QUESTION

Learning outcomes

Explain the basic features and philosophy of the integrated marketing communications concept + Investigate various communications environments and recommend strategies for deciding which integrated marketing communications elements to use in which combinations in dynamic circumstances.

 Task

Expand your knowledge on five topics by researching, analyzing, and writing a portfolio, with inclusion of three news media and three creative examples. The five topics are:
1. The Internet
2. Advertising
3. Sales Promotion
4. Direct Marketing
5. Public Relations

You are required to report on the following (use the marking guide structure):
* What are the three news media and three creative examples for each topic?
* Why did you choose the three news media and three creative examples for each topic?
* How did the six examples (three news media and three creative) expand your knowledge of each topic?
* Conclude on how your research and analysis of the six examples under each topic have expanded your knowledge on IMC – to the extent that you can advise other small businesses on how to synergistically use the Internet, advertising, sales promotion, direct marketing, and public relations.

The news media and creative examples do not have to relate to one another. They can be related if you wish to, for example, you read a news media article about the rise in Internet advertising and you find an example of the Internet advertisement mentioned in the news article. However, you must not use the same examples for different IMC topics.

You must include snapshots of the news media examples (not the full articles) and the creative examples.

Learning Portfolio Guide:

A news media example is a news story reported by news media (newspapers, magazines, etc). The advertising agency, public relations firm, or the client creates a creative example to sell an idea, such as a website, a blog, an online or print advertisement, a sales promotion leaflet, a direct mailer, and a news release posted on the website or sent to the news media. Following are suggestions only:

Internet news media examples
1. Article on the increasing use of social media by young people
2. Article on the cultural dangers of the Internet
3. Article on the rise in Internet advertising

Internet creative examples
1. A company website
2. A viral advertisement sent through the Internet or posted on You Tube
3. An online advertisement

Advertising news media examples
1. Article on advertising market share by media
2. Article on sponsors dropping Tiger Woods as an advertising spokesperson
3. Article on a new advertising campaign

Advertising creative examples
1. The actual campaign written up by the new media [item 3 above)
2. An advertisement you like
3. An advertisement you dislike

Sales Promotion news media examples
1. Article on popularity of movie sales promotion tie-ups
2. Article on consumer complaints about fast food promotions
3. Article on a culturally insensitive sales promotion campaign

Sales Promotion creative examples
1. A poster on a movie sales promotion tie-up
2. A leaflet on a sales promotion activity
3. An actual advertisement on a culturally insensitive sales promotion

Direct marketing news media examples
1. Article on the rise of direct marketing
2. Article on a consumer marketer using direct marketing
3. Article on privacy concerns of database marketing

Direct marketing creative examples
1. A department store’s direct mailer
2. A direct response advertisement
3. An infomercial

Public Relations news media examples
1. Article on Toyota Prius car recall
2. Article on BP oil spill
3. Article on McDonald’s donation to a charity

Public Relations creative examples
1. A corporate PR advertisement
2. A public apology on a corporate website
3. A corporate news release

 SOLUTION

The Integrated Marketing Communications is based on the underlying definition of ‘Marketing’. In simple words, marketing is defined as- “The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.” (American Marketing Association)

Integrated Marketing Communications is associated with the ‘Promotion’ part of marketing. So, an ‘Integrated Marketing Communications’ is a set of promotional tools, which are used to provide consistent messages to the target audiences for clarity, consistency and impact; which in turn leads to the fulfilment of organizational as well as individual objectives. It is therefore a mix of various communication tools such as:

• Advertising
• Sales promotion
• Direct Marketing
• Public Relations
• Interactive tools like Internet
• Other unconventional tools

It should however be kept in mind that all the above tools should communicate one voice, one message and one strategy. So, only the medium for communication changes, but the message conveyed to the target customers is one and the same.

Why Integrated Marketing Communications?

With the advent of internet era, there has been a lot more information conveyed at a fast pace. The customer has now become more aware of different options available to him in terms of products and services; and hence demands more attention and customization. Here, the role of Integrated Marketing Communications has become much critical. Some of the factors that aggravated the importance of Integrated marketing Communications in the present time are:

• Decreasing impact of advertising due to clutter
• Coming up of new ways to reach consumers
• Demand for greater accountability from the companies
• Growth of database marketing to exhaustively segment and serve the customers
• Need for establishing a brand identity for a particular organization in the minds of customers

Hence, we can say that in order to make a successful promotional campaign for a product it is important to understand and apply the tools of Integrated Marketing Communications. In order to achieve that, we will discuss various tools under the light of some live examples and analyse their application in different market environments.
Internet as a promotional tool

Internet is one of the fastest communications tool for any kind of promotion. The strength of internet lies in the fact that it is cost effective means which has wider range of audiences. It is also a direct and interactive medium wherein two way communications can be established with the customer and the seller. Its real time updating capability provides up-to-date information to customers. However, it becomes less effective when the target customer is non-savvy.

Various news media examples are there to weigh its pros and cons. Some of them are discussed below:

News media examples

1. “Australian Businesses Not Coping with Demands of Techie Consumers”

(http://au.ibtimes.com/articles/228619/20111011/australian-businesses-not-coping-with-techie-consumers.htm)- International Business Times October 11, 2011

The article discusses the findings of latest ‘annual Sensis e-Business Report’. The report focuses on the upcoming opportunities in the market through various online tools like social networking sites such as facebook; e-commerce sites and mobile web. It says that the online purchasers are increasing at a fast pace and the internet shopping is now not confined to youth only. However, the rate of small businesses selling online is not in line with the rate of increasing online consumers. Almost 40% of the Australians are now accessing internet through mobile and of them, 12% are making online purchases too. So it is a high time that the small organizations should make conscious efforts to promote and sell their products through online channels.

2. “Retailers told to get cyber savvy”

http://www.smh.com.au/business/retailers-told-to-get-cyber-savvy-20110915-1kbug.html-The Sydney Morning Herald; Clare Kermond; September 16, 2011

This article discusses the importance of online selling for the retailers in Australia. It highlights the fact that even biggest retailers stand to lose customers to online retail if they fail to apply techniques of digital marketing and sales such as customer review sites, which are proven to be effective in customer loyalty, retention and sales. It highlights the fact that the online marketing is not only cost effective, but it also enhances the overall customers’ experience. Even the local retailers bear the risk of losing customers who are now using multiple online channels – review sites, blogs and social networks – to decide on their purchase. Historically, the Australian retailers were not affected from their international counterparts, but with the ever changing digital era could well pose that competition in near future.

3. “Beat the impending recession with cost-effective marketing”

(http://www.dynamicbusiness.com.au/sales-and-marketing/beat-the-impending-recession-with-cost-effective-marketing-4102011.html)- (Simon Carson October 4, 2011)

The article highlights the effectiveness of digital and online marketing strategies to become more cost effective in the times of recession. The recession leads to low consumer spending and less confidence. The effect of recession is huge for SMEs who are mostly dependent on consumer spending. It has thus become very difficult for them to retain customers for a long time. The key to survival therefore is, to capitalise on consumer trends affecting the market, such as the increase in online use. Social networking sites such as Facebook, Linked In, Twitter, Google+ and YouTube are an invaluable marketing tool as they are free to use and highly effective in reaching your customers due to their immediacy and widespread adoption levels. Podcasts, blogs, e-newsletters and email are also highly attractive platforms to engage with the consumer and build your brand.

Creative Examples

1. (http://www.breakingpointsystems.com/)

Breaking Point is a cyber-security firm which has products to prevent and deter cyber-attacks. Earlier they were mostly doing promotions offline. Later on, they moved on to online promotional strategies and revamped their website and along with it they started using other online promotion tools like- a corporate blog, Twitter and LinkedIn accounts. The results were astonishing and after six months, 75% of their leads came from these sources. They have worked on the content so well that they generate the interest of their target customers who are tech savvy.

2. John Fluevog Boots & Shoes Ltd. Facebook page

(https://www.facebook.com/fluevog)

John Fluevog Boots & Shoes Ltd. is one of the great examples of successful social media marketing. They created a popular Facebook page and used it extensively by holding online contests, displaying latest designs and discussion forums where their staff engaged with the target customers. Besides this, they distributed cash prizes for designing an online advertisement. As a result, they reported a 40% rise in their sales in 2009.

3. Amazon web service blog

(http://aws.typepad.com/)

Amazon web services blog is an official blog hosted by Amazon. Here Amazon posts information about all its latest products, services, tools and other information. It features the articles written by key personalities who are amongst the amazon users. The blog is interactive and invites comments from its viewers. So, that is how the company is engaging with its customers and is building long term relationships.

Advertising as a promotional tool

Advertisement is yet another tool which is- any paid form of non-personal presentation and promotion of ideas or products by an identified sponsor. The main objective of the advertisement is to inform, persuade and reinforce the product in the minds of consumer. It works on recall and hence builds brand equity among a large set of audience. However, it is an expensive medium.

Various news media examples are there to weigh its pros and cons. Some of them are discussed below:

News media examples

1. “We can’t live without it, so lets rethink television advertising”

(http://www.headshift.com/au/2009/04/15/we-cant-live-without-it-so-let/ )(James Dellow 15 April 2009)

The article highlights the importance of changing the strategies while going for the TV commercials as a promotional tool in the era of viral marketing. The main challenge is that the consumers are switching to ad free TV viewing by taking special packages which allow skipping of advertisements. So, in order to grab the attention of customers, the content needs to be made in more relevant manner. That is why we have seen recent commercials involving raising awareness, engaging with customers and providing follow through once they have made the purchase. Also, the timing of ads between the TV programmes should be according to the target audience.

2. “Advertising Business And The Prospects August 12, 2008”

(http://www.free-press-release.com/news/200808/1218520735.html)

The article discusses the variety of businesses that can be promoted through advertisements. The different audiences can be- Jobseekers, travellers, traders and day to day consumers. Even when we are dealing in B2B segment, advertisements bring huge profits. Even to promote online campaigns like blogs, a business needs to create effective advertisements to attract visitors. Advertisement can be integrated with other promotional tools like sales promotions to generate more customers. Finally, it says that different people need different advertisements like jobseekers need jobs, travellers need the best travelling packages, students need the best courses, traders need a place to place their products and services etc. and so, the advertising campaigns should be designed according to the expectations of the end customers.

3. “Broadcasters and marketers are miles apart on rate rises”

(http://www.theaustralian.com.au/media/broadcast/broadcasters-and-marketers-are-miles-apart-on-rate-rises/story-fna045gd-1226162500532) (by: Simon Canning From: The Australian October 10, 2011 12:00AM)

The article discusses the effect of online media on the TV advertising rates. It discusses how big TV networks like Ten network could fail to increase their advertising rates when they have less expensive options in online marketing. There is a gap between what advertisers and media buyers were willing to commit to and what the networks are seeking. TV audiences have increased but since the market is fragmented, the growth rates are questionable. With online and magazines in the mix, price is no longer a deciding factor. For an effective advertisement, nowadays, new ideas and innovation are the key determining factors.

Creative examples

1. “HT Mart advertising campaign”

(http://www.free-press-release.com/news/200812/1228315924.html)

The campaign focussed on unique Home Theater Decor productsand related resources. A set of print and online advertisements were designed to complement each other while delivering the same brand identity. The campaign launched on Nov. 1st, 2008 with online media components mainly targeting the Home Theater section of ResidentialSystems.com web site. The print component included full-color print ads in the November and December issues of Residential Systems magazine. The objective of the ad campaign was to showcase the company benefits, and to increase brand awareness. It was effective in creating a brand identity among its target audiences and the same was reflected in the increasing sales of its new products.

Sales promotion as a promotional tool

News media examples

1. “Sales Promotion”

(http://www.splash.net.au/articles/sales.html)(Pauline Douglas)

The article discusses the concept of sales promotion. It terms sales promotion as a ‘science’ of promoting products and services. It encompasses developing relationships with a set target audience to improve the sales of a new or existing product or service. It is based on the customers’ repetitive purchase patterns. The four stages on which sales promotion works are-

a. Introduction b. Perception c. Familiarity d. Trust

So fundamentally, sales promotion intends to change the consumer purchasing pattern. There can be number of tools such as word of mouth, point of sale or media promotion. It can be integrated with the other marketing strategies to create an effective promotional campaign.
Direct marketing as a promotional tool

Creative examples:

1. “So where the bloody hell R U?”

http://www.stuff.co.nz/business/4487

The campaign was developed by Tourism NZ and relied on mobile phones as a key medium for sending information to people. They launched a text-driven tourism campaign to Australia. A first of its kind, the campaign included giving relevant offers, multimedia ringtones, mms and other mobile based applications on the theme of tourism. It invites Australians to use their phones to sign up for regular updates on travel specials from all over New Zealand. The travel deals were sent periodically to consumers’ mobile phones once they sign up. The campaign also used interactive billboards in Sydney, Melbourne and Brisbane, which message passers-by with Bluetooth-enabled phones about the specials. It proved to be effective and cheaper than traditional advertising.
Public Relations as a promotional tool

Public Relations as promotional tool

News media examples

1. “Street Marketing For Profit”

(http://www.free-press-release.com/news/200811/1226041721.html)( November 7, 2008 )

The article introduces a concept of street marketing or Guerrilla marketing as a powerful promotional tool that can be used in any environment and with little financial risk. It says that Guerrilla marketing lives on the edge of unethical, possibly illegal, definitely unconventional, but extremely viral. Often this form of marketing is free. An example could be to write a company’s business website URL on a dollar note, which is not legal but that note will exchange many hands and automatically will generate promotions. This is one of the disguised form of PR.

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