Critical Issues Facing Steve Madden Ltd - Essay Example

? Professional Application Lecturer: The research paper analyzed critical issues facing Steve Madden Ltd. and revealed various issues that need to be addressed in the IMC campaign. The researcher also identified critical challenges including economic, competition and communication ones. The project outlined some of the communication objectives and communication campaigns that categorized audience in terms of demographic, geographic and psychological factors. Some of the selling ideas were analyzed and the key benefits for major selling ideas were revealed. Various communication objectives were provided and the research analyzed the targeted market. The research provided the major selling ideas and also included the key benefits. Lastly, the researcher included a brief conclusion, which was a short summary of the research paper. Professional Application Introduction Steve Madden, which is a recognized footwear brand, faces challenges that need to be addressed in the integrated market communications (IMC) campaign. The choice of a product promotional blend requires an effective communication to the target market or audience; thus, it should be integrated well in the communications strategy since there are a number of techniques available in the market. Barger and Labrecque (2013) attempted to reveal the significance of integrated marketing communications as a marketing strategy for increasing organizational sales; hence implementing communication objectives is imperative. The paper has analyzed critical issues facing Steve Madden and revealed what needs to be addressed in the new campaign. Part 1: Background Analysis There are various critical issues facing the company, which need to be addressed in the IMC campaign. One of the main fascinating problems in many companies is the implementation of communication messages, which is poorly done by most marketers. Many companies fail to create an appealing message for advertising their products in the ever competitive business world; thus, they fail to achieve their business objectives effectively. Advertising is one of the effective business strategies for meeting the demanding needs of the targeted market and increasing the sales of the company. Thousands of companies have attempted to incorporate technology in the business process, such as the use of social media services such as Facebook, Twitter and many others; however, most of them have ended up failing due to poor communication messages. Hartley and Pickton (2000) argued that an integrated marketing communication requires a new way of thinking in order to achieve the demanding needs of the targeted customers. Therefore, the IMC campaign will address aspects such as the significance of developing an effective advertising strategy, need for defining advertising objectives, and setting advertising budgets in order to meet the demanding needs of the organisation efficiently. Another critical issue that faces the company and should be addressed in the IMC is competition. Competition is one of the major challenges impacting organizational performance in many industries across the globe. Among the major competitors of Steve Madden are Nike, Nine West and BCBG which also target diverse customers in the competitive market. However, the competition issue will be addressed and the audience will be informed about the ways of competing with their rivals in the competitive market. One of the effective ways of competing with the competitors is by using an effective pricing strategy, product promotion strategy, or differentiation strategy. Employing Porter’s five forces analysis that shapes the industry’s competition is vital because these forces can enable the company not only to determine their profitability but also achieve a competitive advantage. Lastly, the company also faces economic challenges due to the economic downturn of 2007 to 2008. The economic problem has contributed to increased rates of unemployment levels and the overall slow growth in the company; thus these challenges will be addressed in the IMC campaign. The high costs of labor and increased technology advancement are among the aspects of economic challenges that will be addressed in the IMC campaign. There is a need to expand the industry and offer significant training programs in order to enable employees to become productive. Part 2: Creative Brief Communication Objectives Communication objectives are significant because they serve as the benchmark for sending information to the public about products and services offered in the market. The objectives should be realistic and marketing objectives should be translated into communication objectives; therefore, a situation analysis will offer valuable information about communication objectives. Finne and Gronroos (2009) pointed out that marketing communication should have clear objectives, which are attainable and measurable. The following are some of the communication goals that the corporation will employ. To increase sales by 10 percent through creating brand awareness for the company. To encourage consumers from the targeted market to purchase products from the company, through employing a cost leadership strategy. To segment market into various group characteristics through employing media strategies or tactics in advertising in order to increase customer involvement with the brand, thus increasing sales. To employ effective selling ideas that can enable the company to increase their sales in the competitive business environment. Target Market Target is very significant for marketers because it helps them to select communication media and effective channels for delivering their brand message. A target market builds brand commodities that suit the needs of diverse groups of consumers and prevent wasteful time coverage. It can also enable the company to create and deliver an effective message to a particular consumer group. The communication campaign will categorize audience in terms of demographic factors such as age, sex, religion, education, culture and many others; therefore, the CIM will target a wide range of people including kids, women, and men. The major core market segment for the campaign ranges from 16 to 45 years of age: girls aging 6–21 years and men aging 20–40 years. It will also target older women and men of 55 years and above. It will categorize consumers in terms of geographic and psychographic factors such as the lifestyle and beliefs of the audience. Major Selling Ideas Many people have great marketing ideas for brand products and services but lack means of getting them to the market. It is vital to employ and define effective marketing ideas in order to enable the company to increase its sales and revenues. One of the significant selling ideas is creating a patent for brand products that are distributed in the market. Copyright or patent rights are significant because they create brand awareness and protect the company from stiff competition. The use of patent rights as a selling idea will enable the company to increase brand awareness by 10 percent, thus enabling it to achieve its intended objectives of increasing sales effectively. Secondly, the company can create its websites and blogs and utilize social media sites for product promotion in the market. The use of the Internet and other social media sites are vital because they can enable the company to reach many sellers across the globe within the shortest time possible (Barger & Labrecque, 2013). For instance, a direct mail will be sent to diverse clients by utilizing a mailing list delineating the aforementioned market segments, which are residing within 50 miles of the store. Lastly, direct marketing tactics will be employed in order to increase sales, and one of the significant examples is the Easter event because this is a costlier option, which provides the best opportunity for brand awareness and creates publicity of the company throughout the community. The expectation is to increase product sales to the specified percentage; thus, the use of exhibitions for product promotion will be employed to meet the demanding needs of consumers effectively. The use of a direct marketing strategy is vital because it allows for a more accurate measure of effectiveness of the IMC than any other tactic (Hackley, 2010).  Key Benefits The target market should consider the major selling ideas as significant because such ideas including the use of patent rights will protect the company’s new brand from infringement by other companies. This is vital because brand protection will enable the company to increase its sales and achieve a competitive advantage in the market. Another benefit of using selling ideas, especially the use of social media networking sites, is that the company can reach many customers in the shortest time possible in many geographical areas. The use of direct marketing tactics is also beneficial to the company since it can offer it an opportunity for the raising of brand awareness. Conclusion In conclusion, the research analyzed critical issues facing Steve Madden and revealed what needs to be addressed in the new campaign. One of the most fascinating problems in Steve Madden is the formulation of effective communication messages when employing an advertisement strategy. Other critical challenges identified in the project included competitive issues and economic challenges. The research outlined some of the communication objectives and the communication campaign categorized audience in terms of demographic, geographic and psychological factors. Some of the selling ideas and their key benefits were examined. References Barger, V. A., & Labrecque, L. I. (2013). An integrated marketing communications perspective on social media metrics. International Journal of Integrated Marketing Communications, 5(1), 64–76. Finne, A., & Gronroos, C. (2009). Rethinking marketing communication: From integrated marketing communication to relationship communication. Journal of Marketing Communications, 15(2/3), 179–195. doi:10.1080/13527260902757654. Hackley, C. E. (2010). Advertising and promotion: An integrated marketing communications approach. Los Angeles: SAGE. Hartley, B., & Pickton, D. (2000). Integrated marketing communications requires a new way of thinking. Journal of Marketing Communications, 5(2), 97–106. doi:10.1080/135272699345699. Keller, K. (2001). Mastering the marketing communications mix: Micro and macro perspectives on integrated marketing communication programs. Journal of Marketing Management, 17(7/8), 819–847. Read More