Mass & Direct Communication in Market Strategy - Research Paper Example

Part A The main objective of any business is profit making which it derives by making its products and services available to people. The core business strategy of any business, therefore heavily relies on the market strategy that facilitates its products and services to meet the needs and requirements of the people at large. Michael Rappa from North Carolina University considers that “A business model is the methods of doing business by which a company can sustain itself, that is, generate revenue. The business model spells out how a company makes money by specifying where it is positioned in the value chain" (Rappa, 2005). Thus, marketing strategy and communication tools become the most important ingredients of the business strategy that helps to promote business in the cut throat environment. In the past, the 4Ps (product, price, place and promotion) of marketing strategy were highly relevant mainly because of the three reasons: There was lack of variety within the products; people were exposed to limited means of publicity; and promotional activities were more localised (Shultz, 2001). Therefore, under the given restrained parameters, the strategy satisfied both the customers and the retailers. But the fast advancing technology and rapid globalization has dramatically changed the dynamics of the business. In the contemporary times, the technological advancements have brought forth an explosion of information that is easily accessible to public through the internet and other media like television, radio, mobile phones etc. The customer has become much more informed and has been provided him with more options within the similar product lines, but produced by different companies. Indeed, the internet has made it easy for the customers to become aware of the product details including its availability at competitive prices which has precipitated the need to develop a whole new perspective for a new marketing technique. Integrated marketing communication therefore, becomes the most vital part of market strategy for all organizations to maintain a competitive edge over their rivals. The inter-dependence of the various elements within the system has vast potential to establish a market that is sustainable as well as mutually satisfying. Kotler has defined IMC as ‘the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent and compelling message about the organisation and its products’ (Kotler et al 1999). It is true that increased awareness among the customers has put more pressure on the marketers. Even though the customer base is increasing, it is becoming difficult not only to attract more customers but also to retain them. In fact, the more innovative the product and fancier the promotional techniques, the higher are its chances of capturing market space. Thereby, asserting that brands, advertising, and promotional techniques are very important tools of marketing to retain and acquire committed clientele. Marketing metrics are important indicators of the successful implementation of market strategies of a company. Thus, selection of appropriate market metric becomes critical part of any market strategy. Kotler et al (2005, p7) define market as ‘A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others’. Orientation plans provide a focused approach to the market strategy and offer a wide spectrum of informed choices to the various segments of the market, thus creating needs which are later fulfilled by the promised product and service. The customers are the mainstay of all business and effective market strategy must incorporate a well defined market oriented plan, backed by technology that would help provide customer feedback. A focused approach and well defined market orientation helps to exploit the vast galore opportunities in the merging new markets. Thus, in the contemporary times of competitive business the factors that significantly impact the market become intrinsic part of market strategy which can be broadly described as below. Creation of company’s website has hugely facilitated in advertising various goods and services to the huge potential market in the cyber space which is accessed daily by millions of people, spread across the world. The website provides an opportunity to showcase the products and services to attract the future customers and meets their individual demand through customised features of the interactive website. With the fast changing business equations, a reassessment of business strategy has become imperative and organizations need to have an online presence to exploit the vast potential of internet for their business interests. With so much choice in the open market, the updated and informed website gives the unique advantages of the products and their usefulness to draw in new customers while keeping the old. The customer is always interested in the end result of his purchase so he needs to be shown the extra benefits that he would be getting on the purchase! The feedbacks give the company opportunity to keep up with the constantly changing requirements of the consumers. It has become one of the most important parts of any business strategy and intrinsic part of IMC. Moller says that ‘marketing mix involves solving of market segmentation problem, being able to carry out market positioning analysis, and finally being able to differentiate the mix from the competitors’ offer using the target customers’ preferences’ (Moller, 2006, p442). Segmentation of the market to tap the potential of the customers is an essential part of market strategy. It helps to identify the target customers for the existing and new products and meet the challenges of their changing requirement. Market segmentation of the market to differentiate elements is vital in the highly competitive business environment. ‘A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both’ (Porter, 1996). The segmentation helps to create a niche in the market. The mixed segmentation is hugely popular in the contemporary times and gives a big leverage to the companies to plan its market strategy in a more flexible manner and successfully introduce their products in a new market. Brand creation is a major marketing technique that has massive support within and outside the business community and management strategy. de Chernatony and Cottom (2006) argue that concept of brand has evolved from the name given to differentiate a firm’s products, to that of a relationship based on trust. In the rapidly advancing technology and changing socio-economic paradigms, the brands have made a niche in the existing and emerging markets. Products need to maintain an edge over their rivals by incorporating the whole system within which the product is marketed. ‘Brand building is needed because products are the same’ (Kotler, 2005). The brand name ensures that the product maintains a high standard of excellence at a price that a customer is willing to pay for. Therefore, the brand provides the customer with a quality product which satisfies his needs, making it as one of the key reasons that brands still enjoy the popularity amongst its customers and at the same time, attract fresh clientele. In the recent times, internet has redefined the communication with its far reaching implications and has become one of the most important parts of any business strategy. ‘The Internet with its low-cost entry and ease of use quickly changed how information was exchanged and removed the distance barriers for business partners. The idea of trading on the Internet has generated great interest’ (Gottardi et al. 2004). As per another article ‘E-commerce is an economic solvent. It dissolves old business models and changes the cost structure, and rearranges links among buyers, sellers, and everyone in between. The impact of e-commerce is happening in phases’ (Kalakota, Robinson, 2002). The e-commerce thus, becomes a vital factor in IMC which heavily relies in influencing the buying decisions of the customers. The rapid globalization and advent of technology has brought in a host of new issues and factors that have significantly impacted consumer behavior. Customer relationship management is a people-centric business strategy that integrates technology and various business processes around the customers. Analysis and identification of the changing trends of the customer requirements have become important ingredients to gain leverage against one’s business rivals. Understanding of consumer psychology, therefore, plays a vital role in the development of marketing strategy and planning. The behavioral pattern of the people, in the decision making process of buying products and services, help provide important clues for preparing appropriate advertising strategies and campaigns so that maximum mileage could be garnered for the products. The need for effective CRM strategy has therefore, become essential so as to meet the challenges of the external factors to maintain as well as increase their existing customer base. Another major imperative of mass communication is public relation exercise. Sandra Oliver (2001) has emphasized that public relation decisions involve complex situations at corporate, business units or other stakeholder levels which affect or be affected by many parts of the organizations. They facilitate consistent, accurate and the right message to be communicated to the audience, investors as well as customers and strengthen company’s position and provide an effective competitive edge over its competitors in business. The PR exercise includes press releases and audio-video advertisements in different media. It is a very effective way to inform the investors and customers about the company’s achievements in different areas. The investors’ confidence is strengthened by periodic press releases that inform them about the upward graph of its performance. At the same time, the credibility of the company gets a boost in the eyes of their customers. Media, in all its formats, exerts a powerful influence that can completely change the public perception towards people, organizations and goods and services. It is for this very reason that it has become the focal area of business strategy for the companies. Public relation exercises have increased the clientele of the business houses, while at the same time inundated them with a wide range of options and opportunities for expanding and promoting brands whose demands can be created in far flung areas. It is therefore important to realize the multifaceted advantages of the public relation that makes it imperative for the companies to improvise and introduce new elements of image building in its public relation strategy. The PR exercise is also a very effective communication tool that informs the general public about the various ways and means through which the company is discharging its social responsibilities. The involvement of the company in the community services not only facilitates a more personal bonding with its customers and thereby effectively increasing its customer base but it also helps build a very positive image of the company that is designed to give a more competitive edge over its rival companies. Its human nature to identify and support a person or company that empathizes with the problems and concerns of the common man. In the era of rapidly advancing technology and globalization, the traditional approach to development of new products has undergone dramatic transformation. Speed and flexibility have become extremely important ingredients for the products so that the organizations can timely and efficiently meet the fast changing preferences of the customers. The new product development requires an integrated approach to creative learning that may result in the development of new products. The technology and e-communication greatly facilitates the learning processes. Slater and Narver (1995) affirm that markets thrive on the processes of the learning organization which ‘continuously acquire, process, and disseminate throughout the organization knowledge about markets, products, technologies, and business processes’ The new age has seen a wide spectrum of viral marketing that can be broadly classified as the unorthodox techniques of emerging new marketing strategies that are low cost and have potential to reach to a larger audience. It has great potential of exponential growth through diversity of new approaches and initiatives in its market strategies. Using posters, balloons, pamphlets, sponsorship, use various distribution channels tickets, carry-bags to advertise its products, blogs, internet messaging and various other gizmos for its promotion. Leskovec, Adamic and Huberman (2007) assert that Viral Marketing exploits existing social networks by encouraging customers to share product information with their friends. As such it becomes an extremely effective platform of direct communication that can significantly influence the buying decisions of the prospective customers. The various social networking sites like facebook, skype, youtube, orkut etc. have become extremely popular communication tools amongst the younger generation. These sites facilitate communication amongst individuals and businesses, spread across the globe, through efficient use of internet technology. The businesses are increasingly using internet based networking to exploit opportunities and gain leverage in the highly competitive business of the contemporary times. Conclusion In the contemporary times, the customer has become much more informed and technology has provided him with more options within the similar product lines, but produced by different companies. The e-communication has further widened the scope of business across the globe and greatly facilitated incorporation of strategic goals to meet the challenges of the changing demands of the customers. At the same time, emerging markets have become crucial in the era of globalization and can be defined as the new area with high income and where the demand for the product can be created with relative success. With vast diversity in values and ideologies within the social fabric in the global business environment, the e-communication has opened new frontiers of market that has unlimited scope and opportunities. It has a vast potential that goes beyond the local market and embraces a global vision which could turn out to be economically more lucrative while at the same time, promoting global values. Thus, it has provided the firms with the wide options to expand their business across the globe through strategic partnership. The products and services have huge scope in the emerging e-commerce platform and make it easy for the companies to explore partnerships or alliances across the global market. Indeed, one can conclude that the emergence of new communication tools have promoted the need to redefine the traditional approach of mass communication by incorporating technology within its paradigm. The internet facilitates the most effective direct communication with the customers and therefore, unlimited potential of the internet market must be tapped in order to remain afloat in the fast growing customer base. It is also true that the complexities of the ever widening horizon of the market, has been one of the motivating forces for evolving new and innovative marketing strategies that are designed to cater to the system as a whole. The system comprises of customers, dealers, manufacturers and marketing specialists. Hence, companies need to be more proactive in exploiting the potential of the emerging needs of the global market. (2445) Part B Axe brand is the most popular male grooming products from Unilever, in the world and is available as deodorant gel, deodorant body spray and shower gel. The products have established excellent track records in the innovative marketing and advertising world. Record numbers of advertising awards, including 10 Cannes Lions (Unilever website), prove its brilliant marketing techniques and creative ideas. The recent years have seen an unprecedented advancement in technology that has affected every aspect of one’s life. Of all the hi-tech gadgets, the computer and its related fields have been able the ones that have totally redefined the lives of the masses. Its application in the business processes has greatly facilitated communication among various inter-related factors through the tacit manipulation of the informed choices by the organizational leadership. It has thus created a wider database of new opportunities in the real world and has become a necessary business tool with its wide range of applications in the ever expanding and competitive global environment. Thus Unilever needs to be extremely vigilant in using the correct market metrics in its business strategy to gain competitive advantage over their rivals. Recommendations The Axe website must facilitate easy access to information that has brightened the scope of retaining the old customers. Indeed, “we realized that the ‘objects’ of strategy – such as business units, industries, supply chains, customer relationships, organizational structure, and so forth – are held together by a ‘glue’, and that glue is essentially information” (Evans, Wurster, 2000). With so much choice in the open market, the website needs to give the unique advantages of the products and their usefulness to draw in new customers while keeping the old. It should regularly update its website with new value addition schemes for its various products. Customer satisfaction is vital to retain customers. Feedback and follow-up of the customer greatly facilitates in predicting the future trends and help develop products and services to suit the future requirements. Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals. The market strategy should be totally focused on the needs and requirements of the people and make continuous efforts to update its products line with that of the changing public demands. It is an important component of market sensing primarily because speed and flexibility are extremely important ingredients for the development of new products and firms need to introduce the product at the right time. Charles Hill’s assertion that ‘Countries have different political, economic, and legal systems… All these differences can and do have major implications for the practice of international business’ (Hill, 2004) is absolutely correct. In the rapidly changing environment of globalization, the businesses have become more competitive thereby making it obligatory for them, as well as for the working force to become more flexible and swiftly adapt to the changing technologies and work environments. The socio-religious culture of the community has strong impact on the attitude and consumer behaviour of the public, which has direct affect on economic transactions of the company. It is therefore vital that needs and concerns of the community, within which the firm intends to operate, be studied in detail so that sensitive public issues are not violated. In a fiercely competitive business environment when the global economy is under tremendous pressure, a firm must gain their position by leveraging its strengths. According to Michael Porter, the firms’ strengths can be broadly categorized into cost advantage and differentiation. Three types of generic strategies emerge when these strengths are applied by the firm: cost leadership, focus and differentiation (Porter, 1980). It has become imperative for the business to become creative and evolve strategic approach that would effectively meet the challenges of the time. The macro environment factors significantly influence the performance outcome of the organization. Hence, macro elements vis-a-vis economic; demographic trend; changing socio-cultural paradigm; developing new environmental compulsions; advancing technology; and political environment of the region become critical factors for the success of new product in the international market. The introduction of Axe products in global market also needs to take into consideration these factors. Economic environment is a major consideration for all businesses. Consumer buying decisions are greatly influenced by the buying power of the consumers and the regional and global economic environment. The new recessive trend and the burgeoning unemployment has considerably reduced the spending power the consumers and therefore, the high cost of the product may adversely impact its market. The demographic imperatives are strong agents of change in the evolving societies and have huge impact on the market. The demographic changes vis-à-vis population size, age distribution, gender ratio, income group etc. have powerful impact on the economy and consumption behavior of the consumer. An in-depth knowledge of demographic trends is an intrinsic part of market strategy. Kotler et al assert that in the changing global scenario, demographic compulsions significantly impact market position and need to be taken into consideration in a company’s market strategy (Kotler et al, 2007). The attraction for Axe products is tilted more towards the young people in the age group of 18-35 and with growing buying power they are able to buy the new product with more ease. The company must aggressively utilize new technology like computer and internet services in its new product. Business leadership of Unilever has ‘realized that the “objects” of strategy – such as business units, industries, supply chains, customer relationships, organizational structure, and so forth – are held together by a “glue”, and that glue is essentially information’ (Evans & Wurster, 2000). Thus, using this media in wider interest of business, the Axe products would be attractive for the vast database of internet users and help the company to significantly gain market position. The company must also use networking sites to promote its products. Unilever must be focused towards brand creation as its major marketing technique because it has massive support within and outside the business community and management strategy. The brand provides the customer with a quality product which satisfies his needs, making it as one of the key reasons that brands still enjoy the popularity amongst its customers and at the same time, attract fresh clientele. According to Campbell, ‘..companies are building strong brands using a corporate vision and “a way of doing business” approach. Customers identify with their attitude and promise to deliver..’ (Campbell, 1999). The brands have a distinct position in the market which gives them a huge advantage over the new arrivals of goods and services which may require more intense marketing and sales strategy to make effective impact in the market and market segment for the specific target customers. The sustainability of the product shelf life has lost the relevance because the brands ensure the sustainability of their products through creative changes in the product that brings them at par with the latest technology and caters to the universal appeal for the product, making it perennially popular. The brands can stand the test of time because ‘the credibility of a company’s promise of value results from persistence and consistency’ (Ward et al. 1999). The non market factors have direct and indirect impact on the overall performance and operation of the firm. ‘These are characterised by 4Is: issues, institutions, interests and information’ (Baron, p2, 1995). Broadly they are the socio-political environment within which the firm has to operate. The role of government regulations and political dynamics combined with the media, public opinion and stakeholders are few other institutions that make up non market factors. Hence, effective public relation exercise should become part of broader market strategy for the company According to an article ‘Perceiving emotion in the buyer-seller interchange: the moderated impact on performance’ in Journal of Personal Selling and Sales management, the authors had conducted a study that emphatically showed that the ability of salesman to perceive the emotional response of the customer, significantly influences the outcome performance of the sales initiatives (Kidwell et al, 2007). Axe products have committed customers mainly because the company believes in keeping with the time and changes its products’ fragrances and specification to suit the changing times and tastes of the consumers. The company needs to evolve more innovative and dynamic strategy to meet the fast changing preferences of the people. Marketers excel in influencing the self concept and personality traits and behavior by developing market strategies of the products, keeping in mind the prevailing lifestyles of the people. Hence, different market strategy is adopted for different group of people. Advertisements are the most prolific example of segmented marketing where the contents of advertisements are decided by the target group. Axe’s advertising is focused on young men who are adventurous that also sends a subtle message that using it makes them would make them more confident and popular amongst the fairer sex. The highly innovative and segmented advertising has helped Axe products to attain an enviable positioning in the men’s hygiene products. Whenever new products are to be launched, it is important that trend in the customers’ needs and requirements are studied in advance so that appropriate strategy could be developed. The promotional techniques of Axe products have constantly been designed to suit the local conditions. While the Axe advertisements in Paris are more sexplicit, those very advertisements have been toned down in India so that the family as a whole can enjoy the advertisement! Reference Baron, David E. Integrated Strategy: Market and Non Market components. California Management Review. Vol.37 N. 2, 1995. Campbell, Amy. (1999). Brand Achitecture: A Method to the madness. Available from: [Accessed 31 December 2009]. de Chernatony, L. and Cottam, S. (2006). Internal brand factors driving successful finance service brands. 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