Final Asigment of BRM .. Nomi

7/31/2019 Final Asigment of BRM .. Nomi

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Naeem Ul Haq BCH 9132 Student Of Superior Page 1

Impact of IMC (integrated marketing Communication) on Consumer buying

behavior of Telecom sector of Pakistan

Why this topic:

The telecom industry/sector is one of the fastest growing sectors of Pakistan, in

which the intensity of competition is very high (five major competitors). All the

players are following aggressive competitive advertisement and promotional

strategy. But still they are facing the challenge of retaining their customer and

developing long term customer relation (loyalty). So that from this study we will

measure the contribution and impact of the integrated marketing communication

(companies communication mix) on the consumer buying behavior.

Introduction:

In the fastest growing telecom sector of Pakistan there are five main players in the

field of telecommunication sector and the level of competition is very intense due

to this competition. But still the sector experienced remarkable growth in the past

ten years. To benefit from the high growth rate the companies much not just sell

the products but also have to retain and maintain its customers.

As it is included with the marketing process, integrated marketing communication

finds and holds its position in every organization. “Integrated marketing

communications is the process which a company adopts in order to put togetherand coordinate its messages and media to deliver, clear reinforce communication”.

As it is clearly stated in the about definition of imc that it is a process through

which a company communicates its offering to the final customers and its target

market. Various marketing concepts discussed that Imc can significantly help the

organization to boosts its performance. In terms of Consumer buying behavior it is




true that the effective application of the integrated marketing communication can

gain the consumers trust and loyalty through providing them brand awareness and

creating strong positive brand association.

Integrated marketing communication also effect on the consumer buying behavior(how they think about a particular product, what they purchase, how they purchase,

when they purchase, from where they purchase)

Objective of the study:

To study the relation between the Integrated marketing

communication and the consumer buying behavior of the consumers

in the telecommunication sector of Pakistan.

To study how IMC and the consumer buying behavior are correlated

with each other.

How can we increase the performance of a telecom company by using

integrated marketing communication?

What the factors that usually contributes to the buying perception and

behavior of the consumers?




Purpose Statement

The basic purpose of this study is to develop an interest to study that how

integrated marketing communication affect the consumer buying behavior of

Telecom sector of Pakistan.

This study also gives an overview about the integrated market communication

channel of telecom sector of Pakistan and also the consumer buying behavior




Significance of the study

This study will be a significant endeavor in

This study will also be beneficial to the students and instructors in

marketing management and to understand the relationship between the

integrated marketing communication mix and consumer buying

behavior, when they employ effective learning in their classroom

setting particularly in different concepts related to the use of effective

integrated marketing communication to generate a positive consumer

buying behavior. By understanding the needs of the students and

benefits of quality education, these instructors and students are

assured of a competitive advantage.

Moreover, this research will provide recommendations on how to use

the integrated marketing communication effectively for having a

favorable consumer behavior through developing brand awareness

and positive and long term brand association of the customer with the

brand particularly in the telecom sector of Pakistan.

Moreover, this study will be helpful to the telecom industry and

business practitioners in training and informing them in the area of

integrated marketing communication.

It will also serve as a future reference for researchers on the subject of

integrated marketing communication impact on the consumer buying

behavior.

More importantly this research study will serve companies in

telecommunication sector of Pakistan to learn about the factor that

usually contributes to the buying perception and behavior of the

consumers.




Literature review

The Introduction to Integrated Marketing Communications (IMC)

IMC is considered to be the major communications development of the last

decade of the twentieth century. Most organizations even proclaim it as the key

competitive advantage of marketing. The Integration of Communications, like

anything else, attempts on combining, integrating, and synergizing the different

elements of the promotional mix. Its goal is for the messages to look, sound, and

feel alike to the consumers, despite the differences of the mixture of mechanisms

used in relaying the messages to its consumers.

IMC emerged and grew as a result of different factors. First is the

movement of the marketing budget below the line, moving away from the mass

media advertising. Second are the media explosion and its accompanying

fragmentation. Third factor is the degasification and splintering of the market.

Fourth is the emergence of the niche and unitary markets, as well as its greater

segmentation. The revolution in the information technology, which is still

sweeping the world, is the fifth factor. The sixth to eleventh factor are the

following: (6) More development of, easier access to, and usage of huge consumer

databases that effectively underpin marketing communication of all types; (7) The

importance of reinforcing consumer loyalty thru relationship marketing; (8) The

importance of building and increasing a brand‟s image based equity; (9) The

recognition of the brand as the primary driver of corporate success; (10) The

development and diffusion of digital technology; and lastly, (11) The spread of

multinationalization and globalism, supported by economic and political means.

IMC was here, although the emphasis was on making it effective, rather on

what it was. In the year 1990s, a set of studies, most of which are with ad agencies,showed and proved that IMC, in fact, is really effective. It increased the impact of

communications, made the creative ideas even more effective, and provided

greater consistency on communication. In addition, it also improved the client

return on communication investment.




Therefore, another definition for IMC is that it is a new approach to

marketing communications planning being driven by technology, customers,

consumers, and by the organizational desire of allocating its finite resources

properly. IMC is still an emerging discipline and integration. It is considered as the

transition between the old historical product-driven, outbound marketing systemsversus the marketplace of the twenty-first century, characterized as being the new

information-driven, interactive consumer focused.

The Seven Main Elements of Modern Promotion

The seven main elements of the modern promotion relates to the IMC

concept. Each element has to be consistently coordinated and juxtaposed thru the

different medias, in order for consumers to perceive the messages as one message.

This is irrespective of the form or media used. The only important element is for

communication, via any or all of the promotional mix elements, which then need to

be integrated.

Advertising

Advertising can be a powerful tool within the overall marketing

communications mix. It is a dynamic and constantly evolving sector, faced with

numerous challenges brought about by the new competitive world of technology.And due to this fact, new means of evaluation for its relative value of contribution

towards the overall effectiveness of its communication needs to be found.

There are many available techniques in assessing the effectiveness of the

advertisement on communicating its intended message, even before the ad is

actually shown to the public. Pre-testing is one, in which it identifies the

effectiveness of a given advertisement, although it does not guarantee its success in

the marketplace. Adidas can implement this, as this is the most common measure

used by companies. It will further save the company through the avoidance of hugespending on unproductive advertisements.

Sales Promotion




Promotion campaigns can be evaluated through a number of methods and

measurements. First is the analysis of the sales data and information from the

registered purchases. Comparisons between the pre-promotion period, promotion

period, and the post-promotion period can also be conducted, as well as the

evolutions in sales, market shares, trial, repeat purchases, increased penetration onmarket, differences by region, etc. In addition, redemption rates can also be

calculated for the coupon campaign. Consumer surveys, on the other hand, is a

way to test how and to what extent does the consumer recalls, likes, and intends to

benefit from the coupons, extra volume, or premiums. It also measures how

promotion campaign affects the brand image, as well as the longer-term buying

intentions and behavior of its consumer. Experiments can also be designed to pre-

test the variety of promotion schemes. This can be done thru variations of incentive

value, type of incentive, and the distribution and/or advertising media used infinding the most effective among the different types of promotions. Lastly, a sales

force feedback can be utilized to give the manufacturer an idea about the impact of

trade promotions. All of these measures can be used by Adidas since they have

enough budget for it, and it has a lot of advantages on their part. The final choice

regarding the combinations and the specific allotment for each, now depends on

the management„s discretion.

Direct Marketing

Direct marketing is one of the communication tools in which its

effectiveness can be easily measured. The purchasing trends, as well as the

differences between the buying behavior of customer segments and even individual

customers, can be tracked in detail, using the database information as its basis.

And, if integrated with the information on timing and the measured effects of

marketing campaigns, it can answer a series of interesting questions. This includes

questions on the buyers‟ purchasing frequency and the specific item he is inclined

to buy the most, as well as the budget allocated for that purchase. It can alsoanswer questions regarding the effects of their latest sales promotion campaign, as

well as matters on customer base and the like.

The number of responses in relation to the number of direct mails sent, or

the number of orders relative to the total response can be calculated within days or




weeks after the campaign. Similar thing can be done with the telemarketing

campaign or direct response ad. Thru the counting of the number of orders,

calculation of their monetary value, and analysis of the customers that placed an

order, the assessment of the result of the mail order catalogue campaign is made

possible. Pre-tests can also be done prior to the execution of the campaign. One of which is the list testing, where the mail is sent to a random sub-sample of the

database that the marketer intends to use. Another is the offer made, which is one

of the key success factors in a direct marketing campaign. In addition to this, the

creative execution, as well as the copy of a mail or direct response ad, can also be

tested. There is also the need for the assessment of the optimal frequency of direct

marketing campaigns for various target groups. This is in response to the problem

against the loss of valuable opportunities.

Marketing Public Relations (MPR)

Standard measurements such as recall, awareness, comprehension, or

measurements on attitudes can be used whenever proactive MPR is implemented.

Take this as an example: after a major MPR-originated news story has appeared,

recall of the story and its key points (coupled with correct brand identification)

could be measured. After the running of the MPR activity, measurements on the

attitude changes towards an organization or a particular product, can now proceed.

However, similar to the advertising, there are certain time lags between the MPRactivity and the actual sales.

Sponsorship

The effectiveness of sponsorship campaigns are the most difficult in terms

of its measurement. Despite that fact, there is still the need for its measurement.

One way of measuring its effectiveness is thru the exposure of the target groups

relative to the sponsor‟s brand. This can be done by the registration of the

frequency of the exposure of the sponsor‟s brand to the members of the target

groups. Next is the measurement of the communication effects of the campaign.

The main goal here is to gather relative facts, like how many people are aware of

the brand before and after the event, and the like. Feedback of participating groups

can also be sought by interviewing the event participants. Lastly, examination of




the development undergone by the sales and market shares, is another way of the

assessment of the sponsorship campaign‟s effectiveness.

E-Communications

One of the basic types of measurement for this is the asking for feedback at

the website. This can be done by leaving a contact e-mail address or insertion of a

form specifically designed for feedbacks. Second are to conduct online or offline

surveys. Although more complicated compared to the first, it can gather a lot of

information about the customer, like his status, attitudes, satisfactions, and

intentions. This information can also be further use for optimization of the website,

in terms of information content, service, navigation characteristics, ease of

interaction and transaction, as well as the building of customer relationships. Log-

file analysis is also useful in terms of tracking and analyzing the behavior of the

web surfers. Cookies, on the other hand are used in analyzing website traffics. The

effectiveness of online advertising and sales promotion can also be measured thru

the number of click-troughs generated, number of interactions effectuated, or the

redemption rates of e-coupons.

Relationship Marketing

A Regency-Frequency-Monetary Value (RFM) model is used to measure

the effectiveness of relationship marketing. Three indicators are monitored for each

customer, using this approach. They are the time elapsed since the last purchase,

the frequency of the placing of orders by customers, and the average amount of

money spent by a customer per purchase. For each variable, a number of categories

can be defined, as well as the target group, using past experiences together with the

response rates of different categories, as their basis.




Theatrical framework

Impact integrated Marketing communication on the Consumer buying

behavior on telecommunication sector of Pakistan.

IMC program Consumer

buying

behavior

Brand

Association

Satisfaction

Brand

Awareness




Hypothesis

1. H1: there is an relationship have effect on IMC program in Brand awareness

2. H0: there is no relationship have effect on IMC program in Brand awareness

3. H2: there is an relationship have effect on IMC program in Brand

association

4. H0: there is no relationship have effect on IMC program in Brand

association

5. H3: there is an relationship have effect on IMC program in Satisfaction

6. H0: there is no relationship have effect on IMC program in Satisfaction

7. H4: there is an relationship have effect on Consumer buying behavior in

Brand awareness8. H0: there is no relationship have effect on Consumer buying behavior in

Brand awareness


Brand association

10. H0: there is no relationship have effect on Consumer buying behavior in

Brand association


Satisfaction12. H0: there is no relationship have effect on Consumer buying behavior in

Satisfaction




Ethical consideration

With the permission of the respondent, the study will be carried out

All the information of the respondent will be kept confidentially.

Everything will be explained to the respondent so that he/she can‟t face any kind of

ambiguity at the end.

Respondent can withdraw at any time.

Objectives of this study will be explained to the respondent.

It will be insured that participant would not be forced or disempowered at any step.

Limitations and Delimitations

The performance is not only the function of emotional expression but also the

function of ability.

Emotional expression is a deep context which may be more complex than brand

awareness, brand association and satisfaction.And the delimitations are

This study is restricted to the communication & SMC.

The unit of measure is only employees for the job satisfaction of the brand

awareness.



Final Asigment of BRM .. Nomi

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