MARKETING
COMMUNICATION IN THE CONTEXT
OF
SMALL ENTERPRISES
MAŁGORZATA
SMOLAREK, JOANNA DZIEŃDZIORA
Wyższa Szkoła HUMANITAS w Sosnowcu
Abstract. The article discusses many aspects
of the process of marketing communication with reference to small enterprises.
It also takes into account marketing communication instruments. It is important
that marketing communication instruments are connected with the elements of
marketing strategy of an enterprise (with reference to product, price or
distribution) and based on proper information and decision premises. Further,
the article presents the results of the research on the forms of marketing
communication applied by small enterprises located in the district of
Częstochowa.
Key words: marketing communication,
marketing communication system, small enterprises
1. Introduction
Today, enterprises
increasingly operate in the conditions of strong market competition. Marketing
communication is one of the sources of competitive edge. In the literature of
the subject, marketing communication is closely related to the promotional
activity of an enterprise. However, it is worth noting that compared to
promotion, marketing communication includes a richer set of instruments, which
are directly identified both within an enterprise and from its environment. It
should be however stressed that the basic task of marketing communication of an
enterprise is supporting and striving to fulfil its market aims.
A modern feature of
marketing communication operations is the use of scientific methods, the
results of research and planning techniques that have a direct influence on the
instruments of marketing communication. As a result, the aim of these
operations is to link and supplement the system of marketing effect on the
market[1]
in terms of time and motivation. In the literature of the subject this system
is referred to as integrated system of marketing communication.
Modern companies manage a complex
system of marketing communication. The system includes identification and
evaluation of the main recipients of the messages of a company, planning
communication activities, including defining the most important information and
selecting the instruments, as well as controlling the number and quality of
messages and effects of communication. Increasing diversity of customers and
the use of the concept of individualized marketing or mass individualization
create a need for formulating and managing communication programs adapted to
specific segments, niches, and even individual customers.
2. Essence of marketing communication
The process of an enterprise’s communication with the market is an
important element related to its marketing activity. It takes on special
meaning in the conditions of strong market competition and when supply
significantly exceeds the demand for certain products or service. In such
conditions an effective communication is a source of success of an enterprise,
understood as a degree to which it achieved its market aims.
According to J.W.
Wiktor, marketing communication is an information and real process which is
carried out in an enterprise and its marketing environment[2].
Marketing communication of an enterprise involves affecting all the
participants of the market, especially current and potential customers. The
realization of the marketing communication of an enterprise consists mainly in[3]:
- providing
information, argumentation, promises and incentives encouraging to market
exchange
- creating
and maintaining a positive opinion about an enterprise and its offers
- overcoming
barriers, prejudices and habits hindering the demand for products and
services o fan enterprise
- generating
demand for new offers
- decreasing
price flexibility of demand for an enterprise’s offer, that is minimizing
the sensitivity of potential customers to the price of products and
services
In the process of communication,
enterprises communicate with all participants of the market. It is important to
note that the essence of the process of marketing communication is transmission
of information in a certain form by an enterprise to the environment by means
of certain channels and communication means. The process is presented in fig.
1.
The process of marketing communication shown in figure above consists of
the following elements[4]:
- sender – a company or person that directs a communication message
to recipient
- coding – mechanism that translates the idea of a message
(information and suggestions) into symbols (words, images, signs, sounds,
colours, etc.)
- message – a set of information and suggestions coded in symbols,
sent by a sender to a recipient
- communication channel – communication means (media), which carry
the encoded information and suggestions
- decoding – interpretation of the message received, that is
translating symbols into information and suggestions
- recipients (communication audience) – people or companies that
receive the message
- response – a set of reactions and behaviours of recipients after
receiving the message
- feedback – part of responses that recipients give the sender (form
of the response may be suggested by the sender of the response in the
message)
- Information noise that may cause uncontrolled distortion of the
message, and as a result reactions and behaviours of recipients different
than the desired one.
Fig. 1.
Process of marketing communication
Source: P. Kotler: Marketing,
Wydawnictwo REBIS, Poznań 2005, p. 575.
To sum up, it is
important to note that marketing communication should have a two-way character,
that is it should be a process of interaction between the sender and recipient
of information. The challenge faced by modern enterprises is conducting a
dialogue with customers. Such exchange of information may have an interactive
character, which is similar to interpersonal communication, despite the fact
that certain means of communication is used in it[5].
3. Marketing communication instruments
Today’s marketing is based on a broad communication between producers
and consumers, producers and agents
(wholesalers and retailers) and sellers and buyers. It requires
something more than manufacturing a good product, sold at an attractive price
and available to target customers. Enterprises must communicate with their
current and potential customers[6].
Instruments used in marketing communication include: advertising, public
relations, promotion, merchandising[7]
and product packaging, personal selling, direct marketing, sponsoring and
participation in fairs and exhibitions.
Promotion
is the most active phase of the process of communication with customers. The
commonly used instruments of promotion include[8]:
·
Advertising
·
Sales promotion,
·
Personal selling (canvassing),
- Direct marketing - using non-personal instruments of contact
(letters, telephone, Internet) for communication with groups of current
and potential customers;
·
Public relations i publicity - relations
with the environment, economic propaganda
The use of commonly
applied promotion instruments in Polish enterprises is shown in table 1:
Table 1. Use of promotion
instruments by Polish enterprises
|
Promotion instrument: |
% indications |
|
Advertising |
78.2 |
|
Sales promotion |
68.8 |
|
Personal selling |
28.2 |
|
Public relations |
20.6 |
|
Sponsoring |
20.6 |
|
Other |
18.8 |
Source:
work based on: R. Nowicki, M. Strużycki: Reklama w przedsiębiorstwie, Difin, Warszawa 2002, p. 136.
The
selection of strategies, instruments and forms of promotion should be based on
general objectives and strategies of an enterprise. The characteristics of
individual instruments of promotion are shown in table 2.
Table
2.Characteristics of promotion instruments
|
Characteristic |
Advertising |
Personal selling |
Public Relations |
Sales promotion |
|
Target |
Large
groups |
Individual consumers |
Large
groups |
Groups (not always large) |
|
Information |
Homogeneous
|
Individualized
|
Homogeneous |
Homogeneous |
|
Cost (per one recipient) |
Low |
High |
Medium
|
Medium
|
|
Sponsor |
Identified |
Identified |
Unidentified |
Identified |
|
Flexibility |
Medium |
Significant |
Little |
Medium
|
|
Feedback |
Not
very precise and quick |
Precise and quick |
Not
very precise and quick |
Less
precise but quicker than in the case of personal selling |
|
Scope of control |
High |
High |
Low |
High |
Source:
I. Bielski: Współczesny
marketing, Wydawnictwo EMKA, Warszawa 2006, p. 380.
Promotion instruments are a set
of activities that enable the communication of an enterprise with the
environment, obtaining a certain position on the market and presenting its own
offer of goods and/or services. Conducting marketing communication activities
belongs to very important tasks in an enterprise[9].
It allows an enterprise to introduce its own style and to stand out against the
competitors as well as create its own, individual profile on the market.
4.
Information about the research and
the companies researched
The
questionnaire surveys „Small enterprise development”[10] were conducted from April to May,
2008. They concerned among others development and planning in a small
enterprise (employing 0-49 people). The enterprises were from various branches.
Their characteristic (common) feature is predominance of productive activity.
The tool used in the research was a questionnaire form, consisting mainly of
closed questions, facilitating the selection of an answer. The questionnaire
forms were directed to owners or persons responsible for managing enterprises.
89 questionnaire forms have been returned, of which 78 – those in which the
question “Do you plan to develop Your
enterprise in the future?” was answered positively - have been accepted to
further analysis.
The
enterprises participating in the research were based in Częstochowa
district, which consists of the following municipalities: Blachownia,
Dąbrowa Zielona, Janów, Kamienica Polska, Kłomnice, Koniecpol,
Konopiska, Kruszyna, Lelów, Mstów, Mykanów, Olsztyn,
Poczesna, Przyrów, Rędziny, Starcza. The biggest number of the
enterprises researched is localized in urban and rural communes: Blachownia
(16.7%) and Koniecpol (14.1%). The remaining 69.2% of enterprises are based in
rural communes (in Kamienica Polska – 9.0%,
Poczesna – 7.7%, Kłomnice, Kruszyna and Mstów – 64% each,
Dąbrowa Zielona, Konopiska and Olsztyn – 5.1% each, Janów and
Mykanów – 3.8% each, Lelów, Przyrów, Rędziny and
Starcza – 2.6% each).
The
majority of enterprises declare that the reach of their operation[11] is the local market – 51.3%. 24.4%
of the enterprises operate on the domestic market, and 17.9% of them - on the
regional market. A relatively small number, 6.4%, of the enterprises, operate
also on foreign markets.
The
biggest group (28.2%) is made up of companies set up in the years 1990-1993.
The most companies were established in the year 1991. In 1989 and earlier 24.4%
companies were created, and in the years 2002-2005 – 16.7% of the companies. In
the years 1994-1997, 15.4% of the companies were established, and in the years
1998-2001 – 12.8%. The least numerous group – 2.6% - is made up of the youngest
companies (formed after the year 2006).
As
far as the education of the owners of enterprises is concerned, the
entrepreneurs with secondary education prevail (41.0%). 20.5% of the owners of
enterprises have higher education (master’s degree), 15.4% of them hold
engineer’s degree, and 14.1% completed post-secondary schools. The least
numerous groups are made up of entrepreneurs with vocational secondary
education (7.7%) and primary education (1.3%).
The
enterprises are from the group with maximum 49 employees. In this group, we can
distinguish two subgroups – microenterprises, with the number of employees
below 10, and small enterprises employing 10 – 49 people. Around 27% of the
enterprises employ more than 9 people, and little above 73% of them belong to
the group of microenterprises.
5.
Forms of communication with the
environment in small enterprises in the district of Częstochowa
The
research conducted shows that small enterprises appreciate the significance of
communication with the environment. Almost 90% of the enterprises answered
“yes” to the question “Does the enterprise use any forms of communication with
the environment?”, whereas a little over 10% stated that they did not use any
forms of communication with the environment. However, the answers to further
questions, which concerned the forms of the communication applied, suggest that
virtually all small enterprises to some degree communicate with the
environment. Each enterprise pointed at at least one form of communication.
This indicates that enterprises use some forms of communication without knowing
that the instruments used are forms of communication.
The
most often used form of communication is advertising (94.9%) and personal
selling (85.9%). Next come promotional sales (42.3%) and public relations
(30,8%). A relatively most rarely used form is sponsoring (19,2%). When viewing the forms of
communication used in terms of the scale of activity (fig. 1), it can be noted
that both microenterprises (employing 0-9 people) and larger companies (10-49
people) use advertising and personal selling to the same degree. The
differences can be seen in promotional selling, public relations and
sponsoring. Theses forms of communication with the environment are relatively
more often used by enterprises with larger scale of activity.
Fig. 1. Forms of communication of
small enterprises with the environment
Source: own work
Among
various forms of advertising, small enterprises most often use advertisement in
the form of packaging (80.8%), leaflets (65.4%) and advertisement in the
Internet (62.8%). These forms of advertising are chosen quite often, most
probably because of their relatively low price. The other forms of advertising
are chosen less often. Usually, they require significant investments. 46,2% of
the enterprises have advertisement in the local radio. 34.6% of them use the
advertisement in the form of published catalogues. Advertisement in the local
television and newspapers is less popular (fig. 2) among the enterprises
researched. The least frequently used forms of advertising are shop displays
and outdoor.
Fig. 2. Forms of advertising in
small enterprises
Source: own work
The
most popular form of personal selling in small enterprises is trade
negotiations (fig. 3). They are used by almost 54% of the enterprises
researched. Free samples of goods for potential customers are used by 35.9% of
the enterprises. The least frequently applied form by small enterprises is
telemarketing (10.3%).
Fig. 3. Forms of personal selling in
small enterprises
Source: own work
Among
the forms of sales promotion (fig. 5), the most frequently used forms include
discounts (75.6%), gifts (47.4%). Demonstrations (42.3%), displays (32.1%) and
fairs (26,9%) are also very popular due to the fact that the participation in
such events allows entrepreneurs to present their offers, compare them with
their competitors, establish cooperation with other companies and establish
contacts with potential customers. The least popular are bonuses (3.8%).
Fig. 4. Forms of the promotion of
sales in small enterprises
Source: own work
Among forms of public relations, donations (used by 55.1%
of the enterprises researched) are relatively most popular and most often used
in practice – see fig. 5. These donations take form of material donations
consisting in giving part of own production (62.8%) and money donations
(37.2%). The institutions which are beneficiaries of such donations include:
orphanages (88.4%), centres of social service (62.8%), Polish Red Cross (16.3%)
and other (34.9%). Donations are used by enterprises employing 10-49 people
(71.4%). Relatively rarely used forms of public relations are publications,
materials for press, annual reports and bulletins. Enterprises with smaller
scale of operation (employing 0-9 people) usually use only donations (49.1%).
The enterprises researched do not use such forms of public relations as
conferences, seminaries and speeches.
Fig. 5. Forms of public relations in
small enterprises
Source: Own work
6. Summary
Marketing communication is one of
the sources of competitive edge. The process of communication of an enterprise
with the market is an important element related to its marketing activity.
Marketing communication realized by an enterprise involves affecting all
participants of the market, especially current and potential customers.
Commonly used instruments of marketing communication include: advertising,
promotion of sales, personal selling, direct marketing, public relation and publicity.
Like large enterprises, the small enterprises researched
appreciate the significance of marketing communication. The most often used
form of communication is advertising and personal selling. Among various forms
of advertising, small enterprises most often use advertising in the form of
packaging, leaflets and advertising on the Internet. The most popular forms of
personal selling in small enterprises include discounts and gifts, whereas
among forms of public relations donations are relatively most often used in
practice. The least appreciated form of communication with the environment is
sponsoring.
Bibliography:
1.
Bielski I.: Współczesny marketing,
Wydawnictwo EMKA, Warszawa 2006.
2. Drzazga M.: System promocji przedsiębiorstw, PWE, Warszawa 2006.
3. Kotler Ph.: Marketing, Wydawnictwo REBIS, Poznań 2005.
4. Kotler Ph.: Marketing. Analiza, planowanie, wdrażanie i kontrola, Wydawnictwo Northwestern University, Warszawa 1999.
5.
Malinowska M.: System komunikacji marketingowej
przedsiębiorstwa, „Marketing i Rynek” 2002, nr 10.
6.
Nowicki R.,
Strużycki M.: Reklama w
przedsiębiorstwie, Difin, Warszawa 2002.
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