Chapter 5+ Holistic Framework + IMC + Fixation On Price Flashcards
Different marketing formats
- advertising
- sales promotion
- public relations
- events and experimental marketing
- direc and interactive marketing
- WOM
- personal selling
Integrated marketing communications
Marketing communication tools
For a successful IMC campaign 4 components
- integration scope
- integration strategy
- integration modes
- organisational support process
Integration scope
the scale at which IMC is implemented at a tactical (short term), functional (long term) or strategic level (cross functional).
Integration strategy
Defining and understanding target audience, managing organisational message sources, and leveraging media channel effectively
Integration modes
- communication consistency, coherent messages
- communication customisation, tailoring messages to specific segment
- communication interactivity, two dialogue between brand and audience
Organisational support process
Internal mechanism such as cross functional coordination, customer database, management support
IMC outcomes
- tactical, short term outcomes such as consumer responses
- Intermediate, mig range outcomes like customer info, knowledge, satisfaction
- Strategic, long term, like increased market share, brand equity, profitability
Strategic social media marketing
Comprehensive approach how strategic social media marketing can guide organisation
4 dimensions of SMM social media marketing
- Scope (defenders vs. Explorers)
- Culture (conservatism vs. Modernism)
- Structure (hierarchies vs. Network)
- Governance (autocracy vs. Anarchy)
- Scope
- Defenders use social media for one-way communication
- Explorers engage interactively with various stakeholders
- Culture
- Conservatism companies control their messaging
- Modernism embrace transparency, flexibility, openess
- Structure
- Hierarchies, centralised control
- Networks, encourage employee participation, boosting responsiveness and creativity
- Governance
- Autocracy, strict guidelines governance limits employee freedom
- Anarchy, balance control with autonomy, empowering employees to engage freely with customers while maintaining professionalism
4 pricing stratégie to shift focus from price
- Use price structure to clarify your advantage
- Wilful overpriced to stimulate curiosity
- Partition prices to highlight over looked benefits
- Equalise price points to enhance personal relevance
- Use price structure to clarify your advantage
Aligning pricing with key value proposition.
-> effective when customers struggle to see the value of a product compared to competitors, commoditised markets where differentiation is unclear.
- Wilful overpriced to stimulate curiosity
Companies set prices higher than expected to make customers curious about the products added value.
-> useful in luxury market or when launching innovative products, high quality or exclusivity products
- Partition prices to highlight overlooked benefits
Breaking down a price into components to draw attention to specific features (Ryanair)
-> when a product has multiple features or benefit that customers might overlook. Often used in service industries or for complex product bundles
- Equalise price points to enhance personal relevance
Offering a uniform price across variants encourage customers to focus on which option best suits their needs, rather than price (IKEA)
-> effective when customers have different preferences but you want to avoid price-based competition.
Why does price matter?
- perception of value: price influence how customers perceive the value of the product
- competitive advantage: price strategy allows companies to differentiate themselves from competitors.
- profitability: price directly affects profit margins.
- market dynamics: price is a flexible tool in response to market conditions like competition, customer demand or cost changes allowing companies to adjust quickly
