Integrated Marketing Communications Imc and Its Effectiveness in Organizations

Table of contents

Integrated Marketing Communications (IMC) is defined as: “A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.” (about.com, 2006)

When a company selects and implements an IMC campaign, that company can focus all of its advertising and promotional efforts towards delivering the same united message and reaching their specific objective. All of the marketing tools utilized by the company can be focused and synergized with each other and their effectiveness can increase significantly.

The marketing message relayed by the company is clear and consistent and is able to reach the target audience without confusion while ensuring that all of the segments of the campaign have been reached. The Integrated Marketing Communications of a company can differ from profit to not-for-profit organizations. As IMC has previously been defined, its definition will be shown in the differences of the two types of organizations as well as providing a current real world example for review.

“IMC as the promotional mix – managing the P (of the 4 P’s) that is promotion – but blending it with the communications efforts of other departments such as public relations and corporate communications, so the company speaks with one voice and its messages are consistent.

Managing the promotional mix used to be fairly easy – there were only mass communications options of direct mail, advertising, public relations, etc. – then technology changed all of that.

The Internet, wireless, MP3 players, Bluetooth – technologies that changed the way we communicate with everyone, including employees and customers.” (Gray. March 7, 2006) Managing the four P’s of Marketing are important for both profit and not-for-profit companies; however, each approach the IMC process in different ways.
Profits versus Non-Profits

“Major differences in how organizations carry out the various steps and associated activities in the strategic planning process are more a matter of the size of the organization — than its for-profit/nonprofit status. Small nonprofits and small for-profits tend to conduct somewhat similar planning activities that are different from those conducted in large organizations.

On the other hand, large nonprofits and large for-profits tend to conduct somewhat similar planning activities that are different from those conducted in small organizations. (The focus of the planning activities is often different between for-profits and nonprofits. Non-profits tend to focus more on matters of board development, fundraising and volunteer management. For-profits tend to focus more on activities to maximize profit.)

Also, in addition to the size of the organization, differences in how organizations carry out the planning activities are more a matter of the nature of the participants in the organization — than its for-profit/nonprofit status. For example, detail-oriented people may prefer a linear, top-down, general-to-specific approach to planning. On the other hand, rather artistic and highly reflective people may favor of a highly divergent and “organic” approach to planning. Strategic planning serves a variety of purposes in organization, including to:

  1. Clearly define the purpose of the organization and to establish realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation.
  2. Communicate those goals and objectives to the organization’s constituents.
  3. Develop a sense of ownership of the plan.
  4. Ensure the most effective use is made of the organization’s resources by focusing the resources on the key priorities.
  5. Provide a base from which progress can be measured and establish a mechanism for informed change when needed.
  6. Bring together of everyone’s best and most reasoned efforts have important value in building a consensus about where an organization is going.
  7. Provides clearer focus of organization, producing more efficiency and effectiveness
  8. Bridges staff and board of directors (in the case of corporations)
  9. Builds strong teams in the board and the staff (in the case of corporations)
  10. Provides the glue that keeps the board together (in the case of corporations)
  11. Produces great satisfaction among planners around a common vision
  12. Increases productivity from increased efficiency and effectiveness
  13. Solves major problems” (McNamara, 1999)

Real Life Example of IMC

Brand Imaging is important in everything you do as a company. A real-life example of a successful IMC campaign can be clearly illustrated when evaluating McDonald’s. There are simple methods in which to continually brand a company like McDonald’s has with their Golden Arches. The Chief Global Marketing Officer for McDonald’s has taken the IMC campaign globally as well.

“Have you heard the buzz about “brand journalism”? The term was coined by McDonald’s chief Global marketing officer, Larry Light. Light recently announced Mickey D’s would no longer pursue a singular brand message. Instead, the global giant will tailor its brand communications to niche markets and adapt them to media in which they appear.

“Identifying one brand position, communicating it in a repetitive manner is old-fashioned, out of date, out of touch,” Light says. “Simplistic marketing is marketing suicide.” (Solomon, 2004) Within the local Southern California market, the different local McDonald’s chains vary based on the neighborhood in which they reside.

In Newport Beach, for example, the McDonald’s is very upscale and has flat screen 70+” plasma televisions playing Nickelodeon, plush booths and table service. In the neighboring Costa Mesa, the establishment is a generic restaurant. Their IMC campaign is uniform across their chain yet personalized based on location. It shows that the marketing efforts are focused on winning the patronage of the target market in that particular location.

Conclusion

IMC is the conglomeration of all of the marketing tools utilized by a company that focuses on the 4P’s and reaches the intended audience without the confusion of different groups working in isolation. The IMC strategies for profit and non-profit companies differ yet still have unity of the marketing communications with a common goal. Unifying the marketing efforts of a company has long term success and works for some of America’s most recognized brands and companies.

References:

  • The Foundation Center. “What is cause-related marketing?”. 2006.
    http://fdncenter.org/learn/faqs/html/cause_marketing.html
  • Dana Gray, MS, APR. University of Phoenix, Tulsa Campus.March 7, 2006. DQ response.
  • Carter McNamara, MBA, PhD, Copyright 1999, Authenticity Consulting, LLC. Strategic
  • Planning (in nonprofit or for-profit organizations)
    http://www.managementhelp.org/plan_dec/str_plan/str_plan.htm
  • Susan Solomon | July 28, 2004. Brand Journalism: A Field Day for Web Marketers

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A Review of the Application of Integrated Marketing Communications

Table of contents

Introduction

The notion of integrated marketing communications (IMC) is not new although it has become popular in recent times (Pickton D., and Broderick A. 2005). While the marketing concept, more often than not, has always focused on consumer needs, the practice of IMC has truly provided the first major effort to really put the customer in the centre of firm’s marketing activities ; and even (some marketing authors would agree) to a large extent, has defined successful businesses.

That being the case, the need for Integrated Marketing Communication is not only needed, but critical to marketing success (Wirth, R. 2005). No doubt, it is viewed as a response tool to communication challenges facing today’s organizations.

More encompassing than advertising, IMC weaves together a broad array of traditional and innovative communication tools and techniques in highly coordinated customer-focused programs . But then, with all the accolade given to IMC, organisations world wide have not had it easy to embrace (Pettegrew 2000); an issue also explore in this report.

Definition

The dawn of the 21st century has seen the definition of IMC changed (Schultz and Kitchen 2000) . Previously, IMC was thought as a concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a number of communication disciplines (for example, general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency and maximum communication impact.

Today, IMC is considered as a strategic business process used to plan, develop, execute and evaluate coordinated measurable, persuasive brand communication programs over time with consumers, prospects, and other targeted, relevant external and internal audiences (Schultz and Kitchen 2000).

The management process associated with the strategic development and dialogue of consistent, coordinated messages, would seek to reinforce core brand propositions that able to be perceived by stakeholders (Chris Fill 2002, p. 465). It means that your PR materials say the same things as your direct mail campaign and your advertising has the same ‘look and feel’ as your website (Kotler et al 2002).

That is to say getting all the horses pulling in the same direction; everything you do publicly should look, feel, and sound as though it is spoken by the same unmistakable organization. Your ads and brochures, your logo and TV commercials, your packaging and point-of-purchase materials, your store front, should share a singular look, feel, and tone of voice .

More so, it is not just a matter of transmitting uniform marketing communications, it is about blending internal and external messages so that there is a clarity, consistency and reinforcement of the organisation’s or brand’s ‘core position'(Chris Fill 2002).

All elements of the promotion mix should be coordinated and systematically planned to complement each other (Pickton & Masterson 2004, p. 240). Promotion mix, also known as marketing communication mix, consists of five major modes of communication including; advertising, sales promotion, public relations, personal selling and direct marketing (Armstrong & Kotler 2004) use for IMC. Every brand contact delivers an impression that can strengthen or weaken a customer’s view of the company.

However, Pickton and Broderick (2005) caution that “integration should not be taken to imply a uniformity of communications which many authors seem to suggest (p. 26)”. More than one creative treatment-message or image may be used, but where more than a single treatment is employed, they should be mutually consistent (Pickton and Broderick 2005).

IMC in Action Examples:

Haagen-Dazs Case

Haagen-Dazs demonstrated effective use of IMC when it entered the UK market. Ice-cream was traditionally a seasonal children’s food and the market had experience little growth or innovation. The business strategy adopted was to create a new market segment, one that has become referred as the super premium segment.

The positioning intention was to present Haagen-Dazs as a luxury, fashion orientated food for adults. To achieve the business goal, the entire marketing mix was strategically coordinated:

The product reflected high quality, the high price induced perceived quality and distribution was through up-market restaurants in prestige locations and five star hotels where Haagen-Dazs was the only branded ice-cream on the menu. The promotional campaign used celebrities from many works of life as opinion leaders to create a word of mouth ripple effect. The quality of the media used and messages themselves reflected the same quality theme.

Concern Case

Concern , an international relief and development charity, was experiencing a fall in revenue and facing challenging market conditions coupled with a historic lack of investment in marketing. The charity faced up to these difficulties, employing a hard-hitting integrated marketing communications plan that exceeded expectations. The five-year strategy is not yet complete. However, it has already turned the charity’s performance around and resulted in a cultural shift in favour of a long-term approach to donor management

Concern, along with its competitors, experienced rapid growth during the early 1990s and was able to extend fund raising operations into the UK, with offices in Belfast, Glasgow and London, and into the US via an affiliate operation. Concern restored brand positioning in the Irish third world charity market. The main competitor is Trocaire

The charity’s challenge

Most of Concern’s expansion was founded on emergency appeals in response to large-scale humanitarian disasters in Rwanda and Somalia. Although their event-driven fundraising was highly effective, their reliance on this method of generating income had three serious consequences for the charity. The first was that income fluctuated rapidly. The second was that a funding crisis developed as these major events faded from view and public consciousness.

Concern’s income 1991-1999

The third consequence was a failure to invest in the marketing function in general or activity that didn’t show an immediate pay back. The lack of investment in customer relationship management (CRM) activity left the charity vulnerable to fluctuations in market conditions.

Marketing strategy was fragmented across different offices. Existing budgets failed to achieve a real impact in UK markets or take advantage where potential economies of scale existed. Direct mail and press advertisements had achieved little success in recruiting new donors, except where the call to action was a high urgency, emergency appeal.

By the mid-1990s Concern found itself facing increasing competitor activity which eroded its market share and reduced brand awareness. Income was falling and the marketing department was not in a good position to respond.

Clear objectives were set….

After much internal debate, the following objectives were agreed by the senior management team:

  • Fundraising net contribution to be doubled to million by 2003
  • Long-term funding to be developed, especially regular donations using monthly standing orders or direct debits from million in 1999 to million by 2004 (increasing overall contribution to revenue from 10 per cent to 20 per cent)
  • To exploit Concern’s traditional ability to raise funds for emergency appeals and then convert donors to long-term regular giving
  • To regain leadership in the Irish market
  • To improve positioning in the British marketplace

The targets were felt to be ambitious and the likelihood of achieving them was viewed with considerable scepticism. Having assessed a range of options, direct marketing was felt to offer the best hope of attaining all the goals. Tobin Aldrich was convinced direct marketing could deliver results for the charity, “The beauty of direct marketing is that the effectiveness of all activity can be directly and immediately measured. Direct marketing is particularly appropriate for charities that have to justify every penny they spend.” He was under pressure to achieve results quickly from the initial investment.

And the strategy was implemented…

A new team of marketing and fund raising professionals was recruited to ensure the necessary direct marketing skills were readily available in-house. A range of agencies offering specialist direct skills were evaluated. One was appointed to manage key aspects of campaign integration and creative and another to buy the media. The creative agency was briefed to produce new material that could be customised for local markets. The core propositions were Concern’s ability to deliver aid swiftly and efficiently, using operational staff on the ground.

Merging databases was a key step to take before the marketing approach could be properly integrated. Four marketing databases were combined into a new marketing information system. To make the most of the new information system, new procedures were also introduced to ensure donation and standing order processing could cope with new volumes. This attention to procedures paid dividends when responses started to come in better than anyone could have imagined. At one point standing orders numbered 11,000 in one month, from previous volumes of 200 per year!

Consistent with IMC practice, each activity was carefully monitored and evaluated and the learning points fed into future campaigns. A comprehensive Donor Lifetime Value model was developed. This model was used to forecast and manage future lifetime value by evaluating donors recruited from each source. Information about the best donor sources feeds back into donor recruitment strategy.

The new marketing team developed a fresh approach to donor recruitment. Initial donations were solicited in the form of a regular monthly gift for the first time. Concern decided not to engage in discrete brand building activity above the line as it was felt that direct marketing media would produce an uplift in brand awareness.

A rich mix of media was used and the campaign was fully integrated across the UK and Ireland. Each media had a target return on investment from recruited donors of 1:1 in the first year, rising to 4:1 by the fifth year. The packs, inserts and advertisements featured topical and hard-hitting messages coupled with a clear response device. A consistent message appeared across all media during the generic fundraising campaigns.

Direct mail packs were developed for specific emergency appeals. The Afghanistan campaign featured packs for high and normal value donors. The packs updated donors about the situation in Afghanistan using a letter, a clever e-mail-like insert, a programme update memo and photographs of individual families to bring the appeal to life. A simple donation slip and reply paid envelope completed the pack.

The appeal pack followed classic direct marketing principles and imparted emotive information in a straightforward way. The appeal for money is kept reasonably low key as the news speaks for itself. The letter’s opening paragraph acknowledges the donors status as a supporter and interested party. The simplicity of the pack, using cheap, typed inserts, is in keeping with the charities image. The non-donor or normal donor pack uses cheaper materials, fewer inserts and solicits a direct debit. The letter is slightly stronger in tone.

Exploiting the potential of rapid response media

The performance award judges praised Concern’s “impressive events-driven activity”, facilitated by their re-structuring of their marketing department and a fresh approach to their marketing challenges.

Appeal response capability was honed, allowing Concern’s appeal advertisements to achieve first appearance in the UK press and DRTV. Use of DRTV was refined to the point where Concern could air appeals within 48 hours of a disaster occurring. The development of two generic adverts that could be adapted to fit each circumstance, one for immediate disaster relief and the other for the recruitment of regular donors. DRTV is also considered to have had a major impact on brand awareness, following its use integrated with press and direct mail.

The results speak for themselves

All financial targets for the five-year plan, ending 2004, were achieved by end 2001. All investment has paid back within the first year. The charity has regained its leadership of the Republic of Ireland market and doubled its market share in the highly competitive UK market.

  • Fundraising income has increased from .8 million to million. Fundraising contribution was million against a target for 2003 of million.
  • The number of regular donors has risen from 8,000 to 95,000, resulting in a quintupling of regular donations to million. Regular donor income doubled to million in 2002 as the full value of monthly gifts was realised.
  • Brand awareness has improved across all markets, from 49 per cent in the Republic of Ireland in 1999 to 55 per cent in 2001.
  • Concern is now the dominant charity brand in Ireland, with 55 per cent spontaneous and 96 per cent prompted awareness. Market share in England, Wales and Scotland has doubled.
  • Donor recruitment is up, using an integrated approach across existing and new media. In one year 3 per cent of the population of Ireland were recruited as regular donors.
  • The return on investment for the first year was 1.5:1, with a 7:1 ROI over 5 years. Inserts, direct mail and press ads all returned 2:1, and DRTV produced an extraordinary 7:1 result over 5 years.
  • Rapid response capability of online and DRTV media were exploited, contributing to a dramatic increase in online income generation from ,000 in 1999 to ,000 by 2001.

Building on Success

Following the encouraging performance of early campaigns, donor recruitment targets have been increased from 2002. Concern is now able to roll out new creative approaches targeting specific age groups with much greater confidence. The team now have detailed knowledge of which media perform best and will potentially return the best lifetime value.

To build on the lead gained by their successful donor recruitment programme, continuous monitoring enables Concern to control attrition using a comprehensive welcome and ongoing donor care programme. This has succeeded in keeping attrition below 15 percent, against a forecast of 20 percent.

The charity embarked on an ambitious expansion programme while experiencing very difficult conditions. Interactive marketing’s potential has been imaginatively exploited to produce some amazing results. Concern’s approach has combined practicality with flair and originality.

IMC Models

Having understood what integrated marketing communication means, it is suitable to briefly recognise some of the models advanced by some writers in this area.

Steve Yastrow (2000) comes up with the following model; a model he thinks represents the popular IMC.

He states that although many companies claim to practice this model, it is more often implemented as a series of parallel, as opposed to integrated, marketing efforts.

Another problem with the use of this model as Yastrow recognizes; it still focuses largely on communication initiated by sellers, with much more energy spent talking rather than listening (2002, p. 2).

The school of thought championing a synergy of the marketing communication mix is captured by the following model from Kotler and Armstrong (2004).

The customer points of contact with any of the marketing communication mix should deliver a consistent, clear and compelling message (whether good or bad) about the company, its products and its brands (Kotler and Armstrong 2004).

Pickton and Broderick (2005) usher in a model, which they claim attempts to represent the entire framework of IMC.

Their IMC process model demonstrates how integrated marketing communications work from sender to receivers. They agree that, their model derives four basic elements of Schramm’s (one of the earlier communication theorists) communication model including sender, message, media and receiver. Against the backdrop that Schramm’s model was simplistic, Pickton and Broderick (2005) included the notion of marketing communication context that encapsulates the macro and the micro business environment within which communications take place.

They also include the notion of brand equity that involves the customer’s responses or behavioral attitudes as a result of interacting with the IMC process for a product brand. The t+1 element of the process explains that brand equity is created and varies over time and past responses to a marketing communication can influence subsequent process and the output of communication in time period +1.

The customer/audience relationship management and Image and brand management depicted from the aforementioned model, according to Pickton and Broderick, describe the key strategic tasks facing those responsible for implementing and managing the IMC process.

Hansted and Hemanth (1999) opinioned that Integrated Marketing Communications Model recommends the customer, not the product, at its core and incorporates an element of learning from customers into the marketing strategy. Learning from customers becomes a continuous effort, and companies need to conduct extensive research of current and potential customers in order to interpret this data accurately (Hansted and Hemanth 1999).

To this end, the authors advocate building a global database of marketing insights as well as the creation of local customer databases. When entering an emerging market, the global database should be used as a benchmark, while the local customer database should be used to facilitate developing marketing strategies that suit local conditions. The model is circular and evolves in six phases:

Phase one: Defining the business and the brand

Many industries have their own version of the Coke and Pepsi tale. The probability of a company successfully expanding into foreign markets depends largely on its ability to define the business and how willing it is to adapt to the needs of a given market. By defining a basic global understanding of the brand, a company can provide a broader platform for more effective communications and business practices. For example, Coca-Cola’s core competency is refreshment. The basic understanding of the brand being “refreshing” allows Coke to adapt its product portfolio to whatever is perceived as refreshing in a given market.

Phase two: Creating a global database of marketing insight

A global database is a tool that facilitates the strategic planning process prior to a company’s decision to enter a new market. With the application of database software, the global database is able to identify clusters of countries and customer segments of strategic importance. The global database is an information base that offers companies the ability to group countries and customer segments with similar needs by applying what has been learned from one country to other countries. Groupings might be done according to similarities in product usage, culture, religion, gross national product and geography.

Phase three: Local market research

When determining market appeal, companies often restrict themselves to statistical measures such as population size, net disposable income and purchasing power. While this might be an adequate method in countries with similar characteristics to the company’s country of origin, it is seldom satisfactory in emerging markets where cultural issues can have a significant impact on market potential. Consumer needs and buying abilities are often very different in emerging markets compared to existing markets.

Dell Computer Corporation is an excellent example of a company that had to think outside of its current marketing structure when entering an emerging market. In China, Dell quickly realized that it could not just replicate its usual direct model. The infrastructure and customer need was simply not present. Dell did not discount the strong Chinese market, however. Instead, Dell conducted a market analysis that led to the identification of a new customer segment, namely big corporations that were very interested in Dell’s services (Albright & Kunstel, 1999). Dell currently operates a very successful business in China.

Phase five: Building a local database after market entry

In emerging markets, the database can be critical in creating and sustaining a competitive advantage for multinational companies. Market conditions can change overnight as customer levels fluctuate when competitors introduce new products or adapt existing products to better suit customers’ needs. A database gives a company direct access to customers and enables the creation of learning partnerships.

This database of consumer knowledge can then be applied to strategic planning and product development. The aim should be to build customer loyalty among the most profitable customers. Ideally, a local database supplements the company’s continuous research of market trends. Combining research and database knowledge enables the company to keep ahead of the competition through qualitative and first-hand knowledge of market developments used to make strategic adjustments.

Phase six: Measurement and feedback

The Integrated Marketing Communications Model is circular in nature because the learning is continuous. In phase six, the company’s activities are measured against objectives set in phase four. The local database can be used to assess how relevant the company’s strategies are to the local customer base. This process is intended to preempt any negative surprises in the market and to mold strategies according to new insights. Finally, knowledge is then fed back into the global database to facilitate future operations in other markets. This is the basic thinking accompanying the Integrated Marketing Communications Model for Emerging Markets (Hansted K. and Hemanth G. 1999, p. 5).

Every tenet said so far indisputably acknowledge the importance of integrated marketing communications. What then are the benefits of IMC to an organization?

IMC Benefits

The most obvious benefit derived from the integration marketing communications is synergy (Pickton and Broderick 2005). In incorporating the various elements of the marketing communication mix, in a mutually supportive and enhancing way, the resulting output is more compelling than the simple sum of its parts (Pickton and Broderick 2005, p. 27).

BUPA’s (Pickton and Broderick 2005) recent marketing strategy repositioned its brand and integrated its offering. The core brand proposition – ‘BUPA the Personal Health Service’ – was promoted on TV, in press and radio advertising through direct marketing, sponsorship, PR and internal communications. BUPA’s prompted awareness of the brand currently stands at 97%.

Moreover, IMC can deliver competitive advantage through clearer positioning, and encourages coordinated brand development with internal and external participants (Chris Fill 2002). An argument also echoed by Pickton and Broderick depicted in their so-called 4Es and 4Cs of integrated marketing communications thus:

The 4Es of IMC include:

  • Enhancing- improve; augment; intensify.
  • Economical- least cost in the use of financial and other resources; not wasted.
  • Efficiency- doing things right; competent; Efficiency through reduction of duplication of effort; not wasteful.
  • Effective- doing the right things; producing the outcome required; not wasteful.

The 4Cs of IMC include:

  • Coherence- logically connected; firmly stuck together.
  • Consistency- not self-contradictory; in agreement, harmony, accord.
  • Continuity- Connected and consistent over time.
  • Complementary communications- producing a balanced whole; supportive communications.

The rationale of a company adopting IMC cannot be over emphasized: when an organization integrates, its communication and interactions become consistent, its reputation and image more distinct, and its customers more trustful. The organization builds integrity because it is seen as a whole, rather than as a collection of fragmented functional units. The foregoing is lucidly reiterated by Duane Sprague (2002) thus:

“IMC leverages every contact point and media impression, and maximizes impact by emphasizing a one-look, one-voice approach. IMC gives consistency to the customer shopping and ownership experience. Brand image and awareness are built faster because all planned messages are consistent, and the best media tools are used based on a strategic marketing plan, backed by research to guide the direction of the campaign “.

But then, the use of the promotional mix together could be counter productive at certain instance (Pickton and Broderick 2005). Consider a scenario where sales promotion activities can portray a cheap or value-for-money product with money-off coupons and discount offers whereas distribution and merchandising activity may attempt to show the product in a status or prestige context with a high value image. The ensuing confusion may result in reduced sales.

The Debate: IMC Implementation

Integrated marketing communications has altered advertising practices by broadening definitions of advertising, facilitating significant shifts in marketing communication and promotion budgets, increasing emphasis on accountability, and fostering demand for new and interactive communication technologies (Rust and Oliver 1994; Smith 1995). And it’s making some people in those businesses mad as hell because instead of dividing communications into several overlapping departments, organizations use one strategy for everything, making every communication consistent with one message and one strategy .

Hertha Kettler (2002) admits that few executives and managers world wide have taken the trouble to embrace IMC. “In a study of top management and marketing executives in large consumer companies”, Kettler explains, “indicated that over 70% theoretically favoured the concept of IMC…yet most of them did not buy the IMC package services, preferring to put together different specialised agencies by themselves”.

One of the fundamental problems implementing IMC as Sprague (2004) would identify is the aspect of getting every employee in every department to work, plan and think together as a team. It is the separate and distinct territories that destroy integration, consistency, pro-activity, real branding ability, and solid customer service and retention (Sprague 2004).

This is due to the fact that the theory of IMC fails to take into account the way most corporations are structured and function or their unique culture . Manfred Bruhn (1997), in his own rights, lashes out: most IMC approaches concentrate on the integration of external communications and thus are incomplete IMC, is doomed to fail if the employees are not included in the integration process, and if the external community is better informed than the internal community .

The greatest barrier to implementing IMC in a given company is the absence of direct support from the CEO (Pettegrew 2000). In the absence of CEO support, there is an operational threshold past which IMC cannot be fully or effectively adopted.

Many companies held up as exemplars of IMC, fail to uphold IMC standards on a company-wide basis as evidenced in an examination of Nike and Proctor & Gamble in 2002 revealing neither company had comprehensively or effectively integrated its many communications functions seamlessly or spoken to their stakeholders with one voice (Pettigrew 2002).

The question remains, how do great companies like these miss the IMC mark? The answer to this important question lies, to a great extent, in their respective organizational structures; both Nike and Procter & Gamble are marketing organizations, organized around product marketing (Pettegrew 2000).

There are three organizational issues that must be resolved before IMC can be implemented: marketing planning systems and basic marketing thinking, organizational structure, and capabilities and control. They believe that because functional specialists within an organization try to keep the various communications programs separate, they are a major hindrance to IMC implementation (Schultz, Tannenbaum and Lauterborn 1992).

One of the most apparent conceptual barriers is the lack of strategic objectives in communications planning; even though most communication functions or activities are planned and executed in a professional manner, they lack strategic vision and clear positioning at the corporate level (1997). Fully integrated marketing requires a very high level of clarity in the articulation of brand strategies; the more understood and clear a brand strategy is, the easier it is to get people from distant areas of the company to work from the same game plan (Yastrow 2000, p. 4).

Another cardinal problem in IMC implementation is: large companies employ several communication specialists to work under their brand managers (Kettler 2002). Each specialist knows little about the other communication tools. Also, they usually have outside favourite outside agencies and opposed turning responsibilities over to one super agency (Kettler 2002).

The analysis of the main barriers led to the definition of a number of requirements for IMC: Employees willing to cooperate in the field of communications; employees with a comprehensive understanding of the communication system and of integration; the full support of top management; strategic positioning and objectives; new methods for planning and analyzing communications activities; radical changes in the way communication functions are structured; new methods of budgeting applying integration principles (Bruhn 1997).

For IMC to be effective it must tear down the traditional departmental walls that create information silos and management fiefdoms; all departments must work together as a unified team to carry out the strategic plan in total unison -one aim, one mission, one message and one experience (Sprague 2004) . IMC must be designed around the people who have to make it work, and has to take account of the prevailing traditions, skills, resource availability and organisational constraints (McDonald 2003, p. 81)

Furthermore, for IMC to be a reality in a corporation, adoption must precede implementation; existing IMC theory gives considerably more emphasis to implementation than adoption of IMC (Pettegrew 2000). Something McDonald agrees: “although writings on IMC explain the problem, there is little practical help for organisations on how to solve it” (2003, p. 360).

There are more critical issues, such as the planning and management of IMC, the IMC mix and the communication process itself, which would have been explored if not of the limit imposed for this report. Nonetheless, the purpose of integrated marketing communications cannot be over emphasized. Having got exposed to the diverse and overwhelming literature on IMC, my understanding is a successful IMC is not a one-off event, rather a continuous, adaptive and sustainable process.

REFERENCE

Book

  • Fill, C. 2002, Marketing Communications Context, Strategies and Implementation, Prentice Hall.
  • Kotler, P. and Armstrong, G. 2004, Principles of Marketing, Pearson Higher Education.
  • Masterson, R. and Pickton, D. 2004, Marketing: An Introduction, pp. 240-244.
  • McDonald, M. 2003, Marketing Plans: How to Prepare them, How to Use them, Butterworth-Heine-mann.
  • Pickton, D. and Broderick, A. 2005, Integrated Marketing Communications, Prentice Hall.
  • Schultz, D. E., Tannenbaum, S. I. and Lauterborn, R. F. 1993, Integrated Marketing Communications: Pulling it together and making it work. Chicago: NTC Business Books.
  • Smith, J. 1995, Integrated Marketing, Marketing Tools (November/December), pp. 63-67.

Journal

  • Bruhn, M. 1997, ‘Integrated Marketing Communications: A German Perspective’, Journal of Integrated Marketing Communications, [Online], 1997-1998, Available: http://www.medill.nwu.edu/imc [2005].
  • Hansted, K. and Hemanth, G. 1999, ‘Integrated Marketing Communications: A Valuable Tool in Emerging Markets’, Journal of Integrated Marketing Communications, [Online], 1999-2000, pp. 1-6. Available: http://www.medill.nwu.edu/imc [2005].
  • Kettler, H. 2002, ‘Integrated Marketing Communications at Dow Chemical Company: IMC in Theory and Practice’, Journal of Integrated Marketing Communications, [Online], 2000-2001
  • Pettegrew, L. 2000, ‘If IMC is So Good. Why Isn’t It Being Implemented? Barriers to IMC Adoption in Corporate America’, Journal of Integrated Marketing Communications, [Online], 2000-2001, Available: http://www.medill.nwu.edu/imc [2005].
  • Rust, T. and Oliver R. (1994), ‘The Death of Advertising’, Journal of Advertising, 23(4), 71-78.
  • Yastrow, S. 2000, ‘Fully Integrated Marketing’, Journal of Integrated Marketing Communication, [Online], Available: http://www.medill.nwu.edu/imc [2005].

World Wide Web

  • Johnson Hill Communication. 2000, ‘Integrated Marketing Communications Portfolio’, [Online], Available: http://www.johnsonhillcomm.com/portfol2.html [2000].
  • Pickton, D. and Broderick, A, 2005, ‘Integrated marketing Communications’, [Online], Available: http://www.pearsoned.co.uk/highereducation/resources/picktonbroderickintegratedmarketingcommunications2e [2005].
  • Sprague, D. 2004, ‘Integrated Marketing Communication… Your Competitive Advantage’, [Online], Available: http://www.dunningsprague.com/articles/im.htm [2004].
  • ‘The Role of Integrated Marketing Communication on the Internet’, [Online] Available: http://ciadvertising.org/student_account/summer_01/kazues/project/IMC.htm
  • Wirth, R. 2005, ‘Integrated Marketing Communications’, [Online], Available: http://www.entarga.com/mktgplan/imc.htm

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Berkley’s Integrated Marketing Communications plan

The integrated marketing communication plan for Berkley needs to take into consideration the best communication tools that will maximize public awareness and lead to improved enrolment. We will examine the different communication tools or promotional mix and see how germane each will be in providing an optimal enrolment response. Each marketing tool should embrace the AIDA model: get Attention, promote Interest, engender Desire and stir Action to enrol at Berkley. Firstly, Berkley should use advertising: this is the act of using paid representation, especially in the media, to promote ideas, goods or services to a target market. Advertising can be immensely effective in the process of informing, reminding and persuading perspective students that Berkley is the ideal institution for them. Advertising on Television can be effective but expensive. Ideally, the advertisement should run during prime time or during the broadcast of special sporting events when viewership is at its peak.

The downside of using advertisement is that this may call for a large budget and viewers often want to skip advertisements when watching a program. Advertisement may also be placed in specific newspapers with high circulation. However, we have recently seen cases of newspaper going out of business because of the recent downturn in the economy. Advertisement in Magazines can reach a target market segment but has its limitation in terms of widespread publicity. Advertisement on the internet or in directories can be the most cost effective and potentially reach a worldwide market. A great website by Berkley may boost student enrolment since data on the institution and the necessary application forms online will help students to quickly enrol. Online competition from other universities may mitigate enrolment response. Berkley may also use Sales Promotion to encourage enrolment. This refers to the process of using a communication tool such as discounts and enrolment fairs to increase public awareness sales. It may be directed at high schools within the state or nationwide. Berkley would provide the necessary promotional items to be displayed on public notice boards at these schools.  Sales promotion has its limitation in that it can also be expensive to print promotional materials and do follow up work. Public relation is another way to improve enrolment.

This refers to the process of leveraging and controlling attractive information directed at the public at large. Berkley may use media briefing. The media would run stories of Berkley’s great record of providing excellent academic services. The downside of using this approach is that some members of the target audience will be sceptical of the positive “spin” of the data put forward and not enrol. Finally, Berkley may use personal selling to enhance student enrolment.  This refers to the process of using face-to-face communication to get attention, generate interest, provoke desire and finally encourage the target market to take decisive action to acquire the product. The company may utilize events such as career fairs at high schools and similar events to deliver effective offers to prospective students. The public then has the ability to seek immediate clarity, additional information and be guided by a knowledgeable representative to accept Berkley’s offer. Many persons are very comfortable to speak with a “live” person and Berkley’s personnel get the chance to build a relationship that could translate into actual enrolment. Personal Selling can only reach a limited market without attracting high costs. My advice would be to deploy a promotional mix of the tools and this will definitely improve enrolment.

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Integrated Marketing Communication Decisions PA / Walmart

Walmart are strategically a low cost strategy store to attract customer. But this is not enough as they have to contend with fierce competition from rivals like Target and K-Mart. In order to survive, Walmart has set up a very competitive marketing and communication strategy that is integrative and distinctive from all the other market competitors. (Barwise & Meehan, 2004).

Wal-Mart’s Marketing Communication Strategy

The Walmart marketing communicative strategy is keenly built around the company’s low cost strategy. Unlike its competitors, Walmart does not concentrate its marketing communication strategy to issues like hygiene in store, aesthetics and quick service. Walmart is instead keen on marketing communication around daily prices and advertisements mixed with wide product choices. Wal-Mart’s budget on communication marketing is just 0.3% of its revenue as compared to its closest rival at 2.3% as a further testimony of cost leadership in marketing communications. (Barwise & Meehan, 2004)

Level of Integrated Approach in the communication

The level of integrated marketing communication at Wal-Mart is centred on six communication firms. These firms carry out a lot of campaigns and modern advertisement. The advertising firms carry out one advertisement per store. Walmart sticks to this marketing communication strategy perennially. Unlike their competitors, Walmart does to invest in dimensional advertising.  They prefer to use conventional approaches. Walmart also keen on image branding as one of their integrated communication approach. Walmart partners with many product firms to print their brand name and enhance visibility. (Barwise & Meehan, 2004)

Walmart is aggressive in communicating to the customer that their store products are easy to return when they are not satisfied. The store workforce also helps the customers in knowledge of products that they are about to purchase. Walmart is good at advertising products is stock so that they boost sales. Other than their brand name, Walmart communicates to the customers that their store locations are convenient for their uses as well as fun to shop at. The Walmart store layout give a communication to the customers that it is an easy to shop destination. The Walmart shopping atmosphere is friendly and fairly well maintained. (Drbul, 2003).

Promotional Tools used by Walmart

Promotional tools used by Walmart for distinctive communication include discounts store, sponsorship of events, educational bursaries, collaboration with leading product firms, among others. This socio-communication process is done in an ethical manner.  Walmart have a promotional motto that says “if it works for our customers, then it’s working for us.”

The promotion of Walmart products is aimed at visibility in less than 3 seconds. Wal-Mart uses IT tools to manage efficiency in their stores. This Radio Frequency Identification tool allows the consumers to pay more attention to the products and increase satisfaction and dazzle. Wal-Mart uses packaging as a tool that targets specific consumer demographics. (Wilk, 2007)

Wal-Mart uses private labels as a tool to promote the sale of their products. This strategy has been in place since 1991 and consumers are easily identifying with these private labels. (Wilk, 2007). The labels have been designed to communicate product appeal, differentiation and consumer needs. Some Wal-Mart labels appeal to low cost customers while others identify with the expensive consumers. When the consumers’ behaviour changes over time, so will be the case for Wal-Mart promotional tools.  Wal-Mart does this by innovative strategies that enable it to go ahead with the cost leadership and competitive advantage. (Wilk, 2007)

Conclusion: How other main topics discussed this week apply to Walmart

This weeks other main topics discussed were marketing communication mix, changing communication environment, effective communication and marketing communication ethics. Al these are applicable to Walmart in a strategic integration manner that has seen Walmart remain as the leading retail store in an industry that has stiff advertisement and communication players.

Walmart uses communication mix to reach differentiated demographics. Walmart is adaptive to changing communication environment hence carry out one advert per store. They perceive that on big marketing communication may not be applicable to all stores. Walmart uses effective communication and marketing to dazzle consumers and maintain their loyalty along ethical environments. They avoid unethical marketing communications that target minors as this practice is unethical.

References

Barwise, P. & Meehan, S. (2004). Bullseye: Target Cheap Chic Strategy. Harvard

Business School. Retrieved on April 9th, 2009, available at http://hbswk.hbs.edu/archive/4319.html

Drbul, R. S., (2003). Target Corporation: Review of Retail Seminar Presentation.

            Lehman Brothers.

Wilk, D. (2007). Labels, A crucial Sale Promotional Tool. Ezine Articles. Retrieved

on April 9th, 2009, available at http://ezinearticles.com/?Labels—A-Crucial-Sales-Promotional-Tool&id=705878

 

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Integrated marketing communication proposal

Table of contents

In this paper I will analyze the marketing plan of Research In Motion (RIM), which is one of the most recognizable players within the smartphone industry due to its BlackBerry brand, which captured the world’s attention. From the analysis, we can extract the current position of the company and how it should proceed through its future.

2. Marketing Plan

2. 1. Marketing Plan

Objectives

2. 1. 1. Brand Definition and Current Position

BlackBerry is the first handset which has the capability of allowing users to send emails from it. The technology was spawned and presented to the world by a Canadian company named Research In Motion (RIM).

The innovation was considered a huge milestone in the history of cell-phones and the market loved it. It was first launched to the public in 1998. This high end handheld gadget quickly became a new trend within the community, especially business communities. Executives, consultants on Wall Street are loving the presence of this new trend. Even though business society is the main generator of this BlackBerry trend, the trend is not actually constrained within that realm. BlackBerry also made social connections easier and more exciting. The brand ‘BlackBerry’ is still in the air today.

It has been around for a decade in competition with many other high-end gadgets and it is quite able to maintain its superiority within the market. In 2005 alone, the brand has been sold 2 million handsets and the company. RIM is now handling half of its wireless business emails. The largest rate of growth for the product is actually in the European regions, but both US and Europe’s markets provided great support for the growth of RIM and the brand BlackBerry itself, by buying and subscribing for millions of BlackBerry and its features each year. Reports revealed that the first quarter of 2008 saw that BlackBerry has taken 44.

5% of the US market, which is an incredible increase from 25. 1% in the previous quarter. However, several articles and market trend reports, reveals that there are doubts regarding the future position of the brand. Considering the comeback of many competitors, including Nokia’s iPhone, PALM and Motorola, some people are betting that BlackBerry will soon be outmarketed by one of its competitors, just as BlackBerry outsold iPhone. There are many factors that influence the sales of these high end handheld devices, but the two factors that are currently most influential are: innovations and market recognition. In this paper we will discuss how to increase brand market recognition and sales by developing brand marketing program (Regan, 2006).

2. 1. 2. Objectives

Despite its current achievements in its markets, the brand BlackBerry and the company Research In Motion is not on an endless street of success. As mentioned previously, competitors are striving hard to maintain competitiveness against the brand. Microsoft, Apple, Palm and other string brands are targeting the same target markets as BlackBerry, aiming customer that want more than just e-mail phone.

Thus, it is important for RIM to stay ahead of the market trend by developing its features. Therefore, the marketing strategy should be aimed at helping RIM maintain superiority in the market. In the US and Europe market, the brand is already well recognized for having millions of loyal customers. Outside these regions however, there are still minimum recognition regarding the features of the product. In most places outside US and Europe, the product is considered too expensive because there is a weak understanding toward the system and its workings.

In order to secure cash inflow and the future development of the brand, it is important for the company to expand their market reach into markets that are less familiar with the product. In addition, the company must also have a strategy to retain the satisfaction level of its current customers.

2. 1. 3. Methods

Innovation is the most powerful strategy for the brand because it was also the cause of how the brand obtains its leadership position today. The market was previously led by i-Phone, but as the market for i-Phone dimmed, BlackBerry took the leadership position according to sales.

BlackBerry should not rely on its current feature because other companies can steal the leadership position by developing a brand new feature. Other methods however, is to develop a promotional program for the product. This program works better in foreign markets rather than aggressive advertising that usually chosen by marketers.

2. 2. Role of Advertising and Promotion

Advertising and promotion is an important tool to reach high levels of marketability. By means of advertising and promotion, products can change from unknown in one market into the dominant brand. This is what happened with BlackBerry in United States since from 1998 to 2009.

The product has grown from an unknown device into the new gadget that America has falling in love with. Those are all generated by the hard work of advertising and promotional department in RIM, for example, by delivering a consumer marketing campaign. Therefore, the brand would need another series of marketing plan in order to maintain BlackBerry’s success in the market.

2. 3. Competitive Analysis

The largest competitor for BlackBerry is the iPhone. In June 2008, BlackBerry have outsold i-Phone by far, strengthening the opinion that i-Phone is already a thing of the past due to BlackBerry’s marketing campaign.

Nevertheless, Apple has designed a new breed of iPhones, called i-Phone 2. 0, which is expected to bring positive effect’s on Apple’s sales number. Experts and observers are still developing forecasts about how BlackBerry will maintain its current leadership facing i-Phone. It would be a real test to RIM and BlackBerry. In reality, brand name alone cannot guarantee customer satisfaction. Any cellular company and cellular provider must have the capability of ensuring that the product is satisfying in nature. Without this ability, the brand name will never last the year.

According to available articles, it is revealed that BlackBerry has its advantages, but also has its problems. Some of which will be described within this sub-chapter. People believe that BlackBerry devices are reliable because they are the first in the industry that come up with the idea of a mobile phone who can sell emails. This feature however, is no longer a distinct feature today as many other brands have similar offer. Some claim, that other brands might have just done it better than BlackBerry itself. For example, the Windows Mobile Smartphone is considered a hard rival of BlackBerry’s because of its reliability.

Another aspect that is considered the strength of BlackBerry is its safety. Today however, security is no longer RIM’s own strength. Microsoft has the same security features in Exchange ActiveSync and their Windows Mobile (Meissner, 2008). The world of devices has also expanded with Apple’s i-Phone, Google’s Android / Open Handset Alliance devices, S60 and Windows Mobile. Most of these brands are reputable brands having a competitive feature of their own. For example, the I-Phone is doing extremely well in the consumer market, especially with the presence of Exchange ActiveSync.

Windows mobile devices also has better support for 3rd party applications compare to BlackBerry devices and their e-mail implementation. Using the Windows mobile will allow users to access Internet Explorer mobile which is better that BlackBerry wed browser. BlackBerry on the other hand, has its powers in the enterprise market, but it is also indirectly helped Microsoft to implement its Exchange Active Sync solution (Murphy, 2005). In addition, concerning the competitive analysis, there are several points of comparison between RIM’s BlackBerry and its one challenger, Apple’s iPhone:

  • BlackBerry still lead in email application over the mobile phone Strong focus on developing the corporate applications, email, has put BlackBerry ahead from iPhone for consumers who send a lot of emails everyday. Some of these consumers simply think that the BlackBerry is ‘quite enough’ to fulfill their communication.
  • BlackBerry is faster The simpler features, which developed on Java applications, it is easier and faster for the BlackBerry’s customers to pick and choose which folders to sync.  iPhone has better screen and typing device.
  • Some of the consumers find the QWERTY keyboard on the BlackBerry to be good, but the iPhone typing pad is better. Even, the challenging model of BlackBerry Storm, which also uses the touch screen, is not comparable with iPhone.
  • iPhone is ahead in providing multiple features. Consumers enjoy iPhone’s web browsing device, iPhone’s calendar’s list view, etc, which makes it ahead over BlackBerry in some points
  • BlackBerry has a longer battery life The push mail application has provided another advantage for BlackBerry as the battery lifetime is longer than iPhone. (Nadkarni, 2007; Murphy, 2005)

2. 4. Environmental Influences

The brand is naturally affected by many aspects of the society, including social aspects, economical aspects, political aspects, etc. However, the noteworthy aspect which is influencing the smartphone market is actually the credit crunch which has been going on for several years in the United States. As reported in an article, US economic slowdown has generated a decrease in IT spending for most companies in the country. This could have a notable effect on the effectiveness of BlackBerry’s marketing dollar, considering that the BlackBerry market is flooded with cheaper substitutions (Carton, 2007).

3. Promotional Program Situation

3. 1. Internal Analysis

The company is known for its innovation capability due to the production of BlackBerry. Nevertheless, experts are still waiting whether the company is going to turn out as another one time wonder hit or will it continue its pace into the world of innovation. The company is also known for its aggressive marketing campaign which is stated to ‘allow too much money on the business for it to go bad’. These two characteristics, innovation and aggressive marketing campaign are the pillars that determined RIM’s success in the future.

3. 1. 1. Existing Promotional Strategy

BlackBerry is the first handheld device that allows users to send emails instantly. This is the core of RIM’s marketing campaign which purpose is to lead customers toward buying the most trustworthy device due to RIM’s experience. Despite the legal turmoil, RIM are not slowing down its investment in its CRM strategies. Furthermore, being a knack in the communication technology itself, managing the marketing campaign is considered to be much easier for the company.

3. 1. 2. Corporation’s Future Capabilities

BlackBerry has traveled around the globe through as far as Indonesia in South East Asia and may be further. Nevertheless, its marketing campaign is not yet reaching a lot of people in new regions, apart from people which are living in the highest level of the region’s social strata. I believe that RIM can achieve much more success once its sets its mind into developing its presence in these newer markets. To attract not only the highest class, but also middle level workers which are already financially capable for the device and also the trend-sensitive people within the society.

3. 2. External Analysis

The company faced a number of legal problems due to its patent ownership issue, as well as its relationship with other communication providers. Experts indicated that such a legal proceeding will take too much time and resources that it would have some level of impact on corporate marketing plans. In reality however, the company does not mention any obstacles in terms of its marketing strategy implementation. Other issues that should be considered might be copycats, substitutions, competition and trend development (Pritchard, 2006).

3. 2. 1. Consumer Behavior

Articles revealed that the people of America are falling in love with the handheld device that can send emails. The same could more and less be said for Europe and the rest of the world. This is caused by several motivations, which are social in nature and professional ones. In other words, people could be buying the device because of social motivations like recognition, popularity, trend, and also for professional reasons like connecting with business partners, managing projects from remote locations, etc.

In both situations, market analysts indicated that BlackBerry’s brand name as the first handset that allows people to email added by its attractive designs, will maintain RIM’s name in the top of the sales chart for a several years.

3. 2. 2. Market Segmentation

RIM targeted several target markets, but the market segment that is proven to deliver a significant contribution to RIM’s revenues is the business segment. BlackBerry is mostly sued by professionals who are in need of the features offered by the device.

Nevertheless, lately it has also been identified that RIM has significant threats developing within that particular segment. Business people are needing more features that simply sending and receiving emails. They sometimes want to check inventories and run several types of applications within the device. Market surveys reported that other brands, like Microsoft for example, has been developing more features like those, in a faster pace than RIM. Thus, it is suggested that RIM re align its segmentation strategy to include this threat and how the company will overcome it.

3. 2. 3. Market Positioning

In terms of market positioning on the other hand, RIM has been facing some problem with its current position in the market. In spite of its success and market recognition, the company is facing heavy competition and legal threats from various parties. Stock analysis indicated that some are starting to cash-in their investment from RIM due to these issues and on the contrary, stock prices for Microsoft enhanced after the announcement of a legal issue. If the company needs to maintain is superiority within that position, than it must realigned its positioning strategy to include plans that will address the issues promptly.

3. 3. Budget Determination

The budget of promotion for BlackBerry is determined by the portion of the company’s revenue in which in 1008 fiscal year, the company booked total revenue at $6. 01. Assuming the budget of promotion sit at 2% of total revenue, therefore, the 2009 promotion budget would be $150 million (MNM Media, 2008). The proposed promotional budget of BlackBerry is set 2% since there are no exact amounts of advertising budget as percentage of sales revenue.

By assuming that in 2009, retail activities becomes main concerns of Research in Motion (RIM), as mentioned by Jim Balsillie (CEO of RIM), therefore the amount is considerably acceptable (MNM Media, 2008). Table 1 Budget of Promotion for RIM’s BlackBerry No. Items Budget 1 Revenue of Research in Motion in 2008 fiscal year US$6. 01 billions 2 Budget for marketing efforts per annum (of gross sales) 2% Total US$ 150millions Source: MNM Media, 2008

4. Develop Integrated Marketing Communications

Placing advertisings in several media such as television and online media is part of initiatives of integrated marketing communication.

The word “integrated” refers to a company’s program to deliver the promotional messages in similar tone so that in every media the promotion still conveys the same message to ensure the effectiveness of promotion initiatives. In order to provide effective promotion, Research in Motion should pay take into account the consumers’ culture and behavior since they become influential elements in marketing communications (Pennington 2005).

Advertising

Basically, advertising composes of several activities including print, online, radio, and TV. In order to have an effective advertising strategy, Research in Motion can deliver promotional messages that are valued the most by the target market. The success of BlackBerry cannot be separated from their capability to address the market demands for powerful smartphones. One key success factor of BlackBerry is the capability to offer features that corporate user needs the most, electronic mail (e-mail). Coupled with other data communication features, BlackBerry becomes mobile phones that support the data transfer like internet browsing, facsimile, and electronic browsing conveniently.

Figure 1 BlackBerry Three Models (Pearl, 8800 series, Curve) Source: http://na. BlackBerry. com/eng/devices/ The advertising that Research in Motion does for their BlackBerry handset had better mention the advantages of BlackBerry over the other smartphone and PDA handhelds. Basically, these applications are supported by some handhelds or PDAs (personal digital assistants). However, lack of network support towards various mobile phones brands to deal with data communication causes slow adoption of data communications over mobile phones. The unmatched benefits of BlackBerry handhelds has generated the distinctive value proposition for BlackBerry as the leading smart phone for business users and professionals since the java-based applications that BlackBerry created support many business applications including enterprise system.

This particular benefit should be exposed into the public so they are aware of the advantages of using BlackBerry than other type of mobile phones. Some benefits that can be exposed in the advertising are:

  1. Provides 10 email accounts, which is created over Web Client Access.
  2. Every client who becomes BlackBerry subscribers will have email account with mailbox capacity of 10 Mb in addition to their personal emails (corporate email or free web-based email like Yahoo! or Gmail from Google)
  3. Support POP3 / IMAP functions.

3. 3 Public Relations

By definition, public relations (PR) are any activities that aim at managing communications between a company and its key public in order to generate appropriate image about the company. However, in IMC concept, PR also moves towards marketing.

The idea of relationship marketing is a new form of public relation activity that has marketing nuances. Public relation is therefore related to any efforts to broadcast the corporate and product image in the public. Figure 3 shows an example of public relations of BlackBerry new model launching by conducting fashion show. It is somewhat similar to Mercedes Benz fashion week in which the high class fashion is considered to represent the high class and quality of Mercedes Benz. Figure 3 BlackBerry and fashion Show

3. 4 Sales promotion

Basically, sales promotions are non-personal promotional activities that intend to have direct impact on sales of a product. Some activities that are in the sales promotion category include media and non-media marketing communication, increase consumers demand, and improve product availability. Some issues in the developments of BlackBerry design can be considered and placed in any sales promotion as tagline, which derived from the value propositions that are considered to be the determining factor of BlackBerry’s success, which mainly due to the strong focus on email application.

Many business analysts on the internet believe that the strongest factor that determines BlackBerry’s success is its confident focus on a single, compelling value proposition, which is the electronic mail (e-mail). Instead of developing the general PDA phone that provide general benefits, RIM avoid committing such wasting time efforts by focus on developing e-mail related applications since they understand the need of corporate users is email. RIM realizes that the product, even with its –comparatively- few features, has certain ‘chemistry’ with corporate users, to whom emails are very much important. The value proposition of BlackBerry perfectly fills the niche exists within the corporate users and adding up more features does not guarantee a stronger chemistry (Nadkarni, 2007).

Works Cited

  1. Apple Inc. “Revolutionary Phone. ” 2008. 25 March 2009 <http://www. apple. com/iphone/features/index. html#phone> Carton, Paul. “Weaker Growth in Corporate IT Spending: BlackBerry and iPhone Gain Market Share. ”
  2. Seeking Alpha. Cohen, Joyce. “Armed With Right Cellphone, Anyone Can Be a Journalist. ” 2005. New York Times, pg. C. 3
  3. Roughly Drafter Magazine. “iPhone Grabs 27% of US Smartphone Market. ” 2007. 24 March 2009 <www. roughlydrafted. com/2007/11/ 21/iphone-grabs-27-of-us-smartphone-market/>
  4. Johnson, Rick. “Value propositions and Competitive Advantage’. 2008. Hotel Industry News. 25 March 2009 <www. hotelnewsresource. com/article31750. html>
  5. Mace, Michael. “The Myth of the Smartphone Market. ” 2006. 26 March 2009 <www. marshall. usc. edu/assets/006/5567. pdf> MNM Media. “RIM Posts $6 billion revenue for fiscal 2008. ” 2008.
  6. 24 March 2009 <http://www. electronista. com/articles/08/04/02/rim. posts. large. profits/> Murphy, Victoria. “Out Front, BlackBerry Jam. ” 2005. Forbes.
  7. Nadkarni, Shirish. “How RIM Nailed its Value Proposition with BlackBerry. ” 2007. MochaTalk. 24 March 2009. <blog. livemocha. com/2007/04/01/ how-rim-nailed-its-value-proposition-with-BlackBerry/>
  8. Pritchard, Stephen. “The Trouble’s Not Over for BlackBerry. ” 2006. Independent. Regan, Keith. “Search for BlackBerry Alternatives May Accelerate Nest Technology. ” 2006. Seeking Alpha.

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Integrated Marketing Communication: Overview

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Integrated Marketing Communications Plan

INTEGRATED MARKETING COMMUNICATIONS PLAN A. ADVERTISING Advertising refers to the paid promotion of goods and services through a sponsoring organization or company. While marketing has the objective to choose markets that have the capacity to purchase a product,  advertising, on the other hand, is the paid communication through which relevant information about the product is […]

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