6.3. Marketing communications performance

Evaluating marketing communications

The effectiveness of marketing communications in targeting their audience and delivering the right message can be judged by a number of factors:

• Sales (volumes, values, and growth). Businesses will often set annual targets for sales levels in both absolute terms and in terms of growth. For example, a company may set an objective to sell 10% more units than last year and attain a total of 3 million pounds in revenues. Failure to achieve these targets may indicate a failure of marketing communications.

• Repeat sales. Firms which sell fast-moving consumer goods rely on repeat purchase of their products by consumers. For example, a firm that sells biscuits will try to use marketing communications to ensure that once the consumer has finished the packet, they will immediately want to purchase another one.

• Brand loyalty. Through advertising and promotion, a firm will try to make very similar products, like washing powders, appear different and better than their competitors. Creating a strong brand image with which consumers can identify will encourage repeat sales.

• Extending product life-cycles. Changes in consumer wants and spending patterns over time will mean that most products have a limited commercial lifespan. However, through appropriate marketing, demand for a product can be maintained and the lifetime of a product extended.

• Consumer awareness. Marketing can be judged as effective if it heightens awareness of the product among consumers. If consumers are able to remember a catchy name, logo, or advertising jingle for a product, then there is greater chance they will buy it.

6.4. Guidelines and controls on marketing communications

Marketing ethics

Ethics are the values, or moral code, of individuals and society, which govern behaviour and business conduct. In marketing there can be a temptation to make exaggerated or misleading claims about products and business practices in order to boost sales and make larger profits. Sometimes profits may be more important to a firm than ethics.

Standards and codes of practice

Keen to assure consumers of their concern for product quality and ethical marketing, some industries in the UK have drawn up voluntary codes of practice which member firms are encouraged to follow. In many ways these are useful additions to the marketing strategies of firms.

• British Standards Institution (BSI): the BSI sets quality and safety standards for a wide range of products. Products meeting the BSI standards are awarded the kitemark to indicate that they have reached the necessary standards. Products awarded the kitemark will have a competitive advantage over rival products which fail to display the symbol to the consumer.

• Professional and trade associations: Members of trades often set up professional associations in order to protect their interests and improve their reputation with consumers. Examples include the Federation of Master Builders and Association of British Travel Agents (ABTA). These organisations usually specify a code of practice governing the behaviour of members, and consumers can appeal to the associations if they feel that a particular code of practice has been breached.

• Independent Television Commission (ITC): the ITC regulates advertisements appearing on television and cable and has its own Code of Advertising Standards and Practice. Certain products and services, including cigarettes, spirits, private investigation agencies, and gambling, may not be advertised on TV. There are also strict rules about advertising aimed at children and about the use of child actors or models in adverts.

• Advertising Standards Authority (ASA): the ASA was set up in 1962 to monitor the standard of advertisements in the UK. It covers all advertisements in newspapers, magazines, posters, direct marketing sales promotions, cinema, video cassettes, and Teletext. The ASA safeguards the consumer by ensuring that the rules contained in the British Code of Advertising Practice are followed by any organisation that prepares and publishes advertisements.

The essence of good advertising

The British Code of Advertising Practice states that all advertisements should be:

• Legal, decent, honest and truthful

• Prepared with a sense of responsibility to the consumer and to society

• In line with the principles of fair competition generally accepted in business

As well as receiving and investigating complaints from consumers, the ASA advises advertisers, agencies, and publishers how to avoid misleading advertising. If an advertisement is found to be misleading or offensive, the ASA will act to have it changed or withdrawn. Failure to comply with its rulings may lead to adverse publicity in the ASA’s monthly report of judgements.

The work of the ASA is financed by a levy of 0.1% on UK advertising expenditures. One criticism, therefore, of the ASA is that it is funded by the very people it is attempting to police, namely the advertising industry.

Advertising on radio is regulated by the Radio Authority.