Social Media Marketing Communications - Term Paper Example

Name Course name Professor Date Contents INTRODUCTION 3 MARKETING COMMUNICATION 4 ADVERTISING 5 WORD OF MOUTH ADVERTISING 6 SOCIAL MEDIA 7 BILLBOARDS AND OUTDOOR ADVERTISING 7 ELECTRONIC MEDIA 8 WEBSITE MARKETING COMMUNICATION 9 ANALYSIS RESULTS 10 AGENCY BRIEF 12 REPORT APPENDICES 13 The output of a session is working creatively on the brief. 13 Timing plan for the future campaign. 15 Proposed budget for the future campaign 15 References 17 INTRODUCTION Marketing communications is used to define the relationship between an organization and its customers[The15]. The relationship is represented by the message and media used to reach the customers. I will focus on McDonalds Cooperation’s marketing communications campaign. The McDonald brothers: Richard and Maurice (Dick and Mac) built the first McDonalds in 1940. The Corporation provides retail food services. McDonald’s restaurants offer a range of food menu example hamburgers, cheeseburgers, fillet, French fries. It serves approximately 69 million people in over 100 countries every day with more than 35,000 outlets worldwide [McD15]. Ray Kroc was the first franchisee appointed by the McDonald brothers. He opened his first restaurant near Chicago in Des Plaines, Illinois on 1955. Ray Kroc thus founded the McDonald’s company on April 15, 1955. The company’s headquarters are in Oak Brook IL. Hamburger University training facility also located near the base.[McD151] Ray Kroc saw McDonalds as a success and suggested to franchise the restaurants throughout the country. To control the uniformity, he decided first to own the restaurants before franchising them. Initially, the company mainly attracted families. The company had more than 100 restaurants by 1959. “Look for the Golden Arches” advertising campaign in 1960 gave sales a big boost. Advertising still plays a crucial role in developing the McDonald’s Corporation. The company changed its logo from the “speed” to the Golden Arches logo it was today in 1962[McD15]. The company had rapid growth in the 1960s due to its skillful marketing campaign and its flexible response to consumer demands. Ray also carried successful test marketing and market research, helped new franchises to set up and start operating. He was also constantly looking for new ways to improve the McDonald system. The company diversified its menu during the 1980s to suit the changing tastes of consumers[McD15]. McDonalds’ restaurants have a mission statement similar to other restaurants. Its brand mission is to be customer’s favorite place and a way to eat. Currently, it's running its “I love it” marketing campaign for all the McDonalds trademark and its affiliates. MARKETING COMMUNICATION Marketing is an essential business function that includes product research, merchandising, pricing and contact with organization’s customers. Marketing involves identifying what customers need and meeting these demands[Kok15]. A group will apply a communication mix in their marketing. This refers to a group of methods or tools an organization uses to promote its goods or services to its customers. Examples of marketing communication mix tools include adverts, public relations activities, sponsorships, direct marketing, personal selling, sales promotion, exhibits and product placement. The appropriate tool get selected through the following criteria. First, the tool should be chosen according to its geographical reach. The organization has an intended number of target audience example worldwide or region-wide[Kok15]. Social media is one of the best means to arrive at a global audience. Secondly, the control the organization has over a marketing tool is also a criterion. The organization may have an intended level of control they need over the message from the device. Public relations allows minimal control over the message, unlike advertising that allows full control over the message.A marketing tool is as strong as the level of credibility it creates for the organization. This is the third criteria in choosing a marketing communication mix tool. Lastly the financial resources available is also considered. Some tools example advertising requires a lot of funds to perform its intended function. Other tools example exhibits are not as expensive. Today, many organizations are using a combination of marketing methods in its marketing campaigns[Kok15]. It’s an integrated marketing communication. It allows the use of a mixture of communication methods to communicate with a company’s target customers. Mass media is an essential element of integrated marketing communication ADVERTISING Advertising is the most expensive and prominent tool of marketing. It allows an organization to have maximum control over the message and medium used to carry the message to the target audience. McDonald’s carries out global advertising. The corporation has its branches in different locations in the world[McD152]. The diversity in culture and positioning of the branches makes the company use dual adaptation. Double adaptation involves changing its adverts or promotional campaign depending on the location. It also applies double adaptation on its products. Example through restricting the sale of beef burgers in India as cows are considered sacred to the Hindu community. The McDonalds use of the dual adaptation strategy in its advertising has helped the organization succeed in its global operations[McD152]. The company uses both standard and customization techniques on its products, pricing and promotion strategies. To maintain the brand image of the corporation during customization, some elements example the color scheme, and the golden arches are supported. McDonalds creates a particular image on its audience’s mind which known as branding. It uses this to deal with competition example the “I love it” slogan used to brand it in its current marketing campaign. WORD OF MOUTH ADVERTISING This involves the organization directly influencing the opinion of other customers[Lis15]. A customer may positively influence other customers’ opinion to access services from McDonalds. A group may also take part in the word of mouth advertising through the following ways. First the group composes a message in a social network to market their services[Lis15]. McDonalds used a “pay with loving” slogan in its commercial. The slogan went viral in social media and through word of mouth especially due to that the promotion ran through Valentine’s Day. Interactions between the consumers and users of McDonald’s services led to a marketing buzz that amplified the original marketing message. Secondly, McDonald’s awards loyal customers who promote the corporation through word of mouth. This is through the use of coupons, promotions, gifts and gift cards. This encourages the regular consumers to further improve the company’s services to other people.Lastly, the organization may also employ word of mouth agents to advertise the group. McDonalds has agents used worldwide to promote the club by word of mouth. They do this by encouraging other customers that are “friend get friend” schemes. This form of word of mouth advertising has a higher level of control as compared to the other means. SOCIAL MEDIA McDonald’s brand has been built mainly through the social media. The use of social media allows the corporation to reach its particular narrow target audience[Bou15]. The use of social media in marketing is a segmentation strategy. Social media allows the audience to interact with each other as well as with the organization. It also engages the audience to participate in promotion campaigns and provide their opinions and suggestions. The audience may also create content that compels other people to use McDonald’s products. The social media is also a means for the corporation to monitor their audience’s sentiments about the brand. The social media thus allows the customer to be a part of the marketing department. Blogs are the new viral social media for the customers to express their opinions openly. Emailing, SMS/MMS and microblogging (Twitter) are some of the common means of advertising through social media. Social media is the collective source of viral marketing through its content seeding and tracking characteristics. The social media is also being incorporated into the integrated marketing communications strategy so as to reach consumers on their mobile devices or the web. McDonald’s uses the social media to ensure that the message spread through the social media relates to the corporations intended brand image. BILLBOARDS AND OUTDOOR ADVERTISING They are used to create a significant impact on the target consumers in a local area. The placing location of the billboards and outdoor adverts is essential if it is to succeed[KDa11]. The size of the advertisement is also considered. In using advertisements an organization considers the amount of time a customer can spend focusing on a billboard advert. Color, humor, and insight are common elements of billboard advertising. McDonalds used an interactive advertisement to market its goods. The billboard campaign was known as “pick N play”. It allowed customers to play a fun and interactive game to get a free McDonalds treat. It allowed the user to control the game using their mobile phones and did not require them to download any app as long as they were within the game area. If a player lasts for more than 30 seconds in the game, a digital coupon of the treat they wanted is sent to their phone. The customer can then use the card in any nearby McDonald’s store. The idea used the latest technology and interactive ideas to attract the attention of clients in the area. The corporation is also humanizing its information so as to satisfy its consumer’s needs. ELECTRONIC MEDIA The use of electronic media in marketing is known as electronic marketing, e- marketing. By definition, e-marketing is thus the application of marketing principles and techniques through electronic media[Qui15]. A corporation first needs to carry out research about its target audience before deciding on the best electronic media to use. The internet is the primary electronic method used. E-marketing thus refers to all the activities done by a business over the worldwide web to attract new customers and developing the brand’s identity. Through research, McDonalds discovered that majority of its target market were late night shift workers. It also found that customers made decisions in the restaurant they prefer a few minutes before they make the purchase[MFi14]. McDonalds began offering extended hours service. They made advertisements of this using billboards and their Restaurant Finder app. The app allowed customers to see adverts of the extended hour’s service when they are near participating restaurants offering the service. The app required the customer to download it so as to access its functions. The corporation decided to use mobile phones as it was easily accessed and available to everyone. The Internet offers a global audience reach thus provides a means to achieve a wider range of customers. WEBSITE MARKETING COMMUNICATION Corporation sites are recently being used mainly to attract consumers. Other functions of a corporate website include keeping customers up to date on example special offers, new product or service launches, and information about the business[The151]. It is also used to improve customer service by providing contact details online and other information about the goods or services of the organization. The contact information promote contribution from the customers’ thus promoting interactivity. The McDonalds official website is designed using the brand’s official color scheme, red. It contains a list of menus meant to attract more customers. The website first has a food menu. It contains a list of food choices offered as well as its nutritional values. The second menu includes a list of the latest products McDonalds has introduced. It also contains some characteristics of the product. Thirdly, the website provides information about the history and operations of the corporation through time. Careers are the fourth item. It provides information about its working force, training, qualifications, benefits and career options for veterans. The fifth item allows the user to input their location so as to find nearby McDonalds stores. The website also offers a search facility, a list of the services offered and a means for directly contacting the corporation. It also allows the user to present their questions about any of the products the organization offers as well as details of its operations[McD10]. The website is frequently updated with new menus and locations of new stores. The site get focused on the consumer needs[McD10]. This is through the use of sorting elements to allow the user to search through the site according to their specifications. The graphical image of its products is also presented. ANALYSIS RESULTS The brand vision matters as it defines the corporation’s objectives and differentiates it from other similar organizations[McD151]. This year the company announced a new brand vision to put more effort into loving it. It uses the tagline “I love it”. The firm also changed its uniforms, crew members, packaging and signage in restaurants at the start of the year. The cooperation objectives include: optimizing profitability by reducing costs, increasing market share and achieving 100% customer satisfaction. To ensure customer satisfaction, the organization is strict on providing healthy foods of required quality and nutrition and larger menus. This is through its strict product standards, enforcement of operation procedures and its close relationship with the suppliers.The global diversity of the corporation get considered. It deals with this through its dual adaptation strategies. This is through changing of its menus depending on the location of the store example a non-beef menu for Hindu countries. An organization is also as strong as its agencies. The reach and level of expertise of an agency determine the results of its marketing and advertising campaigns. Recently the corporation has employed the Y&R Group’s Digital Agency of Australia to work on its social media marketing[Ric15]. The specialized digital agency will promote the corporation more. In Australia, they have the DDB and Leo Burnett as its creative agencies. It also has the OMD as its national media office. These strategies will ensure the corporation achieves its objectives by the end of 2015 in Australia. Marketing expert agencies have been employed in each country to ensure the cooperation’s success. From the above McDonalds has found the right combination of its marketing techniques. This has been the reason for the cooperation’s continued growth from the 1960s[McD15]. McDonalds also follows the latest enhancements in technologies example the interactive billboards and phone apps to market its products. The McDonalds is a global corporation due to its franchising means of operation. The franchising idea of the organization has also been the reason for the global spread of the corporation. Their method of franchising has also ensured uniformity of its products globally. Its global operations are the reason as to why social media and the web are the main elements used in marketing by the corporation. Promotion based advertising means succeed most for the organization during commercialization. Example the interactive billboard that increased its sales. The cooperation serves only 2% of the world’s population though it is a global cooperation. The 7 P's of marketing get used. The 7 P's involves product, price, promotion, place, packaging, people, and positioning[Stu15]. The Corporation introduces new products by testing the market using promotions example free offers. It ensures uniformity of products and packaging in all its stores. The workers get trained handling skills. Its promotional strategies direct marketing and publicity example through public relations. Most of the McDonalds stores get located in easily accessible places and also offers home deliveries and a drive to pick up products. AGENCY BRIEF The corporation is known as McDonalds. It has been in existence since 1940 and has globalized with time. Its management is based on the three-legged stool philosophy. This involves the organization concentrating on its owners, suppliers and company employee’s needs and balancing their interests[ess03]. The organization’s objectives include: to ensure consumer satisfaction, increase its shares in the market and to increase its profits by reducing its costs of operation. It segments the market according to demographics variables of age and lifestyle. The corporation thus concentrates on the family thus targeting a diverse market. The primary competitors of the cooperation includes Burger King, Taco Bell, Panera Bread and Subway with McDonalds as the current market leader. The cooperation has an advantage over its competitors due to its global reach, service quick delivery, and reasonable prices. It also wireless range that allows making orders for home deliveries. It's online campaigns and outdoor advertising has earned it global recognition. Currently, it is carrying out the “choose loving” campaign with the brand idea “I love it”. The cooperation’s competitors are now switching to healthier based diets which are a threat to the corporation[McD152]. McDonald should also try to create healthier menus. The emergence of the new stronger competitors is one of the major threats the organization is facing. It can deal with this with teaming up with new upcoming restaurant outlets. The organization should aim to carry out a new campaign to team up with such restaurants. This will reduce its competitors as well as broaden its market and products. This will also promote product differentiation. The cooperation wants to start a new campaign “Together for you”. The campaign will show that the different association’s working with the McDonalds are doing it for their customers. It will also help the aid in its process of teaming up with other competing restaurants. The campaign will also be a show of appreciation to its customers who depend on its products. The campaign slogan will be “Anything for you”. The campaign will use all of social and new media methods. Promotion and outdoor advertising activities will also be used. The campaign should run for a long period as it is of low costs. It may also coincide with other attacks during its running length. The newly restaurants incorporated into the McDonalds’ cooperation will also introduce healthier menus for the cooperation. New shareholders to promote publicity of the cooperation will get invited to the company. Currently, McDonalds has Coca-Cola brand as its only global shareholder company. The campaign will also appreciate its loyal customers while encouraging new ones. The campaign thus aims to get at least ten competitive restaurants to be part of the McDonald’s cooperation[McD152]. Secondly to promote loyalty of its customers and to reward its loyal customers. Thirdly, to invite a minimum of 30,000 more customers by the end of the campaign and registering them in loyalty schemes. REPORT APPENDICES The output of a session is working creatively on the brief. From research, the main issues affecting the cooperation involves the competitors and customers of the organization. An increased number of competitors to the corporation is reducing the number of clients to the organization. The competitors are also coming up with healthier substitutes of McDonald’s products thus attracting more customers[McD152].The customers get attracted by new stores offering unique products and services. The cooperation is thus losing most of its clients to new upcoming shops. The cooperation should thus deal with loyalty issues of its clients. A quick means of ensuring loyalty is through appreciation efforts. This makes consumers feel comfortable with the McDonalds cooperation and its products. This promotes loyalty. Loyalty schemes can also get used. With these ideas in mind, the campaign “together for you” was identified. The campaign will deal with bringing independent and successful stores to join the McDonalds cooperation. They will own their individual menus and added lists from McDonald’s stores or a combination of both to create unique products. The campaign will also show its appreciation for its customers through the campaign slogan “Just for you”[McD152]. The campaign will emphasize on its appreciation for its loyal customers through the activities it has done for their benefits. The campaign will also hand out gift hampers to extremely loyal customers. This campaign also intends to attract new customers by showing the benefits its customers receive.The brief thus aims to inform the agency and cooperation of the main objectives of the campaign while ensuring it supports the goals of the corporation. The campaign will also help in facing the major threat to the cooperation, competition. The campaign activities will get divided among the advertising & media agencies and the public relations of the McDonalds cooperation. The primary goals of the campaign will thus be: deal with the competition through collaborations and expressing appreciation to its loyal customers while inviting new ones[McD152]. The introduction of new healthy food menus by the cooperation provides an opportunity for the campaign to be used to introduce the new products through gift hampers and competition rewards. Healthy food campaigns by medical institutions and nutrition organizations will also assist in introducing the new product during the campaign. One of the threats to the campaign is the ability to maintain the loyalty of the at least 15 competitors gained from the campaign. Secondly the campaign may gain new customers from the campaign but it will be hard to maintain them before the battle ends. This is because most of the appreciation efforts will be towards the long and short term loyal customers. The campaign will aim at event planning organizations as the campaign decision makers. It will seek to ensure they obtain the corporation’s products and use them in their games. This will invite more customers to its products as well as gain credibility for their products. This may also prompt other competitors to join the corporation so as to get the market and reliability bonus the corporation has[McD152]. Timing plan for the future campaign. The campaign will occur in all the major states in the USA. The campaign will first be announced to the public as the current campaign ends. The campaign will run for six months during the summer period. Any promotional events will be held on the weekends during the evening at Major McDonald’s stores. The advertising programs in the media will begin a few days before the official start of the campaign to introduce the idea[McD152]. Advertising agencies are to be informed a month earlier of the campaign. This will help them prepare the adverts positioning, messages, and location. The company may also change the campaign schedule where needed. Proposed budget for the future campaign Activity Expenses Total sum spent on the activity. Employing an advertising agency Subscription fee- 15,000 Research fee- 30,000 Personnel costs-25,000 70,000 Advertising programs and media Radio & television adverts-100,000 Public relations activities-5,000 Sponsorships- 50,000 Outdoor advertising-20,000 Advertising agents-10,000 Social media- 5,000 Newspaper and magazine adverts-50,000 Publicity-15,000 Sales Promotions Free samples-30,000 Competitions-5,000 Premiums-15,000 Gift hampers-80,000 385,000 Actual campaign Travelling expenses-50,000 Promotion campaigns-30,000 Employed personnel- 50,000 Location expenses-80,000 210,000 Campaign monitoring costs Personell-50,000 Media evaluations-10,000 Audience research-10,000 70,000 Total campaign cost 735,000 References The15: , (The open university, 2015), McD15: , (McDonalds, 2015), McD151: , (McDonald, 2015), Kok15: , (Kokemuller, 2015), McD152: , (McDonalds, 2015), Lis15: , (Jennings L., 2015), Bou15: , (Boundless.com, 2015), KDa11: , (Daniells K., 2011), Qui15: , (Quirk, 2015), MFi14: , (Fitzgerald, 2014), The151: , (The Marketing donut, 2015), McD10: , (McDonalds, 2010), Ric15: , (Ricki, 2015), Stu15: , (Visit, 2015), ess03: , (UK essays, 2003), Read More