazines is the visual effects. IMC Objectives The objectives of an IMC campaign are closely related to the objectives of a company. Some of these objectives include increasing the product awareness which is one of the most common objectives of marketing. This is especially for new companies or for companies which are entering into new market. Once a company enters a market, it is crucial to let the potential customers about the products and services which are provided by the company. This also includes telling them about the image of the company, the brand name, and slogans. This will help the product and service stick in the memories of consumers. However, comparative advertising where companies openly compare their products with that of the competitor’s is unethical and illegal in some countries. This is also considered to be culturally in some societies especially among Asians. The second objective is to change the attitude of the company and its products. The consumers’ attitude is their purchase intentions, beliefs about, and feelings towards a product. These beliefs ban be both positive and negative, for example, McDonalds’ food is believed to taste good buy some customers but some think that they are high in fat. It is hard to change beliefs that are deeply held and in most cases advertisers are in a better position to add a belief. This objective is crucial in cases where there are misconceptions about a company, its products and services. Negative publicity can be detrimental to the performance of the company. IMC campaigns also have the objective of attracting new customers by motivating them to buy products and services. Celebrity endorsement can also boost this objective and encourage consumers to buy the products. The Elaboration Likelihood Model (ELM) argues that products that have a popular endorser have a high chance of attracting more customers, regardless the qualifications of the endorser (Shin, 2013). However, it is crucial to note that for some products considered to be important, consumers often scrutinize the credentials of the endorser. Yes No Yes No Companies appreciate that they operate in very competitive markets which makes customer retention a crucial objective of an IMC campaign. This helps companies improve in their competitiveness. This also aims at stimulating brand switching by getting customers to switch to the company’s brand from using competitors’ products. Some companies also instill fear among customers by informing them of the negative consequences of not using their product. This is especially seen in mouthwash advertisements where they talk about tooth loss and gingivitis resulting from poor oral hygiene. Tools and Strategies Some of the media strategies which are available include advertisements which have become the modern form of communication that aims at persuading the target market to purchase certain products and services. It also aims at creating awareness and helping companies maintain their competitive advantage in the market. Some tools used in advertisements include television advertisements which gives viewers crucial and unique information about the company and helps customers be able to differentiate the services provided by the company as compared to those of the competitors. There are also radio advertisements that target a large audience. Billboard advertising is another method that is used in passing information about a product or service provided by a company to motorists. With globalization, online business has become very common today. Many businesses use the internet to market their products. The final media strategy available is the use of newspapers and magazines. The most crucial thing in advertising products through the newspapers and magazines is the visual effects. IMC Budgeting Budgets are itemized forecast of companies’ income and expenses in a future period of time. In any organization, budgets are a representation of the future revenues and costs. The main characteristics of budgets is that they are prepared in advance and are derived from long term strategy of a company. The budgets relate to the goals and objectives of the organization and express in quantitative form, the monetary and physical units of activities. IMC strategy also involves budgeting of the expected expenses that will be incurred by a company when it undertakes a certain marketing strategy. This helps in planning and controlling. Budgets are crucial control systems that show estimates of expenses of a company over a certain period of time. Some of the components in an IMC budget include the marketing strategy selected, such as, advertising, the period in which the selected strategy will be used, and the expected amount of money to be used in implementing the strategy. IMC Campaign Measuring and Evaluation The effectiveness of an IMC strategy is a controversial topic. In most cases, advertising leads to a relative increase in the sales of a company. The effectiveness of an advertising campaign follows an “S” shaped curve (Keillor, 2007). Response Relatively high effectiveness Saturation Low amount to do much good Amount of Spending on Advertisement The curve shows that very little investment can be effective in reaching consumers, medium level of advertising can be effective, however, at the saturation level, any effort in advertising can have a limited amount of effectives (Arens, 2004). There are a number of ways in which companies can evaluate and measure the effectiveness of a campaign chosen. Field based study is one method used in measuring the effectiveness of a campaign chosen. This involving studying the effect of a marketing campaign using consumers in real life. For example, the IMC strategy can be evaluated by ability to change consumers’ attitude of the company and its products. This is crucial in cases where there are misconceptions about a company, its products and services. IMC campaigns are also evaluated based on their return on investment. It is crucial for companies to make sure that the money spent in a marketing strategy, has brought returns to the company in terms of fulfilling the set objectives. The number of customers should increase as a result of a marketing strategy. The company should also be able to retain its customers attract new customers, and increase the market share. The amount of money spent of a marketing strategy should be compared to the increase in sales resulting from the campaign. This is the fastest way of determining the effectiveness of an IMC strategy. However, it is also a misleading way of measuring the IC campaign because there are other factors that might affect the sales level. A good example is seen in the case of soft drinks whose sale is also affected by temperature. Companies can invest a lot in advertising in the winter but the sales level will still be higher during summer because more people drink soft drinks in hot weather. Finally, the effectiveness of a marketing strategy is also determined by reactions from various company stakeholders. For example, if competitors copy the strategy used by a company or come up with a better version of the strategy, the company will know that its strategy has gotten the attention of its competitors and therefore, is effective. The effectiveness of an IMC campaign can also be determined through laboratory studies where a company uses artificial situations to evaluate the strategy. This can involve inviting or hiring people who would participate in the research. The study group can then be given a television program that includes an advertisement and give an analysis on the same through a questionnaire. There can be a “control group” to serve as a basis for comparison on the effectiveness of the campaign tool. This includes looking at their attitude towards the purchasing intention, preference, and the brand. Barriers to IMC Implementation Despite the benefits that come with the implementation of IMC strategies, there are many barriers. This is a campaign that required both human and financial resources in order to be successful, including time. This process needs people who are highly skilled in areas that include print advertising, direct marketing, public relation, and web marketing, which are essential in any integrated marketing communication campaign. The skills and knowledge will be crucial in executing the marketing plan. If some employees involved in the implementation of an IMC plan do not have the necessary skills, the campaign will not be a success. Also if the management does not take time to ensure that the campaign has been executed or does not invest enough funds, the campaign can be negatively affected. For an integrated marketing campaign to be successful there is need for guidance support, and resources from upper management. If this is not there, it creates barrier to the successful implementation of the campaign. It is crucial for the top management team to work with other employees by making sure that resources are available, ranging from funds and manpower, to sharing information. This is crucial because IMC do not put control on one manager, but, ensures that there is shared control, which can create a barrier if some managers are not cooperating. Different cultures can also create barriers to successfully implement an IMC campaign. This is evident if companies do not take time to research about their targets markets. The cultural background of the target market is one crucial aspect that needs to be considered when developing a communication strategy. Understanding culture is especially crucial for companies that operate internationally. This is because people in different markets have different cultures depending on their understanding and their traditions. However, companies may also have their own culture that fits in their marketing campaign. Conflict between two cultures cannot be positive and may result to a barrier where the company tries to find ways of balancing between the two cultures. For example, a research conducted by Prendergast on what in the Asian context was considered offensive advertising showed that the culture does not accept indecent language, nudity, and sexist themes. Respondents argued that these are the main reason for them to consider an n advertisement controversial and offensive. The study further showed that once an advertisement goes against the culture of consumers, they will not be inclined to buy the products that are promoted through the advertisement (Kliatchko, 2013). Companies are also faced with barriers related with restricted creativity. Teams that are involved in coming up with an integrated marketing campaign face the challenge of making sure that the campaign fits with the goals of the campaign. This means that they need to be created, but their idea should be related to the goals of the campaign. Regardless of how creative a campaign is the company cannot implement it unless is within goals of the campaign. The goal in this case is the message which the company wants to send to its consumers. What is crucial in any marketing strategy is the message that is being sent to customers. Conclusion Integrated marketing communication is a management strategy that focuses on integrating and coordinating all communication avenues, sources, and tools within an organization into a seamless program aimed at maximizing the impact on consumers and other users at minimum cost. The most popular version of the IMC planning model is the five-step strategic planning process. This includes selecting the target audience, understanding the target audience decision-making, determining the best positioning, developing a communication strategy, and setting up a media strategy. Some of the objectives of IMC strategy include increasing the product awareness, changing customers’ attitude, and retaining customers. Strategies that can be used in this campaign include television advertisement, radio advertisement, billboard advertisements, online marketing, and the use of newspapers and magazines. IMC budgeting is crucial in the success of any marketing strategy. Some barriers to IMC strategies include lack of skills and knowledge among employees, lack of support and resources from upper management. Different cultures can also create barriers to successfully implement an IMC campaign. Companies are also faced with barriers related with restricted creativity. Bibliography Arens, W. F. (2004). Contemporary advertising. Boston, Mass. [u.a.: McGraw-Hill/Irwin. Keillor, B. D. (2007). Marketing in the 21st century. Westport, Conn: Praeger. Kliatchko, J. (2013). The primary of the consumer in IMC: Espousing a personalist view and ethical implications. The Evolution of Intergrated Marketing Communications: The Consumer-driven Marketplace, pp. 83-105. Schultz, D. E., Tannenbaum, S. I., & Lauterborn, R. F. (1993). Integrated marketing communications. Lincolnwood, Ill., USA: NTC Business Books. Shin, K.-Y. (2013). The executor of integrated marketing communications strategy: Marcom managers working model. Berlin: Springer. Smith, P. R., & Taylor, J. (2004). Marketing communications: An integrated approach. London: K. Page. Read More