The Effectiveness of the Marketing Communications Mix - Coursework Example

Integrated Marketing Communication Introduction Audi automotive Company is a German luxury car company that has its sub companies all over the world. The company has several competitors for example, the BMW, Lexus and Mercedes-Benz that also produce luxurious cars. In the past five years, Audi Car Company has developed a strategy to improve its performance and is now among the top competitors in the luxurious car brand market (Bernstein, 2010). In this paper, the main issue is the effectiveness of an integrated marketing communication mix. In the quest to achieve their marketing aims, the company has to communicate to relevant people and institutions. Integrated marketing communication mix is a product of integrated marketing communication plan which has to consider an analysis of the market situation results. The market situation considered in this case is competition between Audi Car Company and BMW. The two companies have in the past years been engaged in advertisement wars. The effectiveness of the integrated marketing communication mix (the adverts on TVs and Billboards) will be analyzed and recommendations made. Integrated Marketing Communication Mix Integrated marketing communications mix is a collection of marketing activities such as advertisements, public relation activities, sales promotions and personal selling that re appropriate for an organization’s integrated marketing communication (Yeshin, 1998). For one to understand integrated marketing communication mix, it is important to first understand what integrated marketing communication is. Integrated marketing communication is a term that is used to refer to the management of a collection of communication and promotional activities in order to achieve organizational aims (Sirgy, 1998 & Pickton & Broderick, 2005). For companies to make profits, they have to market their products and for them to market their products, there are certain activities that they have to be involved in such as research on the market about consumer behavior or responses to a product, determination of the needs of the consumer, development of strategies on how to meet the consumer needs, implementation of the ideas, monitoring progress of the implemented idea and control (MMC Learning, 2010 and Introduction to IMC, 2008). All these are under integrated marketing communication. It involves different activities other than communication alone. Pickton & Broderick noted that integrated marketing communication is a process that involves organization and management of the analysis, planning, implementation and control of the media, the promotional tools, the messages and the communication contacts of a specific audience in order to achieve specific corporate or product marketing objectives (2005). It has three models which are; the IMC process, the IMC RABOSTIC planning and the IMC mix. The IMC process model describes the process of how the message moves from the sender to the receiver. This has four components, the sender, the message, the media through which the message is sent and the receiver. The IMC RABOSTIC plan shows how the process of IMC is planned. It involves research and analysis, the audiences, budgets, objectives strategy, tactics, implementation and control. The last model is the integrated marketing communication mix with is a product the second model. After researching, identification and selection of the target audience, setting of objectives, budgeting, strategizing, developing an implementation and control plan, the organization’s integration marketing communication’s manager comes up with different approaches of conveying the message to the target audience. The approaches form the market mix. It means that it is the different methods used to convey the message to the customer that forms the IMC mix. IMC mix as previously indicated can be advertisements (of different forms), public relations, personal selling or sales promotions although in most cases; the activities within the approaches are inter-related and overlap (Pickton & Broderick, 2005). This discussion is about the effectiveness of an integrated marketing communication mix of a company (Audi car company) compared to its competitor (BMW car company). Analysis will consider the IMC three models described above and recommendations made on the best IMC mix best for the company. Audi Car Company IMC Strategy The IMC strategy always selected by a company depends on the type of market of a specific product. In this case, since the companies deal with luxurious cars, the type of market would be that of luxurious cars. The strategy also depends on the buyer readiness stage, PLC, focus and cost (Kitchen & de Pelsmacker, 2004). The luxury brand market has other car companies but the main competitor and rival to Audi is the BMW. Additionally, based on the track record of BMW (high market share, good performance etc), the strategy chosen by Audi Car Company to show that people that there is another luxurious car around may prove to be efficient. Luxurious cars market has not experienced much change since and this is the opportunity that Audi Car Company banked on (Bernstein, 2010). According to Bernstein, “the luxury market is bit staid and tired and is ready for a good rocket to take-off” (2010). It is time for Audi to take off. This already is a clear indication that market research was done and the status of the market analyzed. The target market is the luxury segment but the target audience includes other people that may influence buying of luxurious cars (Bernstein, 2010). Additionally, in an interview with a chief marketing officer of Audi America, the CMO indicated that Audi Car Company identified two important components in the luxurious car brand market. These as he noted are: the sense and the soul. The CMO indicated that Audi Car Company ensures that their Audi cars make sense in terms of quality, value, residual value and safety so that the customers can trust them. Indeed Audi Car Company has gained the trust. In the past five years, Audi Car Company has increased the car sales in the US market from 34,160 units in 1997 to 90,116 in 2006, has expanded its dealers by about half its retailers, has increased its sales in other markets such as China, France and Great Britain and has doubled its model count (18 new models) (Bernstein, 2010). Integrated marketing communication second model according to (Pickton & Broderick, 2005) describes the whole process that completes the sender to receiver process. It involves as indicated, research and analysis, identification of the target audience, setting of the objectives, developing strategies and tactics, implementation and control. In Audi Car Company’s case, the strategy is based on showing the people that there is a new brand apart from the already existing that is better has a promising future. It also aims at capturing luxurious car lovers of the market. The company acknowledges the presence of other luxurious car producers such as BMW, Lexus and Mercedes. The strategy aims at showing that it is the best and will still be the best. BMW has been one of the best performing brands for along time in the luxurious market (Bernstein, 2010). Audi Car Company is aware that luxurious car buyers can go for BMW and so offers competition. Their competitive strategy has proven effective in the past years. IMC is about marketing of products. It needs consideration of what the company has and what the people need. The message should be able to show the people that it has all that they need and this requires planning. The approach taken by Audi car is to advertise a model that is of its audience’s interest and provoking the competitor (BMW) to try and fight them, or show how innovative, hardworking and interested in their customers they are. This is evident in the billboard advert in Santa Monica, where the Audi car company advertised a car model, the A4, and clearly wrote on the billboard “Your move, BMW” (Horatiu, 2009). Recently, these two companies have been involved in advert wars. An IMC strategy all depends on the aim of the IMC. If the aim of an IMC is for example is to persuade people to buy the Audi car, the message will show its advantages, its convenience in relation to specific situations in which the targeted buyers are involved in, its features that people like and so many factors depending on results from market research analysis. The current aim of Audi Car Company considering the advertisements that it makes in relation to its competitor can be considered to be, to convince the public that there is a different luxurious car, which is affordable, appealing, efficient and better. The company acknowledges the existence of other car companies the produce luxurious cars (especially the BMW car Company) but is trying to convey a specific message to the people: “The time is now; one model one design for luxury is not enough. We all have different tastes and preferences. Audi provides a variety for you to choose from. It is our luxurious brand time now!” On the other hand, the message being conveyed to the competitor is, “Others can make it too, and you are not the only one. Your time is up!” This is clear in the adverts that the two companies place on billboards (Santa), TVs (in the last advert) and other forms of IMCs. This is evident in most of their advertisements. The adverts reveal that the market is aware of the presence of a new car and that the cars are the right ones for them now. When adverts are produced comparing BMW models and Audi car models, the message is to show the people that the current time is for Audi and that BMW has had its share, the message is targeting luxurious car lovers and influencers and through billboards and TV adverts, the message reaches its receivers. BMW Strategy BMW Car Company is using a similar strategy to fight on. The company is also producing advertisements that show it is better that Audi car Company and that it is still on the run for quality, value, performance and other luxury car features. In the bill board that the Audi car Company placed in on the corner of Santa Monica Blvd. and Beverly Glen Blvd, the company’s dealer responded with a bigger billboard with the word “checkmate” written on it (Ebrahim, 2010). This kind of message is both to the consumers of BMW and the competitor. To the customers, it shows the company is still best choice when it comes to luxurious cars and to the competitors, the message shows that BMW is still above Audi Car Company. Recently, BMW placed an advert on top of Audi dealership in Hong Kong with the words “Who knew efficiency could be so beautiful” (Ebrahim, 2010). Conclusion Considering the market situation, (the fact that there Audi is fighting to win the luxury car brand market and the presence of long time owners of the market), the messages conveyed through advertisements are very appropriate. The advertisements are the integrated marketing communication activities that the company uses to pass the relevant information to its customers and to its competitor (BMW). Market research has been conducted and results show that there are four companies dominating the market (BMW, Mercedes Benz, Audi and Lexus) The results also show that Audi and BMW are rivals. In order to inform the public about their competitive position, Audi Company has to fight any rival adverts made by BMW and they also have to show BMW that they are strong in the market. The messages in adverts therefore are very appropriate. It therefore means that the integrated marketing mix is effective in its aim. Recommendations Since Audi Car Company’s strategy has proved to be effective, it is important to acknowledge their achievements in their next coming advertisements. This will boost their sales and show the target audience that indeed Audi is the car of the time. The company has to consider the chances of BMW outpacing it in the market because of such advertisements. It should focus on a message that will show the competitors that they have a higher target than just competing with them and to the customers that the Audi is all they need now. Since Audi Car Company’s market has grown, sending a message to the target audience will need t show that the company has won. The last friendly competition showed how Audi cars outpaced the BMW. It acknowledged the no offense factor and demonstrated that there are always winners, runners up and losers. BMW were the runners up. The TV ad revealed an Audi car passing the BMW car indicating that it came from far to pass one of the market leaders. The next advert should cover the Audi car further away and setting the pace for the rest of the luxurious car companies. References Ebrahim, A., April, 2010, BMW-Audi Ad Duel Continues – In Hong Kong, Automotive News. Retrieved on 13th, May, 2010 from: http://www.carthrottle.com/bmw-audi-ad-duel-continues-in-hong-kong/. Bernstein, M., 2010, Audi's Aggressive Action Plan, The Auto Channel. Retrieved on 13th, May, 2010 from: http://www.theautochannel.com/news/2007/03/29/041665.html---AUDI Horatiu B., 2009, Billboards War: BMW vs. Audi. Retrieved on 12th, May, 2010 from: http://www.bmwblog.com/2009/04/13/billboards-war-bmw-vs-audi/. Introduction to IMC, 2008, Retrieved on 13th, May, 2010 from: http://webcache.googleusercontent.com/search?q=cache:IupTaohs2cIJ:v5.books.elsevier.com/bookscat/samples/9780750679800/9780750679800.pdf+Audi+car+IMC+strategy&cd=12&hl=en&ct=clnk&gl=ke&client=firefox-a. Kitchen, P. J. and de Pelsmacker, P., 2004, Integrated Marketing Communications: A Primer, London, UK: Routledge. MMC Learning, 2010, Marketing Communications: What is IMC. Retrieved on 13th, May 2010 from: http://www.multimediamarketing.com/mkc/marketingcommunications/---imc 3 Pickton, D. & Broderick, A., 2005, Integrated Marketing Communications. 2ndEd. New Jersey, USA: Prentice Hall. Sirgy, J. M., 1998, Integrated Marketing Communications: A Systems Approach, New Jersey, USA: Prentice Hall, Yeshin, T., 1998, Integrated Marketing Communications: The Holistic Approach, Massachusetts, US: Butterworth-Heinemann. To the Marketing Communications Director Audi Car Company Dear Sir/Madam; RE: INTEGRATED MARKETING COMMUNICATION STRATEGY MIX Based on the performance of the Audi car company in the luxurious car market I would like to congratulate the company for its hard work. The strategy used to develop an integrated marketing communication mix has proven effective and I would recommend further use of the same strategy although with caution. Every effort has to be acknowledged. The growth of and improved performance of the company deserves acknowledging considering the advert wars that the company has had with its competitor over the past few years. The market situation created by the advert wars and the company’s aims to dominate the market, demands the passage of the right information to the receivers which in this case are the competitors, the buyers and the influencers who are waiting for the company’s response. I would therefore recommend the integrated marketing communication mix that I have described below. This will help the win more customers and Audi car buyer influencers and set the record straight in the luxury car brand market. Please feel free to contact me incase you have a different opinion. Thank you Yours Name Communication Consultant Proposed Integrated Marketing Communication Mix: POWER POINT PRESENTATION (APPENDIX 1) Reference: Audi UK, 2010, Audi Car Company: The Pictures, http://www.audi.co.uk/ Billboard Read More