Introduction Marketing Communication Definition Marketing Essay

founding market Communication Definition Marketing EssayBelch delineate Integrated market conference as a strategic assembly line serve up used to plan, develop, execute and evaluate coordinated, measurable, persuasive punctuate communication programs with consumers, customers, prospects employees and some other relevant external and internal audiences (Defining IMC). On the other hand, hold (2009) defined Marketing communications as a management process through which an organisation engages with its various audiences (p. 54). According to surfeit (2009), the use of the backchat integrated refers to the use of various strategies in trade communications.What is marketing communication auditA marketing communication audit involves the research of how palmy be the keep associations internal and external communications (Thomas, 2008) to enhance the transaction of the organization by identifying weaknesses and ways to improve it.Brief description of the companion Lou is Vuitton memoir of the companyLouis Vuitton (LV) is a opulence scratch which was founded by Louis Vuitton in 1854 in Paris (Diniz, 2009). From then onwards, it has grown to die nonpareil of the most wholesome known luxuriousness shits in the world. Today, its produce line includes luggages, bags, watches, shoes, jewelleries, and many more(prenominal) items (Diniz, 2009).Strength of the brandHusic and Cicic (2009) claimed that the customers of today go through more disposable income, do them more attracted to prodigality harvest-feasts. This claim is supported by Kapferer (2012) who agreed, saying that the performance of LV has shown promising step-up. Apparently, the company seems to have a lot of effectiveness for further development.The brand also has its own loyal customer base. These customers provoke decisions to buy the gains of the company through a decision-making process which in hypothesis is called the Consumer Decision Process Model shown below.Need recognitionSearch for selective informationPre-purchase evaluation of alternativesPurchaseConsumptionPost-consumption evaluationDivestment out inured Blackwell, Miniard Engel, 2006 work out 1 The Consumer Decision Process ModelStatistic /PlanThe sparing downturn has impact businesses worldwide, especially those which are luxury unattackables (Berman Evans, 2010). 56 percent of adults in a survey involving 2,700 consumers from Europe said that they would reduce optional spending by 12 percent on average (Berman Evans, 2010). This flock lead to a serious problem for LV if its customers are affected. On the contrary, a ponder by Nunes, Drze and Young (2011) revealed the opposite, showing improvements in LVs performance in the daring of ceding back. This can be attributed to the companys effective marketing communication strategies.Context abstractInternal FactorsCompany analysisLV has built an international news report for outstanding quality, creativity and craftsmanship in the duration of fiver generations (Fujiwara, 2007, p. 1). Maintaining the authenticity of the past while at the same time forecasting the incoming has been pivotal in the company measure outs (Fujiwara, 2007). Today, the brand has outlets all over the world (Kapferer, 2012).Product analysisLV products include handbags, luggages, purses, jewelleries, and others. The issue here is the vulner force of its products to counterfeits. Almost 99 percent are counterfeits (OFlaherty, 2008). Thus, the company has interpreted several steps to curb this problem by implementing the Principle to fleet Counterfeiting which includes distribution of warning notices and registration of trademarks (Shiganawa, 2008). However, these strategies are not always prospered because the root problems are not tackled.External FactorsEnvironmental factorsDelpal (2011) reported an emergence from 72 billion euros in 1994 to 168 billion euros in 2010 in luxury goods sales, making the yearly growth 5 perc ent on average. The growth of the luxury market has led to the entrance of many luxury excogitate brands, increasing the competition (Kim Ko, 2011). Therefore, LV should design competitive marketing strategies. challenger analysisLV has many competitors such(prenominal) as Herms, Dior, and Gucci. Herms grow its operations by employing more craftsmen and acquiring several companies of French rootage (Delpal, 2011). On the other hand, Delpal (2011) reported that Dior, Gucci and Yves Saint Laurent eliminated most license agreements to have better control of its operations. Then, LV launched several production units to keep up with increasing demands (Delpal, 2011). These strategies employed by luxury brands show that the companies sometimes do replicate the marketing strategies of its competitors competitively.Objective / Goal of the companyThe goal LV is to be the undisputed leader of the luxury goods sector (LVMH Codes of Conduct, 2010, p. 5). This objective is back up by the v alues shared by the company employees(a) designing and creativity because our future success will come from therenewal of our product offering while respecting the roots of our Houses.(b)Excellence of products and services because we embody what is most grandand accomplished in the artisan world.(c)Brand epitome enhancement because our brands represent an surpassingasset, a source of dreams and ambitions.(d) Entrepreneurship because this guarantees our great power to react and ourmotivation to create and simulate opportunities.(e) Leadership-Be the lift out because it is through continually excelling that weaccomplish the best and achieve the best results.Source LVMH Code of Conduct, 2010.What is the need for organizational objectives?Yip (2007) mentioned that it provides a wizard of direction and heighten, maximizing the potential for commodious term success.What is the publicityal objective and strategies of the company?The general promotional objective of the companies is to spend a penny a luxury brand go through so that the brand is associated with luxury among its customers (LVMH Codes of Conduct, 2010).What is the relationship of incarnate strategy and promotional objectiveThe promotional strategy is closely think to the corporate strategy of LV because it is derived from the overall objective of the company which is to become the leading luxury goods company. The company utilizes the SMART (Specific, Measurable, Achievable, Realistic and Timely) (Yip, 2007) guidelines to create its five core values.Budget and other resourcesFinocchiaro (2010) reported that the company increased its sum of money advertize expenditure in 2010 by 57 percent from 2009 to 2010. This study increase whitethorn be attributed to a rebound from the bad economic conditions in 2009. It was also mentioned that in 2010, from the month of January to June, $ 22 million was allocated for advert, compared to $ 14 million of the last year (Finocchiaro, 2010). This is a promising development in keeping up with the competitive environment.What are the differences between sales and communication-based objectives? gross sales based objectives are more concerned with the bottom line of the company and short term profits of the company whereas communication based objectives focus on edifice a favorable image of the company (Berman Evans, 2010 Kotler Armstrong, 2008). centre Strategy of the companyLV utilizes newspapers and magazines to display image ads as a pull strategy or else than aggressive ads which uses the affect strategy to attracts customers (Shiganawa, 2008).Source Kotler Armstrong (2008)Figure 3 Push versus Pull Promotion StrategyThe push strategy pushes the product to consumers while the pull strategy creates consumer demands for a product through marketing activities (Riley, 2012). Accordingly, LV has a principle of avoiding plug advertising such as television commercials to build its image as a luxury good (Shiganawa, 2008).Target AudiencesWhat is the steer marketAccording to Diniz (2009), the steer market of LV is males and females between the ages 30 to 50 years old, with income of 35, 000 or more. The company also targets graduates and professionals with sense of self worth and novelty seekers (Diniz, 2009, target segmentation). Plus, the company focuses on nation who value luxury brands as a symbol of status as well as those who respond to helpmate pressure (Nunes, Drze Young, 2011). Consequently, the feedback of these customers is important in order to evaluate the effectiveness of marketing efforts towards one of the most important goals which is customer gladness.What is the feedback from customersThe figure below shows the least things that customers like about shopping at LV based on a survey of 2,318 respondents from all over the world (Lee, 2009).Source Lee, 2009.Figure 2 What do you Like the Least about the Louis Vuitton Shopping stupefy?From the figure, service is seen as the least thing c ustomers like about the brand while the second least liked attribute is the price-value relationship. However, Lee claimed that the satisfaction of LV customers has little to do with the price-value relationship as customers who purchase the brand value the prestige of owning the brand, not its economical benefits. The survey also outline several interviews with the customers of LV to obtain their feedbacks. One customer said I dont look like a typical LV customer, so the sales throng were in a hurry to have me out of their store as dissolute as possible while another customer remarked I animadvert I did not fit the image I was not erosion all labels(Lee, 2009, Voice of the Customer from Louis Vuitton Shoppers). Lee (2009) said that the brand focuses its promotional activities and services towards people who seem to embody the target market of the brand, which are people with high hearty status. Although this is a differentiation strategy which may benefit the company, it may have adverse effects in the long run if the company does not recognize that they have diverse byplay from various backgrounds, not necessarily high status. This may be because today, people who are average in terms of income level has changing ineluctably and is moving more towards satisfying their wants for status rather than physiological needs.Marketing communicationThe aim of marketing communication (Brief) and roleThe aim of marketing communications is to engage the target audience in terms of process rational information or emotional information (Fill, 2009). Dion and Arnould (2011) said that LV is more concerned with the emotional aspects of consumption, due to its association with luxury goods. However, Fill (2009) suggested that there should be a balance between both elements (rational and emotional) rather than focusing on solely one need.The promotion toolsFor LV, the focus of the promotional tools is more towards enhancing the brand image rather than this instant gen erating sales.AdvertisingLV does not use mass advertising to create sales record book (Shiganawa, 2008). In fact, the company does not advertise in television commercials, which is one of the common ways of advertising. Television commercials are considered mass advertising. On the other hand, the company also uses magazines to display image ads. According to Laitinen (2009), this form of advertising is quite powerful because of its ability to be passed down to many people and retained in the magazine for a period of time.Personal merchandisingAccording to Shiganawa (2008), LV values the richness of communication between sales persons and customers because then, they are able to communicate more effectively about the product information and other details which cant be achieved through mass advertising.Sales promotionSales promotions are focused on creating value for money which involves tools such as coupons, deals, discounts and other means which create officious sales (Kotler A rmstrong, 2008). However, LV has a principle of prohibiting bargain sales and selling in value sets due to its emphasize on quality rather than price (Shiganawa, 2008). This is related to the objective of LV which aims to become the leading luxury goods brand.Public relationsPublic relations are concerned with building trust of the public through sponsorships, events, features and others to form a good image for the company (Kotler and Armstrong, 2008). As Fujiwara (2012) reported, 64 percent of luxury goods customers are in favor of socially responsible brands. Thus, LV puts great importance in being involved with the community. This is evident through the companys effort in constructing a forest in japan, contributing scholarships in China, creating an arts course in London and making a playground in Russia (Fujiwara, 2007). The focus of its social responsibility activities towards local anesthetic context shows how the company is aware of the needs of its local customers.Direct marketingThe company markets the product by showing demonstrations on how to care for the products and providing relevant information face-to-face. This encourages feedback and enquiries can be made directly while receiving prompt responses.Intercultural Marketing communicationIt is advisable to take into circumstance the local factors in carrying out marketing communication. LV demonstrated its ability to adapt to local context by organizing various marketing strategies to build public relations. For example, the company built 40 playgrounds in 30 Russian states through the Naked Heart Foundation, preserved the environment in Japan through the Louis Vuitton Forest through More Trees program, participated in fundraising activities in southernmost Africa through the Mandela Rhodes foundation and other social responsibility programs in Thailand, Spain, China, France, and many other parts of the world (Fujiwara, 2007). This shows that the company pays attention about the happenings i n different parts of the world and takes part in helping as part of it public relations effort.Problem statement of the CompanyThe LV brand has the potential to increase its performance through various marketing communication tools. However, several issues must be highlighted.Nunes, Drze and Young (2011) reported that the recession may have an adverse effect on the performance of businesses such as LV which emphasizes luxury. Another problem faced by the company is the wide availability of counterfeit products, an estimated of 99 percent which is a real high percentage of counterfeits (OFlaherty, 2008).RecommendationDuring recessions, the company can temporarily deviate its marketing strategies to reflect the changing market situation. For example, instead of prohibiting the placement of ads in televisions to reach the mass community, the company can employ this method to increase awareness and create new trend towards better value. Plus, the company can be more flexible towards i ts target audience to include younger generations who has increasing buying power as well as having the ability to generate greater word-of-mouth communications. In terms of combating counterfeit products, the company should reinforce the Principles Prohibiting Appraisal of Authenticity more strictly and adhere to the rules set by the companies themselves.ConclusionThe LV company has a differentiated promotion strategy and is more selective in the way it conducts marketing activities such as ad placement, pricing, and others. This is important to build an exclusive brand image in line with its aim to become the leading luxury brand in the market. The company also avoids mass advertising to a current extent and mainly aims to advertize to its target audience. However, the company still maintains good public relations through its socially responsible strategies. In conclusion, the grooming of marketing communications is important and is mainly dependent on the central objective of the company. In the case of LV, it is to become the leading luxury brand.(2180 words)