Marketing Communication Model: The of Nescafe - Case Study Example

Marketing Communication Model al Affiliation] TABLE OF CONTENTS 2. INTRODUCTION 3. LITERATURE REVIEW 3 Marketing Communication and Consumer Decision Making Process 3.2 Marketing Communication Models 3.2.1 The AIDA Model 3.2.2 Mindscape of Integrated Marketing Communications Model 4. MODEL CONCEPTUALIZATION 4.1 Model Explanation 5. NESCAFE AND ITS CURRENT MARKETING COMMUNICATION ACTIVITIES 6. ANALYSIS – BEYOND THE CUP – THE NESCAFE PLAN 7. RECOMMENDATIONS References ABSTRACT Planning communication campaigns is a vital aspect of marketing planning. It is very important to decide on the communication plans so as to make sure people know about the existence of the product as well as about any new updates the company feels its consumers should know. How well a company decides its communication strategies will decide the feedback and response it will get from its consumers. This report discusses communication models in detail and arrives at a model which can be used for evaluating communication effectiveness of any company. Nescafe is selected for the analysis of its communication campaign based on the model developed by combining several existing communication models. 1. INTRODUCTION Marketing communications, as defined by Egan (2007, p. 1), is “the means by which a supplier of goods, services, values and/or ideas represent themselves to their target audience with the goal of stimulating dialogue leading to a better commercial or other relationships”. Marketing communications is said to be good when it takes into account three primary elements i.e. audience, message and media (Dahlén, Lange & Smith 2009). These three elements are interlinked and the decision regarding marketing communication tools must take into account all three of them. Marketing communication tools are also known as marketing communications mix or promotional mix. Egan (2007, p. 17) defined these tools as “tools used in marketing communications such as advertising, sales promotion, public relations, personal selling, direct marketing etc”. Now the company has to decide how well it can integrate these tools in order to ensure they get a positive feedback from the whole communication process. Communication process is presented below. Figure I: Communication Process (adopted from Lamb, Hair & McDaniel (2011, p. 477) There are several marketing communications models developed after much research on the effect of communications on product marketing. All of them try to explore different facets on how consumers perceive information provided to them by the marketer and how they react to it. Since positive reaction/feedback enhance company’s profits therefore communicating a product in a right manner to the target audiences is very important. Following head discusses the marketing communication models in detail with particular emphasis on two models, Strong’s AIDA model and Mindscape of Integrated Marketing Communications Model (extended version presented by Hartley & Pickton 2010). 2. LITERATURE REVIEW 2.1 Marketing Communication and Consumer Decision Making Process Marketing communications which is also referred to as Integrated Marketing Communications is “a process of using a wide range of promotional tools working together to create widespread brand exposure” (O’Guinn et al p. 7). Marketing communications should definitely be “concerned with engagement: the planned, integrated and controlled interactive dialogues with key target audiences to help achieve mutually beneficial objectives” (Dahlén, Lange & Smith 2009, p.3). There are different marketing communications models and each of these models focus on consumer behavior guiding the consumer decision making process. All of these models have tried answering the same question i.e. how does advertising work? Consumer decision making process helps decide marketing communication strategies as stated by Shah & D’Souza (2009, p. 173) “the understanding of consumers psychology, i.e. how consumers think, feel, reason, and select between different alternatives, as well as their decision- making process, helps managers in planning and adapting their communication”. Consumer decision making process is simply explained by the Engel-Kollat-Blackwell model (Jack 2005, p. 129) which suggests that once the customer need is stimulated (via internal or external stimuli) he strives to satisfy it (Rathus 2011). He looks for the alternatives and after keen evaluation decides in favor of the most suitable solution. Once the customer has the product he then experiences it and that experience will decide his post purchase behavior. This basic consumer decision making process directs the communication models in that how to communicate with consumers when they are at different stages of decision making process. 2.2 Marketing Communication Models There are several communication models however for the purpose of this assignment AIDA, the most primitive model and 2.2.1 The AIDA Model AIDA model is one of the earliest hierarchy-of-effects communication models (Heymer 2008). It is developed by Strong and suggests four concrete stages of consumers’ behavior linking them to communication strategies of advertisers. The model is presented below and it shows how consumers react to different messages of the advertisers and how those messages develop their interest motivating them to take an action (product purchase) (Tyagi & Kumar 2004). Figure II: AIDA Model Though this model suggests four distinct and predictable stages however consumers not always behave in predictable manner and often their actions are not as straight forward and systematic as suggested by this model (Wells et al 2007). Advertisers have worked on AIDA and presented many extensions on it. Some has added more detail to each step and gave new names to them whereas some has introduced new steps in between the existing one. Heymer (2008) has related marketing communications mix (or promotional mix) with AIDA model based on the model of Pickton/Broderick (2005) and came up with a relation between promotional mix elements and the AIDA stages. Heymer (2008) suggested that advertising and public relations are the tools that work best to seek attention, create awareness and develop interest whereas to arouse desire and force consumers to act in a certain way, sales promotion and personal selling is required. Heymer (2008) explained that desire arousal and action is not an automatic process once the interest is developed, rather only proper communication strategies will get particular action from consumers. Heymer (2008) presented AIDA linked with promotional tools as follows. Figure III: Linking Promotional Mix and AIDA adopted from Pickton/Broderick (2005), cited in Heymer (2008, p. 17) Further there are other communication models which can be well considered as an extension of AIDA. The Colley’s DAGMAR model and Lavidge and Steiner’s hierarchy effects model both works on similar lines where DAGMAR suggests that ‘awareness’ is created through advertising which imparts ‘knowledge’ to the consumers and several advertising exposures results in developing ‘liking’ and ‘preference’ which further results in ‘conviction’ and ultimately generates ‘purchase’ action. Hierarchy effects model has comparatively fewer steps but communicates the same message that prior to advertising exposures consumers are in the phase of ‘unawareness’, once they are exposed to the advertising they comes to the next phase of ‘awareness’ then develops ‘comprehension’ and ‘conviction’ which drives particular ‘action’ from consumers (Lancaster & Massingham 2010). Lancaster & Massingham 2010, p. 247) suggests that potentially the essence of all these models is similar. They further discussed Rodgers’ product adoption model, also known as ‘innovation adoption model’, which is said to add to these stages by defining the stages as awareness, interest, evaluation, trial and adoption. Koekemoer & Bird (2004) while discussing all of the above given models as response hierarchy models presented by Kotler (2000) added communication model to the list which shows consumer progression from exposure till the final behavior with intermediary stages as reception, cognitive response, attitude, and intention. Koekemoer & Bird (2004, p. 91) explained that “all the models assume essentially that the buyer passes through cognitive, affective and behavioral stages”. Koekemoer & Bird (2004, p. 90) presented response hierarchy model adopted from Kotler (2000) as follows: Figure IV: Response Hierarchy Model [Koekemoer & Bird (2004, p. 90)] Therefore we can say that AIDA provides the basis for all the communication models and hence is the reason it is chosen for the purpose of this assignment. 2.2.2 Mindscape of Integrated Marketing Communications Model The world has changed drastically from what it was a few decades ago. Just like everything has changed there must be a change in the way marketers used to approach their audiences. Since consumers are becoming savvier and they are now exposed to much more information from what they can access a few decades ago, there is a need that marketers too design different as well as competitive strategies to reach audiences. It is obvious that as the consumers become more tech savvy there is a need to remodel the selling techniques businesses used to use (Brennan & Schafer 2010). All these changes force marketers to rethink their marketing communications (Finne & Grönroos 2011). Integrated marketing communication has come up as a solution as it suggests that all points of contact must communicate a similar message to the audiences. However, Finne & Grönroos (2011) even suggests a move from integrated marketing communications to relationship communication as they suggest that IMC is an inside-out approach whereas to ensure receiver’s long-term commitment relationship communications become vital. In this paper, second model which will be focused is new mindscape of integrated marketing communications model developed by Hartley & Pickton (2010). They presented the model as given below where they integrated various aspects to come up with a compact model which combines public as well as private consumers and suggests how dialogues should flow between these parties. They combined the aspects of corporate and individual communications and move from non personal to personal communications within the model of IMC. They explained when the communication is non-personal it is one way and is largely targeted on publics whereas when the communication is personal it is two way and is largely targeted on individuals. Figure V: Mindscape of IMC Model Reason for selecting the above given two communications models is because one (the AIDA model) is the simplest and the second one (mindscape of IMC) is the complex where the former discusses the most basic aspects of consumer responses and the later discusses the intricate combinations of marketing communications. Based on the literature and the two models presented above following head will present a new model which is found most effective in evaluating marketing communications campaigns. 3 MODEL CONCEPTUALIZATION From the above given discussion following model can be developed which will guide the analysis of the marketing communication campaign. Figure VI: Model for the Analysis of Marketing Communication Campaigns 3.1 Model Explanation The newly designed model presented above is based on the basic AIDA model; the steps in between AIDA stages are presented in dotted boxes. Several Response Hierarchy Models presented by Kotler (2000) as discussed in the literature are combined together. As the consumer moves from ‘attention’ phase to the phase of ‘interest’ they are exposed to several brands and receive different information which enhances their knowledge about the variety of available products. As the consumer moves to the phase of ‘desire’ he/she develops attitude regarding a product and develops liking and preference. As the consumer moves from ‘desire’ phase to ‘action he/she evaluates alternatives and tries the products he intends to buy from among a set of products. And finally upon reaching the ‘action’ phase consumer adopts a product and shows purchase behavior regarding a particular product. Elements of noise and feedback from the generic communication process are also incorporated in this model. Pickton/Broderick (2005) model (in Heymer 2008, p. 17) further suggests the promotional mix element that fits in each AIDA stage and as the communications move towards being one way and non-personal probability of getting feedback decreases as the sender is not sure how the receiver will react to the messages. On the other hand, as the communications move towards being two way and personal, probability of getting feedback increases because personal communications secures the chance to get feedback then and there. Now it depends upon company how it designs its communication. 4 NESCAFE AND ITS CURRENT MARKETING COMMUNICATION ACTIVITIES Nescafe is a brand of Nestle which claims to be the world’s most trusted coffee. People enjoy it worldwide. Nescafe is committed to provide quality in an environmental friendly manner. According to Nescafe official website “around 4,600 cups of NESCAFÉ are consumed every second”. This is truly a big number to create a difference and of course there are other brands of coffee as well, but this huge number is evident of Nescafe’s excellent communication strategies. This also shows the competitive position Nescafe secures in the world of competition. Nescafe, in the real sense, is ahead of its competitors in many aspects (Kettle et al 2010) because it not only aims to offer a cup of coffee to its consumers but sweet moments with each sip of the coffee. Nescafe serves coffee which is categorized to target different consumers; everyday coffee, premium coffee, super premium coffee and decaff are a few categories Nescafe’s coffee is categorized into. Nescafe’ has given a new meaning to consuming coffee. They urge consumers to seek special moments in life with every sip of the coffee they consume. Nescafe brand is involved in different communication strategies and have used and is using several channels to stay in touch with their consumers. Though Nescafe is far ahead of the attention seeking stage because worldwide population is well aware of this brand but still as it introduces new campaigns it needs to attract consumers’ attention towards its new offering. Nescafe has already established a name for its brand and has secured a special place in its consumer’ heart through series of communication strategies it has been implementing through all these years since 1930’s when it was introduced. Looking at the long communication history and the ease of summarization the most recent campaign of Nescafe - Beyond the cup – The Nescafe Plan, is selected for the purpose of this assignment. Nestle communicates to its client that it is committed to offer quality beyond the cup and strives hard to make it happen in a sustainable manner. Following discussion offers a thorough analysis of The Nescafe Plan- Beyond the cup! 5 ANALYSIS – BEYOND THE CUP – THE NESCAFE PLAN Figure VII: Beyond the cup – The Nescafe Plan Applying the model discussed for the analysis of marketing communication campaigns on ‘Beyond the cup - The Nescafe Plan’ (see Appendix-I for Detailed ad of Beyond the cup – The Nescafe Plan), makes it evident that Nescafe has strived truly hard to communicate this message to the consumers. Since desire and action to consume Nescafe already exists, there is only a need to make people aware of the current practices of the company. By making ‘quality beyond the cup’ a part of all its messages, Nescafe has done a great job of informing consumers about its concerns towards offering quality solutions that is beyond the cup. Nescafe adopts a collaborative approach while working with farmers as well as with its coffee collaborative and strives hard to make sure it contributes well towards the sustainable future. Nescafe promotes responsible farming, responsible production and responsible consumption. It aims hard to make sure sustainable solutions are there at each stage from faming to consumption. This strategy is one of the best strategies companies could adopt to reach consumers i.e. hitting the market with messages that promotes company is concerned about environmental friendly solutions and is not only concerned with sales of its products but also about the wellbeing of its consumers. With Nescafe always adopting an outside-in perspective, this is just another addition to the list where Nescafe is hitting its market with responsible marketing. It communicates and practice love and respect for nature and help for farmers and sustainable consumption patterns at consumer’s end. Today, when people are becoming environment conscious and looking for solutions that ensure less carbon footprints, there could not be a better way to hit the market to make them aware of the current proceedings of the company. From the time of its establishment Nestle, particularly Nescafe has developed it communication campaigns in a way which seems to be personal even if it uses non-personal communication channels like advertising. Nescafe has developed a deep relationship with its consumers due to which even if it communicates with its clients via TV or print ad, they (the consumers) feel personal touch. This is the beauty of Nescafe’s communication. Though noise is there but looking at the popularity of Nescafe where 4600 cups of Nescafe are consumed every second that noise becomes negligible. Feedback comes from the fact that the figure in 2008 was 3000 cups per second whereas today it is 4600 cups per second. This shows the effectiveness of communication campaigns of Nescafe 6 RECOMMENDATIONS For a company like Nescafe which secures a personal touch even in non-personal ways of communication, there could not be a better advice than to follow the same patterns as they are following. They are on the right track and this move from ‘enjoy every sip’ and ‘special moments in everyday life’ to ‘beyond the cup - The Nescafe Plan’ campaign is truly appreciable. They know what their consumers needs are at the moment and how they should address consumers in order to keep and nurture that special bonding between Nescafe and its consumers. They are on the same lines as pointed out in the literature several times and that is when the message is combined with other factors (which is this case is combining the message that Nescafe care for special moments in its consumers’ everyday life with its concern for the consumers’ well being and environmental sustainability) it enhance the meaning creation for consumers (Domzal and Kernan 1992, Osgood, Suci, and Tannenbaum 1961, Friedmann and Zimmer 1988, Belk 1975, McCracken 1986 and Stern 1996).therefore we can conclude that Nescafe is very much on the right track of attracting consumers based on one of the today’s hot issues – environmental sustainability. References Belk, R 1975, Situation variables and consumer behavior, Journal of Consumer Research, 2 (December), pp. 157–64. Brennan, B & Schaffer, L 2010, Branded!: How Retailers Engage Consumers with Social Media and Mobility, USA and Canada: John Wiley and Sons. 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Jack K 2005, Video demystified: a handbook for the digital engineer, ed 4, Newnes Publishers. Kettle et al 2010, Starbuck – Integrated Company Analysis, Wisconsin School of Business [online], viewed 4 November, 2011, http://business.library.wisc.edu/resources/kavajecz/10_Fall/Starbucks_Report.pdf Lamb, CW, Hair, JF & MeDaniel, C 2011, Essentials of Marketing, USA: Cengage Learning. Lancaster, G & Massingham, L 2010, Essentials of Marketing Management, USA and Canada: Routledge. McCracken, G 1986, Culture and consumption: A theoretical account of the structure and movement of the cultural meaning of consumer goods, Journal of Consumer Research, 13 (June issue), pp. 71–83. Nescafe official website, 2011, viewed 4 November, 2011, O’ Guinn, Allen & Semenik, RJ 2010, Promo, USA: Cengage Learning, 2010 Osgood, C, Suci, G & Tannenbaum, P 1961, The measurement of meaning, Urbana, IL: University of Illinois. Rathus, SA 2011, Psychology: Concepts and Connections, USA: Cengage Learning. Shah, K & D’Souza, A 2009, Advertisement and Promotions: An IMC Perspective, India: Tata McGraw-Hill Education. Stern, B 1996, Textual analysis in advertising research: Construction and deconstruction of meanings, Journal of Advertising, 25(6), pp. 61–73. Tyagi, CL & Kumar, A 2004, Advertising Management, New Delhi: Atlantic Publishers & Distributors. Wells, WD, Burnett, J & Moriarty, S 2007, Advertising: Principles and Practice, ed 7, India: Pearson Education India. Appendix I – Detailed ad of Beyond the cup – The Nescafe Plan Read More