Marketing Communication at Streetcar Company - Case Study Example

Marketing Communication: Streetcar Company Introduction Streetcar marketing communication is quite unique and this has enabled it to integrate its marketing mix to address the phenomenon of the 4P's (product, promotion, place, and price). At a larger extend this process has enabled the company to relate well with the people, the system, the processes and the materials evidence when carrying out marketing activities. The integration of the marketing communication means that the company has to include all the aspects of the company attributes into the product and all the strategies used in the marketing strategy should convey the same message. Marketing mix is associated with marketing communication and this allows the company to blend its elements of promotion into other operations and the result is more purchases of their services. The strategy used by the streetcar company is very exceptional as it also works in a way to preserve the environment. The advocates for a greener environment have affirmed that indeed there is no need to have many cars on the road and having a business that offers car sharing and car rental services is very effective way of ensuring that the emissions are reduced. The elements that are involved in the marketing of any company are not conclusive since there are a variety of them. The Core Concepts Insight to the buyer behaviour and their decision making process is entrenched in the core marketing concepts. Currently, marketers have been able to develop theories and prove them scientifically to explain the stable rules that apply to the marketing sectors and business communication. The major concern is addressing the observable features that are similar among all or most consumers and try to understand them vividly. It is very difficult for one to ascertain that marketing has a theory and that it is justifiable on the basis that it is logic and consistent. In the modern market regimen, the core concepts include the market strategy, eCommunication and eCommerce. Different methods of communication are involved by different companies to market themselves as this is the first process that will initiate the eagerness in customers to buy. When customers become aware of a certain product, it evokes a curiosity. Streetcar has established good strategy that incorporates eCommerce and eCommunication. These concepts are important in marketing because the strategy for marketing will enable a company to come up with a better marketing plan which is cost effective and successful. The understanding of human behaviour can enable streetcar to meet their marketing objectives which can be evaluated by certain aspects that are practical and measurable for instance the amount of sales, the profits, the market share and the ROI- return of investment. Objectives and Strategies The main objective of implementing communication strategies in a business is to increase the sales of the business and as a result increase its profits. The success of the marketing strategy will depend on the appropriate coordination and implementation of all the elements of a marketing mix which include pricing, promotions, place and the product. Business success is achieved by the realization of the business objective. The communication style in marketing is to give answers to the following questions about customers; who How When Where And why do they buy The streetcar company has integrated all the answers to the above questions and has established a strong customer base in the UK (Pelsmacker et al 2007). Evaluation of the market, control systems and use of direct communication allows interactive exchange of information and effective marketing of the products offered (Fill 2006). Streetcar is one of the biggest car sharing and car rental clubs in the United Kingdom and it was established in 2004. The customers are mainly the people who do not have personal cars and those who don't use their cars regularly. Currently, the clubs has over 40,000 members all over the country and it is operating in seven cities with seven locations. The mission of the streetcar club is to provide the public with an alternative way to enjoy the services of a car without actually having to own one (Bingley 2008). The club is said to be increasing at a rate of 300% every year. Just like other car clubs like Zipcar or City Car club, streetcar allows its members to get to drive whenever they are suited to, meaning that the time could vary ranging from one hour to even a full month (Bingley 2008). Communication Objectives helps to enhance brand awareness, building the firm's image, facilitating buyer behaviour, influencing attitudes and manipulating intentions. The communication strategy in this company is very essential because it's the major way the company can communicate with clients, make business deals, make orders, and the clients can also access the information they need without so many difficulties. For instance, when one wants to join the club, all that is required is to log on to their website streetcar.co.uk, and fill in all the necessary details and immediately after this, one is given a phone call to make all the inquiries (Bingley 2008). Furthermore, as already indicated above, getting a car has been made easier and one is required to call the company operators and make bookings where he or she will be referred to the nearest streetcar parking to pick up the requested car. According to the co-founders of the Streetcar, Andrew Valentine and Brett Akker, the main objective of the establishment, other than making profits is to bridge the gap between car owners who use them constantly and those who only need a car occasionally. The executives of this company are very smart in strategies and one of the most effective one is the operation of the business as a car club (Procter 2007). This is a new concept which has seen the club increase at a very high rate. In 2008, the membership increased at 200% rate and right now, the company has over 50,000 people using over 1500 cars. London city alone operates about 600 cars and the management has targeted to serve about 250,000 members by the year 2012. One unique strategy is winning customers by the word of mouth; this has enabled the company to convince people that they need to have a more sophisticated means to face the challenges of the new millennium by reducing the number of the cars on the roads. According to Fill (2006) this direct marketing is very effective and enhances the public relations of the company. The company has solicited about 6.4 million pounds for capital increase. Streetcar has a mission to increase the market to the entire European population. Streetcar understands that the buyer behaviour is very critical to the planning of the marketing strategy and implementation of the business objectives. This requires the understanding of the consumer behaviour. Consumer behaviour theories are attempts to give explanations as to why customers usually behave in a certain way and not the other and is basically the basis used by marketers to make their marketing mix in what is called marketing theory (Pelsmacker et al 2007). The basic buyer behaviour theory was postulated by Abraham Maslow, and this was based on the priority or the necessity of products and services and it mainly applies to the consumer goods. The second theory applies to merchandise or the industrial goods. This theory addresses the typical behaviour of buyers of organisational products or merchandise for business. Basic needs are the first concern that people take care of but with an increase to secondary needs, the necessity reduces (Pelsmacker et al 2007). The use of cars is basically a secondary need and some quality terms have to be involved so as to win the clients confidence. Streetcar focuses on the extraordinary service provision where quality is given the first priority and the value for money is incorporated. The company has exceptional working forces who are dedicated to supporting the streetcar operations; the company is increasingly gaining customers due to the increasing motoring expenses and one can effectively save a lot of money. Car sharing and car rental business is very effective and easy, as in people do not need to show up at rental deports equipped with a lot of documents like passports, booking numbers and even utility bills to obtain VW golfs rather, only a smartcard (streetcard) is required for one to find a car conveniently parked. The only effort is to book online and receive a text massage confirming your booking. Communication Tools There are several tools of communication that can be used by any business to communicate with its customers, suppliers, distributors and other stakeholders. Some of the common tools used include vouchers, telephone, internet and computers, television radio and print media. In the recent times, the use of internet has increased considerably and it is available to almost everybody hence making it a very convenient tool to be used for communication. The communication in the streetcar business is very effective and the use of internet is a better way of doing this since the world today has been increasingly taking the advantage of developments in technology to increase business operations. The type of operation the include the use of SMS services is timely because in the current civil society, at least every adult has access to a phone or internet services if not all of them. The website presentation of the car services provides clarity while use of short message service to reply to customers is very efficient. Combination of all these effects allows the branding style to be very exclusive; for instance the golf cars are all brand new, latest and gleaming presentation (Smedvig Capital 2009). Furthermore, each and every car is fitted with an iPod jack output which allows phone calls to be diverted to the car; this is the epitome of branding in the streetcar business which gives the appeal to use laptops. The civilised society has viewed this as a very smart way of providing solutions to the city resident's transport needs and convenience. A combination of internet services and telephone communication is well timed and a very effective strategy used by streetcar for its communications The clients can easily access or view the products online; the streetcar fleet is very attractively displayed on their website and it includes brand new Volkswagen polo, blue Motion cars and Volkswagen golf all which are reviewed regularly. The Volkswagen golfs are five seats, five doors and are many are manual transmission and only ten percent of them are automatic. Another advantage in the streetcar communication strategy is the fact that their service centre which operates from 7am to 10pm is free and the cars have a hands free phone feature and mobile phone calls can be received from the cars as long as one has plugged the iPod to the car Buyer Behaviour Buyer behaviour is very difficult to manipulate because the customers keep on purchasing for different reasons, however, there are some common elements that have been observed in their buying behaviour. Several researchers have postulated different theories to explain the purchasing decision of customers and one such a theory is the risk model. When goods are displayed or when a customer gets to know about them, a need to buy is triggered by several factors either external influences or internal ones. In the risk model, the customer will gather information about the product before making the real purchase. Since the clients cannot judge whether the product will satisfy his or her needs she will have to make the decision based of risk analysis carried out. Overcoming the purchase risk is difficult but once one is convinced that the benefits of having the product outweigh loosing it, he/she can eventually buy the product to try it out. Some of the risks overcome here include performance risks, perceived risk and psychosocial risks. Streetcar car club will have to be able to manipulate customers to make purchases (Bingley 2008). Conclusion Communication is very essential in streetcar operations and this has enabled it to expand considerably since the communication tools used are very convenient. The customer needs and requirements are the central determinant of the purchase of goods, however being able to manipulate customers' psychology can be of great impact on the business. References Bingley L. (2008). Review: Streetcar Car Rental Scheme. Business Green. Cornelissen J (2004) Corporate Communications. Theory and Practice. SAGE Fill C. (2006) Marketing Communications Contexts. Strategies and Applications. Prentice Hall Pelsmacker P, Geuens M, & Bergh J.V. (2007). Marketing Communications. A European Perspective. Prentice Hall/Financial Times Procter T. (2007). Strategy, Corporate Car sharing. Putting fewer cars on The Road. Climate Change Corporation 2009 Smedvig Capital (2009). Streetcar: Smedvig Capital appoints Sir Trevor Chinn as Chairman of Streetcar. Press releases retrieved on 2nd April 2009 from www.smedvigcapital.com and www.streetcar.co.uk Read More