MARKETING COMMUNICATION

Marketing Communication of Burberry



Marketing Communication of Burberry

Introduction

Marketing Communication is a terminology used for conveying messages related to media to the market. It comes under the promotion part of the marketing mix. Areas like advertising, direct marketing, designing, promotion, publicity all comes under Marketing Communication. It is one of the most important marketing aspects of the company. It plays a very significant role in enhancing the image of the company. It is important for the media and other stakeholders to know about the operations and activities of the company through marketing communication of the company.

Discussion

Most practitioners would agree that the benefits of current marketing communication activities are realized, in part, in the future. Advertising and promotion are, therefore seen as an investment having future benefits to the firm. Indeed, philosophies such as DAGMAR (i.e., Defining Advertising Goals and Measuring Advertising Results) treat marketing communication expenditures like an investment, with expected monetary payoffs that accumulate in the future. This perspective is consistent with that of marketing communications as a market-based asset. Assets are, by definition, any economic resource that is capable of producing cash flows, either directly or indirectly, or alone or in combination with other assets (Duncan, T, 2005, pp. 5-6.). According to Srivastava, Shervani, and Fahey (1998), market-based assets, as opposed to “book,” or recorded, assets, are primarily external to the firm; that is, they result from interactions with customers or other market members rather than from tradable firm holdings. Marketing decisions, therefore, create the advertising and promotion asset by enhancing current and future customer interactions. This effect has been observed in the marketing literature for variables such as perceived product quality, brand attitude, and Internet and channel additions, but not for marketing communications.

Meanwhile, business and finance scholars have been able to link advertising and promotion expenditures to firm performance, indicating that the expenditures not only increase a firm's market position but add future value to the firm. This is a significant finding because it indicates that advertising and promotion not just has value in the period in which the expenditures are made but also contributes to the future profitability and market value of the firm. Conceptually, marketing communication improves consumer awareness and preference for a specific brand, which in turn improves brand sales and market share. Telser (1978), who contributed to a series of essays on “the economics of persuasion,” argued that advertising has economic (asset) value because both senders and receivers benefit from the exchange. Senders (firms) benefit to the extent that promotion adds customers for new products and reduces forgetting rates among existing customers. Receivers (consumers) benefit from an increased “stock of knowledge” that helps them makes quicker and more efficient purchases. According to Telser, the relationship is partly self-evident: “there must be a mutual benefit or the communication will not occur” (p. 76).

Albion and Farris (1981) rely on the classic hierarchy of effects model as the theoretical mechanism behind the asset value of advertising and ...