Integrated Marketing communications used by HP

Integrated trade communicatings utilise by HPThis case study analyses the selling talk theories adapted by Hp as it progressed to being the worlds issuing one pc manufacturer in 2007. Its emergence as a global union in 1957 opened a window of opportunity. The theories credited bequeath aid in forming a combination of the make concepts utilise by Hp for its global bid to increase node loyalty and boost gross gross sales. A number of practises ar seen to energize substantial along various confabulations and marketing theories. However, critical compend of Hps 63- year development will show a lack of adherence to some(a) very personaable models by some academic scholars. A viable description of marketing with incumbranceive communicating was make by Smith (2002), strategy of choice in a competitive environment is proactive, twain -way communication, in which organisation plan for and initiate relationships with the people important to their success, violencei ng dialogue over monologue and employ various techniques to int successionct with their unexclusives.BackgroundHewlett Packard, known as HP, is an electronics producer which was founded in 1939 in California by Bill Hewlett and David Packard. Since its birth the confederation has gained prominence around the world, becoming a major leader in the industry of electronics and technology.Early product designs produced by the comp either include inventions such(prenominal) as the resistance-capacitance audio oscillator named influence 200A. It is the manufacturing of products such as the Model 200A that dupe shaped the future for technology and helped pioneer many of todays products.In 1966, HP introduced the worlds first electronic computer. In 1968 the telephoner then unvei conduct the first desktop scientific electronic computer and named it the ad hominem computer (PC). It was this event which boosted HP in to master(prenominal)stream significance during the 1980s and bec ame leading players in the expert industry. This was established in 1995, when HP entered the home computing market.In 2001the phoner merged with Compaq forming HP Compaq. This coalition determined efforts were made to further establish the station as a leading company in the IT and computer industry. This was done by aggressive marketing tactics done through the concept of Integrated Marketing Communication (IMC).1. Critical evaluation of the role of integrated marketing communications in the success of Hewlett-Packard since 2001Joep cornelissen (2008) commentary of bodily communication is as followsCorporate communication is a trouble function that offers a march work for the effective coordination of any internal and external communication with the overall purpose of establishing and fighting favourable constitution with stake holder groups up on which the organisation is dependent.But using of this approach is non perpetually good as some critics whitethorn say d espite of 20 years of debate nigh practitioner still see that integrated marketing communication is emerging discipline (eagle and kitchen 2000) rather than to the full formed concept. worry many other concept that fork verboten yet to fully develop it is unfastened to fully varying and some times colourful shapeinology. Thus 360 branding, total branding , whole egg, line of products less communication, new announce, orchestration, relationship marketing, one to one marketing, integrated marketing and integrated communications (Pickton and Broadrick 2001) have all been used to describe all or quit of integrated marketing communications concepts promoting the frisson that integrated marketing communication is yet a nonher fad. What most observers agree on is that integrated marketing communication is good idea plainly very hard to implement in practiceLike all companies, HP is a company whose primary aim is to make a pro function. However whilst this is a common company g oal, in that location ar still necessary meltline which should be followed in fiat to achieve this. Fill (2006) recommends that the process of developing corporate strategy demands that a series of plainlyts be come in at different levels within an organisation.Grunig et al (1992) states that two-way communication, a form of communication which is also upright by PR practitioners, is a helpful tool from which a mutual run across can be developed amongst stakeholders.One of criticisms of HP was that the company was focused more(prenominal) on the advancement of technological innovation. The corporate interpret of the company was seen as being obsessed with sophisticated progression and undermining the value of its customers.Shutz et al (1992) cited in Clarke (1997, pg 93) states that such actions are damaging to a company and that customer based communication essential be practiced at all times.You can non depend on the product alone to frame of reference consumer co nfidence. Its the rapport, the empathy, the dialogue, the relationship, the communication you establish with the customer that makes the difference. These separate you from the pack.For all of HPs sophisticated output and diverse range of products, its market mystify was infringed through a lack of market seek and poor internal organisation.Smith (2002) refers to the work of tomcat Harris, who is a leading advocate of integrating communications. He describes integrated communications as an outside-in process that begins with an intelligence of the consumer cosmoss, itemly their wants, interests, needs and lifestyles.Fill et al (2001), however, argues that many practitioners deliberately persuade a target auditory sense to behave in a particular way, while others persuade them. In whatever instance it expertness be, understanding the customers needs, which may in turn change their behavioural pattern, is not a necessarily mischievousness evil. Hp deliberately changed their c ommunications strategy to affect the buying behaviour in their customer through effective brand hightail its that brought mutual satisfaction to both consumer and HP.Clarke (1997) explained that for consulting firms to effectively handle marketing and communications they moldiness reflect the overall objectives of the organisation. Todays market calls for a strategically integrated approach to marketing communications. Hp would have to reorganise its marketing communication s division in to one that is coherent to attract customers. Oliver (2001) delineate this as the system Theory - which she said evaluates the relationship and structure as they relate to the whole. Market search builds the right perception and recognise the needs and behaviour of current and future customers evident in the possibility of cognition.The history of HP showed there was lack of strategic planning and changes on marketing and communication structures were needed. During 1960s, consumers plausibly di d not know any better or did not have a chance to contain and this could force them to adhere to HP products. However, now a days Kotler et al (2008) affirms consumers receive thousands of information per day.In this context, in 2002, HP realized that the company needed to invest in its corporate image. So, the company launched brand advertisement campaigns. In 2006, they hold the Computer is own(prenominal) again, which had focus on personal relationship that commonplace have with its computers. By analysing the competitors, this campaign was based to convince customer that the best way to buy a PC was in a retail shop, where they could touch it. This was an opportunity to differentiate from its main competitor Dell, which has a strong internet sales record.Fill (2009) believes that the marketing segmentation is necessary to meet the consumer need and to have a utilitarian and competitive-level strategy. The Computer is personal again campaign was structured to appeal to earl y generation, which the company believed to be customers with similar needs and responses. HP targeted the youth market and typeset itself as a customer loyal corporation. In this scenario, the marketing communication strategies combined channels online and offline and integrated all marketing efforts such as PR, sales, advertisement. Shimp (2000) states that amalgamateing marketing communication elements is decisive to achieve the target public and a item objective. Also. HP emphasized advertisement and sales promotion in order to maximize the sales, creating a synergetic effect. Undoubtedly, every channel used by this campaign had a consistent pass along, which complemented each other. Cornelissen (2008) says the company should hand on on-going basis and themed messages strengthen perceptions of how an organization wants to be seen.Marketing desegregationHolm (2006) states that Smith (1999) developed a tool, from which there are seven levels through where marketing integ ration can occur. Holm says these seven levels areVertical objectives integration It means that communication objectives fit with marketing objectives and the overall corporate objectives.Horizontal/functional integrationMarketing communications activities fit well with other business functions of manufacturing, operations and human imaging management.Marketing mix integrationThe marketing mix of product, price and place decisions is consistent with the promotion decisions, e.g. with the indispensable communication messages.Communications mix integration. exclusively the 12 communications tools are being used to guide the customer/consumer/client through each stage of the buying process and all of them portray a consistent message. productive design integrationThe creative design and execution is uniform and consistent with the chosen positioning of the product.Internal/external integrationAll internal departments and all external employed agencies are working together to an agre ed plan and strategy.Financial integrationThe budget is being used in the most effective and efficient way ensuring that economies of scale are achieved and that long investment is optimized.Let us examine personal again campaign at each of these seven levelsVertical Objective consolidation level of coordination between communication objective, corporate objective and marketing objective..Corporate objective Customer loyalty, profit, growth, market leadership, commitment to employees, leadership capabilities and global citizenship. (Source www.hp.com)Marketing objective To increase market share, compete with Dell, target early days generationCommunication objective direction on personal relationships to PC and show consumers the different tasks made possible by HP technologySynergy can be seen among these objectives. All advertisements were base on same theme where celebrities from different field were talking about how HP PC and technology is part of their life. Faces were not s hown in any of the commercials and focus was on different tasks that HP makes easy. It reinforces customer loyalty which is corporate objective of HP. Advertisements in this campaign were appealing to young generation and through social media viral effect HP reached new customers which were otherwise non-respondent to traditional media, thus increasing market share.Horizontal/functional Integration fit of MarCom and business functions like operations and HRMHP had strength in selling through retail stores in consumer segments rather than selling online which was Dells core competence. New campaign communicated that PC is a commodity which is refinement anyones personal life, its a part of life rather. It pushed customers to visit the nearest retail store to touch, feel and deal how HP technology can be useful to them.Marketing mix integration How well the promotion (with communication message) goes with the other 3 Ps of marketing mixAlthough the general theme of the campaign was planetary throughout the 100 countries where HP was doing business, some variation can be seen fit to place and price. For congressman in India personal again campaign was supported by Business is Personal Again campaign that targeted SMEs. Although the basic theme remained unchanged, local anaesthetic celebrities and eminent personalities were used for promotion in particular places.Communications mix integration Different communication tools portray a consistent messageEvery channel used to communicate message delivered consistent message. TV commercials, internet promotion, PR program, newspaper, billboards, reality shows etc. whichever medium was used for MarCom in personal Again campaign was complement to each other and had same tone/message.Creative design integration creative design is in accordance with the positioning of the productWith this new campaign HP wanted to acquire a trendier brand image. They wanted to target youth market and position itself as a consumer loy al company. Personal again campaign was very much on the line. It relied to a great extent on animations. Hand gestures were used to convey connectivity, assurance, and aroused connect. Celebrities shown in the commercial were those, who are followed by young generation. Events which were of special interest of youth, like Super Bowl and reality show meet or efface were focused for marketing communication.Internal/external integration Internal departments and external agencies work in synergy fit to an agreed planPersonal Again campaign was designed by GSP, which is HPs advert sanction since 1996. All previous campaigns were also handled by same agency. Although not much evidences about the extent of coordination of HP and GSP are provided in the case but because of this long period of relationship mutual effrontery and understanding between both can be expected.Financial integration efficient utilization of budget ensuring long-term investment optimizationNot sufficient info rmation is provided in the case about budget storage allocation of Personal Again campaignAlso, HP used celebrities in its advertisement in order to emotional connect the public. Fill (2009) citing Patzer suggests that the physical attractiveness of the communicator, particularly if it is the source, contributes significantly to the effectiveness of persuasive communications (Patzer in Fill, 2009, p.43) Celebrities from different field expressed how PC makes their lives easy. The identification of young people with celebrities encouraged the sales and beef up customer loyalty. The brand value of HP increased 9% after the campaign. The celebrities enables the message to stand out among the clutter and noise that typify many markets (Fill, 2009, p.509). This concept was used by HP to persuade the sales and making the product more attractive to the target public through association with MTV channel. However, Fill (2009) adverts there are two main concerns about the use of celebrities on campaigns. The first one is if the eminence fit in the image of the brand and if they will be acceptable by the target audience. The other is that the public may remember the celebrity, but not the brand.The use of celebrities and the creation of a realty show happen or delete on the campaign Computer is personal again influenced the consumer behaviours as it motivate them to buy. Dibb et al (2001) say there are several factors that can persuade a purchase such as personal, psychological and social influence and describe motive as energy giving a persons activities towards substantial a need or where achieving a goal (Dibb et al, 2001, p.133). Shimp (2000) affirms that advertising may influence consumer to buy items they may not need. The consumer buying decision process has 5 stages problem recognition, information search, evaluation of alternatives, purchase and post-purchase evaluation, according to Dibb et al (2001). HP created awareness to young people by offering a PC n ot as commodity, but as extension of person life. The buzz generated by launching first videos on the internet and after in TV made consumer looking for more Knowledge about the product. However, the main goal of this campaign was to interact with consumers, which could be helpful in the post-purchase evaluation phase as customers could trust that HP would be there if they need anything.Instead of creating a campaign to compete directly against Dell, HP could have done a public relation strategic planning. Smith (2002) citing Al Riel and Laure Riel explains that The purpose of advertising is not to build a brand, but to defend a brand once the brand has been strengthened by other means, primarily public relation (Al Riel and Laure Riel in Smith, 2002, p.9). A PR plan could range and evaluate the organization viability and reputation, where a mutual beneficial relationship between company and consumer could be build, according to Smith (2002). The lack of market research and plann ing were the main problem of HP. By realizing a hit analysis, the company could have set clear objectives and develop a marketing and communication targets that would be the mental home for a nine steps strategic public relation plan. This plan would be beneficial to HP as company goal would be based on research and evaluation. Also, it would allow the HP to proctor the competitor as a point of reference.HP used or could potentially use the next marketing tools to aid their Personal Again campaign.CategoryCommunication ToolMediaBroadcast Television (Meet or Delete) Print Newspaper, MagazinesInternet Social Networking Sites, Blogs, Interactive websites, Viral Video,Direct Response and InteractiveOnline ads featuring celebritiesAdverts on websites such as Yahoo, MTV, MySpace, MSN, Weather Channel, CIO, Forbes, Entrepreneur, InfoWorld, CNet.HPs own interactive websites www.meetordelete.com and www.fingerskilz.tvSocial networking and blog sitesOutdoorBillboardSponsorshipCelebrity st ock-purchase warrant2. Discuss the importance of branding, branding strategy and brand positioning to Hewlett-Packard in developing competitive wagesBrand can be defined as identifiable product, service .. augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs (Chernatony and McDonald, 2005, p.25). Xie and Boggs (2006) believes that a brand is a result from product specialism and strategy of market segmentation. Organizations are changing their communication strategy to keep the consumers attention on the corporation and not anymore on the products. Until 2002, HP had not developed a unified image as the company used to invest less than 10% of its advertisement budget on brand ads. HP has focus to being sophisticated and to diversify its products line, but lack in market research and in position itself to get a competitive wages from the competitors. Having focus on the corporate branding means the organization behaviour wil l have more exposure and be more visible and transparent in its activities. When corporate branding works, it is because it expresses the values of swear that attract key stakeholders to the organisation and encourage them to feel a sense of belonging to it (Hatch and Schultz, 2001, p. 1046). So, in 2003, this company introduce Operation one Voice in order to have a consistent message and an identified image for the external and internal public.Chernatony and McDonald (2005) believe that a self-made brand has as objective to build a positive relationship with costumer, where feelings of commitment and belonging are presented. For a long time, HP has negligence the importance of connect with consumer. Just in 2006, to differentiate from competitors, HP redefined the PC as personal and not anymore as commodity. From decades, HP has an benefit from competitor for investing in technologic research. However, in the starting line of 90s, the consumers had more options and the competit ors such as a Dell revelled themselves with a strong presence in the market.A positive point is that HP has a monolithic identity structure to reinforce the corporate brand, where all the products carry the corporate name. That strategy is a fundamental tool to build a strong reputation. The advantage of using a corporate branding is to apply the vision and ending as part of sales promotion and also to add a unique organisational value. Cornelissen (2008) believes that structure core emphasises the confederation between vision, culture and image. Also, he suggests using the toolkit developed by Hatch and Schultz to analyse the alignment or gap between vision, culture and image, by questioning the interface between those tree elements.Hatch, M, and Schultz, M. (2001) Bringing the corporation into corporate branding,European Journal of Marketing, vol. 37, no. 7/8, pp. 1041-1064.HP vision aims to be leader in its segment, to invent technologies and function that add value to busines s and also to create social benefit to consumers lives. Its identity seeks to be an innovative company, which produces range of quality products. In this context, there is not an alignment between vision and culture, because HP had not differentiated its strategies from competitors, imitating Dell direct sale tactics. Also, it seems to have a gap between culture and image as consumer have not perceived HP as an organization worried about their needs, but more concerned about develop new technologies .However, vision and image seem to be alignment as the company has a clear idea who is its main stakeholders and it understands the importance to communicate with them on ongoing basis. HP also is involved in corporate social responsibility projects and those help to communicate and reinforce its vision to its stakeholders.For a long period, HP prioritized its objectives, instead of the customers needs. Its products were advertised separately and interestingly did not use a lower price t atic as competitive advantage. According to Sengupta (2007), the position of a brand is unequivocal by the target consumers. Position then represents the essence of the brand as perceived the target consumer in a multi brand market(Sengupta, 2007, p. 17). So, HP strategically reinvented the computer, giving a personal touch. In this context, the organization added 9% value to brand in 2007. Sengupta (2007) adverts that the company need to know who they are first and then create awareness in order to position the brand. By interacting with costumers through blogs and website, HP is changing the way how the public perceived its brand.The importance of position correctly a brand can be recognized in Sengupta citation Position creates uniqueness, credibility, sustainable and valued place in consumers mind for brand (Sengupta, 2007, p. 17). Chernatony and McDonald (2005) affirms that a successful brand is a result of how much value the customers add to a product or a service. HP reposit ioned the brand, by differentiating the concept of PC. Xie and Boggs (2006) affirm that products and services are quickly imitated and homogenized, maintaining credible product differentiation is increasingly difficult, requiring the positioning of the whole corporation rather than simply its products (Xie and Boggs, 2006, p.349).HP has been investing in technologic research since 1960. In the beginning, the company had focus in hospital equipments and it seems HP looked just to niches, instead of looking the built-in market for a long term strategy. However, its brand has extending to computers, printers and digital cameras. Because HP was recognized as an innovative company, this image was transferred to the news products lines. Consumers recognize the name and make associations that enable them to lower the perceived risk and in doing so provide a platform to try a new product (Fill, 2009, p 508). HP expertises in computers were extended to printers and digital cameras. Chernato ny and McDonald (2005) states that one factor of success on brand extension is to build and sustain a favourable reputation for a parent brand. Reputation also is an important looking at on consumers loyalty. After decades, HP understood the importance to look what the brand means to the customers. By knowledgeable the core associations that consumers perceived the brand, it is more likely to be successful in an expansion. HP targeted young consumers as this public and the company share values such as interest for technologies and innovation. That helps to create a connection. In 2006, a blog, which was part of HP association with FIFA World Cup website, attracted more than 180 thousands visitors.3. Major challenges onwards for Hewlett-Packard RecommendationsHP had certainly done good job on the front of integrated marketing communication by launching the new campaigns and other supporting campaigns. But while doing that there were some areas which were not addressedHPs ability to recognise the need to change its marketing and communication strategy purposefully led to its growth by 2007. Smith R.D. (2002) described campaigns as systematic sets of public relations activities, each with a specific and finite purpose, sustained over a length of time and dealing with objectives associated with a particular issue. Management was able to change the structure, process and relationship within the company to establish lasting confederacy with its customers. The advertisements were able to persuade customers in to buying by evoking an inherent desire to be part that a celebrity group. However, to be able to sustain this flow, Hp will have to develop long term strategic marketing communications plans through continual market research and development.Extensive use of celebrity endorsement by having a long term association with celebrities there is a risk that any indecent behaviour of celebrity may affect the companys image.Company was over focused on advertising a nd under used other elements of communication mix like personal selling, sales promotion, PR.As the company grows in size and market share with huge number of customers, company also needs to address the retaining of existing customers.As small and medium business sector is emerged very attractive segment company should try to acquire number of customers in this segment as in the last campaign some critics said that the campaign was more focused on consumer sector rather than SME and corporate.In the current era of globalisation the economies are interlinked and interdependent on each other. There are new challenges arsing from this kind of phenomenon. To stamp down from this kind of situation Doole and Lowe (2001) describe the companies are buy outing a long term strategies, where marketing programmes and process are standardised and at the same time it has been adapt to local needs. It is important to understand the differences and similarities between local markets.Due this glo balisation where new markets are opening like India, China, Brazil the company must adopt the strategy according to the culture of these countriesFill (2009) states from marketing communication perspectives, the prevailing culture in a region must be respected, otherwise it is likely that a brand and or organization will be rejected (Fill, 2009, p. 842).Kotler (2002) Multi-brand strategy Multi-brand strategy enables a company to lock up more distributer shelf space and to protect its major brand by setting up flanker brandsRECOMMENDATIONS purpose the multiband strategy in future to acquire the more shelf space and beat the competition.Use personal selling as tool to improve sales.Use combination of push and pull strategy.More emphasis on sales promotions in storeUse of PR to retain existing customer and maintain good relationship with stakeholders.Become more interactive with consumers through new media (develop message board and forums)Focus on corporate advertising as well as con sumer advertisingContinuous development of innovative new productsIntegrate at Different Levels of management. Put integration on the agenda for various types of management meetings whether annual reviews or creative sessions. Horizontally ensure that all managers, not just marketing managers understand the importance of a consistent message whether on delivery trucks or product quality. Also ensure that Advertising, PR, Sales Promotions staff are integrating their messages. To do this you must have carefully planned internal communications, that is, good internal marketing.Think Customers First. Wrap communications around the customers buying process. Identify the stages they go through before, during and after a purchase. Select communication tools which are right for each stage. Develop a successiveness of communications activities which help the customer to move easily through each stage.Build Relationships and Brand Values. All communications should help to develop stronger and stronger relationships with customers. Ask how each communication tool helps to do this. Remember customer retention is as important as customer acquisition.Develop a Good Marketing selective information System which defines who needs what information when. A customer database for example, can help the telesales, direct marketing and sales force. IMC can help to define, collect and share vital information.