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You have been newly appointed as Promotions Manager to a company - Your task is to convince your managing director to consider an IMC campaign.

Extracts from this document...


M K T 3 1 0 Promotions Management Assignment One Due Date: Wednesday, 24 March 2004 Value: 20% Student Name: Laura Hughes Student Number: 94083572 Table Of Contents Assignment Question Page 3 Executive Summary Page 4 Introduction: Company Overview The Australian Jockey Club Page 5 The Racing Industry Page 5 The Marketing Challenge Page 5 Literature Review: Integrated Marketing Communications (IMC) Definition(s) of IMC Page 6 IMCs Status as a Theory Page 7 Changes that Led to IMC Page 7 Key Features of Integrated Marketing Communications (IMC) IMC + Target Audiences Page 9 IMC + Relationships Page 9 IMC + Synergy Page 10 IMC + Marketing Mix Page 11 IMC + Outside-in Planning Page 12 IMC + Integration Page 13 Conclusion Page 15 References Page 18 Assignment Question Topic You have been newly appointed as Promotions Manager to a company. Your managing director thinks that integrated marketing communications campaigns are not useful for your organisation. Your task is to convince your managing director to consider an IMC campaign. Write a report outlining why your company needs an IMC. In answering this question, you will need to relate your answer specifically to either: a. A sporting organisation, such as the NRL, cricket, AFL clubs, or local sporting clubs. OR... b. A community service, such as a charity, conservation group etc. You must provide a brief background (1 page maximum) for your chosen organisation. Be sure to discuss relevant theoretical concepts and apply to your practical example. Executive Summary Marketing communications can be defined as the collection of all strategies, tactics and activities involved in getting the desired marketing messages to intended target markets, regardless of the media used. An organization's total marketing communication efforts is called its promotional mix; and generally includes a specific mix of advertising, personal selling, sales promotion, sponsorship marketing, public relations (publicity) and point-of-purchase communications. However, communication goes beyond these elements mentioned in the promotional mix. ...read more.


IMC + Synergy Synergy implies the working together of various elements into a unified whole; in this case, the working together of different marketing disciplines to form a cohesive marketing thrust. IMC creates many benefits by taking advantage of synergies. For example, * All of the organizations' communication messages project a consistent, unified image. This involves a centralized messaging function so that everything a company says and does communicates a common theme and positioning (Belch & Belch, 2004). When customers have to resolve differences between messages, it weakens their confidence in the company. Consistency in slogans, appearance, and other cues serves to strengthen consumer familiarity with the company. Further, since customer and stakeholder audiences do not distinguish between messages intended for them and those intended for other audiences, IMC serves as a mechanism for checking for message conflict (Moriarty, 1997). For example; The San Miguel Autumn Carnival, held over four days (Derby Day, Doncaster Day, Oaks Day and, Cup Day), is the crown jewel of the AJCs racing season. The carnival features Australia's record prize pool totalling $8 million (www.racing-nsw.com.au). Some of the highlights of this carnival are the AJCs Lawn Parties on each of these days, featuring marquees and entertainment for pre-purchased ticket holders. If the AJC told its current race club members that the four-day Autumn Carnival is 'Australia's richest and most exclusive event of the year', and at the same time, the local community are hearing that the Lawn Parties are going to be 'the best deal in town', then audiences are receiving conflicting messages. One says this event is going to be expensive and for the elite, whereas the other says the event is going to be inexpensive and for the masses. Since stakeholders overlap, it is very likely that some of the local community are also members of the AJC and these conflicting messages will be sent to the same person and will result in confusion and dissonance. IMC is able to manage these issues through synergy (Moriarty, 1997). ...read more.


IMC acknowledges that the organisation has more than one target or stakeholder audience with whom it must communicate - and is able to reach these audiences more efficiently and effectively. This is important since the AJC must communicate with many stakeholders in organising its race meetings. IMC also recognises the necessity and profitability of building closer relationships with these target audiences and stakeholders. In doing this, the AJC can potentially enhance brand awareness and loyalty amongst its customers, and can improve the whole value chain creating a competitive advantage. Additionally, IMC creates benefits for the AJC by taking advantage of synergies. These include: maintaining a consistent, unified brand image; reducing message conflict and duplication; providing optimum value in terms of reach, impact and economic saving; building brand equity thereby enhancing customer loyalty and reducing competitors' marketing actions. Further, IMC coordinates and communicates each part of the marketing mix by combining the 1960s four-Ps (Product, Price, Place, and Promotion) with the 1990s four-Cs (Consumer, Cost, Convenience, and Communication). In doing this, the AJCs marketing communications will effectively reach the target audience thereby building profitable customer relationships and brand name awareness. Moreover, IMC is driven by an outside-in approach to marketing communications by starting with an understanding of the target customers and recognising that everyone associated with the organisation is responsible for communicating with the target audiences. This outside-in approach can build perceived value into the AJCs brand, and separate it from the competition in the minds of their customers and prospects Lastly, IMC can occur in different forms at different levels of development. Seven levels of development were identified for the AJC including awareness of the need for integration, image integration, functional integration, coordinated integration, consumer-based integration, stakeholder-based integration and relationship management integration. By adopting the new mindset and principles of IMC, the AJC can craft the right balance of media investments - quickly, profitably and continuously. The net effect is that the AJCs brand communications achieve their desired objectives despite the fragmented media landscape, radical consumer change and technological advancements. ...read more.

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