Integrated Marketing Communication in Virgin Train - Report Example

Integrated Marketing Communication Contents Contents 2 Introduction 3 Integrated Marketing communication 3 Strategic role of marketing communication strategy 6 Rabostic Planning Model of Virgin Railways 8 Research and analysis 8 Audience 9 Budget 9 Marketing communication objectives 9 Strategy and Tactics 10 Implementation 11 Control 11 Reference List 12 Introduction Virgin train is a company owned by Stagecoach and Virgin Group, which deals in train operations. It serves areas including Northwest England, Greater London, North Wales, Scotland and West Midlands. The train operates in various forms such as, diesel multiple units, electric unit, driving trailer as well as passenger carriage. The company had started its operations in the year 1997 (Virgin Trains, 2013a). First class passengers are served breakfast along with afternoon and evening meals. There is an onboard shop serving a range of alcoholic, cold and hot beverages. The train service has been identified in various industry awards. In the year 2010, it was awarded as Year’s Best Rail Operator at Travel Globe Awards. It is also known as one of the most preferred domestic passenger service in the United Kingdom. The trains are known to be environmental friendly as their carbon dioxide emission is 78% less than average domestic flights and 76 % less than cars (Virgin Trains, 2013b). Integrated Marketing communication Integrated marketing communication has become as a major phenomenon since early 1990s. Corporate and marketing communications are few of the critical persuasive factors used by organizations for market connection (Constantinides, 2006). The objective is to deliver certain perception of products, services and brands to consumers, customers and stakeholders. As a result of the increasing variety of promotional and communication tools, modern day channels are able to disseminate messages in wide forms. According to Kliatchko (2008), “integrated marketing communication is audience-driven business process of strategically managing stakeholders, content, channels, and results of brand communication programs.” Marketing communication planning or mix can be characterized in the form of its communication strategies in the market. The various ways through which an organization communicates to its market are advertising, sales promotions, personal selling, direct marketing and public relations (Gronroos, 1994; Ferdous, 2008). Advertising Advertising can be described as a non-personal strategy for mass communication offering great level of command for people responsible for design, manufacturing and delivering of advertising messages (Fill, 2006). This message is transmitted in a particular style and manner which best suits the customer as well as management’s requirements. Regular usage of advertising is critical for creation and maintenance of brand personality, especially when it is integrated with other elements of the mix. It is a dominant form of advertising communication for many firms (Panda, 2003). In any case, advertising needs a carrier so that message can be delivered to the desired receiver (Pelsmacker, 2001). Sales promotions Sales promotion is used for delivering the action plans. Sales promotion and advertising harmonize each other as promotion is short term to generate sales and advertising is for long term awareness and relationship building. Sales promotion is also a non-personal form of marketing communication targeting a smaller audience. The techniques include offering better offers and adding value with the objective of future sales. Various presentation kits such as, catalogues, selling aids and brochures, are used for sales staff. Financial mechanisms such as, promotional pricing and incentives, are used as a push strategy by companies (Young and Aitken, 2007). Public relations Public relations can describe as relationship management between an organization and its various stakeholders. It is an attempt to establish and preserve shared understanding, good relationships and goodwill with the secondary targets, stakeholders or audiences. It helps in the closure of the gap between how the public perceives the organization and how it would like to be perceived by its target public. It is majorly a long term as well as two-way communication form where PR executives aim for goodwill and long term reputation of the organization. It also plays a critical role during crisis, so that minimum damage is caused to the firm. Direct marketing It is also a critical characteristic of the marketing communication planning. It supports personnel selling by improving overall image, building awareness, taking orders, establishing reliability and providing services such as, customer management. Here direct media means are used such as, catalogues, mailings, internet, posters and press. This tool is used for creating and sustaining personal communication with current and potential customers as well as other stakeholders. Personal selling It can be described as face-to-face, two way communication with the objective of informing, giving demonstrations, maintaining and establishing relationship with particular member audiences. It is one of the most critical tools in B2B marketing where the sales personal and the selling technique are major representations of the company. Message evaluation and feedback are also an important factor here. The biggest advantage of personnel selling is the relationship established with the customer which is long-term. Strategic role of marketing communication strategy Marketing has evolved from being a logic focusing on products and transactions to targeting long term and healthy relationships with stakeholders as well as continuously improving competencies and resources, so that customer value is successfully created and sustained. Likewise, the traditional form for approaching and managing communication has been from a functional perspective and the only objective has been persuasion. However, a wider concept would be relational communication approach which goes beyond persuasion and builds effective dialogues with the stakeholders. The objective here is to inform the stakeholders, listen to them and respond in the appropriate manner and strategy. Critics have argued that these conversations and dialogues will ultimately result in increased brand value of the organization. According to Duncan and Caywood (1996), many roles in the marketing department notably in services sector consist of spots or positions where communication represents a critical element of various marketing activities. According to them, communication is the key element situated at the very heart of all organizational functions. Schultz and Schultz have advocated that development, planning and implementation of promotional and marketing programs should loom in different and new ways. This approach is essential for the integration of a wide variety of functions and activities that impact and influence the vibrant flow of information between a company and its stakeholders. Most of the marketing professionals in today’s work environment are forced to change their approaches as a result of the remarkable alterations affecting clients, consumers, markets, media, technologies as well as their ability to manipulate, collect and store various data. As a result of the above factors, marketers feel that a paradigm shift is essential for the implementation of IMC. Managers in various departments such as, sales promotion, direct marketing as well as public relations, will have to work in tandem for successfully implementing the IMC strategies. Even though IMC is in its evolution stage, the present conceptual framework as well as various ongoing research works has been helpful in creating effective strategies which can be put into actual implementation. In his latest thesis, Kliatchko (2005) has evaluated for critical elements which can be described as four pillars of the marketing communication strategy. These are stakeholders, channels, content and results. The major aspect of the above factors is that they provide a model of closed loop allowing evaluation, measurement and analysis impacting future directions of organizational programs. Stakeholders are described as external as well as internal audiences in a corporate organization. Kliatchko has also emphasized on setting a link between the external marketing activities as well as internal activities to create sync. Content is the latest development in the IMC strategy. It is differentiated from incentives and messages as the new age social media (Schultz, 2004). Channels are described as outside approach of the organization to connect with the customers. The final pillar is the assessment of the set objectives (Reid, 2003; Ratnatunga and Ewing, 2005). Despite a strong presentation and interrelation of the various factors, the theory lacks clarity, rigidity as well as empirical support. Developing a process to increase the design usage is the key for creating successful marketing communication programs. In an IMC, media advertising can be implemented in generating inquiries, building awareness, additional information and personal sales. As a result of this, these tools develop synergy which is the biggest advantage for the organisation. Even though marketing communications are beneficial in many forms, there are certain associated barriers. In case of a lack of marketing communication, promotional tools must act independently. It also means that overall effort can become counter-productive and negative effects might be produced. While creating a campaign, single proposition might be less confusing and more productive (Firat, Dholakia and Venkatesh, 1995). Critics have also argued that IMC may limit innovation and creativity, as it needs to be integrated with the overall communications strategy. However, at the end, creative challenge can be more satisfying and greater than a single marketing strategy (Smith and Taylor, 2004). Marketing communications does not happen automatically. Each and every element must be planned accordingly. Thus, successful implement of IMC is possible only when different departments of an organization are also strategically integrated (Simmons, 2008). Rabostic Planning Model of Virgin Railways It consists of eight stages of research and planning as well as implementation of marketing communication strategies. Research and analysis The significance of innovation can be realized only by creating efficient customer value. The number of travellers is increasing every day, while demographics are constantly changing. In this volatile environment, it is critical to target the right audience about the brand (Porter, 2004). With increasing competition, Virgin trains are facing tough challenge from other brands. Customer loyalty and preference are given to those passenger vehicles which are frequent, punctual as well as clean. Apart from the above, the brand also needs to change consumer perception in terms of their overestimations regarding train journey and shift their preference from other forms of public transform to trains. From 1998 to 2009, the company has rolled in many new services in terms of new trains, rail services, new routes and high frequency time tables (Sky Media, 2005). However, intense competition as well as volatile market is forcing the organization to take more strategic steps in marketing and promotions (Zineldin and Philipson, 2007). Audience Since it is a public transport, the company’s broader target population will be every citizen using public transport as a means to travel. Specifically, the brand is targeting leisure as well as business audience with the help of new designs and amenities like, food (Johnson and Schultz, 2004). The current aim of Virgin trains is to attract those population using cabs as a means to travel. For that, the company has launched new campaigns stating the misconceptions regarding trains such as, higher prices and accidents, along with seconding trains as a form of commercial travel (Cornelissen, 2001). Budget Virgin Trains had launched a new campaign with the objective of highlighting the benefits of the faster, better and brand new train service. The campaign was also used as a platform to launch the new high-tech train service under the brand. The company generally puts 8.5 to 10 percent of its overall budget into advertising and promotions. The company had generated revenue of 753 million Euros in the year 2011 owing to high passenger growth. The budget allocated for integrated marketing is generally around 60 to 70 million Euros yearly (Heraldscotland, 2011). Marketing communication objectives The specific marketing communication objectives for Virgin Trains can be summarized as follows: Attracting new customers from various public and private transport avenues. Communication of improved and faster train service to target audience. Introduction of the new Pendolino train model and spreading awareness about its advantages. Strategy and Tactics The overall strategy followed by Virgin Trains consists of integrated marketing mix. The brand communicates to its target audience through a 360 degree approach (Holm, 2006). The major strategy was to provide a public transport with affordable pricing for professional as well as leisure travellers. The company provided a competitive package for customers with tight-end budgets and those looking for cheap source of daily transport (Torp, 2009). Another strategy was to enable trust factor among target audience through establishing Virgin Trains as a trustworthy, safe and comfortable journey, providing benefits and comforts at affordable pricing (Proctor and Kitchen, 2002; Jarzabkowski, Balogun and Seid, 2007). As tactics, in order to connect with the market, the company associated itself with many CSR campaigns. The company is involved in reduction of carbon footprint as well as increasing the overall efficiency of the company. The brand maintains sustainable station philosophy and has strict rules for safety and security targets. The on-board food provided are also sustainable and certified. The brand is also engaged in global environmental activities such as, climate and energy change, going green project, community investment and charity partnerships, station energy management program and reduction of corporate waste through recycling programs among others (Virgin Trains, 2013c). Implementation Social networking strategies included establishing open forums in Facebook and Twitter regarding experiences from the journey as well as feedback (Hackley, 2001). The brand had also launched television advertisements with the aim of connecting emotionally with the target audience. It also provided a rational communication aiming at the various advantages of trains as daily transport. The company had introduced a quiz competition called ‘tickets please’, which enabled customers to win Virgin tickets for a year. They had also launched an online game for customer engagement. Various press conferences were organized by them to update the media and customers about the latest developments in the company and its new launch (Smith and Zook, 2011). Control Control tactics are implemented so that the entire strategy process can be monitored from time to time. The company has established a constant feedback system in its website in order to understand customer response. Performance measurement tools are also used by the organization in order to facilitate regular internal review of the action plans and monitoring of the implementation process. Reference List Constantinides, E., 2006. 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Proctor, T. and Kitchen, P., 2002. Communication in postmodern integrated marketing. Corporate communications: An international journal, 7(3), pp. 144 – 154. Ratnatunga, J. and Ewing, M.T., 2005. The brand capability value of integrated marketing communication (IMC). Journal of Advertising, 34(4), pp. 25–40. Reid, M., 2003. IMC–performance relationship: Further insight and evidence from the Australian marketplace. International Journal of Advertising, 34(4), pp. 41–54. Schultz, D.E., 2004. The next generation of integrated marketing communication. Interactive Maketing, 4(4), pp. 318-319. Simmons, G., 2008. Marketing to postmodern consumers: Introducing the internet chameleon. European Journal of Marketing, 42(3/4), pp. 299 – 310. Sky Media. 2005. Virgin Trains. [online] Available at [Accessed 26 November 2013]. Smith, P. and Taylor, J. 2004. Marketing communications: An integrated approach. 4th Edition. London: Kogan Page Publishers Smith, P.R. and Zook, Z., 2011. Marketing Communications: Integrating offline and online with social media. London: Kogan Page. Torp, S., 2009. Integrating Communications: From one look to normative consistency, Corporate communications: An International Journal, 14(2), 190 – 206. Virgin Trains. 2013a. Ownership and structure. [online] Available at< http://www.virgintrains.co.uk/assets/pdf/media-room/fact-sheet.pdf> [Accessed 26 November 2013]. Virgin Trains. 2013b. About Us. [online] Available at< http://www.virgintrains.co.uk/about/> [Accessed 26 November 2013]. Virgin Trains. 2013c. Sustainability. [online] Available at< http://www.virgintrains.co.uk/assets/pdf/green-policy/on-our-way-to-sustainability.pdf> [Accessed 26 November 2013]. Young, A. and Aitken, L., 2007. Profitable Marketing Communications: A Guide tom Marketing Return of Investment. Cornwall: MPG Books Ltd Zineldin, M. and Philipson, S., 2007. Kotler and Borden are not dead: Myth of relationship marketing and truth of the 4P’s. Journal of Consumer Marketing, 24(4), pp. 229 – 241. Read More