The Theoretical Foundation of Integrated Marketing Communication

CASE of SMEK (Premium Marketing Agency)

Executive Summary

This report contains two sections; the first section is all about the theoretical foundation of Integrated Marketing communication through literature review. Where the evolution of IMC has been discussed and finally come up with the latest definition that is to persuade customers towards your brand awareness and buy and sell your products and services. For this, companies prefer to use the social media platform as a communication and promotional mode. According to the requirement of the assignment, the other supportive theories like Social Presence Theory (SPT) and the Computer-Mediated Communication Theory (CMCT) has been discussed briefly. Further to the addition, social media usage, mode of communication (AIDA and Communication Model), development and implementation of communication strategy, and finally the most preferred communication channels have also been coming under consideration.

In the second section of this report, a case study of an SME has been taken into account. For this SMEK Premium Marketing Agency has been taken as an example. In this section, a brief overview and introduction of the company, its customers and segmentation, its social media segmentation and preference and finally developing and implementation of new marketing communication strategy. In the end, the research has come up with the future direction of IMC towards DMC through literature review in the 21^st century.

The Theoretical Foundation of Integrated Marketing Communication

We have seen that the new technologies, particularly the growth of the internet are the fastest digital ways of interaction between individuals and companies in today’s world (Ghezzi & Dramitinos, 2016). Internet expansion has played an enormous role to connect individuals and companies. It brings ease and comforts in our lives in making the world a global village. The technological revolutions and their impact on boosting the economy and transformation from old methods (paperwork) into computerized form. Communication travels faster through computer algorithms (the computer language) from one corner to the other corner of the world. The early concept of “Integrated Marketing Communication” has been introduced in the early 1970s (Cornelissen and Lock, 2000; Van Riel, 1995). Because it has been realized that business performance and growth is solely dependent on IMC. Then the concept of IMC starts getting attention from most of the researchers, practitioners, marketing agencies, and businesses. Therefore, it comes understudy in the late 1980s (Caywood, Schultz, and Wang, 1991). Most of the researchers suggested that IMC plays a key role in brand awareness and to persuade customers to buy the company's products and services. The concept building of IMC was then officially published in the book of “Integrated Marketing Communication” (Schultz, Tannenbaum, & Lauterborn 1993). Where the concept is not only officially adopted but also implemented in various organizational functions.

At that time, IMC was also supported by the Social Presence Theory (SPT) where companies and businesses not only work on developing their communication strategy but also wished to have their digital social presence. So that they can target the huge market in building and promoting their brands. Then the SPT has been switched (Short, Williams, & Christie, 1976) with “Computer-Mediated Communication theory” (CMCT) (Walther, 1996). The CMCT has allowed conducting dialogues with their customers’ and businesses. You can see various websites and official social media pages of most companies pop up with this function. You can directly message and acquire the basic information through this application. It may be automatic or manual responses to your queries. IMC theory has also been emerged in the late 20^th century due to its growing importance. For this, information technology has played a vital role in the domains of marketing communications.

According to Hutton, (1996); Kliatchko, (2005); Griffin and Pasadeos, (1998); Eagle and Kitchen, (2000); Reid, (2003); Bruhn, (1997/1998), IMC started advocating its emergence through media of that time like mobile phones, digital TVs, technological developments including the global competition and the personal computers. It means it has started functioning through some channels and getting positive feedback. Hence, the theory of IMC developed. Its basic aim is to target the required audiences through a well-structured communication strategy to persuade customers/clients towards buying and selling the products and services. This strategy further executes other communication functions like advertising, public relations, and sales promotions, etc. Companies and brands have now adopted social media platforms for their communication and marketing of brands, products, and services.

Social Media Usage

As the technology evolved and updated, there was a rise in social media software. This software was developed while keeping in mind the social circles and society. Therefore these are known as social media software or platforms. The founders aim to create interaction between societies and businesses. Where users have given rights and control to connect with their friends and family socially. We have seen that only a little software became popular in usage and connectivity. Today, the most popular social media networks are Facebook (more than 50% usage), Instagram (more than 45% usage), Google+ (more than 35% usage), Twitter (more than 33% usage), LinkedIn (more than 30% usage), YouTube (more than 70% usage), Pinterest and Reddit (more than 29% usage). Facebook has become a top trending social media platform all over the world.

Mode of Communications

In the implementation stage of IMC, we should know the major modes of communication that companies usually prefer to display their messages to their target market and customers. There are primarily eight major modes of communication that companies usually adopt to deliver their messages. These are advertising, sales promotion, social media marketing, mobile marketing, events and experiences, public relations and publicity, direct and database marketing, and last the personal selling. Advertising is a paid form and non-personal communication. It is done through billboards, signboards, pamphlets, or short TV commercials. Brand ambassadors are also the most effective tool for advertising and brand promotion. Sales promotions mean to provide discounts to customers to boost sales and promotion. Social media marketing is another mode of communication where marketing communication happened. Mobile marketing was remained famous in previous times but now it has lesser importance in comparison with other communication modes, so on and so forth.

IMC is mainly focused on satisfying the customer’s needs, wants, and demands and it directly affects the consumer’s behavior, attitude, intentions, and responses. For this, most of the businesses adopt and prefer the AIDA model along with the communication model. Through the AIDA model, the first attention of the customers is obtained towards your products and services. Then that attention is converted towards an interest in buying the products and services. Once we got the interest then we aim to create desires in customer’s minds to have our brands. And finally, we successfully get the action behavior of our customers. This is all about the AIDA model that most of the businesses and companies usually adopt and follow. More specifically, in the communication model, companies first expose to their products and services to catch the cognitive responses of their target customers. Once they are successful with that then they keep trying to develop a positive attitude of their new and prospective customers towards buying their brands. In the end, the companies either successful or unsuccessful in getting the behavioral changes of their customers.

How to develop and implement effective communication strategy?

It is a long way process as discussed earlier, the companies’ first need to identify their target audiences, then moving towards setting their objectives. Where the main objective is to capture the attention of their customers by designing an effective communication or a message strategy. After then this, to float this communication, they select the right channels or platforms where they can target their right customers. Then the budget is decided on displaying ads that need to be placed on media mix (all social media platforms) or you can say on different social media platforms. The results obtained either favorable or non-favorable will then be measured and in the end, most companies started to manage their integrated marketing communications. During that process, the major focus of the businesses was only to establish the needs of their customers, to build brand awareness, and to develop customer’s attitude towards buying their particular brand.

In building a creative strategy, companies usually follow two ways; first, the informational way to just communicate and inform their target customers about their products and services. The second is a transformational way, where they appeal to prefer their brands over other companies' brands. This is done through a comparative analysis where one brand tries to display its performance better than its competitors. So that they can position their brands in the minds of their customers.

The Preferred Communication Channels

In today’s time, most companies prefer social media platforms where users spent the maximum time. Most commonly the Facebook and Instagram. This comes under online marketing where companies use websites, search ads, display ads, emails, Google ads, and Facebook ads. In the case of large companies, they use Google AdSense and Facebook ads while most of the SMEs prefer the organic method over the paid method. This is the preference and approach of both large-sized and small-sized companies depending on their budget. Thus, social networks are the most preferred communication channels in today’s age.

The CASE STUDY OF SME

SMEK is a premium digital marketing agency, An SME that belongs to the Graphic Design industry. The company has its head office in Mirpur, Azad Kashmir, Pakistan while the regional office or other office is in the UK.

The company has initiated its operations in Sep 2017 and currently has around 25 employees. It is a creative marketing agency that provides a wide range of services to the most renowned brands worldwide. It has completed its 1500 projects in almost 35 countries. They believe in developing competitive marketing strategies to increase brand awareness and to keep providing digital promotional opportunities for their clients. They usually prefer digital media platforms for any kind of promotional and sustainable solutions. Currently, their services include web designing, online presence analysis, social media marketing, web development, search engine optimization, local business marketing, content writing, conversion rate optimization, email marketing, animated explainer video, pay per click pro, and the last reputation management.

SMEK currently using Facebook, Twitter, LinkedIn, and WhatsApp as their digital marketing platforms to create awareness of their services and promotion of their brands.

Marketing Mix

The following are the marketing mix of SMEK Pvt Ltd.

Services include web designing, online presence analysis, social media marketing, web development, search engine optimization, local business marketing, content writing, conversion rate optimization, email marketing, animated explainer video, pay per click pro, and the last reputation management.

Pricing Strategy is varying from one service to another. They have only placed the pricing of their one service SEO on their website https://smek.co.uk/pricing/ while clients and customers can directly ask the price of other services through online communication on the web and other social media platforms.

Placement are Pakistan and UK while targeting many other countries through online communication.

For Promotion, they usually adopt customer relationship management, database management, referencing, and other social media platforms like Facebook, Twitter, and WhatsApp. Where they are going very successful.

Customers and Segmentation

SMEK is currently following two business models to target and segment their clients and customers. The first is business to consumer (B2C) and the second is business to business (B2B) models.

In the B2C business model, they render their services to the end customer or consumer. Mostly they target the young entrepreneur who needs their services to start their own online business.

In B2B, they target businesses and companies in providing a range of their services as required. Thus they have two types of audiences, customers and businesses.  As they are dealing international, their target markets are the Pakistan and UK, and other parts of the world too. They have segmented their target market into individuals, entrepreneurs, and small and large scale business and vice versa. Mostly their services are online therefore their segments individuals and businesses often found online.

Further, in “Demographic Segmentation”, due to having offices in Pakistan and the UK, they target maximum of the customers who are professional or businessman of these regions (PK & UK). They also reach out to other countries (150 others) where they are getting orders and satisfying their customers’ needs and wants. Again in “Psychographic Segmentation”, their target customers are only entrepreneurs, professionals, and small and large scale businesses. On “Behavioral Segmentation” aspects, they have social media platforms, where they are recording the behavior of their customers towards their company’s products and services. And making changes and improvements accordingly. Finally, “Geographic Segmentation”, as already stated, first they prefer Pakistan and UK and then also moving their services to the rest part of the world where they have currently targeted 150 other countries.

Social Media Segmentation and Preference

As discussed earlier, currently they are using Facebook, LinkedIn, Twitter, and the WhatsApp application and software are to reach their segments. Segments are end consumers or customers, entrepreneurs, small and medium-sized businesses. They are also targeting the professionals through LinkedIn and Twitter but it seems they prefer Facebook over other SM platforms.

About LinkedIn: they currently don’t have any social media page at LinkedIn.

Developing and Implementation of New Marketing Communication Strategy on SM

As they are getting access thus they should open more regional offices either in other countries or in the existing countries like Pakistan and the UK to increase their reach of communication.

Moreover, I have gone through all official social media pages of SMEK and found that though they are very active on these platforms; they are lacking with LinkedIn, Instagram, Pinterest, and Reddit, and even YouTube.

IMC theory can be implemented through effective advertising and promotional videos and to be uploaded on Instagram and YouTube. Hence, they can capture huge audiences from all over the world by using the digital marketing communication strategy. I would say that IMC has now been emerged and evolved into digital marketing communication (DMC). It is one of the most effective and in-demand strategies to develop and implement. They should realize that their target market should be the whole world, the virtual world; to increase profitability, sales volumes, growth, and sustainability.

Conclusion

It is concluded that SMEs of Pakistan are also adopting IMC in their business and getting successful all over Pakistan. They know the rising importance of IMC and its usage to target the right customers. They are also communicating and responding to their customers through their web portal and other social media platforms. Success is ultimately dependent on your customer’s satisfaction and then maintaining a long-term relationship with your customers. Acquiring new customers through a very tough, time taking, and costly process but it has made possible now due to rising awareness and usage of social media.

IMC into DMC (Future Direction)

We all know that the substantial development in using the internet has been changed communication through the development of social media (Duffett, 2017; Barreto, 2013), that have a greater extent of engaging users together. Social media platforms are mostly preferred because it is easy to find active users. They function things online by using social media as their top priority. According to Gvili & Levy, (2018); Floreddu & Cabiddu, (2016); and Chu & Kim, (2011), social media allows users to contact their friends, family, companies and gather information about the events that are being happened in the world. They conduct conversations with individual users and institutions where they took healthy information and feedback about their products and brands (Davies, Musango, & Brent, 2016; Kucukemiroglu & Kara, 2015; Ho, 2014). SM platforms are best to collect the feedback and experiences of your target customers in a very fast and efficient way. This feedback and experience are very necessary in order to keep tracking the changing needs, wants, and demands of their customers. It is an efficient way of marketing research and conducting surveys. Companies record both positive and negative experiences of their customers that further helpful in devising and implementing their new strategies and measures to improve their brands according to the changing preferences and demands of customers (Bachleda & Berrada-Fathi, 2016; Wijaya, 2017). The change in the consumer’s preferences and demands enables companies to either improve their products or to introduce new ones.

Hence, we can say that social media is the most preferred, diversified, and extremely large functioning in the whole of the world. According to the report “Digital in 2018”, there are more than 42% active SM users all around the world (Kemp, 2018). This usage rate is now increased from 42% to 50% in 2020. Williams (2013), has also referred to the uses and gratification theory in which he has highlighted the ten most uses and gratification of SM. Yet, it is another debate to highlight the importance of using SM.

In the context of communication, individuals, and companies use SM for both interpersonal and marketing communication (Ludwig & De Ruyter, 2016); Floreddu & Cabiddu, (2016), like interaction with your family and friends (Cabosky, 2016); your brand awareness (Chu & Kim, 2011);  to extract useful information about your brands before and after-sales (Erkan & Evans, 2016); Kucukemiroglu & Kara, (2015), helpful in collecting the feedbacks (Balaji, Khong, & Chong, 2016), customers are contacted through their profiles (Floreddu & Cabiddu, 2016); Ludwig & De Ruyter, (2016); Wang et al., (2016); and to increase and monitor their fan followings (Mazurek, Korzyński, & Górska, (2019); Finne & Grönroos, (2017); Floreddu & Cabiddu, (2016).

Thus, SM platforms having the largest number of active users from all over the world (Kemp, 2018), where Facebook having the most features and functions in comparison with other SM platforms (Niedermeier, Wang & Zhang, (2016); Chu & Kim, (2011) Davies et al., (2016); Khan & Vong, 2014).

Whereas YouTube and Instagram or blogs enable companies and users to express themselves in the form of verbal and non-verbal communication (Kusumasondjaja, 2018); Khan & Vong, (2014); Hamid, Waycott, Kurnia, & Chang, (2015); Kim, Sin, & Tsai, (2014).  On the other hand, (Chiang & Hsiao, 2015), argued that YouTube’s growing popularity is just because of the videos that have a wide reach to the whole world. It is proved through a literature review that communication is most effective and result oriented through SM platforms.

Point to Ponder: Integrated Marketing Communication is now evolved into Digital Marketing Communication.

References:

Chiang, H-S., & Hsiao, K-L. (2015). YouTube stickiness: the needs, personal, and environmental perspective. Internet Research, 25(1), 85-106. https://doi.org/10.1108/IntR-05-2013-0085

Kusumasondjaja, S. (2018). The roles of message appeals and orientation on social media brand communication effectiveness: An evidence from Indonesia. Asia Pacific Journal of Marketing and Logistics, 30(4), 1135-1158. https://doi.org/10.1108/APJML-10-2017-0267.

Hamid S., Waycott J., Kurnia S., & Chang S. (2015). Understanding students’ perceptions of the benefits of online social networking use for teaching and learning. The Internet and Higher Education, 26, 1-9. https://doi.org/10.1016/j.iheduc.2015.02.004

Kim, K.S., Sin, S.C.J., & Tsai, T.I. (2014). Individual Differences on social media Use for Information Seeking. The Journal of Academic Libriarianship, 40, 171-178.

Niedermeier, K.E., Wang, E., & Zhang, X. (2016). The use of social media among business-to-business sales professionals in China: How social media helps create and solidify guanxi relationships between sales professionals and customers. Journal of Research in Interactive, Marketing, 10(1), 33-49.

Davies, J., Musango, J.K., & Brent, A.C. (2016). A systems approach to understanding the effect of Facebook use on the quality of interpersonal communication. Technology in Society, 44, 55-65. https://doi.org/10.1016/j.techsoc.2015.10.003

Khan, G.F., & Vong, S. (2014). Virality over YouTube: an empirical analysis. Internet Research, 24(5), 629-647. https://doi.org/10.1108/IntR-05-2013-0085

Chu, S.-Ch., & Kim, Y. (2011). Determinants of consumer engagement in electronic word-of-mouth (eWOM) in social networking sites. International Journal of Advertising, 30(1), 47-75.

Kemp, S. (2018). Digital in 2018: World`s internet users pass the 4 billion mark. Retrieved from: https://wearesocial.com/blog/2018/01/global-digital-report-2018.

Mazurek, G., Korzyński, P., & Górska, A. (2019). Social Media in the Marketing of Higher Education Institutions in Poland: Preliminary Empirical Studies. Entrepreneurial Business and Economics Review,7(1), 117-133. https://doi.org/10.15678/EBER.2019.070107

Finne, A., & Grönroos, Ch. (2017). Communication-in-use: customer-integrated marketing communication. European Journal of Marketing, 51(3), 445-463.

Floreddu, P.B., & Cabiddu, F. (2016). Social media communication strategies. Journal of Services Marketing, 30(5), 490-503. https://doi.org/10.1108/JSM-01-2015-0036

Ludwig, S., & De Ruyter, K. (2016). Decoding social media speak: developing a speech act theory research agenda. Journal of Consumer Marketing, 33(2), 124-134. https://doi.org/10.1108/JCM-04-2015-1405.

Wang, T., Yeh, R.K-J., Chen, Ch., & Tsydypov, Z. (2016). What drives electronic word-of-mouth on social networking sites? Perspectives of social capital and self-determination. Telematics and Informatics, 33(4), 1034-1047.

Kucukemiroglu, S., & Kara, A. (2015). Online word-of-mouth communication on social networking sites: An empirical study of Facebook users. International Journal of Commerce and Management, 25(1), 2-20. https://doi.org/10.1108/IJCoMA-11-2012-0070

Erkan, I., & Evans, CH. (2016). The influence of eWOM on social media on consumers’ purchase intentions: An extended approach to information adoption. Computers in Human Behavior, 61, 47-55. https://doi.org/10.1016/j.chb.2016.03.003

Balaji, M.S., Khong, K.W., & Chong, A.Y.L. (2016). Determinants of negative word-of-mouth communication using social networking sites. Information & Management, 53(4), 528-540. https://doi.org/ 10.1016/j.im.2015.12.002

Chu, S.-Ch., & Kim, Y. (2011). Determinants of consumer engagement in electronic word-of-mouth (eWOM) in social networking sites. International Journal of Advertising, 30(1), 47-75.

Cabosky, J. (2016). Social media opinion sharing: beyond volume. Journal of Consumer Marketing, 33(3), 172-181. https://doi.org/10.1108/JCM-02-2015-1323

Ludwig, S., & De Ruyter, K. (2016). Decoding social media speak: developing a speech act theory research agenda. Journal of Consumer Marketing, 33(2), 124-134. https://doi.org/10.1108/JCM-04-2015-1405

Floreddu, P.B., & Cabiddu, F. (2016). Social media communication strategies. Journal of Services Marketing, 30(5), 490-503. https://doi.org/10.1108/JSM-01-2015-0036

Whiting, A., & Williams, D. (2013), Why people use social media: a uses and gratifications approach. Qualitative Market Research: An International Journal, 16(4), 362-369. https://doi.org/10.1108/QMR-06-2013-0041

Floreddu, P.B., & Cabiddu, F. (2016). Social media communication strategies. Journal of Services Marketing, 30(5), 490-503. https://doi.org/10.1108/JSM-01-2015-0036

Kucukemiroglu, S., & Kara, A. (2015). Online word-of-mouth communication on social networking sites: An empirical study of Facebook users. International Journal of Commerce and Management, 25(1), 2-20. https://doi.org/10.1108/IJCoMA-11-2012-0070

Davies, J., Musango, J.K., & Brent, A.C. (2016). A systems approach to understanding the effect of Facebook use on the quality of interpersonal communication. Technology in Society, 44, 55-65. https://doi.org/10.1016/j.techsoc.2015.10.003

Bachleda, C., & Berrada-Fathi, B. (2016). Is negative eWOM more influential than negative eWOM?. Journal of Service Theory and Practice, 26(1), 109-132. https://doi.org/10.1108/JSTP-11-2014-0254

Wijaya, A. (2017). Role of Experience in Customer Self-Congruity to Maintaining Loyalty: A Study on Fashion Store. Entrepreneurial Business and Economics Review, 5(3), 189-198. https://doi.org/10.15678/EBER.2017.050310

Kemp, S. (2018). Digital in 2018: World`s internet users pass the 4 billion mark. Retrieved from: https://wearesocial.com/blog/2018/01/global-digital-report-2018.

Gvili, Y., & Levy, S. (2018). Consumer engagement with eWOM on social media: the role of social capital. Online Information Review, 42(4), 482-505. https://doi.org/10.1108/OIR-05-2017-0158.

Ho, Ch.-W. (2014). Consumer behaviour on Facebook : Does consumer participation bring positive consumer evaluation of the brand?. EuroMed Journal of Business, 9(3), 252-267. https://doi.org/10.1108/EMJB-12-2013-0057.

Barreto, A.M. (2013), Do users look at banner ads on Facebook?. Journal of Research in Interactive Marketing, 7(2), 119-139. https://doi.org/10.1108/JRIM-Mar-2012-0013

Duffett, R.G. (2017). Influence of social media marketing communications on young consumers’ attitudes. Young Consumers, 18(1), 19-39. https://doi.org/10.1108/YC-07-2016-00622.

Chu, S.-Ch., & Kim, Y. (2011). Determinants of consumer engagement in electronic word-of-mouth (eWOM) in social networking sites. International Journal of Advertising, 30(1), 47-75.

Grove, S.J., Carlson, L., and Dorsch, M.J. (2002) Addressing Services' intangibility through integrated marketing communication: an exploratory study. The Journal of Services Marketing, 16 (5), 393– 411.

Cornelissen, J.P., Lock, A.R., and Gardener, H. (2001) The organization of external communication disciplines: an integrative framework of dimensions and determinants. International Journal of Advertising, 20 (1), 67– 88.

Hartley, B. and Pickton, D. (1999) Integrated marketing communications requires a new way of thinking. Journal of Marketing Communications, 5 (2), 97– 106.

Kitchen, P.J., Brignell, J., Lit, T., and Jones, G.S. (2004a) The emergence of IMC: a theoretical perspective. Journal of Advertising Research, 44 (1), 19– 30.

Phelps, J.E. and Johnson, E. (1996) Entering the quagmire: examining the ‘meaning’ of integrated marketing communications. Journal of Marketing Communications, 2 (3), 159– 172.

Duncan, T.R. and Everett, S.E. (1993) Client perceptions of integrated marketing communications. Journal of Advertising Research, 32 (3), 30– 39.

Ghezzi, A., & Dramitinos, M. (2016). Towards a Future Internet infrastructure: Analyzing the multidimensional impacts of assured quality Internet interconnection. Telematics and Informatics, 33(2), 613-630. https://doi.org/10.1016/j.tele.2015.10.003

Short, J.A., Williams, E., & Christie, B. (1976). The social psychology of telecommunication. John Wiley & Sons, London.

Walther, J.B. (1996). Computer-Mediated Communication. Impersonal, Interpersonal, and Hyperpersonal Interaction. Communication Research, 23(1), 3-43.

https://smek.co.uk/

Marketing Notes