Marketing Dissertation – The Impact of Promotional Mix Elements on Consumers Purchasing Decisions – A Case Study of M&S
Marketing Dissertation Title: Impact of Promotional Mix Elements on Consumers Purchasing Decisions. The promotion mix is one of the major elements of 4ps of marketing and day by day companies seem to be giving a lot of emphasis on the promotion mix. The main objective of using the tools of promotion mix is to influence the consumer’s purchase decisions. Influencing the purchase decisions of consumers is not an easy task as there are many variables like emotional variables that turn into brand loyalty or brand attachment. The way a customer beholds at the product greatly depends on the promotional mix. At first, a potential consumer must know there is a product or service that can fulfill the needs of the consumer after consuming the product.
The potential consumers are approached with promotion mix as from making consumers aware of keeping track of each and every consumer is done with the help of elements of the promotion mix. Thus, the issue related to the promotion mix elements’ effectiveness on the consumer purchasing process is quite a burning question to be answered.
Promotional Mix Dissertation
For this dissertation, the research issue is related to the effectiveness of the promotion mix on the consumer purchase decision as companies adopt promotion mix to influence the purchase decision of the consumers. The literature review has helped the researcher to identify the dependent and independent variables. The dependent variable is consumer purchasing decision. The independent variables are advertising, public relation, personal selling and sales promotion.
The way the research is designed and the results to a have a solution of the research problem identify the positivism as the research paradigm for this research work. This paper is conducted by deductive research approach. The research is a survey based case study and consumers of M&S are interviewed with predesigned questionnaire.
Dissertation Objectives
To critically find out the independent variables in the promotion mix of M&S
To critically investigate the variable in the promotion mix of M&S
To critically find out the relationship between the dependent variables and the independent variables
To find out a realistic set of recommendation on the findings of the research
Dissertation Contents
1: Introduction
Problem Statement
Background of the Research
Research Question
Rationale for the Study
Research Issue
Reasons behind the Issue
Research Aim
Research Objectives
Hypotheses
2: Literature Review
Definitions
Promotional Mix
Consumer Purchase Decisions
Advertising
Public Relationship
Sales Promotion
Personal Selling
The Breakdown of Promotional Mix
Types of Advertising and Advertising Media
Types of Public Relationship Management
Types of Sales Promotion
Types of Personal Selling
The Influence of Promotional Mix on Consumer Purchase Decisions
Conclusion
3: Research Methodology
Research Philosophy
Research Approach
Research Purpose
Research Method
Research Strategy
Data Selection
Ethical Considerations
Limitations of the Study
Future Scope for the Study
4: Results
The Measures for Central Tendency Measures
Coefficient of Correlation
Regression Analysis
Reliability Test with Cronbach’s Alpha
One-Way ANOVA
5: Findings of the Analysis
6: Conclusions and Recommendations
Conclusions
Recommendations
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Since the beginning of time, men and women have always remained fashionable in one way or the other. From clothing made out of loin to cloaked attire, from gown and coats to the fascinating accessories of the 19th century, fashion has indeed been prevalent in every season from year to year hence renovating their way of dressing from time to time (Miller & Mills, 2012, 1471-1479). Brand Equity Fashion in the past, can be also contributed to the elite fantasies held by people, right up to the mid-1850s, when the first Paris based British professional fashion designer emerged. Initially, Paris was the only place that reined the fashion industry, however soon other names such as Milan and London caught up, introducing their own line of fashion niche. If the fashion industry remained stagnant then it would have already become unstylish and died. Subsequently, today there are endless designs and customer segments, prevalent within the fashion sector (Miller & Mills, 2012, 1471-1479).
In today’s fast paced world of fashion, the success of global retailers depend a great deal on their ability to be able to put the right items in the right style or size in the hands of the consumers but at the right time. This may seem to be a simple concept but can at times be quite tedious to execute (Li, Li & Kambele, 2012, 1516-1522).
After meeting with Andrew Ramroop and hearing the success story, I have decided to follow his example and penetrate the international market with my newly established fashion clothing and accessory brand, called El Lujo.
SWOT Analysis
SWOT analysis, a form of strategic planning, is ideal for volatile fashion industry. The SWOT analysis evaluates “strengths, weaknesses, opportunities and threats” involved with the set business objectives (Barney, 2008, 99-120). They consider both internal and external factors. The analysis then defines the favorable and unfavorable factors and their potential impact on the ultimate goal.
A SWOT analysis covers four areas of consideration. First, the “strengths” take into account the internal attributes that positively influence the business objective. The second area, “weaknesses”, identifies possible weak points within the control of the company which may result in a negative outcome (Barney, 2008, 99-120). The third category, “opportunities”, analyses the external conditions that favor the achievement of the final goal. Finally, there are the external “threats” that are beyond the control of the company to be assessed.
Strengths
Some of the strengths of El Lujo include clearly manifested competence, adequate financial resources, the high competition, a good understanding of consumers, clearly articulated strategy, the use of economies of scale, its own unique technology, a reliable distribution network, high fashion R & D and etc.
Weaknesses
Any unusual or unnecessary cost, lack of reputation in the high-end fashion market or lack of presence in a particular region are considered as weaknesses. The loss of certain aspects of competence, lack of access to finance, lack of analysis of information about consumers, the weakest market participants, lack of a clear strategy, inconsistencies in its implementation, high costs of production, obsolete technology, the loss of depth and flexibility of management, weak distribution network, weak positions in R & D etc. are all weaknesses that El Lujo may face.
Opportunities
Entering new market segments, expanding the range of luxury goods, complacent competitors, the reduction of trade barriers, enabling economic, political and social conditions, resource availability, etc. are the opportunities that El Lujo will be considering as opportunities for business profitability (Barney, 2008, 99-120).
Threats
Economy and the politics are the principle threat to a fashion brand. Political instability in the region of raw materials supply, trade embargoes, and financial crises result in limited consumption expenditures etc. are some of the threats to the accessibility of raw materials, distribution, exposure of brand and brand recognition, and consumer buying (Barney, 2008, 99-120).
Marketing Analysis
Fashion orientation is considered as an important source of new market research related to the worldwide clothing industry. Consumer behaviour, lifestyle, and shopping purpose can affect activities throughout the fashion supply chain. However, the fashion industry is an increasingly global business with considerable variations in the cultural, social, and economic aspects of the participants (Cadogan, 2009, 119-130). Consequently, the practice of fashion marketing is not uniform at a national or international level, and differences are necessary to appeal to different subcultures. That’s why researchers and managers have been paying increasing attention to the effects of acculturation on fashion orientation. Most fashion designers allocate 20-30 percent of their expenditures to marketing efforts, partly funding customization of marketing campaigns to appeal to different subcultures(Li, Li & Kambele, 2012, 1516-1522).
Luxury fashion brands have become a powerful force in the world and have grown not only in numbers, but in terms of influence and visibility. They have, “moved from backstage to center stage in world market, and are exerting their power and influence in every aspect of international relations and policy making” (Cadogan, 2009, 119-130). Today, international fashion brands play a major role in reducing boundaries and creating international successful brands. Although very numerous, the international business sector is highly consolidated with the largest 20 international organisations accounting for 50% of revenues and sales (Gilbert, 2007, 25-26).
Brand Equity
Fashion advertising studies have revealed that consumers have definite preferences for advertising. According to findings by Bowman, (2010); apparel styling affected evaluations of advertising appeals. Bowman, (2010) additionally observed that high self-monitoring subjects were willing to pay more for items if the item was publicized with a picture, and were all the more ready to buy an item if the image appeal was promoted. Low self-monitors responded all the more positively to item quality oriented advertisements and were willing to pay more for items if they were publicized with a quality orientation. Low self-monitors were additionally more eager to pay more if the item be promoted with a quality orientation, and all the more ready to buy an item if it had a quality claim.
Brand Equity
In addition to the challenges of increased competition, international organisations are facing a crisis of brand equity. Bowman, (2010) suggests that at the root of this crisis, is the extent to which international organisations lack brand representation and accountability to the consumers. In addition, critics argue that international organisations lack proper branding strategies to justify their products and services in terms of values.
Current environments with high levels of globalization have led to large enterprises manufacture their products in less developed countries to reduce their production costs, while firms in developing countries do in other developed countries to take the prestige of those markets (Barney, 2008, 99-120). From the demand side, consumers rely heavily on extrinsic signals, such as trademark, perceived quality or price in the when evaluating products. Under such scenarios, it is increasingly difficult to achieve sustainable competitive advantage by Porter. One of the attributes that have the potential to achieve sustainable competitive advantage, both domestically and internationally, is the country of origin or the country image of a product for (Barney, 2008, 99-120). Therefore, it is becoming of greater interest to countries to implement marketing strategies would achieve a position against other countries. Furthermore, include the strategic role played by brands to the great diversity of offerings undifferentiated, saturation in the media and the influence of new technologies information (Azuma & Fernie, 2003, 4). The increase marks the perceived usefulness and the desire to possess them, are indicators of safety for consumers and sources of origin, since activated signs of its origin among consumers when they come into contact with the same (Li, Li & Kambele, 2012, 1516-1522).
Li, Li & Kambele, (2012) suggests that luxury fashion brands like El Lujo have three strategies open to them: incremental change (which he suggests may be “too little too late”); global marketing, defined as the aggressive marketing of the organisation’s brand; and third, new branding strategy, that leverage change by working in collaboration with “markets, businesses, ideas and attitudes.” It is this third option that Li, Li & Kambele, (2012) consider potentially the most attractive route forward for international organisations.
To focus on the impact of a particular segment of the market, luxury fashion brands like El Lujo must use commodity branding and develop appropriate and develop the theme of Brand Equity or Brand Value. The strategic management of brands is to design and implement marketing activities and programs intended to create, measure, and manage brands to maximize value.
One of the key concepts of this process is called “brand equity”, defined as the value added which provides products and services. This value is reflected in how they think, feel and act consumers regard to the brand, or price, market share and profitability that creates the brand for company (Aaker & Joachimstaler, 2000, 347-356). For branding strategies to be successful and generate brand equity, consumers should be convinced that there are significant differences between brands of the same category products or services. This is the reason for the branding: promote the differentiation of a mark for its competitors and its products very similar (Aaker & Joachimstaler, 2000, 347-356).
To achieve high brand value it must achieve a series of attributes that are indicative of their strength. (a) “Differentiation” refers to a strong brand should be unique and distinguishable from other brands by consumers. (b) The “relevance” indicates the attractiveness of the brand: to what extent my brand communicates attributes important in satisfying the desires of my customers? (c) A strong brand should achieve “high estimates “, a high degree of appreciation, affection and respect that the brand receives. (d) The brand strength is associated with a “high knowledge” and level of familiarity and intimacy of consumers with the brand. Finally, a mark must be achieved through communication symbols and a (e) shows strong associations Identity positive light on what it means and what the brand promise to consumers (Aaker, & Joachimstaler, 2000, 347-356).
A strong brand is not just about trademark, logo or name. Branding is a procedure that relates to communication, company strategy and target market (Abell, 2008, 45-58). There are many elements attached to branding such as images, association, culture and stories. The elements of brands can be inspired by consumers and Internet users. Strong brand is exists among consumers, as it is hard for individuals to switch from one strong brand to another brand and abandon their original conventions. Due to the nature of strong cultural collectivism in China, the social context of brands becomes an important characteristic (Abell, 2008, 45-58).
Strong brand can help consumers by reducing the perceived risk in their purchase behavior. Perceived risk is about the acceptance of uncertainly and the complex result of purchasing product or service (Abell, 2008, 45-58). There are 6 dimensions included in perceive risk: “performance, financial, opportunity/time, safety, social and psychological risk” (Azuma & Fernie, 2003, 4). Strong brands can give consumers a promise of suitable value on the goods or services they offered. Through getting this promise consumers can make a stronger purchase decision on the strong branded products.
Creating a strong brand can also drive shareholder value. The initial target of the boardroom is to create and sustain shareholder value, and get return from the competition process. One way to achieve this target is to build a brand with strong brand equity. Tim Ambler proposes: “Brand equity is the reputation assets that any successful business builds in the minds of customers and other stakeholders” (Azuma & Fernie, 2003, 4). It is also one of the reasons that capital in the market is higher than the value that set before. The future financial performance of a brand can be predicted according the strength of its brand equity.
Marketing Mix
Product: Marketing facets of products as per the details of their products or services, and how it identifies with the needs of consumers. The extent of a product mostly incorporates supporting components, for example, guarantees, warranties and product quality that is principally focused.
The wide range of fashion product by El Lujo is safe to use and are produced through natural resources that focuses the beauty of the customers. The fashion products are more focused and are taken into account through the advertisements and promotional strategies. The products of the body shop are more focused on the quality.
Price: This means the procedure of price fixing of product, together with discounts. The price does not require to be fiscal, yet it may be what is traded for goods or services, for example, time, attention, or energy.The price remains a fundamental component of the marketing mix given its impact on market share and profitability. Despite popular belief, fashion products do not cost more than conventional products, and are therefore addressed to a wide audience. It takes on average 500€ to 1000€ for the fashion products to be purchased by the customers, who love them. It is found that the economical premium brands are even less expensive than their conventional counterparts.
Placement: This involves to how the goods reach the consumers, for instance, position of retail or point of sale. The third P has additionally been called Place, which refers to the channel which is used to sell a product or service (e.g. retail versus online), which geographic area or market, segment (young generation, families, business, and so on.).
Promotion: The promotion activities consist of sales promotion, advertising and personal sales. Branding alludes to the different strategies for promotion of product, brand or organization. Distribution systems are turning out to be more diverse, they are no more restricted to traditional clothing store and accessory store, but reach out to all circuits: perfumery, beauty products, online stores, etc
References
Aaker, D. A., & Joachimstaler, E. (2000). Building strong brands. New York: Free Press. Aaker, J. (1997). Dimension of brand equity personality. Journal of Marketing Research, 34, 347-356
Abell, D. (2008). Strategic Market Planning: Problems and Analytical Approaches, London, Prentice-Hall, 45-58
Azuma N., Fernie J. (2003) Fashion in the globalized world and the role of virtual networks in intrinsic fashion design, Journal of Fashion Marketing and Management, Vol. 7. No. 4
Barney, James. (2008). Firm resources and sustained competitive advantage.” Journal of Management 17.3: 99-120
Bowman, D. (2010). Market response and marketing mix models: trends and research opportunities. Boston. 77-90
Cadogan, J. W. (2009). Marketing-mix strategies – distribution strategy and pricing strategy. Los Angeles U.S.A.: Sage. 119-130
Gilbert, D. (2007) “Retail Marketing Management and Brand Equity”, New York, Prentice Hall, pp.25-26
Ko, E., & Megehee, C. M. (2012). Fashion marketing of luxury brand equity: Recent research issues and contributions. Journal of Business Research, 65(10), 1395-1398.
Li, G., Li, G., & Kambele, Z. (2012). Luxury fashion brand equity and consumers in China: Perceived value, fashion lifestyle, and willingness to pay. Journal of Business Research, 65(10), 1516-1522.
Liu, F., Li, J., Mizerski, D., & Soh, H. (2012). Self-congruity, brand equity attitude, and brand loyalty: a study on luxury brands. European Journal of Marketing, 46(7/8), 922-937.
Miller, K. W., & Mills, M. K. (2012). Contributing clarity by examining brand equity and luxury in the fashion market. Journal of Business Research, 65(10), 1471-1479.
Moore, C. M., Doherty, A. M., & Doyle, S. A. (2010). Flagship stores as a market entry method: the perspective of luxury fashion retailing. European Journal of Marketing, 44(1/2), 139-161.
When it comes to automobiles, one of the most recognized brands out there is General Motors. The American multinational corporation based in Detroit, Michigan designs, manufactures and sells vehicles as well as automotive parts.
With a history that dates back to 1908, General Motors has had a critical role in both the American as well as global auto industry. Some of General Motors well-known brands presently in the market include Buick, Cadillac, Chevrolet and General Motors. The company builds cars and trucks through its other units: General Motors Daewoo, Isuzu, Opel, Vauxhall and Holden units.
The present General Motors that we know today is a result of a company split following a government backed Chapter 11 bankruptcy reorganization. In November 2010, General Motors had its initial public offering, which was one of the highest ever recorded (General Motors, 2014).
Marketing Strategy and Environmental Scanning
The core of any effective business plan is a marketing strategy that will outline how a business will set out to deliver its products to the satisfaction of its customers. Success requires effective marketing in order to remain competitive in today’s global market.
Organizations, regardless of its size must be able to identify and understand external influences to be able to adapt to the present realities that will ensure the company’s survival and success (Albright, 2004: 39).
Plans are based on forecasts which in turn are based on assumptions about what is to be. Scanning the horizon of possibilities is a prudent measure that companies take in order to identify new developments that will test past assumptions or provide insight on new perspectives to possible future threats or opportunities (Gordon & Glen).
A vital tool that will aid companies to focus on strategic and tactical plans is environmental scanning. Environmental scanning is the internal communication of external information about issues that may potentially influence an organization’s decision-making process. It helps organizations flush out external threats thus enabling them to maneuver appropriately (Albright, 2004: 40).
General Motors Marketing Analysis
Environmental scanning may act as an early warning system that will detect and warn companies about important changes and “danger zones” allowing for plans to be altered as necessary. Futurists do environmental scanning in one way or another, all with the ultimate goal to distinguish what is constant, what changes, and what constantly changes. The basic goal of a scanning system is simply to find early indications of possibly important future developments to gain as much lead-time as possible (Gordon & Glen).
Stoner and Freeman (in Costa & Teare, 2000: 156) defined strategic planning as “the development of long range plans for the effective management of environmental opportunities and threats in the light of corporate strengths and weaknesses.” It is therefore accurate that through scanning or the so-called “realized” approach identification and management of environmental opportunities as well as threats can be helpful in the fundamental management of competitive advantages of companies.
In addition to this, environmental scanning can be classified under different areas including social, economic, technological, and political/regulatory. An analysis of these different areas will give an organization a comprehensive assessment regarding the organization (Ginter & Duncan, 1990: 91).
Previous experience on the environmental scanning process has revealed that too much priority is given on the short term which has led to a limited understanding of information. This has led to a basic goal of extracting information, customer service, and the like which ignores the other factors present in the general environment (Costa & Teare, 2000: 157).
The General Motors Way
In analyzing the advantages of General Motors as an organization, there have emerged a number of key strengths including its industry knowledge. With its long history in the automotive field, General Motors has an expertise many can replicate. Time and time again it has been a proven industry leader. In addition to this, technology and innovation has critically improved the company’s products and services and as such have provided customers with key technological advancements that are not only necessary but highly demanded.
Analysis of Strategies, Strengths and Limitations
Recognizing the abovementioned realities, there are still a number of areas of improvement that General Motors needs to focus on including its human resource inefficiency and mediocre scientific achievements, to name a few.
From a marketing standpoint, these situations are potential marketing threats. These internal and external issues hurt the image of General Motors as a company.
In the recent years, General Motors has undergone a number of changes, including its marketing strategy. With a new vision and communications platform called “Find New Roads,” General Motors aims to be the touchstone for the brand as it develops new products and technologies for sale in more than 140 markets (Evans, 2013).
With regards to General Motors efforts, a well done environmental scan has enabled it to identify the realities of the industry and understand its key competition and potential difficulties in meeting the challenge of competitors (Albright, 2004: 40). In this key aspect, General Motors has been able to realign its focus and capitalize on the opportunities that can be found in Asia, specifically China.
In reconsidering its emerging-market strategy, General Motors has been working towards positioning itself for emerging markets of its Chinese partner SAIC Motor Corp (Shirouzu, 2013).
Globalization is a market reality; in order to improve upon the new direction of General Motors to move towards Asia, strategists need to take its efforts a step further and stress test their scanning models. Geographical expansion brings about different considerations. It’s important that through analysis, General Motors can determine the circumstances of desirability as well as risk and restrictions (Beinhocker et al, 2009: 56).
By delving into developing markets, General Motors will be able to think about producing a lower end range of vehicles that consumers from developing markets would be keener on purchasing. An environmental scan would show that emerging markets are not as badly hit by financial setbacks and thus still possess a higher growth rate which equates to an increasing buying power. This would mean while other regions would have slower auto sales, areas in Asia could be a strong sales point.
Scanning would also bring about competitive intelligence as a result of an analysis of competitors and competitive conditions in particular industries or regions. This would enable managers to make informed decisions about marketing, R&D, as well as long-term tactical business strategies. It enables managers to cast a wider net and analyze information about the various sectors of its external environment that will support forward planning (Choo, 1999).
In the case of private transportation sales, a market like China has a high demand for automobiles and it can be safe to say that there will not be any environmental emission deals coming up soon. This can show this as a great potential for profit given the smaller investment, rapid production and low initial costs.
The process looked into identification of emerging issues and trends as well as situations and drawbacks that may affect its success and future. This new strategy opens a lot of opportunity for rapid sales (Shirouzu, 2013).
This example as well as others shows that General Motors has made efforts to stay ahead of the game but this is not enough. General Motors marketing strategies have a need for more improvement. It’s been noted that while their global presence cannot be underestimated, their focus and primary marketing strategies are centered on a limited number of countries. Each country requires its own marketing approach given each economy and marketing conditions vary from each other. A much more tailored, innovative and globally applicable strategy must be applied to achieve multiple targets on a larger scale.
As an example, consider nature, in the last few years, the market has seen an increase in the demand for alternative fuel technologies. Environmental scanning would flag this as rising market trend that General Motors needs to look into. Research and development must be supported to work towards being able to address this future pattern. The company must look towards tweaking its image to make it more concerned for the environment to achieve credibility in this area.
However, the company is already lagging behind its competitors, specifically Toyota. Although General Motors has been producing more efficient products, it is not rising to the challenge that its rivals have been able to in the last few years.
As mentioned earlier, there are various aspects that a scan can look into, be it social, economic, technological and the like. For businesses like General Motors, given its size and holdings, focus tends to be on the economic but such a one-sided scan can lead to misrepresentation or error in analysis leading to a gap between the goal and the outcome which puts an organization in jeopardy. It is imperative scans be as holistic as possible. This is related to the earlier recommendation on the unique marketing strategies per region. A wider analysis of current and potential change and the assessment of the impact of changes on the organization (Ginter & Duncan, 1990: 91)
In reviewing the marketing strategies of General Motors as discussed in their annual reports, their efforts bulk in the areas of publicity, direct marketing, sales promotion as well as traditional advertising.
Conclusion
For General Motors to continue on its path to growth and success, its marketing strategy must be on point. A vital component of its marketing system should include a comprehensive environmental scanning process.
The process should emphasize market research that focuses on specific target markets with strategic identification and unique approaches per market. There should be a parallel unique point of sale concept per targeted area that takes into consideration not only competition and economics but a holistic review of the various factors affecting market conditions.
Relatedly, strategic expansion will require optimal strategies form increasing sales. Realities of this shift in economic power, especially in emerging markets, should focus on affordability and practicality with a balance of quality and optional luxuries.
The research has revealed that General Motors has taken steps in the right direction but fail to grasp the full extent of the shifting patters in the global consumer market.
References
General Motors (2014) About Our Company, [Online]
Evans, H. (2013) General Motors Develops New Global Marketing Strategy, [Online]
Albright, K.S. (2004), Environmental scanning: radar for success, Information Management Journal, May-June, p.38-45.
Shirouzu, N. (2013) ‘General Motors rethinks emerging market strategy, hedges on China partner’, Reuters, 27 Jan.
Costa, J. and Teare, R. (2000) ‘Developing an environmental scanning process in the hotel sector’, International Journal of Contemporary Hospitality Management, Vol. 12, No. 3, p.156-169
Beinhocker, E., Davis, I and Mendonca, L. (2009) ‘The 10 trends you have to watch’, Harvard Business Review, 87, 7/8, pp. 55-60, Business Source Premier, EBSCO Host,
Ginter, P.M. and Duncan, W.J. (1990) ‘Macroenvironmental analysis for strategic management’, Long Range Planning, Vol. 23, No. 6, p.91-100
Gordon, T. J., and Glenn, J. C., ‘Environmental Scanning’, AC/UNU Millenium Project, Ver 2, p. 1-33.
Choo, C. W., ‘(1999) ‘The Art of Scanning the Environment’, Bulletin of the American Society for Information Science, vol. 25, No. 3.
Global Branding and Integrated Marketing Communication
Integrated Marketing Communication is a process which involves co-ordination of communication elements in marketing and communication aimed at assisting an organisation to have a consistent and clear communication of its brand. This process improves an image of a co-corporate to its customers and stakeholders.
Integrated Marketing Communication is used in a firm after proper analysis of customer needs and after a review of the market situation Schultz and Kitchen (2000). Customer views and other markets which are a target are relevant to the customers Kotler (2006).
In every organisation, theirs need for marketing and corporate communication which helps an organisation to interact with appropriate markets with an aim of communicating ideas and knowing various perceptions of brands, services and products.
Marketing concept has developed from logic focused transactions and products to development of long term relationships and improvement of resources in order to maintain customer satisfaction on value. This development is aimed at listening, informing and response to customers. Value added services need to positively evolve to provide consistency and clarity Kotler (2006).
In marketing roles, service sectors have systems where communication represents the central element of marketing activities which is a key element in all company functions Ouwersloot and Duncan (2008).
There are models outlined which help increase customer value based on customer, cost, convenience and communication. This models focus on what the customer needs rather than what an organisation can make. This involves understanding customer cost and the most convenient place to buy.
Global Branding and Customer Satisfaction
Customer satisfaction can be defined as an inconsistency between a customer’s awareness and perceptions. Customers in the market, research items before they purchase them. This product assessment enables the customer to make a purchase choice. Most customers end up choosing well-known brands which reduce any purchase risks Smith (1999).Using such models of communication is most preferred rather than using persuasion Kotler (2006).
The goal of Integrated Marketing Communication is to build brands which are preferred by customers and well known to increase chances of purchase which increase brand equity. Integrated Marketing Communication has benefits which provides brand differentiation and improves accountability in a firm which makes customers gain trust with the organisation.
Business environment has changed over the years due to improvement of technology and knowledge transfer Caywood (2012). Due to globalization of trade many firms have responded by using Integrated Marketing Communication to be able to access the market. Globalization has led to a variety of problems such as competition for resources where more customers have immense power in decision making.
Firms have improved their operations in expanding market share which lead to sustainable marketing performance for their customers through shared value. Due to globalization, firms apply marketing strategy which creates profitability with corporate social responsibility. Integrated Marketing Communication involves brand equity and market sensing orientation which brings forth a competitive edge to a product Belch (2009).
For a business to be successful marketing performance is key Belch (2009). Having access to search, experience and credence is a sign of customer loyalty which leads to higher levels of information behavior. This leads to greater integrated strategies which influence marketing outcomes.
Customer value has the ability to respond to need and solve customer problems rather than transfer benefits to customers. Values created by consumers can pay high prices for products based on social issues. This value is usually inferred from customer satisfaction. Consumers may buy a brand from a firm due to additional value on utility which is established by a brand equity strategy Chitty (2012). Due to globalization customers are demanding and willing to pay higher prices for brands which are of quality Caywood (2012).
Integrated Marketing Communication
Importance of Global Branding
For perfect market outcomes there is need for brand identity, which involves brand vision, culture, positioning, personality, relationship and presentation. Brand vision is an idea made to check how a brand will work in a certain environment and how it will make changes in the future of firms and for the consumers.
Brand culture involves assessing visible artifacts, employees and managers values who are involved in the brand making activities. Brand positioning creates positions for a corporate name and takes into account the competitors position. This argument was based on the idea that consumers need brands with a consistent message Ferrell (2011, p.53).
Brand personality is positioned to help stakeholders groups who can appreciate what the brand can do for their firms. Brand relationship means how customers and business associate themselves with the brand. This promotes customer loyalty and helps management know how and why the brand is been used. Brand presentation is a way of coming up with different ways to present the brand which takes into consideration opinions of all involved stakeholders.
Brand equity is the added value on products and services. This is reflected in the way customers feel, think and respond to the brand. It also looks at the pricing, market share and the profitability for the firm. Brand equity is used to look at the financial and strategic aspect of it Kotler (2007, p.240).
For products to survive, the market must have proper advertising and marketing activities. Brand awareness is built on product quality. Proper quality of a brand leads to higher returns. Building brand awareness builds a strong brand image Kotler (2006).
Price is an important element in marketing strategy because it provides outgoing costs and creates profit. Customers look at price as the value attached to the product been sold by a firm. Customers expect price to reflect the quality level of the product. Price premiums reflect the brand ability to command a higher price than its competitors. A product with strong brand loyalty is able to push its upper limits which enable a price premium to be achieved Erickson and Johnson (1985).
When final products are made the place for marketing is a major factor, this helps in knowing how effectively it can be distributed to the consumer. Distribution channels need to be in line with the brand expression which involves analyzing customer needs, establishing channel objectives, identifying major channel alternatives and evaluating major channel alternatives Percy (1997).
Promotion of brands is a channel of information and persuasion used in order to sell goods and services in promoting ideas. Promotion also involves advertising through sales promotions and tailored messages that encourage a target audience to respond to the product. It also may involve public relations which maintain good quality relationships with other firms.
The concept of Integrated Marketing Communication which involves promotional activities of communication in the marketing sector seeks to have all of a company’s marketing strategies which promote a consistent and clear image in the market place.
There is need for Integrated Marketing Communication since there are conflicting messages from different places or promotional approaches which may confuse a firm or even the image of a brand. Also the Web cannot be able to be used only to build brands and brand awareness is limited Percy (1997).
Integrated Marketing Communication has enhanced business outcomes from a number of inter-related factors. Customer attitudes towards loyalty have improved patterns arising from clear and consistent experience of brand value. Improvements on customer attitudes and behaviors have had a positive effect on profitability Caywood (2012).
There has been a more effective use of communication media choices where business processes have had an effective flow adding to higher added value. There has been an increase in learning of brand organisation Schultz and Kitchen (2000). Work rate and cohesion and creativity has improved while eliminating stress levels among workers in a firm which has resulted in more cost effective use of agencies and business associates which later produce better results.
Integrated Marketing Communication has led to saving of money as it avoids duplication of graphic which are used in advertisement of sales Percy (1997). Agencies use one channel for all communication and this reduces costs in the firm
It has consequences on firms which are found in marketing communication, performance and stakeholders. Most results achieved show how well Integrated Marketing Communication has worked effectively with regards to public relations, sales promotion, and advertisement and direct marketing Schultz and Kitchen (2000).
Integrated Marketing Communication has a relationship with marketing communication because different functions within the organisation are implemented during marketing campaigns. It has led to saving of costs relating to many facilities within a firm. This enables increased knowledge of brand preference and purchase intention among customers.
With the use of Integrated Marketing Communication it has positively improved operation efficiency and reduced battles within an organisation. Brand performance has also improved due to proper brand reputation, brand knowledge, improved attitudes and customer loyalty Tuckwell (2011).
There are however barriers to Integrated Marketing Communication due to communication with a wide range of organisations. They include rigid organisational structures, time scale conflicts and poor management skills. Some managers protect both their budgets and power base. Lack of experience in the firm about all the marketing communication disciplines is a major barrier to improvement in a firm.
An organisation can be able to implement Integrated Marketing Communication if it takes certain considerations. The size of an organisation maybe one of them .Larger organisation may find it difficult to implement Integrated Marketing Communication unlike smaller organisations who may have less complex brands.
Type of organisation maybe another factor to consider. Service oriented companies are better placed for integration than product based firms. Service firms have a direct link to the customer .Large service manufacturing firms can be able to integrate Integrated Marketing Communication than smaller firms.
The levels of competition and institutional environment have a major role to play in Integrated Marketing Communication implementation. A hostile environment with aggressive competition and technological innovations may lead to positive outcomes in the organisation Schultz (1994)
Competition pushes a firm to increase awareness and brand quality which results in better brand messages. Technology has made firms to push forward in brand awareness which creates a need for integration Waller (2012).
The relationship between Integrated Marketing Communication and the financial outcomes is very elaborate since it has improved on how price ranges are managed. It promotes the markets in terms of finance by making a variety of products in the market firms. Such products include products, ETFs equities and derivatives.
Integrated Marketing Communication helps in market firms where it provides regulatory and technological improvements since it deals with equity and derivative market products. It has an order entry control which prevents entry of erroneous orders which affect the financial market negatively. This requirement prevents anomalous traders in the market and builds customer faith in such products which turns into better profits Ferell (2011).
Market Integrity Rules have guidelines which are very clear and consistent based on cancellation of erroneous policies and systems. Integrated Marketing Communication supports such rules so as to make sure that products in the market are efficient.
Where there are complex financial products markets are supposed to cancel them after a mutual consent has been made Belch (2009). Integrated Marketing Communication focuses on technical resources which are in the markets. This process ensures executions of financial products are at their best.
Price is the value attached to a financial product which is a major factor when it comes to Integrated Marketing Communication. When a participant trades, there are not aware that some traders are at fault. It helps the market operator in controlling anomalous orders and prices which disrupt the market Percy (1997).
Market operator control improves the market integrity which helps participants to have a view of what constitutes best practice controls. Integrated Marketing Communication helps in controlling cancellations which is very beneficial in derivatives markets in reducing risk where market operator’s controls may fail for one reason or another Caywood (2012). With such public action of thresholds it allows participants to develop trading strategies.
Derivatives markets are controlled from Integrated Marketing Communication to ensure efficiency and transparency. This gives participants an opportunity to help in market transaction which results in price movement. Price movements expose markets to loss due to lack of consistency. Integrated Marketing Communication favors predictability on how erroneous trades can be handled. The market policy recognizes different needs of different products markets which are appropriate for cash equity. Greater commercial certainties are usually in line with the degree of flexibility to provide price formation and protects the interests of retail investors.
There are errors which happen on option and strike price. Such errors are cancelled with consent from both participants involved Ferrell (2011). High frequency trading firms have a high turnover and high capacity.
Market making strategies display relevant market platforms which seek to increase profits on quotes accepted by investors. Prices are adjusted by investors after massive public enquiries. With risk premiums, factors like trade fees and clearing fees are factors which are determined Smith (1999).There are arbitrage strategies which seek to profit from price from products such as futures, equities and ETFs.
Integrated Marketing Communication has an effect on market integrity where market participant’s benefit from competition among trading firms which may include retail investors Caywood (2012).Competition in the market place promotes efficiency. This leads to pricing modes and market data which promote efficiency and controls pricing imbalances in the market.
Integrated Marketing Communication has a major impact on quality of markets which has continued to contribute significantly to liquidity in financial products. There is a properly targeted relief from short selling restriction which mitigates uncertainty which secures the product.
When it comes to price investor protection infrastructure costs can upgrade placements on orders connecting to each exchange as well as best execution obligation. With reduced enforcement and compliance costs, a participant performance can enforce it to avoid uncertainty. Attention to cost is high which is monitored from a range of points by the market operator.
Price transparency increases higher trading volumes which are borne by investors as providers of liquidity including market makers. Placing orders in such market contributes to the important public good of price discovery and formation.
Market capitalization is defined as valuation of a firm based on its share price and the total number of available stocks. Firms calculate this by multiplying the current market price of the firms share with the outstanding shares. This helps customer and investors know the risks of brands which they have a share in.
Integrated Marketing Communication uses financial strategic Integration where data is used to drive such planning for example product offerings. Collection of customer preference towards a product is collected to establish preference. Integration is achieved among all stakeholders to establish value chain. This helps to achieve customer satisfaction together with attaining a firm’s objective Belch (2009).
With Integrated Marketing Communication developments such as return on customer profitability, value, customer migration rates and market share it establishes a platform for marketing investments which impacts on consumer minds, market performance and increases value for their shareholders.
Integrated Marketing Communication has had a positive impact on many organisations relationships with other organisations. It has improved customer attitudes, customer loyalty and retention. Brand performance also impacts on financial outcomes when it comes to returns in a firm.
Integrated Marketing Communication has positive relationship with market outcomes and financial outcomes which is enabled with customer loyalty, brand awareness and brand quality.
The Integrated Marketing Communication concept has many driving factors and effects. It is customer based to maintain customer loyalty. It has benefits in brand communication and marketing and on stakeholders and agency relationships.
Due to development in business more research is been done on Integrated Marketing Communication to be used as a tool for brand awareness. The boom of social media is a major boost especially with support from smart phones is driving more business to use the internet which has become a powerful tool for marketing. This creates a perfect platform for implementation of Integrated Marketing Communication since it enhances interaction in social networks. It therefore has a positive effect on market outcomes and financial outcomes because brands are of quality and this increases customer loyalty which promotes sales. Integrated Marketing Communication therefore should be a priority in many firms as it boosts sales in a firm and ensures customer loyalty.
Market outcomes are based on customer loyalty to a brand which depends on advertisement of a product, promotion and brand awareness in the market. Customer satisfaction is key and is established after information has been collected to determine which brands are more preferable.
Integrated Marketing Communication is a very important aspect in any firm as it helps to coordinate other agencies that interact with the firm in promoting certain brands. This helps to access price fluctuations and what the customers want. Firms can customize on products so as to satisfy customer needs. Integrated Marketing Communication reduces major costs and therefore promotes positive financial outcomes in terms of increased revenue. With effective use of Integrated Marketing Communication firms have a better chance of increasing returns and creating an efficient platform for their business.
It has revolutionized the market industry where customers have more information and easier accessibility to firms. This creates an easier way of doing business and more is achieved. Customers have been able to set their own prices on products they require. Integrated Marketing Communication is a better tool which should be used in the market place.
References
Belch, G. E. (2009). Advertising and promotion: an Integrated Marketing Communications perspective. Sydney, McGraw-Hill Australia.
Belch, G. E., & Belch, M. A. (2012). Advertising and promotion: an Integrated Marketing Communications perspective. New York, McGraw-Hill.
Caywood, C. L. (2012). The handbook of strategic public relations and integrated communications. Maidenhead, McGraw-Hill Professional.
Chitty, W. (2011). Integrated Marketing Communication. South Melbourne, Vic, Cengage Learning.
Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia, South-Western Cengage Learning.
Kotler, P., Pfoertsch, W., & MICHI, I. (2006). B2B brand management. Berlin, Springer.
