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Promotion Mix To Create An IMC Campaign Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 1442 words Published: 1st Jan 2015

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As defined by the American Association of Advertising Agencies, integrated marketing communications (IMC) is a concept of marketing communications planning that recognizes the added value of a comprehensive plan (Elliott, 2012, P:491). Companies that sell products or services use some or all of the components of a marketing and communications mix, also called a promotional mix. These include advertising, personal sales, sales promotions, public relations and direct marketing. 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. But for a soft-drinks maker like Pepsi, IMC can also be used can be used to create more communication impact, e.g. Advertising can be combined with sales promotions and a little bit of public relations such as sponsorship/events.

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. 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.

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. Do you have a presence?

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 likely 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. You often get what you ask for! Digital media is known as digitized content (text, graphics, audio and video) that can be transmitted over the Internet.

While digital media consumption such as twitter, facebook, youtube etc have increased tremendously, Pepsi cannot ignore consumers who still rely on traditional media for their informative and entertainment needs, as a result, 2/3 of their advertising budget is still dedicated to traditional media. Marketers must strike a good balance between using traditional and digital/social media and other promotional tools

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

The most suitable criteria for evaluating the effectiveness of advertising, depends on a number variables, such as the advertising goals, the type of media used, the cost of evaluation, the value that the business or advertising agency places on evaluation measures, the level of precision and reliability required, who the evaluation is for and the budget. It is difficult to accurately measure the effectiveness of a particular advertisement, because it is affected by such things as the amount and type of prior advertising

The best measurement of a campaign’s effectiveness is its ability to meet its objectives.

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

Attract more competitor’s users (such as Coca-Cola)

Increase sales volume

Hold present Customers

Create brand awareness

To project a rejuvenated image for Pepsi as a socially responsible corporation

To change consumer attitudes from neutral or unfavourable (it is a soft drink after all) to positive

To use newer, digital media to engage in two-way communication with their customers/public.

To communicate its new image via it new packaging

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

Marketers recognize that in the modern world of marketing there are many different opportunities and methods for contacting current and prospective customers to provide them with information about a company and/or brands. The challenge is to understand how to use the various IMC tools to make such contacts and deliver the branding message effectively and efficiently. A successful IMC program requires that marketers find the right combination of communication tools and techniques, define their role and the extent to which they can or should be used, and coordinate their use. To accomplish this, the persons responsible for the company’s communication efforts must have an understanding of the IMC tools that are available and the ways they can be used.


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