Integrated Marketing Communication - Case Study Example

Supervisor Is mobile marketing the future of advertising' Research Proposal submitted in partial fulfillment of the requirement of the course By: November, 2008 Table of Contents Introduction, Problem Statements and Research Questions 1.1 Objective and Purpose of Study 1.2 Importance and Significance of the Research 1.3 Limitations 1.4 Structure Summary of Literature Research Methods and Design Data Analysis Sample Research Instruments Ethical Consideration Plan and Milestones Introduction Problem Statements and Research Questions Technology and innovations are redefining and shaping every aspect of the global economy (Hooley 2007). Technology has become the order of the day. Today, with increasing consumer's preferences and changing role they play in the global economy, technology is being embraced by any organisation that must remain competitive (Hooley 2007). Optimize your understanding of this new environment. Learn how to capitalize on technology-driven changes, and how to seize opportunities where others see obstacles. Attain analytical tools so you can act more strategically, and competitively, as new developments arise (Kortler 2002, Hooley 2007). By definition, Integrated Marketing Communication (IMC) is a new competitive weapon and way of companies to draw maximum benefits from one shot. In other words, it is a concept designed to give users of the marketing mix an opportunity to make use of all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing a unified force, rather than permitting each to work in isolation (Kortler 2002). Varey (2001) considers integrated marketing as a paradigm shift towards more personalise, customer-oriented, technology-supported marketing systems. Under this new approach, it is recommended that different communications channels used by the company to communicate with prospective customers and customers be integrated. Such an action will result to a clear, consistent and compelling message about the company's product and services. The effect of which will be glaringly reflected on the sales record subsequently (Kotler. 2005). Integration of a company's marketing communication activities can avoid confusion and disaffection in the minds of consumers and buyers, offering a comfortable identity to customers and staff (Kotler. 2005). As marketing has shifted to a more one to one direction, marketers have employed different methods to get to their target markets. Mobile advertising is fast becoming the order of the day (Baker 2007). The current revolution of information and communication technologies is changing our business environment drastically: new technologies influence the way we organize our work and the environment in which we compete, introducing new rules and new relative powers among incumbents, newcomers and even entire markets. This complex, evolving environments are referred to as New Technology Playgrounds (Ace 2001). Against this background, this paper seeks to answer the following questions Is mobile marketing the future of advertising' What are the variables that motivate companies to use mobile advertising' How do mobile marketing differs from the other advertising methods' What has been the trend in mobile marketing in the last five years' What proportion of the advertisement budget is allocated to mobile marketing' 1.1 Objectives and Purpose of Study This paper focuses on the growing trend of mobile marketing as a new way of advertisement. In particular, the paper seeks to analyse and evaluate if mobile marketing represents the future direction of advertisement. Other objectives include To examine the salient features of mobile marketing as compared to the other advertisement method. The paper also aims at analysing mobile marketing trend in the last five years through an examination of the budget allocated towards mobile marketing. 1.2 Importance and Significance of Study This study aims at delineating the use of mobile marketing as future advertisement opt ions for companies. The study focuses on two banks and two retail outlets within the London municipality. This study has significant implications for current retail outlets and banks, customers. The significance of this study lies with the management to take appropriate action to effectively use these techniques to maintain these benefits arising from mobile marketing. For example, consumers who are value conscious may choose to shop at outlet stores and/or purchase things on sale in order to get a better deal on desired product. These consumers have a strong desire to maximize the ratio of quality received to price paid, value consciousness, and a desire to pay low prices, price sensitivity (Burton et al. 1998). To these consumers, brand imitations are a good alternative to the original because they are priced below the original brands. The study will reveals whether mobile marketing represents the future direction of advertisement used by companies. It will add to the growing literature on the importance of marketing techniques on the activities of a company. 1.3 Limitations It is acknowledged that this study will only be a small step toward a complete understanding of mobile marketing as the future direction advertisement. The study will be in the form of a case study focusing on two retail outlets and two commercial banks within the London municipality. As the study is focus only on four case study, drawn from the service sector, the results will lack triangulation and thus become less generalisable. I have considered limitation in relation to the natural explanations to which I have limited the study and the active choices to limit the study area. As interviewees will be asked to think backwards in time, the accuracy of their responses will be questionable, and subject to significant hindsight bias (Braun, 1999). 1.4 Structure of Work The introductory chapter of this paper introduced the main themes to be addressed, the research questions, objectives and importance of the study. Chapter two will focus on the review of current and relevant literature within the area of investigation. Chapter three, the research methods, provides all the methods used in collecting data and information. Chapter four provides the raw data and chapter five is data findings, analysis, conclusion and recommendation. 2.0 Summary of Literature Macro-Marketing Macromarketing adopts a holistic approach to the marketing construct and, as evidenced in the 'macro' prefix, connotes higher levels of aggregation. At these levels scientific inquiry is directed towards capturing, understanding and describing the holistic. essence. The holistic view can be operationalized using the systems approach and generally systems thinking. In defining macromarketing Bartels and Jenkins (1977, p. 17) wrote: Macromarketing has meant marketing in general and the data which depict marketing in general. It has meant the marketing process in its entirety, and the aggregate mechanism of institutions performing it. It has meant systems and groups of micro institutions, such as channels, conglomerates, industries, and associations, in contrast to their individual component units. More recently it has meant the social context of micromarketing, its role in the national economy. . . The above description of macromarketing, lengthy as it might seem, is neither a formal definition nor a rigid framework. What is of practical necessity is a checklist with which we can distinguish between macro and micro marketing. Despite the contributions of the founders and others, such a clear-cut and unambiguous set of criteria does not exist. As Fisk (1980, p. 7) put it: . . . no particular cluster of characteristics separate macro from micromarketing. . . a number of characteristics is commonly but not always present in phenomena that many investigators will accept as macromarketing. Proceeding from the above stated clarification of the distinction between macro and micro marketing strategies, it is evident that macro-marketing approaches are integral to the comprehension and successful exploitation of the variables which impact consumer purchase decisions. This is because, by its very nature, the approach is holistic. Micro-Marketing The literature on micromarketing explores this type of marketing under various names, such as segmentation, target marketing or one-to-one marketing. Market segmentation is one of the most important concepts in marketing. Many consumer markets have fragmented, increasing the need for sharply focused target marketing (Zilani, 2004; Zilani and Bellini, 2004; Jackson and Wang 2007). Marketers have responded to the need to get closer to these fragmented markets with strategies aimed at smaller and hence more inclusive, groups of consumers. Programs are now even directed to the individual consumer (Rouland 1992). Micromarketing involves a fusion between analytical techniques and traditional marketing activities (Zilani and Bellini, 2004). Examination of micromarketing in the greeting card industry explores the impact of micromarketing on product development and distribution (Rouland 1992). Sangamon, a company examined by Rouland, tries to match the best product mix with a store's specific customer base through the use of the company's Market Area Potential (MAP) Plus system, a comprehensive customer database. Product lines and displays at Sangamon are varied as the result of consumer-specific research that is directly linked to the company's micromarketing strategies. Rouland (1992) also investigates the role of micromarketing as related to ethnic markets in the beauty industry. As the minority population segments grow, ethnic markets are viewed as increasingly profitable segments, and present a true micromarketing challenge far retailers. Major retailers, such as Wal-Mart and Sears have launched their first ethnic campaigns. The challenge for these retailers is to match the appropriate product mix with each store's unique ethnic population. Micromarketing has provided marketers with the ability to develop highly effective consumer targeting strategies and sell the most applicable products to the most interested consumers. However, there is a consumer trade-off for marketers to have the ability to service consumers on an individual level. The trade-off is consumer privacy. Micromarketing and other consumer-oriented marketing strategies require more and more increasingly personal information about consumers (Goss 1995; Zilani, 2004; Zilani and Bellini, 2004). At a certain point, marketers learn so much personal information about individual consumers that the process becomes invasive and privacy is perceived to be violated. It is at that point that consumers become more defensive and elusive to marketers (Peppers and Rogers 2004). Promotional Techniques Still, the expanded marketing mix suggested by Booms and Bitner (1981) has been considered to be a valuable tool for marketing service. Payne and which leads to their expanded marketing mix for services. Figure 1: The 7P's Model Source: Payne and Clark, 1995 Payne and Clark (1995) argue that the traditional 4P's model is insufficient for service marketing because it does not consider the complexity of services. In addition, the 4P's model does not take into account the prevailing interrelations in service businesses. The expanded model can be utilized for service marketing sue to its cross-functional character and thereby is typically more concerned with "keeping the customer (relationship marketing) than catching the customer (transaction marketing)" (Payne and Clark, 1995, p.339). Having identified the expanded marketing mix as an important concept for strategic service marketing, it appropriates to address the three additional elements: People, processes, and customer service. However, in the previous chapter the human factor in service organization has been elaborated upon, and will therefore not be discussed in this section. Next processes and customer service will be investigated. 3.1 Sample A comparative case studies in the form of semi-structured interviews will be conducted, this study will use an embedded multiple case design (Yin, 2003). The aim of the proposed study is to see the growing trend in mobile marketing. Four service organisations will be chosen base on their activities. To effectively do so, the researcher requires an adequate sample at different stages. Following the sampling logic used by Peterson and Dant (1990), this study will be focus on frontline and middle managers of service organisation. 3.2 Data Collection All interviews are expected to take place at the respective offices or conference room of each marketing manager as will be arranged to their convenience. This will ensure a naturalistic setting, and allow the interviewees to be as comfortable as possible. Prior to conducting the main interviews, four pilot interviews will be administered. This will serve as a pre-test of the reliability and the validity of the questions asked, and will allow the researcher to make any improvements to the research design and analysis procedure (Berg, 2004). Any needed modifications to the interview schedule will be made to ensure the guiding questions are worded properly. The one-hour interviews will be audio-taped, and field notes will be used to keep track of the topics that have been discussed. 3.1 Data Analysis Primary data collected via the questionnaire will be transferred onto SPSS and quantitatively analyzed. Data collected via the interviews will be qualitatively analyzed. According to Saunders et al (2000) both quantitative and qualitative data analyses can be used in analysing data to arrive at reasonable conclusions. This study will therefore employ both quantitative and qualitative methods to accomplish its objectives Qualitative studies build theories from the research by identifying patterns and broad relationships in the rich, descriptive data (Pidgeon and Henwood, 2004). The responses of each interview will be transcribed by the researcher. The researcher will conduct thematic coding and content analysis using MS Word to examine patterns between and within each interview. To improve the quality and accuracy of the research, deviating viewpoints as well as converging patterns will be highlighted (Barbour, 2001). 3.4 Research Instruments The instrument used in this study is a semi-structured interview schedule. The study strives to uphold content validity as the guideline questions were developed from a review of prior research on mobile phone advertising. Additionally, four pilot interviews will be conducted to make any needed modifications to the interview schedule to ensure the guiding questions are worded properly. Semi-structured interviews allow the researcher to ask broad, open-ended questions where an informal, organised procedure is followed (Bryman, 2004). The purpose of the interview is firstly to find out organization perception of mobile advertising when compared to the other advertising methods. What percentage of their advertising budget is directed to mobile advertising, and how the budget has change in the past five years. This instrument allows the researcher to probe the interviewee for more descriptive or accurate responses. Furthermore, the interviewer can change the direction of the interview by asking the respondent to expand on an answer given, or by asking follow-up questions (Bryman, 2004). 3.5 Ethical Consideration In accordance with Sections 1.1 to 1.15 of the National Statement on Ethical Conduct in Research Involving Humans, the proposed research requires approval from the institutions to serve as case study. Approval is needed from the University's Faculty of Business and Law Ethics Committee. This study requires signed consent from the organisation for conducting research on their advertising methods and activities, as well as signed consent from interviewees for participating in an audio-taped interview. Participation will be voluntary, and there will be no risk or safety issues encountered by participants. Every effort will be made to maintain the privacy and confidentiality of participants, as they will not be identified in any reports arising from this project. Although certain responses will be namelessly quoted, to ensure anonymity, participants' names and the organisation's name will be replaced with a code, such as Interviewee 1. The field notes, audio-tapes and transcripts, will be destroyed 12 months after completion of the study. All information collected will be confidential and used only for the purpose of this research. 3.7Plan and Milestones The proposed study will be operationalised using the Research Plan outlined in Appendix 1. Table 2 shows the deadlines of the milestones for this study. Milestone Deadline Research Proposal Submitted to Thesis Committee 02/01/09 Research Proposal approved and Chapter one draft submitted 09/01/09 Chapter two drafted and presented for approval 17/01/09 Chapter one and two approved 23/01/09 Questionnaires and interview administration 13th /02/09 Chapter three completed 18/02/2009 Chapter four data analysis 25/02/09 First draft submitted 02/03/09 Feedback and corrections effected 10/03/2009 Final Project Submitted 15/03/09 Proposal Timescale and Milestone. This proposal is develop under the assumption that the thesis will be completed within 10 weeks. In the event of adjustment, the dates should be shifted forward. Where X = ONE Day, XX= TWO Days XXX= THREE Days Activity Week1 Week2 Week3 Week4 Mile stone Finalisation of introduction, problem statement and objective of study x Chapter one completed and approved. Reading of existing literature, initial contact with sample institutions x xx Literature review completed Finalisation of research methods, administration of questionnaires and conducting interview x xx All questionnaires dispatched and interview administered Data collection and data entry xxx Data ready for analysis Discussion with supervisor and data analysis and presentation x Submission date agreed upon and go ahead received for presentation Report writing xx Typing of report Report submission for review x Final copy of report submitted for supervisors review Correction and presentation of final report X Well Done Assumptions Weekly one-hour meetings with supervisor 14 day maximum turnaround time for supervisor 14 day maximum turnaround time for the researcher Contingencies of Research Plan Plan to submit after six weeks leaving 14 days for unexpected delays and issues References Ace C, 2001, Successful marketing communications, Butterworth Heinemann/CIM, Oxford. 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(2004) From loyalty cards to micro-marketing strategies: Where is Europe's retail industry heading' Journal of Targeting, Measurement & Analysis for Marketing, 12(3), 281-289. Read More