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- Thursday, March 30, 2017

INTRODUCTORY MARKETING COMMUNICATION BDKM 2103

            Flat UI Design Resources


                                                                                                                         


TABLE OF CONTENT


1.0       INTRODUCTION                                                                                         2

2.0       PRODUCT POSITIONING                                                                        4
            2.1       A Proposal for Extreme Travel Enterprise’s New Product         5

3.0       CONSUMER BUYING BEHAVIOUR                                                       6
            3.1       IMC Tools                                                                                          7

4.0       PRODUCT LIFE CYCLE                                                                           10

5.0       CONCLUSIONS                                                                                          12
           
ATTACHMENT                                                                                                       13                   
1.0       INTRODUCTION

The first definition for integrated marketing communication came from the American Association of Advertising Agencies (also 4A's) in 1989, defining IMC as;

"an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other. "

The 4A's definition of IMC recognizes the strategic roles of various communication disciplines (advertising, public relations, sales promotions, etc.) to provide clarity, consistency, and increased impact when combined within a comprehensive communications plan. Basically, it is the application of consistent brand messaging across both traditional and non-traditional marketing channels.

A more contemporary definition states;

"True IMC is the development of marketing strategies and creative campaigns that weave together multiple marketing disciplines (paid advertising, public relations, promotion, owned assets, and social media) that are selected and then executed to suit the particular goals of the brand. "

Instead of simply using various media to help tell a brand's overall story, with IMC the marketing leverages each communication channel's intrinsic strengths to achieve a greater impact together than each channel could achieve individually. It requires the marketer to understand each medium's limitation, including the audience's ability/willingness to absorb messaging from that medium. This understanding is integrated into a campaign's strategic plan from the very beginning of planning - so that the brand no longer simply speaks with consistency, but speaks with planned efficacy. This concept inherently provides added benefits that include: a singular/synchronized brand voice and experience, cost efficiencies generated through creativity and production, and opportunities for added value and bonus.

Companies that regard integrated marketing communications as a management function can organize the various marketing and communication activities under one leadership. The marketing communications manager controls all communications either directly or through reporting relationships. In addition to marketing material that the company generates to inform the public about its products, public relations and other information that the company produces go through the integrated management function. The marketing communications manager makes sure that the image the company projects in the marketplace is consistent and positive.

Today, corporate marketing budgets are allocated toward trade promotions, consumer promotions, branding, public relations, and advertising. The allocation of communication budgets away from mass media and traditional advertising has raised the importance of IMC importance for effective marketing. Now, marketing is viewed more as a two-way conversation between marketers and consumers.


2.0       PRODUCT POSITIONING

Brand positioning is an essential preliminary activity, or a fundamental decision in developing successful marketing. It is only by having a clear positioning statement that we know who our brand should be targeted at, what we should say about the brand and what media and message vehicle should be selected for contacting target customers.

The following is a list of some established product positioning strategies that generally used for product marketing;

          i.            Against a Competitor: Positioning product directly against a competitor’s typically requires a specific product superiority claim. A memorable example is Avis Rental Cars’ We’re #2. We try harder.

        ii.            Away from a Competitor: Positioning the product as the opposite of their competitor can help the product get attention in a market dominated by some other product. A famous example is 7-UP calling itself the Uncola.

      iii.            Benefits: This strategy focuses on a benefit the product provides to the target audience. Examples include Volvo’s emphasis on safety and Crest toothpaste’s focus on reducing cavities.

      iv.            Product Attributes: Highlighting a specific attribute of the product can also be compelling. For example, Ritz Carlton hotels focus on luxury; Motel 6 focuses on economy.

        v.            Product Categories: Comparing the product to a product in a different category can be an effective way to differentiate itself. In a soap-compares-itself-to-lotion example, Palmolive dishwashing liquid claims that it softens your hands while you do the dishes.

      vi.            Usage Occasions: This kind of positioning stresses when or how the product is used by the target audience. Jeep’s focus on off-road driving is an excellent example.

    vii.            Users: Focusing on the unique characteristics of specific users can also be effective. The …For Dummies series of instruction books are attractive to people who want to learn about a topic from a source that doesn’t assume any prior knowledge on the reader’s part.


2.1            A Proposal for Extreme Travel Enterprise’s New Product

Extreme Travel Enterprise can choose the ‘Product Attribute’ as their product positioning base. This positioning strategy is suitable because of the ETE’s new product that carries the luxury feels that can influence the audience. The 5 star products must concentrate on these values;

·         Quality – the major tool in positioning ETE product. It encompasses two key elements: 1) quality level - how it is made or perceived, and 2) quality consistency - how it performs over its life.

·         Features – the physical or intrinsic characteristics of the product that contribute to the benefits it offers.

·         Design – a combination of how the product looks and how it performs.




3.0       CONSUMER BUYING BEHAVIOUR

Consumer behavior can be defined as the process and activities people are engage in when searching, selecting, purchasing, evaluating, and disposing of products and services to satisfy their needs and desires. For ETE’s case consumer decision-making basic model can be used to analyses the consumer behavior towards their product. The model that comprise in five stages shown how the flow of consumer behavior in selecting and buying product. Figure 1 shown the various stages that occur in the consumer decision process.

Figure 1: Consumer decision-making basic model


This model suggests that customers go through five stages in making a purchase decision. For each stage, there are opportunities for marketing communication activities to be used as stimuli for the customers purchase decision.

Marketing communications activities can be used as stimuli for ETE’s consumers purchase decision. As an example let look at how marketing communicators influence customers’ attitudes and behaviors through persuasive efforts at every stage of the purchase decision-making;

A young couple just get married and planning for their honeymoon. They need something that special and unforgettable at the affordable price (Problem Recognition). They ask opinion from their family and friend and also do some research on the internet looking for any premium (5 Star) that suits their budget (Information Search). Salespersons’ attempt to convince them to purchase their travel one tour package rather than another. ETE can appeal to consumer’s intellect or to their fantasies and feelings in attempting to create desired images for their brands so that consumers will someday purchase them (Alternative Evaluation).  ETE also can use coupons, gifts, rebates and other types of promotions to induce consumers to try their products and to purchase them now rather than later (Purchase Decision). And for Post Purchase Evaluation, ETE always can keep in touch with their customers in event of any new product launch and notify the customer first.

            3.1       IMC Tools
The promotion components of the marketing mix (4Ps) constitute the promotional mix. Promotional mix is the tool of marketing communication. Each element of the promotional mix is viewed as an integrated marketing communication tool that plays a distinctive role in an IMC program. Each may take on a variety of forms. And each has certain advantages and disadvantages.

The IMC process generally begins with an integrated marketing communications plan that describes the different types of marketing, advertising, and sales tools that will be used during campaigns. These are largely promotional tools, which include everything from search engine optimization (SEO) tactics and banner advertisements to webinars and blogs. Traditional marketing communication elements such as newspapers, billboards, and magazines may also be used to inform and persuade consumers. Marketers must also decide on the appropriate combination of traditional and digital communications for their target audience to build a strong brand-consumer relationship. Regardless of the brand's promotional mix, it is important that marketers ensure their messaging is consistent and credible across all communication channels.

For ETE’s case the following paragraph will suggest the suitable tools for each stage.

Figure 2: Tools of marketing communication


a)      Problem Recognition Stage
At this stage ETE can concentrate on their advertising. A good advertising can induce customers especially newlyweds and travellers to gain their interest to travel or honeymooning.

b)     Information Search Stage
ETE’s presence must be visible at this stage. A good website with good search engine marketing can landed ETE new prospect from the internet users. And at the same time ETE must also make their presence visible in mass media medium such as newspaper, billboard, and moving vehicle like public transport.

c)      Alternative Evaluation
Sales promotion tools are vital at this stage. In persuading customers, ETE can offer them benefits of booking the travel from ETE. For example; for those customers who did their advance booking are entitle for further discounts or extra itinerary for their tour package. 

d)     Purchase Decision
Sales promotion tools are vital at this stage. In persuading customers, ETE can offer them benefits of booking the travel from ETE. For example; for those customers who did their advance booking are entitle for further discounts or extra itinerary for their tour package. 

e)      Post Purchase Evaluation
To retain the relationship with customer, ETE can always keep in touch with the customer by notify them in any event of new promotion or travel package. ETE also can offer their customer discounts if their purchasing again any of ETE product.



4.0       PRODUCT LIFE CYCLE

The most important influences in choosing objectives are the phase in the life cycle of a brand or a product. Table 1 indicates the stages in the product life cycle and communication objective for ETE.

STAGE
EXPLANATION
Introduction stage
At this stage brand awareness and brand knowledge are very important. ETE’s target audience must be repeatedly exposed to the new tour package. The communication objective is to inform the target audience about the new product and what is that product offering to. ETE also can take the opportunity to develop their brand at this early stage. Message must be clear as to how to position the brands is the market.
Growth Stage
At this stage ETE must aware that of their competitors which offering the same variety of the products. Keep in mind that customers have plenty of choices as to which brand they want to choose. At this stage, it is crucial that marketing communication persuade customers by clearly distinguishing its brand from other competing brands.
Maturity stage
The maturity stage is where customers are not only familiar with ETE but have already bought few products or services offered by ETE. It is important at this stage to communicate with the target audience about the values offered by the brand and how it can satisfy customers. With top-of-mind awareness, communication must cultivate positive brand attitude and brand loyalty in order to help increase customer satisfaction
Decline Stage
At this stage ETE may want to reduce cost and concentrate only on the most successful products and services targeted to the most profitable customers. Communication objectives are mainly to remind existing loyal customers to purchase the products or services. Here, marketing communications must be creative to attract new target groups.
Table 1: Stage in the Product Life Cycle and Communication Objectives




CONCLUSIONS

With so many products and services to choose from, consumers are often overwhelmed by the vast number of advertisements flooding both online and offline communication channels. Marketing messages run the risk of being overlooked and ignored if they are not relevant to consumers' needs and wants.

One of the major benefits of integrated marketing communications is that marketers can clearly and effectively communicate their brand's story and messaging across several communication channels to create brand awareness. IMC is also more cost-effective than mass media since consumers are likely to interact with brands across various forums and digital interfaces. As consumers spend more time on computers and mobile devices, marketers seek to weave together multiple exposures to their brands using different touch points. Companies can then view the performance of their communication tactics as a whole instead of as fragmented pieces.

The other benefit of integrated marketing communications is that it creates a competitive advantage for companies looking to boost their sales and profits. This is especially useful for small- or mid-sized firms with limited staff and marketing budgets. IMC immerses customers in communications and helps them move through the various stages of the buying process. The organization simultaneously consolidates its image, develops a dialogue, and nurtures its relationship with customers throughout the exchange. IMC can be instrumental in creating a seamless purchasing experience that spurs customers to become loyal, lifelong customers.








ATTACHMENT

REFERENCES
Caywood, D., Schultz, D.E., Wang, p. (1991), "Integrated marketing communications: a
survey of national goods advertisers", unpublished report, Medill School of Journalism, Northwestern University, June,

Coulson-Thomas, C.J. (1983), Marketing Communications, Butterworth-Heineman, Oxford.

Dyer, G. (1982), Advertising As Communication, Routledge, London, .

Kitchen, P.J., Schultz, D.E. (1999), "A multi-country comparison of the driver for IMC",
Journal of Advertising Research, Vol. 39 No.1, pp.17-21.

Miller, D., Rose, P.B. (1994), "Integrated communications: a look at reality", Public RelationsQuarterly, Vol. 39 No.1, pp.13.

Smith, P.R., Berry, C., Pulford, A. (1999), Strategic Marketing Communications, KoganPage, London.





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