Chapter 8 Flashcards
What is the integrated marketing communications (IMC)?
“The coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program that maximizes the impact on customers and other stakeholders at a minimal cost.”
What are the communication tools in the concept of IMC?
- Advertising,
- PR/Publicity
- Customer service
- Direct marketing
- Personal selling
- Sponsorship
- Digital/social media
- Sales/promotion
What is the main point of the concept of IMC?
To create brand awareness and increase number of customers or accounts.
What are brand roles in the concept of IMC?
- Identity
- Image
- Promise
- Relationship
Why is the integrated marketing communications (IMC) used?
- Because of audience fragmentation people are scattered across various media
- There is a competition for consumer attention
- There is a need to maintain consistency in brand message and across media
- The most beneficial for company is synergy of communications (using different communication tools)
- Coordinating multiple agencies and departments is challenging
- IMC maximizes the impact on customers as it allows firms to reach, engage, and persuade an audience
What is the pull strategy?
A pull strategy is an ability of brand communications to appeal to the end users who then seek it out through channels where it is available.
Pull strategies involve the ability of the brand to appeal to the end user who then requests the product from channel members, thus pulling the product through the distribution channel.
What does the pull strategy consist of?
The pull strategy consists of:
* Advertising
* Public relations
* Sales promotions
* Direct marketing
* Targeted promotions
What is the push strategy?
A push strategy is an marketing approach that relies heavily on persuading channel members to take action.
Push strategy involves providing incentives to the channel members to sell the products to consumers.
What are the main characteristics of the push strategy?
- Encourages channel members to act (persuasion)
- Personal Selling: Relies heavily on salespeople - Building and maintaining relationships
- Ticket sales staff
- Direct response marketing (designed to elicit an immediate response from your target audience) e.g. go to a web page, make a call, place an order
- Sales promotions targeted to sales staff - motivate them to order your products
What is a dual strategy in the integrated marketing communications (IMC)?
Dual Strategy is a combination of both pull and push strategy. Marketing managers choose which suits the IMC plan best.
What are the criteria for IMC objectives (goals)?
They have to be:
* Specific
* Measurable
* Have Time frame
* Realistic
What are the communication objectives?
Objectives that lay the foundation for integrated marketing communications to build customer relationships.
What the communication objectives lay foundation to?
They lay foundation to build relationships by
* Exposure
* Knowledge
* Engagement
What is the goal of communication objectives?
Brand exposure
What are the brand communication tactics that are effective for accomplishing the early relationship states?
- Media advertising
- Sponsorships
- Social media
What are behavioral objectives of IMC
Behavioral objectives relate to outcomes that are action-oriented and ultimately necessary for a business to succeed.
Objectives that connect brand communications to customers responses that can be directly or indirectly measured.
What are the main characteristics of behavioral objectives?
- Focus on responses
- Direct impact on revenue
- Pull consumers closer to purchase
- Quality of fan experience
- No control of on-field/stage product
What is the Hierarchy of effects model?
The Hierarchy of Effects Model explains what steps consumers move through when making a buying decision.
Give an example of the Hierarchy of effects model
Coca-Cola’s “Share a Coke” Campaign: In 2011, Coca-Cola launched the “Share a Coke” campaign, replacing their iconic logo with popular names on their bottles and cans. The Hierarchy of Effects Model was evident in this campaign, as it started by creating awareness of the personalized products (Attention), raised interest by showcasing people sharing the beverage with their friends and family (Interest & Desire), and then led to consumers purchasing the products to share with their loved ones (Action). The campaign also encouraged user-generated content, thus promoting brand loyalty (Retention) and turning customers into advocates (Advocacy).
What are the key stages in the Hierarchy of Effects Model for Sports Brands?
- Awareness
- Associations
- Attitude
- Preference
- Trial
- Purchase
- Loyalty
(The customer’s way of thinking: Thinking -> Feeling -> Doing; what perfectly changes into Knowledge -> Affinity (natural liking of sth) -> Action)
What are the main characteristics of the first step of the hierarchy of effects model (awareness)?
- It is the first step in developing purchase / loyalty
- Sports & events have seasonal nature, which greatly influences not only marketing strategies, but also the overall experience of the event and can generate a sense of anticipation and tradition
- We build awareness of team, season & events/games
What are the main characteristics of the second step of the hierarchy of effects model (association)?
- It is the second step in developing customer relationship
- It’s about perception of brand – creating the desired brand image; and communicating information about the brand to customers
- IMC tactics that are used in this step are: advertising, community involvement (financial donations, employee volunteer days, skills-based volunteering programs, enduring nonprofit partnerships, etc.), sponsorships
What are the main characteristics of the third step of the hierarchy of effects model (attitude)?
- In this step there’s a change from knowledge to affinity (natural liking to sth) – marketers focus more on feelings and emotions
- Awareness and association alone don’t motivate customers to purchase the product, that’s why affinity is important
- Sports & events have an advantage as they make fans emotional
- Tactics used in this step focus on emotional benefits that come from being a fan. Those tactics are: marketing messages, experiential marketing, team fan conventions, advertising
What are the main characteristics of the fourth step of the hierarchy of effects model (preference)?
- Affinity state sets stage for action
- Consumers can have affinity for multiple sports, but because of limited resources fans are forced to make decisions which event to choose
- The key to become the ‘chosen one’ of the fans is creating brand relevance as well as engaging with customers (convincing them)
- Brand communication tools that are used in this step are: access to players / coaches / facilities, experiences & events, brand communication venues, social media
What are the main characteristics of the fifth step of the hierarchy of effects model (trial)?
- This step is about product trial – using the product for the first time
- This step is important in escalating relationships with customers
- Methods used to encourage customers to trial the product are: coupons, price-based incentives, group ticket sales, reducing required consumer commitment
What are the main characteristics of the sixth step of the hierarchy of effects model (purchase)?
- This is the step where purchases are made
- IMC tactics used in this step: promotions and offers, hiring salespeople (they are valuable in closing the deals), persuasion (convincing customers that they’re making the right choice), intense competition (for consumer dollars)
What are the main characteristics of the seventh step of the hierarchy of effects model (loyalty)?
- Loyalty represents significant financial benefit
- Customer lifetime value (CLV) - present value of future profits
- Longer relationships yield higher expenditures
- Loyal customers should be rewarded, for example by customer relations (if they recommend the company to their friends, they can get money for that) or personal selling (the process of buying the product is done face to face with seller, what strengthens relationship, improves customer satisfaction, builds trust, and helps build brand awareness
What is CLV?
Customer life value is the total worth to a business of a customer over the whole period of their relationship with the brand.
