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Principles and Practice of Marketing Communications - Case Study Example

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The paper "Principles and Practice of Marketing Communications" is a perfect example of a marketing case study. The companies which provide mycoprotein food products in the United Kingdom recognize six major forces of the macro-environment that affect their marketing plans: demographic, economic, natural, technological, political and cultural forces…
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Principles and Practice of Marketing Communications Introduction The companies which provide mycoprotein food products in the United Kingdom recognize six major forces of the macro environment that affect their marketing plans: demographic, economic, natural, technological, political and cultural forces. For such a company to be a strong competitor in the marketing environment, it is imperative that they adhere to the major forces of the macro environment. In this case, changes in the cultural environment and demographic environment have had the most impact on the mycoprotein food products providing companies. The campaign for Quorn will be designed to reposition the company beyond its vegetarian heartland to being seen as an all-round healthy food in the United Kingdom. Demography “is the statistical study of human populations, including their size, distribution and growth” (Miller & Layton, 2000, p42). The demographic environment is an important interest to mycoprotein food products providing companies as it involves studying consumer's lifestyles and habits, which play an imperative role in their buying habits. The cultural environment consists of institutions and other forces of society's basic values, perceptions, preferences and behaviours. (Kotler, 1998, p123) In the last 30 years, there has been a noticeable alteration of the attitudes and demands of consumers. Society in the last decade has shifted towards a healthier attitude towards food. Consumers are now more educated on the nutritional content in their food than they were in the 1970's, and many prefer quality food, which is healthy. 1. Communications opportunity analysis and theory application In today's world, mass-marketing is giving way to micro-marketing, by which organisations struggle to identify and focus on the people most likely to buy. The one-product-fits all concepts now fit fewer and fewer. Even niche marketing is giving way to one-to-one marketing: tailoring a product or service to the needs of a single customer. Under the traditional organisation structure, the sales and marketing message gets fragmented across numerous strategies and tactics. Marketing often develops messages that the salespeople fail to sell or which contain service promises that operations or customer service fail to deliver. At big organisations, even marketing messages become fragmented across medium, meaning that advertising, promotion, and other marketing tactics fail to leverage each other or, even worse, work at cross-purposes. Integrated marketing mobilizes all of a company's marketing and sales strategies under a single vision and strategy implemented in concert by all of the organisation's relevant departments. In the traditional model, an organisation is made up of separate departments dedicated to a specific discipline, such as sales, marketing, market research, customer service, advertising, promotion, public relations, trade shows, events, information technology, manufacturing, and distribution. Often, they seem to operate in their own little worlds, with the result that management "silos" emerge by which different departments operate with different agendas and often not in concert. The Barriers to Integrated Marketing There are a number of reasons that people resist the shift to integrated marketing. Some of them are: Turf — People are possessive of their domains. Salespersons, especially, do not like to share information that they've worked hard to acquire and that they believe they own. They do not like to reveal their confidential tactics for success. They want others to be surprised by their strategies and impressed by, perhaps even envious of, the results. Ego — This ties in with turf issues. If everybody shares, people become equal. It becomes difficult to tell who has the better information, the smarter suggestions, or the greater success. Budget — If departments work toward common goals, the thinking goes, management might not consider some departments more important or more successful than others. Therefore, they wouldn't deserve larger budgets; they might even see their budgets cut. Inertia/disenchantment/fear — These are the three components of resistance to change. First, inertia makes people want to keep doing what they've always done; it's just easier. Second, people often are disenchanted with leaders constantly experimenting with a new management flavour of the month. Third, people resist change because they fear the unfamiliar. Important issues in developing relationships For today’s marketers, customer relationship management is very important and this is the area where on which our campaign for Quorn will focus. Our agency understands that good relationships are the key to developing loyal, long-term customers. But it's only through integrated marketing that the contemporary enterprise can take the actions required to build those relationships. In UK, customers have more options, and they're more demanding. They have access to more products, more sources of information, and more ways to buy, notably, online. That means that marketers have more competition than ever. Today's customers also know that they don't have to settle. If you don't offer what they want, someone else will. And if no one does, customers might just decide to go without rather than accept something that doesn't please them. The marketplace is changing. Traditional organisations developed products or services, set sales goals, and devised plans for creating demand. Managers must be willing to use the data they collect and analyze. They must be constitutionally able of changing their thinking from “This is what we want to sell; how will we market it?” to “This is what the customer wants; how will we provide it?” That change can be especially difficult if customers reject a product or service in which much time and money have been invested, or one that has an influential champion at the company. Integrated messages can be sent only by an integrated company. This is a major consideration. Integrating a company could require structural changes, perhaps scrambling the organisation chart. At the very least, it means establishing cross-functional teams in which every department is represented. The role of sales force Salespeople are an important source of information about customers and prospects. Whether on the phones or in the field, they're the ones making direct contact and gathering vital data. At the same time, new technologies enable salespeople to do their jobs better. With cell phones, palmtop computers, and personal computers linked to the home office, salespeople can gather information quickly, transmit it to the office, and get rapid replies for the customer. The company gets up-to-the minute feedback, and the customer receives personalized service. It's important for inside salespeople and field salespeople to share account information, and it's always a good idea to include customer service and other functions in the loop. Potential problem: Independent reps and distributors, and sometimes company salespeople as well, can be reluctant to share their information. Only in a truly integrated enterprise will they be willing to do so. Integrate outside agencies with the company and with each other. Probably the easiest way to achieve this is to use a single agency to handle all elements of a particular campaign, everything from advertising and sales promotion to direct mail and event promotion. But if that's not possible, individual agencies must communicate with each other, either directly or through an in-house liaison person. There's no way they can produce consistent, compatible messages unless they have the same information about target audiences and strategic goals. Foster teamwork. Marketing integration requires close coordination between departments. A company based on integrated marketing would never let the advertising department work in a vacuum: every department that is involved with delivering a marketing promise has to be involved with its formation. This means cross-functional meetings to develop strategy as well as camaraderie and understanding between departments. Institute regular cross-functional meetings. Integrated marketing not only involves all department heads in overall strategy development, but also requires consistent interdepartmental communication to ensure that each group is doing its part according to the plan or to identify unexpected problems. 2. Communication strategy and campaign evaluation This section will explain communication strategies and campaign evaluation will be adopted for Quorn. The meaning of marketing concept is a business philosophy which states that the satisfaction of customers' wants is the economic and social justification for an organisation's existence. To implement the marketing concept, Quorn should: — Be customer oriented in decision making and activities — Strive to maximise profitable sale volume — Systematically co-ordinate all marketing activities Distinguish Between Marketing and Selling Marketing is where a company finds out what the customer wants and develops a product that will satisfy that want and still yielding a profit. The company is bending its supply to the will of consumer demand. — Emphasis is on customers' wants — First determine customers' want and then work out how to make and deliver a product to satisfy those wants — Management is profit oriented — Planning is long run oriented, in terms of new products, future markets and growth. — Stress is on wants of buyers Selling is where a company makes a product and then uses various selling methods to persuade customer to buy it. The company is bending consumer demand to fit the company's supply. — Emphasis is on the product — Company first make the product and then work out how to sell it — Management is sale-volume oriented — Planning is short run oriented, current products and markets — Stress is on needs of seller Value Added Marketing The concept of value added marketing is the relationship marketing which recognise today's informed, sophisticated customers need to be rewarded with extra benefit. Thus, for Quorn’s campaign relationship marketing seeks to add these benefits and does so in a way it creates a feeling of partnership between the firm and its customers. In marketing practice, the value-added concept means that companies add value to their product with a cluster of intangibles such as better-trained salespeople, increased levels of courtesy, more dependable product deliveries, better service after the sale, and innovations that truly improve the product's value in the eyes of the customer. Therefore common options such as air-conditioning or power steering may be incorporated into the initial price of the vehicle. In today's highly competitive marketplace these value-added benefits give the company a competitive edge. The campaign for Quorn will trace the stages of management evolution from the production and selling stages to the marketing and societal-marketing stages. The idea is to build a better mouse trap. The underlying assumption is that people will naturally seek and buy product that are well made and reasonably priced. The campaign will shift Quorn’s emphasis to selling its output: — Selling and sales manager will be given new respect and responsibilities — Promotional efforts and activities will be increased Communication Strategies Marketing Mix is the set of marketing tools which will be used for Quorn’s campaign to pursue its objectives in the target market. Product, Price, Promotion, Place — the 4 P’s. Marketing management aims to make the marketing concept an operational reality, rather than simply an ideal to which the firm pays lip service. It involves a three step process — planning, implementation and evaluation. Planning i) Situation analysis — a) analysis of the Quorn’s external environment, b) analysis of the specific market, c) analysis of the Quorn’s products situation, c) Analysis of the of the competitive situation ii) Marketing objectives — Developing clearly expressed statement of what the plan is to achieve. Marketing objective flow from the firm's financial goals. These goals are derived from the organisation's corporate mission and objectives should be specific, measurable and realistic. For example, improve net profit by 10% iii) Target market and positioning strategy — Quorn’s marketers will seek to identify particular group of customers whose wants they feel they can most completely and accurately satisfy. Once a Quorn will select particular market to target, it must decide how to present itself and/or its products to those customers. The development of a particular image or perception for a product or organisation is called positioning. iv) Marketing mix A marketing mix is the combination of the four major elements that make up a company's tactical marketing programs "“production, pricing, distribution (or place of availability) and promotion. Product: developing the right good/service for the target market Pricing: selecting the right base-price level Distribution = selecting distribution channels to make product available to customers, selecting and negotiating with intermediaries. Promotion: informing and persuading the market about the company's product, using advertising, personal selling. v) Budgets and control forecasts for sales, costs, expense and profit other measurement against the set objectives. Implementation This step will convert the Quorn’s plans into action by deciding on the answers to following questions. How should the business be structured and organised? Which department should perform which task? Who are the right people to do this? How do we find them? What direction and guidance is needed to enable the tasks to be carried out? Evaluation This step will monitor the Quorn's actual performance as it carries out the marketing programs. How many each product did we sell? How much did we sell to each market sector or customer? How much did it cost us to make these sales? How much profit did we make from particular products areas or customers? Were our promotional programs effective? Following are the external forces which can influence Quorn’s marketing: — Demography — Economic conditions — Competition — Social/cultural forces — Political/legal forces — Technology — Natural forces The campaign report will explain the interaction between Quorn and its immediate external environment; its market, suppliers, and marketing intermediaries. External micro-environment factors are: — The firm's market: People or organisation with needs and wants, their purchasing power and their buying behaviour. — The organisation's suppliers: Provider of goods and services and their quality, service and price. — The marketing intermediaries: Marketing intermediaries are independent business organisations that directly assist the flow of products and services between a marketing organisation and its markets. Wholesalers, retailers, other selling organisation, and providers of trade channel service such as transportation, warehousing and financing. It is necessary to relate the marketing department of Quorn to other functional departments which will highlight the interdependence, constraints and opportunities inherent in these relationships. Quorn’s marketing system will be inevitably influenced by its production, financial and personnel capabilities. For example, if management is considering adding a new product, it must determine whether existing production facilities and expertise can be used. If the new product requires a new plant or machinery, financial capability enters the picture. 3. Creative Ideas The TV medium has traditionally been considered one of low interactivity and passive audience reception. We referred to TV communication as transmissional because consumer activity in this environment is pure reception. There is no interaction required from the viewers. However, some authors stress that marketers have to make consumers active (Liu and Shrum, 2002: van Dijk and de Vos, 2001), which brings us to the concept of control. Control can be considered from the perspective of the marketer as well as the consumer. Even though it is the same phenomenon, the two actors see different sides of it. Control is a basic requirement and a desirable outcome from the side of the marketer, who controls what information is requested and the choices that can be made by the consumer. It is a way of influencing the communication content. Increased interactivity is the unique characteristic and primary distinction of new technologies compared with other traditional media (Bezjian-Avery and Calder, i998; Hetter, 1989). Steuer defines interactivity as "the extent to which users can participate in modifying the form and content of a mediated environment in real time" (Steuer, 1992, p. 41). On this continuum some communication technologies are relatively low in their degree of interactivity, such as newspapers, radio, and broadcast TV, while others, such as computer bulletin boards, video games, the internet, and other multiuser domains are more highly interactive. Steuer's definition focuses on the user's ability to input (primarily the conversation pattern); interactivity is only driven by customers' choice, while the medium simply serves to facilitate this interaction (Schumann, Artis, and Rivera, 2001). However, our research proposes that control is quite heavily mediated by the channel (Trappey and Woodside, 2005). In traditional media, users have many choices, but no control over the messages. The only thing they can do is change the channels to look for the messages that match with their own existing attitudes and interests. This means that the choice of the channel(s) will have an impact on the level of interactivity, as an outcome of the process, which is influenced by the users' perceived experience with the channel. If the consumer does not experience this interactive environment with regard to that particular medium or device, the "sense of interactivity can greatly diminish" as they will no longer feel engaged in the conversation (Shih, 1998, p. 656). Communication will rupture (Haeckel, 1998; Liu and Shrum, 2002). To encourage consumers into synchronistic communication, marketers employing the Quorn in strategic communications should be adept at allowing the consumer to control the nature and outcome of interactivity. By allowing the consumer to control interactivity, the traditionally passive audience is transformed into one that has active control and participation. As a result of the conversation with the consumer, the marketer can develop greater knowledge about the consumer. Furthermore, over time the consumer can be more involved in product/service and brand (Trappey and Woodside, 2005). The extent to which consumers chose to disengage in interactivity represents a measure of the consumer's level of control over the campaign communication process. In other words, the campaign's response wears out over time. 4. Media Strategy and execution The conceptual foundation focuses on defining the core characteristics of the consumers' interactivity. Working toward this conceptualization, the concept of interactivity is introduced by looking at various marketing, advertising, web-based, and communications perspectives, where an argument for a multidimensional conceptualization of interactivity is formed. This report suggests a £6 million budget for advertising campaign of Quorn. At first sight there seems to be a clear distinction between communication and interactivity in which "… it is possible to have communication without interaction (for example listening to the radio or watching TV), but not interaction without communication" (Jensen, 1998, p. 188). Distinguishing one from the other might bring us closer to a definition of interactivity. So in the following we look closely at the domains of communication and interactivity from the perspective of both the marketer and the consumer. In the domain of communication, various pattern models exist that aim to explain the base structure of communication between two actors or mediums (Bordewijk and van Kaam, 1986; Hoffman and Novak, 1996; McMillan, 2002). Basic communication is usually referred to as one-way communication, where the sender has a strong influence over the channel and the message. The receiver receives this message on an ad hoc or continuous basis. This definition at one extreme represents the traditional "flat world" way of how companies communicate with their consumers and highlights some components of the communication process. We build from these perspectives to underscore why the Quorn's communication process is driven by the consumers' desire for interactivity. In fact, rather than being flat, this communication process is asymmetrical because the receiver has a strong influence over the channel, message, and timing. McMillan and Hwang (2002) outlined the feature perspective, which seeks to identify the general characteristics of communication. The definition cited above represents a monologue in which a sender disseminates information content to attract an audience or to perform some other persuasive communication function (Hoffman and Novak, 1996). This communication is transmissional because information is produced by the central provider (TV) and its distribution is controlled by the central provider (Bordewijk and van Kaam, 1986). This definition, in conjunction with the TV environment, represents two important features, the direction and the control of communication, where the direction of the communication is set (one-way), and where the marketer retains control of the process (McMillan, 2002). Interactivity has to go beyond what this environment (channel) can offer, and by definition it should start with the basic assumption that it is a two-way communication. However, Newell and Newell-Lemon (2001) ask whether the customer is interacting or simply reacting. Because of this, a monologue and feedback communication should be classified as being interactive, even if it is, to a lesser extent, by definition a two-way communication. The existence of two-way communication means by definition that the marketer/firm sends a message to the consumer, which generates a response. It might happen that the marketer and consumer only interact once during a particular campaign, but the essential element is that the actual interaction has happened. It is the basic level of interactivity. Therefore, to measure interactivity we need to count the number of actual transactions by each consumer over time who engage in two-way communications. Therefore, for Quorn this report proposes that: Consumer interactivity is characterized by two-way communications, measured by the number of consumers who are interactive once. At this stage the questions arises as to what else is needed to identify and define interactivity in the communication process. One would expect that the real interaction would involve more Quorn foods to be completed between consumer and marketer, which implies that we would expect them to interact simply more and continuously, as well as more quickly. This means that marketers and audience have to act and react to each other in a continuous manner, which brings a new feature into the interactivity equation, the temporal dimension. This temporal dimension focuses on responsiveness (Rafaeli, 1988): for a conversation to evolve, feedback should be immediate (Shih, 1998). They assert that the immediate succession of action and reaction reinforces interactivity, which Alba et al. (1997) refers to as response within seconds. Therefore, on the one hand we are interested in the continuous nature of this relationship, which we still can consider as counting the transactions, but on the other hand we have to focus on how many consumers respond continuously and how many of them exit the Quorn (Lee and Park, 2007). We also have to take into account how quickly they interact. This feature is referred to as synchronicity. It should be pointed out that the synchronous nature of interactivity is not only driven by consumers who have a choice to be engaged or not, and how quickly they will do it. Synchronicity is enhanced when marketers implement flexible programming that encourages interaction with consumers that is like a "conversation" (Trappey and Woodside, 2005). From a temporal perspective, measurement should then focus on consumers who engage in two-way communication more than once. In the context of the Quorn, this report argues that synchronous communication is an important component of interactivity especially because viewers who have interacted for the first time with the television program or advertisement may easily become distracted by other activities or get bored and switch between channels. Therefore, flexible programming is a vital element to maintain the sense of interactivity of an otherwise passive audience (Hoffman and Novak, 1996). In mutual discourse or interpersonal communication (Hoffman and Novak, 1996), the sender and receiver roles are clearly distinguished (McMillan, 2002) and this will our approach in defining the concept of interactivity during the campaign for Quorn. However, with regard to the control feature, it should be pointed out that this distinction has a detrimental impact on the interactivity process. This means that the consumer should not be only considered as the receiver of the message, but as a co-creator of the content. Therefore, this report proposes that control can be maintained in the Quorn if the customer is perceived to have control without being conscious of it. In reality, the value of this interactivity for the consumer is "the extent to which users can participate in modifying the form and content of a mediated environment in real time" (Hoffman and Novak, 1996, p. 84). 5. Other communication mix activities including direct and digital The uses of integrated marketing communications (IMC) are widespread and varied. Throughout the world, a variety of concepts, approaches, methodologies, and applications exist around the mean that academic agreement is difficult. Yet, in spite of the continuing theoretical confusion, a large numbers of agencies and marketing organisations continue to deploy "integrated marketing" or "integrated marketing communication" programs. In a 2004 study, 89 percent of nearly 300 US-based marketing decision makers reported they were "executing integrated marketing campaigns" (Millward Brown, 2004). The list of global IMC program sponsors include the likes of IBM, Microsoft, FedEx, and Accenture (Kitchen and De Pelsmacker, 2004; Kitchen and Li, 2005; McArthur and Griffin, 1997; Prensky, McCarty, and Lucas, 1996). Despite nearly two decades of active use, the concept of IMC still is in academic and professional development. And those challenges to the practice often represent honest efforts by researchers and theoreticians to meet the radical marketplace changes that IMC espouses. Change is never easy. And, changes in concepts, theories, and methodologies that long have been accepted are even more difficult. Implementation generally provides the impetus for IMC conceptualization. It allows that businesses can develop and use IMC even as the theoretical debate of its proper definition continues. Traditionally, IMC academic research has concentrated on perception and understanding of marketplace practice, i.e., the perspective from either the advertiser or the agency. In fact, one of the reasons that the understanding of IMC understanding has emerged so slowly is because its practitioners have been more interested in its development and implementation than its measurement and value. Implementation research is the first step in developing information that would be required to verify IMC--or, more specifically, articulate its conceptualization, theorization, implementation, and evaluation. The results, in turn, could provide additional implementation research that would be essential for the further maturation of this new paradigm. Direct Marketing Communication Tools IMC is difficult to research in that it involves both concepts and processes (Duncan and Caywood, 1996). Moreover, those concepts and implementations vary from one organisation to another, from one researcher to the next. IMC essentially is a management approach that aligns and optimizes the communications impact of various disciplines. Reviews of previous IMC research are tempered by the degree of implementation employed, by the focus of organisational strategic development, by the cooperation between different groups involved, by existing (and emerging) barriers inside (and outside) the organisation, by compensation systems employed, and by metrics of outcomes (Kitchen and De Pelsmacker, 2004). One major shortcoming of previous research attempts is that they most often measured short-term outcomes (Kitchen and Li, 2005)--a failing that inevitably leads to evaluation problems. IMC likely needs to be viewed as a dynamic three-dimensional model rather than a flat, standardized, operating definition--as opposed to the linear basis of all other marketing and/or communication theories. IMC implementation can be generated by a variety of communication agencies, even firms that are independent of each other. Perception research needs to measure the expectation that such cooperation might bring. Any implementation research therefore also should measure the level of effectiveness that might be gained through interagency cooperation. Compensation considerations also are an important part of IMC evaluation. Some agencies agree to a flat compensation system based on an annual contract. Others prefer a merit system based on a commission contract that provides an objective measurement criterion (Kim, 1998). As a more precise alternative, Schultz and Kitchen (1997) claimed that a compensation system based on the measurement of Return-On-Communication or Customer-Investment (ROCI) can be a key element in the future development and management acceptance of IMC. When measurement is properly conducted, IMC evaluation becomes possible (Eagle et al., 1999; Kim, 1998; Kim, Han, and Schultz, 2004; Schultz and Kitchen, 1997), a practicality that could resolve many IMC practitioner and academic developmental problems. IMC decision-making architecture comes in two forms: (a) internal operations primarily focused on each of the various marketing communication disciplines and (b) external agencies that provide expertise, guidance, and implementation. The various client internal models vary according to managerial structure, organisational philosophy, the specific industry or field in which the organisation competes, as well as the firm's cultural context (its scope and specialty). The external role likeways depends on a number of considerations apart from the IMC function, most particularly by how the organizing firm coordinates the services supplied by the various in sourced communication disciplines. This process necessarily is mediated by the perceptions, attitudes, and even contractual agreements of the agencies involved. Discussions of the combination of decision processes starts with the client organisation (Caywood, Schultz, and Wang, 1991; Duncan and Moriarty, 1997; Kitchen and Schultz, 1999; Schultz, Tannenbaum, and Lauterborn, 1993) and moves on to advertising agencies (Eagle et al., 1999; Kallmeyer and Abratt, 2001; Schultz and Kitchen, 1997). Considerations of how public relations (PR) functions might be integrated into the mix largely have been absent from this body of research. A number of PR practitioners contend that their industry has long practiced IMC (Duncan and Caywood, 1996; Harris, 1991; Kitchen and IPR Marketing Communications Group Members, 2006). For IMC to have long-term success, it must be grounded by a unified approach based on strategic dimensionality research. 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