Perfumes Guyana can create competitive advantage, boost sales and profit while saving money and time with the implementation of Integrated Marketing Communications within its operation. This requires tremendous efforts, hence report 1 focuses on the challenges and factors necessary for achieving successful IMC.
Setting effective objectives can guide team members and organization through the routes to success. Report 2 Part (A) focuses on the benefits of successfully designed communication objectives and consequences should there be no guidelines to follow.
Marketers are challenged to grab and hold the attention of their target audience. Different tactics are experimented to engage and interact with customers. Dynamic interactive media aim at delivery of rich media services with flexible communication capabilities allowing the enhancement of voice communications with high quality images and video, access to information and interactive multimedia services. Report 2 Part B evaluates the use on Dynamic Interactive media within Perfumes Guyana.
Every customer is different, targeting specific market requires segmentation. Companies segment their markets and tailor marketing materials to better serve the target audience by creating smaller groups with relevant messages leading them to buy something. Report 3 Part A highlights the principles of customer segmentation and the selection process involved.
Data is important, if strategically analyzed can impact positively when used as a basis for decision formation. Report 3 Part B assessed the tools and techniques used to provide quantitative data in measuring Integrated Marketing Communication campaigns in Perfumes Guyana.
Outsourcing in an effective strategy utilized by companies who wants to cut cost and save time. Perfumes Guyana outsource their marketing activities to a third party agency ActionCOACH Guyana. This provides businesses with a competitive advantage over rivals. Report 4 examines third party agencies in depth as it applies to Perfumes Guyana. (275 WORDS)
CHAPTER 1-INTEGRATED MARKETING COMMUNICATION
Marketing communications is recognized as the promotional element of the Marketing mix strategy. For Perfumes Guyana to achieve competitive advantage in the luxury sector, the marketing department can incorporate Integrated Marketing Communication strategies to build brand awareness while ensuring the marketing budget is being invested effectively hence increasing market share. As such, this report analyses the challenges the company endures while executing strategic marketing campaigns and the necessary conditions needed for successful results.
WHAT IS IMC?
Integrated Marketing Communication (IMC) defined by (Association, n.d.) As “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” The principles for successful IMC in Perfumes Guyana includes a unique brand message “Authentic Designer Fragrances at competitive prices”, a brand positioning and a tactical implementation of a variety of media channels. The MCM includes channel mutually supportive such as outdoor sales, word of mouth, promotional activities, digital, personal selling and professional attire which enhances marketing effectiveness and proves cost efficient.
Facebook is primarily used for customer interaction, due to the unavailability of internet connection in certain regions within the local landscape they are unable to target a wide geographic area. IMC requires determination it deliver fruitful results by utilizing more than one medium to communicate the brand. (Luxton, 2014) Explains that IMC capability has a significant effect on the campaign’s effectiveness and an indirect effect on the company’s market and financial performance. “IMC strategies start from identifying the goals, analysing the target audience, conduct a SWOT analysis to gain insight, identify the competitive edge and creatively communicate the idea maintaining the original message (Kareh, 2017). The process of planning a successful campaign can be seen in Figure 1.
Figure 1 (Rosati, 2018)
ADVANTAGES OF INTEGRATED MARKETING COMMUNICATION
Effective Integrated Marketing Communication allows a company to communicate their brand’s story creating brand recognition, customer loyalty by creating seamless purchasing experience, reinforcing the message, increase sales resulting in higher profits and creating competitive advantage among competitor and guides customer through the various stages of the buying process as explained by (Learning, n.d.). Where the ethical aspects are involved IMC marketing messages should be legal, truthful, honest and decent with consistency (Stuart, 2018).
CHALLENGES ASSOCIATED IN ACHIEVEING INTEGRATED MARKETING COMMUINCATION
Being flawed with low risk decision makers within Perfumes Guyana. The marketing department at times propose short term marketing campaign but management act with little or no urgency and are hesitant to proceed considering the possibility of a positive feedback from the audience. This creates an atmosphere for demotivation in staff since no effort is applied to their thoughts.
Insufficient marketing budget is a major challenge since this guarantees little or no execution of marketing activities. The reality of being small, marketing can be a great risk because every dollar counts and mistakes can negatively impact the bottom line. Currently, sales is at its minimum due political instability and inflation as an economical factor.
Another challenge in achieving Integrated Marketing Communication is poor marketing skill sets within the work force especially the marketing department. There is an increase in brand competition locally with the driving force of technology and the presence of e-commerce. The staff need to be creative and develop impactful brand campaign and possess the ability to assess how to capture customers through new and emerging media channels.
Contributing to the challenges include lack of communication within departments. The purchasing department has a tendency failing to inform sales and marketing department of new product availability. This result in the products not being introduce to the market. Also, when promotions are on specific items the sales team are not aware. If properly planned and executed, personal selling could have occurred contributing towards the IMC goal.
Difficulty arise in trusting the brand mainly because the company is currently in the phase of building awareness and establishing a presence in the market. Taking into consideration Facebook is used to channel the message along with the use of flyers occasionally.
CONDITIONS NECESSARY FOR SUCCESS
For successful Integrated Marketing Communication, management needs to effectively reach and influence the target market and creatively employ multiple forms of communications from data gathered through extensive market research. These marketing communications activities must be integrated to deliver a consistent message in order to achieve strategic positioning using different tools to suit different geographic (J.Kitchen, 2010). Together with the execution of a communication audit, management can be able to view profiles with customer’s interaction that they may have with the company and all its products and services (Kotler, 2012). First and foremost, identify objective (s) either to inform public of existence or introduce a new product.
Ability to be agile, flexible and respond to changes can contribute towards successful marketing goals Due to constant changes operating in an unpredictable and turbulent environment where the traditional way of planning does not seem to work anymore. New approaches to the external and internal conditions need to develop in order to cope with the environmental turbulences (Hedlof, 2000).
Cross functional collaborative approach where staff and departments liaise with each other allowing an easier flow of communication. This require employee’s engagement, commitment and creativity, amongst others. Achieving a radical transformation, creating a working environment suited to the Age of Ideas and freeing up the energies of the organization’s members (Gifford, 2015) can be guaranteed. All staff need to understand the importance of a consistent message by carefully planned internal communications.
Implementing a marketing budget by allocating sufficient financial resources for marketing campaign and human investment via training and workshops to strengthen the firm’s ability to design and execute campaigns. (941 WORDS)
CHAPTER 2 PART A- COMMUNICATION OBJECTIVES
When customers are convinced that the brand has benefits to satisfy their wants and needs through consistent reinforcement, communication objectives have succeed (Harrison, n.d.). Setting objective proves success in any business and as such this report further analyses the importance of setting communication objectives for Integrated Marketing Communication campaigns in Perfumes Guyana.
After strategically positioning a product, it is imperative for management to determine the marketing communications objectives to formulate campaigns. “Communication objectives are goals for messages or programs of communication. They are used to identify your audience, craft messages and evaluate results” (Spacey, 2017). According to (Mulder, 2010) Peter Drucker developed a SMART goal method stating that objectives should be Specific, Measurable, Achievable, Result oriented and Time bound. This creates verifiable trajectories towards a certain objective, with clear milestones and an estimation of the goal’s attainability (Haughey, 2014).
The fundamental elements of effective communications comprises of a macro model as seen in Fig. 1.1 and a micro model seen in Fig 1.2 (Kotler, 2012).
Figure 2 (Kotler, 2012)
Figure 3 (Kotler, 2012)
To use integrated marketing communication (IMC) effectively in marketing campaigns several planning steps are routed to outline precisely, future goal accomplishments. Firstly, purpose and objective requires formulation, setting SMART goals, defining the message, select appropriate channels, determine tools required, time and how much. At this point campaign can be executed and measure results.
Being able to assess the market, setting objectives helps to prove how effective it is by measuring the results. A main objective is to increase sales by 10% during the 1st half of 2018, this guides employees in a sense that they know what they are working towards creating a dedicated and motivated work force.
Objectives provides a clearer focus on intentions and desires management wants to achieve. This energizes and pushes team to succeed allowing them to plan its course of action, implement and devise strategies and tactics necessary to achieve the desired outcome. Within the objective framework, staff are able to better prioritize their task. Taking actions and working diligently provides success.
Setting objectives helps in performance evaluation where staff are assigned with specific targets and responsibilities. Utilizing benchmarking to refer to when reviewing their performance. Collectively, objectives can be compared with actual performance, adjusting processes and behaviors as required.
According to Porters Five Forces theory, existing rivals (Kotler, 2012) compete strongly with similar products. High market presence is important, objectives highlights what Perfumes Guyana wants to achieve, making the selection less difficult when selecting appropriate channels. As explained by (Stuart, 2018) Malcolm Mc Donald’s four phase process includes goal setting being the 1st phase in the process. Setting objectives is vital in providing structure and clarity of expectation from staff and provide the link between the purpose of the job role and the individual’s efforts, also form the basis from which an individual contribution will be assessed.
Objectives gives guidance and direction when making difficult decisions. Unsure how to proceed in a variety of instances, referring to the objectives can provide the safest route. (503 words)
CHAPTER 2 PART B- DYNAMIC INETRACTIVE MEDIA
The rapidly increasing growth of interactive media specifically over the Internet has demanded intense market research to monitor trends and behavior. Dynamic interactive media is impacting the Perfumes Guyana operation, hence this report seeks to explore the uses of various media and over effects.
DEFINITION OF INTERACTIVE MEDIA
Boring and not captivating a flyer can be. Static content as it relates to newspaper and other one way communication channels where the same content is repeated and may not attract the desired outcome (Sedegah, 2016). This fast paced world revolves with innovation and creation. As described by (England, 2002) “interactive media is the integration of digital media including combinations of electronic text, graphics, moving images, and sound, into a structured digital computerized environment that allows people to interact with the data for appropriate purposes”. Dynamic interactive media allows the use of technology to make Perfumes Guyana agile enough responding to changes in customer’s interest and trends. Incorporating dynamic interactive media can increase main objective of building brand awareness.
Dynamic interactive media includes content platform, blogs, social media, quiz, infographics, galleries and live videos. These method allows for a two way communication where the contents are personalized in such a way that it appeals to customer which increases their interaction with the company. Examples of dynamic media channels can be seen in Fig 4 .
Figure 4 (Singh, 2015)
METHODS OF DYNAMIC INTERACTIVE MEDIA
Perfumes Guyana keep customers interactive via Facebook, live videos, instant chats and recently Instagram. These media support campaigns allowing the marketing department to monitor interactions while keeping customer significantly engaged. Daily post are made on their Facebook page on products offered, competitive pricing, latest deals, interesting tips and new arrivals with immediate response through chats. Frequent updates on relevant and personalized content increases conversion rates, loyalty and search visibility where google and other search engines respond positively to fresh, dynamic content, especially content that is shared and subscribed to. On the contrary, marketing specialist and experts are required to produce high quality post and monitor effectiveness of channels used. This involves effort, time and can significantly add to the marketing budget.
Live streaming on Facebook are performed daily. An interactive segment called “Fragrance of the day”. Using the AIDA format, Attention, Interest, Desire and Action (Lumen, n.d.) live videos and post captures a wider audience. Unable to afford the multi-million dollar ad budgets but create effective and memorable campaigns leveraging different media for more specific targeting, Medias including Television and radio were recently used in campaigns where employees appeared live and heard through radio. Having a presence before the scene and a long-running campaign brand recognition soared from 10% to 45%. This influenced the bottom line drastically with increased sales, increased response rate and a larger customer data base. Facebook posts are relatively inexpensive to set up and generates substantial number of followers even brand advocates. However, it can also prove to be potentially dangerous with risk of suffering from negative comments which can tarnish the reputation. (499 WORDS)
CHAPTER 3 PART A- CUSTOMER SEGMENTATION
Maximum interaction from target audience blooms from strategic market segmentation by understanding the attributes and characteristics through market research. As such, this report seeks to identify the principles of customer segmentation and how customers are targeted.
WHAT IS MARKET SEGMENTATION?
(Carthy, 1993) Defines market segmentation as a 2 step process of naming broad product-markets and segmenting these in order to develop suitable methods of communicating. Breakthrough opportunities existed when a niche market was identified within the luxury sector. Marketing-oriented managers dissected specific target market and tailored suitable marketing mix channels to capture untampered opportunities by matching that with the corporate objectives.
PRINCIPLES OF CUSTOMER SEGMENTATION
Consumers are classified in groups accordingly, enabling marketing team to utilize marketing budget efficiently increasing conversion rate by converting prospects into customers. Market segmentation is divided into four primary group demographic, geographic, psychographic and behavioral segmentation. Each segmentation are universally applicable conveying their own unique set of benefits, but incorporating them jointly can create maximum impact (Bell, n.d.).
The development of the market segmentation has to be evaluated against the criterion, a check point in the overall segmentation, targeting and positioning process (STP model). This ensures validity and usable for the firm’s purpose as seen in Fig.5.
Figure 5 (Lambert, 2015)
Perfumes Guyana categorized its audience according to demographics based on characteristics such as age range, gender and income for B2C markets and B2B markets focus on firmographics which categorize the company size and industry. As a distributor, garnering prospective clients by industry deemed successful since direct marketing gained trust and converted beauty shops, supermarkets and salons into customers. Using multiple demographic criteria while segmenting targets seemed easy to implement in B2C market, they choose to market to a demographic consisting of working professionals and both male and female aged 25-55 years old .The potential of combining different segmentation drove sales while substantially maximized value for every marketing dollar spent.
Providing luxury products through unique experience provided in their fragrance showroom. It is a mental concept that influence consumer’s perceived value determined by personal and interpersonal motivations and beliefs (Teimourpour, 2013). These products are targeted to consumers with expressions for fashion, quality and class. Seemingly though, luxury products fulfil consumer psychological needs. Psychographic segmentation divides the market on principles such as lifestyle, values, social class, and personality (Kotler, 2012). Dedicating time to study the target audience by clearly defining the ideal buyer persona and how easily accessible they are. Budget conscious individuals are the main targets, these people value a good deal and tend to be smart shoppers. Tactically creating ads appealing to their intrinsic budget-savvy personality using phrases such as “Unbeatable Prices” and “Buy one, get the other at 50% off)” and “Coupons” echoes to the audience they are trying to reach.
Effective programs are designed for attracting and serving different segments. Segregating consumers according to usage, loyalties, occasions, liking, awareness and purchase patterns relates to behavioral segmentation. Example, implementing active campaigns on special packages targeting shoppers during graduations, holidays and special occasions.
Geographic segmentation was implemented to target consumers within close proximity to the outlet. Television channels accessible to the target audience within parameters of the business were used which avoids wasting excess advertising dollars on ads that could prove futile. Example, married and unmarried women respond similarly to a sale on perfumes, they don’t constitute separate segments.
Exhibiting a comprehensive understanding of their audience needs and wants through a two-way communication, marketing managers are able to strategically position their products. This creates customer loyalty and raving fans who can have positive impact by making referrals, repeat purchases, and increase customer base while improving the financial performance. (604 WORDS)
CHAPTER 3 PART B- QUANTITATIVE DATA
This age of revolutionary marketing advancement, data is a miraculous tool if used strategically. Companies are able to target personal preferences and tailor marketing communication mix for rewarding results. As such, this report seeks to assess tools and techniques used to measure response rate after the campaign implementation process.
WHAT IS QUANTITATIVE DATA?
Monitoring feedback assesses whether campaigns has hit its overall objectives, to gain more in-depth insights on consumer behavior , possibility of return on investments and highlighting weak links and make necessary adjustments. For accuracy and better understanding of the target audience, resources are studied including Web analytics data and advertising data. Data are raw facts, once processed it becomes information (Moriah, 2007). Marketers collect primary data which are factual and original to analyze. A component of primary data includes quantitative data. (OECD, 2001) Says quantitative data is expressed in numerical forms either in quantity, amount or range.
Perfumes Guyana recently invested in digital marketing campaign, adding videos to their Facebook page and expanded to Instagram. To continually improve the effectiveness, management needs to asses which channel is driving the greatest number of visitors and converting leads.
TOOLS AND TECHNIQUES USED TO PROVIDE QUANTITATIVE DATA.
Key Performance Indicator is a quantifiable measurement that demonstrates how effectively a company is achieving key business objectives at multiple levels (Forrestor, 2016). These indicators provide performance information that enables organizations to understand whether or not they are on track toward its stated objectives while utilizing benchmarks to compare previous campaign results with current results.
Commercial sources include the use of the Point of sale machine which generates real time data. Each customer’s transaction are processed through the machine. With a simple click, the system generates a general report outlining inventory level, sales volume, financial statements and other information that can help to make strategic decisions. Displaying infographics of increased sales, bestselling items and even declines on the home screen. Management analyses the data gathered to implement impactful campaigns.
Another useful tool in gathering data is paper surveys. Possessing the ability to target hard to reach geographic area while allowing data collection from a large number of respondents. Numerous questions are asked giving extensive flexibility in data analysis. Surveys on awareness of company, products on demand, frequency of purchase and average dollar spent.
Web analytic evaluates the traffic on a website after the launch of a new campaign. It helps gauge traffic and popularity and track number of visitors, page views and likes. Providing managers with such information is useful for planning. (419 WORDS)
CHAPTER 4- THIRD PARTY AGENCY
Small, emerging businesses do not have the necessary resources to generate a marketing plan. Choosing a third party marketing agency, businesses can gain access to the desired marketing level. As such, this report seeks to assess the requirements of successfully managing a third party relationship while seeking their service to promote the company.
WHO IS A THIRD PARTY AGENCY?
Third-party agencies are consulting service suppliers who provide their expertise to clients. Outsourcing is therefore the term used when companies transfer regular business activities either functions or processes to an outside service provider that provides the services back to the organization. With constant upgrading and remodeling their platform to adapt and meet demands (Wilson, 2018) of their clients. Struggling to adjust to the rapid changes and growing diversity in media channels and customer analytic, Perfumes Guyana made a strategic decision seeking external support by outsourcing marketing activities to ActionCoach Guyana. However, outsourcing is primarily undertaken to generate better revenue recognition and providing them with an added competitive differentiator. It is considered a short term initiative and used to push start marketing campaigns
BENEFITS OF OUTSOURCING.
Outsourcing proves to be cost effective and time effective as it eliminates the process of training internal staff or recruiting personnel to execute impactful marketing campaigns. These service provider agencies possessing knowledge and understanding of the domain, consistency is guaranteed from years of experience and expertise. Perfumes Guyana can focus on the core areas on building brand awareness and provide higher value added services instead of spending endless amount of time formulating marketing strategies. Being small, investment capital for in infrastructure is a tender issue. Outsourcing removes the need for a marketing department, equipment and experts.
Operating on a small scale, hiring professionals instead of incompetent marketers is important. Failing to do this may result in unmet deadlines or incomplete assignments. Rigorously evaluating a potential marketer should be executed knowing that a partnership is being formed, and investing time and money with the wrong professionals can be expensive in terms of real dollars and opportunity cost. Certain marketing tasks require direct communication between marketers and customers, losing company reputation or jeopardizing relationship with customers may be encountered if marketers are unable to meet customers’ expectations. Finally, outside marketers may lack enthusiasm for growth and prosperity of the business because they may feel disconnected from the company.
REQUIREMENTS NECESSARY FOR SUCCESSFULLY MANAGING THIRD PARTY AGENCY RELATIONSHIPS.
It is important to establish and strengthen relationships with service providers. Relationships are based on mutual trust and commitment to achieving common, shared objectives. Perfumes Guyana facilitates the processes of the relation through control and management of a contractual agreement. The processes necessary for successfully managing third party relationships include opened two way communication in forms of meetings, cooperation, conflict resolutions and continuous performance monitoring, also goal settings.
Written goal statements were endorsed by the service provider and Perfumes Guyana. This outlines the objectives to be achieved within the stipulated time frame allowing clients to monitor the progress. It is vital to track and measure the output level as agreed upon. This indicates to management whether the results are achievable and correlating with the objectives.
Opened communication is considered a critical success factor. This allows a free flow of interaction between the demand company (Perfumes Guyana) and the client. Opportunities like theses allows for transparency and accountability. Argued recently by the marketing manager, too much communication can be as bad as no communication.
Demonstrating honesty, reliability, flexibility, being proactive and responsive contributes to the overall success (Ritchie, 2017). Businesses are evolving, demands are likely to change hence, provider’s ability to be agile and opened to changes in circumstance are necessary. Delivering consistency and avoiding slow or no response can curb hiccups.
Stakeholder’s involvement is crucial. Identifying their stakeholders and providing the information needed can greatly enhance the company’s performance. In fact, they are used most often to support and complement the campaign.
Conflict resolutions allows problems to be solved through consultation between both parties without escalating beyond control. At no point should outsourcing staff be treated in an ill-mannerly way. Working in a partnership requires corporation, dedication and commitment from both team.
DISADVANTAGES OF USING THIRD PARTY AGENCIES
Loss of control can occur when work is given to external service providers. This act as a barrier where management would be unable to monitor quality of work and unable to measure whether objectives are met. Outsourcing may be cheaper to Perfumes Guyana because they apply it to short term objectives. However, they may be hidden charges in the fine print of their contract. Reading the terms and conditions can avoid being ripped off. Protecting customer data is priority and it is important to exercise caution whenever using customer data when outsourcing processes. This may be unsafe placing the privacy of others or security of the business at risk. Third party agencies may often be motivated by profit rather than quality of work. Little time spend on creating and developing marketing campaigns may lack the standard and quality expected. Another major disadvantage of outsourcing may result in difficulty synchronizing schedules to ensure customer’s promises are fulfilled. Backlogs can build up, creating a negative image of the company depicting incompetency and unreliability. (868 WORDS)
Integrated marketing communications is not a new concept but requires constant and distinctive promotional activities to create competitive edge. The need to strive for greater integration is considered inevitable, although the means by which such integration may be achieved is uncertain. As a marketing consultant, I hereby recommend immediate measures such as more internal staff engagement, seeking financial support and better communication to remain competitive and stay ahead of the game.
Developing comprehensive business goals and objectives helps to assess the market, define the destination and shape what the business can become. Also, determines timeline for things to do. While goals can be broad or general in nature, objectives should be clear and concise. Objectives, however, need to be SMART—specific, measurable, action-oriented, realistic, and timely—to accomplish the goals. Specific objectives should be detailed and measurable in terms of dollar quantity. It was highlighted that objectives are clear targets used to evaluate performance. Objectives should be realistic but challenging. Without objectives, companies can get lost heading the opposite direction of the intended route.
Dynamic interactive media has the potential to create high quality learning environments which actively engages customers. There is evidence that the potential of interactive media is not being filled. Understanding the audience can enable the marketing team to create relevant and fascinating contents for interaction hence, measuring results can assure the correct media for success planning of long and short term goals.
Marketing strategies cannot devise without market segmentation. Defined segmentation identifies the target audience and product that is right for them. It minimizes wastage of resources, reducing the time spent marketing the wrong products to the wrong customers. It is important, however, to focus resources on market segments whose size, growth and profitability is good, both immediately and in the long run. Principles of market segmentation is an important building block of the marketing strategy – the foundation for an efficient, streamlined and ultimately successful approach to customers.
Monitoring and measuring responses from Integrated Marketing Communication campaigns is important. Being able to determine the most successful tools used and how effective were the campaigns can be measured through POS, surveys and wed analytics. The information gathered contributes to successful strategic planning and implementation.
Outsourcing is cost effective and time efficient for companies wanting to contract third party agencies to execute their activities including marketing. However, lack of control, incomplete assignment due to unplanned schedules can result in jeopardizing relations between clients and their customers. This misfortune can overcome by strengthening relationships with third part agency, involve stake holders and having an opened communication line