MARKETING COMMUNICATION
Introduction
(2001) wrote that any business has two basic requirements: marketing and innovation. Marketing assumes the task of guaranteeing the conditions of communication and information that allow demand for need fulfillment to be met through production of goods and services ().
The marketing requirement in a business provides the channel for the services and products to reach the target market. It necessitates creativity and consistent communication within the organization. Communication is vital as it is the way for the exchange of ideas between managers and employees to achieve quality production that would meet demands from the market.
Each company has its own unique way of going about its business. Strategies differ depending on the corporate structure of an organization. Managers and top authority have their own schemes in achieving company goals. Also, the kind of business affects how an organization facilitates its transactions. Private businesses, public entities and non-profit organizations have their own distinguishing characteristics.
Definitions of Private Sector
The American Marketing Association (2006) defines Private Sector as the economic activities that are outside the so-called public sector, or those activities that are independent of government control. They are usually, but not exclusively, carried on for profit.
The Center for Philanthropy and Non-profit Leadership (2006) defines private sector as organizations and businesses that provide services and products based on market demands for a fee with the intention of producing a profit for owners and shareholders.
Definition of Public Sector
The part of the economy concerned with providing basic government services. The composition of the public sector varies by country, but in most countries the public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor. The public sector might provide services that non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service (such as public education), and services that encourage equal opportunity ( 2005).
Definitions of Nonprofit Sector
According to the Research Network (2006) there is no universally accepted definition of the Non-Profit Sector. The conceptual framework established within a vast comparative project coordinated by the Johns Hopkins University since 1990 defines the non-profit sector as consisting of organizations with the following characteristics: (1) they are formal, i.e. they have a certain degree of institutionalization, which generally presupposes legal personality; (2) they are private, i.e. distinct from both the state and those organizations issuing directly from the public authorities; (3) they are independent, in the sense that they must have their own regulations and decision making bodies; (4) they cannot distribute profits to either their members or their administrators; and (5) they must involve some level of voluntary participation by volunteers and/or donors, and they must be founded on the free and voluntary affiliation of their members.
(2005) said that a nonprofit organization is formed for the purpose of serving a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors. Nonprofit organizations are usually classified as either member serving (addressing the needs of only a select number of individuals) or public. They take many forms: Charities- e.g. American Red Cross, Salvation Army, YMCA; Foundations- e.g., W.K. Kellogg Foundation, Ford Foundation, community foundations; Social Welfare or Advocacy Organizations - e.g., National Association for the Advancement of Colored People (NAACP), American Civil Liberties Union (ACLU), National Rifle Association (NRA); Professional/Trade Associations - e.g., Chamber of Commerce, American Medical Association (AMA); and Religious Organizations - e.g., churches.
Nine Examples of Organizations in Hong Kong
1. Cheung Kong (Holdings) Limited
Cheung Kong (Holdings) Limited (Cheung Kong Holdings) is the flagship of the Cheung Kong Group, the leading Hong Kong based multi-national conglomerate. Cheung Kong Holdings is a property development and strategic investment company. It is one of the largest developers for residential, commercial and industrial properties in Hong Kong.
The company also has substantial interests and operations in life sciences and the IT and Internet business arena
2. Hongkong Electric Company Limited
Established in 1889, The Hongkong Electric Company, Limited (HEC) is one of the longest-established power companies in the world. As the main operating company of Hongkong Electric Holdings Limited, HEC has a long record of providing an efficient and reliable electricity supply to its half a million customers on Hong Kong Island and Lamma Island at a reasonable and affordable price ().
3. Aji Ichiban
Aji Ichiban Company Limited was founded by its President Mrs. and Managing Director Mr.in 1993. Currently, it has become a leading confectionery retailer in Hong Kong about 100 shops, over 700 staff, and a turnover of over HK$500 million. Besides this, more than 1,000 kinds of products are provided under the brand of Aji Ichiban. In the overseas markets, Aji Ichiban has more than 150 franchised shops with more than 800 staff, covering China, Singapore, Philippines and the US ().
4. The Hong Kong and China Gas Company Limited (Towngas)
Founded in 1862, The Hong Kong and China Gas Company Limited (Towngas) was the first public utility in Hong Kong. Currently, with more than 3,000 km of pipeline network and an 85% economic reach, the Company supplies town gas to over 1.5 million customers in the territory. Its core business comprises production and distribution of gas, marketing of gas and appliances, and comprehensive after-sales services ().
5. Hysan Development Company Limited
Hysan Development Company Limited is a leading property investment, management and development company in Hong Kong with an investment property portfolio of over 4 million square feet of high quality office, retail and residential space. It is the largest commercial landlord in Causeway Bay owning some 3.8 million square feet of prime office and retail space. It has a sponsored American Depositary Receipts (ADR) Programme, and is a constituent stock of Morgan Stanley Capital International - Hong Kong Index (cited in the company’s website).
6. Sun Hung Kai and Company Limited
Founded in 1969 and headquartered in Hong Kong, Sun Hung Kai & Co. Ltd. operates under the name of SHK Financial Group to better represent our diversified financial services under one umbrella. One of the first approved non-mainland brokers and underwriters in China; we own the most trading rights among all HKEx participants. To meet the diverse financial needs of its broad base of retail, high net worth and institutional clients, SHK Financial Group offers a broad range of financial products and a team of over 800 dedicated professionals ().
7. The Better Hong Kong Foundation
The Better Hong Kong Foundation is a non-political, privately-funded, non-profit organization founded to enhance confidence -- both economic and social -- in Hong Kong. The brainchild of twenty-one leading local business and community leaders, the Foundation was established in 1995. It was the response of a group of committed Hong Kong people to misconceptions about Hong Kong's future as expressed by individual international voices. The Foundation saw a need to share its confidence in the future of the Special Administrative Region with overseas business and political leaders ().
8. Hong Kong Council on Smoking and Health
In 1987, Hong Kong followed World Health Organization's recommendations and formed a central council to co-ordinate measures against tobacco use. The Hong Kong Council on Smoking and Health (HKCOSH) was established under its own ordinance (Chapter 389, Ordinance No. 56 of 1987) and began operating from Central's Wah Yuen Building in October 1987 (cited in the council’s website).
9. The Hong Kong Confederation of Trade Unions (HKCTU)
The Hong Kong Confederation of Trade Unions (HKCTU) represents 170,000 members in over 70 affiliates. Founded in 1990, HKCTU brings together democratic and independent trade unions committed to fighting for the rights and interests of workers. In fighting for the rights and interests of workers, HKCTU participates actively in the pro-democracy movement in Hong Kong. The President of HKCTU, , and the HKCTU's General Secretary, , are both Legislative Councillors, giving voice to workers' demands (cited in the council’s website).
General Statements of Marketing Communication Practice in the Sample Organizations
1. Cheung Kong (Holdings) Limited
Cheung Kong has been able to meet different challenges and opportunities over the years, guided by well-defined objectives and strategies of the management. The company’s mindset is not confined to the traditional set of values and perspectives. It pursues ongoing innovation and improvement, and continues to cultivate a corporate culture based on intelligence and creativity. Cheung Kong is gearing up for the fast-changing environment in the knowledge-based era. It aims to sharpen its international competitive edge with stronger market alertness and responsiveness, better cost control and higher operational efficiency ().
2. Hongkong Electric Company Limited
In fulfilling the mission to deliver excellent customer services and provide a reliable supply of electricity, The Hongkong Electric Co., Ltd., will strive to: exceed customers’ expectations; and excel in quality through continual improvement. To accomplish this, we will: Stress problem prevention rather than simply problem solving; Utilize cost-effective and advanced technologies; Promote a quality culture and empower employees to act; Encourage all employees and contractors to pursue excellence in providing services for the benefits of all stakeholder; and Review and enhance quality systems to international standards and best practices ().
3. Aji Ichiban
Aji Ichiban has been established as a unique brand name specializing in confectionery. In its specialty stores, fresh, hygienic and tasty carefully-selected snacks are provided with reasonable price. Aji Ichiban has about 100 shops in Hong Kong such that our citizens can access it almost wherever they are, and each outlet is carefully decorated to create a dynamic, cosmopolitan, aspiring and approachable shopping environment. Unlike traditional snacks that are often packed in colorful bags, Aji Ichiban packages products in transparent bags, thus enabling customers to watch the products and be aware of how fresh and hygienic they are. To meet the market demands, Aji Ichiban has been taking initiatives in providing a wider range of packaging and product choices. ( ).
4. The Hong Kong and China Gas Company Limited (Towngas)
Our value system defines our approach to corporate governance. Abiding by sound business and ethical principles, we are dedicated to: disclosing accurate accounting and financial information; following Hong Kong laws, listing rules and regulations; benchmarking ourselves against applicable codes and standards; and setting realistic objectives to ensure healthy investment returns and a robust share price. Towngas believes that if we are to remain a socially responsible and successful company, we should be actively involved in charity work through various social investment programs, strategic sponsorships, sharing and caring activities (cited in the company’s website).
5. Hysan Development Company Limited
Creating shareholder value is one of Hysan’s guiding principles as a responsible and dynamic company. We believe that the key to this is not only putting in place a clear business strategy but also implementing it with precision, commitment and passion (excerpts from the company’s 2005 Annual Report available in the website). Hysan will continue to grow its business along the following strategic principles: to continually review the performance of individual properties and improve the quality and value of the portfolio by selective refurbishment and re-development; to further grow our retail sector located in the retail hub of Causeway Bay; to continually focus on the current and future needs of our commercial and residential customers who occupy our space and use our services; to utilize our relationships and financial strength as a competitive advantage in pursuing investment opportunities; to keep risk and return in balance; and to upgrade overall operational efficiency including facilities management, emphasizing good customer service ().
6. Sun Hung Kai and Company Limited
SHK Financial Group (the "Group") is proud of its strong financial base and its policy of openness and integrity with regard to clients, its staff and its shareholders. These attributes are the foundation blocks of clients' confidence. This firm base of financial strength and corporate integrity enables the Group to provide real security for its clients' investment funds. SHK Financial Group's human resources policy pursues the philosophy of commitment to excellence. The watchword at the Group is professionalism. This level of commitment to human resource development enables SHK Financial Group to provide clients with the top quality services they demand. SHK Financial Group believes in and practices prudent management. Without this discipline, the best of intentions cannot be achieved ().
7. The Better Hong Kong Foundation
The Foundation’s work falls under four main categories. First is Independent Facilitator of Discussion and Debate. The Foundation builds alliance with leading academic, media and business leaders around the world. Second is Gathering the Facts through Research. The Foundation is a facilitator for public discussion about economic, business, social and political issues facing people living in a modern cosmopolitan city like Hong Kong. Regional and global interests are brought to Hong Kong through the Foundation-organized visits and speaking engagements by world-renowned scholars and opinion leaders, increasing its awareness as an international city. Third is Bringing Hong Kong, China and the Rest of the World Closer Together. Through a series of The Better Hong Kong Foundation sponsored international symposia, exhibitions, and conferences, global audiences have been able to learn more about economic and social developments in China as well as its key industries and financial institutions. Last is Promoting Togetherness, while Caring For The Community. The Foundation recognizes the contribution made by all Hong Kong citizens and strives to ensure that our activities positively impact the lives of all. Individual members and supporters communicate and explain the Foundation's goals, beliefs and work at community events, seminars and through the media ().
8. Hong Kong Council on Smoking and Health
The purposes of the Council on Smoking and Health (COSH) are informing and educating the public on the harm of smoking and its adverse effect on health; conducting and coordinating research into the cause, prevention and cure of tobacco dependence; and advising the Government, community health organizations or any public body on matters relating to smoking and health. COSH has taken up the role as an active player and commentator on all issues relating to tobacco control. We act within our charter in response to our changing global and local environment ().
9. The Hong Kong Confederation of Trade Unions (HKCTU)
HKCTU and its affiliates engage in a wide range of activities, including industry and workplace organizing, public campaigns, lobbying, workers' education, legal assistance for workers, legal representation in labor disputes, and retraining for unemployed workers. The main priority of HKCTU is organizing workers and struggling for the workers' rights. At the same time HKCTU continues to oppose the current political system as anti-democratic, and is campaigning for universal suffrage and the realization of genuine democratic rights. The pro-democracy struggle of HKCTU includes solidarity with the pro-democracy movement in mainland China, including the struggle for independent trade unions ().
Attributes of Above the line, Below the line, Through the line and Contact Point in Marketing Communication
(2006) argued that in a sense all marketing communication activity is a form of promotion of the interest of the brand, product range and/or company. Below the line activity or marketing is loosely classed as non-media advertising. It is made up of targeted, direct marketing efforts with convenient response mechanisms and that are easy to measure. Examples include database marketing, direct mail, interactive marketing, insert media, promotional marketing (2006), road shows, events and product samplings (2004). Below-the-line initiatives stress targeted and customer-centric communications as well as create measurable results which is important to marketers under growing pressure to prove the value of their campaigns. On the other hand, above-the-line marketing utilizes generic messages to build awareness (2006). Basically if an advertisement is submitted to a publication and a commission is paid to the advertising agency to feature the piece then this is deemed to be ‘above the line’ communication (Lancaster 2006). Above the line marketing channels are those striving to reach mass audiences with messages that reinforce brands, communicate general product information or inspire emotional response. This includes print and broadcast advertising, as well as outdoor advertising and yellow pages (2006). Through the line marketing is done by integrating the above the line and below the line approaches in the marketing program (2006). Moreover, consumers obtain information regarding brands from a variety of sources. They include TV commercials, products themselves, storefronts, the Internet, mobile devices, and word of mouth information passed on from friends. A contact point refers to each and every point of contact that has the potential of becoming effective link between brands and consumers ( 2003). (1994) argued that integrated marketing communication which is a tool used by most modern corporations proposes that each organization should identify all contact point for the company and its products. This can be used to determine where communications can best be used to reinforce the company's messages. There is also a need to measure communications' ability to do so at each contact point, whether it is the product packaging, retail display, shareholder meeting or spokesperson, etc. Organizations should work to ensure their communications efforts are occurring when, where and how the customers want them (p.1).
Persuasion in Marketing Communication
Marketing is persuasion at its core. Companies must persuade individuals or groups to part with one of their most prized possessions – their money. The power of persuasion comes with two kinds of insights: insight into the prospects and customers combined with insight into the products and services ( 2005). One tool of marketing in persuasion is through advertising. According to (2001) advertising has a social role in connecting persons with products and images of well-being, reaching into personal concerns about personal identity, interpersonal relationships, happiness, affluence, stereotypes, sex roles, cultural traditions, persuasion, personal autonomy, the role of business in society, and so on. Advertising is fundamentally persuasion and persuasion happens to be not a science, but an art (). (2006) reported some of the best persuasion techniques namely: (1) the “so what” test. Advertising should not make the consumers express “so what?” after reading it but would make them say something like ‘That’s exactly what I’m looking for. How do I get it?; (2) focus on emotions: fear, greed, guilt, exclusivity, anger, salvation, or flattery; (3) organizations have to show that the price for their product is a ‘drop in the bucket’ compared to the value it delivers; (4) know the audience and understand their fears, needs, concerns, beliefs, attitudes, desires; (5) use a conversational, natural style and speak in language that’s simple and easy to understand; (6) be timely and pay very close attention to goings-on in the news that can be linked to; and (7) build credibility with the consumer by communicating trust.
Propaganda in the Public Sector
The marketing function in public agencies encompasses a number of interrelated exchange activities between the agency and the citizens that it serves. The marketing concept is the belief that the public organization should revolve around the needs of the citizen-customer (market) and that the ultimate goal of citizen-market satisfaction can be achieved through scientific, systematic, and socially responsible marketing (1990). (2004) declared that the skills needed by public sector marketers differ greatly from those in the private sector. The new breed of public sector marketer needs to be an educator. Public sector chiefs must understand that the correct use of marketing by the right people can transform the internal corporate culture into a more driven, dynamic and exciting culture to work in. (2005) cited that marketing function continuous to grow in the Canadian public sector and developed socialized applications. Successful applications include international marketing of Canadian public sector expertise, (a highly respected "product" for many other countries); sponsorships, licensing and partnerships; compliance management which is responsible for the change in attitude by some revenue departments from an emphasis on enforcement to helpful facilitation; the recruiting of marketing professionals by federal organizations; the coalescence of a community of marketing practitioners spread across the wide variety of federal organizations, as a result of the increasing recognition of the function and the professional expertise it involves; and the establishment of a Secretariat for the community.
Issues Management
(2006) stated that in any business enterprise, there is an ongoing process of aligning corporate behavior with stakeholder expectations. Issues become issues when this alignment is missing. But through a process of identifying issues early, prioritizing them, and closely monitoring their evolution, issues can be managed – either by changing the company’s behavior or its stakeholders’ expectations, or both. This process is termed issues management. Issues management as defined by (1999) is the organized activity of identifying emerging trends, concerns or issues likely to affect an organization in the next few years and developing a wider and more positive range of organization responses toward the future (p.1).
The Groundwater Remediation Project of the Department of Energy Hanford Site in Washington, USA (2006) stated that the key objectives of issues management are to: define the process whereby issues are identified, evaluated, prioritized, assigned, reviewed, and dispositioned; establish a method to communicate the content, status, and disposition of issues; and identify technical data gaps and needs that should be considered for future work scope to resolve the issue. Issues Management has eight steps: Identification of issues that could arise because of the client’s industry or its scale; Prioritization/Classification of issues identified according to significant damage to the client’s reputation or business operations if not managed effectively; Monitoring on how the issue is evolving, on a monthly or even daily basis; Preparation of a devise plan to anticipate the course of the evolution of the issues; Action to Influence Issue or undertaking steps to change the course of an issue’s progression; Issues/Crisis Response which means the reaction of the company to the issue that threatened the company’s ability to conduct business; Evaluation of lessons learned and the impact of the response made by the company in preventing the emergence of a crisis; and Re-classification of the issue’s severity and if it is still a concern moving forward for the company (2006).
Crisis Management
(2005) stated that today’s business environment requires a robust, enterprise-wide plan to deal with unexpected crises. Company reputation and brand, as well as the trust and loyalty of stakeholders, are all critical factors in the background of crisis management (). Crisis management is a relatively new field of management. Typically, proactive crisis management activities include forecasting potential crises and planning how to deal with them. Crisis management in the face of a current, real crisis includes identifying the real nature of a current crisis, intervening to minimize damage and recovering from the crisis. It often includes strong focus on public relations to recover any damage to public image and assure stakeholders that recovery is underway ( 2003). According to (1990) while any individual crisis mandates some customized responses, preparation can be divided into ten basic steps which include identifying the crisis management team to be led by the chief executive officer with firm’s top marketing or public relations executive, as the chief adviser; identifying the spokespersons who will speak for the company in times of crises; training the spokespersons to teach them to be prepared to respond in a way that maximizes the chance of a story being reported the way the company wants it to be; establishing communication protocols to determine the right persons to be notified in case of emergencies; identifying the audiences that matter to the firm like media, employees, clients, prospects, and vendors; anticipating crises thru brainstorming of potential crises that can occur in the business; assessing the situation and ensuring that the team receives all information and the right information is being provided; identifying key messages about the crises that the company wishes to deliver to the audiences; deciding on communication methods to be used during an internal or external crises; and riding out the storm or assessing the audience’s reaction to the crises and what the company can do about it ().
Change Management
With globalization of the economy, companies face a greater number of competitors, each one of which may introduce product and service innovations to the market. The rapidity of technological change also promotes innovation (2004). (1999) said that in today’s type of industry, organizational survival will depend upon a firm’s ability to engage in rapid and continuous change. (2002) argued that effective change management is essential for a successful diversity initiative. A manager that champions diversity will need to skillfully manage change in a number of areas. The two most critical areas are workplace systems and communications practices. Further, managers may also need to look within themselves to engender the personal changes that contribute to success (p.1). Successful managers provide clear responsibility and priorities with extensive communication and freedom to improvise; enhance learning about future possibilities by experimenting with ideas; and link current projects to the future with predictable intervals. The leader must work at getting large numbers of people involved in the process of change in order to avoid resistance. The skill becomes the creation of a system or organizational culture that is neither too rigid nor too chaotic ( 1999).
Strategic Management
In a competitive corporate world where change is inevitable, organizations need a planning model that allows the management to anticipate the future and to use this anticipation in conjunction with an analysis of the organization – its culture, mission, strengths and weaknesses. Strategic Management is a technique which an organization can use to create a favorable future and help the organization to prosper ( 2003). (1997) wrote that strategic management combines strategic planning with the implementation and evaluation of progress. It is a tool for identifying the right things to do, focusing a community or organization on those things, measuring progress, and continually adjusting plans and strategies to achieve a community's or organization's vision (p.1). The building blocks for a comprehensive strategic management model are external analysis (focus on the threats and opportunities the external environment which comprises the social, technological, economic environmental and political trends present to the organization), internal assessment (organization’s capacities, resources, future needs and a complete list of strengths and weaknesses), strategic direction (vision, mission and goals of the organization), strategic plans (documented, specific courses of action that define how to deal with critical issues, implementation (execution of selected courses of action and ongoing motivation within the organization), and performance evaluation or the comparison between actual results and desired results (2003).
Ethics
(2003) reported that companies can have a substantial impact on the lives and well-being of citizens through their services and products. This entails moral and legal obligation to protect and preserve the environment and their market and they should therefore avoid doing unfair labor practices. However, some experts believe that the responsibility for maintaining an ethical environmental is up to the management. Managers are expected to set up an ethical example through leadership; set up realistic goals by going down to the field with the people who are talking to the customers and find out what goals are realistic; provide ethics training; and distinguish compliance and ethics ( 2005). Mead (2002) argued that having a company code of ethics is valuable, but only when that code is communicated consistently throughout the firm, and when the company’s actions are consistent with the code. To make the code effective, as a model, it must be baked into the culture of the firm and the company’s ethical culture should be formally challenged and regularly evaluated, so as to anticipate problems before they become untreatable. The cornerstone of an ethical organization is open communication between employees and managers, in both directions and between all levels, because it helps people feel valued, as individuals ().
Conclusion
Marketing communication is valuable in any organization, whether it is mandated by the government to address the needs of the citizens, provides services or sells products to earn profit, or it functions for the well-being of its members and the society. Marketing communication provides a structure for an organization on how to effectively make the market and public aware of their cause. The marketing function connotes various aspects and is not mere promotion through advertisement or company-initiated displays. Numerous factors have to be considered by an organization such as labor laws, company goals, changes in the market structure, and other concerns that may arise from time to time. Thus, organizations are often faced with difficulties in carrying out their marketing strategies. The key is for the managers and employees to know the context and structure of their company, devise strategies within this context, implement strategies that would promote progress for the organization, its clients and stakeholders and the society as a whole, and carry out specific tasks and schemes in accordance with established laws and social norms.
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