The media (TV and radio) used to be the main source of entertainment for people. Now, most people spend a lot of time on their phone navigating different online platforms. So, has this posed a problem to marketing? Yes. Because businesses shouldn’t be saying different things on different platforms. Hence, the integrated marketing communication helps businesses to be consistent and coherent in getting their message to their target market segment in all platforms.
WHAT IS INTEGRATED MARKETING COMMUNICATIONS
Integrated marketing communication is a comprehensive approach; businesses use to maintain clarity and consistency of message to their consumers. Hence, maximizing the impact of their message on their customers.
INTEGRATED MARKETING COMMUNICATION TOOLS
Basically, integrated marketing communication tools are components of promotion mix which can have a great impact on the market segment when melded together. Examples of these tools are below.
This tool enables businesses to get their message across to potential customers on another platform. The party that owns this platform will get paid by the advert sponsor. The method involves mass communication. So, a company’s message should speak to everybody within its target market segment.
By doing this companies try to maintain a positive public image. There are ways to do this. And one of them is via authority recommendation. This means an influencer gives a positive review of them.
This way companies try to increase sales by offering incentives to the customers. Through coupons, flash sales, etc. Furthermore integrating this with an advertisement will not be so hard. In fact, businesses can create ads just for their sales promotion.
This involves a closer interaction with customers through the company’s sales personnel. However, a great deal of time is invested during the process. Hence, it might be less efficient than others.
Through this, customers can be persuaded to action via a call to action buttons on newsletters and websites. Hence, the instant result of this method makes the impact measurable.
INTEGRATED MARKETING COMMUNICATIONS PROCESS
A well-integrated marketing communication process synchronizes its message across all channels. And also, the message across the channels augment one another to achieve the marketing goal. In other to achieve a goal; the list below will help in your integrated marketing communication process.
Know your customers:
You need to acquire every available detail of your customers. Know the platforms you can reach them, their psychographics, their financial buoyancy. Hence, this will help you in choosing the right tool to achieve your marketing aim.
Choose the right communication channels:
Doing this is dependent on knowing your customers. If you understand your customers well and know the right channel to best reach out to them. Your message will have more impact than advertisements done blindly. For example, a business can choose a YouTube ad to promote its product meant for a given geography. But if a negligible amount of the consumers accesses this platform. Then, the ad will be a waste of resources. Also, another thing you can consider in this step is the additive effect of different platforms. For instance, 50% of your consumers might prefer cable channels only and 30% might prefer Facebook only for their entertainment. So, to achieve this additive effect both should top the list of channels you should use to reach out to them.
Design your message and launch it:
Once you are done selecting the different channels for integrated marketing communication. Then design the message based on the peculiarity of that platform. For example, people that spend most of their time on YouTube like motion pictures. While Facebook users may not be fans of videos, just pictures will do. So, adjust based on what they might welcome.
Analyze the result and make adjustments:
Sometimes even the best go ahead strategy for every marketing campaign doesn’t yield as much as required. Hence, you need to collect data to know how much of your goal you have achieved.
IMPORTANCE OF INTEGRATED MARKETING COMMUNICATIONS
A major aim of all marketing campaigns is goal achievement and integrated marketing communication helps achieve that and even more. Below is some importance of integrated marketing communication.
Consistency and repetition of your message on all channels; enables easy recognition of your company. And also associates you with that message. Hence, integrated marketing communication fosters the branding of a company.
Aligning with customers’ choice:
Another importance of a properly done integrated marketing communication is a nice alignment with customers’ choice. Because you already know what the turn-on, and turn-offs of your customers. So, when you hit; they resonate at your frequency, or let’s say you resonated with theirs first and they just reciprocated.
Wider customer reach:
Integrated marketing communication helps reach out to a larger number of people. And also does that while maintaining consistency and clarity in all channels chosen by the company.
Fosters market valuation of a company:
Beliefs and notions about a company in its market affect its valuation. Also, integrated marketing communication helps foster a positive notion about a company.
Balance of Trade (BOT): Definition, Components, and Calculations
What is the Balance of Trade?
The Balance of Trade (BoT) is the difference between the total value of exports and the total value of imports in a given period. It is also known as trade balance, commercial balance, or net exports (NX).
Balance of Trade is to be paid as a measure of the value of goods and services locally at outsourcing (exportation) plus that of the products being imported (imported) over the course of the period. Consequently, the BoT is considered as the main economic indicator of international commercial activities of payment and an important parameter for evaluating economic consumption.
While the total value of exports is superior to all imports, the Balance of Trade is positive and has commercial excellence. An excellent commercial sign that pays a profit in international commerce. The government can use the additional budget to increase local investments to improve the level of living or foreign investments to create new sources of return for the country.
While the total value of exports is lower than that of imports, the Balance of Trade is negative and has a commercial deficit. A commercial deficit that pays less than it does not increase on the world stage. Consequently, the government shall pour a counter-meter in place of new taxes or print other payments or international monetary organizations such as the International Monetary Fund (IMF) to cover the budget slopes.
BoT is the largest part of the balance of payments (BoP), which is the balance of international financial activities of a country. It consists of a current account (international commercial transactions), which includes BoT, and a capital account (international investment transactions).
BoP is the sum of all incoming and outgoing transactions between the economic entities of a payroll and the rest of the world. In theory, the two components constantly balance and produce a balance of zero-sum payments. However, the different economic policies and fluctuations of the change rates driven by the discharges.
Components of Balance of Trade
Economic products including in the calculation of Balance of Trade are classified in goods or services and their prices have a direct influence on the values of export and import.
Goods are tangible materials produced locally, providing nutrition and energy supplies.
Services are based on human interactions and implicitly taking a bite or taking away the responsibility of a piece. The port of the services can be used for diversion and training at the same time and place.
The prices of goods and services depend initially on production coats such as primary materials, storage, transport and personal dispensers. For example, ground fluctuations occur at the manufacturers of petrol products to adjust their prices to reflect changes.
The productive profit margin of the manufacturer is augmented as a function of local off / demand ratio. The volumes of supply and demand vary depending on the companies and are heavily affected by the economic and fiscal conditions that lead to inflation and taxes.
External demand is the final determinant of prices. As long as the foreign currency is higher than the local currency, the companies naturally prefer to export their products and realize the most elevated benefits. Consequently, the export routes are continuously increasing, which are retrospectively feasible for the foreign accelerators.
On the other hand, an industry with an exquisite demand encourages companies to import products, preferably to pay at low prices and increase the total value of imports. In other words, the nominal prices on the internal margins increase and reduce the value of the exports.
How to Calculate Balance of Trade?
In order to compare imports and exports, Balance of Trade with evidence of the effectiveness of international commercial activities of a country. The BoT formula is as follows:
TB (Balance of Trade) = X (total value of exports) – M (total value of imports)
The calculation can vary according to pay. For example, the main ratio of the Balance of Trade of the euro area to France does not match the prices and does not account for the services. The French Balance of Trade of services is calculated separately and the two categories are regrouped in a different report.
How the Balance of Trade Affects the Economy?
The Balance of Trade reveals that it generates additional resources beyond its local capacity at the end of the value. As an important indicator of economic growth potential and constituting an important part of gross domestic product (GDP), governance and central banks are closely monitoring BOT figures to augment their policies. Commercial excellence is generally the PIB, although there is a commercial deficit of capacity.
Beneath the breakdown of wages indicating a positive commercial balance, an excess or a deficit in the index without necessarily a force or an economic failure. BOT figures must be interpreted in the context of current economic conditions, economic policies, and the economic cycles of the country.
Export- and Demand-led Growth Strategies
During a period of economic recession, the government can adopt and stimulate the Greek economy with a crop-driven export strategy. The objective is to think of the outsourced resources being paid by increasing the volume of the outlets to the outsider. Consequently, an excellent commercial deficit is considered as a result of a commercial deficit and a political deficit.
However, if the economy is expanding, an economic contraction policy will be used to keep inflation rates at bay with demand-driven demand. The importation of more foreign goods and services could favor competition by prices in the national economy. Consequently, a commercial deficit leads to a natural consensus, which is an exceptional commercial signifier of inefficient import activities.
If health and economic efficiency are important, other factors will flow out of their respective economic policies. Commercial warfare between the largest consumer and the largest producer of the world, the United States and China, is a good example.
United States. a short-lived trade deficit with China, amounting to $ 375 billion in 2018. As a result, President Donald Trump has accused China of violating international commercial practices with the United States by manipulating foreign exchange, the volume of owned intellectually and with an accent resting on the march.
China responds to accusations by suggesting that Trump is trying to impose economic power on China. Consequently, the commercial warfare proceeds only to the United States deciding to apply a tariff of 25% on various Chinese products and also rapidly increasing it to the extent that the advantage of double standards being imposed on Chinese imports.
Considering that the United States adopts a cross-cutting strategy driven by demand, common and diffuse imports are a contradiction to economic policy. Measuring that import figures are declining, the US commercial deficit remains constant and falls within the value of the US dollar in relation to other currencies.
Balance of Trade as an economic indicator
Balance of Trade is a retarded economic indicator and is not retrospective. A positive BoT digit indicating that the total value of exports increases augmented that imports during the reference period, even as a negative commercial balance ratio suggests the opposite. Several factors that influence the commercial balance:
- Principal national industries and their internal conditions such as local supply/demand
- Coats of primary materials and intermediate goods
- Fluctuations in change rates
- Commercial policies, taxes, regulations, and restrictions
- International relations with the main commercial partners
- Personalized controls
In financial transactions, the BoT is used as an economic indicator of the economic viability of payroll and its proximity to economic policy objectives. Commodities following BoT publications to evaluate the performance of international trade pay and reduce the potential for the crop is to be realized and expanded. It is considered a good predictor of PIB and government budgetary policy futures.
How to use the Balance of Trade reports?
Balance of Trade is an important part of the actuality. The effect of the ratio on the value of currency differs from economic policies and sentiment. An increase in commercial output in an economy driven by exports exhibits a positive effect on the economy, while for an economy driven by demand, there is a growing increase in the commercial deficit.
READ ALSO: BACKTESTING TRADING: Definition, How It Works and Examples
Demarketing Ads: Types, Strategies, Examples and Case Study
To many, the term demarketing ads might not ring any bells but such ads can prove invaluable in navigating some tight corners in marketing. Demarketing essentially refers to every and all wilful efforts and strategies made to reduce the demand for a product, especially in a situation, of which there are many examples, where the demand for such is greater than the producer’s ability to supply.
Perhaps, the most effective effort of demarketing is the use of advertising. Advertising is a paid-for, non-personal communication that appears on any mass media, aimed at selling an idea, product or service.
Although some authorities also consider purposely refusing to market products as demarketing; we are however more concerned with active and paid demarketing.
This article sheds some light on demarketing ads as a concept; looks at the types, strategies and examples of demarketing ads. It also answers the question of why demarketing ads are important in the business world. To effectively implement this, you would have to read our post on marketing management
Demarketing ads are advertisements put out to discourage (but not destroy) demand for a product at a particular time. To the uninitiated, such ads might seem dangerous, counterproductive and wasteful. It is, however, important to note that behind every demarketing ad is the intent to cause some favourable effect.
Conceptually, demarketing is not new. The term has been in use in the academic world since the 1970s when Kotler and Levy coined it. In that Harvard Business Review article, Kotler and Levy described a phenomenon that hitherto had no name.
Of course, the concept of demarketing begs the question of reason; why would producers want to actively reduce sales of their products when the natural order is to sell as much?
One of the commonest reasons for demarketing is to remedy a situation in which demand exceeds the producer’s ability or desire to supply. This might be due to poor or non-existent distribution channel. Also, when selling in a particular region registers very little gain, demarketing becomes necessary in curbing the emergence of another competitor.
Sponsors also use demarketing to help consumers make healthier and more responsible buying choices. In a situation where resources need to be conserved; or where the product causes health complications, demarketing becomes necessary.
There is also the idea that demarketing is ultimately cheaper as a marketing strategy. Hoarding goods to create scarcity (a demarketing move) also increases the market value of the product.
In their 2010 MIT paper, Mikl´os-Thal and Zhang posited that in a situation where marketing costs were non-existent; the producers faced no capacity constraints; scarcity did not increase the value of products and; the seller had no competition, demarketing would still be necessary to control buyer’s perception of product quality
Types of Demarketing Ads
There are three major types of demarketing ads, namely:
General Demarketing Ads
When the sponsor of the advertisement aims to discourage all customers from demanding the product, they use demarketing ads. Governments looking to conserve scarce resources or dissuade citizens from purchasing potentially dangerous products often use such ads.
Anti-alcohol ads like the ‘Parents are Monsters’ ad on CNN; the anti-cigarettes ads like the ‘Download Cancer’ ad sponsored by American Cancer Society and the ‘Smoking Isn’t Just Suicide. It’s Murder’ ad by the Chilean Corporation Against Cancer are example of the general type of demarketing ads.
Similarly, electricity and water advertisement advising consumers to turn off the light or tap are general demarketing ads. An example is the Colgate ‘Every Drop Counts’ commercial of 2016 .
Selective Demarketing Ads
Such ads target specific types of people with the aim of discouraging them from buying a certain product. This could be in order to protect loyal customers who may be affected by sudden mass interest in a hitherto niche product.
Despite the Fair Housing Act in the US, many complaints were lodged against certain ads which claimed (by stating or implying) not to be interested in catering to the needs of low income earners or families with children.
Ostensible Demarketing Ads
Although, artificial scarcity can be created with company policies and what not, putting out advertisements to that effect can really send home the point. This type of demarketing ads tend to however create cases of panic-buying, especially if it is an essential product.
Amazon and Modcloth advertise products on their websites with phrases like ‘only 2 left in stock’ and ‘back in stock’ which consumers interpret as ‘you’d better get it now’.
Demarketing Ads Strategies
Price Discriminating Demarketing Ads Strategy
Producers can structure demarketing ads so that certain people pay more than others for the same product. especially with online ads that require you to click to purchase.
Companies like Bolt (Taxify) use price discrimination strategy, selecting a popular location as your destination might incur a larger fare than a less popular location near it. Dell sold the same computers for different prices depending on the kind of customer you registered as. Pay-per-click ads also been touse price discriminating demarketing ads strategy.
Bait and Switch Demarketing Ads Strategy
Advertising two products in such a way that consumers are persuaded to buy one instead of the other is regarded as bait and switch demarketing. One product is advertised in an unattractive way (usually, with an unattractive price) just to push consumers to buy the other. This strategy is often unethical and illegal.
Phone companies like Samsung and Apple often advertise their expensive flagship phones alongside cheaper higher mid-range phones in order to sell more units from the mid-range line. Consumers often come away feeling they are getting the bang for their buck.
Stock Outage Demarketing Ads Strategy
Stock outages are very advantageous to sellers because it gives them the opportunity to make increment in the prices of goods. Also, consumers tend to buy more when they think that scarcity is impending.
Starbucks’ ‘unicorn frappuccino only available for a few days’ ad on its website caused Starbucks to see a lot of orders from customers and the drink quickly sold out within the first day.
Crowding Cost Demarketing Ads Strategy
This demarketing ads strategy is usually employed during festive periods like Thanksgiving, Easter and Christmas where such sales events like Black Friday are held. Ads are put out to target people who are willing to pay more to bypass the teeming crowds expected on such occasions.
Differentiation Demarketing Ads Strategy
This involves publicly announcing unlikely marketing decisions targeted at the 4Ps of marketing, namely price, place, product and promotion. In this demarketing ads strategy, ads might announce an increase in price, unfavourable condition in a particular place or with a particular product or altogether refuse to market their products.
Demarketing Ads Examples
More real-world examples of demarketing ads include:
- ‘Are you Pouring on the Pounds?’ ad by New York City Health Department aimed at discouraging consumers from buying popular sugary beverages.
- ‘Secondhand Smoke is Firsthand Death’ ads targeted at parents who smoke, encouraging them to quit buying cigarettes and so doing, stop endangering their children.
- ‘Cancer Cures Smoking’ ad by the Cancer Patients Aid Association.
- ‘Check Yourself Before You Wreck Yourself’ ad aimed at discouraging consumers from buying alcohol.
- Anti-marijuana ad by the Office of National Drug Control Policy and Partnership for a Drug-Free America (now known as Partnership for Drug-Free Kids).
Demarketing is the conscious act of unselling a product by reducing the desire people have for it. Demarketing ads can be a useful marketing tool if used properly.
Read more on marketing
MARKETING INFORMATION SYSTEM: A Detailed Guide
Somethings in life are very essential and one of them is information. So, just like you need the information to carry on normal day-to-day activities; business owners and marketers need information from the marketing information system to optimize their activities. So, let’s dig into this subject.
CONCEPT OF MARKETING INFORMATION SYSTEM
Basically, the marketing information system is designed to serve as an aid in the marketing activities of a company. It’s a system that’s designed to gather, store, analyze, and send out market information to marketers regularly and continuously. Changes in the marketing environment are dynamic. Hence, marketers need to stay up to date with these changes. So, they can make wise and evidence-based decisions.
Read more: Marketing Management (All you need to know)
COMPONENTS OF MARKETING INFORMATION SYSTEM
The components of the marketing information system are an interconnected framework; that interact with one another to continuously feed the marketing information system. So, they are essential for the proper functioning of the marketing information system. And they are as follows.
Internal intelligence system:This component of the marketing information system provides information to marketers from the internal records of the company. Every information gathered by a company in its daily operation is handy for the marketers. For example, sales records of sales representatives can tell marketers a lot. And examples of marketing information that can be gathered from such are, periods of highest sales, location with the highest sales, etc.
Market intelligence system:This informs marketers about the current sitrep of the market. Hence, using this sitrep they will know the necessary adjustment to make. Examples of the marketing information here are current market trends, competitor’s pricing, new products, and their effect in the market, customer appealing promotion strategies. Sources of these could be by purchasing competitor’s product, interviewing the channel partners like retailers, obtaining relevant government data.
Marketing research:This component of marketing information involves more activeness than the aforementioned. So, in an attempt to garner more details about a marketing environment or solve a brand problem in the market. A company conducts market research that can involve primary or secondary data collection. For example, questionnaires, surveys, etc.
Marketing decision support system:These are applications that enable marketers to analyze the big data they have gathered from other components of the marketing information system. So, they automate the statistical calculations and some even predict the direction of the market based on some predictive algorithm.
MARKETING INFORMATION AND MARKETING RESEARCH
As you already know, marketing research is a component of the marketing information system. And it’s that component that helps gather information about the marketing environment. However, for marketing research to be handy and high yield is should have the following features.
Searches for relevant data:Good marketing research should search for relevant data. For example, if the research is through a questionnaire, the questionnaire should ask the relevant questions. So, a good way to achieve this is by asking yourself what problem will this question help solve while designing the questionnaire.
Should be systematic:This entails that every process of marketing research should be orderly planned and orderly executed.
Should be objective:Marketing research that has lots of error isn’t just a waste of resources it can also cause a big loss for the company in the future. And lack of objectivity is a cause of this. So, to be high yield; marketing research should be objective.
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