How Marketing Communications Influence Brand Equity

DISCUSS HOW MARKETING COMMUNICATIONS INFLUENCE BRAND EQUITY

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How Marketing Communications Influence Brand Equity 

Introduction

        In the current globalized economy, marketing communications play a critical role in persuading potential customers as well as maintaining the existing customers to buy the products and/or services of a particular firm. According to Egan (2007), marketing communication strategy is an approach or the path an organization chooses to communicate with stakeholders and customers. It involves the development of a series of informative and persuasive messages necessary for presenting relevant issues to the target audience. However, marketing communications is much more significant since it contributes to the development of a firm’s brand equity (Duncan 2002). In the current globalised economy characterized by fierce competition and high dynamism, organizations are looking for innovative ways of communicating with their stakeholders and clients. They also ensure that all their marketing activities are humanly as they persuade the clients of their products and services as well as the benefits that clients gain from their offerings. Therefore, communication is a fundamental aspect of marketing and a critical success factor for any business. Companies use diverse forms of communication in order to achieve non-profit and financial targets. This paper focuses on how marketing communications can influence brand equity. It also presents the concept of brand equity, both from the market and financial perspective and the relationship between Marketing Communications and Brand equity. In discussing these aspects, the author would have outlined the link and influence of marketing communications on brand equity.

Understanding Marketing Communications

Marketing communications is a concept that resulted from the incredible development of marketing in the 20th century. Marketing communications, sometimes known as Integrated Marketing Communication (IMC), refers to the critical strategic processes that link an organization’s product/service offering and its targeted consumers (Kimmel 2005). According Egan (2007), marketing communications is the means by which the suppliers of products or services represent themselves to their target market with an intention of enhancing dialogue, which leads to healthy commercial or other relationships. In the same context, Fill (2009) points out marketing communication to be an important management process through which an organization links with various audiences. Based on these definitions, it is quite clear that marketing communications are very critical in enhancing the relationship between a firm’s product and its customers. Given that consumers play a vital role in any organization’s external environment, it is imperative to ensure that they are confident and satisfied by what is being offered. IMC is essentially part of the marketing mix, which is a range of tools or activities available to a firm to communicate with its audience on matters that influence the marketing performance (Pickton & Broderick 2005). The tools or activities involved in marketing communications include sales promotion, advertising, personal selling, public relations and direct marketing.

A few years ago, a significant portion of marketing budgets went to advertising. Currently, businesses have transformed, and much of the money is allocated to various activities such as branding, consumer promotion, public relations, advertising, social media, and trade promotions. This is subject to the recognition of the importance of integrated marketing communications for effective marketing in today’s volatile markets. Marketing communications is one of the most critical communication trends adopted in contemporary companies (Egan 2007; Johnson, Scholes & Whittington 2009). The emergence of this concept has not only influenced strategic thinking and operations among private companies, but also in government owned companies, which are all faced with the challenges of competition in the open market (Fill 2009). Marketing agencies are focusing on integrating their procedures, messages and communications within formal business boundaries. The advancements in Information Technology (IT) have fundamentally influenced the traditional media practices by contributing to the deregulation of economies and consumer consumption patterns. IT has also improved the segmentation of consumer preferences or tastes. The pillar has been product value and various combinations of methods have been employed, all cente3red at raising benefits of minimizing costs (Kliatchko 2008).

Firms can be considered as being legitimate if there is consistency between procedures, messages, behaviors, words and deeds (Lynch 2008). This calls for an understanding of the importance of Integrated Marketing Communication. According to Fill (2011), marketing communication recognizes the importance of a comprehensive plan that assesses the strategic roles of various communication disciplines and integrates these disciplines to optimize communication impact, consistency and clarity. Kimmel (2005) considered marketing communication as a combination of general advertising, direct marketing, public relations and sales promotion. The ultimate role of marketing communication is to convey a consistent and clear message to customers or prospects. Effective marketing communications strategies facilitate companies to effective implementation of promotional resource and to establish long-term sustainable customer relationships (Fill 2011). This concept is increasingly being accepted by various firms due to a number of benefits. Initially, mass media was thought of as useful and viable. However, in the current market, it is considered ineffective due to the unpredictable target audience and high cost. The current market trends call for precise promotional methods such as the internet, cable TV and direct emails. In fact, almost all companies are shifting to the cyber space by implementing Information Technology (IT) in promotional activities. These current initiatives in IT have facilitated buyers and sellers to establish and maintain an effective customer relationship management (Fill 2011).

IMC represents a combination of all marketing approaches, resources and tools within an organization which optimizes the impact on the audience’s mind and which results in maximum profit at minimum cost. Typically, marketing starts from the Marketing Mix and includes direct marketing, sponsorship, database marketing, direct marketing, public relations and internet marketing (Schultz 2004). The integration of these promotional tools or activities along other aspects of the marketing mix to achieve a competitive advantage over competitors is known as Integrated Marketing Communication (Shimp 2003). The fundamental objectives of any marketing communication frameworks are to deliver information, educate the market, create brand awareness and promote a positive image of a product brand. Therefore, marketing communication is a product to developing brand loyalty by developing brands that deserve loyalty (Thompson & Martin 2005).