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Chapter 1

BU 472 Chapter 1: Chapter 1 - Understanding IMC.docx

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Alan Quarry

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Chapter 1 – Understanding IMC
Marketing Communication
othe process of planning and executing
othe conception, pricing, promotion, and distribution of ideas, goods and services
ocreate exchanges
osatisfy individual and organizational objectives
focused on exchange – create and sustain relationships with customers
omust be:
two or more parties with something of value to one another
a desire and ability to give up that something to other party
way to communicate with each other
oimportant role as it informs consumers of an organizations product and convincing them
of its ability to satisfy their needs and wants
marketing function in an organization:
ofacilitates exchange process
oexamining the needs and wants of consumers
odeveloping a g/s that satisfies these needs
ooffering it at a certain price
omaking it available at a particular place or through a channel of distribution
odeveloping a program of promotion or marketing communication
purpose of marketing function = combine 4Ps into a marketing program that facilitates potential
exchange with consumers in market place
Communicating Product
Product Value
Organization exists to offer a product in exchange for money
Offering may come in the form of a physical good, a service, a cause, an idea, or a person
Product is anything that can be marketed and that when consumed or supported, gives
satisfaction to the individual
Whatever the product type, marketing communication attempts to show how consumers can
receive value through the product offering
Product Attributes/Benefits
Marketing communication can take the simple role of identifying the ingredients or composition
of a good
E.g. ads for Rice Krispies cereal reminded consumers that each “krisp” contained a single grain
of rice, while ads for Shreddies cereal highlighted its unique diamond shape.
Marketing and communications is also used to educate consumers how the services are delivered
Consumers typically view a product as a bundle of benefits signifying what the attributes can do;
benefits can be:
oFunctional – performance of the product
oExperiential – what it feels like to use the product
oPsychological – self-esteem or status that result from owning a particular brand

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Product symbolism – what a product or brand means to consumers and what they experience in
purchasing and using it
Brand Identity
A brand or corporate name and its identification through its logo, symbol, or trademark represent
critical product decisions.
Marketers use brand names that can communicate product concepts clearly (e.g. Air Canada –
Purpose = present the brand and its identification in favourable locations, situations, or time
frames that allow consumers to think or feel more positively toward the brand
Packaging provides functional benefits such as economy, protection, and storage, which can be
the main purpose of a marketing communication message
Brand Equity
Brand equity – intangible asset of added value or goodwill that results from favourable image,
impressions of differentiation, and/or strength of consumer attachment to a company, brand name,
or trademark
Allows a brand to earn greater sales volume and/or higher margins than it could without the
name, providing the company with a competitive advantage
Communicating Price
The price refers to what the consumer must give up to purchase a product
The true cost of a product to the consumer includes:
oMental activity
oBehavioural effort
Price planning involves decisions concerning the level, policy, adjustments through discounts or
allowances, and flexibility when facing competition
Marketing communication plays a role in reinforcing a consumer’s belief that the product’s
benefit or quality accurately reflects the price
Communicating price info is critical for influencing consumers who are in the process of deciding
to buy a product
Communicating Distribution
Indirect channels – using a network of wholesalers and/or retailers to distribute product
Direct channels – selling directly to consumers (e.g. internet)
Marketing communication often provides info as to where a product can be purchased
Different kinds or levels of service might be available in various locations of the distribution
network and this could be the focus of marketing communication
Extensive marketing communication occurs in order to direct consumers to organizational
websites for online purchases
Promotional Mix
Promotional mix includes:
Advertising – any paid form of nonpersonal communication about an organization; involves mass
media that can transmit a message to large groups of individuals, often at the same time
oBrand effects
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