Integrated Marketing Communication for Small to Medium Enterprises - Research Paper Example

Integrated Marketing Communication for Small to Medium Enterprises research outline Introduction Literature Review Research Objectives/Ideas Conclusion References Introduction In the face of globalization, organizations have moved to integrate their marketing actions with the public, popularly known as Integrated Marketing Communication (IMC). In order to achieve a synergistic communications strategy, firms throughout the world have integrated their traditional marketing communications aspects such as sales promotion and advertising with new marketing channels. Within small to medium enterprises(SMEs), the limited marketing budgets has seen business organizations adopting various relationship marketing concepts in order to enhance customer loyalty, as well as retention. Throughout the world, Small to Medium Enterprises s have become a critical element of national economies. The emergence of internet marketing has revolutionized the internationalization of Small to Medium enterprises. Khosrow-Pour (2006) in his studies argued that small and medium sized enterprises have embraced internet marketing at a feverish rate. According to Khosrow-Pour (2006) more than 90% of SMEs in developed nations have web sites that enable them to reach a wider clients’ base. The New Digital era has enabled people to be more creative thus resulting to a growth in client traffic, as well as new business partnerships. Research shows that the adoption of internet technologies has the ability to enhance marketing practices. A study, which was done by Sharma, (2011) stated that SMEs that have adopted the concept of internet marketing have gained from continued customer satisfaction. On the other hand, failing SMEs do not bother to capitalize on the internet and hence lacks a competitive edge over their rivals. These SMEs are not bothered by the high preference their competitors give to innovation programs. In recent years, marketing communications have become exceptionally complex, and this has called for careful advertising arrangements to harmonize integrated marketing communications policies. The main goals of communications include creating awareness, influencing, reminding and creating value. With this regards, marketing managers should harmonize their promotional activities in order to create incorporated client-focused messages. They should strive to identify client’s needs and also, convey the image in all that they undertake, because their activities portray a lot about the product being advertised. This research recognizes the crucial role played by SMEs in the development of the global economy. SMEs are essential because they are the backbone for industrialization. They also offer job opportunities to many people across the globe and also, enable a nation to earn foreign exchange. The adoption of integrated marketing communication has significantly enhanced their performance. It is for this reason that the research determines the role of integrated marketing communication for the SMEs. Though several studies about integrated marketing communication exist, little effort has gone into studying their relevance in Small to Medium Enterprises (SMEs). An assessment of integrated marketing communication for small to medium enterprises is, therefore, overdue. The following research thus, focuses on integrated marketing communication for small to medium enterprises. The main objective of this research is to understand the role of internet based communications in the SMEs. The research will seek to analyze how SMEs can gain a competitive edge by using internet communications in the contemporary business panorama. The research will therefore, help to develop strategies for the effective implementation of integrated marketing communication for SMEs. Literature Review Advancement in information communications technology (ICT) has had a major impact with regards to the advertisement aspect of marketing. Harvie & Lee (2002) noted that most SMEs lack the necessary capital for advertisement. According to Harvie & Lee (2002) advertisement is a costly venture which is left to big organizations with a large capital base. Despite this, SMEs need to conduct promotional activities in order achieve business growth (Harvie & Lee, 2002). Small to Medium Enterprises have adopted numerous options of ICT in order to spur growth. According to Jones & Tilley (2003) the first and easiest form of ICT that is adopted by SMEs is the internet. Other alternative form of ICT includes the intranets, Wide Area Networks, Extranets among others. The advent of the internet has demystified communication because, communication via the internet reaches many people quickly and at a lower cost. Heneman & Greenberger (2002) in their studies argued that a firm needs to capture the hearts of clients in order to achieve its objectives. As such, marketing managers must constantly inform customers about the products that the business offers. As further noted by Harvie & Lee (2002) small business proprietors find it challenging to identify a cost-effective solution that would reach a wider audience faster, and with remarkable results. Therefore, they opt for internet advertising as a means of spurring their business growth. The available internet advertising for small to medium enterprises include ownership of website, email newsletters and the social media. Cruz-Cunha & Varajao (2011) identify that SMEs are also using paid search advertising in an effort to attract customers. Research also reveals that SMEs are moving from basic advertising to branded advertising (Dahlén & Smith, 2010). Barry & Charleton (2009) noted that the most recognized search engines for SMEs are Yahoo, Google and MSN. According to Barry & Charleton (2009) the use of search engines reduces the SMEs advertisement budgets. Barry & Charleton (2009) noted that SMEs are using social media such as Facebook and twitter to advertise their products. Odden (2010) reckoned that social media advertising strengths advocacy of the current clients, attracts new clients, enhances brand visibility on the cyber space and also, allow SMEs to respond quickly to clients demands. The increased usage of internet communications has enhanced the internationalization process models for small to medium-sized businesses across the globe (Cruz-Cunha & Varajao, 2011). Internet normally eliminates the need for middlemen. The impact of internet on SMEs have been highlighted by Doole, Lowe & Doole (2008) who stated that the increased use of the world wide web enables SMEs to adapt to global environments. According to them, the adoption of the internet has provided SMEs with a level plating field as far as global competition is concerned. Doole, Lowe & Doole (2008) in their studies stated that Internationalization process refers to the process of exposing business organizations to global environments. Thus, firms invest beyond their local market by developing new marketing plans. According to Doole, Lowe & Doole (2008) the process of internationalization enables SMEs to acquire foreign market concepts. The internet also plays a crucial role of enabling SMEs to have a competitive edge in international markets as a result of such activities as research and design, international sales promotion, marketing intelligence among others (Doole, Lowe & Doole, 2008). A research, which was done by Segal-Horn, Segal-Horn & Faulkner, (2010) suggested that the adoption of internet technologies by SMEs has the effect of enhancing the firms’ global sales. The adoption of internet technology by SMEs has enabled them to gather key customer information which in turn facilitates marketing segmentation, value creation and differentiation. As such, SMEs have moved towards a client relationship marketing approach, they act on information to build profitable ties with their clients. The adoption of internet by SMEs has thus enabled them to attract and retain clients (Levy & Powell, 2004). Manyika & Roxburgh (2011) emphasized that whereas the clients may not be precise in estimating the cost, their main concern is to capitalize on their benefits at low costs. The adoption of the internet thus enables SMEs to improve their processes, which in turn lead to greater customer satisfaction. Manyika & Roxburgh (2011) in their studies argued that the adoption of the internet enhances efficiency in resource allocation. He further argues that the adoption of the internet also eliminates the cost associated with voice communication because the firm communicates with its clients by the click of a mouse. The faster processing of information plays a significant role of enabling an in depth product description. Clients are usually dissatisfied when the product’s performance does not meet their expectations. According to Manyika & Roxburgh (2011) reduction in costs has an effect of increasing the firms’ productivity. According to them, the time taken by a firm to process a purchase order via the internet is much less compared with the manual processing. By using the internet, the firm processes such documents as purchase orders and invoices faster and error free (OECD - Organisation for Economic Co-operation and Development, 2002). The number of employees required to process such documents electronically is also minimized (Kuwayama, 2001). Kuwayama (2001) noted that employees are highly unpredictable resource in an organization because, their can work patterns vary depending on such aspects as level of motivation and health status. The usage of internet technology will thus help to streamline the number of staff and hence save costs on human resources (Kuwayama, 2001). The adoption of integrated marketing communication platforms based on internet technologies offer SMEs particularly in low developed countries a new exchange mechanism where they can compete well in the global market (Sharma, 2011). In order to stay competitive, SMEs have broadened the consumer choices (Gray, 2006). The internet usage by SMEs allows them to make information concerning products to be readily accessible thereby enabling clients to make informed buying decisions. With this regards, clients have an upper hand on how products design as well as services provision. This leads to greater satisfaction and loyalty (Berghout, 2012). Jones & Tilley (2003) identified that satisfied clients normally offer numerous benefits to the SMEs. They tend to be price responsive, talk positively about the firm and also remain loyal for a considerable period of time (Nwankwo, Gbadamosi & Gbadamose, 2011). Research objectives/ideas The adoption of the internet has become a significant and competitive resource for small to medium –sized enterprises. Many SMEs throughout the world have overwhelmingly institutionalized integrated marketing communication culture. As observed, the adoption of internet technologies has contributed to a large market share. SMEs have learnt what internet technologies can do for them in the race for profitability and market share. SMEs that have not embraced the culture of integrated marketing communication normally have a shrunk market share. SMEs that adopt internet technologies usually delight their clients by meeting their expectations. As client satisfaction increases so does loyalty. Putting this into consideration, this research is highly imperative because it provides sound knowledge regarding integrated marketing communications. Moreover, the research identifies among others; the role of internet in enhancing client satisfaction, importance of placing more emphasis on in internet technologies, how SMEs can achieve a competitive edge among others. This research draws the following specific objectives necessary to come up with important and convincing facts that would form a starting point of conducting an analysis and drawing conclusions; To determine the present perceptions of small to medium-sized enterprises as far as integrated marketing communication is concerned. To establish the extent of adoption of internet technologies by Small to medium sized enterprises. To determine the benefits gained by SMEs from the use of internet technologies. To establish factors that hinder SMEs from fully embracing internet technologies. Conclusion This research has shown that SMEs, have taken cognisant of the need to meet the client’s expectations. The global markets coupled with intense competition in the market place have been in the vanguard of driving integrated marketing communications for small to medium enterprises. These factors have forced SMEs to take a serious look at the imperative of internet adoption. Small to Medium Enterprises (SMEs) are now coming face to face with the market, realities namely; the acceptance that the client is not a burden to the business. Clients are the reason that the Small to Medium Enterprises exist. Days when SMEs dumped their products in the consumer’s lap waiting for them to appreciatively accept the proffered products are gone. Today’s’ business panorama is the ‘Age of the client’. Customers are the one who provides SMEs with resources to keep the in business. On their part, SMEs must gear all their efforts towards delighting clients. The accepted wisdom amongst many scholars is that Integrated Marketing Communication enables SMEs to gain competitive advantage by enhancing a firm’s transactions and also, increasing the client’s satisfaction. Internet adoption is the only way SMEs can create new markets as well as develop old ones. SMEs, which expect to sustain their competitive position, must be at the vanguard of the integrated marketing communication wave. References Barry, C & Charleton, D.2009.Business and Telecommunications Communications in Computer and Information Science: In Search of Search Engine Marketing Strategy Amongst SME’s in Ireland.Vol:4. pp 113-124. Berghout, E.2012.Leading Issues in ICT Evaluation, Volume 1 .New York: Academic Conferences Limited. Cruz-Cunha, M & Varajao, J.2011.Innovations in SMEs and Conducting E-Business: Technologies, Trends and Solutions. New York: Idea Group Inc (IGI). Dahlen, M & Smith, T.2010.Marketing Communications: A Brand Narrative Approach .Hoboken: John Wiley & Sons. Doole, I, Lowe, R & Doole, I.2008.International Marketing Strategy: Analysis, Development and Implementation .Ed:5.London: Cengage Learning EMEA. Gray,C.2006.Impact of e-Commerce on Consumers and Small Firms. Farnham: Ashgate Publishing, Ltd. Harvie, C & Lee, B.2002.Globalisation and Smes in East Asia: Cheltenham and Camberley: Edward Elgar Publishing. Heneman, R & Greenberger, D.2002.Human Resource Management in Virtual Organizations. North Carolina: IAP. Jones, O & Tilley, and F.2003.Competitive Advantage in SMEs: Organising for Innovation and Change .Hoboken: John Wiley & Sons. Khosrow-Pour, M.2006.Emerging Trends and Challenges in Information Technology Management: 2006 Information Resources Management Association International Conference, Washington, DC, USA, May 21-24, 2006, Volume 1. Pennsylvania :Idea Group Inc (IGI). Kuwayama, M.2001.E-Commerce and Export Promotion Policies for Small- and Medium-Size Enterprises: East Asian and Latin American Experiences. Washington D.C: United Nations Publications. Levy, M & Powell, P.2004.Strategies for Growth in SMEs: The Role of Information and Information Sytems.Oxford: Butterworth-Heinemann. Manyika,J & Roxburgh,C.2011.The great transformer: The impact of internet on economic growth and prosperity. New York: Mc Kinsey Global Institute. Nwankwo, S, Gbadamosi, T & Gbadamose, and T.2011.Entrepreneurship Marketing: Principles and Practice of Sme Marketing .London: Taylor & Francis. Odden, L.2010.Opportunity for Better B2B Marketing with Social Media & SEO .Accessed from < www.toprankblog.com/2011/04/b2b-marketing-seo-social> OECD Small and Medium Enterprise Outlook. 2002 .OECD Small and Medium Enterprise Outlook 2002.New York:OECD Publishing. Segal-Horn,S ,Segal-Horn & Faulkner,D.2010.Understanding Global Strategy.London:Cengage Learning EMEA. Sharma, S.2011.E-Adoption and Socio-Economic Impacts: Emerging Infrastructural Effects. Pennsylvania: Idea Group Inc (IGI). Read More