Whenever a new product is launched, companies commit resources to promoting that new product. Typically, such promotion focuses on advertising, although other types of promotion, such as discount offers, can also be used. Before a promotional plan can be developed, however, it is critical that the company understand exactly what it is marketing, and how best to frame that marketing effort. A company selling luxury cars, for example, is selling more than just a mode of transportation. That company is also selling image, performance, exclusivity, quality and many other intangible characteristics that contribute to the ability of the company to charge many times what basic transportation would cost.
The same is true for NEWCO, a company that is establishing a low-fare airline in Asia. NEWCO faces considerable challenges, including regulation issues as well as competition from well-established airlines, and must determine what it is selling in order to have a successful product launch. If the company focuses on product features that are not perceived by the buying public to have significant benefit, the airline will fail. Likewise, if the airline is not able to convince its consumers that using outlying airports will be convenient, it will face significant resistance in the market. This research explores the marketing mix for NEWCO and uses that information to shape an integrated marketing communication program for the organization.
Before a communication plan can be developed, the company must clearly understand the various elements of the marketing mix and how they will affect the company's communication plan (Garrett 6). The marketing mix is composed of four elements: product, place (distribution), price and promotion. The integrated communication program determines the audience, campaign and corporate identity based on this marketing mix, which includes the proposition and brand awareness on which the rest of the campa...