Marketing Management Campaign in Increasing the Consumers Choice - Term Paper Example

Marketing Management Campaign in Increasing the Consumers' Choice Total Number of Words: 2,056 Table of Contents I. Introduction '''''''''''''''''''''''''''. 3 II. Impact of Marketing Strategy to the Success of the Business '''''.. 4 III. Impact of Market Segmentation in terms of Increasing the Consumers' Choice '''''''''''''''''''''''' 5 IV. Importance of Product Positioning and Target Market Using the Traditional Marketing Mix ..'''''''''''''''''''''.. 5 a. Impact of Marketing Communication Mix or Promotion in Product Positioning ''''''''''''''''''''. 7 b. Impact of Integrated Marketing Communication in Product Positioning ''''''''''''''''''''. 8 V. Discussion ''''''''''''''''''''''''''''.. 9 VI. Conclusion ''''''''''''''''''''''''''''. 10 References '''''''''''''''''''''''''''''' 11 - 12 Introduction For many years, market researchers have conducted a lot of marketing studies in order to determine the best strategy that marketing managers could adopt in order to grab the biggest market share within the industry as well as in maintaining and increasing the market profitability of the business despite the continuously changing market environment. In most cases, the top management should be able to satisfy its target customers in order to increase the company's profitability. One of the major purpose marketing is to meet the specific needs and wants of the company's target market. Since the business buyers and consumers in general have different preferences in terms of the product quality, prices, and services offered to them by the supplier, a single marketing concept is insufficient to meet the demands of majority of the consumers. For this reason, different marketing concepts have been developed in order to enable a company to have a better way of increasing its profitability and market shares. It has also been argued by a lot of marketing managers that developing a proper marketing management campaign - particularly the implementation of market segmentation, the proper positioning of the products and services in the market as well as targeting the chosen markets, is the key to increase the consumer choice in terms of consumption categories. For the purpose of this study, the researcher will examine and evaluate whether the said argument is acceptable or not. First, the researcher will discuss the importance of marketing strategy in terms of increasing the number of consumers' choice in terms of consumption categories. In line increasing the consumers' choice, the researcher will analyze the importance of product positioning and targeting its selected market with the use of the traditional marketing mix known as the 4 P's (price, product, promotion / marketing communication, and place / market distribution). In line with the importance of product positioning on increasing the consumer's choice in the market, the researcher will also discuss the impact of marketing communication mix or promotion and the integrated marketing communication in product positioning. Prior to the conclusion, the researcher will discuss whether consumers today have more choice in the market in terms of selecting a preferred product and services in terms of the current market environment. Impact of Marketing Strategy to the Success of the Business Sales and profitability is the heart of each business. Since all humans have specific needs and wants with regards to a product and services, the study of marketing is focused on addressing the different needs and wants of its target consumers. It is wrong to believe that the study of marketing is focused only on selling and advertising. Since consumer product preferences are usually guided by marketing concepts such as the value of products and services, cost, customer(s) satisfaction and market distribution, marketing managers continuously find new ways to develop and establish a good relationship with the target consumers by increasing the number of consumers' choice in terms of consumption categories. Impact of Market Segmentation in terms of Increasing the Consumers' Choice Market segmentation is one of the most important concepts in marketing since it allows the marketers to make strategic decisions when it comes to the market distribution of a business. In line with analyzing market segments, it is possible to utilize the 'SWOT' analysis in order to effectively evaluate and monitor the current internal and external market environment. Day and Montgomery (1999: 4) explain that the opportunities and threats in the external market environment enable the marketers to act upon the "globalization and the rapid diffusion of market information." By doing so, it is possible for the marketing manager to make a company remain competitive in today's global market. To segment the market means to divide the market into different groups based on the common interests of the consumers. (Markets and Competition, n.d.) For example, the detergent department of Proctor & Gamble (P&G) manufactures and sells Tide, Cheer, Bold, and Dash to its specific target market based on its target consumers' product preferences. Market segmentation does not only allow P&G to manage the production of these products but also enables the marketing and sales managers to advertise and distribute the different product effectively. Importance of Product Positioning and Target Market Using the Traditional Marketing Mix Traditional marketing mix which focus on analyzing the 4 P's: price, product, promotion (marketing communication), and place (distribution) is generally used in managing the uncontrollable and constantly changing marketing environment, selecting a target market of positioning a product in the market. (Kotler & Armstrong, 1997: 52; McCarthy & Perreault, 1993: 46; Stanton et al., 1991: 13) By studying the company's competitiveness in terms of price, product, promotion, and place including its specific constraints, the marketing manager will have a better idea on how to position the company's products and services in the market by addressing the basic marketing issues related to its target market in order to satisfy the needs and wants of the potential consumers. Once a product has been successfully positioned in its selected target market, marketing managers should no longer change the formula of its existing product. Instead, marketing managers should promote a new product line in case the company has decided to change the formula of its existing product. For example: Back in 1985, Coca-Cola USA decided to replace its old formula with a sweeter variation called 'The New Coke' in order to compete with sweeter tasting Pepsi-Cola. During the taste test and market research, the New Coke looks promising. However, a lot of its loyal consumers protests with angry letters upon the launching of the New Coke. After ten weeks, the company had no choice but to go back with the use of the old formula and promoted it as 'Classic Coke.' (Kotler, 2000: 311) The same is expected to happen in case Coke decides to modify its market price. This example clearly shows that the marketing mix or the price, product, promotion (marketing communication), and place (distribution) are all inter-related and should always go together at the same time. The promotion of product modification or price modification could affect the consumers within a specific geographical market. Impact of Marketing Communication Mix or Promotion in Product Positioning Marketing communication mix or promotion such as advertising, sales promotion, packaging, and direct mail are commonly used to reach out for the company's target consumers. (Baker, 1987: 288; Park & Zaltman, 1987: 456; Boone and Kurtz, 1989: 545; Husted et al., 1989: 446; Lancaster & Massingham, 1993: 265 - 291; Pride & Ferrell, 1993: 485; Kotler & Armstrong, 1997: 428) Marketing communication also known as marcom is referring to the marketing information that is being communicated to the public in order to reach out to the company's potential consumers for a certain product or services. A lot of big multinational companies have invested a huge amount of money in marketing communication alone in order to create and develop brand awareness and eventually create bigger demand for specific product and services. Marketing communication is basically used as a strategy to increase the company's annual sales and grab the biggest portion of the market share. The study of marketing communicating mix is an essential part of marketing concept since it enables the marketing manager to create and develop an effective strategy that could strongly influence its target consumers to patronize and purchase the company's products and services. A good example of a marketing strategy is to highlight an affordable market price vs. the product's quality. In the process, the company has the option to choose from a variety of marketing tools such as the use of famous personalities as the public endorsers on behalf of the company's different product lines. According to Magnani (2006), marketing communication strategy used around 50, 25, or even 5 years ago is no longer effective today. This is most likely due to the tight marketing competition within domestic and international market as well as the flooding of marketing information that goes through the 64 television and cable networks with more than 500 channels operating globally. (Garfield, 2005) There are hundreds of direct mails a person could receive in a year or even the advertisements we hear on the radio. A person cannot be present to capture all these marketing communications all at the same time. Therefore, traditional advertisements through the mediums such as television and radio are no longer effective as it has been long time ago. Impact of Integrated Marketing Communication in Product Positioning The essence of integrated marketing communication is to combine some or all of the marketing communication strategies in order to develop a more effective communication programs. According to Garfield (2005), the use of the digital technology or Internet advertising has already made an enormous in percentage growth as of 2005. Traditional marketing communication strategies such as direct marketing, advertising, public relations, and sales promotion are still useful in attracting the company's target consumers. Since the new era for marketing communication is the use of the Internet, there is a need to apply the traditional marketing communication strategies with the use of alternative forms of media. (Misloski, 2005) Instead of relying too much on print ads, modern marketers would rather decide on establishing a web banner ad or advergaming for the company's products and services. It is also possible for the typical TV commercials to be changed with the use of webisode supported with the word of mouth. On the other hand, the use of traditional direct mail can be changed with the use of E-mail. For example, McDonald's during its 25th year of celebrating the success of launching their 'Happy Meal' promotional activity were giving away a free Tony Hawk's Boom Boom HuckJam ' Tour video games and My Scene ' dolls for each Happy Meal sold during the one-month celebration period between June 25, 2004 up to July 22, 2004. (PRNewswire, 2004) Instead of using the traditional advertising approach, these games were successfully designed capture the attention of the teens as well as the young adults. Discussion With regards to tight competition in the market today, marketing managers who are working for multinational companies are exerting extra effort in order to reach out for the biggest market share the company could grab each year. In order to do so, it is necessary for the company to deliver their product not only to the upper-middle class but also to those potential buyers within the lower class families. Market segmentation is the main key in order for a company to increase the choices of products and services being offered to its target consumers. In order to successfully implement a new market segment within the industry, the marketing managers should utilize the traditional marketing mix in order to develop a more effective strategic plan for the positioning of a new product based on its target market. Since the main consideration of potential consumers who belongs to the lower and middle class buyers is the price, marketing managers should carefully examine and study the market price of similar items being offered by the other manufacturers within the same industry. By doing so, the marketing manager could effectively propose a market price based on the needs and wants of its target consumers in relation to the quality of ingredients and raw materials that will be used in manufacturing a new product line. Marketing communications strategy is useful in terms of positioning a new product in the market. Considering the significant changes in the today's technology, the utilization of these new technologies such as the use of the Internet and 'advergaming' or 'webisode' becomes an effective communication tool in reaching out to a company's target consumers. Conclusion Globalization increases the tight competition in the market. In order for multinational companies to remain competitive in the market, marketing managers should be able to deliver the company's products and services not only to the upper market but also to the middle- and lower-level potential consumers. Market segmentation is an effective marketing concept that could increase the consumers' choices in the market. In order for market segmentation to work effectively, marketing managers should be able to integrate the other marketing concepts such as the product positioning, the use of the traditional marketing mix, focusing on target market through branding, as well as the application of the traditional and integrated marketing communication strategies. *** End *** References: Boone, LE., & Kurtz, DL. (1989) 'Contemporary Marketing' Hinsdale I11: Dryden Press. Day, G.S., & Montgomery, D.B. (1999) 'Charting New Directions for Marketing' Journal of Marketing. 1999;63:3 - 13. Garfield, B. (2005) 'The Chaos Scenario' Advertising Age. 2005. 1:57 - 59. Husted SW., Varble DL, & Lowry JR (1989) 'Principles of Modern Marketing' Allyn and Bacon, USA. Kotler P. (2000) 'Marketing Management' The Milleneum Edition. Prentice Hall International. Kotler, P., & Armstrong, G. (1997) 'Marketing: An Introduction' Upper Saddle River, New Jersey: Prentice Hall. Lancaster, G., & Massingham, L. (1993) 'Essentials of Marketing' 2nd Edition. McGraw Hill Book Co. Ltd. Magnani, R. (2006) 'The Blur Age: Effective Communication in Today's Changing Environment' Journal of Integrated Marketing Communications. 2006. pp. 10 - 15. Markets and Competition (n.d.) 'The Proctor & Gamble Company - Video Discussion Guide' pp. 199 - 206. McCarthy, E.J., & Perreault, W.D. (1993) 'Basic Marketing: A Global-Managerial Approach' January 1993. Irwin Publisher. Misloski, W. (2005) 'Marketing's Neo-Reneissance: An Opportunity for Tomorrow's Multi-channel Integrated Marketer' Journal of Integrated Marketing Communications. 2005. pp. 17 - 25. Park, W., & Zaltman, G. (1987) 'Marketing Management' Dryden Press. PRNewswire (2004) 'Tony Hawk's Boom Boom HuckJam ' Tour and My Scene ' Featured in McDonald's ' Happy Meals' June 21, 2004. Pride, W.M., & Ferrell, O.C. (1993) 'Marketing Concepts and Strategies' 8th Edition. Boston: Houghton Mifflin. Stanton W.J., Etzel M.J., & Walker B.J. (1991) 'Marketing Perspectives from Business Week' New York: McGraw-Hill, Inc. Read More