Revolutionary Marketing Strategies for New Carbon Tax - Case Study Example

Introduction/background Marketing concept is well appreciated in quite a number disciplines. An effective formulation and implementation of Integrated Marketing Communication (IMC) plan that will seemingly overwhelm the stakeholders (policy developers including the federal government) should continuously trail a good marketing concept. Consequently, the target in the IMC plan will always remain as consumers’ needs and therefore meeting these set objectives will be the main aim of the plan. The reason for designing an Integrated Marketing Communication plan for new products and services is specifically to support advertising and promotion programs of the new products as well as giving a clear understanding of needs to the concerned parties. Revolutionary marketing strategies for new carbon tax in most of the companies in Australia were articulated in two decades ago. The main aim was to assist customers to understand better the mixed reactions of political situations in the country that were related to greenhouse gas releases, reimbursement of trade-exposed firms, household reimbursement as well as tax reforms whereby there was proposal of $3 million per year dollar provision for emissions. This later required administering of additional budget on resources so as to meet the objectives. However, the introduction of new carbon tax in Australia did not fully compensate the customers from these sensations. Therefore, the federal government had to develop institutional policies that will differentiate those that will be compensated from those who will not, and to determine the effectiveness of the carbon tax policy. Largely, the matter of climate change has profoundly affected a large scale of demography in Australia. People have been displaced, have contracted diseases and to some extend they have been affected by the natural calamities in the regions. Apart from these effects, the country has also experience a rise in sea level thus threatening the life along the coastal regions. Literature review The New York Times written by Gregory Mankiw (2007, 1-3) pointed out clearly on the gap that is there on global climate change which needs to be bridged. The gap is actually between the policy developers and policy advisors. That means if there is reconciliation between the two groups, then there will be an effective management of carbon IV oxide in the environment. Scientists express that emission from humans raises temperatures in the environment. On the other hand, economists proofs that when something is taxed, there is an assurance of getting small out of it. Therefore, global carbon tax will actually be used to reduce these emissions that ma y perhaps affect the health of a person. Apart from reducing emissions, the new carbon tax also aid in raising revenue to the government. Stephen H. Schneider and Lawrence H. Goulder (1997, 13) on the other side came up with a strategy where by emissions were to be reduced by considering the difference between emission fall timing and commencement of policy implementation plan. The two scientists focused mainly on mitigation measures of carbon IV oxide in the environment. Later, carbon tax was seen as the most efficient governmental tool that would be used for policy action in the federal government. Without government involvement in the damages resulting from large accumulation of carbon IV oxide in the environment, the total cost of the damage will not be brought into the market price of the fuels in the economy. However, a carbon tax that is well set will later replicate the use of incentives in economizing the consumption of fuels. A simple study by Steven Sorrell (2000) on the implementation of environmental guidance with the objective of integrating carbon tax policy showed that there is no clear link between the developed policy and the outcome of the effects caused by these emissions. As an alternative, the main research question was ‘how would the implementation of the new policy effectively focus on the main problem in the economy?’ The main uncertainty that hit most of the economies in the globe was what really causes an increase in carbon IV oxide in the environment. From the scientific consensus, greenhouses effect and global warming have been justified as the main cause of climate change in the ecosystem (Chris Oxlade, 2006, 18). However, the two occurrences may not perhaps be the only causes of climate change. Physical activities on the land can also lead to climate change. Deforestation for instance leads to unbalance use of gasses in the atmosphere. This physical change will merely affect the temperature as well as occurrence of rainfall in the vulnerable place. As the policy developers emphasize on relative increase of the amount of carbon IV oxide in the atmosphere, it is of great importance to examine also modifications in the biogeochemistry of the nitrogen phase as well as extensive land use which actually leads to increase in these emissions too (Peter M. Vitousek, 1994, 1861-1876). It is quite evidence that most of these activities that causes increase in concentration of carbon IV oxide are mainly human-based. The research by World Scientists’ warning to civilization conducted by Dr. Peter N. King (2002) showed that greenhouse gas emissions around Kyoto protocol increased from 28.7 to about 49.0 gigatonnes of carbon IV oxides between the years 1970 to 2004. This was a definitive to the federal government of Australia. Therefore, proactive strategies was to be discussed by the concerned parties on how to reduce the effects of excess carbon IV oxide as well us coming up with an alternative sources of fuel/energy to the economy. Adger, W. N. and Brown, K. (1994, 271) pointed out clear that, although the instigation of greenhouse is important to the economy as a whole, it has some side effects to the environment but this can be a potential strategy in reducing the emissions of carbon IV oxide through modifications of land use policies. These policies will have a potential ground since the existences of these emissions are the feasible elements that will enhance successful formulation as well as change. Australia among other nations of the world is under pressure in developing a computable general equilibrium (CGE) that will be very appropriate in implementing new carbon tax policy. It is clear that the structure will seemingly need an association between macro-economy and micro-economy variables for effective implementation (Zhou, J and Wang, T, 2002, 91). The two variables will always be based on the following assumptions from Emotions Trading Schemes (ETS) (Steven Sorrell, 2000, 423); Product prices and economy are not related in any case Firms can either enter or exit the industry since they are not affected by financial constraints Market power exists neither in the product nor the market ground. Target Audience From the literature review, the understanding of global warming that leads to climate change does not only affect health and well-being of people but also other living species on earth. Therefore, the Integrated Marketing Communication plan (IMC) on the implementation of carbon tax targets public health programs in the whole state that leads to adaptation of climate change and carbon IV oxide reduction as well as community-based programs which include both urban and rural populations, households and residence occupancy. According to Edward, W. M., Connie, R. and Anthony, L. (2008), an effective integrated marketing communication of a new program will certainly promote behavior change in the entire target audience. However, there should be a comprehensive translation research that will make the audience in the market to fully understand the need of this strategy which will in turn lead to effective implementation of the plan. Communication objectives of the plan The primary objectives of the plan are; 1. To examine the reliability of Integrated Marketing Communication and marketing strategies that inspires population behaviors to support implementation of new public policies in Australia. 2. To identify the potential target audience and create awareness for the introduction of new carbon tax program in Australia. 3. To discover the effective models of IMC that will enhance effective communication of attributes of the operative climate change insights to the stakeholders with the federal government being the main player and households and industries being the consumers of the policy. 4. To determine and define effective promotion strategy for new carbon tax. Creative strategies for the objectives of the plan The first objective is to examine the reliability of the IMC plan that inspires the population behavior in the state. a) The target audience for this objective is the state of Australia. It is necessary to acquaint the state by providing the relevant information on the effects of carbon IV oxide in the environment. This can be done through; 1. This information can be passed through the media, for instance coming up with sensational programs in televisions and internet that will attract the attention of the whole state. 2. Publishing the whole framework of action in the nation’s news paper will help the state as well as other audience realize the set solutions to the problem. This will apparently make the state be inclusive in the action plan. b) The state should support the implementation of new carbon tax since there is justifiable evidence that most of the industries are responsible for increased concentration of carbon IV oxide in the environment. Consequently, the state under the government will be able to generate revenue from this policy. c) Environmental policies as well as public health policies are two brands that seemingly focus on harmful components in the environment. These two may not be more comprehensive as carbon tax. Carbon tax is somehow different since its focus is on greenhouse effect and global warming. Any detection of carbon IV oxide, there is always a tax impact that makes the policy to be quite simple. d) The net impression from the state should be modification of the policy and formation of alliances that rejuvenate the implementation of this plan. The second objective is to identify the potential target audience and create awareness for the introduction of the new carbon tax. a) The stakeholders who developed the policy are the target audience for this objective. The main market segmentations for this objective is geographic (state) and demographic (household and industry). b) Since the desire from this objective is to have potential audience, the procedure should be inclusive and be considerate to the consumers of the policy. They were the one who identified the problem and thus they have to control all the situations pertaining implementation of new carbon tax policy. Obviously, there is an increase in accumulation of carbon IV oxide in the environment. Therefore, the stakeholders should use this evidence in the market such that the target market should care about the introduction of new carbon tax. Web-base communication will serve as an effective media of information passage since the potential consumers of the new carbon tax are large households and industries. Most of these consumers have appreciated technology in their systems. c) Tim Roughgarden (1999), used climate-economy exemplary to calculate the ideal control rate of carbon tax. This was very effective way of realizing the climate damages resulting from carbon IV oxide. Unlike carbon tax, other environmental policies do not have specific models for cost-benefit analysis. Therefore, the model makes the new brand (new carbon tax) a unique initiative for reducing the concentration of carbon IV oxide gas in the atmosphere. d) The net impression for the stakeholders is to analyses the consumers preferences by conducting a pilot study of the product, make effective positioning decisions and monitor the movements of activities while recording the information. The third objective is to discover an effective model of IMC that will enhance effective communication of attributes. a) The target audience for this objective is the state, households and industries. They are the major players in discovering an effective model for Integrated Marketing Communication plan. In order to come up with an effective model, deliberate information on the following should be collected; The role of different institutions and external participants in the process of market segmentation. In this case, the role of the government is to provide guidance as well as budget for the implementation of the policy. External participants on the other side are to develop a collaborative culture for the success of the policy. The data source is from the audience response specifically response from the main targets (households-(greenhouse developers) and the carbon producing industries). The collection of data through web-based interviews as well as use of questionnaires will be very effective. Both qualitative analysis and quantitative analysis will apply so as to get a comprehensive conclusion and recommendations. The communication process within the plan is web-based as well as use of cell phones and office telephones. The two are considered since they are cheap and fast. They also give immediate response from the audience. b) After recommending a model, it is very vital to develop a transparent market segmentation that will enable staff in the organization assign customers to a precise segment. This will generate enthusiasm for the process of implementation. c) The dominance of this policy over the others (environmental policies) will be realized when the model has marketing propositions that target consumer requirements. This will be enhanced by instituting marketing drivers of the policy. d) A good net impression for this product will be comprehended by apprising imperative insights to clienteles, challengers as well as organizational competences. The fourth objective is to determine and define an effective promotion strategy for the introduction of new carbon tax. a) The target audience for this objective is the state and the consumers of the policy (households and industries). Advertising will be seen as the real informer of the existence of the policy, but IPower (the use of web-based informers, for example, e-mails, twitter and facebook, in promotion of a product) on the other side will allow review and collection of response apart from promotion of the product. b) Marketing manager should be brought into action so as to exclusively arrange and control segmentation scheme. The manager also will set a team that will create an effective advertisement of the policy and segmentation workshop platform that is very inclusive to participant expertise. c) According to Alfred Dupont Chandler (1993), multidivisional organizations has been as the effective industrial firm that allocates necessary resources including human resource for any course of action. Therefore, in facilitation of new carbon tax initiative, the strength of the project is realized from the institution corporation. Perhaps this will make it easy to be enhanced. The media plan for the creative strategies Media plan for different organizations differ depending on the strategic plan for the course of action. As far as media opens the way to buying of products by customers, it also aids much in extensive marketing of the product. The media plan for these creative strategies will involve the following concepts; 1. Media outlet: This is the list of media that will be used to pass the information to customers. For this case therefore, the appropriate media will be the use of nation’s newspaper, internet based advertisement (IPower), televisions, radio and public posters. The most appropriate ad media for the state is the use IPower advertisement. This is where the company posts specifications of the product through institutions e-mails, personal e-mails, company’s websites and twitter. This will allow immediate response from the customers as well as attracting more since one may pass the information to a friend. Televisions and radio may be used when targeting households. 2. The media plan should also be goal oriented. This part will designate the main objectives of the advertising. It also defines the reason of the plan and explains how it meets the goals. Qualitative and quantitative aspects of the brand are also included in the goal. As defined earlier, the main goal of this Integrated Marketing Communication plan (IMC) is to develop an effective policy and communicate the agreed reforms for the reduction of carbon IV oxide to state, industries and households. Therefore, building the brand, raising transformations and accumulating incidences of the new carbon tax will aid much in making the goal clear to the stakeholders and the major participants in the market including competitors (environmental policies). 3. Target audience: Pilot study, web-based advertisement, market research and information surveillance will help a lot in collecting information about the target audience. Professional alliances for instance, government support, will extend the help of finding insights from trade journals that will help you fully understand the target audience. These journals and newspapers will make the policy developer pay attention to great imaginations on the potential customer of the policy. 4. Media strategy: The media plan should have a frequency procedure that will direct the information the required audience. This is well achieved by developing a simple matrix that will ask and record the communication from different customers. The following is a simple matrix for new carbon tax. Who will care for the policy? State, households, industries or it will be a public interest. What is the superficial reason for the policy? Government revenue Reducing accumulation of carbon IV oxide What is the view of other competitors in the market? (industrial analysis) Are they opposing or want to form an alliance with you in the market? How did you feel when you realize the need for implementation of new carbon tax policy? Very confident and inclusive or the future was very ambiguous. Is there anything new that needs to be communicated to the audience? May be reforms on the new carbon tax that you realized after incorporation of information from the audience Recommendations The implementing body (the government) should not only levy the new carbon tax on the enterprises, manufactures as well as the members of the public (households), but also take a review on other companies that are involved in fossil fuel production for it (carbon tax) to be effective. Carbon tax should be applied holistically from manufacturing to exploration in the fossil source chain. The application procedure of the new carbon tax should allow both the households and business time to adapt to the new changes. New carbon tax should be revenue-natural where the government can reduce the impact of it to the industries and households. The rate of impact should not be set high so that it will affect consumer’s behavior. Summary and Conclusion Finally question, “Is an institution policy reform really necessary?” Sometimes maintaining the existing policies are the best instead of going for the alternative. However, the alternative perhaps may be the best too if the advantages subdue the challenges. New carbon tax will tend to raise revenue to the government with the main goal of reducing the concentration of carbon IV oxide in the atmosphere that may results to global warming. This will also deviate most of the companies to energy conservation. Apparently an effective Integrated Marketing Communication plan will approve a valid policy that have a well set objectives, good creative strategy for these objectives as well as a outstanding media plan for effective passing information to the stakeholders. Reference Adger, W. N. & Brown, K. 1994. Land use and the causes of global warming. pp. 271. ISBN 0-471-94885-3. Alfred Dupont Chandler. 1993. Strategy and structure. Australia: MIT Press. King, P. N. 2009. Low Carbon Development Path in Asia Pacific. World Scientists’ Warning to Humanity. Retieved from: http://www.sdplannet-ap.org/Documents/Low%20Carbon%20Development%20Path%20in%20Asia-Ver3.pdf. Maibach, W. E., Roser-Renouf, C. & Leiserowitz, A. 2008. Communication and Marketing as Climate Change. American Journal of Preventive Medicine, Vol 35, no 5, pp. 488-499. Mankiw, G.N. 2007. One Answer to Global Warming: A New Tax. A New Tax - New York Times. Retrieved from: http://relooney.fatcow.com/0_New_2330.pdf. Oxlade, C. 2006. Global Warming. Our Planet in Peril. United States: Capstone Press. Roughgarden, T. 1999. Climate Alteration Policy: Quantifying Uncertainties for Damages and Optimal Carbon Taxes. Retrieved from; http://theory.stanford.edu/~tim/papers/shs.pdf Sorrell, S. 2000. Carbon Trading in the Policy Mix. Energy Research Center of the Netherlands VOL. 19, NO. 3, pp. 420-425. Retrieved from: ftp://ftp.ecn.nl/pub/www/library/report/2003/rx03066.pdf. Vitousek, Peter M. 1994. Beyond Global Warming: Ecology and Global Change. Ecology 75:1861–1876. http://dx.doi.org/10.2307/1941591. Zhou, J. & Wang, T. 2002. 'The development and inspiration of the tax CGE model', Journal of South-Central University for Nationalities, vol. 21, no. 4, pp. 91-93. Read More