Current Marketing Communications Practices of Nordstrom - Assignment Example

Strategic marketing Contents Contents 2 Current marketing communications practices of Nordstrom 3 Theoretical Principles of Integrated Marketing Communications 6 What Nordstrom has to do to achieve integration 9 Planning and implementation of Nordstrom’s future Marketing Communications campaigns 11 References 14 Current marketing communications practices of Nordstrom Nordstrom Inc. is a fashion retailer based in the United States. The company started as a retailer for shoes in the year 1901. Over the years, the company has expanded over many geographical locations by opening up its stores across 36 states in the country. Also, Nordstrom has diversified into a number of fashion related products like clothing, jewellery, accessories, cosmetics, fragrances, handbags etc. The company operates through 117 stores which are full line and 151 Nordstrom racks in giant fashion retail outlets. The company also operates with an electronic commerce wing through its official website, Nordstrom.com, through an online selling site for the company called Nordstromrack.com and also through a newly acquired private online sale site known as Hautelook. The major competitors of Nordstrom are other luxury retailers operating in the country like Lords and Taylor, Bloomingdales, Saks Fifth Avenue and Neiman Marcus. Despite a high level of competition from these companies, Nordstrom has been able to maintain a leadership position both in terms of number of stores as well as sales volume over the past few years. The success of Nordstrom can be highly accredited to the intensive and impactful integrated marketing communications strategy used by the company (Schultz and Kitchen, 2008). Nordstrom has been using a tightly controlled and value adding integrated marketing communication process since years of its operation. The target group of customers of the company has always been a diversified group of high end premium customers who have a fetish for high street and luxury fashion. As such, the marketing communication strategies used by Nordstrom have been designed by keeping in mind the sensitivity, requirements and reception level of the target segment for the business (Wells, Burnett and Moriarty, 2003). Since, the target customer group of Nordstrom is the luxury and premium segment and since the main products of the company are based on luxury fashion, Nordstrom has to clearly convey suitable marketing messages to attract and maintain a loyal base of consumers. Repeat sales are critical in a high scale fashion products business, especially when the business operates in a competitive environment (Kotler, Wong, Saunders and Armstrong, 2005). Therefore, a main focus of the marketing communication process of Nordstrom has been to ensure a high level of two way communication with the customers while highlighting the concept of “fashion” in the company. Nordstrom is an avid user of a variety of marketing communication channels and strategies. These include both traditional and innovative ways of marketing communication like online advertising, advertisements in print media, personal selling, advertising in third party websites, public relations, and personalized advertisements and so on. The most prevalent advertising process that has added value to the brand is word of mouth publicity. The generous service facilities like easy return facilities, high scale customer service and other ancillary services have made it possible for the company to receive a high scale of continuous world of mouth publicity. Nordstrom is a highly active company in social websites like Facebook, Twitter, and YouTube etc. The company has an established base of marketing freelancers and marketing personnel who regularly update posts in the social media sites like Facebook, post tweets in Twitter and upload fashion and company related videos in YouTube. The high frequency of activities in the social media channels help the company to reach out to more number of global customers. The company is a leader in customer relationships management (Schultz and Schultz, 2003). The company follows a tradition of sending thank you notes to the customers after they have shopped in the stores. These small communication strategies have went a long way in creating a positive impression of the brand on the minds of the customers and have helped in improving loyalty as well as repeat purchases by the customers. These have also helped to build a personal relationship between the store personnel and the customers who visit the stores of Nordstrom. Nordstrom is a moderate user of the direct marketing campaigns. Since, the company is a high end fashion retailer; it prefers more sophisticated ways of communication to suit the target customer groups. The customers who buy from the online store or the physical stores of Nordstrom are presented with an option to join the electronic mailing list of the company through which the customers are communicated about the sales, new stocks as well as other discounts and offers. This communication is usually provided to the registered customers before the information is provided to the general public (Knox and Bickerton, 2003). The company also sends personalized electronic mails with promotions and product suggestions based on the past purchasing behaviours and trends of the customers in the online or brick and mortar stores of the company. This helps to create more personalized service for the customers and improves brand loyalty. This is also supportive of the brand message of Nordstrom that fashion and trends would change, but the customer loyalty of the company will remain consistent over time. The company has traditionally never used the television as an advertising media. However, after the launch of its private sales store through the acquisition of Hautelook, Nordstrom has started advertising this site store through short advertisements given on the television in the prime time slots. These advertisements run 7 days a week and are targeted especially at the customer segment which consists of women belonging to the age group of 25-40 years. The company has recognized the diversity of its clientele base. As such the company regularly places advertisements in minority publications like National, Ability and Essence magazines. The marketing communications of Nordstrom have been focused on recognizing and acknowledging the diversity of the customers. Nordstrom has been named as one of the best 50 companies for Hispanics, Asians and blacks. The advertisements of Nordstrom actively feature models with disabilities and varied skin colour as a part of the efforts of the company to ensure that the communication strategies of Nordstrom directly reflect the sentiments of its customers with respect to diversity (Nordstrom Corporate Website, 2014). Theoretical Principles of Integrated Marketing Communications Integrated marketing communication is aimed at conveying the brand message to the customers through the use of different marketing communication tools and strategies. This may involve the use of both traditional as well as non-traditional modes of promotion. Integrated marketing communications is a concept that highlights all messages and communications should be successfully linked together. This platform enables a firm to outline its brand message so that it can effectively reach its customers. It is a form of brand messaging both through non-traditional as well as traditional marketing channels along with incorporating different forms of promotional techniques (Trehan and Trehan, 2009). There are certain shifts that have made companies focus on integrated marketing communications in order to market products or services to target audience. Such fundamental shifts are shift from traditional marketing to digital marketing, mass media to more specialized media, high accountability from low accountability in terms of marketing spend, and pervasive connectivity from limited connectivity. Integrated marketing communications is an approach that combines marketing and business together (Onkvisit and Shaw, 2009). The organizational culture significantly affects IMC in terms of behaviours and attitudes of employees, organizational mission and vision and effective communication taking place within the system. One of the major components of IMC is four P’s that signifies the overall characteristic and design of products. Pricing would denote the market rate of products, product would state the benefits or features, and promotion indicates the communication media so to as to spread awareness amongst consumer market and place reflects the selected distribution channel. Advertising is one of the pillars of IMC approach as through this component messages are transmitted to the end customers. There are three main divisions to advertising such as online advertising, outdoor advertising and broadcasting or mass advertising. Many firms prefer mass advertising through internet, televisions, radio, print, broadcast, etc. There are certain companies which perform outdoor advertising through billboards, taxis, stadiums, transit, rest areas, etc., and online advertising is majorly done through internet ad banners, mobile advertising, search engine and email ads. Direct marketing is also considered to be one of the most efficient components of IMC and performed through direct selling, catalogue distribution, coupons, telemarketing, shopping channels, text messages, promotional letters, etc. (Dahlen, Lange and Smith, 2010). This way of communicating message to customers enable a firm to directly link the brand identity with target audience. In the present era online or internet marketing has gained importance in context of promotional activities undertaken by a firm. The common form of internet marketing is e-commerce, search engine marketing or SEM, search engine optimization or SEO, email marketing, mobile marketing, social media and content marketing. Mobile or email marketing is usually selected by firms as it is a cost effective approach that helps to reach out to large base of customers. On the other hand social media is also considered to be a successful media for communication. It is a platform that is accessed by most of the individuals and hence proves to be effective in reaching out to target market at least cost and least time (Fill, 2009). Customer service forms another underlying principle of integrated marketing communication. It comprises of instant customer help facilities along with building healthy relationship with customers in order to retain them for long term. Customer service is also a mechanism through which positive brand image can be established in the industry. Public relations like the organization of conferences, special events, new release as well as other activities like press conferences, industry awards, publicity stunts, charity involvement and community involvement are other key tools used in integrated marketing communication. Promotional activities like giving discounts, distributing product samples and conducting contests are also methods of integrated marketing communication. Corporate philanthropy has emerged as a comparatively new and innovative approach in integrated marketing communications. Corporate philanthropy is becoming more popular as a medium of integrated marketing communication and is being taken up by national as well as international companies across the globe. This is because corporate philanthropic activities provide a number of benefits for a company. Not only these activities create a positive brand reputation but they also attract customers, reflect the philosophy on which the company runs and create goodwill for the company. An integrated marketing communication process would usually use a number of channels to ensure that the diverse aspects of marketing are weaved in a way to produce an effective and value adding marketing campaign. Various changing factors in the external and internal business situations create the need for a flexible integrated marketing communication mix. The external trends like growth of mobile phone usage and internet usage, popularity of electronic commerce trends, changing consumer behaviours and reception levels have created new needs and mediums of marketing communication. The factor of technology has been an extremely influential factor in marketing communications because it has assumed a critical role both in the marketing processes of companies as well as in the purchasing processes of customers. The integrated marketing communications are aimed at enhancing brand recognition levels and growing the sales by leveraging on the different available communication channels for a business. The use of a multichannel promotional strategy often creates greater impact than the use of a single promotional strategy. What Nordstrom has to do to achieve integration The overall marketing communication strategies of Nordstrom are focused on promoting and conveying the message of the brand to its customers in an effective way. The main message of the company lies in the fact that the company aims to provide high quality products and diversified and consistent services to the customers in the background of changing fashion trends (Duncan, 2005). Nordstrom has taken strong steps to establish itself in the social media. The company is present in social media sites and also advertises through traditional advertising mediums like print media, television etc. Also, Nordstrom focuses on two main aspects which are fashion and customer services in all its marketing communication methods. Right from the inception of the company, Nordstrom has been running on the philosophy of exceptional quality, value, selection and service for the customers (Cook, 2004). The company can further focus on investing heavily in the electronic commerce segment of the business. Since, the electronic commerce wing of Nordstrom including Nordstrom .com is a comparatively new business unit, therefore the company should concentrate on making the communications of the online stores more intensive. Fashion is a highly consumer oriented and engaging category of business (Webster, Malter and Ganesan, 2005). Therefore, the company should try to introduce more dynamism in its integrated communication strategies. New communication strategies should be introduced in Nordstrom in a way to ensure integration with the existing marketing communication strategies and an adequate consideration given to the brand message that it wants to convey (Dewhirst and Davis, 2005). The internet has emerged as the fastest growing channel for sales and promotion for businesses, especially retailers. Therefore, Nordstrom should effectively concentrate on online or internet marketing strategies and mediums to increase sales, profitability, and customer base as well as to ensure sustainability and competitive edge. The new strategies like starting up blogging activities and enabling the customers to share their purchases from the website directly in the social media sites should be introduced after evaluating whether these can be easily streamlined with the existing brand image and marketing communication strategies of Nordstrom (Holm, 2006). To increase the visibility of the online site and the newly acquired site Hautelook, Nordstrom has to continue investing in online media promotions. Other than that, Nordstrom can engage in sending direct electronic mails to the existing customers as well as potential customers to increase the awareness regarding the online shopping sites of Nordstrom among the local as well as global customer communities. Apart from electronic commerce and electronic mail marketing Nordstrom should also introduce advertising through the use of Search Engine optimization (SEO) to ensure more frequency of visibility of the electronic commerce sites in the different third party websites. Nordstrom should also come to the forefront in social media sites and integrate all the activities across different online mediums like websites and channels to ensure the conveyance of a recognizable, acceptable and identifiable message to the diversified customer groups. The integrated marketing communication strategies of Nordstrom already include effective strategies like word of mouth publicity, social media advertising, print media advertising and a controlled level of direct marketing and personalized advertising. The company should also introduce new strategies like extensive blogging, conducting Public Relations activities, enabling direct communication with the customers and mobile marketing. The growth in the use of smart phones by all segments of people is a factor that should be taken into consideration by Nordstrom as an opportunity to promote the brand through this commonly used medium. The company can ensure direct communication with its customers through the provision of online chatting systems and live guiding systems in the electronic commerce sites of Nordstrom. The use of a number of synchronized medium of communication will help the company to offset the limitations that are associated with the use of each medium and will also ensure that a planned efficacy is present in the marketing communication process of the company. Engaging in philanthropic activities would act as a silent but powerful promotional strategy for Nordstrom. This would not only add to the brand value but also enhance the brand reputation and brand perception in the minds of the global customer groups (Alvarez, Raeside and Jones, 2006). Also, the company can convey the philosophy of the business more effectively through engaging and investing in the corporate social responsibility activities. Planning and implementation of Nordstrom’s future Marketing Communications campaigns All the mediums and channels of integrated marketing communications have their own benefits and limitations (Beverland and Luxton, 2005). Nordstrom has to carefully evaluate the benefits and limitations of each of the marketing communication strategies that it would introduce in the company. Also, it should ensure that all the marketing communication strategies are aimed at promoting the original brand message. The brand message of Nordstrom is reflective of the philosophy of the company which is to deliver consistent service and high quality products to the customers. A multichannel strategy for communication would ensure that the company is able to achieve a number of advantages and offset many drawbacks that may be associated with each of the channels and strategies of promotion (Novelli, 2002). An integrated marketing communication plan should include the following steps (Aaker, 2004): 1. Analysis of the situation, external environment and internal environment. Nordstrom is in a favourable business position. The company currently has a highly positive future outlook. There are scopes of introducing new promotional strategies in line with the strategic marketing process of the company. 2. Considering the financial, technological and human resources. In the process of implementation of new communication strategies and integration of all the communication strategies, Nordstrom should take into consideration the availability for resources and capabilities like technological resources, financial resources and human resources that would be necessary to implement the whole integrated marketing communications system in the practical scenario (Hulberg, 2006). The company is financially strong and is known to invest heavily in promoting the business. It should also get access to latest technologies in order to implement the new communication and promotional strategies like online or internet marketing strategies. Thus, the company is highly equipped in terms of all categories of resources and capabilities. So it can use these available resources to devise suitable communication strategies and combine these strategies for more effective results. 3. Identifying and defining the objectives of the marketing communication process. The main objective of Nordstrom is to strengthen the electronic commerce business wing, continue communicating the brand philosophy and ensure repeat purchases through the establishment of a rewarding relationship with the customers. Thus, Nordstrom can implement the new communication strategies to support the existing communication tools and strategies so as to create a stronger communication mode for conveying the brand message to a wider group of customers. 4. Evaluating the performance of the overall integrated marketing communication process. The marketing communication process can be evaluated as one whole integrated approach. The key indicators that would help to measure the performance of the integrated marketing communication process are sales volumes, customer base, profit margins, and trends of sales, awareness of the brand, sustainability and competitive advantage creation. References Aaker, D. A. 2004. Leveraging the corporate brand. California Management Review. Vol. 46 (3). Alvarez, J. G., Raeside, R. & Jones, W. B. 2006. The importance of analysis and planning in customer relationship marketing: verification of the need for customer intelligence and modelling. Database Marketing and Customer Strategy Management. Vol. 13 (3). Beverland, M. & Luxton, S. 2005. Managing integrated marketing communication (IMC) through strategic decoupling. Journal of Advertising. Vol. 34 (4). Cook, W. A. 2004. Editorial: IMC’s fuzzy picture: breakthrough or breakdown? Journal of Advertising Research. Vol. 44 (1). Dahlen, M., Lange, F., and Smith, T. 2010. Marketing Communications: A Brand Narrative Approach. 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