Marketing Communication Activities - Essay Example

?Marketing Communication Activities Introduction The business environment has experienced a big transformation over the last few years, which has hugely affected the way companies do their business (Webster and Ksiazek 2012, p.4). The changes have particularly affected how companies market their products to customers in order to persuade them to buy the products and services offered by the company. In fact, marketing nowadays has gone beyond just offering appealing prices, introducing a product to the market or making the product available to target customers, rather, it also entails communicating with customers effectively in a bid to build a strong relationship with them. Marketing communication according to Bythe (2000, p.17) is all messages and activities geared towards informing, influencing and persuading the consumer to buy a product or service. Marketing communication is important for any organization because it can also be used as a differentiator of a company’s products and services especially in a market where competing brands and products are very difficult to differentiate from each other. For instance, Brassington and Pettitt (2003, p.14) note that it is not simple for a consumer to differentiate easily between Highland Spring and Perrir mineral water products because they are quite similar. Therefore, marketing communication can be used as a tool for differentiating the two products, as well as build a strong bond with consumers. In this regard, marketing communication exhibits four elements commonly referred to as the “DRIP” element namely differentiate, reinforce, inform, and persuade according to Bythe (2000, p.17). Research indicates that landscape of marketing communication has changed significantly over the past few years (Creamer 2012). This is attributed to the technological advancements and globalization that has led to the emergence of digital technology thereby changing how information is received and disseminated. This has particularly affected most marketing strategies employed by different companies all over the world. In this regard, companies have been forced to adapt to changes in the market in order to be able to attract enough customers and remain competitive in the industry or market (Webster and Ksiazek 2011, p.13). There, are three most important features that define marketing communication landscape namely media fragmentation, audience fragmentation and restricted budgets. Therefore, companies must be able to understand how these changes shape the industry in which they operate and provide an effective respond in order to remain relevant and competitive. This paper will start by analyzing how different forms of fragmentation such a media and audience affects the marketing communication landscape in a theoretical perspective. It will then examine how Ford Motors is responding to the recent changes having been brought about by media and audience fragmentation, as well as restricted budgets. Media and audience fragmentations are arguably the most widely observed impacts of digital media. Digital media has led to the emergence of many forms of media through which information can be accessed and disseminated which, in turn, has made consumption more distributed (Yim 2003, p.114). Whereas some people are happy about the changes brought about by digital media, some are wary of its consequences. However, the widely acknowledged fact is that fragmentation brought about digital media has particularly affected the traditional forms of media most of which have become bleak as the audience moves towards the digital age. Webster and Ksiazek (2011, p.14) argue that fragmentation is a product of the interaction between audiences and the media. In this regard, socialist Anthony Giddens formulated a theory known as the ‘theory of saturation’ in 1984 in an attempt to explain the function of the media setting (Wbster 2011, p.41). The theory hypothesized that the media setting is jointly constructed based on the interaction between agents and structures-something Gidddens called a “duality” (Webster 2010, p.18). Three factors according to this theory were identified by Giddons to shape fragmentation namely media providers, media users, and media measures. Giddons noted that one of the main causes of fragmentation is the increasing emergence of media products and outlets that continually compete for public attention (Napoli 2011, p.63). Napoli 2011, p.63) argues that this normally happens when an established media such as radio or TV expand or when a new type of media like the Internet enters the competition. Turow (2006, p.45) categorized the former as intra-media fragmentation and the later as inter-media fragmentation. Turow (2006, p.45) argues that the media providers main objective is to attract the attention of users, resulting in fragmentation. The second factor shaping fragmentation according to Giddens is the media users. In this regard, a majority of theorists expect media consumers to choose products they want most. These preferences are thought to reflect the needs of users, their attitudes, moods, and tastes but that their actions are rational because they serve the users’ psychological predispositions (Napoli 2011, p.64). The third factor shaping fragmentation according to Giddons is the media measures. In this regard, it is argued that in order for media providers to work appropriately they must first understand what users are doing. Giddons argued that media measures give media providers this opportunity to certify that they have an audience, amend their plans for managing attendance and monetize outcomes. These types of measure have been termed by academics as ‘market information regimes’ (Napoli 2003, p.15). As earlier stated, the media industry has experienced huge growth over the last few decades. This has particularly been attributed to the digital revolution, which has been witnessed over the last few years. In fact, the digital revolution has made it possible for consumers to have access to more channels and magazines. In addition, the Internet has also emerged from which consumers can get the kind of information they need regarding a particular product or service. Findings also show that there has been an increased level of advert avoidance over the past few years (Napoli 2003, p.15). At the same time, the new developments have done away with most of the traditional media, which have been rendered bleak. Such high level of media fragmentation has made life extremely difficult for individuals and marketers. This is because media fragmentation has increased the choices of what consumers can watch, read, or listen (Creamer 2012). This implies that advertising can no longer be confined to just a single channel as was the case before, rather has to cover a multitude of channels in order to increase exposure, thereby increasing chances of the advert reaching the entire targeted market segment. Van den Bulck (2006, p.41) notes that the public are consuming a variety of products and services across a greater device ranges. At the same time, he argues the behaviors of media differ from one media to another. He attributes this to the developing and changing nature of media society. Such media fragmentations have a huge impact on both marketers and individuals. Tewksbury (2005, p.56) also notes that this fragmentation of the audience is not homogenous by pointing out that some individuals in society do find themselves left behind. In this regard, findings have showed that the take-up of the digital media has been different according to socio-economic group and age which has left some groups of people in society left behind from the revolutionary growth of media choice (Tewksbury 2005, p.56) Ford Motors is one such company whose marketing communication has been affected by the changing nature of marketing brought about by media fragmentation, audience fragmentation and restricted budgets. In this regard, Ford has had to adopt new marketing communication techniques that are compatible with the new changes being experienced in the business world today (Bythe 2000, p.26). This is based on the fact that Ford understands that for the company to attract customers to the company, it must adapt to the changing times failure to which it might remain irrelevant which might result into huge losses. It is for this reason that Ford has been able to command a wide market niche in the U.K., one of the countries where Ford has a huge presence and customer base. Van den Bulck (2006, p.41) argues that media fragmentation is increasing very fast with new devices coming in the market such as the PVR, which will allow audiences to control their TV through ad-skipping and time-shifting. It is expected that such a move will be a money-spinner for the company taking into consideration the fact that Sky Plus, has already installed in about 397,000 homes across the U.K Van den Bulck (2006, p.47). However, this move will have a greater implication for the future television ads. This is because it will decrease ads viewing among many TV audiences who will be skipping the ads put of the channel. In fact, the media fragmental has already reduced the share of television advertising, which is expected to increase even further once the PVRs becomes operational as the garget is expected to fragment the audience further. As a result, marketing pundits claim that, with the increasing fragmentation of the media and the audience, advertisers will have to begin fragmenting their audiences in accordance with the ownership of the technology. Rust, Kamakura, and Alpert (1992) claim that media fragmentation has transferred entertainment and information control at the hands of consumers, a scenario that has had a huge impact on traditional ads, which employed interruption tactics to attract the attention of consumers. Findings also show that it is no longer easy today to attract a large audience to a particular program the way it used to be before Tewksbury (2005, p.62). However, some isolated cases still exist such as the Queen’s golden Jubilee that drew a large audience to the event. However, it is reported that television has lost its ability to draw people together in the U.K. and beyond on a daily basis, but only does so during a national event like the one witnessed during Queen’s golden Jubilee (Tewksbury 2005, p.62). Therefore, since television can no longer bring mass audience, mass communication has also become impossible, something that marketers must be aware. Audience fragmentation is also increasing posing a big challenge to marketers. This is after a survey conducted in the U.K. showed that many consumers no longer want to watch repeat programs, ads not an exception. Nevertheless, as has been the tradition, ads tend to appear on the screen several times interrupting the flow of program something that viewers no longer want. As a result, with the invention of PVR, it is most likely that these ads will be skipped by most TV audiences. Ford Motors is quite aware of such a media fragmentation has established new marketing communications in place of television ads. It is reported that Ford traditionally relied much on a few television channels for product advertisements. However, the company has had to change to the digital world, which has led to the emergence of many TV channels and videos where products can be advertised to the audience (Monge and Contractor 2003, p.20). As earlier indicated, the recent development of the digital media has resulted in an increase in TV channels across the U.K. and beyond where Ford operates. This has given people a wide range of channels to watch programs making it difficult to predict with certainty the channels watched most by audience. As a result, Ford has responded to this kind of media and audience fragmentation by sponsoring several video and television programs that use Ford products and in the event advertises these brands to customers without knowing. This strategy has also proved very cost effective because many TV channels across the U.K. charge exorbitant prices on ads (Monge and Contractor 2003, p.20) Ford is reported to have used this strategy from 1956, as was the case in the Hot Rod Girl program that used the 1956 Convertible brand. Ford also reintroduced this strategy in 2007/2008 television season where Ford used several brands (Bythe 2000, p.28). So far, Ford is reported to have placed at least 70 vehicles in at least 29 television programs. Ford products have also been rolling on casinos the most popular being the 2008 Lincoln MKX. All this strategies have enabled Ford to reach many audiences thereby resulting in increased sales volume. Monge and Contractor (2003, p.22) note that media fragmentation has also resulted in other new forms of communication through which consumers can get information regarding a particular product or service. They argue that the invention of these new technologies has rendered most traditional modes of advertising such as television less relevant. In this regard, Monge and Contractor (2003, p.22) reveal that the invention of the Internet has revolutionized the media industry as a good number of audience nowadays spend much of their time on the Internet, as opposed to watching television. This is because the Internet can be accessed through various modes such as computers at homes and offices, ipads, and Internet-enabled smart phones Tewksbury (2005, p.68). This implies that people can access the type of information regarding a product at any time and any place. As a result, consumers have shown high preference for ads placed on the website contrary to other forms of media advertisements. This is because, with the Internet, they do not have to sit and watch a television advert in order to know the existence of a given product in the market since with the Internet connection, such information can be got at any time. Therefore, companies and marketers have been compelled to change in accordance with this kind of emerging audience fragmentation. In fact, many companies today post their products and services on their websites where consumers can get the products they need. Such kind of media advertising has been associated with a lot advantages to companies that do so. For instance, it has proved to be very cost effective compared to the other forms of advertisements. In addition, Internet ads have a wide coverage as it can reach every audience all over the world within in a matter of second. Further, Internet usage has been on the increase particularly the social media networks giving companies opportunities to advertise their products. Moreover, Internet has made it possible for companies to be able to engage their customers directly thereby promoting real-time feedback, which consumers have been yarning for. This has rendered some traditional forms of media marketing tools such as newspapers less effective as very few people nowadays buy newspapers or watch ads on televisions (Webster 2010, p.87). Ford Motors understands the impact that the Internet has had on its traditional marketing communication strategies. As earlier indicated, Ford used to depend much on TV ads for reaching out to its customers. However, with the increased media and audience fragmentation, Ford has reduced its dependent on the traditional marketing communication tools by adopting new technologies such as the Internet, which have changed greatly the marketing industry and social life over the past few years. In this regard, Ford has introduced the Internet marketing as a technique of reaching out to a large base of audience (Turow (2006, p.55). The company is reported to have introduced its first Internet marketing in 2003 during the launch of its new F-150 pickup truck (Turow (2006, p.55). This was arguably the largest marketing campaign ever done by Ford in five decades. In fact, Ford’s chief executive officer described this campaign as being the most important campaign that Ford has ever had. Since then, the company has embraced this type of marking communication as a means of reaching out to its target audiences. With the Internet in place as a marketing tool, what Ford has been doing is only to post its brands on its official website where customers can check out for the brands they need (Creamer 2012). In addition, the website also provides a full description of the features of the vehicle plus the price tag. As a result, the customer is only required to go to Ford’s website and choose the brand and model with the features they deem fit their taste and preferences. The company is reported to have been experiencing a rise in sales especially from those getting to know of Ford’s products via the Internet than from other sources (Bythe 2000, p.33). Most of these customers cite the fact that the websites gives them full description of the brand they need and the prices charged, which other forms of ads do not offer. The emergence of the Internet has also led to the emergence of social networking as a way of reaching out to customers. Webster (2010, p.107) reveals that increased audience fragmentation has led to a situation in which the audience nowadays loves to be engaged in every aspect of their lives. This has led to the emergence of a number of social networking sites such as twitter, facebook, flickr, mySpace and You Tube among others, through which people engage each other in conversation. These social networks have proved a very useful marketing tool for many companies all over the world. This is because it promotes group buying, which is very beneficial for companies (Turow (2006, p.59). This is because in case a company has products of high quality that one of the consumers on the social network has used, it is highly possible that the consumer will recommend that product and the company, which manufactures the product in question. This has promoted sales in many companies without necessarily having to spend huge sums of money advertising products. As a result, many companies today have taken advantage of social networks as a mode of advertising their products to the audience by opening up a company social network site. Ford is among companies that have taken advantage of social networking as a mean of reaching out to its customers. This is after the company opened a social networking site where customers can present their queries and feedbacks regarding a particular product (Brassington and Pettitt (2003, p.19). The social networking site has also enabled the company to give customer real-time feedback regarding any request or query regarding the company’s services. The close ties between the Ford and its customers aided by social networking has helped build a strong relationship between Ford and its customer something which has also resulted in increased sales (Creamer 2012). In addition, it has promoted group buying as members of the social networks also help in spreading the message regarding the quality automobiles provided by Ford. Research also shows that audience fragmentation has resulted in a situation where consumers no longer love having to travel to the shop or to a company to make his or her purchases (Turow (2006, p.62). This is after finding showed that a majority of people all over the world nowadays like what is called ‘home shaping’ where they place orders of the products they needs via the Internet and pays for products online without necessarily having to travel (Brassington and Pettitt 2003, p.22). This kind of audience fragmentation has been causing a lot of challenges to marketers and companies. As a result, companies have had to respond appropriately to such changes in order to attract as many customers as possible. Ford Motors is one of the companies that have responded appropriately to this change in audience fragmentation. In this regard, Ford has established an e-commerce, which allows customers to shop online via their official website. Through e-commerce, customers can place their orders online after which the specified automobile is delivered to the customer’s place after remitting payment online. E-commerce has enabled Ford to increase its customer base even in other countries where the company do not have a presence. E-commerce has also proved to be one of the most cost effective ways creating awareness and making purchases of a product that is sold in a foreign country. In fact, research indicates that many companies throughout the U.K. currently offer e-commerce as a means of reaching out to their customers (Creamer 2012). Research has also shown that viral marketing has been on the rise over the past decade (Bythe 2000, p.41). This type of marketing has been seen mainly with trendy brands such as cars manufacturing companies that use this new marketing technique to lure their audience to the product. Brassington and Pettitt (2003, p.23) noted that companies are increasing adopting viral marketing, a scenario that has fueled discussion on products offered by such companies. They noted that in case consumers have a bad experience with the product in question, such experiences are shared through their networks. Ford recently responded to this kind of fragmentation in launching its new brands by giving away its Focus cars to young celebrities in a bit to attract some driver for its new brands. This has proved successful as the viral technique has helped attract a significant number of drivers to its brand. Research also indicates that recent years have seen an increasing shift towards a more radical type of brand extension (Brassington and Pettitt (2003, p.28). In this regard, it is noted that media fragmentation has made it difficult for marketers and companies to reach customers with brand messages. This has made it necessary for companies to expand their product range particularly for companies with popular brand names. In response, Ford has ford had expanded its product range over the years by manufacturing cars based on consumer taste and preference. For instance, Ford has had to change from just manufacturing tracks to small and sport cars, whose demand is reported to have increased significantly over the years. Research conducted in the U.K. indicated that a majority of this intending to buy cars say they would want to buy small cars (Turow (2006, p.68). Their reasons for this vary with some arguing that they prefer small cars because they are relatively cheaper than large tracks. Radio is another media that have undergone fragmentation process over the years (Webster and Ksiazek 2012, p.43). In this regard, a survey conducted in the U.K. indicates that media fragmentation has led to an increased growth of radio stations in the U.K. The survey found out that every household in the U.K. now has at least 12 radio stations to choose from. Unlike other forms of media that have greatly been affected the changing media market, findings show that radio continues to experience growth due to the large number of the audience listening to radio (Webster and Ksiazek 2012, p.44). At the same time, research shows that the increase in radio stations has led to the emergence of radio stations that offer listeners different kind of messages and products they need with some specifically targeting youths while others are targeting adults. As a result, a large audience in the U.K. can still be targeted using radio commercials. In fact, Ford Motors, has for has depended much on radio as one of its preferred mode reaching outs to its target customers. However, the only shortcoming Ford has experienced with radio advert is that the information is relayed to the audience verbally without picture display. Audience fragmentation has also increased use of directing marketing as a means of targeting consumers. Research indicates that many companies nowadays use direct marketing as a means of advertising their products due to the fact that the nature of consumers has been changing very first making it easy to reach consumers directly (Yim 2003, p.119). In addition, the technological advancements have also enhanced the effectiveness of direct marketing as a method of reaching out to the audience. In fact, many companies have responded to these new developments as a means of increasing their customer base. Ford is one of the companies that use direct marketing, which it does by conducting road shows to show, case their products. Conclusion Marketing is indeed a very important activity that no company can do without. This is because it is through marketing that consumers are informed and persuaded to buy the products offered by a company. Without marketing probably targeted consumers may not know of the existence of a product or services offered by a company. However, the growth of the digital media in recent years has impacted hugely on the various traditional marketing communication modes adopted by different companies for reaching out to the audience such as TV, radio, and newspapers. This is because the growth of digital media has resulted in media and audience fragmentation, which have shaped the marketing communication landscape. In this regard, the emergence of new media forms such as the Internet and PVR has shifted advertisers from the traditional modes of advertising because few people still rely on these traditional media for information. This has forced many companies to respond appropriately to changes in order to remain relevant and competitive as has been witnessed with Ford. Certainly, it’s an appropriate response has made it remain one of the giant automobile companies in the U.K. Word count-4110 words References Brassington, F., & Pettitt, S. (2003), Principles of Marketing (3rd Edn). Prentice Hall, London. Bythe, J. (2000), Marketing Communications. Prentice Hall, London. Creamer, M. (2012), Marketing's Next Five Years: How to Get From Here to There. http://adage.com/article/news/marketing-s-years/237616/ (Accessed on 22 March 2013). Monge, P. S., & Contractor, N. S. (2003). Theories of communication networks. New York: Oxford University Press. Napoli, P. M. (2003). Audience economics: Media institutions and the audience marketplace. New York: Columbia University Press. Napoli, P. M. (2011). Audience evolution: New technologies and the transformation of media audiences. New York: Columbia University Press. Rust, R. T., Kamakura, W. A., & Alpert, M. I. (1992). Viewer preference segmentation and viewing choice models of network television. Journal of Advertising Research, 21(1), 1- 18. Tewksbury, D. (2005). The seeds of audience fragmentation: Specialization in the use of online news sites. Journal of Broadcasting & Electronic Media, 49. 332-348. Turow, J. (2006). Niche envy: Marketing discrimination in the digital age. Cambridge, MA: The MIT Press. Van den Bulck, J. (2006). Television news avoidance: Exploratory results from a one-year follow-up study. Journal of Broadcasting & Electronic Media, 50(2), 231–252. Webster1, J.G., & Ksiazek, T.B. (2012), The Dynamics of Audience Fragmentation: Public Attention in an Age of Digital Media: Journal of Communication. Volume 62, Issue 1, pp. 39–56. Webster, J. G. (2011). The duality of media: A structurational theory of public attention. Communication Theory, 21, 44-67. Webster, J.G., & Ksiazek, T.B. (2011), The Dynamics of Audience Fragmentation: Public Attention in an Age of Digital Media: Journal of Communication. Pp. 1-33. Webster, J. G. (2010). User information regimes: How social media shape patterns of consumption. Northwestern University Law Review, 104(2), 593-612. Yim, J. (2003), Audience concentration in the media: Cross-media comparisons and the introduction of the uncertainty measure. Communication Monographs, 70(2), 114-128. Read More