Integrated Marketing Communication as a Strategic Marketing Process - Case Study Example

JETSTAR AIRLINES Name Course Name and Code Instructor’s Name Date In the current dynamic business environment, business companies are working tirelessly to increase their customer base, improve their competitiveness in the marketplace, and ensure customer loyalty. This can be achieved by a business organization through ensuring all company business communication and messages are linked together to provide consistency. Integrated Marketing Communication (IMC) is the processes of integrating the company’s promotional tools for them to work together in harmony (MMC Learning, 2009). IMC is defined as a strategic marketing process specifically designed to ensure that all messaging and communication strategies of a business organization are unified across all channels and centred on the customer. In essence, IMC process strongly demand for identifying and assessing customer prospects, develop marketing messages that are tailored to customer prospects in terms of serviceability and profitability, evaluating the success of these efforts in order to minimize waste and transform marketing from an expense into a profit centre. Integrated Marketing Communication creates a competitive advantage, boosts sales and profits while at the same time helps the company to save money and time resources (MMC Learning, 2009). The IMC marketing strategy is one that wraps business communication messages around the customer that are essential for him/her to make decisions at different phases of the buying decision. The business organization through IMC consolidates its image, develops a dialogue thus nurturing an interactive relationship with the customer (Barker, et al, 2012). IMC comes with a myriad of advantages, as it will be seen in the later parts of this paper. This paper seeks to discuss Jet Star Airlines marketing communication strategies and the degree of strategic message integration. Similarly, the paper will determine whether the company communications are in line with its business activities. In this regard, the paper will discuss the various marketing communication tools, messages, and the medium through which the company communicates to its chosen audience. Lastly, the essay will evaluate different types of shortcomings that the company experiences by using IMC. Integrated Marketing Communication tools comprises of various marketing tools including advertising, public relations, direct marketing, interactive/internet marketing, sales promotion, and personal selling. These marketing tools are significantly employed by a company with a singular objective of ensuring that similar brand promotional messages reach a wider customer audience. Implementation of the integrated marketing communication within any company is vitally important for the organization to interact with its clients effectively. In this regard, the company must come to an understanding that its products and services will benefit or will add value to the end users (MMC Learning, 2009). Similarly, for the customers to discover that there are such quality products and services on the market, the company must effectively promote their brand and thus create the demand. Accordingly, it is important for the company to identify their target audience and design marketing messages that will specifically influence this target audience. In the same line of explanation, it is extremely important for the company to realize that not all people are interested in their products; the company must come up with extensive promotional strategies that will automatically have impact on such persons to change their attitudes and thus decide try the new product or service. In general, the company must effectively communicate the benefits of the products and services they are offering. The IMC has the ability to effectively integrate all modes of brand communication and use them concurrently and simultaneously to promote various company products and services across different customer niches that will in turn increase the company’s revenues and profitability. The IMC tools are discussed below: Advertising is an effective marketing technique that is significantly effective in brand promotion. It is defined as any paid form of personal communication about an organization, product, service, idea, or cause by an identified sponsor (Hackley, 2010). Advertising is essential in helping business organizations to reach a wider market audience within the shortest time period. Advert messages are designed and communicated to the target audience through radio, billboards, television, newspapers, and magazines among others in order to influence the prospective customers to believe in the company’s products and services while at the same time motivating them to buy the same product for an extended period (Barker, et al, 2012). In essence, advertising creates customer brand loyalty. Advertising has the following benefits to the company: the advertiser has the ability to control the marketing message, it is a cost effective method to communicate to large audiences, it effective way to create brand images and symbolic appeals to customers, and it is also an effective communication method to establish a responsive chord with consumers. Advertisement not only improves consumer consumption of a particular product/service, but also it creates brand awareness among customers (Barker, et al, 2012). In this regard, marketers must make sure that right messages developed reach the targeted customers timely. Similarly, they must be cautious of the advertising message content. Despite of the above advertisement benefits, the latter has the following shortcomings; it is costly as running adverts is extremely expensive, adverts can also elicit credibility problems and consumer scepticism, and above all, it is difficult to determine advert effectiveness (Hackley, 2010). Sales Promotion is marketing activities that provide extra value or incentive to the sales force, distributors, or ultimate consumers and has the capability of stimulating immediate sales. There are two types of sales promotion: Consumer-oriented and Trade-oriented. Consumer-oriented sales promotions target the end users of the product or service. The media used in sales promotion include coupons, sampling, premiums, rebates, contests, sweepstakes, and POP materials. Trade-oriented sales promotion activities target marketing intermediaries including retailers, wholesalers and/or distributors (Barker, et al, 2012). The techniques used here are things such as promotional allowances, merchandise allowances, price deals, sales contests and trade shows. Sales promotions are particularly important in introducing new products, influence existing customers to buy more, attract new customers, combat competition, maintain sales in off season, increase retail inventories, tie in advertising and personal selling , and enhance personal selling efforts. Direct marketing is another IMC tool that is described as a system of marketing through which the company or business organization communicates directly with target customers to generate a response and/or a transaction (Yeshin, 2012). This tool allows the organization to communicate directly with the consumer. Direct marketing methods include direct mails, catalogues, telemarketing, direct response ads, direct selling and the use of the internet. Direct marketing provide the following benefits to the business: customers are more responsive, allow marketers to be selective and thus give them the ability to target specific market segments of customers, the marketing message can be customized for specific customers, and it is effective and easier to manage (Yeshin, 2012). Despite of these advantages, direct marketing have the following disadvantages: lack of customer receptivity as well as low response rates, and the latter comes with image problems particularly when using telemarketing (Yeshin, 2012). Interactive/Internet marketing is a form of marketing communication that provides both the organization and the customer an interactive podium through which the customer can directly participate in modifying the content of the marketing messages or the information content they receive in real time (Yeshin, 2012). It allows a two-way flow of information. The internet can be used as a marketing tool where it is an advertisement medium to inform, educate and persuade customers, through shopping carts it a direct sales tool, essential in creating customer database information, and provide customer service support. Moreover, it is used to interact and communicate with customers directly, essential in building and maintaining customer relationship, can act as a tool for implementing sales promotion and public relations programs (Yeshin, 2012). Internet marketing provide the following benefits to the organization: the latter can be used across various tools of IMC, marketing massages can be specifically be tailored to particular customer interests and needs, the interactive nature of the internet culminates into greater levels of customer involvement, and can provide extensive amount of information to customers (Percy, 2012). Internet marketing has the following disadvantages: the internet is yet to be a mass medium for communication and many consumers lack access, attention to internet adverts is very low, there is a great deal of clutter on the internet, and the audience measurement is unattainable on the internet. Publicity or public relations is a non personal communication regarding the organization, product, service, or idea not directly paid for or run under identified sponsorship. Drivers of publicity include company news releases like single-page news stories sent to the media who will print or broadcast via broadcasting media like television or radio (Aulenbach, 2007). Company feature articles; these are larger manuscripts composed and edited in a particular manner. Press conferences; these includes meetings and representations where reporters and editors are invited. Additionally, special event like sponsorship of events, or programs of public value (Aulenbach, 2007). Publicity has advantages such as increasing company’s credibility, less expensive, and often results into word of mouth. However, publicity has the following disadvantages: it not under the organizations control and can elicit negative company image. Personal selling involves person-to-person communication whereby a seller attempts to assist or persuade prospective buyers to purchase a product or a service. This tool has the following benefits to the firm: the direct contact between the seller and the customer allows for more flexibility, the sales massages can be tailored to specific needs of customers, it allows for more direct and immediate feedback, and sales efforts can be targeted to specific markets and customers who are best prospects (Percy, 2012). Regardless of the mentioned advantages, personal selling can also be detrimental to the company in the following ways: high cost per contact, extremely expensive when targeting to reach a larger audience and it is also difficult to have consistent and uniform messages delivered to all customers. The communication process in IMC involves the following entities: sender, encoding, message, media, decoding, receiver, response, feedback, and noise (Aulenbach, 2007). The sender in this perspective is the person sending the message to another party; the business to the customer. Encoding is the process of putting thought into symbolic form. The message is the set symbol that the sender transmits to the receiver. The media is the co0mmunication channel through which the message is transmitted to the receiver (Percy, 2012). Decoding is the process through which the receiver assigns meaning to the symbol from the sender. Receiver is the party receiving the message sent by the sender. Response is the reaction of the receiver after being exposed to the message. Feedback is the part of the receiver’s response communicated to the sender. Lastly, noise is the unplanned static or distortion during the communication process, which results in the receiver getting a different message from the one that was sent by the sender. For the message to be effective, the sender’s encoding must be compatible with the receivers decoding process. Similarly, effective messages always comprise of words and symbols that are familiar to the receiver. Following this understanding, marketers may not share their consumer’s field of experience; however, they are obliged to understand the consumer’s field of experience in order tom design effective marketing messages (Aulenbach, 2007). For any company to communicate effectively with their customers, they must identify the target audience, determine the communication objectives; design the marketing message that is in line with the objectives; choose the medium that will be used to transmit the message; select the message source and the collect feedback (Aulenbach, 2007). Jetstar Airways is the Australian low cost airline that is headquartered in Melbourne, Australia. It is a subsidiary of the Qantas group and was created to respond to the competition posed by then the low cost airline Virgin Blue. The company was launched in 2004 and since then the company has continued to build its customer base and currently the company boasts of more than 100 million passengers per year (Ferrell, et al, 2012). The airline operates both the local network as well as regional and international services from its base at Melbourne Airport, using a mixed fleet of Airbus A320 family and Airbus A330 aircrafts. Airline’s main competitor is Virgin Australia. With improved marketing techniques, that the airline has employed it has acquired its presence in the market (Ferrell, et al, 2012). The company’s Implementation of Integrated Marketing Communication tools, has earned it a competitive edge in the marketplace together with a market share winning new customers as well maintain old ones. The integrated marketing communication tools are extensively used by this airline; for example, the company has created its strong presence in the market place by using advertising messages that are compelling to customers (FAA, 2013). For example, in 2006 the company’s advertising slogan was “All day every day low fares” which was later replaced by the Jingle “Let’s Fly Jetstar.” The jingle was replaced by Szubanski “It’s All About Choice/Fly Away” and “Low Fares, Good Times.” These adverts are usually aired on the national TV during the prime times (Ferrell, et al, 2012). Similarly, the company has a company website that allows customers to interact with the company in real time. For example, customers are able to inquire about fares, products and services that the company offers. Accordingly, the company has social network links that are linked to Facebook, twiter, and You Tube which are extremely essential for different customers to interact and share their experience with the Airline (FAA, 2013). The company has a strong internet presence. The company’s public relations entity is one that sound and appealing, for instance the company was named the official sponsor of Australian National Rugby League team; the Gold Coast Titans in 2008 (Snippet View, 2006). Additionally, the company holds special events, for example, the introduction of the Jetout photo contest, which was held for 28 days from 12th December 2011 to 8th January 2012. IMC is a vital tool and has continued to increase the company’s revenues, customer loyalty, and continued customer attraction. These tools have helped the company to increase its effectiveness thus increasing its profits, the company brand awareness, and above increasing the competitiveness of the company (Snippet View, 2006). However, regardless of the above-explained advantages, Jetstar Airways experiences the following shortcomings, resistance to change and the special problem of communicating consistently with the target audience; for example, stifled creativity, time scale conflicts together with lack of management and expertise. In conclusion, Integrated Marketing communication is a significantly important for businesses and companies that are positioned to increase their presence in the marketplace. The IMC tools including advertisement, publicity/public relations, interactive marketing, sales promotion, and personal selling are key tools that when correctly adopted and implemented within the company’s marketing strategy, will earn the company tremendous benefits. The case of Jetstar Airways, despite of the company being in operation for the last eight years, the company has made greater exploits by implementing IMC tools in its marketing operations. Bibliography Aulenbach, S (2007) Business deconstructed – QANTAS AIRWAYS LIMITED. Melbourne: GRIN Verlag Barker, N., Valos, M. and Shimp, T (2012) Integrated Marketing Communication. Melbourne: Cengage Learning. 229 Federal Aviation Administration (2013) Instrument flying handbook: FAA-H-8083-15B. Melbourne: Aviation Supplies & Academics Ferrell, O. C. Lukas, B. and Schembri, S. (2012) Marketing Principles. Sydney: Cengage learning. 510 Hackley, C. (2010) Advertising and Promotion: An Integrated Marketing Communication. New York: Sage MMC Learning (2009) Marketing Communications. Retrieved on 22/08/2013, from; http://www.multimediamarketing.com/mkc/marketingcommunications/ Percy, L. (2012) Strategic Integrated Marketing Communications. London: Routledge Snippet View (2006) Aviation Business Magazine. Melbourne: Aviation Supplies & Academics 11 Yeshin, T. (2012) Integrated marketing Communications. London: Routledge Read More