Chapter 1 What Is Value-based IMC

Question 0

Guiding principle 2: use outside-in planning

Answer 0

generate and retain customer and prospect income flows using various marcom tools, pro- grams, and activities.

Question 1

Guiding principle 1: customer centric company

Answer 1

No more silos, and strict comment and follow hierarchy, but more communication, both inside and outside

Question 2

Guiding principle 3: focus on the total customer experience

Answer 2

Anything and everything that sends a message, provides an experience, or relates to the product or service is something that must be considered, managed, and measured.

Question 3

Guiding Principle 4: Align Consumer Goals with Corporate Objectives

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• Generate short- and long-term cash-flow increases greater than the cost of the marketing and communication program used to achieve them.
• Accelerate cash flows—that is, move the flow of income from customers and prospects forward in time, or increase the speed with which those cash flows are acquired.
• Stabilize ongoing cash flows. In many organizations, cash flows come in peaks and valleys, high one month and low the next. The capacity of marketing and communication to flatten those cash flows or smooth them out reduces the operational cost for the company.
• Build shareholder value by increasing the equity of the firm or the brand. Strong brand equity is recognized by the financial market and commonly increases the share price of the firm, both of which will provide value for the shareholder.

Question 4

Guiding Principle 5: Set Customer Behavior Objectives

Answer 4

First, IMC is designed to influence the behaviors of custom- ers and/or prospects. Second, those behaviors can be measured and val- ued in financial terms.

Attract new customers
Maintain current customers
More purchase from current customers
Move the customers through company product ranges

Question 5

Guiding Principle 6: Treat Customers as Assets

Answer 5

making investments in customers and prospects and then expect- ing or anticipating returns on those investments.

Question 6

Guiding Principle 7: Streamline Functional Activities

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Think strategically, not by tactics or single events
• Messages: the brand concepts, ideas, associations, values, and other perceptions the firm wants customers and prospects to store away in memory
• Incentives: short-term offers or rewards for doing something the firm believes will be of value to both itself and the consumer or customer

Question 7

Guiding Principle 8: Converge Marcom Activities

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the blending of traditional marcom with electronic marketing and communication activities.

Question 8

The Five-Step IMC Planning Process

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Step 1: Identifying Customers and Prospects
Step 2: Estimating the Value of Customers and Prospects
Step 3: Planning Communication Messages and Incentives
Step 4: Estimating Return on Customer Investment
Step 5: Postprogram Analysis and Future Planning