12/7/2020 Integrated Marketing Communications

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Integrated Marketing Communications

The American Association of Advertising Agencies (AAAA) defines integrated marketing

communication (IMC) as a strategic communications approach that acknowledges the

added value of a comprehensive marketing plan. This approach combines various

communications disciplines, such as advertising, sales promotion, direct response, and

public relations, to communicate the brand and the company's message to target

customers in a clear, concise, and seamless manner that is consistent, yet customizable

enough to maximize its intended impact (Kotler & Keller, 2015; Marshall & Johnston,

2011).

An IMC approach allows a company to better integrate its communication elements,

"hence the term integrated marketing communications" (Marshall & Johnston, 2011, p.

316). To execute this approach, a company should have complete knowledge of its

customers so it can understand how different communication methods affect their buying

behavior. IMC can help a company produce more consistent and powerful messages that

can increase sales and build brand equity (Kotler & Keller, 2015).

References

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.

Pearson.

Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New

York, NY: McGraw-Hill.

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Resources

Integrated Marketing Communications and the Changing Media Landscape

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Integrated Marketing Communications (http://ezproxy.umgc.edu/login?

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12/7/2020 Distribution and Supply Chain Strategy

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Distribution and Supply Chain Strategy

A company uses its distribution channels to promote, sell, and deliver its products or

services to end users. These channels may include wholesalers, distributors, retailers, and

agents. The supply chain is a longer channel that comprises raw materials, individual

components, and final products that are delivered to customers. Companies only take part

of the overall value that is generated at each step of the supply chain. When a company

expands downstream or upstream or acquires competitors, it is trying to gain a larger

portion of the overall supply chain value (Kotler & Keller, 2015).

It is common for a company to perceive itself as an integral unit of a value network

composed of the formal and informal connections the company uses to purchase, modify,

enhance, and deliver its final product to its end users. Value networks are complex and

fluid, and change over time. A value network consists of the numerous other businesses

the company works with vertically within its distribution channel and horizontally across

other businesses that contribute to product creation and dissemination. Value networks

strategically combine capabilities, allowing companies to reduce costs and maximize

efficiency at every step of their supply and distribution chains, making strategic alliances

crucial (Marshall & Johnston, 2011).

References

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.

Pearson.

Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New

York, NY: McGraw-Hill.

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Resources

Using Supply Chains to Create Value for Customers

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chainstocreatevalueforcustomers.html?ou=516043)

Using Marketing Channels to Create Value for Customers

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The Impact of Strategy on Supply Chain and Forecasting

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12/7/2020 Pricing Strategy

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Pricing Strategy

Pricing does not simply represent a figure on a price tag. Price has historically been

negotiated between the seller and the buyer, and has traditionally been a leading

determinant in deciding whether or not to buy. The idea of a single set price developed

with the emergence of large retailers. With the increased use of the internet, customers

have more and better access to pricing information from different sellers, thereby forcing

retailers to lower their prices. Companies have responded by offering distinctive product

combinations that sell at a premium. Branding is crucial with respect to these offers

(Kotler & Keller, 2015).

Pricing is complex, and any price changes require extensive research on competitors and

market trends before they can be implemented. Prices inevitably change over time due to

competition, changes in customer preferences, or the appearance of new and better

products. Accordingly, any changes in pricing may substantially affect the ability of the

other marketing mix variables to reflect product positioning in customers' minds (Marshall

& Johnston, 2011).

References

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ.

Pearson.

Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New

York, NY: McGraw-Hill.

Learning Topic

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Resources

Price, the Only Revenue Generator

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Smart Pricing Strategies for the Internet Age: A Primer

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The competitive implications of a “no-haggle” pricing strategy when others

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url=https://doi.org/10.1016/j.ijresmar.2016.04.002)

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12/7/2020 Branding Strategies

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Branding Strategies

Multiproduct Branding Strategy

A company may use one name for all its product capitalizing on its brand equity and the

favorable perception that the consumers have for it (i.e., the company’s trade name and

brand name are the same, as it is for Sony, GE, and Microsoft). This strategy allows for

product-line extensions, or the use of an existing brand name to enter new market

segments in the same product class. Line extensions work best if they take business away

from the competition (i.e., incremental business) and do not cannibalize the company’s

existing sales.

An important decision companies must make is under which brand a new offering will be

marketed. For example, Black & Decker makes power tools for consumers under its Black

& Decker brand, while tools for more serious do-it-yourselfers and professionals are under

its DeWalt brand. If Black & Decker decided to add to its DeWalt line new products such

as coolers, portable radios, CD players, and other accessories construction professionals

might find useful at a job site, the company would be creating a brand extension, which

involves using an existing brand name or brand mark for a new product category.

Why would Black & Decker add these accessories to the DeWalt line? If the company did,

it would be because DeWalt already has a good reputation for high-quality, long-lasting

durability and performance among construction professionals. These same professionals

would trust the DeWalt brand to deliver.

When they're branding a new offering, firms have to consider the degree of

cannibalization that can occur across products. Cannibalization occurs when a firm's new

offering eats into the sales of one of its older offerings; ideally, when you sell a new

product, you hope that all of its sales come from your competitors' buyers or buyers that

are new to the market. A completely new offering will not result in cannibalization,

whereas a line extension likely will. A brand extension will also result in some

cannibalization if you sell similar products under another brand. For example, if Black &

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Decker already had an existing line of coolers, portable radios, and CD players when the

DeWalt line was launched, the new DeWalt offerings might cannibalize some of the Black

& Decker offerings.

However, some marketers argue that cannibalization can be a good thing because it is a

sign that a company is developing new and better offerings. These people believe that if

you don't cannibalize your own line, then your competitors will.

Other companies engage in sub-branding, or combining the corporate brand with another

brand (e.g., Lamborghini Murcielago or Porsche Boxter). On the other hand, a brand

extension capitalizes on a strong brand equity and involves the use of an existing brand

name to enter a totally different product class (e.g., Suzuki motorcycles extending its name

to cars and outboard motors). However, too many uses of a brand name may dilute its

meaning to the consumers as has happened with Arm & Hammer’s brand that has been

used for toothpaste, detergent, cat litter, baking soda, carpet deodorizer, deodorant, and

air freshener (Kerin & Hartley, 2017, p. 308).

Multibranding Strategy

With multibranding strategy, the company gives a distinct name to each product. This is a

useful strategy when each brand is intended for a different market segment. For example,

P&G markets its flagship detergent under the Ariel brand, while Tide is the low-tier brand.

In the United States, Tide is the flagship detergent. This strategy involves higher

promotion and advertising costs compared to the multiproduct branding strategy;

however, since each brand is unique to its market, there is no risk that failure of one brand

will impact the other brands in the line (Kerin & Hartley, 2017).

Private Branding Strategy (Private Label)

With a private branding strategy, a company manufactures products but sells them under

the brand name of a retailer (e.g., Rayovac produces batteries for retailers such as Walmart

and Kroger). This is a highly profitable business for both sides, and about 20 percent of all

products sold in drugstores and supermarkets bear a private label (Kerin & Hartley, 2017).

Mixed Branding Strategy

Using a mixed branding strategy, companies market products under their own brand and

under private labels and sell in different market segments (Kerin & Hartley, 2017).

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References

Kerin, R. & Hartley, S. (2017). Marketing (13th ed.). New York, NY: McGraw Hill.

Licenses and Attributions

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principles-v2.0/s09-04-branding-labeling-and-packagin.html) from Marketing Principles

is available under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0

Unported (https://creativecommons.org/licenses/by-nc-sa/3.0/) license without

attribution as requested by the site's original creator or licensee. UMUC has modified this

work and it is available under the original license.

© 2020 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the validity or integrity

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