Integrated Marketing Communication and Electronic Relationship - Essay Example

? Contemporary Issue in Marketing Contents Contents 2 Introduction 3 Integrated Marketing Communication 3 Electronic Relationship 4 Trust and Commitment 4 Conclusion 5 Recommendations 5 Reference List 8 Introduction Organisations in today’s world are facing a tough challenge of coping with the ever-changing needs of their customers. With the availability of technology and information, consumers have become more knowledgeable and smarter than ever. As a result, purchasing decisions have become much more concise, calculative as well as complex, where consumers go through a lot of information and data before making any final purchasing decisions. Hence, marketers have begun implementing integrated marketing communication tactics along with technology and persuasive communication strategies, in order to build loyalty and long-term relationships with consumers. The present essay will shed light on the contemporary issues faced by marketers in current business environment and the use of integrated marketing communication, technology and persuasive communication in order to create a niche in this ever-increasing competitive environment. Integrated Marketing Communication Even after its inception over a decade ago, IMC and its definition is still subjective and varies in different situations. Few of the terms, defining IMC in parts, may include orchestration, New Advertising, whole egg, relationship marketing, seamless communication, total branding, 360 branding, integrated communication and integrated marketing (Kliatchko, 2005). Regardless of definitions suggested by scholars and researchers, it is undoubted that this new approach to marketing and business has become an unalterable strategic operation and no big organization can afford to skip IMC (Kitchen and Li, 2005). The emergence of IMC can be attributed to the inevitable change in customer perception and demands as well as demand for a more systemized and coordinated concept of marketing communication. There has been a gradual shift in advertising and media. The overall coordination and dependence has become more complex giving rise to integrated marketing communication (Kim, Han and Schultz, 2004). According to Schultz and Kitchen (2000), the major elements impacting the practice and implementation of marketing communication include intellectual property, information technology and digitalization along with communication systems. Various studies and surveys on organizations, as well as consumers, have revealed argumentative theories as conclusions over the practice and viability of IMC. Eagle, et al. (1999) had studied advertising executives and marketers in New Zealand to understand the perception with respect to the concept of IMC. Two paradigm concepts dominated, where one considered IMC as a new concept, whereas the other touted it as an unremarkable contribution to the overall marketing. However, the final conclusion was that IMC is not a management fad. In fact, it can be considered as a fundamental change in the perception and practice of communication and marketing, among clients and advertising agencies. Electronic Relationship Electronic relationship is basically building and maintaining relationship with customers on the online platform. Electronic marketing and wooing consumers through digital media has become an integral part of any organization’s marketing and communication strategy. Karahanna, Agarwal and Angst (2006) have argued that in the present business and economic environment, it is very important to remain connected and updated, be it latest trends and offerings in the market, changes in industry or availability of new information. However, with the rising number of online websites and corporations’ fighting over online media space, it has become a cluttered zone. Consequently, organizations are implementing strategies such as, customer relationship marketing, database research and database marketing, in order to track customers and keep them satisfied. Trust and Commitment One of the major salient features in effectiveness of the present complex social environment is willingness of individuals to trust other individuals in the social unit. The adjustment, efficiency or even survival of these social groups depends on the absence or presence of similar trust. There has been a gradual shift from product marketing concept to relationship marketing concept, which is still in a developing stage. According to Sherman (1992), relationship marketing can be considered as those strategies and tactics which produce successful marketing results, rather than failures and also, distinguishes productive, relational and effective exchanges from those which are unproductive and ineffective. The importance of trust and commitment can be understood through various industrial examples. According to Morgan and Hunt (1994), loyalty is considered as a foundation for mutual commitment. Customer loyalty to specific brands results in repeat purchasing, which in time results in positive brand attitude. Other example is the manufacturing industry where loyalty can be achieved through superior performances. As a result, manufacturers are always trying to make a difference by offering superior benefits as well as promoting organizational values such as, green marketing, in order to establish an image of trustworthy manufacturer. Trust and commitment theory relies on the basic fundamental that presence of trust and relationship commitment is essential for the success of relationship marketing. Malhieu and Zajac (1990) have argued that trust and commitment are key factors that encourage marketers to resist short term and attractive alternatives and focus on long term benefits of enhancing relationship in current partners. It also encourages them to presence their relationship investment by collaborating with the exchange partners. At last, it also helps marketers to view potential and high risk actions as practical, given that trust and commitment will help them to believe that their partners will not be opportunistic. Thus, the presence of trust and commitment produces productivity, efficiency as well as effectiveness. It can also be said that trust and commitment leads to supportive and cooperative behaviours which can be considered as conducive to successful relationship marketing Conclusion It can be noted here that relationship marketing is based on commitment and trust and relationship marketing in turn comprises of both integrated marketing and technology. It is very evident that for a marketing strategy to attain success, it is essential to integrate and implement all the above concepts in situations and places where they are exactly required. Integrated marketing communication has thus proved to be extremely crucial and necessary in the current corporate environment. Firms that have understood this concept are increasingly and regularly implementing these strategies and consistently achieving sustainable competitive advantage over others, which have not yet understood the importance and value of IMC implementation. Recommendations The above research clearly suggests that current corporate environment has become extremely complex as well as sensitive to the external fallacies of marketing and communication. It is becoming extremely crucial for organizations to understand the right choice of integrated marketing communication which is compatible with an organization’s philosophy, culture and values. However, the above research has definitely made some clear recommendations regarding the strategies and tactics which can be used by most organizations in order to enhance their overall efficiency and level of performance. 1. Relationship marketing is the ultimate strategy for a long-term, stable relationship. Commitment and trust among business partners, clients as well as consumers is crucial for the success of any marketing or communication strategy implemented by corporations (Reichheld and Sasser, 1990). 2. Technology has been a boon as well as curse in new-age marketing. Technological developments such as, E-CRM, database marketing and information technology, have helped marketers in tracking down every little detail which can be helpful in enhancing an already established relationship as well as recovering lost relationships with consumers. However, the increasing clutter in digital space means firms will have to continuously evolve in order to create a differentiation in an increasingly competitive environment. 3. There has been a paradigm shift in the concept of IMC. The new-age integrated marketing emphasizes more on direct marketing and less on advertising. It believes in establishing a 24*7 connection with its consumers and becoming an integral part of their lives. Majority of the marketers give importance to sales promotions and other new-age digital marketing strategies such as, mobile phone applications and internet marketing. The happiness campaign is an appropriate example of the paradigm shift in marketing and communications concept. Marketers and other corporate professionals are undergoing a drastic change from planned economy to market economy and from closed policy system to a relatively open-door policy system. The integrated marketing campaign of Coca Cola implemented a 360 degree approach, including database marketing to identify the customers and places where the organization can launch its campaign. Information technology was used to both create and retain customer relationship through offerings such as, coupons, gift cards and free entries to various clubs. Advertisements on billboards and television ensured sufficient awareness and constant communication among consumers. The company also went ahead in its direct marketing strategy by launching a happiness truck, travelling around cities and exhibiting gifts at different locations. Other personal marketing concepts used by Coca-Cola were hug machines and happiness vending machine. Therefore, with the help of a complete integrated marketing approach, the organization was not only able to achieve high return on its investments, but also establish loyalty and long-term relationship with consumers. Two other companies implementing relationship marketing technological integration and IMC are Accenture and Apple. Accenture falls in the B2B category and the integration of IMC helped the organisation in reduction of costs, establishing relationship with suppliers and retailers as well as increase communication consistency. Likewise, Apple integrated relationship marketing, electronic marketing and IMC in order to enhance its overall efficiency and performance. Reference List Eagle, L., Kitchen, P., Hyde, K., Fourie, W. and Padisetti, M., 1999. Perceptions of integrated marketing communications among marketers and ad agency executives in New Zealand. International Journal of Advertising, 18(1), pp. 89–119. Karahanna, E., Agarwal, R. and Angst, C.M., 2006. Re-conceptualizing Compatibility Beliefs in Technology Acceptance Research. MIS Quarterly, 30(4), pp. 781-804. Kim, I., Han, D. and Schultz, D.E., 2004. Understanding the diffusion of integrated marketing communication. Journal of Advertising Research, 3, pp. 31-45. Kitchen, P.J. and Li, T., 2005. Perceptions of Integrated Marketing Communications: A Chinese ad and PR agency perspective. International Journal of Advertising, 24(1), pp. 51–78. Kliatchko, J., 2005. Towards a new definition of Integrated Marketing Communications (IMC). International Journal of Advertising, 24(1), pp. 7–34. Malhieu, J. E. and Zajac, D.M., 1990. A Review and Meta-analysis of the Antecedents, Correlates, and Consequences of Organizational Commitment. Psychological Bulletin, 108, pp. 171-94. Morgan, R.B. and Hunt, S.D., 1994. The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(6), pp. 20-38. Reichheld, F. and Sasser, W.E., 1990. Zero defections: Quality comes to service. Harvard Business Review, 9, pp. 105-111. Schultz, D. and Kitchen, P., 2000. Communicating Globally: An Integrated Marketing Approach. Chicago, Illinois: NTC Business Books. Sherman, S., 1992. Are Strategic Alliances Working? Fortune, 9, pp. 77-78. Read More