Consumer Integrated Marketing Communications Campaign - Case Study Example

Consumer Integrated Marketing Communications Campaign I. Introduction This paper aims to create a model that visualises the steps for a consumer integrated marketing communications campaign, showing what factors influence each step. Relevant literatures are consulted in order to come up with a model. Then, the model is applied to a clothing brand using secondary research for better appreciation of the concept of integrated marketing communications. II. Body A. Create a model that visualises the steps for a consumer integrated marketing communications campaign, showing what factors influence each step. You are required to use relevant theoretical literature (journals papers, books, book chapters) in order to justify your suggestions. After developing your theoretical model. i. Strategic marketing a) Segmentation With the sophistication of the modern marketplace, both in terms of the consumers and competitors, mass marketing is no longer winning strategy in business (Reid, Luxton & Mavondo 2005). Marketing philosophy is about doing business by choosing a company's consumers, satisfying them, and deriving profits out of customer loyalty and repeat purchases (Liodice 2008). The best way for an existing business to conduct segmentation is by determining its most profitable customers, classifying them into groups using a variable that greatly influence them on their decisions regarding the brand (Duncan 2004). These variables can range from benefits sought, their demographics, their psychographics, or their relationship level with the company (Duncan 2004). The company can then look at the segment where it can focus and serve well. b) Targeting Consumer's heart. When the company has already profiled its current customers and has chosen which segment it should focus on and serve well, the company has to know this segment very well in order to fully satisfy it, ensure loyalty and repeat purchase, in order to translate market share into sales to the company (Smith, Srinath, & Chatterjee 2006). The consumer's heart framework includes the consumer segments' personality--demographics and psychographics; competition that possibly in their awareness and evoked sets—direct and indirect competition in resolving the problem or opportunity; and consumer insights in the form of explicit and implicit needs in solving the problem or opportunity (Smith, Srinath, & Chatterjee 2006). Knowing the personal information regarding a consumer segment can reflect the consumers' purchase behaviour (Liodice 2008). Knowing the competition will enable the marketer to know how it can position itself in the process (Liodice 2008). The insights will provide the company the benefits that consumers look for in a brand (Liodice 2008). Consumer behaviour. The segment's behaviour regarding the decision to purchase the brand is an important consideration in all the aspects of communicating the brand's positioning (Pickton & Broderick 2002). For purchase decisions, the there are three paths to a decision: the cognitive path, or the traditional hierarchy of effects model; the emotional path; and the habit or repeat path (Duncan 2004). These paths are determined by the level of involvement of consumers to a brand decision (Duncan 2004). A marketer that knows how the steps that consumers go through when coming up with a decision will be able to come up with better marketing communications strategy that will influence a consumer's considerations (Liodice 2008). Because it probes the decision-making of the consumer, the decision-making unit or any influences to the consumers' decision must also be included in the analysis (Pickton & Broderick 2002). Marketers should also know the attributes that consumers give premium on, as well as the overall picture of the competition in delivering these attributes (Duncan 2004). c) Positioning The Brand Framework. A brand is just a trademark; what defines it is its brand personality and values which is transformed into brand identity (visuals and other forms) which is communicated to consumers in order to create a brand image (Madhavaram, Badrinarayanan, McDonald 2005). It is therefore important to define a brand's personality and values, which is related and well-anchored to the profile of the customers who are going to adopt and buy them (Reid, Luxton & Mavondo 2005). The insights in the consumer's heart framework need to be matched with the benefits that a brand offers—the explicit needs should translate into functional benefits, while the implicit needs must translate into emotional benefits to the consumers (Liodice 2008). In order to sum up these benefits into one statement, the company must coin it as its Unique Selling Proposition, or its USP (Dewhirst & Davis 2005). Customers are less likely to buy the USP if they do not have 'reasons-to-believe' (Duncan 2004). Thus, these reasons that support the USP should also be included. A more useful factor in the company's IMC campaigns, the essence of the brand, should be included in the framework. This is the top-of-mind idea or association whenever the brand is mentioned (Duncan 2004). ii. Integrated marketing communications a) Target audience Communications start by determining the recipient of the message a sender wishes to communicate (Pickton & Broderick 2002). The form of this message depends on the target audience; therefore for a marketer, choosing the right target audience is crucial (Kliatchko 2008). The target audience always include the end-user; however because buyers and users are usually not the same when it comes to brand decisions, the role of decision-making units are important (Pickton & Broderick 2002). A marketer can include in the target audience the end-users, the buyers or the decision-makers, and the influencers as well as the gate-keepers of information concerning the purchase (Kliatchko 2008). b) Hierarchy of objectives An IMC campaign is useless if it is not strategic, that is, if it does not support a company's or a brand's objectives (Liodice 2008). The marketer should start by looking at the company's overall objectives, then a marketing objective to support this corporate-level objective, and then an IMC objective in support for the marketing objective (Pickton & Broderick). Only when there is a clear IMC objective will a marketer be able to define its lower-level objectives for each of the IMC function that it chooses (Duncan 2004). Objectives are also important when conducting evaluations later on (Cornelissen 2003). c) Message strategy A marketer's message should be coined while containing the following: the target audience, the brand, the benefits that the brand offer, the proof to these benefits as well as the tone of the message in line with the brand's personality (Duncan 2004). This message strategy is crucial in creating a one-voice one-look, and an integrated approach to lessen the clutter when a marketer comes up with a campaign (Naik & Raman 2003). d) IMC mix and implementation After the target audience, the objectives, and the message strategy is defined, it is time for the marketer to choose the mix of IMC functions (Ilchul, Han & Schultz 2004). The selection of this mix is usually dependent on the marketer's analysis of the consumer's path to decision-making (Pickton & Broderick 2002). The strengths and weaknesses of each of the functions has a role to play in choosing the mix. For example, for a brand which decision is based on an emotional path, the AIDA framework, the best IMC function to provide awareness can be advertising because of the scope that advertising can reach (Naik & Raman 2003). In order to arouse interest, public relations in the form of publicity and press releases can be used (Seung, Jaebeom, & Donavan 2008). Desire to purchase can be induced by providing incentives in the form of sales promotions (Pickton & Broderick 2002). Lastly, action can be prompted by employing either personal selling or direct marketing to consumers (Ilchul, Dongsub & Schultz 2004). But the choice of the IMC mix depends on particular objectives—such as increasing brand awareness, inducing repeat consumption, etc. (Dewhirst & Davis 2005) e) Evaluation The success of the campaign is evaluated by the extent that it has accomplished certain objectives to the company (Cornelissen 2003). Objectives are essential to be measurable because the effectiveness of the campaign is judged by reaching certain objectives. Evaluation should also include the deviations in the original plans, so that the marketer will be able to learn from its mistake and not to repeat it in its next campaign (Duncan 2004). B. Apply the model to your favourite clothing brand highlighting the ethical issues that might be relevant to the clothing brand. Use secondary research to find out information about the brand, your own personal experience and knowledge of the brand in order to explain how the brand’s marketing communication programme works. Write up your analysis and use your model to explain your analysis. i. Strategic marketing a) Segmentation Burberry operates in the global luxury good market (Burberry 2009). The company segments the market mainly according to the demographics and psychographics of the market, which is very common among luxury brands (Burberry 2009). b) Targeting Consumer's heart. The Burberry brand caters mostly to the 18-25 year old market segment of the global luxury good market (Mower 2009). As a apparent in the company's positioning as a luxury brand, Burberry targets the more affluent and sophisticated class, which follows major fashion trends in major spots such as Milan (Fashion United 2005). Direct competitors of Burberry include Hermes; LVMH or Louis Vuitton Moet Hennessy which houses the most popular luxury brands such as Louis Vuitton, Givenchy, Fendi, De Beers, etc; PPR with brands such as Gucci, Yves Saint Laurent, Balenciaga, etc; and Richemont with brands such as Cartier, etc (Burberry 2009). For the consumer insight, consumers look for quality apparel and accessories as explicit insight. As for the implicit insight, consumers look for a brand that will make them stand out from the crowd, in the sense that it emphasises luxury. Consumer behaviour. Burberry consumers have stronger attachment to the brand because their purchase decision-making is an emotional one, hence, the AIDA framework or Awareness-Interest-Desire-Action. This is true for most luxury brands where lifestyle is their most apparent brand offer. c) Positioning Brand framework. The brand's flagship trademarks include its tartan design, its outerwear and quality trench coats, its Prorsum horse logo, etc (Burberry 2009). The brand's values and personality include quality, function and modern classic style, and rooted in the integrity of its outerwear (Burberry 2009). These are its functional benefits. As for the brand's emotional benefits, Burberry stands for '[…] deluxe, and glamorous, and aimed at the very young (Mower 2009).' These benefits comprise the company's unique selling proposition, including the authentic British brand proposition. Reasons to believe Burberry's claim include the following: Royal Warrants from both Her Majesty the Queen Elizabeth II, and His Royal Highness, Charles the Prince of Wales (Burberry 2009); industry recognitions such as the UK Fashion Expert Award (Fashion United 2006); features from marketing channels like Vogue, Style.com, and other high fashion magazines (Mower 2009). The Burberry brand's essence is its being an authentic British brand that stands for quality and luxury (Burberry 2009). ii. Integrated marketing communications The company's target audience include the affluent and sophisticated class, with ages 18-25 (Mower 2009). In the company's recent fall marketing campaign, the company's objectives include increasing reach in terms of its UK target market. Burberry's message strategy, according to its Prorsum collection is 'short, draping, deluxe, and glamorous, and aimed at the very young (Mower 2009).' With this campaign, the company has used advertising, public relations and direct marketing. The company's advertising campaign appears in billboards, posters and print ads. The company's public relations practices are apparent in its Prorsum fashion show which consolidates the 'gap between a private and public fashion event (Mower 2009).' This has gathered much publicity because of the presence of A-List celebrities such as Gwyneth Paltrow, Mary-Kate Olsen, Victoria Beckham, Daisy Lowe, Frieda Pinto, and Dev Patel (Mower 2009). Aside from this, the show, as a form of publicity has been featured in many fashion magazines such as Vogue, Style.com, etc (Mower 2009). The company uses direct marketing in the form of its e-commerce website, where the collection can be purchased on-line by consumers. According to the company's interim report, the company's revenues six months up to September 30, 2009 is higher than last year's by 6%. The campaign must have done its part in increasing reach through the launch of its fall collection, and has contributed to this increase in revenues (Burberry 2009). The major ethical issues concerning the Burberry brand is compliance over labour and environmental laws in its operations. Burberry, however has some key policies 'such as those on Environment, Ethical Trading, Employee Volunteering and Exotic Materials (Burberry 2009),' and are part of its corporate social responsibility codes, and its ethical trading policy (Burberry 2009). III. Conclusion Integrated marketing communications is not an end to itself; it is a tool for marketers in order to achieve marketing objectives, which are a subset of the company's overall objectives. Hence, the use of integrated marketing communications should be strategic. In conducting an IMC campaign, it is then important that after a marketer analyses the macro environment of the brand, rigorous consumer and competitors analyses should be included. A marketer will not succeed if it loses focus on both the market and the competition. Thus, for an IMC campaign to be successful, not only does it have to be well-targeted, but it has to accomplish certain objectives for the brand and for the company as a whole. 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