Marketing communications - Enterprise (0454) - Cambridge IGCSE

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Study Notes: Marketing Communications (IGCSE Enterprise 0454)

Welcome to the exciting world of Marketing Communications! This chapter is all about how enterprises tell their potential customers about their amazing products and services. Think of it as giving your business a voice—a very loud, very clear voice!

This topic falls under "Markets and customers" because you need to understand your audience before you can talk to them effectively. Getting this right is crucial for success, especially for your enterprise project!

What is Marketing Communication?

Simply put, Marketing Communication is the process of sharing information about a product, service, or enterprise with its intended market. It is often referred to as the 'Promotion' element of the marketing mix.

Why is Promotion so Important? (Recap from 8.1)

If you have the best product in the world, but no one knows about it, you won't sell anything! Marketing communication helps enterprises achieve several key goals:

Increasing Consumer Awareness: Making sure the target market knows your enterprise and product exists.
Establishing Brand Loyalty: Building a strong relationship so customers choose you again and again.
Increasing Sales/Market Share: Persuading people to buy your product over competitors' products.
Defending Position: If competitors launch a new product, you need communication to remind customers why they should stick with you.

Quick Review: Communication is the link between the product and the customer's wallet!

Methods of Marketing Communication (The Tools)

Enterprises have many tools—or 'methods'—they can use to communicate with their customers. Choosing the right tool depends entirely on *who* you want to reach and *how much* money you have.

1. Traditional Media (Broadcast and Print)

These methods generally reach a very large audience, but they can be expensive and difficult to target specifically.

Television (TV): Highly engaging (uses sight, sound, and movement). It reaches huge numbers of people, making it great for mass-market products (like *soft drinks* or *cars*).
Radio: Cheaper than TV, but relies only on sound. It is good for reaching local markets or specific audiences who listen to certain stations (e.g., *a builder advertising on a construction industry radio program*).
Cinema: Advertising before films. Effective for specific demographics (e.g., *teenagers watching a blockbuster movie*).
Newspapers and Magazines (Print): Good for detailed information and targeting specific interests. A *fashion magazine* is perfect for advertising clothes, while a *local newspaper* is good for announcing a new shop opening.

Did you know? The oldest and longest running form of advertising is often considered to be simple announcements or signage!

2. Physical and Local Media

These are often lower-cost options suitable for local enterprises.

Posters and Leaflets: Very effective for local campaigns (e.g., *posters promoting a school fair* or *leaflets offering a discount for a local pizza shop*). They are relatively cheap to produce.
Word of Mouth (WOM) and Announcements: This is when customers talk about the enterprise to their friends and family. This is incredibly powerful because people trust recommendations from people they know more than they trust official advertising.

3. Digital and Experiential Methods

These methods allow for much more precise targeting and two-way communication.

Online Communication and Social Media: This includes website ads, email campaigns, and platforms like Instagram, TikTok, or Facebook.
- Advantage: Allows the enterprise to track exactly who sees the ad and how they react. It is also often cheaper than TV advertising.
- Suitability: Essential for enterprises targeting younger audiences or those selling digital products.
Sponsorship: When an enterprise pays money to support an event, team, or cause in return for having their name and logo prominently displayed. *Example: A bank sponsoring a local youth football league.* This builds goodwill and awareness.

Key Takeaway: Traditional media offers wide reach; digital media offers precise targeting and interactivity.

Selecting the Appropriate Method (The Evaluation Skill)

For your exam and your enterprise project, you must be able to evaluate *why* a business chooses one method over another. This requires balancing the advantages and disadvantages based on the enterprise's specific situation.

Don't worry if this seems tricky at first! Just imagine you are buying a microphone. Do you need a cheap handheld mic for a small classroom, or a huge, expensive sound system for a stadium concert? The criteria are similar.

We can use these critical evaluation criteria when making a choice:

Evaluation Criterion 1: Cost and Availability

Cost: How much money does the enterprise have for promotion (the budget)? TV advertising is high cost, while distributing leaflets locally is low cost. Small start-ups usually need to stick to cheaper methods like social media or posters.
Availability: Can the enterprise actually access this method? Buying a prime-time TV slot might be impossible for a local business, but creating a social media page is instantly available.

Evaluation Criterion 2: Suitability for the Enterprise

Does the method reflect the image and size of the enterprise?

Enterprise Type: A serious financial consultant might use *professional magazine ads*, whereas a casual coffee shop might rely on *social media photos* and *attractive posters*.
Message: If the product needs a long, detailed explanation (*like a complex insurance policy*), print media (magazines or brochures) might be better than a quick 30-second radio spot.

Evaluation Criterion 3: Suitability for Reaching the Target Market

This is arguably the most important factor. You must communicate where your customers actually are!

If your target market is senior citizens, advertising on social media like TikTok would be unsuitable, regardless of how cheap it is. They are better reached via *newspapers or radio*.
If your target market is young professionals, traditional print media might be unsuitable. They are best reached via *social media platforms* and *online ads*.
If your enterprise only serves a local community, global TV advertising is wasteful (it is unsuitable for reaching your specific target market). *Local announcements* or *leaflets* are best.

Comparison Table Example

Here is how you might compare two very different methods:

Method	Advantage	Disadvantage	Best Suitability
Social Media Campaign	Low cost; excellent targeting; high interactivity.	Can be easily ignored or drowned out by noise; requires constant updating.	Enterprises targeting specific demographics (e.g., teenagers, tech enthusiasts).
National Newspaper Ad	Reaches a wide audience; trusted and professional image.	High cost; limited detail; static (not interactive).	Enterprises targeting a broad, older national market or publishing important announcements.

Common Mistake to Avoid

When answering exam questions, do not just describe the method (e.g., "TV advertising is expensive"). You must apply and evaluate: "TV advertising is too expensive for this new small enterprise, which has a limited start-up budget, making it an unsuitable choice compared to cheaper online communication."

Key Takeaway: The "best" communication method is always the one that is most effective at reaching the intended customer, while remaining affordable for the enterprise.