The Concept Of Integrated Marketing Communication Marketing Essay

1544 words (6 pages) Essay

1st Jan 1970 Marketing Reference this

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As defined by the American Association of Advertising Agencies, integrated marketing communications is a concept of marketing communications planning that recognizes the added value of a comprehensive plan (Elliott, 2012, P:491). Integrated Marketing Communications, on the one hand, covering advertising, promotion, public relations, direct marketing, CI, packaging, media and all other dissemination activities put into the scope of marketing activities. On the other hand, to enables enterprises are unified dissemination of information communicated to the customer. Its central idea is based on business communication with customers satisfied the value of customer needs as oriented to determine the enterprise unified promotional strategy and coordinate use of various means of communication. Performing the advantage of the different communication tools in order to enabling enterprises achieve promotional low cost and impact of high-strength form promotional climax. Most national brands use all parts of the mix, each in proportion to the needs of the product. Cereal makers, for example, concentrate most efforts and money on advertising and sales promotions, such as coupons. Other products call for different mix ratios, with some mix components completely eschewed.

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In addition to these key promotional tools, the marketer can also use other techniques, such as exhibitions and product placement in movies, songs or video games, which have been growing in popularity in recent years. Before proceeding any further, however, it is important to stress that promotional mix decisions should not be made in isolation. As we saw with pricing, all aspects of the marketing mix need to be blended together carefully. The promotional mix used must be aligned with the decisions made with regard to product, pricing and distribution, in order to communicate benefits to a target market.

From the facts of the case study, Pepsi used a new approach in its marketing communication. Pepsi holds the number one, third and fourth position among music, overall position among all companies, and entertainment channels. It gives a significant contribution on the music channels with 12.81% share of coverage and holds the first position in that category. It has the third position on the whole TV media with overall 4.29% share of coverage, the effectiveness of which is reported in reduction by researchers (Kotler & Keller 2006, p.576). Similarly, it comes at number fourth on entertainment channels.

Overall, these new media win the trust of consumers by connecting with them at a deeper level. Meanwhile it increases sales and bringing a better brand and corporate image for Pepsi. Marketers are taking note of many different social media opportunities and beginning to implement new social initiatives at a higher rate than ever before. Social media marketing and the businesses that utilize it have become more sophisticated.

In order to maintain the vitality of enterprises, marketers should be flexible and effectively change the media habits of customers so as to maintain the brand fresh and attractive

Q2. How effectively has Pepsi integrated digital and traditional media for the promotion of their products? Provide examples of digital media used.

Nowadays millions of consumers converse on a daily basis in online communities, discussion forums, blogs and social networks. They turn to the Internet to share opinions, advice, grievances and recommendations. It has been said that traditional media is losing its face value and that the Internet is a fad and digital only applies to the millennium generation. While that may seem true, if you want to stay on the innovative cusp for your business, use both traditional and internet media marketing and here are some reasons why:

1. Online conversations can power or deflate a company’s brand.

2. Discover specific issues that are being discussed around your company, brand or organization and create feedback to these issues.

3. There may be events, trends and issues that may be influencing industry and brand buzz.

4. Measure how your online and offline marketing campaigns resonate with consumers.

5. Leverage word-of-mouth to drive brand credibility, and ultimately sales if you use face-to-face marketing, Internet Marketing, Search Engine Optimization Strategy, and Social Media Strategy correctly.

People are more tend to communicate through both word-of-mouth and social media when they are engaged with the product, service, or idea. This engagement may come naturally for supporters of causes, political candidates, and trendy new technological products. However, it can also be creatively stimulated for products and services which generate less psychological involvement of customers.

For example, Pepsi (2008) uses its Pepsi Stuff online customer loyalty program to engage consumers by enabling them to redeem points for MP3 downloads, television show downloads, CDs, DVDs, electronics, and apparel. Campaign participants are also allowed to participate in sweepstakes drawings for larger prizes, such as home theater systems and trip giveaways. Coca Cola (2008) has a similar campaign entitled ”My Coke Rewards.” According to Nielson research, TV users watch more than ever before (an average of 127 hrs, 15 min per month) and these users are spending 9% more time using the Internet (26 hrs, 26 min per month) from last year. Approximately 220 million Americans have Internet access at home and/or work with a growing number using the Internet for research and social media.

Knowing this research, traditional media entertains and communicates to a mass audience whereas digital media entertains, communicates with, and engages the individual. The benefits of digital media can be highly measurable and marketers can often see a direct effect in the form of improved sales in addition to establishing a direct link with the consumer. This can also be cost effective. However, the pitfalls of digital marketing can be that the medium is new, constantly changing and evolving with results that vary. Digital media is known as digitized content (text, graphics, audio and video) that can be transmitted over the Internet.

Recently, Pepsi immensely interest in digital and social media. PepsiCo has put more energy and financial resources for digital media, and nearly one-third of the company’s budget has been used in the digital realm. But Pepsi still can not ignore the power of traditional media. Traditional media has a higher degree of trust than the electronic media. On the content, traditional media will be further description of the relevance directed on big news events and enhance the audience to participate in the interactive feel of the news events. This is the new electronic media can not match.

Q3. How might Pepsi measure the effectiveness of its new campaign? Provide examples.

Basically, relatively simple measurements are used by marketers to gauge the effectiveness of its promotional or advertising campaigns. These are mainly reflected in the aspects of product, price, promotion, consumer feedback.

Meeting its objectives is the best measurement of a campaign’s effectiveness of its ability.

From the case study, Pepsi’s objectives could be:

To enable a company to control its marketing plan.

To help to motivate individual and terms to reach a common goal.

To provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic and Timed

Specific- Be precise about what are going to achieve

Measurable- Quality your objectives

Achievable- Are you attempting too much?

Realistic- Do you have the resource to make the objective happen

Time- state when you will achieve the objective?

Marketing Share Objectives

To gain more market for soft drinks industry

2. Profitability Objectives

To achieve more return on capital employed

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise.

Generally, Pepsi could use the following to measure the campaign’s effectiveness:

Stimulate an increase in sales

Remind customers of the existence of a product

Inform customers

Build a brand image

Build customer loyalty and relationship

Change customer attitudes

Marketing efforts that are ineffective are a drain of time and money for the company; by evaluating each strategy, companies can pare down a marketing plan to the most powerful parts. For the most efficient marketing plan, conduct a review of the marketing strategy periodically throughout the year. Begin each new effort by building in monitoring mechanisms that will make the evaluation process a natural part of each marketing campaign or activity.

As defined by the American Association of Advertising Agencies, integrated marketing communications is a concept of marketing communications planning that recognizes the added value of a comprehensive plan (Elliott, 2012, P:491). Integrated Marketing Communications, on the one hand, covering advertising, promotion, public relations, direct marketing, CI, packaging, media and all other dissemination activities put into the scope of marketing activities. On the other hand, to enables enterprises are unified dissemination of information communicated to the customer. Its central idea is based on business communication with customers satisfied the value of customer needs as oriented to determine the enterprise unified promotional strategy and coordinate use of various means of communication. Performing the advantage of the different communication tools in order to enabling enterprises achieve promotional low cost and impact of high-strength form promotional climax. Most national brands use all parts of the mix, each in proportion to the needs of the product. Cereal makers, for example, concentrate most efforts and money on advertising and sales promotions, such as coupons. Other products call for different mix ratios, with some mix components completely eschewed.

In addition to these key promotional tools, the marketer can also use other techniques, such as exhibitions and product placement in movies, songs or video games, which have been growing in popularity in recent years. Before proceeding any further, however, it is important to stress that promotional mix decisions should not be made in isolation. As we saw with pricing, all aspects of the marketing mix need to be blended together carefully. The promotional mix used must be aligned with the decisions made with regard to product, pricing and distribution, in order to communicate benefits to a target market.

From the facts of the case study, Pepsi used a new approach in its marketing communication. Pepsi holds the number one, third and fourth position among music, overall position among all companies, and entertainment channels. It gives a significant contribution on the music channels with 12.81% share of coverage and holds the first position in that category. It has the third position on the whole TV media with overall 4.29% share of coverage, the effectiveness of which is reported in reduction by researchers (Kotler & Keller 2006, p.576). Similarly, it comes at number fourth on entertainment channels.

Overall, these new media win the trust of consumers by connecting with them at a deeper level. Meanwhile it increases sales and bringing a better brand and corporate image for Pepsi. Marketers are taking note of many different social media opportunities and beginning to implement new social initiatives at a higher rate than ever before. Social media marketing and the businesses that utilize it have become more sophisticated.

In order to maintain the vitality of enterprises, marketers should be flexible and effectively change the media habits of customers so as to maintain the brand fresh and attractive

Q2. How effectively has Pepsi integrated digital and traditional media for the promotion of their products? Provide examples of digital media used.

Nowadays millions of consumers converse on a daily basis in online communities, discussion forums, blogs and social networks. They turn to the Internet to share opinions, advice, grievances and recommendations. It has been said that traditional media is losing its face value and that the Internet is a fad and digital only applies to the millennium generation. While that may seem true, if you want to stay on the innovative cusp for your business, use both traditional and internet media marketing and here are some reasons why:

1. Online conversations can power or deflate a company’s brand.

2. Discover specific issues that are being discussed around your company, brand or organization and create feedback to these issues.

3. There may be events, trends and issues that may be influencing industry and brand buzz.

4. Measure how your online and offline marketing campaigns resonate with consumers.

5. Leverage word-of-mouth to drive brand credibility, and ultimately sales if you use face-to-face marketing, Internet Marketing, Search Engine Optimization Strategy, and Social Media Strategy correctly.

People are more tend to communicate through both word-of-mouth and social media when they are engaged with the product, service, or idea. This engagement may come naturally for supporters of causes, political candidates, and trendy new technological products. However, it can also be creatively stimulated for products and services which generate less psychological involvement of customers.

For example, Pepsi (2008) uses its Pepsi Stuff online customer loyalty program to engage consumers by enabling them to redeem points for MP3 downloads, television show downloads, CDs, DVDs, electronics, and apparel. Campaign participants are also allowed to participate in sweepstakes drawings for larger prizes, such as home theater systems and trip giveaways. Coca Cola (2008) has a similar campaign entitled ”My Coke Rewards.” According to Nielson research, TV users watch more than ever before (an average of 127 hrs, 15 min per month) and these users are spending 9% more time using the Internet (26 hrs, 26 min per month) from last year. Approximately 220 million Americans have Internet access at home and/or work with a growing number using the Internet for research and social media.

Knowing this research, traditional media entertains and communicates to a mass audience whereas digital media entertains, communicates with, and engages the individual. The benefits of digital media can be highly measurable and marketers can often see a direct effect in the form of improved sales in addition to establishing a direct link with the consumer. This can also be cost effective. However, the pitfalls of digital marketing can be that the medium is new, constantly changing and evolving with results that vary. Digital media is known as digitized content (text, graphics, audio and video) that can be transmitted over the Internet.

Recently, Pepsi immensely interest in digital and social media. PepsiCo has put more energy and financial resources for digital media, and nearly one-third of the company’s budget has been used in the digital realm. But Pepsi still can not ignore the power of traditional media. Traditional media has a higher degree of trust than the electronic media. On the content, traditional media will be further description of the relevance directed on big news events and enhance the audience to participate in the interactive feel of the news events. This is the new electronic media can not match.

Q3. How might Pepsi measure the effectiveness of its new campaign? Provide examples.

Basically, relatively simple measurements are used by marketers to gauge the effectiveness of its promotional or advertising campaigns. These are mainly reflected in the aspects of product, price, promotion, consumer feedback.

Meeting its objectives is the best measurement of a campaign’s effectiveness of its ability.

From the case study, Pepsi’s objectives could be:

To enable a company to control its marketing plan.

To help to motivate individual and terms to reach a common goal.

To provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic and Timed

Specific- Be precise about what are going to achieve

Measurable- Quality your objectives

Achievable- Are you attempting too much?

Realistic- Do you have the resource to make the objective happen

Time- state when you will achieve the objective?

Marketing Share Objectives

To gain more market for soft drinks industry

2. Profitability Objectives

To achieve more return on capital employed

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise.

Generally, Pepsi could use the following to measure the campaign’s effectiveness:

Stimulate an increase in sales

Remind customers of the existence of a product

Inform customers

Build a brand image

Build customer loyalty and relationship

Change customer attitudes

Marketing efforts that are ineffective are a drain of time and money for the company; by evaluating each strategy, companies can pare down a marketing plan to the most powerful parts. For the most efficient marketing plan, conduct a review of the marketing strategy periodically throughout the year. Begin each new effort by building in monitoring mechanisms that will make the evaluation process a natural part of each marketing campaign or activity.

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