Enhancing Marketing Communication Mix Effectiveness for Fiat 500 - Literature review Example

ENHANCING THE EFFECTIVENESS OF MARKETING COMMUNICATION MIX FOR FIAT 500 By: Candi s FACULTY OF BUSINESS Executive Summary Marketing communication is a process through which a company interacts with the customers of its product with an aim of convincing them to purchase and use the product. Thus, in marketing the Fiat 500, it is important to attract consumers to the product by highlighting some of its unique features which are lacking in other automobiles and provide them with constant support to help them remain engaged while they are making their mind. Maintaining consistency in marketing messages through an integrated marketing communication mix in the modern period of information democracy and a judicious mix of old and new media presents the most effective way of marketing the Fiat 500. An advertising message that highlights the unique capability of the Fiat 500 to upgrade to an electric car delivered on billboards outside of retail stores, on buses and outside of underground stations will present heightened consumer interest cheaply to enhance the effectiveness of the marketing communications mix. Moreover, communication of marketing information can be enhanced through the website for Fiat 500 through which more information can be delivered to the customers in the most convenient and interactive manner. Integrated marketing communication on the automobile will also involve images and messages on social media, electronic mail, print and broadcast media which communicated the same idea which aims at promoting the product to the customers in a convincing manner. Table of Contents Executive Summary 1 Table of Contents 2 Introduction 3 Fiat 500: Situational Analysis 4 Marketing Analysis 4 Performance and sales 4 Competition 4 Creation of AIDA in Fiat 500 Marketing 5 SWOT Analysis 6 Communication analysis 7 Objectives Marketing 9 Marketing objectives 9 Communication objectives 9 Campaign Strategy 9 Campaign Tactics 9 Action 11 Control 11 Created Idea 11 Conclusion and Recommendations 12 Appendix 12 References 13 Introduction Marketing communication is essential in the promotion of a product and integrating the promotional messages and images in all promotional tools provides the most effective way of creating an impact within the market. Every individual, business, company or organisation has a need to communicate, but it is important to remember that competitiveness and communication are highly correlated in the real world because without effective communication, it is impossible to convince others to buy (Pattuglia, 2011, Pp. 5 – 10) and (Percy, 2008, Pp. 5 – 10). This paper is a report on integrated marketing communication of Fiat 500 to the market which includes a situational analysis of the automobile, the objectives of the marketing campaign, tactics, actions taken, control and a marketing idea. Fiat 500: Situational Analysis Marketing Analysis Performance and sales According to the Automotive Design and Production (2011, p. 43), the performance of Fiat 500 has fallen below expectations and the target goals. For example in the third quarter of 2011, the company sold 21, 300 automobiles which is far less as compared to the 40, 000 goal. The decreased performance therefore calls for effective marketing communication strategy to improve the sales. Cammarata (2006, p. 5 – 10) says that Fiat, which built its first car in 1899, is one of the pioneers in the automobile industry and better performance is expected with the application of appropriate marketing communication approach. Fiat is now counting on the success of the new Fiat 500 on the global markets as explained by Griffiths (2007, p. 14 – 15). Competition The major competitors of Fiat 500 include the Kia Picanto, Mini, Smart Fortwo, Chevrolet Matiz, Toyota Aygo, Peugeot 107 and Citroen C1. The Fiat 500 is relatively cheap and economical and has maintained growth in the market share as illustrated by De Craecker (2009, p. 1 – 5). According to Dahlen (2010, Pp. 491 - 548), the marketing campaign for the Toyota Aygo, which is one of Fiat 500’s major competitors, uses below the line communication channels to keep the marketing communications mix economical. On the other hand, the Marketing Magazine (2011) illustrates that Fiat 500 combines more catching advertisement which captures the imagination of the consumers with cheaper and more visible media channels. However, the introduction of a Fiat 500 electric car will be the most competitive feature. Creation of AIDA in Fiat 500 Marketing According to Automotive Engineer (2010), the application of integrated marketing communication mix is a strategy that Fiat 500 uses to attract the Attention of the consumers. Through promotional activities therefore the consumers are made to be aware of the special features of the Fiat 500. The advantages of the Fiat such as lower price are used in the marketing communication of the AIDA to raise the Interest of consumers on the automobile. Through the promotional images and messages in the marketing communication mix, the Desire of consumers for the product is created because they are convinced that the Fiat 500 is the most desirable product for satisfying their needs. The ultimate aim of the marketing communication strategies used in promoting the Fiat 500 in the market is to influence the buying behaviour of the consumers so that they take an Action of purchasing the automobile. SWOT Analysis Strengths The Fiat is an already established brand which has a strong historical and commanding value within the market. Pattuglia (2011) explains that the evocative and glorious power and the Italian style which is represented by the glorious years of the automobile (1950s-1960s) makes the product very appealing. Griffiths (2007) adds that the company has subsidiaries in the international arena which shows that the brand has captured a great share of the automobile market. Weaknesses The culture of the company management is relatively insufficient because there is more concentration in price cuts and capturing the mature market rather than innovativeness. Moreover, Pattuglia (2011) says that there is lack of sensitivity of the management on what is happening within the automobile industry in relation to technological changes and human capital. Moreover, the marketing strategies for Fiat 500 are weak and have not been given sufficient consideration and emphasis. Opportunities Griffiths (2007) asserts that there are marketing opportunities especially in the third world nations where cars are usually simpler and customers require less costly vehicles. Mayne (2011) explains that there are opportunities for redesigning the old Fiat 500 models and introducing innovative technology such as electric powered engine and additional of appealing features. Pattuglia (2011) adds that lliberalization of trade and globalization is opportunities which should be utilized by the company to expand the market and increase sales of the automobile. Threats Technological changes and the associated changes in taste will affect the automobile’s value chain because more flexibility will be required. Additionally, the economic crises especially in Europe have led to the reduction in the demand for the automobile as said by Mayne (2011). Furthermore, there is great competition from innovative automobile products from countries such as Japan which is also threatening the success of the automobile. Communication analysis The working class within towns are targeted by the company’s communication that requires both a means of transportation and a special connection with their cars. In accordance to Pattuglia (2011, p. 19 – 20), the Fiat 500 is more appealing to consumers within the urban life where there is a fast pace of work. The marketing communication of Fiat 500 therefore should also target targets young people within the urban lifestyle including students in various colleges across the country and beyond. The Automotive Engineer (2010, p. 5) adds that a clear communications win for the Fiat 500 that will attract young buyers needs to emphasise the unique capacity for upgrading it into an electric car. Griffiths (2007) asserts that the performance of Fiat 500 in communicating marketing information shows that a better strategy should be adopted as demonstrated by the low sales which fall below the targets and expectations of the company. PEST Analysis Egan (2007) says that political factors such as the Kyoto protocol regulate the environmental consideration in the automobile industry by giving environmental restrictions regarding gas emissions. The European Union also has political implications on the automotive industry which the Fiat 500 has to abide with. The economic force such as the increased market in China’s automotive industry which has over 69% sales for automobiles is an opportunity that Fiat 500 should consider in its ambitions of expanding its market internationally. Griffiths (2007) adds that the economic crisis in Europe has an implication on the sales of the Fiat 500. The growth of the middle class and social awareness on pollution are the social forces which the Fiat 500 will consider in manufacturing, marketing and selling of its product. Furthermore, technological advancement in the automotive industry has a large impact on the performance of Fiat 500. Objectives Marketing Marketing objectives 1. To determine the market characteristics for the Fiat 500 2. To create awareness on the unique features of Fiat 500 within the market 3. To integrate the marketing messages and images in all communication media Communication objectives 1. To expand the share of the Fiat 500 within the young population 2. To increase sales of the Fiat 500 among the working middle class Campaign Strategy Anantachart (2004, p. 105 – 107) points out that to turn consumers into customers it is important that access to information that will help them to decide in favour of the product. Advertising as a marketing strategy for the Fiat 500 which employ attractive adverts and promotional posters through the media are most suitable for the marketing of the Fiat 500. The advertising images within the media should represent the same idea and hence integrate the marketing communication. According to Hart (1999, Pp. 1 – 15), enhancing the communications mix amounts to enhancing awareness and interest through a common message or image presented to the consumers. Campaign Tactics Online communication of marketing information will use the internet through the Fiat 500 website to promote the car. This tactic is very suitable for marketing the automobile because many people have access to the internet technology even through their iPads. Through this tactic a large number of consumers will be reached. According to Pattuglia (2011, p. 20 – 25), in the modern era of technological advancement, online communication of marketing information is the most effective strategy because it reaches more audience at a lower cost. Additionally, marketing communication requires attracting more interest to convert more consumers to become customers while minimising the expenditure on advertising and media access and maintaining positioning coherence (Cornelissen, 2000, Pp. 102 – 107) and (De Pelsmacker, 2010, Pp. 4 – 37). Sales promotion of the Fiat 500 will be applied in communicating the message to the client as one of the tactics of the promotion mix. The sales promotion will directly target customers, retailers and wholesalers of Fiat 500. Billboards will also be used within the promotion mix as the most suitable tactic for marketing the Fiat 500. These will be stations along roads and vehicle terminals. Attractive images and messages in the billboards will cause desire for the automobile within the consumers and potential customers. Spot TV will be one of the marketing tactics for the Fiat 500 promotion campaign and it will help the marketing communication to create awareness among consumers about the Fiat and its special features so that their interest on the automobile can be captured. The advertising will include promotional activities via the media while internet marketing will involve messages passed over the website of the automobile, electronic mail in addition to social networking sites. The marketing campaign for the Fiat 500 will therefore utilize various communication tools in the marketing of the automobile. Posavac, (2012, p. 22 – 30) asserts that a marketing communication mix involves sales promotion, advertising, publicity, direct marketing, internet marketing, public relations and personal marketing. Action The advertising messages will be presented on the billboards, the social media, print, magazine, mobile phone and television and will present a unified or integrated message with in-depth details of the conversion capability of Fiat 500 to an electric car. Forrester Consulting (2006, p. 3 – 5) says that a good advertising should point to a website that presents all pertinent details for all those who seeking further information to make their mind about buying. Control According to Anantachart (2004), the marketing communication plan must be measured and monitored so that necessary modifications can be done to ensure that the desired effect on the market is reached. The number of Fiat 500 sales will be monitored by using the sales and financial records of the company throughout the marketing campaign to determine whether it has an impact on the consumers. The evaluation of the sales will be measured against the current sales which will act as the control of the impact measurement and monitoring. Created Idea The idea created for Fiat 500’s marketing communication campaign is presented in Appendix A which depicts the advertisement prepared for converting the Fiat 500 into an electric car. Because no competitor has the capacity to offer an upgrade to an electric car, it is likely that the impact of the advertisement may become viral if effective manipulation of the marketing communications mix exists (Chaudhuri, 2006, Pp. 25 – 50). The advertisement prepared for the Fiat 500 leans towards strategic marketing communication that attempts to build a long-term brand attitude in consumers going beyond efforts directed towards short-term sales or product usage (Percy, 2008, Pp. 80 – 85). Conclusion and Recommendations An integrated marketing communication for the Fiat 500 is aimed at enhancing the effectiveness of the marketing strategy and will involve promotion that will attract more consumers to the unique features of the automobile in addition to the use of media channels that are cheaper but more visible. The marketing campaign should employ an integrated approach in passing the promotional information to the consumers by applying appropriate tactics and strategies which aims at creating awareness, desire and interest within the consumers which will ultimately lead to an action of purchasing the automobile. Appendix Appendix A – An Advertisement for Fiat 500 The Fiat 500 is the Future…. Convert your Fiat 500 into an Electric Car at any time….. www.fiat500electric.com References Anantachart, S., 2004, “Integrated Marketing Communications and Market Planning: Their Implications to Brand Equity Building”, Journal of Promotion Management, Vol. 11(1) 2004. Automotive Design & Production, 2011, “Five Things about the Fiat 500”, Automotive Design & Production, Vol. 123, Issue 2, p. 43-43 Automotive Engineer, 2010, “Fiat 500 spearheads OEMs return to US: The Italian carmaker begins its big sales push in North America” Automotive Engineer, p. 5 Brannan, T., 1998, “A Practical Guide to Integrated Marketing Communications” Kogan. Cammarata, V. et al, 2006, “The FIAT Case: a Therapeutical Crisis”, Universita Della Svizzera Italiana Chaudhuri A., 2006, “Emotion and Reason in Consumer Behaviour”, Heinemann, UK. Copley, P., 2004, “Marketing Communications Management: concepts and theories, cases and practices” Elsevier. 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