Introduction to marketing communication

Promotion is a communication process, by which the producers of the products or services draw attention of the consumers or prospective consumers towards their products and services. Consumers are informed and reminded about the products and are requested and persuaded to purchase their products. Such communication may be made either along the product or well in advance of the introduction of product into the market.

Promotion as communication: - Promotion is that marketing communication activity that attempts to inform and remind individuals and persuade them to accept, resell, recommend or use a product, service, idea or institution.

Promotional communication has the triple purpose to perform. To inform, to persuade and to remind and the three basic purposes are being fulfilled at the different stages of product life cycle.

Promotional communication is not always directed towards the ultimate consumer. It can be for industrial customers, institutions or some times towards middlemen. Promotion is an important tool for both profit and non profit organization. As we know that most often it is being used to sell a product or services, it is also being accepted in the marketing of social services, political candidates and ideas.

Objectives:

1. Leads to behavior modification.

2. To inform.

3. To persuade.

4. To remind.

5. Specific Objectives. Such as to change the pattern of demand.

Integrated Marketing Communication:

In traditional marketing, promotion activities are handled by various specialist agencies. The marketing effect is fragmented and the result could be conflicting communications that confuse the customer. The result is wasted time, money and effort. Thus, integrated marketing communications help in channelising all marketing effort through single unified mechanism which helps in achieving following benefits:

1. Creative integrity.

2. Consistency of message.

3. Unbiased marketing recommendations.

4. Better Use of Media.

5. Greater marketing precision.

6. Operational efficiency.

7. Cost saving.

Tools Of IMC: There are various tools for Integrated Marketing communication. These are as follows:

1. Advertising: It includes any informative or persuasive message carried by a non- personal medium and paid for by a sponsor whose product is in some way identified in the message.

2. Personnel Selling: It is a person-to-person dialogue between buyer and seller.

3. Sales Promotion: It includes activities which are used in promoting sales of the product.

4. Direct Marketing: In it organizations communicate directly with target customers to generate a response and/or a transaction. Traditionally, direct marketing has not been considered an element of the promotional mix. However, because it has become such an integral part of IMC program of many organizations and often involves separate objectives, budgets, and strategies, we view direct marketing as a component of the promotional mix.

5. Word-of-mouth: Of course, an organization’s image can be projected through channels other than the formal communication process. Of course, positive word-of-mouth recommendation is generally dependent on customers having good experiences with an organization, and studies have shown how unexpectedly high standards of service from a company can promote recommendation.

Two of the most famous organization Amway and Tupperware’s marketing communication can be analyzed on above factors.

But before analyzing marketing communication programme we must first have a look on the company profile and history of the organization

Amway Corporation

Amway is more than an income opportunity or a company or products. It’s about putting people in control of their lives. It’s about connecting people to others who respect them, who share their goals and aspirations. It’s about supporting people in their achievements.

Amway is about people connecting people to a better way of life.

Amway Corporation is one of the world's largest direct selling companies. Originally founded by Jay Van Andel and Rich DeVos, Amway operates in more than 88 countries and territories in Asia, Africa, Europe and the Americas. Amway products and services are marketed through independent business owners worldwide. Amway is a wholly owned subsidiary of Alticor Inc.

PEOPLE

Amway has more than 6000 employees worldwide. In addition, Amway has more than 3.6 million Independent Business Owners (IBOs) around the world. In China, Amway products are sold by Amway sales representatives.

PRODUCTS AND SERVICES

Over 450 unique, high-quality products carry the Amway name in the areas of nutrition, wellness, beauty and home, as well as commercial products and a variety of services. In addition, Amway independent business owners in selected markets sell additional brand-name goods through local merchandise catalogues, plus a variety of services and educational products. All products are backed by a customer satisfaction guarantee.

GOVERNANCE AND MANAGEMENT

Doug DeVos is the President of Amway and Steve Van Andel is the chairman.

FACILITIES

Amway operates out of Alticor's world headquarters located at 7575 Fulton Street East, Ada, Michigan 49355, USA.

COMMUNITY SERVICES

Amway, its Independent Business Owners and employees are involved in improving the communities in which they do business. Specific and current information is available upon request.

AFFILIATIONS

Amway is a prominent and active member of the regional and national direct selling associations worldwide. Doug DeVos is a member of the U.S. Direct Selling Association Board of Directors. Former Alticor President Dick DeVos is the current Chairman of the World Federation of Direct Selling Associations (WFDSA). Globally, direct selling is an industry with approximately $80 billion in sales and more than 30 million salespeople.

The History of Amway

What does the word Amway mean? Amway is an abbreviation for "American Way" and was coined in 1959 by company founders, Jay Van Andel and Richard DeVos. Short, unique and easy to remember, Amway has been registered as a corporate name and trademark ever since.

In the following decades, Amway Corporation successfully established itself as a leading multilevel marketing business, built on strong values and founding principles that continue to sustain our company today. The business is built on the simple integrity of helping people lead better lives.

Today, Amway is a multibillion-dollar international business representing freedom and opportunity to millions of people in more than 88 countries and territories around the world. Amway generates US $ 9.2 billion (January - December '09) in sales at estimated retail through this global product distribution network. We offer over 3 million Business Owners the inspiration to grow those businesses, and we work hard to provide new and better ways for them to achieve their life goals.

AWARDS

As a corporate leader in promoting environmental awareness and education, Amway received the prestigious United Nations Environment Programme Achievement Award in 1989.

Corporate Citizenship Award - On November 08, 2005, the United States Chamber of Commerce awarded Alticor with the Corporate Citizenship Award in the category of International Community Service for the One by One Campaign for Children

A SOLID FOUNDATION

Rich DeVos and Jay Van Andel's friendship actually began with a business proposition, when Rich struck a deal with Jay for a ride to school for 25 cents a week. After high school they entered the military, but they planned to start a business together after separate tours of duty. A friendship formed and became a business relationship that has lasted to this day.

THE EARLY YEARS

Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay Van Andel's homes. In its first full year of business, Amway's sales were more than half a million dollars.

THE DECADE OF GROWTH

As vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the aerosol plant and went on. The '70s began with sales of more than $100 million at estimated retail, and kept going strong. After a lengthy investigation, the FTC verified that Amway is a genuine business opportunity and not a "pyramid."