Online Marketing Effectiveness on Integrated Marketing Communications

Online marketing is becoming a hot topic in every business sector, and gradually plays a truly important role in any company's multi-channel marketing strategy or its integrated marketing communication.

 Integrated Marketing Communication (IMC) is a marketing concept that ensures all forms of communication and messages are carefully linked together.  

At its most basic level, Integrated Marketing Communication or IMC means integrating all the promotional tools, so that they work together in harmony. Promotion is one of the Ps in the marketing mix. Promotion has its own mix of communication tools.

All of these communication tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts - providing they speak consistently with one voice all the time, every time.  

Integrated Marketing Communication is the concept that makes all the marketing tools to work together as a unified force rather than work in isolation. It makes the use of entire marketing efforts in the form of advertising, public relation, personal selling, sales promotion, internet marketing , direct marketing in order to generate maximum impact on the target audience at the minimum cost. 

According to William Stanton, "IMC is an element in organization's marketing mix that is used to inform, persuade and remind the market regarding the organization and / or its products." It blends various promotional tools and communication/marketing/advertising services and techniques to maximize profit. IMC is ultimately achieved through concise and consistent messaging that fosters familiarity and consumer affinity. Effective IMC messages and images are meaningful and useful to consumers, and messaging and branding consistency - a proven IMC concept - yield customer satisfaction and loyalty.

Tools of Integrated Marketing Communications (IMC):

Advertising refers to "the means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost". Kotler and Armstrong (2003), provide an alternative definition: "Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor". 

Sales Promotion is the Demand-stimulating activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and personal letters on other methods. More than any other element of the promotional mix, sales promotion is about action. 

Public Relations programs are a planned communication effort by an organization to contribute to generally favorable attitudes and opinions toward an organization and its products. It is a communication function that seeks to build good relationships with consumers, stockholders, and legislators. The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between news stories like on evening TV news casts). New technologies such as weblogs, web cameras, web affiliates, and convergence (phone-camera posting of pictures and videos to websites) are changing the cost structure. 

Personal Selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale.  According to American Marketing Association, Personal selling is the personal or impersonal process of assisting or persuading a prospective customer to buy a product or service and to act favorable upon an idea that has commercial significance to the seller. Apart from the above, a new tool is being emerged in the contemporary market scenario and that is named as online marketing.  

Benefits of Integrated Marketing Communications:

•      Although Integrated Marketing Communication requires a lot of effort, it delivers many benefits. It can create competitive advantage, boost sales and profits, while saving money, time and stress.  

•      IMC wraps communication around customers and helps them move through the various stages of the buying process. The organization simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers. This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.  

•      IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial messages which bombard customers each and every day.  

•      IMC can boost sales by stretching messages across several communication tools to create more avenues for customers to become aware, aroused, an ultimately, to make a purchase.

 

•      Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process and this reduces their 'misery of choice' in a complex and busy world.  

•      IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.  

•      Un-integrated communication conveys disjointed messages which dilute the impact of the message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated communication presents a reassuring sense of order. 

•     Consistent images and relevant, useful, messages help nurture long term relationships with customers. Here, customer databases can identify precisely which customers need what information when and throughout their whole buying life.  

•      Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communication and even if there are several agencies, time is saved when meetings bring all the agencies together - for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of IMC.  

Limitations of Integrated Marketing Communications:

•      In addition to the usual resistance to change and the special problems of communicating with a wide variety of target audiences, there are many other obstacles which restrict IMC. These include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management know-how.  

•      Some organizational structures isolate communication, data, and even managers from each other. For example the PR department often doesn't report to marketing. The sales force rarely meets the advertising or sales promotion people and so on.  

•      And all of this can be aggravated by turf wars or internal power battles where specific managers resist having some of their decisions (and budgets) determined or even influenced by someone from another department. It shouldn't matter whose creative idea it is, but often, it does. An advertising agency may not be so enthusiastic about developing a creative idea generated by, say, a PR or a direct marketing consultant. 

•      Integrated marketing communications can restrict creativity. No more wild and wacky sales promotions unless they fit into the overall marketing communication strategy. The joy of rampant creativity may be stifled, but the creative challenge may be greater and ultimately more satisfying when operating within a tighter, integrated, creative brief.  

•      A survey in 1995 revealed that most managers lack expertise in IMC. Not just managers but also agencies. There is a proliferation of single discipline agencies. There appear to be very few people who have real experience of all the marketing communication disciplines. This lack of know how is then compounded by a lack of commitment.  

Understanding these limitations is the first step in successfully implementing IMC. 

The advances in technology have led to one of the most dynamic and revolutionary changes in the history of marketing, the dramatic changes in communication using interactive media such as Internet. Interactive media allows communication on a two way form instead of one way communication. And a two way communication plays vital role in IMC.

Online marketing is becoming a hot topic in every business sector, and gradually plays a truly important role in any company's multi-channel marketing strategy. It uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies that help generate and place the ad copy, an ad server who technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser. 

Tools of Online Marketing:

 Display advertising - Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with particular traits to increase the ads' effect.  

Web banner advertising - Web banners or banner ads typically are graphical ads displayed within a web page. Banner ads can use rich media to incorporate video, audio, animations, buttons, forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and other programs.

Frame ad (traditional banner) - Frame ads were the first form of web banners. The colloquial usage of "banner ads" often refers to traditional frame ads. Website publishers incorporate frame ads by setting aside a particular space on the web page.  

Pop-ups/pop-unders - A pop-up ad is displayed in a new web browser window that opens above a website visitor's initial browser window. A pop-under ad opens a new browser window under a website visitor's initial browser window.

Floating ad - A floating ad, or overlay ad, is a type of rich media advertisement that appears superimposed over the requested website's content. Floating ads may disappear or become less obtrusive after a preset time period. 

Expanding ad - An expanding ad is a rich media frame ad that changes dimensions upon a predefined condition, such as a preset amount of time a visitor spends on a webpage, the user's click on the ad, or the user's mouse movement over the ad. Expanding ads allow advertisers to fit more information into a restricted ad space.

Interstitial ad - An interstitial ad displays before a user can access requested content, sometimes while the user is waiting for the content to load. Interstitial ads are a form of interruption marketing.

Text ads - A text ad displays text-based hyperlinks. Text-based ads may display separately from a web page's primary content, or they can be embedded by hyperlinking individual words or phrases to advertiser's websites. Text ads may also be delivered through email marketing or text message marketing.  

Search Engine Marketing (SEM) - Search Engine Marketing, or SEM, is designed to increase a website's visibility in search engine results pages (SERPs). Search engines provide sponsored results and organic (non-sponsored) results based on a web searcher's query. Search engines often employ visual cues to differentiate sponsored results from organic results. Search engine marketing includes all of an advertiser's actions to make a website's listing more prominent for topical keywords. 

Search Engine Optimization (SEO) -Search Engine Optimization, or SEO, attempts to improve a website's organic search rankings in SERPs by increasing the website content's relevance to search terms. Search engines regularly update their algorithms to penalize poor quality sites that try to game their rankings, making optimization a moving target for advertisers. Many vendors offer SEO services.

Sponsored search - Sponsored search (also called sponsored links or search ads) allows advertisers to be included in the sponsored results of a search for selected keywords. Search ads are often sold via real-time auctions, where advertisers bid on keywords. 

Social media marketing - Social media marketing is commercial promotion conducted through social media websites. Many companies promote their products by posting frequent updates and providing special offers through their social media profiles. 

Mobile Advertising - Mobile advertising is ad copy delivered through wireless mobile devices such as smartphones, feature phones, or tablet computers. Mobile advertising may take the form of static or rich media display ads, SMS (Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads, advertising within mobile websites, or ads within mobile applications or games (such as interstitial ads, "advergaming," or application sponsorship).

Email Advertising - Email advertising is ad copy comprising an entire email or a portion of an email message. Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt-out of future emails, or it may be sent with the recipient's prior consent (opt-in). 

Benefits of Online marketing:

•       Internet gives you a wide access of your potential customers. It has been estimated that a couple of billion people around the world use the Internet, and more are becoming aware of Internet with each passing day. So, marketing your business to such a large group of people is only possible through Internet. · Internet is the only medium that is able to cross geographic and national boundaries.  

•       The cost of promoting your business on the Internet is cheaper than other mediums of marketing. This makes it easy for small and mid-sized businesses to advertise their products. 

•   Internet allows the ability to stay connected with customers on a real-time basis. If any discount going on, then it is easier to send an email to customers and they can buy the product instantly. Internet also allows sending of multiple messages at the same time, which saves the tedious task of sending a newsletter to every client. 

•       Internet marketing facilitates an instant feedback from the customers. Customers can share about their experience after using the product. 

•       Internet marketing saves a lot of time and effort. Instead of having a customer service representative to answer the queries of customers, one can put all the information about the product or service on the Internet so that customers can go through it. The most common way of doing it is to have a section dedicated to frequently asked questions (FAQs) about the product so that customers get all the required information about the product or the service. 

•       Internet marketing allows businesses to be available 24/7, which means increased sales and profits. 

Limitations of Online marketing:

•       Although, Internet marketing allows a wider reach, the start-up costs of a website can be high. This includes the cost of the required software and hardware, and maintenance costs. 

•       There are still a lot of customers who use the Internet just for having more information about a product and prefer to buy it in person. For example, Internet marketing allows a customer to view how a phone looks like and its technical specifications, but customers prefer having a look at the phone in the store to get a hands-on experience. 

•       There are a lot of customers who are not proficient in using the Internet and focusing solely on Internet marketing can cause you to lose these customers. 

•       The rules of the trade change rapidly in Internet marketing, and it requires constant attention and monitoring to ensure that your marketing strategy does not look out-of-date.

•       The biggest disadvantage of Internet marketing is its vulnerability to fraudulent activities. There are a lot of illegitimate websites out there which look similar to original websites and rob the customers of their money. Spamming is also one of the biggest challenges for Internet marketing and confidential data can be easily stolen by hackers. 

•       Internet marketing lacks the human touch that is involved when a customer buys a product from a salesperson. This hampers the prospects of relationship building which plays an important part in repeat sales and word-of mouth publicity. 

•       Internet marketing depends heavily on technology, which is vulnerable to technical faults. For example, if a customer clicks on your advertisement but due to a technical glitch, is unable to buy the product, he may easily become irate and take his business somewhere else. 

Although, there are some challenges involved in Internet marketing, it can be safely said that Internet marketing has led to increased transparency and ease of buying products. The need of the hour is to counter the challenges so that Internet marketing proves to be truly beneficial for all. 

This dissertation aims at identifying the importance of integrated marketing communication followed by the effectiveness of online marketing as a part of IMC strategy. Therefore the objective of the research is to understand the massive contribution of Online marketing as a part of Integrated Marketing Communication and to know its splendid efforts towards promotion in practice and also to find out some challenges in using online advertising as a tool of  Integrated Marketing Communication.

The research objectives are - 

i.                To understand the importance of Integrated Marketing Communication.

ii.               To understand the importance of Online advertising in changing market scenario.

iii.             To understand the reasons for growing popularity of online marketing.

iv.             To analyze the effectiveness of online marketing as compared to traditional marketing tools. 

v.               To identify the limitations of online marketing as IMC tool.

In order to attain these objectives, the methodology uses descriptive research design. Data is collected from secondary as well as primary sources. Secondary data provides necessary theoretical back up to the study which is collected from published or unpublished sources. Primary data is collected under Survey method using questionnaire as the main research instrument. Since "Customer`s inclination towards Online marketing" is the core focus of the study, a structured & closed ended questionnaire has been prepared for customers only. 

The questionnaire incorporated questions related to customers' preference for online marketing and other traditional mediums for getting awareness on various brands and making purchase decision. The questionnaire is then distributed among the sample selected for this study. Stratified probability sampling is used with sample size as 200 within Mumbai suburbs and sample frame as educational institutions & corporate offices. 

Data collected is then analyzed with the help of statistical software SPSS 17.0 and Ms-Excel Add-In Data Analysis. Statistical tools used for the analysis are Mean, Median & mode, Standard deviation, Skewness & Kurtosis. 

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Statistical analysis of data put forward following conclusion – 

Ø  Consumers reckon upon more than one medium to get knowledge of any brand. Due to unlimited brand choices & price sensitivity, they undertake a detailed evaluation of various brands by referring more number of sources of information. So they may be using combination of various media such as print ads, television commercials, in-store promotion to know about different aspects of the brand. 

Ø  Consumers do refer various mediums to get awareness but highest preference is being given to the online media. Online media incorporates blogs, online PR, Window displays, banner ads etc. And consumers today are more exposed to these forms of online advertising as compared to advertising through other mediums.

Ø  Consumers require more information to take purchase decision but they do not like to spend much of their time for purchasing any commodity.  

Ø  Consumers do require plenty of information to take purchase decision. This information may increase their knowledge and assurance on brands' attributes and benefits consumers are likely to gain that will eliminate their confusion in choosing any particular brand. Once they obtain the required information on various brands, they take less time in the purchase of any commodity.

Ø  Consumers are well knowledgeable about various usage, functions and benefits being offered by internet. The analysis reveals that there is high degree of literacy for internet usage. 

Ø  Due to its attribute of making life easier by allowing the users to have instant access with every informational, educational, interactive & entertaining material; Internet is heavily used medium today.    

Ø  The most important activities to be done through internet are social networking as it connects them with others, online shopping as it offers them convenience of shopping and media sharing site as it allows them to download their favorite enticing material such as songs, video, games etc. 

Ø  Majority of consumers believe that companies should use online activities in their marketing efforts. Since online activities facilitate good access and higher reach to the customers; companies must take this advantage by incorporating online advertising in their marketing strategy. 

Ø  Consumers are motivated to use internet as it offers them products at discounted rates, gives access to exclusive content such as specific functional & emotional benefits of the brand, and allows them to give feedback about the brand directly to the company.     

 

Ø  Survey reveals that majority of consumers have stopped preferring television commercials or print ads to get brand awareness. Thus the popular traditional mediums are no longer remained first preference for the consumers to receive ad messages.   

Ø  Consumers like interactive ability of online marketing which is not applied in case of traditional mediums like print ads, television commercials or outdoor media. Consumers like to exchange their views and share their feedback when it comes to evaluating the brand or for taking purchase decision. 

Ø  Though consumers are convinced with advantages of online activities majority of them still feel that online marketing is not safe as there is more scope of fraudulent activities followed by privacy issues. These may include cheating customers by offering them faulty items, giving wrong demonstrations, taking confidential information from them such as bank details, credit card details and misusing the same.     

It is therefore suggested that companies should not only rely on online marketing but should incorporate it as a part of IMC strategy so that online marketing can have a wider reach to the customers and its limitations will be repaired with the help of other traditional tools. As these tools will help to create credibility and trust about the brand among the consumers so there will be no question of susceptibility about those brands being endorsed through online media.     

The study is limited to Mumbai suburbs only but as a matter of future scope of the study; it can be extended to the other states of country. This will help to know more about the effectiveness of online marketing and its contribution in Integrated Marketing Communication.   

Key Terms

Online marketing thesis

Effectiveness of online marketing

Effectiveness of online marketing on integrated marketing communication
 

Disclaimer: This article is a thesis review on:

Pawar, A.V. (2014).  Study of the effectiveness of online marketing on integrated marketing communication.

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References

1.      Philip Kotler & Kevin Lane Keller, Marketing Management, New Delhi, Pearson Education, 2006, pg. no. 537   

2.      Warren J. Keeyan, Global Marketing Management, USA, Prentice-Hall of India Pvt. Ltd., 2002, pg. no. 3  

3.      Philip Kotler & Kevin Lane Keller, Marketing Management, New Delhi, Pearson Education, 2006, pg. no. 52    

4.      Belch, G. E. and Belch, M. A., 2004. Advertising and Promotion – An Integrated Marketing Communications Perspective. 6th ed. New York: Tata McGraw-Hill. 

5.      Beard, Fred K., Conflict in the Integrated Marketing Communications Task Group, in Proceedings of the 1993 Conference of the American Academy of Advertising, E. Thorson, Ed., Omnipress, Madison, Wl. 1993, pg.no. 21-31. 

6.      Abed Abedniya, Sahar Sabbaghi Mahmouei, The Impact of Social Networking Websites to Facilitate the Effectiveness of Viral Marketing, December 2010, International Journal of Advanced Computer Science and Applications, Vol. 1, No.6  

7.      Andrea C. Wojnicki, Word-of-Mouth and Word-of-Web: Talking About Products, Talking About Me, 2006, Advances in Consumer Research, Volume 33. 

8.      Chaffey, D., Ellis-Chadwick, Johnston, K.F. and Mayer, R., 2003. Internet Marketing: Strategy, Implementation and Practice. 2nd ed. Edinburgh: Pearson Education.