Marketing Communications Issues - Assignment Example

Marketing Communications Section A Question 1A Using appropriate criteria, compare and contrast the effectiveness of the following two promotional tools: public relations and direct marketing. Nonprofits can use public relations to promote events, call people to actions such as in the events of emergency at a lower cost and more effectively. On the other hand, direct marketing, such as direct emailing, is more easy and convenient to use as the recipients may be requested to pass the emails further along to other people who find it valuable (Cacija 2013). Public relations can ensure that the reputation of the non-profit organisation is promoted, while direct advertising promotes the organisation to the audience, serves to establish a dialogue with the audience, and ultimately provides distinct information regarding the product. Direct marketing targets the existing and potential customers while PR is concerned with building a positive relationship with anyone interested in the organisation. The goal of direct marketing is to reach the audience and call on them to do some form of sales-focused actions, while public relations is concerned with selling the organisation's reputation. While direct marketing is concerned with bringing revenues, PR is concerned with building a positive reputation. However, direct advertising and public relations share certain common features. They both make use of the same media, such as television. Both also require market research to identify the potential audience. They also require planning. Question 1B Explain the concept of source credibility and show how the organisation’s donors and other stakeholders might regard messages delivered through public relations as more credible than those delivered through advertising. Source credibility refers to the quality of the perceived trustworthiness or reliability of the source of communication and how it affects the persuasiveness nature of the communication (Eisend 2006). The organisation’s donors would consider the messages the organisation delivers through public relations to be more reliable than those delivered using advertising tools, as public relations has a powerful effect as the audience are likely to consider the message as intended to achieve some good rather than generate revenues for the organisation. When the organisation creates an interesting message that interests the public, that message is likely to be published by many media organizations, hence create a more trusting impact than advertising. The audience is also likely to be more impressed with public relations messages than advertising as bias in public relations efforts is often unlikely, compared to advertising, which tends to be biased. Indeed, it is considered that direct advertising serves to teach the audience consumption. Rather than just present the appealing feature of the organisation that the audience should engage in order to promote its awareness like direct marketing does, public relations further strengthens the organisation’s image and how it should be perceived by the public. Therefore, public relations can serve to influence the attitude and opinion of a section of the audience who have not been satisfied with advertisements. Section B Question One Describe the stages of the consumer decision-making process. What factors in your opinion, relate to the evaluation of alternatives stage? Relate this question to a recent purchase you have made. Step 1 – Need Need is a critical factor that triggers a consumer’s buying decision. For instance, I recently bought a laptop after identifying my need as engaging more in research online. Step 2 – Information Gathering The second stage involves collecting information regarding the product. For instance, before buying a laptop, I asked my friends and classmates about the latest laptops, which are also cost-friendly. I also searched online for commercial advertisements of available laptops and their points of sale. I also considered my individual experiences with different brands of laptop. Step 3 – Alternative Evaluation The next stage involves evaluating the varied alternatives accessible in the market by examining the prices, quality, and taste. Once I had gathered relevant information, I tried to select HP branded laptop, based on based on my need for a pocket-friendly laptop. The factors to be considered at this stage include the objective attributes of the product, such as its functionality and physical features and the subjective attributes, such as the perceived value of the brand others consumer and the reputation of the brand. Step 4 - Purchase decision. The fourth stage involved ultimately making the purchase decision. Once I evaluated the available laptops and selected HP branded laptop, I proceeded to buy the laptop. Step 5 – Post-purchase evaluation After buying the HP laptop, I evaluated the sufficiency of the laptop and its capability to satisfy my initial needs in order to establish whether the product is indeed useful to me. The last stage involves customer’s analysis of the product to establish its usefulness. Question Two Marketing communications stimulates the desire of individuals to aspire to a superior lifestyle and thus to have access to a wider range of goods and services. Present an argument against the claim that advertising creates unnecessary needs and wants. Marketing communications tends to stimulate the consumers’ desires to aspire for better lifestyle and therefore to gain access to a broader variety of goods and services. Therefore, it is not justified to argue that advertising creates unnecessary needs and wants. Advertising enables the public to be aware of products they did not know exists, which would be useful for their needs hence creating necessary needs and wants. This suggests that consumers would be satisfied in knowing that there needs can be met when they access certain products. It also means that materials causes people to use useful products (Egan 2007). As a result, people get to improve their lives. Advertising also transforms the world into a situation where consumers' choices are not restricted by making them aware of the alternative products, including their features and prices. Additionally, advertising is essentially an information service and gets to inform the consumer of exactly what she wants and where she would get what she wants. Hence, advertising allows consumers to enjoy new amenities that make their lives more comfortable and easier. Question Three Explain word-of-mouth communication. Show the ways in which it might be used in either an on-line or off-line based campaign Word of mouth refers to a process of where one person passes information to another through orally or by verbal means. Within the context of marketing, it is concerned with the transmission of information between an individual who is not a commercial community, or who does not get rewarded for the efforts, and another who receives information regarding a product or service. On the other hand, when word of mouth communication is mediated by electronic media, the resultant electronic word of mouth communication describes a statement shared by consumers through the internet, such as whether through the social media networks, instant messages, and websites. A case in point is where a social media user who has bought the latest make of a Samsung phone posts the features of his new phone on Facebook, and in turn his friends share the post to other friends. In turn, his friends also consider buying the phone. In an offline word of mouth scenario, an individual who has bought the latest make of a Samsung tell his friends of the features of his new phone to other friends by word of mouth, leading his friends to also consider buying the phone. Question Four Identify the elements of the SOSTAC +3M’s planning process framework and explain, using appropriate examples, the function that each of the components contributes. The SOSTAC framework, which was originally initiated by PR Smith, is a model for marketing that can be used by large corporations and small to medium-sized businesses. The model is focused on 6 significant elements of businesses, where each element answers an inquiry, which provides a starting point for marketing. Essentially, SOSTAC is short form of the six elements: situation analysis, objectives, strategy, tactics, action, and control. Situation analysis inquires into the present situation of the business is. Objectives assist in making an overview of the business goals. Strategy assists in provides a “clearer picture” plan that assist in attaining the goals Tactics interprets the “big picture” strategy into a detailed plan Action markets the assigning of responsibility and setting up deadlines to perform certain tasks Control provides a convenient means to tracking the progress of the plan The 3m's model can then be added to SOSTAC. 3m’s include Men, Money and Minutes. “Men” implies that manpower and their expertise needed in implement the SOSTAC framework. “Money” refers to the budget to carry out the plan, while “minutes” mean the schedules for carrying out the plan. Question Five Define integrated marketing communications (IMC) and outline the benefits for organisations that choose to adopt this approach. Integrated Marketing Communications consists of a planning process intended to make sure that all aspects of a product or service are made relevant to a particular market segment consistently over time using different marketing media tools. It is an approach for attaining the marketing campaign objectives by coordinating the application of diverse promotional methods designed for reinforcing each other. The Integrated Marketing Communications consists is important for a firm in marketing, as it forces businesses to examine the entire marketing picture, re-align the communications and perceive features of the business or product in the same way that consumers perceive them. It also ensures consistency of information flow from various sources. Use of Integrated Marketing Communications consist enables businesses to avoid duplicating of messages, and enables them to take advantage of the synergy among promotional tools, and lastly create more effective marketing programs and maximize return on investment. For instance, when each communication from each media outlet is linked, a business is able to create synergy, as well as create a greater impact with their marketing messages. Since a variety of media tools are used, this would have a stronger marketing impact as the weakness of one marketing tool is compensated for by another tool. Question Six ‘A brand is merely a form of identification, a badge of origin.’ Critically evaluate this statement. A brand is essentially a form of identification or a badge of origin as it serves to distinguish goods or services a business deals in. It therefore acts as a symbol, mark, or sign that identifies goods or service within the marketplace and in turn indicates the source or origin of a product as having been produced by a certain company. In this way, the products or services can be identified or associated with a certain company that has manufactured the goods or provides the services. It is, therefore, clear that the true concept of a brand is showing the sources of origin of certain products, and demotes that the goods have been sold under the auspices of the owner of the trade mark linked to the brand, who may assume responsibility for the quality of the goods. For these reasons therefore, the real objective of a brand is indicating the origin of goods. Indeed, a consumer’s inquiry regarding the origin of a product would often be answered when he identifies the manufacturer of the goods. Therefore, a brand provides a means to identify a product, distinguish it from substitute products, and trace it to its source or origin (Clarke & Kapnoullas 2001). Part II Discuss the advantages and disadvantages of both new media and traditional broadcast media in the context of the soft drinks market. The traditional media can reach a wide audience with persuasive messages that influence the society and the general public opinion about soft drinks. The traditional media can also be used to inform and educate the public about benefits of taking soft drinks and to inform the public about the new features of the company’s soft drinks. However, such distinctive features of the traditional broadcast media appear to be greatly challenged by new media that seems to have changed the participatory habits of the audience in marketing. A major disadvantage of traditional broadcast media is that it reaches a wide range of audience, which brings up problem of precision, where it becomes difficult to customise a message to a specific audience. But as new media aims to target a greater range of people, the information that may not be found through traditional media. On the other hand, the new media brings the advantage of interaction with the consumers, where the audience can comment as well as comment on issues the soft drinks company raises. For instance, the company can get immediate feedback regarding its products on its website and the social media through customer comments. An Additional side is that it allows a marketing message to be rapidly passed through the social media. A major disadvantage is that since new media allows the audience an ability to select whether to view their ads, many of the targeted audiences may not be reached. New media also depends on pro-activeness of the customer without which the message would die. Question 1B Make recommendations concerning the type of media that the company might adopt when it wishes to launch a new brand. Justify your decisions. . The company should use the new media to launch a new brand. This is because new media has a higher conversation ratio. For instance, since tracking and adjusting the social media is possible, more people are able to respond to the marketing message. It also allows the company to realise repeat sales by building online communities. As social media has a capacity to build communities around a brand, it can increase repeat sales and a loyal customer base. Before the launch, the company can also use the social media to build a hype on the society by leaking certain string features of the new soft drink brand. The company should, therefore, use the social media, as the type of new media for launching the product. When selecting the media that can support product launch, the target market has to be considered. As the company would be targeting the Millenials generation, who are the leading consumers of soft drinks, the social media should be used was many Millenials are networked on social media platforms, such as Twitter and Facebook. Social media also ensures emotional connection with the customers. SECTION B Question One Explain why consumers are likely to be less cynical about sponsorship than advertising and discuss the potential problems associated with sponsorship that may prevent major organisational users from achieving an appropriate return on their investment. Sponsorship can be an effective way to raise brand awareness and increase sales. Consumers are likely to be less cynical on sponsorship compared to advertising as it associates a brand with a celebrity who appeals to the consumers as well as has a positive reputation. Therefore, the brand is likely to achieve greater visibility and attain easy acceptability among the fans of the celebrity. Despite this, sponsorship has several problems that may hinder an organisation from attaining return on investments. For instance, it runs the risk of negative image association, particularly when the celebrity is involved in some form of scandal. In such a situation, a sponsorship deal may send negative messages, which would in turn be associated with a product. When a sponsor engages in doping and the scandalous behaviour becomes the subject of debate globally, a product may not be treated favourably by a moralist section o the audience. The possibility of brand sponsors scattering in one location may injure a product. For instance, in high profile events such as the World Cup, some sponsors may be made less viable by other prominent sponsors who steal the show during such events. This may turn of f the audience in turn ensuring that the brand does not stand out. Question Two Explain the role of the decision-making unit. Describe the different ways in which the various members of the unit should be targeted by marketing communications. The decision Making Unit (DMU) refers to team or group of people who take part in a buyer decision process. It is concerned with organisational buying decisions. Several players make up the DMU: initiators, the gatekeepers, the buyers, the deciders, the users and the influencers. The influencers consist of individuals with a persuasive role in respect to deciders. In general, they are specialists who make suggested depending on their experiences in using certain products and services. The marketing communications can include their experiences in advertising to inform other target consumers of benefits of a product. The initiators include the players who appreciate a need to get satisfied. They may be targeted by marketing messages that show how products can satisfy their needs. The gatekeepers are people who are upbeat about searching for information and making recommendations for other decision-makers. The buyers are the individuals within an organisation who have the duty of sourcing and negotiation. The marketing messages may provide them with criteria they can use to evaluate products or suppliers. The deciders make the final decision. They should be provided with information from the buyers, gatekeepers, and initiators. The users are those who put the products bought into operation. They take part in post-purchase evaluation of the products bought. Question Three For a not-for-profit organisation of your choice, describe appropriate methods of marketing communications and suggest ways in which these tactics could be integrated. You should provide justification for your recommendations. Integrated marketing communications refers to an approach that organizations can use to coordinate their marketing using multiple communication channels. A non-profit organisation like the World Vision can use integrated marketing communications to create cost-effective campaigns. It may use marketing tools like webinars, blogs, radio, search engine optimization, radio, magazines, and televisions as the methods for marketing communication. As they would allow the organisation to effectively and clearly communicate its story and messages across cost-effectively. They are also capable of immersing the audience in communications and simultaneously consolidating the organisation’s image, developing a dialogue, and nurturing its relationship with the target audience. The organisation should as well use traditional elements like public relations. Public relations can ensure that the reputation of the non-profit organisation is promoted. It also promotes a positive message about the organisation’s role in the society to the audience. PR is particularly concerned with building positive relationship with the audience who may be interested in the organisation. The marketing tools and public relations would, therefore, enable World Vision to consolidate its image as reputable child-focused organisation while at the same time developing a dialogue, and nurturing its relationship with the target audience. Question Four Compare and contrast the effectiveness of advertising using the following TWO promotional tools: direct marketing and personal selling. Direct marketing and personal selling consists of two methods of making sales that appear to similar as they both require that the seller makes contact with the end-consumer. However, personal selling refers to technique that a seller uses to develop a relationship with the customers by making use of negotiation and communication skills. On the other hand direct marketing is a type of advertising where a business eliminates the middlemen to communicate directly with the consumers through the use of direct mail, email, direct mail, or text messaging. Personal selling and direct marketing are different in many ways. Personal selling is more concerned with products and services that tend to be naturally complex as well as which may not be sold off on their own. Examples include banking services and financial products. Direct marketing refers to a selling method that makes direct contact with the target customers. Additionally, direct marketing tend to be forceful or aggressive than personal selling, which only attempts to provide the target customer with vital information at first. Personal selling also emphasises on building lasting relationship with the target customers while direct marketing speaks of the benefits of the products being sold. Question Five Using communications models with which you are familiar, explain how the process of communication takes place and the extent to which ‘noise’ can influence the overall function. Shannon's (1948) model of the communication process is provides a useful model of the communication process. It relies on structuralist reduction of communication to suggest basic elements that explain how communication occurs as well as why communication may fail (Foulger 2004). It breaks the processes of communication down into eight discrete components: information source, message, transmitter, signal, carrier, noise, receiver, and destination. In respect to noise, the model argues that noise consists of secondary signals that hinder, make unclear or obscure the signals transmitted. As the model focuses on telephone transmission, carriers, and reception, it is clear that noise is limited to the noise that obscures or hinders some aspects of the signal in the channel. Hence, limited signal would ensure that the message is transmitted clearly to the recipient without the likelihood of obliteration. Noise makes it difficult to decode the message. Essentially, it refers to the physical and psychological forces capable of disrupting communication. Physical noise, including a noisy environment can hamper communication during the communication process. On the other hand, psychological noise refers to the mechanisms win a person that limit the sender’s capacity to relay and the receiver’s capacity to receive and interpret the message (Foulger 2004). Question Six Depending on the nature of the product or service, consumers follow a series of distinct steps, which form the decision-making process. Describe the five stages in the process and explain why post-purchase satisfaction is an important consideration in marketing communications. Step 1 – Need Need is a critical factor that triggers a consumer’s buying decision. Step 2 – Information Gathering The second stage involves collecting information regarding the product. It may involve asking friends for information on a certain product, or searching online for information. Step 3 – Alternative Evaluation This stage involves evaluating the varied alternative products accessible in the market by examining the prices, quality, and taste. The factors to be considered at this stage include the objective attributes of the product, such as its functionality and physical features and the subjective attributes, such as the perceived value of the brand others consumer and the reputation of the brand. Step 4 - Purchase decision. The fourth stage involved ultimately making the purchase decision. Step 5 – Post-purchase evaluation This stage involves evaluating the useful of the product bought and its capability to satisfy the buyer’s initial needs in order to establish whether the product is indeed useful to me. The Post-purchase evaluation stage is significant as it allows the buyer to know whether he had made the right choice regarding buying the product, and as a result feel satisfied with the product if it meets his expectations or disappointed if the product fails to meet his expectations. The opinion will therefore influence his future decision-making and buying behaviour. This stage also determines whether buyer will minimize the stages of information search and alternative evaluation while seeking to make his next purchase. Reference List Cacija, L 2013, "Fundraising in the context of non-profit strategic marketing: Toward a conceptual model," Management, vol. 18 no 1, pp. 59-78 Clarke, B & Kapnoullas, S 2001, The new forms of registrable marks: market uptake in the first five year, viewed 5 May 2016, Egan, J 2007, Marketing Communication, Cengage Learning, New York Eisend, M 2006, “Source Credibility Dimensions in Marketing Communication – A Generalized Solution,” Journal of Empirical Generalisations in Marketing, pp.1-13 Foulger, D 2004, Models of the Communication Process, viewed 5 May 2016, Read More