Internet and Digital Marketing Communications - Essay Example

? Executive summary Non- price differentiation is a marketing strategy whereby one company is trying to differentiate or distinguish its services or products from competing services or products based on such attributes like workmanship and design. The company can also differentiate its product or service offering through customer focus, extensive distribution, or quality service. This means that provided a company has any sustainable competitive advantage apart from price, then it has non-price differentiation marketing strategy. the different examples of non-price competition are brand management costs, new product development, marketing research, free gifts, special orders, coupons, sales promotions, locations convenience, selling staff or advertising. In this paper we are going to consider three non-price differentiation strategies namely marketing communication, marketing research and customer service. Company profile Dropbox Company is a company that designs a service to share and sync files over the internet between personal computers. It is a downloadable application. Through it, the users can easily share and synchronize files across smart phones and personal computers. The company is located in San Francisco, United States. The company further offers the customers with specific tasks, which include collaboration on office documents, running a startup and backing up photos. Despite the success of the company, the past few years has proven challenging to the management and the entire company. During this time, the company experienced a crisis management problem and lost many of its customers, making the image of the company to be tarnished. The company has since then taken a major step to win back the customers improve the image of the company as well as attracting perspective customers. Despite these great services to the users, users have been asking for new features. Most of these features violate the commitment of the company to offer a simple product that is also easy-to-use. Therefore, Dropbox needs to go beyond syncing and file sharing so that it targets the customer needs. This is the only way it can stay the course. This situation has raised the need for the company to take the company back to its previous performance or to even high heights. The marketing department of this company has been pointed to have the most significant role in this activity. This is because this department has a major responsibility in guiding and leading the other departments of the company in the development, production, fulfilling the products and the services to the customers. Marketing communication Marketing communication is a strategy that refers to the process of creating awareness, reminding or/and persuading customers of a product or a service (Yeshin, 2002). Marketing communication is significant in influencing a buyer’s purchasing decision. Integrated marketing communication (IMC), on the other hand, refers to judicious and the effective use of promotional tools of a product in passing a message across to the customers or potential customers (Yeshin, 2002). The effect of IMC to the existing and prospective customers is often noticeable. This is because the framework of IMC involves the interaction of different marketing communication elements, which have potential to improve or trigger other communication media to contribute (Belch and Belch, 2003). A marketing plan is important in attaining success in marketing. This is because it enables a company and its marketing team to focus on the marketing process. A marketing plan can be prepared using different approaches. However, there are key stages to these different approaches. These key stages are contained in an acronym SOSTC, that is, situation analysis, objectives, strategies, tactics, and control (Reid, 2003). Integrated marketing communication is an aggressive marketing strategy that aims to capture and use extensive amount of information about customers to set and track marketing strategy (Reid, 2003). It thus involves the coordination of the outgoing message of a company and consistency of the message between various media. An integrated marketing system is thus an organized process. The steps used in integrated marketing system include (Reid, 2003) Database with customer information; this element is crucial in segmenting and analyzing customers’ buying habits. Strategies; an insight from the analysis of the data about the customer is utilized in shaping marketing, communication and sales strategies. Tactic; the strategy is determined and the most appropriate tactic for marketing is specified. Evaluation of results, the effectiveness of the tactics and the strategies are determined through the analysis of the customers’ responses. Marketing communications is a major unit of the marketing department that explores the various promotion strategies available in selling products or services of the company. This unit gives the company an insight on ways to use advertising, sales promotions, the media and event management. The marketing communication department does not work independently; it is involved with the other departments in the process of deciding how to produce and present the services or the products to the customers. This is because, this department has a better understanding of the customers’ needs, and also the nature of the market since its activities involves interaction with them. The importance of setting marketing communications objectives is to enable the assessment of how the ongoing dialogue with the customers can be enhanced so that the brand narrative can be maintained and the competitive advantages be sustained. Setting of objectives also provides a good way of checking on how the marketing resources are utilized during the process of marketing (Plessis, & Gerber, 2002) and also it provides a mechanism of evaluating the progress of the organization (Richman, 2006). Objectives can be categorized into three groups; • The knowledge based objectives • Action based objectives • Feeling based objectives The knowledge base objectives aim at getting the attention and creating awareness of a product (Richman, 2006). The feeling based objectives aim to change the attitude of the audience towards a product by developing the brand identity, improving the image of the company and creating shared values while the action based objectives aims at improving the sales and customers’ relationships. The setting of objectives thus needs to be well determined in order for goals to be achieved. Marketing communication strategy A strategy is simply an idea or a conceptualization that directs one on how to achieve a goal (Duncan, 2002). On the other hand, a tactic is the action taken to execute a strategy (Taylor, & Smith, 2004). The strategy and tactics used in a marketing organization need not to be understood by the customers. It is the organization full responsibility to determine and understand them while the customer is only supposed to understand how best the brand is the best choice among many alternatives. In other words, the organization should work to let the customers see only the benefits of the brand. Marketing communications serves to help the customers make selection by putting the products in the marketplace and by giving a psychological impact to the customers (Duncan, 2002). Strong marketing communication strategies makes a business stand out from the others. Developing marketing communication strategies requires the consideration of some aspects if the strategies are to have a positive impact. It is important to consider aspects such as; • The nature of the market: a deep understanding of the market is important, it is important to gauge the key players, the position of the market, influences of the market as well as the changes that occur to the market (Rogers, 2000). • Business needs: the assessment of the primary objects of the business, the competitive pressures, and the barriers of success in the business are also important to consider to setting up the strategies. • Available resources: it is also crucial to determine the budget of the business, staffing, and the strengths and the weaknesses of the business to avoid setting of strategies that cannot be met the resources of the company (Rogers, 2000). By considering the above aspects, it is much easier to determine the most appropriate strategies for a business. A good marketing strategy has the following concept; a good understanding of a product’s strengths and weaknesses, a clear knowledge of customer preferences and the market status (Taylor, & Smith, 2004). The most appropriate marketing strategy for this organization should concentrate on boosting the customer confidence and loyalty, overcoming objections, creation of awareness, advantage emotions of the customers, and setting of deadlines for any activity carried out. Thus the strategies that can be appropriate for this company could be; • Create new reasons why customers should go for the services of the company • Ensure that old customers are retained • Be among the top list of the competitive companies • Coming up with more option of parcel types • Improve the image of the company reliability • Assure the public of renewed and better parcel delivery services The objectives set in an integrated marketing communication plan are often related to rebuilding or creating more relationships with buyers and the other stakeholders of the organization through creating effect on the sales and the profits of the business (Duncan & Caywood, 2000). The crisis that happened to this company affected mostly the customers’ loyalty and attitude towards the company, the image of the company to potential customers, the sales of the company, and generally the image of their services. Thus the objectives that need to be set during the marketing plan should mainly aim these affected aspects and other related aspects. These objectives thus should be as follows; • To enhance the image of the company • To reinforce the use of the services • To increase the market share • To change the attitude and the believes of the customers • To increase the sales • To build customer traffic • To encourage repeated purchasing of the services • To increase the awareness of the services ACTIONS Justification for and discussion of the actions required to achieve stated marketing communications objectives • To enhance the image of the company. This will be achieved by using a strong branding such as a new slogan in the market • To reinforce the use of the services. This will involve maintaining current customers by reassuring them of improvement of services. This can be done by offering timely services and discounts on services offered. • To increase the market share. This will need intensive promotional activities to be carried out in order to attract potential customers as well as to retain existing customers • To change the attitude and believes of the customers. This will involve the rebuilding of trust of the customers. This will be implemented by giving details on the process involved when preparing parcels for delivery and explaining to the security measures put in place to offer more security to parcels during delivery. • To increase the sales. This will be achieved by offering affordable prices to the customers as well as carrying out promotional activities. • To build customer traffic. Customer traffic will be build by offering fast and less costly services. • To encourage repeated purchasing of the services. This will be achieved by offering discount services and assured security to the parcels. • To increase the awareness of the services. This will be done by producing marketing materials such as photo books alongside advertisements on the TV and print media to give information on the services Before setting out to carry out the marketing plan, it is important to have a budget (Plessis, & Gerber, 2002). This is an important action that ensures that resources do not limit achieving of the goals. It is also important to have schedules that should guide when activities are to be carried out to avoid leaving out some important activities or using a lot of time on one activity than the other Marketing research SMART is the general approach suggested during the setting of the objectives. It stands for objectives, which are Specific, Measurable, Realistic, and Time bound (Belch and Belch, 2003). Specificity is an element, which looks at the actual effects of the marketing communication that are to be achieved. These effects could be the creation of awareness and the changing of attitude (Fill, 2006). Measurable refers to qualitative and quantitative metrics needed to evaluate the objectives. Achievable is an element that directs that the set objectives should be attainable. This means that the set objects should not be too high such that the market context cannot hold them. Realistic is an element that directs feasibility of marketing communication objectives considering the time, the resources, and the current competition level in the market. Timed as an element, directs that the duration needed to achieve the communication objectives should be considered (Fill, 2006). SMART objectives form the starting point for a marketing plan. When environmental analysis and marketing auditing are performed, the results inform the SMART objectives (Duncan, 2002). SMART objectives serve the following purposes; enable controlling of a company’s marketing plan, motivation of the marketing team to go for a common goal, and providing an agreed focus to all involved parties in an organization (Belch and Belch, 2003). The objectives set should be specific, measurable, achievable, realistic, and timed. These objectives have the quality of SMART; they can well suit the operations of the company as they have been set with consideration of the status of the company based on its financial and other resources status. These objectives can form a framework for the company’s activities during the process of its reconstruction. It is important to note that the marketing process does not guarantee maximum benefits to the process (Schmonsees, 2005). Moreover, due to the constant changing nature of a market, it is vital to periodically control and evaluate the marketing program so that an effective path is set to achieving the set objectives. Controlling of the marketing communication plan is important due to the scarcity and cost of resources. Controlling thus entails the setting of standards (Duncan, 2002). Evaluation of the progress of the marketing plan thus involves the comparison of the actual progress and the set standards to allow corrective measures to be carried out incase of any (Schmonsees, 2005). The approaches that can be done during the controlling process are several. The approach or the approaches taken depend on market status of the business. They may include; • Analysis of the market share. • The performance of the current promotion activities. • Analysis of sales • The level of the services • Control of quality • The budget of the business • Ratio analysis • Research on marketing • Having marketing information systems • Preparation of cash flow statements • Having a knowledge on location of both the buyers and the potential buyers • Knowledge on the status of the customer relationship management system. Customer service The process can be done by adopting the following approach. First identify points of interaction with customers, tabulate and code the results, finally, identify what to correct. Different businesses have different points of interaction with their customer. These points should be identified and then survey questions grouped under them. For example, in a motor vehicle repair facility there are three probable points of contact. The first point of contact is the phone call requesting or inquiring for service. The second point of interaction is on the material day of repair. Lastly the other point of interaction comes when the client pays for the service at the billing department. There could be an after service point of interaction in the form of a phone call. These points of interaction should form the basis of major headings in the survey questionnaire. This isolates the location of a customer care problem efficiently. The first section of the survey could address how the service we arranged for your service. The second part addresses the point of provision of service- was the client satisfied. The final part will identify any problems with billing. The second point on tabulation and coding the results involves a deep analysis of the data obtained. This task can be taxing and requires appropriate personnel. Whenever there are customer service problems, it will be signified by a large number of complaints. These complaints are tabulated and analyzed appropriately. After all this is done, the fixes to be applied are pinpointed. Unlike the approach that involves “laundry lists,” this method establishes bona fide problem. A real solution can be adopted directly. (Szwarc, p.172).This approach is efficient in translating customer problems and hence meeting customer needs and expectations. It is crucial that standards of customer service are set by any organization. This helps an organization stipulate how to manage customer service problems and complaints. It is natural that no one likes complaints, but they are inevitable in any business. It is crucial to train employees on how to manage customer service. The basest thing that an employee should have is information. Deep knowledge of the company’s products, services, offers and business is crucial in customer service provision. Measurement of customer satisfaction is of exceptional essence in improving customer care provision. Customer satisfaction measurement is used to enable a business understand the factors that affect its services that are beyond its control. It also enables a company get the difference between factor that conventionally affect customer satisfaction and those that actually affect their clients.  Interviews have proven the single most productive method of customer satisfaction measurement. It involves structuring high quality questions that help measure satisfaction. Questions are classified in four fields. They include overall rating questions, service-specific measures, customer priorities and customer characteristics. Overall rating questions are used to rate the service provided by a company. They involve the use of scales such as excellent, very good, fairly good or poor. Service specific measures are essential in getting details of the customer’s experience. Customer priorities are obtained by asking them to rate the relevance of service elements. Customer characteristics can be use to provide context for understanding a customer’s service experience. The information gathered from the interviews is then analyzed. This information is used to train staff on how to satisfy customers. The information could also be used to improve products hence satisfying customers. There are several established processes of gathering customer complaints. Complaints are first gathered at a central office location. They are then analyzed for any similarities. If a specific product or section of service provision appears more than once, it should be analyzed thoroughly and either improved or scraped. Information is gathered through an efficient customer feedback gateway. This gathering of customer complaints should be comprehensively coordinated. The staff of a company plays a primary role in customer satisfaction data collection. This is because staff deals with customers on a day-to-day basis. It also ensures data gathering is continuous since they work at the company. Use of staff also shows some sense of direction because it nurtures their relationship with the customers. Promotional strategies Advertising Tactics to execute the chosen strategies are also very important to consider before marketing communication begins. They should match with the strategies (Yeshin, 2002). Tactics can be of four categories, that is, advertising and promotional media tactics, personal communication tactics, organizational media, and news media tactics (Yeshin, 2002). The tactics that be used to execute these strategies in this company include; carrying out television advertisement about the company’s file sharing and syncing services. This is a good tactic considering that this company has branches located on most parts of the country. The nature of the audience therefore means that advertisements that are to be carried on should target a big audience. TV advertisement is a good option to reach this large audience as many people own televisions. In the TV advertisement, inclusion of infomercials can also have a major impact. This is because infomercials give customers detailed information about services or products and this may most likely create more customers as the message reaches a large audience through the television. Newspapers advertisement can also perfectly work to reach the customers who are in different parts of the country (Taylor, & Smith, 2004). Promotional strategies Digital marketing Blogging Blogging is one of the digital marketing strategies. Through a blog, it is possible to market products or services in a two-way communication. It has trade shows. These are the areas where one can talk to and converse with prospective clients. The blog also has workshops. In the workshops, one has the freedom of asking any questions. The other important part of a blog is the customer service section. In this section, it is possible for one to learn and understand the problems that the clients are facing. Surveys are also present in blogs. In these blogs, it is where one can otherwise have a conversation or ask questions where you ask questions or otherwise having a conversation type relationship, then blogs may be helpful to you for marketing. Blogs are important in helping the user to appear in the search engines. Blogs are described as social media marketing. One distinct feature of a blog is the fact that they are not a phone . Instead, they are a community The blog should be open to comments. The blog should also have extra features instead of just being a brochure-ware. Through the use of blogs, it is possible for the user to have a little knowledge on personality. Blogs can also allow for viewing the person behind the success. These features make it possible for prospective customers to have some extra knowledge while at the same time having the opportunity of asking questions without having an obligation. Blogging also offers a chance for the formation of a community that consists of like-minded organizations. This buffet of organization provides services to the customers. Social network The second type of promotion is social networking through facebook. It is almost the requirement of every business today to have a facebook page. Through the social networking site, it is possible to reach more than half a billion people in the world. There are three secrets toward achieving this marketing capacity. These strategies include those involving the building of the particular page, the attraction of customers and the engagement of customers. If the company’s page is well built and well designed, it will become attractive to the customers. When the customers get some opportunity to visit a particular site, they will develop confidence in that particular site. A good site is also the one that can keep the users engaged. By engaging themselves in the activities of the page, the customers will have more confidence in the activities of the organization. Conclusion Marketing strategy is important for every organization that intends to satisfy the needs of its customers. Many companies face a highly competitive environment with so many players in the market. However, competition may not be the only factor that forces companies to strategize their market plan . During the financial crisis of 2008, several companies in various sectors went through a hard time. This was mainly because of the change in consumers’ buying behavior. The retail industry was one of the hard hit sectors affected by a change in consumer purchase behavior. Consequentially, strategizing a marketing plan so as to adapt to the changes in consumer behaviour was a necessity for survival in the hard times.. Marketing strategies acts as roadmaps to guide organizations to realize their goals and objectives. Additionally, marketing strategies determines the strengths and capabilities of a particular organization. However, marketing strategies are designed to match the buying behaviour of consumers in the market depending on their needs and preferences. Similarly, consumer needs and preferences are determined by the prevailing financial conditions and consumer buying behavior. For this reason, it is emphatically crucial that the extent to which marketing strategies influence consumer behavior be examined. In order to address the impacts of marketing strategies on consumer behaviour, a relationship between the two concepts must be identified. For instance, consumer-buying patterns are determined by the level of their disposable income. The level of disposable income for the majority of consumers was profoundly affected during the financial crisis. This led to a change in their buying behaviours and hence, firms have to design their marketing strategies to attract the changed consumer buying patterns. Recommendations The decision to have a marketing plan is crucial for a successful marketing process as it provides a guideline on what to do during the activity. Considering the status of this company, the plan is of significant use and the likelihood of achieving the goals is also sure. It is advisable to the company to use a marketing plan in the future even after correcting the situation and it should apply to any marketing process. References: Belch, E. & Belch, M. 2003. Advertising and Promotion: An Integrated Marketing Communications Perspective (6th edition.). Boston: McGraw-Hill Companies. Duncan, T. & Caywood, C. 1996. “Concept, Process, and Evolution of IMC”, in Integrated Communication: Synergy of Persuasive Voices, Thorson, E., and Moore, J., eds. Mahwah, NJ: Lawrence Erlbaum Associates. Duncan, T. 2002. IMC: Using Advertising & Promotion to Build Brands. McGraw-Hill Companies, New York. Farrell, O. C., & Hartline, M. D. (2002). Marketing Strategy. Thomson South Western Fill, C. 2006. Simply marketing communications. Financial Times Prentice Hall, USA. Fill, C. 2009. Marketing Communications: Interactivity, Communities and Content, (5th Ed), Pearson Education, UK. Hiller, B. R. (1999). Marketing Intelligence & Planning. New York: Pearson. Hooley, G., Peircy, N., & Nikolaud, B. (2008). marketing strategy and competitive Kirkman, L.B., et al. 2008. High-performance work organizations: Definitions, practices, and analysis. New York: Center for Creative Leadership. Lodato, M. W. (2008). Management of New Product Launches and Other Marketing Plessis, D. & Gerber, T. 2002. FCS Marketing Communication. Pearson publishers, South Africa. positioning. United Kingdomm: Pearson Prentice Hall. Projects. Boston: Pearson. Reid, M. 2003. “IMC-Performance Relationship: Further Insight and Evidence from the Australian Marketplace,” International Journal of Advertising, Australia. Richman, L. 2006. Improving your project management skill. Amacom publishers, USA. Rogers, S. 2000. Marketing strategies, tactics, and techniques: a handbook for practitioners. Greenwood Publishing Group, UK. Schmonsees, J. 2005. Escaping the Black Hole: Minimizing the Damage from the Marketing- Sales Disconnect. Mason, OH: Thomson/Southwestern. Taylor, J. & Smith P. 2004. Marketing communications: an integrated approach. Kogan Page Publishers, New York. United States of America. Yeshin, T. 2002. Integrated marketing communications: the holistic approach. Butterworth-Heinemann, UK. Read More