Integrated Marketing Communication and the Promotion Mix - Example

TRADITIONAL VS NEW MARKETING Student’s name Code & Course Professor’s name University City Date Abstract Social media has enabled communication amongst individuals across divergent platforms. Social media is a multifaceted element that allows companies to communicate directly with consumers and non-traditional sense where consumers can talk directly to each other. As a result; consumer-to-consumer communication has increased; effectively magnifying the marketplace. Social media marketing has emerged as a valuable marketing strategy for smart businesses. Just as friends gather in coffee shops, public pubs, different groups of individuals have gathered and connected through online social media platforms. These individuals depend on online network of friends for socializing, advice and sharing. Newly created platforms are offering more rich interactions between different users. The frequency and timing of social media has bifurcated company control. Contrastingly, it gives the producers a low degree of the control in integrated marketing communication. Information obtained in the social media is proffered since it offers an in-depth analysis of product through consumer encounters. Social Media Marketing 1.0 Introduction The internet has revolutionized communication among individuals, organizations and societies as a whole. The recent developments in social networks and web 2.0 technologies have brought numerous possibilities and formidable development for companies and consumers. Online social users have increased tremendously, where socialization has played a key role in business. Such communication technologies have offered media based sharing and forums; creating an environment where users can share ideas, services and products. This particular evolution has shifted traditional marketing strategies and has transformed marketing approach. As such, social media has influenced the relationship between marketers with their retailers, distribution channels and consumers. Consumers are accorded with overwhelming information pertaining specific services or products. With respect to McKinsey’s findings, it is advocated that when companies interact with other individuals, they increase information; that is formulated as an attribute of other attributes (Chui and Manyika, 2011). By understanding the vast amount of information on e-commerce websites, social media campaigns and forums, most companies are translating their marketing approach to online platforms. This is attributed to the fact that internet marketing is relatively cheaper, and it can be easily accessed by their target audience (Chui and Manyika, 2012). The invention of the internet has significantly changed, given its proffered communication platforms. Consumers are shifting from traditional advertisement and communicative channels such as radio and television, and are shifting increased information on media assertions. Additionally, consumers necessitate for an increased access to information, enabling them make effective post purchase decisions. Evidently, consumers have experienced increased usage of internet based messages that are dispersed through internet based media. Changing consumer preference over internet media, as described by Mangold & Faulds (2009, p. 458), has been an instrumental attribute that has influenced consumer behavior. Information acquisition and purchase behaviors, to name a few, constitute the anticipated consumer behavior in the market. In this respect, understanding usage of social media by consumers is important, as well as, how they behave when purchasing products. This retrospect paper, therefore, seeks to introduce social media penetration in offering new dimensions to internet marketing, as well as, discuss the effects of social media on consumer behavior. 2.0 Discussion 2.1 What is Social Media? Ongoing debates are yet to develop a universal definition of Social Media; as Social Media has transformed into new parardigm (Solis, 2010). Many studies have stated common purpose of social media. Dann and Dan (2011) have described the formation of social media through social interaction, communication media, and content. This paradigm has revolutionized information socialization. It has created new platforms that offer support for information sharing (Solis, 2007), hence facilitating an effective communication system that reaches out to a vast number of audiences. Information transmitted in this manner may be done locally but can potentially have profound impact. Diagram 1: Social Media definition Source: Dann and Dann (2011) who collect knowledge, opinions, and information through conversational media. Tentatively, social media facilitates information flow through encouraging contribution and feedback from interested parties. Contrary to traditional media, it enables a two-way conversation since it is open to participation and feedback (Mayfield, 2008). 2.1.1 Types of Social Media Different categories exist under social media, wherein, five distinct subsets are covered; i. Media Sharing Sites These are simply internet sites that enable users to provide content in the most conventional approach to other users. There are vast opportunities where users can engage with websites since such platforms allow persons to create their podcast and propaganda their channels through various subscriptions. One major element of media sharing sites is a “tag”. Simply put, it is a word that is designated to certain information that offer description about it (Zarrella, 2010, p. 81). This implies that its importance has to be acknowledged by different entities. ii. Blogs They are typified by a number of attributes such as blogrolls, and comments. Due to their vast outreach to numerous users, their posts have considerable impact on persons and brand reputation of products. iii. Microblogging This is a real time content network, whose functions is similar to blogs, but offers limited space (number of words) for every post. It allows users to transmit messages through short texted messages. For example, launched in 2006, twitter is one of the leading micro-blog in the internet. It currently holds over 140 million users (Twitter, 2011). A large number of companies use twitter to tap into influencers, customer and business prospects. In this respect, businesses are advantaged in building relationships, brand building and attaining offline and online marketing objectives (Weinberg, 2009). One of the most powerful approaches, known as retweeting, allows individuals to copy and paste what others have posted (Ingram, 2012). iv. Social Network Sites This is platforms where users can connect with others; this includes Myspace and Facebook. Social media as a term that represent internet sites used in linking different users that have similar interest (Weinberg (2009, p. 149). These platforms have certain similar elements, where, users can create an interactive profile; a list of suggested friends; view and list of the users made by others in a similar platform. Consumers view this as outlets that put forward a wealth of opportunities that establishes close relationships with brands that have divergent functions. A research survey by Empathica on U.S. consumer revealed that there are more than 6500 consumer (Dugan, 2012). The research shows that 55 percent of the consumers have liked a product on the Facebook page. On the other hand, 73 percent of the population asserts that their product choice is highly influenced by social media (Dugan, 2012). v. Review Sites Review sites are simply dedicated websites that provide review of a products or service. Most reviews are described by a group of people or individuals who voice different user concerns. Such reviews present a holistic perspective of the service or products in both positive and negative view. vi. Virtual world and Online Gaming Online gaming have transformed given technological advancement. Simulation have offered virtual world where consumers can evaluate products in a more precise manner. Through online gaming different players can exchange information about a specific gaming product- hence information sharing is easily achieved. 2.1.2 Trend of Social Media Social Media has garnered an increased number of users given its availability, communication approach and coverage. Contrary to traditional media, social media has tremendously gained significant number of users. It took nearly 13 years for the television to attain 50 million users, in which the radio attained an equivalent number of listeners in the same period. In 2009, Facebook, a social Media, registered over 100 million users; that gained over 450 million users prior to 2010. Given the rapid acceptance of social media, its importance has increased given the divergent development in various aspects (Sener, 2012; Civelek, 2009). More than half of the 2.4 billion internet users was registered under different social networks, by the years 2013 (Global Social Network, 2012). The statistics are summarized below. Table1: Statistics of Social Media Users Source: Global Social Network (2012) Continent Population Europe 519,512,109 Asia 1,075,681,058 Africa 167,335,674 North America 273,784,412 South America 254,924,744 Users at Sea 24,287919 The most prevalent social media platforms are; Google, Hyves, Hi5, Diaspora, Facebook, Cyworld, Jaiku, Myspace, Tagged, Tumblr, Unthink, Ibibo, Linkedin, Friendster, Twitter among others. Each month different social media platforms register approximately 800 million users, where at least 50, 000, 0000 videos are shared through twitter (Global Social Media Networks, 2012). With such compelling numbers, it is highly likely that it will form significant attribute of internet usage. In this respect, companies have redesigned new departments that are committed towards the design and control of the platform in various organizations levels. Research by SMG Knowledge (2012) shows that, 89 active internet users in Turkey research online for products prior to purchase. In this population, 62 % consider researching the products as the most paramount reason to use online platforms. Tentatively, 52 % asserted that a suggestion made by a foreigner contributed positively towards the brand’s recognition, whereas, 72 % comment on the products (SMG knowledge, 2012). 2.2 Integrated Marketing Communication and the Promotion Mix Integrated marketing communication seeks to consolidate divergent aspects of marketing. These attributes include; personal selling and direct marketing in producing a unified customer focused communication channel (Boone & Kurtz, 2007, p. 488). These communications are geared towards the achievement of the organization’s objectives. Nevertheless, increased Internet usage has resulted in a rising number of users in social media. Its emergence has facilitated a profound change in marketing. This media expands online information sources that can be shared by different consumers with an aim of improving education. Social media incorporates broad-based online forums, including chat rooms, consumer-to-consumer email, service rating, chat rooms, moblogs and discussion. The 2st century has been subjected to a dynamic change on internet based messaging, which is efficiently submitted through various social media outlets. These attributes have constituted a major part of consumer behavior that influences consumer opinions, attitude and post-purchase communication. However, academic literature and business press provides limited information that pertain to guidance in integrating social media into a company’s IMC strategies (Integrated Marketing Communications). As such, a significant number of managers lack sufficient information regarding the role of social media in an organization’s promotional efforts. Despite the magnitude of social media usage in increasing consumer-to-consumer conversation in the marketplace, divergent approaches to shaping such conversation are yet to be addressed. Social Media role in Promotion Mix Successful IMC strategies have been acknowledged in reflecting the company’s mission statement and contribution in attaining its performance goals. It is requisite that a company carefully coordinates its promotion mix, so that information is continuously disseminated in a proffered manner. For instance, the promotion efforts at GE (General Electric) or Procter and Gamble, reveals the fundamental values that govern such organizations; statements of strategic principles and their mission statement (Procter & Gamble, 2008; General Electric, 2008). The inclusion of social media by these organizations implies that the company is willing to attune the communication to the dynamic market. As such, the companies acknowledge the importance of social media on a company’s promotional and IMC strategies. In this respect, it asserts that attributes of social media as an interrelated promotional strategy. Moreover, it enables organizations to communicate with their consumers, and vice versa. Its first role is in line with the integration of traditional IMC approach. Simply put, organizations can talk to their consumers through online platforms. These media can be sponsored by the company or other organizations. Secondly, social media is unique in its inclusion of promotion related roles. Gillin (2007), points out in “The New Influences”, that conventional market knowledge presupposes that dissatisfied customers tell ten consumers. However, the present age of social media, she or he tells more than 10 million consumers overnight (Gillin, 2007, p. 4). The author recounts Vincent Ferrari’s encounter with an AOL customer service representative. His encounter was typically entrenched in persistent attempts, not to cancel the blogger’s account; that caught the listener’s sensibility. In response, over 300,000 listeners requested for the audio file that was downloaded by a huge number of followers. The story was viral and captured headlines in mainstream websites such as The New York Time, NBC and The New York Post (Gillin, 2007). Presumably, AOL Company was humiliated with the encounter, to say the least. Essentially, this platform enables communication between consumers, an improvement of the word to mouth approach. It is evident that uniqueness is embedded in the magnitude of communication (Gillins, 2007). Consumers have the capability of telling their encounters to millions of users, as opposed to telling only a few friends. Questionably, how can managers use such powers to improve the company? Whereas most organizations cannot directly control consumer communication, they are capable of influencing consumer-to-consumer communications. Arguably, social media is an improved and proffered element of promotional mix, since it integrates aspects of traditional IMC to develop an improved word-of-mouth approach. In this case, the organization’s management does not have control over the disseminated information. Tentatively, Social media emanates from a mixed media and technology origin that provides effective and instantaneous communication; that can employ multi-media formats. The growth of a highly educated consumer population enables such acceptance in the market. The consumer’s capability to communicate with each other complicates a company’s control over content dissemination. Presently, social media consumers have increased their control in accessing information (Vollmer and Precourt, 2008 p.5), articulates. This dramatic shift potentially influences consumer’s perception and reaction to market information (Ramsey, 2006). Additionally, managers are seeking new strategies for incorporating online platforms across different IMC strategies (Li & Bernoff, 2008). It is apparent that the traditional communication strategies must allow for the inception of new paradigms of promotion. 2.3 Voicing Consumer’s neeeds Emerging researchers believe that social media plays an imperative role in the present consumer decision-making process (Smith and Zook, 2011; Weber, 2009). Fennin and Stroebe (2008), through the information processing theory of consumer choice, point out that an increased number of internet advertising has risen in the recent past. From this assertion each marketer seeks to capture the consumer’s individual attention. Human beings have a relatively lower capacity to process information; hence it is challenging to understand the discrete messages. Conversations in the traditional marketing approach were one way; in which companies voiced their campaigns and the consumers listened. Large messages are often chosen by opinion leaders, which are necessarily not experts but have a considerable influence on the users. With respect to the communication model theories, the findings suggest that opinion leaders are linked to specific media content (Wuyts et al. 2010). Messages are interpreted by opinion leaders, based on their assertions and are increasingly active in finding appropriate information that can be shared to other users (Wuyts et al. 2010, p.283). The information is dispersed to large masses, through opinion leaders, whose acumen in media content is well-understood (Smith and Zook, 2011). Presently, online platforms places consumers in the middle of product conversations, where decisions can neither be made by few individuals nor sent to the consumers by brand owners. Evidently, consumers communicate to one another (C2C) and secondly back to the company (C2B). This form of communication enhances communication between opinion leaders and the consumers (Smith and Zook, 2011). When seeking information during the decision-making process, the information seekers are affected both internally and externally. Through Mangold’s new communication paradigms, the dependency of social media by the consumers have improved their ability to communicate with each other (Mangold and Faulds, 2009). This has considerable influence in buying behaviors where are well informed of powers vested to them Diagram 2: New Communication Strategies Source: Mangold and Faulds (2009) Feedback and information are continuously circulating in the online communities where information is easily accessible. Because an average internet user has 670 social ties, word of mouth conveys information much faster, in preference to offline communication strategy. 2.4 Traditional vs. New Communication Strategies Social media facilitates the flow of information which encourages feedback and contribution from interested persons. Tentatively, it is a two-way communication since it offers feedback and participation (Mayfield, 2008). In traditional approach, promotional mix was attuned in crafting IMC strategy, in which marketing agents were involved. Information flow in the traditional paradigm was limited to word-to-mouth and face-to-face communication among persons. In essence, it had limited impact on the marketplace dynamics (Mayzlin, 2006). Social media presents a powerful yet, influencing approach where consumers can exchange views pertaining certain products or services. Different scholars have articulated that online platforms offer two-way communication systems – receiving and exchanging information. It makes this approach a two-way process for engaging the audience and the brand in question (Mayfield, 2008; Drury, 2008; Weinberg, 2008; Weber, 2009). Oftentimes, information is imperative since it provides important information about the market. Nevertheless, companies encounter different challenges when creating an original and high-quality content. Arguably, Drury (2008) suggests that content advertising and branding must incorporate value added content that is geared towards the consumers, contrary to brash product placement. When the companies help consumers, they develop a trusted relationship that leads to brand awareness and growth. Besides, such an approach helps companies create a platform where true interaction can take place. American Express’s Open Forum, for example, has exceeded consumer expectation through meeting the customer’s needs first (Weinberg, 2009). Contrary to its traditional approach – focused on promoting financial offering to the community – it has considered the consumer’s needs and concerns through the provision of information on its services (Weinberg, 2009). Evidently, online platforms are a valuable tool when it comes to presenting consumer support systems. In this respect, brands such as Nike Women and Weight Watchers have showcased the viability of social networking sites in bridging people who face the same problems with products (Young Entrepreneur Council, 2012). 2.5 Social Media and Consumer Behavior On of the challenging features for companies and researchers is consumer behavior. More often than not, companies are bottlenecked in cases when the messages are not clearly understood by prospects or consumers. Presently, the accessibility and transparency of information affects consumer’s decision-making processes. Consumers are likely to find information attuned to their thoughts and avoid repeating the mistakes. Social media in the present marketing arena offer connection to individuals who share the same backgrounds and interests. As such, data from online platforms influences the consumer’s decisions when making predictions. Accordingly, social media marketing report postulates that the platform is a, not a mere fad where marketers are not inclined to, where 82 percent of marketers have a high expectation of social media (Stelzner, 2012). Since online social platforms are conceptualized as democratic and neutral, consumers are shifting towards different types of social media aimed at evaluating their information searches in making better decisions (Vollmer and Precourt. 2008). Diagram 3: Stimuli and Response Source: Constantinides and Fountain (2008) User generated content and reviews such as rated music, movies and books on social media, assimilates increased subjectivity and personal taste to the users; wherein the reviews have a dependable attribute that influences the consumer’s purchasing decision. Miller (2012) articulates that more than 25% of social media users suggest that they are attuned to an advertisement shared by different users in their social connection. Majority of consumers in social media are attuned to ads that are tailored with reference to their profile information. Consumers tend to trusts such information so that they can filter and evaluate the proffered information. Evans (2008 proposes a classic purchase funnel model, which points out the influence of online social communication on decision making of consumers. Diagram 4: Classic purchase Funnel Source: Evans (2008) From the diagram, consideration offers the connection between awareness and purchase. Therefore all included aspects, like applicability, brand reputation, and performance, creates a potential purchase. Contrary to the traditional approach that centers on an awareness perspective, social media brings together different connection between the consumers, awareness, and consideration, before purchase. Research by Google (2012) in U.S, U.K, German, Canada, Japan and Brazil, reveal that different market channels have different influences at different points in a purchase cycle. In the entire subject countries, social media is an instrumental tool in creating the consideration, intent and brand awareness. Many brands exist in the market, and each has channeled their marketing strategies towards consumer attention. Hence, a compelling video on YouTube or an interesting review attains a stage quo where prospects develop interests towards the product. Evans (2008) asserts that, social media is represented as a validation and prompt (awareness) in the stages of the consumer decision process. As previously discussed, online media offers a feedback loop, as the conversations are two-way communications. In this respect, social media has presented different changes on the purchase funnel through the incorporation of transparency and accessibility through user experience by other consumers (Diagram 4). Despite the declined use of traditional channels, it assumes a part of triggering awareness to consumers to a particular degree. Furthermore, Evans (2008) suggests the need to understand the importance of feedback in purchase validation strategy; where consumers can understand new products. Social media, therefore, broadens the purchase funnel with the inclusion of user-created content (Diagram 4). Word of mouth is a self-contained approach, which is increasingly witnessed in social media. On the other hand, advertisements in traditional approach can only delivery the intended message to passing readers. Word of mouth is a proffered way of making decisions; contrary to sending unwanted information, poised in traditional marketing. Social media has therefore impacted the way people view unbiased information when seeking and acquiring a wider range of products and services. From Philip Kotler’s famous statement, “Bad new travel faster than good news”, it is evident that negative consumer experience travels faster in the present day, given the proliferation of social media (Kotler and Ketler, 2009). This is in part of the increased freedom among users in message delivery systems that enhance information sharing. In the case, that negative press is prominent; consumers may seek to buy competing products that are typified by positive press (Weinberg, 2009). Therefore, social media platforms have increased the dimensions of communication, contrary to having a one centered communication approach. It is apparent that social media proliferation in the present market has two sides. While it empowers the consumers, as a result of information access, it has accelerated information flow that has improved global discussions, yet it has offered markets a valuable marketing tool. Such efficient communication has garnered consumer relationships in different consumer groups – exploiting different opportunities. Availability and accessibility of information have significantly changed consumer attitude leading to new consumer needs and buying behaviors. 3.0 Conclusion With an increased stimuli bombardment, consumers are cautious and an keen to seek information; hence it is important that marketers seek proffered communication channels. In essence, all available online communication platforms facilitate a two-way communication flow. The principle feature of social is that it has crafted an effective channel that supports the socialization of information; compelling marketers to change their outdated mindset. Consumers can acquire important information on particular products from another consumer; that surpasses the tradition polished slogans. The new period of social media, control of content, timing and information frequency is limited and is consistently being eroded. As such, information regarding a specific product emanates from different and large market place. This information provides vivid and in-depth information from individual user and can be channeled in different promotional mix. Contrariwise, different online communication platform improves or magnifies the consumer’s ability to enhance communication (Li and Bernhoff, 2008). Presently, new communication paradigms necessitates for the understanding and recognition of the power and imperative questions directed by consumers on different platforms. The effects of consumer-to-consumer interaction in the social media space in developing IMC strategies are outlined below; i. Consumers have shifted away from traditional sources of advertising. Tentatively, more power by consumers is demanded across different consumptions levels. They necessitate for information access (Viollmer & Precourt 2008; Rashtchy et al., 2007). ii. Consumers are shifting away to divergent forms of online communication platform in conducting their information searches, in order to enable easier decision-making process when purchasing a product (Vollmer & Precourt, 2008; Lempert, 2006). iii. The use of internet has turned to be an effective communication platforms enabling mass communication among different communities. Evidently, it is the most preferred source of information for working consumers, as well as, home consumers. iv. Online communication platforms are viewed as trusted source of information pertaining products and services, in preference to, traditional promotional mix (Foux, 2006). These changes have significantly affected the practicality and usefulness of traditional strategies, as a platform for enhancing IMC. Online communication platforms require a change in management attitude and assumption regarding IMC strategy creation. Marketers need to accept the reality that information is easily communicated to consumers through social media platforms. Secondly, through such communication, consumers are responding directly in ways that affect post purchase behavior. Thirdly, consumers are shifting from traditional aspects of the promotional mix, particularly in the reduction of their dependence on advertising sources of information in guiding their purchase decisions. The transparency and accessibility of social media have enabled easy access to relevant product information. 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