The American Marketing Association (AMA) which represents marketing professionals defines marketing as “The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.”
Effective marketing requires that managers recognize the interdependence of such activities as sales and promotion and how they can be combined to develop a marketing program. In marketing, exchange is a central concept. For exchange to occur there must be two or more parties with something of value to one another, a desire and ability to give up that something to other party, and a way to communicate with each other.
Marketing facilitates the exchange process and the development of relationships by carefully examining the needs and wants of customers, developing a product or service that satisfies these needs, offering it at a certain price, making it available through a particular place or channel of distribution, and developing a program of promotion or communication to create awareness and interest. The focus of market driven companies is on developing and sustaining relationships with their customers. This has led to a new emphasis on relationship marketing which involves creating, maintaining and enhancing longterm relationships with individual customers as well as other stakeholders for mutual benefit.
The marketer’s task is to devise marketing activities and fully integrated marketing activities and assemble fully integrated marketing programs to create, communicate and deliver value for customers.
Advertising and promotion play an important role in the exchange process by informing consumers of an organisation’s product or service and convincing them of its ability to satisfy their needs or wants. The American Association of Advertising Agencies developed definition of Integrated Marketing Communication as “A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines – advertising, direct response, sales promotion and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact.” Integrated Marketing Communication involves coordinating the various promotional elements. Six major promotional tools are advertisement, sales promotion, personal selling, direct marketing, publicity/public relations, internet marketing.
The Integrated Marketing Communication approach helps companies identify the most appropriate and effective methods for communicating and building relationships with their customers as well as other stakeholders such as employees, suppliers, investors, interest groups and the general public. Companies send messages to customers and other stakeholders through all aspects of their marketing mixes, not just promotion. Consumers make inferences about a product on the basis of elements such as its design, appearance, performance, pricing, service support, and where and how it is distributed. For example a high price may symbolize quality to customers, as may be the shape or design of a product, its packaging, its brand name, or the image of the stores in which it is sold.
The Integrated Marketing Communication approach to marketing communications planning and strategy is being adopted by both large and small companies and has become popular among firms marketing consumer products and services as well as business- to-business marketers. By coordinating their marketing communications efforts, companies can avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communication programs.
To move to Integrated Marketing Communication also reflects an adaptation by marketers to a changing environment, particularly with respect to consumers, technology and media. Major changes have occurred among consumers with respect to demographics, lifestyles, media use and buying and shopping patterns. Media strategy involves determining which communication channels will be used to deliver the advertising message to the target audience. Two most important aspects of the advertising program are development of the message and media strategy. Message development, referred as creative strategy involves determining the basic appeal and message the advertiser wishes to convey to the target audience. Once the message and media strategies have been determined, steps must be taken to implement them. Most large companies hire advertising agencies to plan and produce their messages and to evaluate and purchase the media that will carry their ads. Marketing Communication can tell or show consumers how and why a product is used, by what kind of person, and where and when. They can learn about who makes the product and what the company and brand stand for; and they can get an incentive or reward for trial or usage. Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings and things.
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