Uber's Integrated Marketing Communication and Customer Engagement

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This report critically analyzes Uber's marketing and customer engagement strategies, with a specific focus on its use of digital media and social media platforms as part of its integrated marketing communication approach. The report begins with an introduction to Uber, highlighting its global presence and operational model. It then delves into a critical analysis of Uber's social media marketing strategies, exploring tactics such as word-of-mouth marketing, referral programs, loyalty programs, and partnerships. The analysis also examines Uber's presence on platforms like Facebook, Twitter, Instagram, and YouTube. The report then provides recommendations for improving Uber's social media marketing strategies to enhance revenue, considering its strengths, weaknesses, opportunities, and threats. Overall, the report underscores Uber's success in creating a strong brand presence through effective digital marketing and customer engagement initiatives.
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Running head: MARKETING AND CUSTOMER ENGAGEMENT
Marketing and customer engagement
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1MARKETING AND CUSTOMER ENGAGEMENT
Abstract:
The report mentions Uber as a the company that efficiently uses digital media as a part of its
Integrated Marketing Communication strategy. The company has been able to develop a strong
social media presence and has established itself as a global brand. The report critically analyzes
the social media marketing strategies of Uber. At last, the report mentions the recommendations
on how the company can improve its social media marketing strategies to enhance its revenues.
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Table of Contents
Introduction:....................................................................................................................................3
Critical analysis:..............................................................................................................................3
Recommendations:..........................................................................................................................5
References........................................................................................................................................7
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Introduction:
Uber is a global transportation organization that was founded in the year 2009 by Travis
Kalanick and Garrett Camp with its head quarters in San Freancisco. The organization is a
technology company, which provides vehicles for hire and delivery. The organization operates in
more than 633 cities around the world ("https://www.uber.com/business", 2017). The
organization runs Uber car transportation wherein the drivers either own their cars or use rented
car in order to drive with Uber. The organization allows the public to book a cab usinf their Uber
app, which requires a smartphone and an access to the internet. The organization has
implemented dynamic pricing policy wherein the fares are usually higher during the times when
there is huge demand for rides.
Critical analysis:
Uber was launched in Canada in the year 2012 and has gained immense popularity within
a short span of time. Uber has millions of customers in Canada and operates in all the major
cities in Canada such as Toronto, Vancouver, Ottawa, Montreal and several others
("https://www.uber.com/business", 2017). According to Thorson & Moore (2013), the company
has been involved in intense marketing strategies, which involved market penetration policy and
maintaining strong public relations. The company has used integrated marketing communication
strategies in order to popularize its brand and position itself in the minds of the customers.
Integrated marketing communication involves using the marketing strategies that optimize the
communication of a particular message regarding the brand of the organization to the
stakeholders. It involves identifying proper promotional mix elements and considering the
effectiveness of the campaign message.
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On the other hand according to Camilleri (2017), Uber has emphasized upon its values
and has efficiently utilized both online and offline marketing strategies in order to position its
brand. Uber has efficiently utilized word- of- mouth strategy for marketing its services. Uber has
been recognized by Single Grain among the organizations that have efficiently utilized digital
marketing strategies in their marketing campaigns. More than 84% customers make their
purchasing decisions on the basis of the recommendations from family members, friends and
colleagues. Uber has efficiently utilized this strategy in order to attracting the customers. The
company provided referral codes to its customers, who were allowed to forward them to their
known ones. This referral code allowed the new customers to enjoy rides at heavy discounts. The
company has used effective digital marketing strategies in order to attract the customers. The
creative social media marketing strategies of the organization has resulted in the growth and
development of the organization. The company has come up with several loyalty programs
wherein the company has provided Uber VIP to the customers, who have availed more than 100
Uber rides wherein the customers are provided with a special access to the best drivers. The
company has also used online loyalty programs to attract and retain the customers.
Belch et al., (2014) criticized that Uber has not yet properly used social media marketing
strategies. However, Uber has used stunts to create a brand awareness wherein the company has
offered rides to its customers with famous musicians. Uber has been successful in creating a
friendly image among the customers. The company has also entered into partnership with several
other organizations in order to attract and retain the customers. For instance, the customers who
possess one credit card enjoy discounted rides with Uber and the guests at Starwood hotels earn
hotel points on availing the services of Uber. The company uses a rating system wherein every
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customer has to provide ratings in relation with the quality of service they have received and
their experience. This motivates the drivers to provide good ride experience to the customers.
According to Luxton, Reid & Mavondo (2015) Uber has recently partnered with
Facebook messenger in order to enable the Facebook users to request rides using the messaging
app. Uber has more than 8 million followers on Facebok ("https://www.uber.com/business",
2017). Uber uses Facebook mostly for dealing with the complaints of the customers. The
company uses Fcaebook as a platform for providing efficient customer service. The company
also has more than 698k followers on twitter and it shares its videos and photographs over twitter
in order to attract the customers ("https://www.uber.com/business", 2017). It has established
good relationships with the customers by continuously interacting with the customers through
tweets. Uber also has its presence over Instagram and youtube. In all these ways, Uber has
efficiently used digital marketing strategies to increase its brand awareness.
Uber also has its own mobile game. The company has extended its services in order to
fulfill the needs of the customers. Uber has come up with Uber EATS, which provides rapid food
delivery service to the customers. UberRUSH assists in business to business delivery and has
partnered with Clover, Shopify and Bigcommerce. Uber HEALTH delivers flu shots. Uber uses
social media when it releases some new products or services and efficiently interacts with the
customers (Kitchen & Burgmann, 2015). Uber has its own website wherein it tailors its posts in
accordance with the geographic locations.
Recommendations:
The strength of Uber is that it has been able to position itself as a globally recognized
brand. Setting up Uber did not involve much fixed investment and the company has focused
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upon customer satisfaction (Schultz, Patti, & Kitchen, 2013). The dynamic pricing strategy and
adaptive nature of Uber has helped it achieve the desired growth rate. However, the major
weakness of Uber lies in the fact that it is excessively dependent upon manpower and internet.
Uber also faces strong competition from its rival organizations (Percy, 2014). The increasing
penetration of internet and the rise in the disposable income of the customers are a great
opportunity for the company. However, the issues in customer retention and lower profit margins
are the major weaknesses of the organization. Therefore, Uber must emphasize more upon its
digital marketing strategies to spread its brand awareness. Additionally, the organization must
also come up with offline booking facilities so that the people who do not have access to the
internet can also avail the services of the organization.
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References:
Belch, G. E., Belch, M. A., Kerr, G. F., & Powell, I. (2014). Advertising: An integrated
marketing communication perspective. McGraw-Hill Education.
Camilleri, M. A. (2018). Integrated Marketing Communications. In Travel Marketing, Tourism
Economics and the Airline Product (pp. 85-103). Springer, Cham.
Kitchen, P. J., & Burgmann, I. (2015). Integrated marketing communication: Making it work at a
strategic level. Journal of Business Strategy, 36(4), 34-39.
Luxton, S., Reid, M., & Mavondo, F. (2015). Integrated marketing communication capability
and brand performance. Journal of Advertising, 44(1), 37-46.
Percy, L. (2014). Strategic integrated marketing communications. Routledge.
Schultz, D., Patti, C. H., & Kitchen, P. J. (2013). The evolution of integrated marketing
communications: The customer-driven marketplace. Routledge.
Thorson, E., & Moore, J. (Eds.). (2013). Integrated communication: Synergy of persuasive
voices. Psychology Sign up to drive with Uber. (2017). Uber. Retrieved 18 November
2017, from https://www.uber.com/a/join
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