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

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M K T 3 1 0    Promotions Management

Assignment One

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

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:

  1. A sporting organisation, such as the NRL, cricket, AFL clubs, or local sporting clubs.

OR…

  1. 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. It also includes the product, price and placement (distribution) of the brand – otherwise known as the marketing mix. All of these elements communicate something about the brand to the target market (Kotler et al, 1998. pg. 471).

The primary objective of this report is to identify and discuss the reasons why an organisation such as the Australian Jockey Club (AJC) might adopt an integrated approach to their marketing communications. The report is divided into two parts. The first is a theoretical discussion of integrated marketing communications (IMC); and second, considers the key features with respect to the AJC of an IMC campaign.

The understanding of integrated marketing communications (IMC) is still evolving with claims that it has been in “a pre-paradigm state” and in need of “all types of research to help build a solid theoretical and practical approach” (Schultz and Kitchen 1997).  The term ‘integrated marketing communications’ has become widely used over the past decade, although consensus on a definition of the construct has yet to be reached (Shimp, 2003). Consequently, this paper begins by conceptualizing the term employing four academic initiatives.

This paper then suggests that the driving forces behind the growth of IMC in the past decade are firmly based on significant changes and advancements in the marketing communications environment of organizations. A concise discussion of three forces – media mix, advanced technologies, and more demanding and diverse consumers – is given as an explanation.

The second part of the report discusses the six key features of an IMC campaign – IMC + Target Audiences; IMC + Relationships; IMC + Synergy; IMC + Marketing Mix; IMC + Out-side In  Planning; and, IMC + Integration. Each is discussed in detail and applied to the Australian Jockey Club (AJC).

Finally a brief summary of the report is given outlining the main points presented and the recommendations that apply as a result.

Introduction: Company Overview

The Australian Jockey Club

Established in 1842, the Australian Jockey Club (AJC) was the first thoroughbred racing club in Australia. The AJC owns and operates two racecourses in the Sydney metropolitan area: the historic and prestigious Royal Randwick and the more country-style atmosphere of Warwick Farm ().  

The affairs and general business of the AJC is administered by ten honorary committee members who are elected on an annual basis by and from 7,600 AJC members. The club is a non-profit organisation in that any yearly surplus is returned to the racing industry by way of prize money, subsidies, and improved racecourse facilities and amenities ().

The Racing Industry

The racing industry has had a prominent place in the economic and social history of Australia. There are three main codes of racing: thoroughbred horses, harness horses and greyhounds. Thoroughbred horse racing is the largest and oldest of these ().  

The thoroughbred horse racing industry is a gambling industry in the sense that on-course and off-course wagering on racing outcomes is the major revenue source for the industry. However, in addition to wagering, this industry provides highly important sports and entertainment activities for the people of Australia.

The Marketing Challenge

A common problem faced by thoroughbred race clubs worldwide, and more importantly by the AJC, is the challenge to halt the decline in patron attendance. Over the past five years the average number of patrons attending an AJC race meeting on Saturday has declined from approximately 12,000 to about 10,000. Attendance at a midweek AJC race meeting has fallen from approximately 4,000 to about 2,000 over the same period ().

This decline in attendance can be attributed not only to the AJCs’ outdated brand image and overall poor awareness, but also to the exuberant amount of competition the organisation faces from the three separate industries it is susceptible to: entertainment, sports and gambling.

The AJC relies on attendance at race meetings, so it’s crucial that these issues are resolved. This is where an Integrated Marketing Communications (IMC) campaign can play a key role.

Literature Review: Integrated Marketing Communications (IMC)

During the past decade, few topics have received more recognition and acceptance in marketing literature than that of Integrated Marketing Communications (IMC) (Cornelissen & Lock, 2000).  However, the concept of IMC is not a new phenomenon. In fact, there is a consensus amongst scholars that the concept itself has strong historical antecedents that date back to the early eighties, when “a small but influential number of advertising agencies identified the need to orchestrate their [marketing] activities” (Pickton & Hartley, 1998).

Since then, the move toward an IMC approach has been adopted by both large and small companies and is popular not only among organisations’ marketing consumer products and services but business-to-business markets as well (Shimp, 2003).

Definition(s) of IMC

While there has been extensive debate and discussion amongst academics on the subject of IMC, there has yet to be “…a consistent or mutually agreed upon definition, description, or process to identify what is IMC and what it is not” (Schultz & Kitchen, 1997). Thus, academics, practitioners and researchers on the topic have developed rather individualistic interpretations of its semantics. Some of the more eminent viewpoints include:

Griffith (1997):        “IMC means that all your company's key product and corporate messages, positioning and images, and identity are coordinated across all marketing communication venues.”

Burnett & Moriarty (1998):        IMC is the “practice of unifying all marketing communication efforts – from advertising to packaging – to send target audiences a consistent, persuasive message that promotes company goals.”

Kitchen & Schultz (1999):        “IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines – for example, general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact.”

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Shimp (2003):        “IMC is a communications process that entails the planning, creation, integration, and implementation of diverse forms of marketing communications (advertisements, sales promotions, publicity releases, events, etc.) that are delivered over time to a brand’s targeted customers and prospects.”

IMC’s Status as a Theory

Some academics (Cornelissen & Lock, 2000) have questioned whether the IMC movement is just another management fad that lacks theoretical content and rigor.  But, evidence to the contrary (see Schultz & Kitchen, 1997) suggests that the IMC approach is proving to be a permanent change that offers significant value to ...

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