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). The marketing concept has been consistently evolved into more contemporary and sophisticated ways. Among these is the existence of new technologies that covers the overall process of marketing. However, the tools that is normally used has also adapted to the changing times. It proved to be very flexible considering that marketing techniques has been employing the use of modern technology to enhance their efficiency as well as their capacity to provide the needs of the consuming public.
During the last decade, a number of technological evolutions have led to a revolutionary change in the scope and use of what have been called 'new media'. The growing sophistication of Internet technology and the spectacular increase in the penetration and use of the Internet, and the revolution in telecom technology and the use of mobile phones, are the two most striking examples. But also an emerging technology like digital interactive television holds in it the promise of fundamental changes in people's media use. All these evolutions are challenges for the marketing communications manager who can benefit from integrating these new media in his/her marketing communication strategies, but who will also have to cope with the typical characteristics, opportunities, and pitfalls of these new media and the way in which potential customers use them.
This paper aims to discuss the marketing communication practice of nine selected Hong Kong-based organisations – three each from the public, private, and non-profit sectors. The nine organisations are: public – Hong Kong Tourism Board, Mass Transit Railway Corporation Limited, Hospital Authority; private – Maxim’s, G2000, Emperor Entertainment Group; and non-profit - Hong Kong Association of Banks, The Better Hong Kong Foundation, Textile Council of Hong Kong Limited.
Marketing Communication – an Overview
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” (p. 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. But, it is still believed that the underlying principles of marketing communication still prevail.
PUBLIC ORGANISATIONS
Hong Kong Tourism Board (HKTB)
The HKTB primary responsibilities are to market and promote Hong Kong as a destination worldwide, as well as to take initiatives to enhance the experiences of its visitors once they have arrived. Its mission, on the other hand, is to maximise the social and economic contribution that tourism makes to the community of Hong Kong, and to consolidate Hong Kong's position as a unique, world class and most desired destination.
It promotes Hong Kong as a vibrant, international city, the Events and Culinary Capital of Asia, and a leading global business, transportation and communications hub. Based on the finding of its extensive research, the HKTB utilises four product “pillars” – shopping, dining, culture and heritage, and city, harbour and green – as the basis for its marketing and promotional activities. These “pillars” encapsulate the city's depth, diversity and vibrancy, and underpin both the HKTB's current integrated global brand marketing campaign – Hong Kong – Live it, Love it! – and its year-round programme of Mega Events (HKTB Website 2006).
MTR Corporation Limited (MTRCL)
Listed as a public type organisation in Hong Kong Stock Exchange (HKSE), the Mass Transit Railway Corporation Limited (MTRCL) was founded in 1975 as government-owned statutory corporation. It generally caters to the investment and construction of railways. Today, its major dealing is to oversee the operation of mass transit railway system not only in Hong Kong but in some specified places worldwide. In the first six months of 2005, MTR Corporation accounted $4,385 million HKD full amount revenue (MTRCL Website 2006).
Hospital Authority (HA)
The Hospital Authority is the sole legislative and regulatory body that manages the operations, conditions, and all related issues of all public hospitals in Hong Kong. As directly linked under the supervision of the Secretary for Health and Welfare, the organisation carries out its role through the implementing efforts of the Hospital Authority Board. At present, “it currently manages a Head Office, 41 public hospitals / institutions, 47 specialist outpatient clinics and 74 general outpatient clinics (with the transfer of the management of 59 General Outpatient Clinics from Department of Health in 2003)” (Hospital Authority Website 2006).
PRIVATE ORGANISATIONS
Maxim’s
Popularly recognized with its chain of bakery, Maxim’s is also a Chinese restaurant that offers dining and food services in Hong Kong and some parts of the globe (ETI Consulting Website 2006). It was established in 1956 and half-owned by the Dairy Farm International Holding Limited. Today, it is “a catering conglomerate operating over 60 brand names and 400 outlets that serve more than 480,000 people every day” (‘Hong Kong Maxim’s Group’).
G2000 (Generation 2000)
Founded by Michael Tien in 1985, G2000 is a collection of classy and urban-wear garments intended for both men and women. Its aim is to provide an alternative to expensive signature brands and its original target market is the Asian consumers. Today, there are 24 Hong Kong stores and numerous international outlets. G2000 also manages another clothing brand – U2 (G2000 Website 2006).
Emperor Entertainment Group (EEG)
Hong Kong’s one of the leading and largest entertainment groups, EEG was established by Albert Yeung in 1986. It develops and introduces many artists, pop-stars and performers. Originally, EEG only deals with the CD and DVD publishing business but expanded its operations to concerts and movie administration (EEG Website 2006).
NONPROFIT ORGANISATIONS
Hong Kong Association of Banks (HKAB)
The Hong Kong Association of Banks (HKAB) primarily outlines several plans and coordinates with the Government in developing programs and initiatives for the banking sector. It was created in 1981 in replacement to the former Exchange Bank’s Association. The members are the banks themselves and not the employees, but selected representatives are chosen in cases of general meetings or corporate conventions (The Hong Kong Association of Banks Website 2006).
The Better Hong Kong Foundation (BHKF)
Initially founded by 21 leading local business and community leaders in 1995 to “enhance the confidence – both economic and social – in Hong Kong”, Better Hong Kong Foundation was a ‘response’ organisation to the misconceptions about HK’s future. It mainly tackles the following activities: independent facilitator of discussion and debate, gathering the facts through research, bringing Hong Kong, China and the rest of the world closer together, and promoting togetherness, while caring for the community (The Better Hong Kong Foundation Website 2006).
Textile Council of Hong Kong Limited
The Council is composed of all major textile associations committed in addressing the issues and matters that affect the whole industry like “commercial policies affecting Hong Kong's textiles exports such as quotas and anti-dumping actions, Hong Kong's textile export controls system, the employment ordinance, environmental rules and regulations, taxation and tariff etc.” The organisation also individually handles or collaborates with other groups in conducting study missions, projects, seminars and other activities (Textile Council of Hong Kong Limited Website 2006).
ANALYSIS
Before dealing with the in-depth analysis, there is a need to indicate that almost all the chosen organisation maintains their respective corporate websites. With this fact, the basis of analysis revolves around the presence of such mechanism.
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In this case, the HKTB uses the above-the-line process as marketing communication practice carefully. During the 2006 Discover Hong Kong campaign, the organisation implements several mechanisms to promote the attractions, products, services, and related circumstances about Hong Kong. Several TV commercials, promotional and information videos are produced by the Board and distributed to media affiliates (HKTB Website 2006). Today, the HKTB continuously cooperates with press people (writers, editors, broadcast journalists and layout artists) for the promotion of the country’s products/services. Advertising in posters is also used through the presence of picturesque images, vibrant colours, and captivating copy. The HKTB maintained strategic alliance with overseas partners in promoting its particular programmes and activities. The MTR Corporation on the other hand, also practices the same system – advertisements in leading newspapers and TV commercials. Recently, the MTR released its new commercial regarding escalator safety (MTRCL Website 2006). Instantaneously, MTR management also release press statements and advisories about the various activities that they partake with. Hospital Authority does not aggressively advertise instead, they only coordinate with the hospitals in releasing advertising-related documents, programmes and others.
On private organisations, Maxim’s and its management largely depend on the advantages of advertising. They use all the forms of media in building the name of their company and also in promoting their products. Most of the time, Maxim’s allocates significant financial figures in maintaining a good advertising campaign. Similarly, G2000 practice above-the-line marketing through the presence of print and broadcast advertisements largely characterised with the charisma of attractive models that are wearing their product line. Glossy pictures of their apparel are published regularly in leading magazines worldwide. The Emperor Entertainment Group, on the other hand sees to it that above-the-line marketing activities do not interfere with the actual organisational objectives. The management frequently uses advertising techniques on special cases. Interestingly, the appearance of their company’s name in every poster created and co-organised by them is another way of advertising.
Non-profit organisations are not much into above-the-line marketing. Hong Kong Association of Banks, the Better Hong Kong Foundation and Textile Council of Hong Kong Limited only advertises using the mainstream media during special announcements of events, conventions and general assemblies. The management of these organisations largely depend on the personal communication since the community or industry that they are working with is bounded as one.
However, it is stated earlier that the nine chosen organisations maintain a website. Therefore, they utilises the advantages of Internet or online advertising. Also called web advertising, it is can control or customize the information according to organisation’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 favourable 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 organisations 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 organisation’s services and company’s products and have considered that the medium have been successful in providing the organisation or company to have instant interaction with the consumers which marked opportunity for the company to save time and money (Kameya & Zmija 2002). The nine companies significantly provide information in their corresponding websites. This is another way to inform people, promote products and services, build organisational or corporate brand, and major means of communication particularly to the targeted segment of the audience.
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The Hong Kong Tourism Board markedly uses below-the-line marketing through the materialisation of events, sponsoring tourism activities, and organising related programmes. Aside from this, the Board also distributes leaflets, brochures, and catalogues to affiliated travel agencies, personnel and overseas associations. Since it caters to the tourism industry of Hong Kong, HKTB particularly focused below-the-line marketing by means of expanding their strategic cooperation not only to its members but also to all the affected individual and areas concerned. Meanwhile, MTR Corporation also uses development communication tools like posters about safety, brochures and ‘how-to’ manuals related to transportation and paid exclusively by the management. Also, events sponsorship and partnership to other companies or organisations (like Sanrio – Hello Kitty stamp) is also a prevalent practice. The Hospital Authority prioritises event sponsorship and organisation of conventions. Relatively, Maxim’s mainly uses sponsorship and collaboration (like its participation in HKTB activities), free samples when introducing a new product, raffles and customer discounts. G2000 organises fashion shows and other events that will feature their product line. Sponsorship to celebrities is also used. The Emperor Entertainment Group similarly sponsors and organises their individual events. Since they deal with celebrities, artists and musicians, EEG and products are always included in their artists’ personal promotions and campaigns. Non-profit organisation like the Hong Kong Association of Banks, The Better Hong Kong Foundation, and Textile Council of Hong Kong Limited are likewise uses event sponsorship, organising and conducting seminars, forums, and related activities that will materialise their organisational goals.
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With the existence of new media technologies that advances the traditional marketing communication practice, all modern-day organisations are committed in delivering a single message. Correspondingly and collectively, all the nine organisations uses various and individually designed IMC tools. For Hong Kong Tourism Board (HKTB), the presence of their website, press relationship and strategic alliance to several organisations, advertising using the traditional media, public relations, and continuous creation of new programmes and innovations in Hong Kong’s tourism industry. MTR Corporation Limited management selectively decides on certain issues regarding the marketing communication practices of the company. But there are also apparent activities and new projects that the company is dealing with. The Hospital Authority still depend on its members. Any IMC practice implemented is discussed by all members. Maxim’s and G2000 uses the given advantages of IMC as seen on their organisations objectives of earning revenue as well as building consumer relationship. All possible IMC and promotional tools are widely used by the both organisations locally and globally. The Emperor Entertainment Group also hold its own way of integrating marketing communication tools with the changes that occur in the organisation’s working environment. For private organisations that are into profit accumulation, the marketing mix is a good help in developing an IMC plan based on the consideration of product, price, place and promotion (Hartley & Pickton 1999). The three non-profit organisations - Hong Kong Association of Banks, the Better Hong Kong Foundation, and Textile Council of Hong Kong Limited depends their IMC in the trends and activities that are inherent in their area of operations and service.
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An analysis of the contact points would show the presence of the following elements: customer service, sales force, retail merchandising, dealer/distributor, production, brand management, after-sales service, internal communication, corporate identity, advertising, distribution, pricing, products, people, processes, market research, complaints, comments, & requests and public relations. In general, the chosen organisations more or less have the given contact points.
Marketing Communication Trends
The new media technologies largely affect the emergence of marketing communication trends. Also, the changes that occur within the boundaries of the organisation as well as the consumers are significant attributes. As seen on the nine organisations, it is very important to note that advertisements and promotional campaigns are now more visual and multi-functional. The corporate or organisational objectives are always seen in every promotional activity.
It is also important to recognise the difference in organisational structures, purposes, and process or operations. For the public sectors, public relations are more evident. This is due to the fact that audiences are losing trust to public offices. They need voluntary supporters to carry out their activities and programs to stay intact and focus of their commitment to serve (Booms and Bitner, 1981 p. 21). Thus, public organisations are striving to build a good image and reputation, service orientation, and procedural mechanisms particularly in dealing with the needs of people. Private organisations, on the other hand, are directly focusing on several marketing, advertising, and public relations activities along with personal selling and sales promotion practiced by various personnel and branches. As primarily defined to earn revenues, private organisations manage inclusive efforts to establish, promote, and maintain organisational image and use it as competitive edge. Non-profit organisations are also using the same technique of the public sector. Gaining the trust and cooperation of members and related individuals and areas are deliberately considered.
CONTRIBUTION OF MARKETING COMMUNICATION
In Hong Kong, the government recognizes the important involvement of small companies especially in relation to the colony’s economy. In the same manner, the given importance to small companies is also analogous (Luk 1996). The use of effective and efficient marketing communication practice affects several parts of the organisation.
In Issues Management, marketing communications can predict emerging trends (Miller 1999) reorganise organisational objectives, define potential loopholes in business operations, and a potent source of strategic action. As marketing communication deals with communicating to the people, organisations are able to collect information that will serve as appraisal to present organisational conditions. The effects of marketing communications in issues management serve a big purpose in the next operational years of the organisation and also aid in developing a wider and more positive range of organisation responses toward the future.
In Crisis Management, marketing communication activities can handle potential crises and even slows down its development. With the help of any communication medium, crises encountered by the organisation can be dealt easily by means of teamwork. Teamwork is rooted with the harmonious relationship of the organisation and the media and people. Marketing communication can provide today’s business environment with forceful, enterprise-wide plan to deal with unexpected crises (Lockwood 2005).
Change Management is almost related to marketing communications. The global marketplace is rapidly changing as result of technological revolution and eventually promotes innovation (Randall 2004, p.27). Through marketing communication, organisations are able to deal with the changes inherent in the operations of the business. They can deal with the demands of the target audience and effectively practice their corporate responsibility. Since marketing communication can predict emerging trends, direct changes in the operational procedures of organisations as a result of information dissemination within and outside organisations is practicable. Cummings (2002) argued that successful change management is essential for a successful diversity programme especially on cases of managerial and organisational responsibilities and functions.
Strategic management and marketing communication 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.
Management is indeed practiced. Theoretical management is not effective because it simply remain as a concept and not being utilised at all. Effective and practiced management is seen in the continuous effort of every manager to make an organisation or company successful. In this ultimate challenge for the manager, professional qualifications and managerial expertise is not questioned, but ethics in performance of his/her responsibilities is taken at hand. According to Jackson (2005, p. 1), managers are usually role models in ethical cases through leadership; set up realistic goals; provide ethics training; and distinguish compliance and ethics. Ethical considerations are evident, with the increase in the awareness of social responsibilities. Thus, in the effective application of marketing communication, ethical considerations must be palpable.
OPINION
With the present conditions and conventions in the academe, there are several aspects that can be considered to undergo development especially in relation to marketing communications. Management professors must equip their selves with high-end knowledge and should replace the worn-out ideas. They should reinforce the need of every student to acquire not only theoretical but also realistic characteristics that will be useful in their future careers. The given importance of research and development (R&D) must be incorporated in every class activities. The management students, in the same manner, should familiarise their selves with the organisational structures, processes, and many other related facts before delving into managerial decision making and taking. Communication together with management and marketing theories must be exhaustively explained and understood by the instructor and also the learner. The integration of theory and application is enforced. As points to greater responsibilities for communicators to specialize in areas of communication effort is apparent, it requires core information for continuous learning and knowledge acquisition. All in all, actual and most recent cases are to be used as examples so that management experience is integrated in nature. With real cases, it makes students more trained and ready to face the challenges of the deliberately changing global marketplace. Finally, discovery is always acknowledged.
LIST OF ORGANISATION AND COMPANY WEBSITE
| Hong Kong Tourism Board (HKTB) – http://www.discoverhongkong.com |
| MTR Corporation Limited (MTRCL) – http://www.mtr.com.hk |
| Hospital Authority (HA)– http://www.ha.org.hk |
| Maxim’s – http://www.maxims.com.hk |
| Generation 2000 (G2000)– http://www.g2000.com.hk |
| Emperor Entertainment Group (EEG) – http://www.eegmusic.com |
| Hong Kong Association of Banks (HKAB) – http://www.hkab.org.hk |
| The Better Hong Kong Foundation (BHKF) – http://www.hkab.org.hk |
| Textile Council of Hong Kong Limited – http://www.textilecouncil.com |
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