Promotion Management: The Carbon Tax Law - Research Paper Example

Heading: Promotion Campaign Executive summary In order to handle global warming and climate change effects, Australian government has introduced carbon tax legislation on the polluting firms. Despite its benefits, there is great controversy between the proponents and opponents of the new law. Therefore, IMC has planned to undertake a promotional campaign with aims of informing, persuading, and reminding people of the significance of the tax. It also seeks to develop a favorable association between people and the tax by changing their views on the carbon tax law. It intends to do this through advertising, public relations, and social media sites. Table of Contents Executive summary 1 Introduction 3 Background information 3 Target audience analysis 4 Literature review 4 Communication objectives 5 Creative strategies 8 Media plan; media vehicles and timetable 9 Conclusion 10 References 11 Introduction Global warming and other climatic changes have caused adverse effects on the environment, and in turn, negatively affected human health and the Australian economy at large. The introduction of the carbon tax law in the country was aimed at reducing pollution in the atmosphere; thus, guaranteeing people safe living environment. Nevertheless, there is a controversy between the opposing and supporting groups on the implementation of the new law. One of the strategies that the government has employed in order to successful enforce the law entails a promotional campaign that will inform, persuade, and remind the public on the importance of the law. Background information As Sridhar (2012) reports, in an attempt to address the issue of climate change, the Australian government sets to initiate a carbon tax as from July 1 2012. The country’s main objective is to minimize its total greenhouse gases emissions (GHGs) by 5 % by 2020. In order to attain this goal, the government has proposed a carbon tax, which is currently controversial. The introduction of the carbon tax will be with a flat price of A$ 23 per CO2-e tonne. About 500 Australian top polluting firms, which represent half the predetermined number, will pay a fixed charge of A$ 23 per every CO2-e tonne emitted, and the charge will be hiked every year by 2.5% above the inflation rate. For three years prior to opening the emission trade scheme, A $9billion in profits resulting from the carbon tax will be used to recompense and aid jobs in most affected industries. According to the Australian government, 90% of its households will be reimbursed in a certain manner; with 70% absolute recompensed either through family payment increase or reduced taxes. Additionally, the government will utilize A$ 14 billion accruing from the tax to invest in clean energy sources and technologies. This amount is inclusive of A$ 1 billion to enhance energy effectiveness, A$ 3 billion on renewable energy, while A$ 10 billion on uncontaminated energy technology. In terms of its effects, carbon tax will help in the reduction of about 159 million tones of pollution from the country’s atmosphere if all proposed conditions are undertaken. Nevertheless, the tax will negatively affect the country’s GDP, small-income households, and increase energy price. Some of the drawbacks of the Australian carbon tax include little support from the public that views it negatively; it is exclusive of agriculture, which contributes 18% GHG emissions; poor policies on carbon tax; and high probability of companies moving to countries with no or low pollution charges (Sridhar 2012). Target audience analysis The main targets of the campaign include firms, young people, legislators, and working population in Australia. In terms of firms, the carbon tax promotion campaign will target those businesses whose operations contribute to the environmental pollution in the country. The targeted young people will comprise of high school, college and university students as they are the future leaders and main stakeholders of the legislation. Legislators are also vital in the campaign because their support is important in the implementation of the carbon tax law. Other working populations in the country are essential in that their support will matter in the successful enforcement of the new law. Therefore, these market segments’ opinions and support enhance the effective enforcement of the carbon tax the legislation. Literature review Climatic changes and global warming are the major factors that have led to the establishment of carbon tax in Australia. Other factors, which are also global warming indicators, include damaging of Great Barrier Reef and bleaching and dying of corals; high temperatures, short winters, long summers, unusual droughts and floods. As Brux (2011, pp. 55-60) notes, global warming can be caused by natural and man-made activities. Natural causes involve the wetlands and arctic tundra releasing methane gases. Besides, greenhouse gases are those that trap heat from the atmosphere, and cause global warming. Additionally, global warming is naturally caused by the earth’s cycles of climatic change. In terms of man-made causes of global warming, pollution is the key in the list. According to Brux (2011, pp. 55-60), this involves burning of fossil fuels, which originate from organic matter like oil or coal. During mining of oil and coal, methane is also released to the atmosphere; hence, causing pollution. In addition to this, population also accelerates global warming. High population rates cause great need for food and transport. As a result a lot of fossil fuels are burned, and thus, increased pollution. Furthermore, people breathe out CO2 that also contributes to air pollution and global warming. Other causes of global warming include chemicals like nitrogen dioxide, sulfur dioxide, Ozone, carbon monoxide, and lead (Mooney 2012, pp. 455-458). As Maslin (2009, pp. 1-10) says, global warming is known to cause harsh weather because of high temperatures. This could also imply frequent and stronger storms. This is because warmer temperatures lead to more water evaporation; hence high precipitation and possible flooding. Other areas may also experience long and severe droughts as a result of the global warming. Additionally, environmental changes affect human health due to global warming. Besides, there is an increase in spreading of diseases including those that were initially restricted to tropical regions. Therefore, there is a need to devise ways of managing global warming and climatic changes in order to improve human health. Furthermore, Saliken (2009, pp. 47-50) indicates that global warming and climatic changes are said to have negatively affected other species other than human beings. Some of the effects include shortened hibernation durations, altered migration patterns, and extinction because of failure to adapt. For instance, several animals living in arctic areas like penguins and polar bears have been compelled to leave their natural habitats to look for more comfortable homes that are close to the poles. In addition, global warming and climatic changes have caused prolonged droughts in various areas that adversely influence agricultural activities. Communication objectives Every marketing communication plan, whether it is conventional mass, e-mail-based, one-to-one, one-to-many, or internet based many-to-many, has common key objectives. In this case, the introduction of carbon tax in Australia has received mixed reactions from various individuals. Some of them are in support of the initiative as they argue that it will boost the country’s atmosphere through the reduction of GHGs emissions. On the other hand, the initiative’s opponents assert that the carbon tax in Australia will negatively affect the country’s GDP; low-income earners; energy prices; and domestic investments. In response to these reactions, there is an urgent need for sensitization and communication to the people on the importance of the initiative in the country. Therefore, there are certain objectives of communication of the legislation to the people which are discussed as follows: Firstly, marketing communication is intended to inform the public on the significance of the newly introduced carbon tax in Australia. This communication objective is aimed at creating and stimulating awareness and interest among people on the initiative (Dahlén 2010, pp. 92-95). This implies that the company is attempting to let the target market informed of the new service or product being offered and where it is found. In the case of the Australian carbon tax, this objective is set to inform people of the new law, and its significance in their lives and the country’s economy. Some of these benefits include purified atmosphere in the country; reduced droughts and floods; and reduced diseases. It is also intended to inform the public that the government has their interests at heart, and that is why the new law has been passed to ensure that people live in a safe and natural environment. Moreover, the informative objective is also set to inform the businesses and industries whose operations cause major pollutions in the country that people’s health is at stake, and that the government is not out to ruin their businesses, but to safeguard its people’s welfare. Secondly, marketing communication is set to persuade the public to accept and cooperate in the implementation of the carbon tax law in the country. In business, promotion marketing is aimed at persuading consumers that a company’s service or product will give high value to them in comparison to its competitors (Varey 2002, pp. 287-290). In the Australian carbon tax case, this objective serves to persuade people that the new-passed law has more benefits than costs to them. This is necessary because opponents believe that the tax will neither stop global warming, nor pollution in the country. These people also fear for their businesses, the country’s GDP, unemployment rates; and low-income households. Therefore, this communication objective will people that carbon tax law is beneficial as it will guarantee them a safe living environment, enhanced country’s economy, and pure atmosphere. Additionally, the persuasive communication objective intends to persuade everyone in the country to focus on the long-term benefits of the carbon tax law, and voluntarily take part in the enforcement of the initiative so as to realize success. Thirdly, Egan (2007, pp. 107-110) says that marketing communication is aimed at reminding clients to take the initiative; that is, buying company services or products. This usually happens after successfully persuading them on firm’s products. In the case of the Australian carbon tax strategy of tackling global warming and climatic changes, this communication can be used to remind the people of the benefits of accepting the law. It is used to remind the public that carbon tax has more advantages than disadvantages, contrary to what a majority of them think. Communication, in this case, is designed to remind them of the government’s favorable plans for the country’s safety, and its concern on the nation’s welfare. Besides, this communication is aimed at reminding the public of certain advantages of enforcing the law, such as, clean and safe environment, reduced floods and droughts, and normal summer and winter durations. It also reminds industries that it is crucial to invest on safe and clean energy technologies, as that would reduce their tax expenses. Moreover, this communication objective reminds people that clean and safe environment is vital in determining their health, businesses, farming, and their country’s economy. Fourthly, Varey (2002, pp. 287-290) maintains that marketing communication is also designed to change or form consumers’ opinions on some services or products of a particular firm. The formation or change of client’ opinion is influential in attracting him or her back to the company, which means high sales volume and profits for the business. With respect to the Australian introduction of the carbon tax as a way of handling global warming and climatic changes, marketing campaign is meant to change people’s opinion on the new law. This is because there have been a lot of controversy on whether carbon tax bill should be passed or rejected in the parliament. Even after its successful approval, most of the Australians still view the legislation negatively. According to the opponents, the new legislation is bound to have adverse effects of industries, low-income earners, energy prices, jobs, and country’s economic status. The opposition group also says that carbon tax legislation enforcement is likely to drive away many top polluters in the country, which are the country’s economic backbone, to other parts of the world where there is little or absence of such charges. Therefore, the promotion campaign is created to change these perceptions on the legislation to a positive one. This is achievable through letting them know that the government has taken all possible measures to ensure that no one is adversely affected by the tax, but that everyone benefits from it. Fifthly, Egan (2007, pp. 107-110) further asserts that marketing communication is often meant to create a positive association between the consumers and the service or product of a certain firm. Positive relationship is crucial in the improvement of a business performance through increased sales volume, customer base, and profits. In relation to the Australian carbon tax, there is an urgent need to develop a positive association between the public and the new legislation. This is due to the fact that there is a poor association between most of the Australians and the carbon tax. This poor relationship is as a result of people’s negative views on the legislation. Therefore, in order to succeed in the implementation of the carbon tax law, it is imperative that the government develops a positive association between the law and the public. This is because people will only cooperate when they are absolutely certain that the initiative is out to benefit them, rather than harm them. Additionally, Australian top polluters will willingly participate in the execution of carbon tax once they are convinced that it has more benefits than costs to them and the country at large. Consequently, it is critical that a positive relationship is cultivated between the opponent group and the proponent group of the carbon tax in order to effectively implement the legislation and attain its full benefits. Therefore, these communication objectives are vital in the successful enforcement of carbon tax legislation, as well as in the achievement of the government’s predetermined benefits. Creative strategies Some of the key creative strategies to use in the promotion of carbon tax are described as follows: To start with, some key celebrities, Avril Lavingne, Lady Gaga, Akon, and Bruno Mars will be featured in promotional communications like advertising. Each of these celebrities will be shown enjoying beautiful nature of Australia that is pollution-free by supporting carbon tax. For instance, Avril will be featured singing in Australian’s beautiful valleys and river banks. This advert will display all the celebrities enjoying natural beauty of the country. Then, people will be informed that carbon tax maintains the environment’s natural beautiful. They are then persuaded to take participate in carbon tax enforcement so as to enjoy their natural and beautiful environment. The second creative strategy will involve an athletic celebrity, Usain Bolt, endorsing the advertisement. In the advertisement, the celebrity will be featured drinking natural water from Australian natural rivers, hence becoming fast and strong. The celebrity is then captured attributing his strength and swiftness to clean and fresh water that he regularly drinks. He also says that “No carbon tax, no life!” The people are then encouraged to pay support the implementation of the carbon tax so as to live in a clean environment and grow healthy like Usain Bolt. In this strategy, people are made to develop a positive relationship between carbon tax and success and strength as shown by the celebrity. The third creative strategy involves workers in a mining company struggling to breathe as there is no fresh air in the environment. Some are seen on the ground, gasping for breath, while others are running out of the firm for fresh air. Besides, clients of the company are featured shifting to other highly performing industries. As a result, the fail to work and the company’s profits sharply drop. Someone else is featured paying carbon tax, and instantly workers regain strength and presume their duties. Immediately, the company’s profits sharply rise. Companies are then advised and reminded that paying carbon tax is influential in boosting their profits and working conditions. Media plan; media vehicles and timetable There are numerous media methods that can be used in the communication of the aforementioned creative strategies to the targeted audience. To begin with, advertising on television stations is crucial in the effective communication of the above creative strategies. According to Smith (2011, pp. 7-12), this is a kind of non-personal crowd paid communication from an acknowledged sponsor. This is one of the key marketing mix components of the carbon tax promotion campaign. Despite the fact that the advertising method is controllable, it is quite expensive, especially when it is done on television. It is vital in enhancing public’s awareness on benefits of carbon tax legislation, and in the creation of interest among the people on carbon tax law, and in informing the public about the significance of supporting the implementation of the carbon tax law. Secondly, this campaign can employ the social media sites to achieve the set communication objectives. Warner (2010, pp. 306-308) demonstrates that some of the sites include Facebook and Twitter, and YouTube. The use of these sites is beneficial in that the campaign will reach out to all the target markets effectively. Besides, the sites seem to be the most used means of communication among young people in the contemporary world. Through You Tube, videos of the creative strategies can be displayed to the target group. On Facebook and Twitter, carbon tax page can be used to inform, persuade, and remind people of the benefits of supporting carbon tax legislation in Australia. As Smith (2011, pp. 7-12) reports, public relations can be employed in the successful communication of the campaign’s creative strategies. This entails the growth and upholding of positive relationships with various publics. This mode of promotion is essential in that it has reliability. Although, it is done at low costs, the actual message cannot be regulated. Therefore, if it is successfully used in the promotion of carbon tax payment in Australia, it will reach many publics, informing, persuading, and changing their opinions on the new law. Conclusion Without doubt, Australian government is experiencing a tough situation in making the whole public see the benefits of the carbon tax law. This is because of the on-going controversy between its opponents and proponents. The promotional campaign is aimed at informing, persuading, and informing the people of the possible advantages of the law. It also intends to change their views on the tax, and to create a positive link between them and the new law. It targets polluting firms, young people, legislators and working people in the country. For successful communication of the creative strategies, the campaign will employ various modes, such as, public relations, advertising, and social media sites. References Brux, J 2011, Economic issues and policy, South-Western Cengage Learning, Mason, OH. Pp. 55-60. Dahlén, M 2010, Marketing communications: a brand narrative approach, Wiley, Chichester, U.K. Pp. Pp. 92-95. Egan, J 2007, Marketing communications, Thomson, London United States. Pp. 107-110. Maher, S September 13, 2011, Carbon tax bills begin journey through parliament, The Australian, National Affairs. Retrieved on April 24, 2012 from http://www.theaustralian.com.au/national-affairs/carbon-plan/carbon-tax-bills-begin-journey-through-parliament/story-fn99tjf2-1226135212975 Maslin, M 2009, Global warming: a very short introduction, Oxford University Press, Oxford New York. Pp. 1-10. Mooney, LA 2012, Understanding social problems, Nelson Education, Toronto. Pp. 455-458. Saliken, A 2009, Cocktail party guide to global warming: everything you need to know to converse intelligently about global warming in any social situation, Heritage House Pub, Surrey, BC. Pp. 47-52. Smith, R 2011, Strategic planning for public relations, Boca Raton: Taylor & Francis. Pp. 7-12. Sridhar, K 2012, ‘Practical solutions for environmental, health and safety professionals. The Australian Carbon Tax’, EHS Journal. Retrieved on April 24, 2012 from http://ehsjournal.org/http:/ehsjournal.org/kaushik-sridhar/australian-carbon-tax-forclimate-change/2012/ Varey, R 2002, Marketing communication principles and practice, Routledge, London New York. Pp. 287-290. Warner, J 2010, Do-it-yourself Web sites for dummies, Wiley John Wiley distributor, Hoboken, N.J, Chichester. pp. 306-308. Read More