Components of Marketing Communications in Building Brands of Consumer and Business to Business Products and Services – a Comparative Discussion

This paper intends to present a comparative discussion of components of marketing communications in building brands of consumer and business to business products and services. Specifically, it will evaluate the mechanisms present in each aspect.

Marketing Communications

The changing world has then placed much emphasis on the importance of communication for effective marketing. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered (Lowenstein 1997). Consumer demands during these modern times are more pressuring and challenging. The varying and ever-changing needs of the regular consumer are constantly dependent on the demands of daily survival. Today, the human population particularly the modern consumers are more knowledgeable and demanding. Aside from the demand to have the best product or service possible, the practical consumers increasingly require social responsibility from companies and each other (Cetron and Davies 2001, 27). The majority of contemporary consumer judge companies on the way they treat the environment. Interestingly, the knowledge that every consumer possesses is still based in the communication strategies, programs and implementations provided by the business and its management. The knowledge about a new product is mainly based in marketing communications strategies such as advertising, direct selling, public relations, or the integration of all marketing communications strategies.

Luk (1996) affirmed that “the advent of new communication technologies has facilitated the use of a number of sophisticated marketing communications devices to support either mass marketing or focused marketing activities” (67). With this fact, the present marketing communication mechanisms that operate in the industry today is a bit different with the past decades. The general concept of marketing communication pertains to any messages and related media used to communicate a product, service, brand, organisation or company. Aside from the five usual major models of communication used – advertising, sales promotion, public relations and publicity, personal selling, and direct marketing (Neumann & Sumser 2002), others concepts like branding, graphic design, packaging, and online marketing are integrated. Marketing communications activities contribute to the organization's reputation and image (Daymon and Holloway 2002). In general, taking in consideration the existing culture of technology dependence and various market conditions, marketing communication practices used by local and international companies and organisations are mainly influenced by the new media technologies and equipment.

The changing world has then placed much emphasis on the importance of communication for effective marketing. All types of communication are involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communications. Among the channel members, even follow-up on complaints as well as customer billing may be included within the communication loop. In order to effectively serve the marketing channel, correct timing and accuracy in communications is essential. Moreover, it is important for the company to recognize that all members of the channel have an obligation or important role in maintaining the efficacy of marketing communications. Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock and Young 1979; Reichheld and Sasser, 1990).

Channel communications works in a two-way system wherein information transfers to the user and bounces all the way back to the producer (Goldberg and McCalley 1992). In other words, marketing communications works like a feedback system, which allows company producers to relay information to the customers. In response to the provided information, consumers give certain reactions or behaviors. For example, the electronic transformation of the services offered by hotel industry will result to better and more efficient and effective customer service system. Moreover, the functionality of the online portal for the marketing and advertising needs of the hotel industry will most possibly result to increase customer reach, satisfaction level and return of investment. Furthermore, if consumers somehow become better customers – that is, more knowledgeable, participative, or productive – the quality of the service experience will likely be enhanced for the customer and the organization (Bowers, Martin and Luker 1990).

Finally, some of the ways that companies acquired cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. The marketing concept states that the nature of the marketing orientated organization, whether product or service based, profit or non profit based, is the identification and genuine satisfaction of customers needs and wants, more effectively and efficiently than the competition (Lancaster 1999). If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership. In general, the components of marketing communications vary from every organization to another. The reason behind this is the fact that organizations differ in terms of function, structure, objectives and others. However, the common denominator in marketing communications is the fact that they uses all the given traditional forms of marketing communications such as advertising, direct selling, promotions, public relations, and other or even the sophisticated ‘new media’ technologies or the integrated marketing communications (IMC) model. The IMC is a product of the advertising, direct marketing, and public relations practices (De Pelsmacker and Kitchen 2004, p. 6). Also, it is a fact that all organizations aim to provide the most appropriate, sustainable and effective marketing communications strategy to the benefits of consumers, the products or services and the organization as well.

Marketing Communications in Building Brands of Consumer

In this age of globalization and information technology, deciding which brand to choose can be a problem. Competition is evident and intense, and the marketing and management divisions of corporations are surely giving everything they can to establish their brands. Competition forces certain brand names to become stronger than others because of product loyalty and name recognition. As such, all types of communication became more involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication (Goldberg and McCalley 1992).

Marketing communications in building brands of consumer includes initial steps that are particularly concentrated in product/service or brand campaign. Today’s market is characterized by highly competitive organizations which are all vying for consumer loyalty. Building brands of consumer requires basic marketing communications planning and identifying the factors that may affect the implementation of the marketing communications plan. Competition is an important factor to consider in building brands of consumer using marketing communication tools. Companies should have successful competitive strategies to be able attract, retain and grow customers. However, before the company can plan and execute these strategies, it should be able to pinpoint its sources of competitive advantage which can be differentiated through products, services, channels, people and image (Kotler and Armstrong 2001).

It is a universal fact that consumers tend to buy what is already familiar to them (Mittelhauser 1997). A fine and well-advertised brand might have a competitive edge from a lesser exposed brand name. But then, a lesser known brand can also have an edge over price, given that they cost less than known brands (Kim et al. 2002). Moreover, Hessan and Whitely (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself (p. 14). According to David (2003), there are at least four types of resources which the company can use to achieve its objectives: financial, tangible, human and technological resources.

Consumer loyalty and satisfaction are the main goals of marketing communications in building brands of consumer. Customer satisfaction refers to the consumer’s positive subjective evaluation of the outcomes and experiences associated with using or consuming the product or service. It is either a discrete, time-limited event or the entire time the service or product is experienced (Duffy and Kechand 1998). Satisfaction occurs when the product has been able to meet or exceed the conceived expectations that the customer has (Padilla 1996). Customer satisfaction may also be considered as the measure of the high degree of quality of the product (Jacobs et al. 1998). In a study conducted by Crosby and colleagues (2003), they deemed that once a product or service has been delivered or sold, its quality is believed to have been established.

Cultivating customer loyalty is about establishing a relationship between the company and its consumers (Chow and Holden 1997). This is emphasized by Lowenstein (1997) who considers that gaining consumer loyalty is a business’s most advantageous strategic purpose because it has a constructive effect on company, culture, development and the bottom-line. However, customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. With this, firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. Today, most companies find that it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage.

Customer satisfaction is the primary aim of marketing while loyalty is the main aim of marketing communications mechanism in building brands of consumer. Aside form establishing awareness, which is an elementary process in introducing a product/service or brand, the eventual increase and maintaining a significant number of consumers, is necessary in marketing communications strategies of organizations. Most enterprises ensure the best possible chance of attaining long-term stability and competitive standing through comprehensive customer analysis and implementation of marketing communication plans. Marketing makes the basic assumption that customer satisfaction should be the primary aim of the business. Such satisfaction can be achieved and sustained through the provision of competitive products or services, at competitive prices (Spreng, MacKenzie and Olshavsky 1996). It should focus on every aspect of marketing, not only on promotion and sales techniques, to persuade customers to buy but also on target market, marketing mix and the effective marketing strategy (Kotler and Armstrong 2001) because successful marketing results in stronger products, happier customers, and bigger profits.

Moreover, customers recognize the importance of knowledge in relation to the product being purchased. Several consumer behavior researches testified to this fact. Wong (2000) argued that a customer evaluates a product or a service. Such action is based on the customer’s reaction from the using the product or service, which means that the product or service should leave a good perception to the customer’s contentment. Frederick and Salter (1995) explained that it can be ensured that a customer is satisfied by taking into importance the value package, which includes: price, product quality, service quality, innovation, and corporate image. Others also stated the importance of maintaining or establishing a uniqueness of the product, while also understanding customers and what pleases them (Denton 1993). Customers should also understand the product and be allowed to set their own standards in order to be satisfied (Frederick & Salter 1995). The presentation of information about the brand is fundamental in marketing communications in building brands of consumer.

Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (Lindenmann 1999). Aside from having a strategic purpose, gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide (Chow and Holden 1997). Every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not.

When considering channels for any campaign, including new product or service launches, integration across different channels can have a substantial impact upon response, compare to channels working in isolation. The typical example cited is often direct mail followed by telemarketing, where the mail pack serves to put the brand or product in the mind of the recipient, 'warming them up' to the telemarketing. There are also natural partners – as digital becomes a more accepted part of the marketing mix, it is unusual to find any communications strategy particularly product launches, which ignore the use of email and websites. A combination of email and website work can give high impact, high relevance, and high reach, must form a key part of any communication strategy (Boylaud 2000).

All in all, marketing communications in building brands of consumer uses the mainstream and contemporary marketing communications strategies and tools such as advertising, direct or personal selling, public relations, Internet, others and the integration of all methods. Also, the marketing communications involve in this aspect is directed to consumer satisfaction and loyalty. All marketing communications plans implemented in building brands of consumer is perceived as competitive edge or advantage of the organization against its competitors.

Marketing Communications in Business to Business (B2B) Products and Services

As stated, today’s businesses are obliged to go with the trends brought about by modernization and globalization (Kim and Weaver, 2000; Ohmae 1990; Naisbitt and Aburdene 1990). Among the important contributors to world confederacy and the global economy are the advances in computerization, telecommunications, and other forms of information technology. A shift of focus and interest from the local market to the international setting has demanded innovation not just in corporate leadership as new information, forms of communication, and technology. These are being offered to be utilized in encouraging and reinforcing interaction among individuals and the operating enterprise. The existence of these useful mechanisms in the business contributes to the eventual growth and achievement of company’s strategic objectives. Further, the use of communications, Information Systems (IS) and Internet technologies provides countless of benefits. Aside from increasing the operational efficiency of the business, there are other advantages. Examples are providing opportunities for development; letting the business achieve its objectives, making the business accessible, being able to cater variety of clients, doing different types of transaction, record keeping, security of data, organizing different essential and confidential information (Falkenberg, Hesse and Olive, 1995).

The Internet, as one of the most popular form of new mass communication technology, has long been of full use and advantage to all sorts of businesses especially those who are in need of efficient and wide market reach on which to channel their promotional messages (Crews and Thierer 2003). Business, information and entertainment have been communicated with ease through such technological revolutions. The Internet is changing the way we do business, whether it’s finding new streams of revenue, acquiring new customers, or managing a business supply chain (Czerniawska and Potter 1998). E-commerce removes the geographical separation between regions, and made dealing with foreign trade a snap (Guttmann 2002). As such, the arrival of broadband Internet means that more and more people will shop online – suggesting there is plenty of room in the market for the convenience store and its competitors (Karake-Shalhoub 2002). Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. Moreover, e-marketing is a powerful tool that could be exhausted by the organizations in achieving marketing its objectives through the use of available and up-to-date electronic communications technologies (Smith and Chaffey 2001).

When e-commerce began to emerge in 1996, its first wave of applications concerned business-to-consumer (B2C) transactions which took off with amazing speed (Timmers 1999). While much of the early focus regarding the internet's commercial potential was on B2C transactions, investors soon got drawn to business-to-business (B2B) applications. Early on in the life cycle of e-commerce, it became evident that many sectors could benefit from the internet as a centralized mechanism of information-gathering. However, B2B e-commerce has already pushed far beyond simple information-gathering and streamlining of orders (Kosiur 1997). With the increasing traditions of B2B transactions, marketing communications strategies in this aspect are strategically planned and carefully executed.

Similar to marketing communications in building brands of consumer in terms of tools that are used, B2B marketing communications of products and services are focused in the speed and efficiency or effectiveness of the marketing communication tool. Also, B2B aims to increase of sales, assets, resources and the further expansion of business operations. Today, B2B transactions are done using electronic means such as Internet and other technologies. The traditional advertising (in print and broadcast) is replaced by ‘new media’ in B2B marketing communications. The Internet provides a very good global marketing application (Eckersley, Harris and Jackson 2003). e-Business enthusiasts will be well aware of the technical and financial advantages of e-Commerce. Internet -based business activities are opening up markets, improving information provision about different products, including non-corporate information. For example, typing ‘Nike’ into a search engine finds company pages as well as sites about Nike products alleging human rights abuses by the company. The Internet allows consumers much greater access to information, opening up the market and undermining monopolies (Eckersley et al. 2003). The Internet enables businesses to automate many operations and create a worldwide, 24-hour/day presence at low cost (Guttmann 2002). At the same time, it empowers customers to e-shop across the globe, greatly increasing their choice of products and their information about prices. Online services are common. With this, there us a need to critically evaluate online service depending not only on the willingness of its users to pay for online services, but also on their ability to do uphold the site’s function, user friendliness, ad support to the company’s business strategy. Also, online services can be evaluated within its web design and presentation of the products or services. Its easy access, comprehensive and understandable concepts are also being evaluated in online businesses.

The B2B marketing communications of products and services utilizes the advantages of Internet or online advertising. Also called web advertising, it is can control or customize the information according to organization’s interest using the Internet (Shih 2001). It provides instant interaction and connection to the consumers since they are the one who decides on what ad to view favorable to the field of their interest. The consumers are given the power to control the opportunity in establishing an on-line participation through the use of Internet (Cartellieri 1997; Kim 2001). The birth of Internet advertising started in the year 1994 when Netscape navigator 1.0 was launched (Steinbock 2000). It only started by using banner ads as compared to these days in which organizations and companies are able to put their advertisements through pop-ups, micro-sites and other ad formats. With this innovation, Internet advertising have gained significance in promoting the organization’s services and company’s products and have considered that the medium have been successful in providing the organization or company to have instant interaction with the consumers which marked opportunity for the company to save time and money (Kameya and Zmija 2002).

In B2B, strategic management and marketing communications are coupled with the reality that marketing and management are inseparable. In marketing communication, Bryant (1997) believed that strategic management combines strategic planning with the implementation and evaluation as to serve its deliberate function. Also, the information or feedbacks of the audience in various communication mechanisms serve as building blocks for a comprehensive strategic management.

The marketing communications in B2B products and services are electronically-based – using ‘new media’ technologies like the Internet. The reasons behind this are the fact that B2B transactions require speed and cost efficient or effective marketing communication tools. Also, B2B are aims to increase sales, company assets, resources and eventually expand its business operations. Similar to marketing communication tools in building brands, every B2B marketing communication plan is considered to be a competitive edge against its competitors.

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