Impact of Changing Technology on Integrated Marketing Communications - Case Study Example

Impact of changing technology on Integrated Marketing Communications Contents Introduction 3 Discussion 3 Conclusion 9 References 10 Introduction Integrated marketing communications can be stated as transmission of brand message across non-traditional as well as traditional marketing channels and utilizing different promotional techniques in order to reinforce each other. IMC or integrated marketing communication combines different aspects of marketing and business together. American Association of Advertising Agencies firstly defined the concept of IMC in 1989. It was stated as an approach to achieve marketing campaign objectives. Through this platform different promotional mechanisms were incorporated so as to achieve desired goals and objectives. As defined, the 4 A’s in IMC approach encompasses different communication disciplines such as public relations, sales promotions, advertising, etc. These communication channels help to provide consistency and clarity forming a comprehensive communication plan. However all channels included in the plan convey standard brand message. Information technology has brought forth new changes into the traditional marketing strategies. Higher risks at market place and increasing competition has led to multiple mergers and acquisitions and this in turn has enforced companies to adopt the best marketing strategy which is innovative. In this study, the impact of advanced technology on IMC will be thoroughly analyzed since it is totally based on building relationships and communication. Discussion The exposure of information technology has enhanced the search for more cost efficient and effective methods in terms of communication. In present business environment growing competition has enforced upon organizations to maintain large customer relational base. Most of the traditional marketing techniques are considered to be obsolete since the focus is on delivering brand message at a faster rate. IMC appeared as an innovative approach in terms of marketing communication but changing conditions across the globe created various challenges. Market deregulation continued and there was even evolution of individualized segmentation of consumer preferences and tastes (Blythe, 2009). Some of the challenges are power shift in market place to retailers or wholesalers from manufacturers, rapid growth of marketing through database, traditional promotion shift, internet marketing growth, intense competition in field of relationship marketing, consumer enforcement, change towards value delivery from information delivery, media fragmentation and increase in advertising cluster. In the current scenario, individuals are largely dependent on information and technology (Brassington and Pettitt, 2007). The major reason behind this is lack of time to invest upon different companies offering wide array of products. In earlier times integrated marketing communications majorly indicated analyses of strategic roles of multiple communication platforms such as sales promotion, public relations, advertising, etc. However the entire scenario has changed with fluctuating demand of customers and evolution of technology based platform. IMC today means utilizing the most cost effective platform in order to communicate brand message across large group of individuals. It can be stated that concepts such as digital commerce and social media evolved with the growth of technology and proved to be a major turning point for many companies dependent on IMC for marketing communications (Evans and Foxall, 2009). In nearby future challenge for marketers is not gathering widespread information but shifting through statistics, messages and ideas, and incorporating them into an intelligible format which can be studied by company leaders. However changing technology has made job easier for marketers since it provides instant communication between employees and business executives located across the globe. It even helps marketers to identify the most appropriate marketing channel so as to reach to large base of customers (Foxall, Goldsmith and Brown, 1998). Information technology availability and the Internet have resulted into power shift more towards customers. Business as well as customers are provided with a platform through which they can shop and place orders. This in turn saves time that would have been wasted visiting a retail outlet. On the other hand changing technology has helped customers in terms of purchasing goods and services from any corner of the world. Integrated advertising is highly dependent on advanced technology since modern communication approaches are all technology based (Jobber and Fay, 2006). In earlier days, mass media advertising was essential for firms to communicate brand message. However this trend shifted in later years since there are devices such as VCRs, DVRs that enable customers to watch programs without any kind of commercials. Decline in major national networks is due to changing technology across the globe. IMC programs hence needed to shift or rather change its format so as to reach to large base of target audience. Technological changes have facilitated rapid increase in internet based social media usage. In the last few years, youtube, facebook and twitter users have grown significantly and this has enabled an individual to communicate with thousands of people located across the globe. Through these communication channels various opinions or views are exchanged regarding products and companies. Marketers on the other hand identify the hidden opportunity offered by technological advancements and try to grasp it. The traditional IMC mechanism has been altered to a great extent by many organizations in order to fit into changing technology of new world. It can be considered as threat by companies which might destroy their services or products, or can be stated as an opportunity in context of increasing market share (Solomon and Hogg, 2010). The certain growth in communication technology enforced marketers to design such an IMC paradigm where customers can be stated as its integral component. Communications basically helps firms to prosper and grow, develop relationships, strengthen organizational effectiveness, and even enable individuals to learn about one another. Some technologies like mobile phone, internet, customer relationship management system, social media networks, etc., affect the procedure through which companies communicate with potential customers. Technological advancements are bringing forth media landscape changes and messaging strategy type used by organizations. Business professionals and customers seek information and communicate with businesses and people from their phones and computers. Customers are more inclined towards interactive media and this helps them to collect on their own more product information (Ferdous, 2008). There is even a shift in work environments as people are texting through cell phones, possess virtual offices, or use social media site such as Pinterest, Twitter, Facebook and LinkedIn to communicate. With the change in media landscape, investment ratio in such communication channels also tends to change. As organizations finish developing their products or services they should communicate benefits and values of the offerings to potential and current customers. Integrated marketing communication approach is designed in a manner to deliver consistent message through organizational promotions to buyers. There are different media types covered in this approach such as radio, magazines, social media, TV and mobile phones. In present scenario young people are more aligned towards new communication technologies and it impacts organizational marketing campaign as more elements need to be taken into consideration. For instance, a young customer will prefer to receive promotions or advertisements through mobile marketing. In order to fulfil such demand, firms need to implement such technological infrastructure within its stores so as to deliver message to customers via cell phone or mobile gaming device which allows faster connection to Web (Eagle and Kitchen, 2000). On the other hand, Facebook advertisements have gained more popularity since social media usage has increased. Traditional media like newspapers, television and magazines usually compete with most popular media channels such as texting, internet, social media, mobile phones, YouTube and user generated blogs. Hence all marketing forms have come up with new set of innovations which is relevant and more desirable by customers. In overall context, changing technology has provided marketing opportunities to firms but simultaneously increased total costs. The rapidly changing aspects of technology even enforce organizations to maintain flexibility in its campaign so as to incorporate necessary changes. Figure1: Media marketing (Source: Laiderman, 2005) Figure 1, represents the varied number of marketing mix techniques that can be implemented by an organization so as to promote services and products. These approaches have witnessed turmoil since the focus now has shifted towards customer oriented features which is best offered through digital commerce, social media, etc. Technological complexities can be stated as major challenge for a firm. Marketers in recent times are faced with hurdles due to explosion in engagement channels and devices, and high consumer expectations. Modern marketing comprises of two camps one is those firms who are able to design intricate systems and possess sufficient intelligence to measure it, and the other is one who know about various technological aspects needed to be incorporated in its campaign but lack skills to leverage it effectively. Collecting metrics in present scenario goes much beyond tracking business and transaction objectives. Businesses need to create personal and consolidated views of customers so as to strategically leverage metrics. This in turn develops a large base of engaged and loyal clients. IMC framework previously was concerned with including all possible media channels but with rapid technological advancements there has been a need to identify transactions and client interaction. Building strong relationship is one of the challenges for marketers. Technology has helped in including innovations within IMC paradigm. Social media which is one of the most cost effective communication platforms is supported through advanced technology. On the other hand, ecommerce platform that helps a firm to reach out to global customers is totally based on technological framework. Even mobile apps that are highly fashion nowadays serve a communication platform for organizations (Kim, Han and Schultz, 2004). It can be stated that management and executives need to have sufficient knowledge regarding the technical aspects so as to ensure effective implementation. Thus technology does not only provide firms a platform to communicate with individuals located across the globe but even makes tasks easier. In the highly competitive scenario, companies can take advantage of printing ease and video technology in order to convey brand message to end users. Though there are technological challenges associated with innovative marketing campaign but if used appropriately it can prove to be most cost effective approach. Conclusion As per the study, integrated marketing communication is a mechanism to combine different media channels so as to deliver standard brand message. The major aim of organizations competing in business environment is to achieve success growth. This is only possible when a proper balance is maintained between coordinating and controlling. Technical advancements have incorporated innovative aspects in integrated marketing communication. These elements are basically in the form of evolution of digital commerce, mobile technology app, social media network, etc. Changing technology has provided a platform through which organizations can effectively communicate with customers located across the globe. Global reach enhances revenue margins of firms and even help in identifying respective competitive positions. The negative impact of changing technology is that it increases costs for the firm as implementing new approaches into the system would require certain flexibility and investment. Positive impact is mainly identified in the form of utilizing new communication path for delivering required message to end users. References Blythe, J., 2009. Essentials of Marketing. New Jersey: Prentice Hall Brassington, F., and Pettitt, S., 2007. Essentials of Marketing. UK: FT Prentice Hall. Eagle, L., and Kitchen, P. J., 2000. IMC, Brand Communications, and Corporate Cultures Client / Advertising Agency Co-Ordination and Cohesion. European Journal of Marketing, 34 (5/6), 667–686. Evans,M. J., and Foxall,G., 2009. Consumer Behaviour. New York: Wiley. Ferdous, A.S., 2008. Integrated Internal Marketing Communication. The Marketing Review, Vol. 8 (3), pp. 223-235. Foxall, G. R., Goldsmith, R.E., and Brown, S., 1998. Consumer Psychology for Marketing. London: International Thomson. Jobber, D., and Fay,J., 2006. Foundations of Marketing, 2nd Ed. London McGraw-Hill. Kim,I., Han,D., and Schultz, D.E., 2004. Understanding the Diffusion of Integrated Marketing Communication. Journal of Advertising Research, 44 (1), pp. 31-45. Laiderman, J., 2005. A Structured Approach to B2B Segmentation. Journal of Database Marketing & Customer Strategy Management, 13 (1), 64–75. Solomon, M.B., and Hogg, M. K., 2010. Consumer Behaviour: A European Perspective 4th Ed. New Jersey: Prentice Hall. Read More