Marketing Communication Implications Marketing Strategy

Question: Discuss about the Marketing Communication for Implications Marketing Strategy. Answer: Introduction: Kogan is one of the most popular homegrown retailers prevailing a recognizable place in the realm of retail industry. Headquartered in Australia, this particular organization has started its journey in the year 2006 under the direction of Ruslan Kogan. At the initial stage, Kogan was only concerned about selling television. Their marketing strategy and policy was very much successful to draw the attention of customers within short period. Having achieved a positive response, the marketing executives decided to expand their entire business process all over Australia. At the end to 2014, Kogan was very much successful to launch 14 more retail categories in order to enhance their target market. In addition, Kogan food items have already created a craze in the current market industry. The food items that have generated a market demand in Australia include nutella and pringles, razors, toothpaste and other confectionery items (kogan.com.au 2016). As per the current strategy of Integrated Marketing Communication Plan IMC managers aim to reach the doorstep of those customers who prevail beyond their own geographical boundary. Kogan tends to maintain e-commerce business process within the organization. In order to draw the attention of people from different geographical boundaries, the IMC managers should implement more business strategies and policies within the business process so that people apart from Australia can show their interest for purchasing the products and services of the organization (Berthon et al. 2012). Before expanding the entire business process in various countries the IMC managers have decided to look into two primary factors. Firstly, Kogan have to be more flexible in their service process. Customers should never wait for a long time in order to get a service from this organization. Secondly, the marketing executives have to become more active and responsive for promoting the products of Kogan. Delivering quality product to the customers would never be able to render the success of business. Marketing executives should communicate with the customers effectively so that the customers can differentiate Kogan with other organizations from the same industry (Cornelissen 2014). However, behind choosing retail sector as the source of revenue, the primary purposes of Kogan are as follows: To reach the target customer more effectively To occupy a place in the global market as well To enhance the target customers Brief analysis of the market segmentation Kogan has decided to segment their target audience based on the three primary perspectives that include geographic, demographic and psychographic. Geographic: Based on the market size, development of market and climate the customers have been segregated from various geographical areas (Dai et al. 2012). Kogan IMC managers have planned to target Sydney, Melbourne, Tasmania, Cairns, Perth, Brisbane within Australia as per the market size of these areas. People of these particular areas are able to afford the prices of Kogan products. Therefore, the IMC managers have decided to implement their communication strategy in those places for drawing the customers attention. As per the current communication strategy of Kogan, the organization aims to reach multinational countries for expanding their entire business process (Ferrante et al. 2014). At the first stage, Kogan IMC managers have decided to target two major countries US and UK to circulate their brands and services due to the wide range of market size and highly progressive culture. Demographic: Demographic market segmentation is constituted with age, level of income and gender. Kagon likes to maintain ecommerce business process with the help of which the marketing executives have targeted the people from different geographical boundary (Fouladgar and Simeone 2012). The people from 18 to 40 age group have primarily been selected as a target customer for this particular organization. People having medium level of income status are able to afford the products of Kogan. The IMC managers of Kogan have decided to maintain the product rate in such a way that both premium customers as well as the low cost customers can easily use the products and services. Kogan is currently dealing with the different categories of retail elements (Gray 2013). Therefore, both the male and the female customers have been selected as their target market. Psychographic: Psychographic market segmentation implies the culture, beliefs and values of different people. Kogan has designed their products in such a way that people from various culture and background can show their interest for purchasing these. Products should not be designed based on a specific culture and attitude (Jameson and Brownell 2012). As a result, the company has to depend on a limited target market. In addition, in order to reach the psychographic market of international field, the IMC managers have intended to plan for maintaining the product promotion in such a way that products can draw the attention of the customers. Objectives of communication: Before communicating the entire promotional activities, the IMC managers of Kogan have set several distinct objectives. The objectives are as follows: Rendering brand awareness: At the very beginning of journey, Kogan had to struggle immensely in order to create a recognizable position. From the year 2011, this particular company started to flourish their wings by expanding their food items more widely. Effective communication is one of the major tools of being familiar with different types of customers (Koskela 2013). Communication can be maintained both verbally or non-verbally. The service providers should be flexible of maintaining non-verbal communication with those people who are having linguistic barrier. Only quality service and product cannot be the effective pathways of getting success for a business organization. As per the instruction of IMC managers, the marketing executives have to communicate with the customers either directly or by utilizing the platform media. Gaining product reliability as well as overview of the company: In order to gain the reliability of products, the IMC managers have to provide an in-depth overview about the origin and the positive aspects of the brand. The ingredients that have been used at the time of manufacturing the product are clearly mentioned in this particular at the time of promotion (Li et al. 2015). In addition, the positive response of the customers who have already used this product should also be pointed out in order to gain the trust of people. The impression of a company is highly dependent of the service and product quality. If the customers are satisfied after using the product and services, they become one of the major tools of product promotion. A positive response from the customers helps to enhance the reputation as well as image of a specific company. Kogan is not exceptional to that. Raising the purchasing tendency of customers: Before purchasing a specific brand, the customers intend to get an in-depth overview about the reliability of that specific brand. Communication strategy has been considered as one of the most effective tools that would help to enhance the purchasing tendency of customers. Direct communication or in-direct communication both helps to draw the customers attention. With the help of direct communication, the service providers get the scope to interact directly with the customers (Macnamara and Zerfass 2012). The feedbacks that are collect from the customers are immediate. In case of in-direct communication, the service providers get the response being delayed. Kogan prefers to use direct communication for interacting with the customers directly. Chose one communication objectives from the above implementing the ethical issues Among three communication objectives that have already been discussed earlier, Kogan likes to stress on first objective especially within the entire process of business. This particular organization has dealt with the customers in such a way that customers can show their interest to purchase the products and services (Minas et al. 2012). However, brand awareness is the primary objective based on which Kogan wants to run their entire business process successfully in the market. In order to create a serious awareness on brands Kogan has to consider several factors. Celebrity endorsement is one of the major step or factor based on which the organizations can create the brand awareness. Celebrities create brand personalities. Whenever, one individual celebrity is seen to promote a particular product, the general people show their interest to purchase the product more effectively (Miritello et al. 2013). Therefore, most of the business organizations intend to create their brand awareness by using the popularity of celebrities. It creates an additional effect on the minds of target customers. In addition, in order to circulate the awareness of brand, organization can use the popularity of media as well. Kogan has raised their brand awareness by using some of the major tools of promotional activities (Quenot et al. 2012). Among the promotional tools, using the hoardings and banners, electronic media, digital media are most prominent. Kogan always likes to cast the popular celebrities for running their promotional activities. The persons who chosen f or the brand promotion of Kogan should have immense popularity and reputation in the realm of glamour industry. As a result, people from different geographical areas can easily recognize this individual person (Quirke 2012). Recently, Kogan is dreaming to expand their entire process of business to various multination countries in order to circulate their brands and products to the international market. Business expansion is one of the major ways for creating brand awareness on the target customers. Media plan: Media plan is constituted with several factors. Media plan can be conducted successfully by creating a specific media budget in order to make en effective promotion in various geographical areas. Media is the only effective tool based on which the products as well as services can be promoted effectively (Shirey 2012). Providing a quality product and services to the customers is not the only solution of rendering the success of an organization. In order to reach the product successfully to the doorstep of the customers, product promotion is highly important. Media in this case is the major component based on which the products have been promoted effectively. Kogan, as already stated is a renowned online retail shop occupying a recognizable place in Australia. Therefore, new media is the major pathways based on which the marketing executives like to promote the brands and products of this particular company. Australia is very much advanced in technology. Therefore, the inhabitants of Australia do not have to face major difficulties in order to deal with the new technology (Singhal and Rogers 2012). In the official website of Kogan, detailed overview has been provided about the aims and objective; mission and future vision of Kogan. However, new media has been chosen as the selected media tool for Kogan due to several reasons (Utz, Schultz and Glocka 2013). The reasons are as follows: Technological advancement: The technological advancement of Australia helps the inhabitants to be accustomed with the various functions of new technologies based on which they can use the service process of Kogan sitting at their drawing room. Dealing with the people of different geographical boundaries: Digital media helps to draw the attention of people from various geographical boundaries. In order to use the service and products, the customers would not have to visit the organization physically. They should know the online order procedures. Therefore, they can use the service of Kogan from various corners of different places. The online order procedure of Kogan is very easy. People having minimum literacy level are able to access the website of this particular organization (Utz, Schultz and Glocka 2013). In addition, transaction procedure of Kogan is also very effective. The supply chain managers are very much concerned about the demand and supply of the products. Maintaining a direct communication with the target customers: Kogan with the help of their public forum can communicate directly with the target audience. The service providers are available for twenty-four hours in order to resolve the queries of customers. In order to make any comment regarding the product or the services of this organization, the customers like to drop messages to the public forum. The service providers like to keep a touch on the feedbacks coming from the customers. Feedback includes both positive and negative. As per the feedback received from the customers, the business managers like to change their marketing and communication strategies and policies. Media budget: In order to promote the products of Kogan, the budget that the marketing executives of Kogan have calculated are as follows: Figure 1: Media Budget (Source: Singhal and Rogers 2012) IMC Plan evaluation: After conducting the entire integrated marketing communication plan, it can be evaluated that communication strategy is one of the most effective tools for drawing the customers attention. Communication strategy would be effective only when the organization gets a positive response from the customers. Kogan after making the IMC plan, have received immense positive feedback from the people of different geographical boundaries. In order to maintain an ecommerce retail shop, the people from 18 to 40 age group are the primary target customers. Kogan is not exceptional to that. Kogan being an online retail shop is able to draw the attention of different people from various places of Australia. After evaluating the entire IMC plan of Kogan, it can be concluded that IMC managers should provide more emphasis on promotional activities in order to draw customers attention. Apart from the media plan, the marketing managers should follow marketing mix strategy as well in order to place the brand properly. In addition, new media should be used as a tool of promotion more effectively so that customers can get an in-depth overview about the brand reliability of Kogan. The customer service system should be more effective and communicative for running the entire business successfully along with maintaining the reputation and organizational image. Reference List: Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy.Business horizons,55(3), pp.261-271. Cornelissen, J., 2014.Corporate communication: A guide to theory and practice. Sage. 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