An Evaluation of Current Integrated Marketing Communication Practise - Essay Example

An evaluation of current integrated marketing communication practise Introduction Integrated marketing communications practice has become a popular phenomenon among car manufacturers today (Aaker, 1991). This has demonstrated a shift from the conventional marketing models, which are unsuitable in the contemporary world due to their various shortcomings. This model of marketing recognizes that there is no ‘one size fits all’ in the field of advertising. There are many complexities and dynamics in the modern world, which must be heeded to by car manufacturers if they are to reach their desired target market (Aaker, 1991). Integrated marketing communications strategy has had a profound change in the manner in which car manufactures approach the market. First and foremost, most car manufacturers have been forced to adopt a whole marketing picture. Basically, this implies that the market is not a singular unit and the various entities within it have to be given attention to (Aaker, 1997). Secondly, the car manufacturing companies have been forced to re-align their communications and approach things from a consumer viewpoint. This has enabled car manufacturing companies to respond to the various demands of prospective customers (Bagozzi & Dholakia, 2002) Integrated marketing communication has made it possible for automobile companies to achieve different goals at the same time. This in turn enhances their standing in terms of credibility, positioning, network creation, and creating trust among the various prospective clients (Benkler, 2006). This form of communication has also made it possible for companies to conduct corporate social responsibility efficiently. It is also worth noting that innovative marketing strategies have been necessitated by changes in consumer trends. Most clients today are smarter and more sophisticated. These attributes also implies that they are hard to delight (Barwise & Meehan, 2010). Most prospective clients today demand commodities, which are custom made and increasingly adaptable. Thus, there is a need for maximum differentiation that will appeal to the varying needs of various consumers. Identification of the Target Market Understanding a target market is important for any business entity. Failing to properly comprehend a target market can put a huge dent on the prospects of any given company (Castells, 1996). During the pre-launch of the Fiat 500 car, the company did an analysis of the market and realized that most of the potential consumers were relatively young and sophisticated. Thus, the marketing strategy was informed by this demographic of people. The strategy that was adopted by the company in determining its target market can be referred to as market segmentation (Cherubini & Eminente, 2006). Essentially, market segmentation is borne out of the realization that it is impractical to use a single marketing strategy for all clients. This call for the adoption of a middle ground that appreciates the fact that, whereas it’s impossible to fulfill the unique needs of each and every client, prospective clients can be grouped into certain generic categories, which describe them as close as possible. Market segmentation enables the division of markets into segments, which are likely to respond to the message that is being relayed (Duncan, 2002). This method was successfully used by Fiat 500 car in the launch of their product with a huge success. Identification of the Key Messages Used Accordingly, the launching event of the product was duped “the iPod of cars”. The resultant effect of this strategy was that the car had immense success in Italy and Britain. This came at a time when other companies had registered remarkable decline in sales in the respective countries. In essence, what the “the iPod of cars” phrase meant was that the car was relatively small and simple to handle, yet equipped with sophisticated technological features and objects that would make the car a must have in the same vein of Apple mp3( Duncan, 2002). In fact, after the launch, the product became a cult object that was adopted by many clients. This was so at a time when sales were drastically declining in Europe due to the economic downturn. Identification of the Appropriateness of the Message A critical evaluation of the appropriateness of the message to the target market is very significant. Accordingly, it is worth noting that disseminating an inappropriate message to a specific target group will yield little to no results. This is a fact that was within the knowledge of Fiat managers in the marketing of the Fiat 500 car (McConnell & Huba, 2006). The language adopted in the marketing of the Fiat 500 car appealed to the various segments in a special way. For instance, of the key target markets for the Fiat 500 car were young people who had just started families. Thus, the company had to be ingenuous enough in the use of their language to appeal to this demographic (McLuhan, 2010). In their advertisements, the company featured a married young couple trying to strike a balance between having three young children with their car and a longing to remain as part of the breezy crowd. The company then emphasized how the Fiat 500 car would make it possible to have all this. The language used has to be appropriate to a given segment market (McConnell & Huba, 2006). One of the major ways through which this product was advertised was the use of the internet. Internet marketing provides a wide base of prospective consumers who are ready to give feedback of a particular product. As such, the Fiat Company adopted an interactive forum where they could communicate with the respective segments (Muniz, 2010). This would act as strong pointer on the appropriateness of a certain message to the prospective consumers. If a certain message was not embraced by a significant majority of the people in a certain segment, it was brought down. The company also came up with the Fiat 500 website. The website was used as a way of communicating between the people and the company. For instance, the official pictures of the vehicle could be uploaded in the website for the consumers to see. While advertising for this product, the company used a cocktail of conventional and contemporary advertisement strategies (Naik & Raman, 2003). This can be illustrated by the nature of the advertisements, which encouraged those who had seen the products been advertised on the television to visit the company’s you tube page to learn more about the product. You tube is a fairly unconventional medium of advertising for products. By and large, you tube appeals to youthful customers who were the principal target market for the Fiat 500 car. The manner in which the integrated marketing strategy was executed for the Fiat 500 car is nothing short of phenomenal (Porter, 1980). This is what enabled the company to turn around its fortunes because it had been making losses in the past before the launching of the product. Market Communication Tools and Media Used By the Company. Internet and Websites For instance, there was the active use of the internet and websites. In the contemporary world, the internet had become an important medium of advertising. Any advertising in the modern world is not complete without the use of the internet (Prahalad & Ramaswamy, 2004). The advertisement of Fiat 500 car heavily relied on the use of innovative strategies and the internet. In essence, the internet and the websites made it possible for the company to reach a wide base of relatively young clients within the shortest time possible. Sales and Promotions The company also employed the use of sales promotion in increasing the sales. This was done immediately after the launch of the product. Basically, this entailed the sale of the car at a price lower than the market value to entice more consumers. Events and Experiences The company also employed the use of events and experiences. In essence, this entailed supporting events and other activities, which created unrivalled experiences for the company. The message in these events was passed by popular musicians in Italy (Sawhney &Kotler , 2001). For instance, Vasco and Gianna are some of the most popular Italian musicians employed by Fiat to market their products. Some other innovative methods were also used. For instance, in 2004, Fiat did not have any new products for that year. As a result, they came up with a campaign strategy where foreign companies thanked the Italians for purchasing their vehicles in large numbers. As a consequence, these advertisements evoked a sense of nationalism where Italians felt that they were letting down their companies. This is what led to a rejuvenation and renaissance of the Fiat Company upon the launch of the Fiat 500 car (Sawhney& Kotler, 2001). Although advertising is an old medium for selling products, it’s indispensible when an institution desires to reach the old segments of the population. The advertising strategies used by the company were also relentless and consistent. This made the company register record sales after many years on a downward spiral. Direct Marketing The company also used direct marketing as a strategy for reaching the market. Direct marketing entails communicating a certain message with individual customers through the use of one-to-one communication (Prandelli, 2010). This might entail various things including mail, and telephone. The company successfully made the use of ingenuous layouts of exhibition places and shopping floors in Milan, Italy. The intention was to give consumers a one stop shop where they could find all the information pertinent with the product, Fiat 500. The exhibition spaces sought to advance the values for which the company made the Fiat 500. The well established and entrenched values attracted prospective consumers to make a purchase based on that alone (Prandelli, 2010). This had a remarkable impact on the performance of the brand. Indeed, the brand performed beyond expectations. Some of the other services provided by the exhibition centre in Milan included booking a test drive, reading book and magazines about the product. Aside from the exhibition centre, the information could also be accessed from a website dedicated to the product. The concomitant effect of these efforts by the company was that consumers had a rewarding experience coupled with an elevated sense of customer satisfaction (Tapscott, 1995). Most automobile companies have adopted an integrated marketing strategy with a view to improving their sales. In fact, the idea of relying on conventional marketing strategies entirely has been viewed as obsolete. Companies must now find a middle ground between integrating both traditional and new marketing strategies in the same platform. The Fiat Company also organized open days where consumers would be attended to at an individual level. This completed the customer experience which eventually resulted in a conclusion of the purchase ( Prandelli, 2010). Public Relations and Publicity In advertising the product, the company also used public relations and publicity. This medium of advertising actively uses the mass media in disseminating information. However, it is worth noting that the information disseminated here is designed to promote the image and standing of a company as opposed to the promotion of an individual unit (Suarez-Villa, 2000). It is worth noting that the Fiat Company has had a good reputation for a long time having produced cars for decades. However, right before the launching of the Fiat 500 car, the company had been experiencing a downward spiral in the sale of its products. It products had experienced stiff competition from Japanese and Korean car manufacturers who had adopted innovative marketing strategies. Thus, the Fiat Company was left without any option, but to adopt innovative marketing strategies that could reach the market within a short time possible (Tybout & Carpenter 2001). The use of the mass media in advertising can be demonstrated in the first official commercial for the Fiat 500 car. The advertising campaign for the car became very pervasive and produced a huge reaction from the members of the public. Indeed, the reaction that was generated has been described as a “buzz”. The advertising campaign for the product had various elements. The first element is that it was hugely institutional. This was meant to remind the consumers that Fiat is a huge company that had been in existence for a myriad of years, despite the lackluster recent performance before the release of the commercials ( Tybout & Carpenter, 2001). The institutional aspect endeavored to remind consumers that the company had always been part of the history of Italy both in good and bad times. The second objective of the advertising campaign was all about evoking a strong emotional feel among all Italians and prospective clients. For instance, the company thanked all Italians for playing a significant role in supporting the company in hard and good times. The advertisement campaign by the company was made to look like they were now rewarding their Italian clients for being supportive for a long time (Venkatesh , 2012). Similarities in the Marketing Strategies Adopted By Fiat in Italy and Britain The methods of communication adopted by Fiat in the two countries of Italy and Britain share some similarities and differences. In both countries, the company has devised the creative use of the internet to reach the market (Yin, 2009). For instance, in the United Kingdom, Fiat devised the use of a Facebook application to market its products. The application has the capability to determine what best suits a potential client in the sense of the products availed by the company. In this regard, the company devised the use of the “you wear” application which has the capability of analyzing the photos uploaded in one’s profile (Yin, 2009). This will then enable the application to determine the colors which one wears most. Consequently, the preferences of individual clients are then aligned with the more than half a million custom specifications available in the company. This method of advertising has endeared the product to many clients who are now able to have their products the way they like. In Italy, the company has also devised the use of the internet as a medium of advertising for their products. The use of the internet in Italy has been integrated with the traditional mediums of advertisement ( Blakeman, 2014). Essentially, this implies that advertisements are carried out on the television and then linked up with the internet. Those clients who watch the advertisement campaigns in the conventional mediums like the television are invited to visit the company’s You Tube page where they can educate themselves more about the product. Secondly, the company used sales promotions in both Italy and Britain. This is where the Fiat 500 car was availed to clients at a lower price upon its launching. This made it more affordable for clients in the two countries who in turn made a purchase of the product (Yin, 2009). Events and experiences were also used in both countries. This is where the company organized shows in both Italy and Britain to market their products. These shows and events were tailor made in the two respective countries to make the maximum use of the most popular celebrities in the respective countries. Research has indicated that an integrated marketing communications strategy brings the most returns on investment for companies that adopt them. This can be illustrated by the effective and efficient attributes of this form of marketing (Barwise, & Meehan, 2010). For instance, this form of marketing emphasizes on adopting synergies. Basically, this implies that there is no duplication of messages. This saves on the advertisement costs by the company which in turn increases the level of profitability. Differences in the Advertisement Strategies Adopted In both Italy and Britain Despite the similarities, certain differences exist in the manner of the advertisement strategies used in the two countries of Italy and Britain (Blakeman, 2014). Being an Italian company, the advertising strategy attempted to remind people that the company has been around for quite a long time and that it has always prayed an important role in the country both in good and bad times. In essence, the company endeavored to evoke the feelings of nationalism and nostalgia. Being that the company had not performed well in the recent years, the advertisement strategy needed to remind the people that the company is a great one in the country and that it only had a few bad times and was ready and willing to take its coveted place. However, this type of communication could not have worked in Britain for various reasons (Blakeman, 2014). First and foremost, Fiat is not a British company. Thus, the company has to come up with a strategy that could also appease the prospective clients in Britain. How the Communication Activities Have Helped the Company The communication activities have prayed a significant role in helping the organization to undertake strategy and achieve their objectives. As pointed to earlier, the company has adopted strategy of market segmentation (Larry, 2014). This strategy is born out of the realization that different consumers have different and unique needs and preferences. This can be illustrated by the more than half a million specifications available in the fiat company. The availability to these customizable products for potential clients has made it possible for the company to respond, as nearest as possible, the unique needs of clients (Blakeman, 2014). This has led to the creation of memorable customer experiences and built their brand. The strategy of market segmentation has also made it possible for the company to achieve its objectives in the sense that their sales have increased. The company has been able to increase the number of automobiles sold at a time when other companies were experiencing a decline (Larry, 2014). Challenges of affecting the IMC strategy Despite its effectiveness, there are inherent challenges and shortcomings in the practice of integrated marketing communication at the Fiat Company. These challenges exist in both the internal and external environment of the company (Belch, 2014). The internal environment entails the huge amount of resources required in the implementation of these advertisement strategies. Challenges in the external environment exist in the implementation of a successful integrated marketing campaign. First and foremost, the level of management support and resources required is unprecedented. For an integrated marketing strategy to be extremely successful, the top management must support it (Belch, 2014). As we have pointed out, an integrated marketing strategy involves the use of both conventional and unconventional methods of marketing. What this implies is that resources are required in putting up of technologies in place (Blakeman, 2014). For instance, the company has used technological experts in designing of applications that enable them to address the special needs of their clients. Unifying technology has also been a major challenge for the Fiat Company in enhancing their sales. Technology is an essential attribute for the rest of integrated marketing (McLuhan, 2010). Thus, companies must come up with ways of using these mediums in harmony to achieve the best results. This has been quite a challenge for most of the companies who have experienced challenges in attempting synergize the marketing mediums. The fiat company has also experienced challenges in the international arena (McLuhan, 2010). The market dynamics in different countries vary widely. Thus, there is a need for a company to have local agents in each country where it has operations to best inform their functions. The level of IMC evident in Fiat Company The level of integrated marketing communication evident at the Fiat Company can be witnessed at different levels using various mechanisms. For instance, observations can illustrate the level of integrated marketing communication adopted by the company (McLuhan, 2010). By and large, the observations were made during the launching of the Fiat 500 car product. Most of these observations were made during the pre-launch and launch of the product. At the launch of the product, advertising campaigns were done not only in televisions but also directly by way of emails to individual clients. Secondary sources can also illustrate the level of integrated marketing communication adopted at the Fiat Company (Blakeman, 2014). This could be demonstrated by press releases, TV commercials and other specialized publications. Thus, the company used both conventional and unconventional methods in advertising their products. When introducing a product, the company usually adopts a name that resonates in the minds of prospective consumers, just like “the iPod of cars”. Recommendations on Further Use of the Tools/ Media As noted earlier, there are various shortcomings in the use of integrated marketing communication. Thus, there is a need for a counter strategy to minimize the impact o the foregoing shortcomings (Belch, 2014). There are various ways through which this can be achieved. First and foremost, companies must conduct a rigorous recruitment process. The fiat company must hire and empower committed and specialized teams of staff to lead integrated marketing communication efforts. Hiring is crucial in big companies like Fiat. As pointed to earlier, the messaging and content has been quite problematic at the Fiat Company. It’s not just enough to work in a myriad of channels. The messaging has to be synergized across the various channels (Belch, 2014). Thus, fiat should hire a team of marketers with the sole purpose of developing a theme that is similar in all the communicating outlets. The words used do not have to be the same but the theme adopted has to be synergized (Blakeman, 2014). These challenges can also be countered by plotting a messaging strategy right before undertaking the actual advertisement. Fiat 500 also needs to take stock of their resources early. Taking stock of available resources will enable them to be dispensed in a balanced way. 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