Integrated Marketing Communications Strategies (IMC)

Integrated Marketing Communications strategies (IMC) consist of communicating a consistent and positive message at all contact points. IMC has grown in importance for several reasons. First, IMC allows a firm to foster long-term relationships with customers. Give an example of a company that implements IMC. What do they do well? What should they improve? Explain and justify your answer.

The Walt Disney Company's planning, coordinating, executing and monitoring of their Integrated Marketing Communications (IMC) strategies are among the best in the world. Disney integrates marketing communications strategies at the content, character, messaging and visual levels deliberately to increase cross-selling and up-selling of their merchandise. Their near-obsession with excelling at IMC strategies is directly tied to the company's need to continually gain incremental revenue to fuel their growth (Corporate Executive Board, 2001). Disney in fact perfected IMC strategies from an entertainment standpoint and is taking these lessons learned online with digital content (Schmelzer, 2005). This can be seen in Disney Online, their many microsites and the global reach the company has in Asian and European markets. Disney has been able to successful implement the model shown in Figure 1.

Figure 1: Based on analysis of a Citigroup Investment Brief (Citigroup, 2006)

For all the areas Disney excels at in planning, executing and monitoring their IMC strategies they have failed miserably in other cultures including France and initially in Hong Kong (Balfour, Einhorn, 2009) (Marr, Fowler, 2006). In the case of EuroDisney, Disney company senior management often brought in seasoned Disney executives from the U.S., who clearly did not understand the local culture, needs of employees or even the preferences for food and concessions (Curwen, 1995). Disney is often considered highly ethnocentric in the marketing communication and expansion strategies as a result of the initial failure of Euro Disney and the many challenges of getting Disneyland Hong Kong up and running. For global IMC strategies to be effective they must compensate exceptionally well and transparently to the needs of each individual culture (Balmer, Greyser, 2006). Clearly the Walt Disney Company struggles with this.

2. Importance of Communications Program Objective Setting. Does Bates Manor Furniture have a communication objective? What should it be? How will communications objectives assist in prioritizing promotion tools and budget setting?

Bates Manor Furniture has the primary objective of driving up awareness and nurturing the entire AIDA model to generate sales leads that can be transformed into new customers and revenue. The company however has taken too broad of an approach with their communications objective setting and as a result has not been able to attain its objectives. What is needed is more of a targeted communications program that seeks to promote those furniture lines and items to the best possible audience. Communication objectives can help by first focusing the company's efforts on a specific market and its unique needs, and the specific products of interest. In seeking out this connection of customers to products, IMC strategies have a higher potential for success.

3. In the case, BatesManor Furniture, inc (a), what is the purpose and role of advertising, promotion, and personal selling in the household furniture industry?

The furniture industry is one that is known for its long sales cycles, high prices and consumer lifecycle approach to marketing. Young families for example have entirely different needs than those of empty nesters. The BatesManor Furniture case study shows how advertising, promotion and personal selling in the household furniture industry needs to be more attuned to the unique needs of customers and not just rely on traditional marketing and promotions strategies. Instead of using IMC strategies as a means to en masse market, there needs to be more focus and attention to individual customer needs first.

4. Ultimately, the goals and objectives of any promotional campaign culminate in the purchase of goods and services by the target market. The AIDA model creates attention, interest, desire and action. Does promotion affect customers differently when the product is inexpensive vs. when it is expensive? Explain and justify your answer.

Yes, promotions have a significantly different effect depending on the price of the product. For high-priced products there is a price/quality relationship and more of a motivation to purchase based on aspirations (Caemmerer, 2009). People purchase more expensive products due to their aspirations. Promotions on low-priced products are more attuned to making budgets strength and ends meet, a strategy Wal-mart has perfected. Promotions carry the unique value propositions in markets based on the pricing position of products, and are critically important.