What Is Ethics Corporate Communication and Marketing: Learning Outcomes
What Is Ethics Corporate Communication and Marketing: Learning Outcomes
What Is Ethics Corporate Communication and Marketing: Learning Outcomes
3
Corporate
Communication
CHAPTER And Marketing
What is Ethics
LE ARNI NG OUTCOMES
By the end of this topic, you should be able to:
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
INTRODUCTION
Through effective communications, marketers attempt to build product category needs, create
brand awareness, and facilitate purchases. This chapter reviews theorising regarding corporate
communication and marketing, the effect of the major IMC tools including advertising, spon-
sorship, the Internet and interactive media, direct marketing and exhibitions.
Marketing communication is the process by which information about an organisation and its
offerings is disseminated to selected markets. Communication plays important role in facilitat-
ing mutually beneficial exchange relationship between an organisation and prospective buyers.
The goal of communication is to induce initial purchases and also to achieve post purchase
satisfaction which will increase the probability of repeat sales. Figure 3.1 illustrates the goal of
communication.
Initial
purchases
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
It is the task of marketing manager to manage the communication process most effectively. For
this purpose, marketing manager have their specific communication activities called elements,
function, tools or tasks (Kerin & Peterson, 2007). These activities are termed as marketing com-
munication mix which include advertising, personal selling, and sales promotion. Figure 3.2
shows some examples of marketing communication mix.
Marketing
Plan work
Surveys and Incentives and
Questionnaires Promotions
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
Nowadays, marketing managers should not limit their thinking to which communication activ-
ity to use when designing communication strategies. They should broaden their perspective to
think of integrated marketing communications the practice of blending different elements of the
communication mix in mutually reinforcing ways (Kerin & Peterson, 2007).
Marketing communications are messages and related media used to communicate with a market.
Those who practice advertising, branding, direct marketing, graphic design, marketing, pack-
aging, promotion, publicity, sponsorship, public relations, sales, sales promotion and online
marketing are term marketing communicator. Traditionally, marketing communication practi-
tioners focus on the creation and execution of printed marketing collateral; however, academic
and professional research developed the practice to use strategic elements of branding and
marketing in order to ensure consistency of message quest throughout an organisation. Many
trends in business can be attributed to marketing communication; for example: the transition
from customer service to customer relations. Marketing communication is concerned with the
general behaviour of an organisation and the perceptions of the organisation that are promoted
to stakeholder. Figure 3.3 shows some examples of printed marketing collaterals.
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
The marketing communications discipline is the employment of a mix of media vehicle that
support marketing objectives. From a domain perspective, the marketing communications dis-
cipline is viewed as an implementation function to the product marketing and corporate mar-
keting disciplines. Marketing communication manages and employs different media vehicles in
order to communicate information about the company and its products to the target audience.
SELF-CHECK
1. What is the main difference between marketing communication and
corporate communication?
2. Who is marketing communicator?
With the increase in the pace of business cycles, the rapid changes in the local and international
economies, corporate companies are evaluating the way we do business to rise the clutter and
differentiate the product and services. Its not easy to get the product or service noticed in
todays world. Finding the right mix of integrated strategies and the means of credibility com-
municating messages can be tricky.
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
In recent years there has been strong interest among academic and marketing practitioner in the
concept of IMC. However, to evaluate the effectiveness of an IMC program, marketers must be
able to determine how the use of various marketing communication tools impacts their custom-
ers. Figure 3.5 describes various marketing communication tools used in an orgainisation.
Directory
Various
Fax marketing Trade show
communication
tools
The formulation of an Integrated Marketing Communication Strategy requires six major deci-
sions:
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
Integrated Marketing
Communication
Activities
Target-Market Characteristics:
A target market consisting of a small number of potential buyers,
living in close proximity to one another and purchasing in large quan-
tities might suggest personal selling strategy. By contrast, a mass
market that is geographically scattered generally calls for an empha-
sis on advertising.
Organisational Capacity:
The ability of the organisation to undertake certain communication
activities. The decision has both economic and behavioural dimen-
sions. The economic dimension relates to the issue of fixed versus
variable costs. The behavioural dimensions focus on issues of con-
trol, flexibility, effort and availability of independent and company
sales representatives.
The IMC concept has been growing in popularity for several reasons. First, the proliferation of
thousands of media choices beyond traditional television has made promotion a more compli-
cated task. Instead of promoting a product just through mass-media options, like television and
magazines, promotional messages today can appears in many varied sources. Further, the mass
market has also fragmented; more selectivity segmented markets and increase in niche market-
ing have been replaced the traditional broad market group that marketers promoted to in years
past. Figure 3.7 shows some new form of advertising models.
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
A successful IMC is dependent upon marketing working closely with research and development
and manufacturing with regards to quality and availability. Simultaneously, marketing has to
interact closely with finance, accounting and human resources departments in order to establish
appropriate goals and objectives for its marketing communications programs, is the sum of the
external messages and internal operations that produces a satisfied customer. Table 3.1 lists the
benefits and barriers to IMC.
Table 3.1: Benefits and barriers of IMC (Integrated marketing communications)
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
ACTIVITY
Research on the subject of IMC. Make a presentation to your class (together
with documentation of your findings).
SELF-CHECK
1. What are the six major decisions for an integrated marketing communication
strategy?
2. What are the benefits and barriers to IMC?
Many people confuse public relations and corporate communications with another management
function marketing. In fact, many hired into public relations jobs spend much of their time
supporting marketing, introducing new products and services, publishing their uses, and pro-
moting aspects of the marketing strategy (Cutlip, Center & Brown, 2000). Figure 3.8 illustrates
the marketing strategies.
Product design
Research Packaging
Marketing
Price Distribution
Promotion
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
The public relations, corporate communications and marketing can be distinguished conceptu-
ally and their relationship clarified. The marketing communications department coordinates and
manages publicity relating to new or existing products and also deals with activities relating to
customers. Marketing consists of a coordinated program of research, product design, packag-
ing, pricing, promotion, and distribution. The goal is to attract and satisfy customers (or cli-
ents) on a long-term basis in order to achieve an organisations economic objectives.
Its fundamental responsibility is to build and maintain a market for an organisations product or
services (Cutlip, Center & Brown, 2000, 7). It also may manage corporate advertising.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of
a market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no point spending R&D funds developing products that people will not buy. History
attests to many products that were commercial failures in spite of being technological break-
throughs. Figure 3.9 illustrates the aspects of consumer research.
Extend your relationship with your best and most influential customers.
Talk to customers.
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
Product publicity always includes sponsorship of events for major corporations, such as golf
tournaments, car races, and even marathons. In addition, celebrities are often involved in these
activities, which require coordination within the company. Given how important such events
and sponsorship agreements can be in shaping a companys image, corporate communication
experts are often involved in setting the events agenda (Argenti, 2003). Figure 3.10 shows some
of the product publicities.
SELF-CHECK
1. Why customer relations were very important to the organisation?
2. Give five (5) rules to communicate with the customers.
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
Direct Marketing
Reporting
Online marketing
and Analysis
Direct marketing is the traditional promotional/marketing process whereby marketers use di-
rect contact with consumers or business buyers with intent of communication information or
bringing about a transaction. Direct marketing is an attempt to send its messages directly to
consumers, without the use of intervening media and focussed on driving purchases that can
be attributed to a specific call-to-action. Nowadays, direct marketing is an interactive system
that uses one of more advertising media to effect a measurable response and or to transaction at
any location. Direct marketing uses a combination of media, is often designed to elicit a direct
response and transactions can occur anywhere.
The primary of methods of direct marketing are telemarketing using telephone sales solicita-
tion, and direct response in advertising in magazines, newspapers, and on television and radio,
online ordering via internet. However, direct mail does not equal direct marketing. It is merely
one of the media used within a direct marketing system, which revolves around the database.
Figure 3.12 shows some of the primary methods of direct marketing.
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
For many companies or service providers with a specific market, the traditional forms of adver-
tising (radio, newspapers, television, etc.) may not be the best use of their promotional budgets.
For example, a company, which sells a hair loss prevention product, would have to find a radio
station whose format appealed to older male listeners who might be experiencing this problem.
There would be no guarantee that this group would be listening to that particular station at the
exact time the companys ads were broadcast. Money spent on a radio spot (or television com-
mercial or newspaper ad) may or may not reach the type of consumer who would be interested
in a hair-restoring product.
Internet activity:
WEBSITE Visit:
1. http://www.wisegeek.com/what-is-direct-marketing.htm to learn more about
direct marketing.
2. http://www.realtor.org/rmoquiz2.nsf/personalmktgquiz?openform and
answer the quizzes.
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
The grown in popularity of direct marketing is due to a number of factors. Some of these have
to do with changes in consumer lifestyles and technological advancements that in effect create
a climate more conducive to the practice of direct marketing. In addition, direct marketing pro-
grams offer unique advantages via conventional mass-media advertising, leading many organi-
sations to shift more of their marketing budgets to direct marketing activities. In direct market-
ing communication, the creative approach, although important, has less effect on response rates
than the targeting, the offer and incentive and the utilised.
A companys image can be also enhanced or altered through corporate advertising. This sub-
function of corporate communication is different from its product advertising or marketing
communication function in two ways (Argenti, 2003). First, corporate advertising tries to sell
the company itself. Second, corporate advertising is issue advertising. It attempts to do even
more than influence opinion about the company and specific issues that affect the company.
Figure 3.14 shows some examples of corporate advertisement.
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
Corporate advertising can be defined as paid use of media that seeks to benefit image of the
corporation as a whole rather than its product or services alone (Argenti, 2003). Corporate im-
age advertising should brand a company the way product advertising brands a product. A
major difference between corporate and product advertising is who pays for each of the two
types of advertising. A companys marketing department is responsible for all product related
advertising and its payment. On the other hand, corporate advertising falls within corporate
communication area and budget allocated for the activities related to corporate advertising. This
is because corporate advertising should present a clear identity and image for the organisation.
Many companies use corporate advertising to strengthen their identities. They need to explain
their vision, mission and strategy to constituents. For example.. Effective image advertising
also allows the organisations to differentiate themselves from the rivals.
For example. Issue or advocacy advertising is used by the organisations to respond to inter-
nal threats from either government or special interests groups. Issue advertising typically deals
with controversial subjects. Figure 3.15 describes the reasons to invest in advertisement.
Corporate advertising helps companies communicate their message to a wide audience quickly
and efficiently. All the goals discussed for corporate advertising-increasing sales, enhancing
reputation, and attracting and retaining employees-if met, will ultimately improve a companys
financial situation.
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
Increase sales: Through corporate advertising, companies can draw out features
about themselves that they think will appeal to the public and as a result, make
consumers want to but products from them.
ACTIVITY
1. Define corporate advertising.
2. Why were the organisations invest in corporate advertising campaign?
Pick one ads and write a memo to the vice president of corporate communication
explaining how you would improve the ad based on what you have just read.
3.6 sponsorship
Sponsorship is often used to support or supplement other ongoing promotional efforts, par-
ticularly advertising. The main reason is that sponsorships can provide a base for effective
synergies with other activities such as sale promotions and public relations. Sponsorship can
furnish a unique opportunity to foster brand loyalty at other kinds of events as well. Duncan
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
The use of sponsorship are becoming an increasingly important part of the IMC program of
many companies find them to be an effective way to build and maintain awareness as well as
brand associations and image. Many companies are also attracted to event sponsorships be-
cause effective IMC programs can be built around them and promotional tie-ins can be made to
local, regional, national and even international markets.
3.7 Exhibitions
Exhibitions account for a substantial part of marketing communications budget. For some firm
they may be the most important elements of their promotional activities. Exhibitions are con-
cerned with two main areas of marketing communications: activities directly related to making
sales, areas which relate to more general promotion activities. Some exhibitions are intended
primarily as selling events, where the visitors to the exhibition would expect to be able to buy
good directly from the exhibitions, while other exhibitions (called non selling exhibitions) ex-
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
ist primarily to show the latest development in the industry. Figure 3.18 shows an example of
advertisement of a non selling exhibition.
Set objectives
SELF-CHECK
1. Give two benefits of exhibition.
2. What are the stages involved in planning an exhibition?
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
Learning Activity:
ACTIVITY
Present a written or oral report on the changes that have occurred in the
advertising trend.
Compare conditions in the 1980s with what exist today.
SUMMARY
glossary
Budget - A summary of intended expenditures along with
proposals for how to meet them.
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CHAPTER 3 l CORPORATE COMMUNICATIONS AND MARKETING
reference
Books
Cutlip, S.M, Center, A.H & Broom, G.M, (2000). Effective Public Relations (8th ed.).
New Jersey: Prentice Hall Inc.
Dozier, D.M , Grunig, L.A & Grunig, J.E. (1995). Managers Guide to Excellence in
Public Relations and Communication Management. New Jersey: Lawrence Erlbaum
Associates Inc.
Dowling, G.R. (1994). Corporate Reputations. Strategies for Developing the Corpo-
rate Brand. Melbourne: Longman Professional.
Newsom, D, Vanslyke Turk, J & Kruckeberg, D. (2000) This is PR (7th ed.). Belmont
CA: Wadsworth.
Quarles, J & Rowlings, B. (1993). A Case Study Approach. Practising Public Rela-
tions. Melbourne: Longman Cheshire Pty Limited.
Severin, W.J. & Tankard, J.W. Jr. (1997). Origins, Methods and Uses in the Mass Me-
dia. Communication Theories (4th ed.). White Plains, NY: Longman.
Tymson, C & Shermann, B, (1996). The New Australian and New Zealand Public Re-
lations Manual, Alexandria: Millennium Books.
Web Links
http://www.intranetjournal.com/articles/200510/ij_10_26_05a.html
http://www.revision-notes.co.uk/revision/947.html
http://www.uwgb.edu/clampitp/Corpcomm/CCLecturenotes.htm
http://www.uwgb.edu/clampitp/Corpcomm/CCCases.htm
http://www.corporatecomm.org/resources.html
http://www.corporatecomm.org/research.html
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CORPORATE COMMUNICATIONS AND MARKETING l CHAPTER 3
2. Advertising is a potent communication tool when the offering is not complex, frequently
purchased and has tangible benefits is called __________.
A. target-market characteristics
B. nature the offering
C. integrated marketing communications
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