Marketing Communication and Its Importance

The report explores the concept of marketing communication and its significance in business operations. It uses a context analysis approach to examine the factors influencing business activities and applies the SWOT (Strengths, Weaknesses, Opportunities, and Threats) tool to identify potential outcomes. The report also includes stakeholder analysis to satisfy the demands of customers, employees, government, investors, and other stakeholders. It provides a detailed understanding of marketing communication and its role in shaping business strategies.

Marketing
communication

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Context analysis of Uber of United Kingdom........................................................................1
INTERNAL AND BUSINESS CONTEXT....................................................................................2
2. Evaluation of strategic components for Uber..........................................................................8
CONCLUSION..............................................................................................................................10

INTRODUCTION
Marketing communication is defined to an approach which has been undertaken by an
organisation in conveying messages from one end to another. The messages can be either
conveyed to the customers so that they are influenced to avail services of this organisation. This
tools is often emphasised to create brand awareness which relates to an organisation and for
making sure that repeated purchases from consumers are carried out (Mihart, 2012). This
assignment focuses on mega-ride sharing organisation known as Uber and various
communication strategies which has been undertaken by them (Albarracin, Johnson and Zanna,
2014). This report attempts to explain business and buyer context in relation with this
organisation. The marketing strategy in this company will be audited so that major discrepancies
could be identified.
TASK 1
1. Context analysis of Uber of United Kingdom
Marketing communication is one of the important method which is used by the
organisation for providing the information about their products and services. It includes the
activities relating to building of effective communication with customers which helps in
influencing their behaviour. The present report contains the information regarding context
analysis of Uber. In this regard need to evaluate the profile of organisation which provides the
opportunity regarding go through next procedures.
Uber profile and background
This organisation was established in 2009 by Travis Kalanick and Veterans Garrett camp
as a start up in San Francisco. This company provide different kind of services like ride-sharing,
food delivery and transport network. It provides their business activities in more than 633 cities
worldwide. It also provides the opportunity to access their services with the helps of websites
and mobile apps. The main aim of organisation is make the transport facilities more good which
contributes in making of the travelling process more ease. It is observed that this company
expand their operations after March 14 in more than 33 new countries. At present, more than 400
employees are working in organisation for effective providence of their operations. From their
large number of business operations huge amount of revenue is earned. The amount of revenue
which is earned by organisation in 2017 is around US $7.5 billion.
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CONTEXT ANALYSIS
It is effective method which helps in evaluation of the business environment in which all
businesses operates. Scanning of environment includes determination macro-environmental
factors which has impact upon business operations. But context analysis includes consideration
of both internal and external environment. It helps the management of organisation regarding
preparation of new strategies which contributes in accomplishment of desired objectives in
effective manner. All such measures are required to be undertaken before formation of project
and providence of the information regarding the impact macro-environmental factors upon
different segments at early stage for the purpose of attaining sustainability in their operations. It
is considered as primary stage of planning where new areas are identified which have significant
impact upon the business operations. This approach also provides emphasis on the analysis of
internal factors. This helps in ascertaining the information regarding their internal strength which
provides chance in future to grab the opportunities in more effective manner. This report
includes the context analysis of Uber. It is multinational organisation which provides their
services worldwide. The main aim behind application of this approach is about the development
of effective marketing strategy (Kaplan, 2012).
INTERNAL AND BUSINESS CONTEXT
Business context aims to examine the environment in which an business organisation is carrying
out its operations. The consideration of internal and external environmental features make sure
that policies and practices which lead to betterment of business can be undertaken (Graham and
Frankenberger, 2011) . Uber is an organisation known to be a primary choice when it comes to
ride sharing or availing taxi service. The distinct types of services makes sure that services are
delivered to consumers who are budget conscious and people who are fond of luxury. In the
United Kingdom market, this cab provider have emerged to be the market leader with its
services. The company have been focused on developing Uber Taxi service in the varied market
which has been formed to fulfil requirements of the people in the future. The features that have
worked successfully for this enterprise are its name, mobile application and most important
marketing strategies. It is amongst the first organisation who is known to rely heavily upon
technology and product outstanding results in terms of service. The company have been carrying
out its operations strictly on the demand and supply principles. During peak hours, this
organisation charge “Surge” pricing and simultaneously encourages drivers to take up job.
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Business context can be state as a process that is considered by an organisation so that
they can evaluate the recommendations and requirements that are to be delivered to stakeholders.
Therefore, it is optimised by most of the company so that can attain appropriate results and
outcomes. Uber is one of the leading company across the world and provides services that are
related to ride sharing. Although firm is running their business successfully but some of the
factors are to be considered in order to examine and develop marketing communication.
Therefore, to examine it in a better manner SWOT analysis has been conducted so that internal
component and environment of organisation can be evaluated. Some of these measures are given
below so that it can be understood in a better manner:
Strengths:
 Uber is one of the renowned company and they are providing excellent quality of services
and facilities to its customers. For this, company is using on-demand-service model so to
give services according to the needs and wants of customers through online and offline.
 Company are providing its services that favour low fixed investment and it is helping
them in retaining the loyalty of customers in order to get maximum benefits.
 The operating cost of this company is low and drivers of this organisation is very
interactive and take care the safety of consumers (Luxton, Reid and Mavondo, 2015).
 For drivers, system is very convenient and firm provide flexible working hours to
employees.
Weaknesses:
 Relationship among drivers and Uber company is very ethically questionable. There is
lack of good connection between both of them.
 Operating vehicle cost is more high and earning of this firm drivers is not high.
 Under is service based business firm which prefer minimum investment with less cost of
goods.
 The bonding among consumers and organisation is not more and incentive is low. Arise more controversies
Opportunities:
 There is an opportunity to Uber business firm to minimize cost of waiting time to
consumers.
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 Uber firm can exploit big and new markers in different countries where taxi are more
expensive.
 This firm can provide extra services such as transporting patients to hospital, children to
the school. It can do partnership with the hospitality brands
Threats:
 Because of different legislations of various countries and from this Uber is ban in some
countries. Self driving cars are main threats.
Buyer's Context
It is very important factor where firm are analysis their potential clients needs and want
accordingly they are provide information which are related to firm services offers. Uber has
provide various kind of services to their consumers in order to enhance market position as well
as profits. So that, for improve customer's satisfaction they are rise quality of commodities as
well as conducting research to know individuals perception, attitude, behaviours, motivation
factors, learning style all these elements may rise information and data (Thorson and Moore,
2013). Through this information, firm done interpretation of each one data and find of conclusion
to receive valid outcome in limited period of time in an effective ways. Through this,
management of Uber has develop strategies in order to attract large number of customers toward
it.
Some important step which are taken by organisation are develop mobile application with
higher security of information and accurate search location, use modern approaches of promotion
and advertisements. It is a internation firm which run their business operations at global level, so
that they are various kind of customers which have different social culture environment, needs,
demand and psychology, thus affect firm performance positively as well as negatively. In order
to know these all customers firm are hire local person to sell services effectively.
Segmentation of customers- It is necessary to Uber business firm to possess accurate as
well as relevant data or information of segmentation on the basis of age, gender, location,
occupation and many other demographics factors. Under this, there is a consumer analysis
which should accessible, distinguishable and also measurable according to distinct specifications.
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Discover their Demand- In regards to consumers, they need high quality of services and
comfortable rides. So, it is essential that Uber firm should analyse demand of customers and
create new services according to their requirements. If firm will understand needs of consumers
then they will more attract towards services in an effective manner.
Development of customer profiles- Uber company compile as well as associated data and
information which are connected with the target customers and their specifications like for an
instance objection, demographics, background quotes, responsibilities and many other factors. In
United Kingdom country, there are more than the 12% of adult people which using Uber on
continuous basis. It increases sales as well as profit level of firm in an effective or better manner.
Bridging the gap- There is a need to minimize gap among the firm and consumers in a
better way and try to maintain strong connection among both of them. In addition to this,
research is helpful in determining and needs of customers and through this Uber can work on
fulfil them in a systematic manner and attain desired results (Maarek, 2011).
STAKEHOLDER CONTEXT
Stakeholders are main or essential part of business firm and they give their effective
contribution in making business firm more successful. On the basis of stakeholders, firm
governed the objectives as well as time. It is necessary for the Uber context analysis to evaluate
stakeholder mix and for this Mendelow's Matrix is very beneficial. It is necessary to performing
as well as activities on the basis of stakeholders.
Stakeholder mapping- It is visual representation of stakeholders analysis and organise
people on the basis of their criteria. Stakeholders plays essential role in dealing with disputes and
it recognised stakeholders expectation and demands in a better manner. It is a responsibility of an
organisation to understand demands of stakeholders and then try to fulfil them. It undertakes
different necessary process in context to determine the major stakeholders of the Uber company
which are given below as above:
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Illustration 1: Stakeholder context
Box A: Minimum Efforts- Under this dearth of interest as well as power develop more
impact on stakeholders.
Box B: Keep Informed- In this, there is a need to Uber firm to keep inform stakeholders about
new policies, strategies and plans so that they can take interest in activities or operations of firm
in an effective or proper manner.
Box C: Keep Satisfied- There is a need to stakeholders to be satisfied in order to minimize their
interest and also transform them to the Box D. It includes outcomes of strategy reassurance in an
advance (Marsden, 2010).
Box D: Participation- Stakeholders are the main key drivers and include in administrative
strategy. So, there is a need to stakeholders to work according to the plan and discuss any issues
with other necessary people.
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Uber business firm working with its stakeholders in context to include and manage better
relation with worker. The manger of this company manage their stakeholders as well as teams on
the basis of their needs.
ENVIRONMENT CONTEXT
Business environment impacts on business activities as well as activities in different
ways. Under this, it is necessary to Uber business firm to identify all issues and work on
reducing them. The PESTLE analysis of Uber company given below as above:
Political Factor: Uber company faced many controversy in its initial stage and this firm
did not have any regulations. Many governments are concerns to over regulations of sharing
economy. The political factors of each country is different from the each other so Uber company
faces many issue while doing business in other countries.
Economic Factor: Uber company is affected through these factors. Sharing an economy
has generate more employment for individuals at large scale. Uber has develops more job for
huge people as drivers (Rice and Atkin, 2012).
Social Factor: Uber company conduct its multinational operations with provide
trustworthy services and reasonable fare. This firm provide its services on the basis of needs and
demands of consumers so that they can take more rides and increase profit level of firm.
Technological Factor: People can explain their experience of ride through online and
also share their stories. It increase courage of new users to do it same. Technology helps in
increasing effectiveness of firm and give better services to people. With the help of this company
App., Users book their rides in better manner.
Legal factor: Uber company faces more bans, criticism in all over the world. So, it is
essential that this firm should implement all legislations such as copyrights, safety laws, labour
legislations and many others.
Environmental factor: In 21st century, sustainability is became a necessary part and it
provides services like sharing of rides Uber company began pilot project which is known as Uber
Green when riders are request for green ride by tapping the button.
2. Evaluation of strategic components for Uber
Marketing communication is effective strategy which is used by the management of Uber
for improvement of their brand awareness by providence of the information about their services
and current market position to their potential customers. This will contributes in attraction of the
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customers towards their services which automatically improves their brand value. In this regard,
Uber develops their own marketing communication strategy for removal of the existing issues
for achievement of desired targets. The strategies which are used in this regard are defined
below:
 Push communication: It is one of the communication type in which information is
transfer from receiver to sender. This method of communication most preferable while
the information is send by one. The different things which are used in this method for
communication includes letters, emails, faxes, reports, memos etc. There is no face to
face interaction between the communicating parties. The sender of the message has the
assurance about the decoding of the message successfully. One of the major disadvantage
behind the use of this method is that there is no certainty about the receiver and delivery
of the message. But still there some email system which notifies about the sent of
messages which provides some kind of assurance about dissemination of information in
effective manner. The main aim of push strategy is to about the promotion of of their
existing services for effectively reaching towards their end customers (Shah, 2011).
 Pull communication: It is opposite approach from the push communication which has
main focus is about the attraction of customer through development of effective
communication channels. This strategy provides opportunity is to interact with customers
in such way that maximum output is delivered to customers. For effective
implementation of this kind of marketing strategies need to spend large number of
amounts. In this strategy not forcing the customers is to read their message they attract
automatically towards the brand. Here the information is published on websites, wikis,
magazines etc. The main examples of this strategy includes:
- Sales promotion and discounts
- Use of the medium of mass media
- Customer relationship management
 Profile communication: It is important for organisation to build effective relation with
their stakeholders. Through application of the principles of this strategy attitude,
goodwill and awareness is developed. In this regard, many techniques are used like
public relation, sponsorship, corporate advertisement etc. In business environment, the
marketing structure is already present which is used by the management of Uber for
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development of their marketing strategy. This will provides the opportunity regarding
attainment of the trust and loyalty of such stakeholders towards their brand. It helps in
their retention for longer period of time. The main strategies which are included in this
type of communication are:
- Conferences and meetings
- Events
It is important to understand about the basic function of push, pull and profile
communication by the management of Uber for its effective implementation in real scenario. It
helps to build effective communication with their service users (Thackeray, Neiger and Keller,
2012). This provides the opportunity regarding effective management of their ride-sharing
customers. It is observed from the communication from the customers that around 65% are
satisfied with ride sharing activities of Uber.
CONCLUSION
It has been concluded from the above report that marketing communication is one of the
important aspect which helps the management of Uber to provide information about their
different services among their customers. This will includes the adoption of different approaches
which provides the opportunity to bring awareness among the individuals of society about their
brand and different offerings. Through this large number of benefits are gathered by Uber like
high customer base, large market share, large number of profitability etc. In this report, approach
of context analysis is used which helps in internal and external analysis. This approach helps in
determination of the factors which are present in business environment and their potential impact
upon business activities. Business context includes the research of business through application
of the tool of SWOT which helps in reaching out towards their desired outcome in more
appropriate manner. Stakeholder analysis includes the process of identification of different
stakeholders like customer's, employees, government, investor etc. This helps to satisfy their
different demands.
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Online
What is marketing communication (MarCom)?. 2013. [Online]. Available through
:<https://www.marsdd.com/mars-library/what-is-marketing-communication-marcom/>.
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