Marketing Communication as Advertising, Sales Promotion, Public Relations, and Direct Marketing - Case Study Example

Supervisor Marketing Report The Case of Parker Pen Company By: April, 2009 Table of Content 0Introduction 1.1 Overview of the Parker Pen Company Case 1.2 Evaluation of the Marketing Situation of Parker Pen Company 1.3 Marketing Miscalculations made by the advocates of Globalization at Parker Pen 1.3.1 Miscalculations of the Product Policy 1.3.2 Miscalculations of the Target Segment 1.3.3 Miscalculations of Competitors 1.4 Was the globalization strategy sound for writing instruments' 1.4.1 Should the merits of global marketing be judged by what happened at Parker Pen Company' 2.0 Ten Minutes Key Point Presentation of the case. 2.1 Conclusion and Recommendation 1.0Introduction Integrated Marketing Communication is a new approach through which a company draws maximum benefits within a single setting. In other words, it is a new way to give users of the marketing mix an opportunity to make use of all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing a strong force, rather than permitting each to work in isolation (Kortler & Pelsmacher 2003). However, Varey (2001) postulates that integrated marketing is a paradigm shift towards more personalised, customer-oriented, technology-supported marketing systems. Global marketing is marketing on a world wide scale reconciling or taking commercial advantage of global operational differences and opportunities in order to arrive at predefined organizational objectives while creating uniqueness. The current revolution of information and communication technologies is changing our business environment drastically: new technologies influence the way we organize our work and the environment in which we compete, introducing new rules and new relative powers among incumbents, newcomers and even entire markets. This complex, evolving environments are referred to as new technology playgrounds This paper focuses on the case of Parker Pen Company. The first part of the paper provides an overview of the case and the nature of the marketing and communication techniques used by the company, the second part of the paper focuses on some of the miscalculations the company did, that cost them a fortune. The last part of the paper provides the conclusion and recommendation. 1.1Overview of the Parker Pen Company Case The case Parker Pen Company focuses on a key player in the writing industry. It main activities include the manufacturing of writing instruments and are one of the world's best known companies in the domain. As a global company, its products are sold in 154 countries and the company considered itself number one in 'quality writing instruments'. Things didn't work out and remain the way the company had thought and plan as its global marketing and communicating strategies designed and planed at the headquarters cost the company a fortune. The company failed and made huge marketing and product positioning mistakes, they neglected local values and cultures and in all management failed to recognize that, as other one size fit all brands like coca cola, Parker Pen Company with its quality writing instruments cannot be matched and placed in the same domain. Huge other errors and calculations were made and to make matter worst, practitioners and pioneer of the Parker Pen global marketing concepts were fired. A company that was once used as benchmarking models a super hero, and a world class in quality writing instrument became a laughing stock. In global marketing, if cultural and competitive differences are less important than their similarities, a single advertising approach can exploit these similarities to stimulate sales everywhere, and at far lower cost than if campaigns were developed for each. However, the situation of Parker Pen proofs the contrary. The company's marketing department would have acted with respect to different market, for the issue of standardization, one sound, one size as in the situation of coca cola couldn't be replicated for Parker Pen Company. 1.2Evaluation of the Marketing Situation of Parker Pen Company Coca-Cola uses its familiar red and white logos and retains themes of togetherness, fashion joy and enjoyment throughout its marketing communications. The same uniformity is maintained and followed by Fanta, Microsoft, Nike, Sony and host of other companies. What should be the rational behind this' Is it for fun' Integrated marketing communications see the elements of the communications mix 'integrated' into a coherent whole. As the fight of market shares and quest for product success continue, marketers are employing all the necessary tactics, and methods to give their product a break through, or remain competitive (Brennan, Baines, and Garneau, 2003, Rowley J 2004). One way of doing this is through differentiation, making your product outstanding, by having your values and image (Zineldin M., and Philipson S., 2007). This is known as the marketing communications mix, and forms the basis of marketing (Pelsmacher& Kitchen., 2005). Parker Pen Company marketing campaign rested on a one world one market one style fit all approach. The head office centrally planned for the marketing, communication and advertisement on a one size fit all basis where as the product they offer to the market couldn't be standardize to meet up with global marketing. According to Kotabe & Helsen (2005:4) today, in international business and with the proliferation of the Internet and e-commerce, if a business is online, it becomes a global business. More and more people are becoming internet users daily with the market growing constantly. According to Kotabe & Helsen (2005) e-commerce is larger, growing faster, and has fewer geographical distribution obstacles. Parker Pen aught to have maintain but common elements in its global marketing campaign. Items such as the product design and the packaging could have been standardize, however, the marketing communication and advertisement messages aught to have been tied down to local values and cultures. In international business, management has to think globally and act locally. This was the biggest miscalculation the marketing team made with its, push and pull marketing campaign of everything having one voice and one look. The was nothing wrong with the campaign, however the campaign was a misfit for the Parker Pen Company's product which was different from other companies like Coca Cola pursuing the same strategy. The definition of marketing still applies in the same way in international markets as it is in domestic market. However, culture remains a powerful element as it must be carefully watch and incorporated into an organisation values and products, to gain acceptance. The management of Parker Pen Company, neglected local cultures, and values with their quest of one marketing campaign centrally planned in their head office. Schultz et al. (1993), (1998) proposed that any model of marketing communication should analyse what happens with the customer rather than starting with the marketer. By doing so, they argued that communication mix is developed on the basis of (actual, 'natural') customer activity in relation to the brand and not (necessary) marketer activity in relation to the brand. This is the secret behind Coca-Cola marketing mix and other leading brands. However, Coca Cola product mix is standardize where as that of Parker Pen Company is not. This is the company made the biggest communication Backslash. 1.3 Marketing Miscalculations made by the advocates of Globalization at Parker Pen For the greatest communication impact, Kotler (2003) argued that the entire marketing mix (promotion, product, price, and place) must be carefully coordinated for greatest success. This is so because, the product designs, the price, the shape and colour of its package and others within the chain communicate something to buyers. Thus, for consistency and uniformity all these aspects of marketing should be integrated. However, integration of marketing is not about neglecting local values and customs, it is not about one size fit all, but is about making use of the traditional four Ps for consistency and uniformity. Integration of marketing communication activities can avoid confusion and disaffection in the minds of consumers and buyers, offering a comfortable identity to customers and staff. Agencies who support the marketing communication process can take a more holistic and thus strategic stance to their client's business, concentrating on strategic development rather than separate agendas to get a strategic fit (Kitchen. P., 1993).This is the primary function of e-marketing communication in integrated marketing communication. For example, Kotabe & Helson (2004) stipulated that, an organisation language of business may be English; this organisation must have to do business in French language if it intends to appeal to the French consumers and the cultural conditions in France had to be accounted for as well. For example the French market preferred a stylish luxury pens while the Scandinavia market preferred cheap ball pens. The company failed in its positioning and market segmentation as well. The company recognizes that markets around the world consist of similarities and differences and that it is possible to develop a global strategy from similarities and not differences. 1.4 Miscalculations of the Product Policy Kotabe & Helson (2004) state that, in international marketing campaign no one step is as important as environmental factors (Kotabe & Helson 2004). These researchers stated that, in international marketing, taking into consideration of the cultural economic and political differences between countries when designing marketing campaigns. Parker Pen Company products were not designed in relation to different markets. The company failed to develop and market disposable pen, some markets such as the French and Italian Market fancied expensive fountain pens, while Scandinavia was a ballpen market. Had the management and marketing department, taken local and environmental factors into consideration they would have cluster their markets according to similarities and differences using the uncontrollable factors such as culture. Strategies of an organization should well be able to detail themselves as per the needs of the environment while planning for the future. Today, business environment has increasingly become more turbulent, chaotic and challenging than ever before. To survive, it is vital that a firm can do something better than its competitors. Globalisation has not only altered the nature and the intensity of competition but has had to dictate and shape organisations in terms of what consumers wants, how and when they want it and what they are prepared to pay for it. 1.5Miscalculations of the Target Segment According to Peter (2007), a market segment consists of individuals, groups or organizations with one or more characteristics that cause them to have relatively similar product needs (Sommers & Barnes 2004). Markets are partitioned with respect to potential customers. The management of Parker Pen Company can segment it market in any of the following ways; Geographic, Demographic, psychographic and behavioralistic. However, with its global strategy they neglected segmenting the market using behavioural and psychographic characteristics. The markets were segmented not in relation to product variables, such as usage rates, and features desired by the local markets. The management aught to have place products on a continuum or environmental sensitivity. 1.6Miscalculations of Competitors Competition in the quality writing instruments was fierce. In international marketing, to segment the market properly, management need information such as population size. Because of regional differences in consumer's preferences, this kind of segmentation will provide the basis for geographic specialization (Sommers & Barnes 2004). The market could also be segmented into north, south, west and East Europe, with others taking care of the rest of the world. Sommers & Barnes (2004) stipulated that, behavioral segmentation is focused on actual customer behavior toward products. Behavioralistic variables include; usage rate, benefits sought, brand loyalty, user status, readiness to buy. This method of market segmentation has been largely applauded because of its advantage of using variables that are closely related to the product itself. In addition, it is a fairly direct starting point for market segmentation. Thus, within each of the existing divisions customers and would be customers could be classified within these characteristics. Most competitive firm in the industry positioned their product with respect to this market segmentation, and responding to environmental factors. 1.7Was the globalization strategy sounds for writing instruments' The globalization strategy adopted by the company's management was not the best. It was like doing the right thing at the wrong place. Pens were basically the same, but markets were different. Unlike other global brands with standardize features, the Parker Pen brand was difficult to standardize globally, but would have been possible to do so with respect to different market. In the absence of global and standardize features in its product, the company aught to have standardize its product and strategies with respect to local markets. Recent shift and development in the business world in general and marketing in particular has pushed the marketing strategy from mass marketing to target or one-on-one marketing and narrow casting (Simmons., 2007, Schultz and Schultz., 1998, Varey., 2001). Advances in information technology have further made things complicated for companies as they strive to embrace it (Philip K., & Patrick P., 2003).E-communications is increasingly becoming a vital part of the marketing communication mixes as the "Wait & See" are now embracing it. Should the merits of global marketing be judged by what happened at Parker Pen Company' Parker Pen Company needs to be a strict and contingent marketing plan in order to compete in the industry which can well be adjudicated with the help of three interrelated tasks which are-marketing objectives, selection of the target market, and developing the market mix (Peter et. al, 2007). Recognition of an opportunity marks the advent of planning of an appropriate strategic approach by the marketing executive in order to efficiently benefit the advantage of the opportunity. For an efficient marketing plan, the company needs to define the market potential and opportunities should be prioritized. It is preferable to analyze the risks and problems associated with it and then operate according to the management growth by considering each and every facet of the market. Marketing planning is not as intricate as it seems to be. One should well be able to critically think about the strategy to be enforced while clarifying every target and goals to be achieved (Marketing Plan Software, 2008). The management, implemented global marketing strategies, failing to recognize local values and culture as such the values of global marketing couldn't be captured by the organisation. 2.0Ten Minutes Key Point Presentation of the case, This paper focuses on the case of Parker Pen Company. The first part of the paper provides an overview of the case and the nature of the marketing and communication techniques used by the company, the second part of the paper focuses on some of the miscalculations the company did, that cost them a fortune. The last part of the paper provides the conclusion and recommendation. The case Parker Pen Company focuses on a key player in the writing industry. It main activities include the manufacturing of writing instruments and are one of the world's best known companies in the domain. As a global company, its products are sold in 154 countries and the company considered itself number one in 'quality writing instruments'. Things didn't work out and remain the way the company had thought and plan as its global marketing and communicating strategies designed and planed at the headquarters cost the company a fortune. The company failed and made huge marketing and product positioning mistakes, they neglected local values and cultures and in all management failed to recognize that, as other one size fit all brands like coca cola, Parker Pen Company with its quality writing instruments cannot be matched and placed in the same domain. The global marketing strategy implemented by the company's marketing department was a misfit, as subsequent action taken by the company to address the situation cost them a fortune. Part of the business was sold, and subsequently higher cost, made matter worst for management. 2.1Conclusion and Recommendation Strategic advantages are not always achieved by competition alone. Collaboration between potential buyers and sellers and some other dealers turn to be very beneficial and advantageous when negotiation and contracting costs reduces (JSW: 2005:261). I believe by developing and capitalizing on its service minded employees and reliable service, the company stands a better chance to sail through the five forces framework. The company should increasing used partners worldwide to benefit from generic focus and cost leadership strategy. By working with partners in different locations, Parker Pen can gain lasting competitive advantage over its competitors. Because of synergistic gains resulting from such partnership, the company as a whole is greater than the sum of its parts. 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