A STUDY ON ROLE OF ONLINE MARKETING IN INTEGRATED

MARKETING COMMUNICATION

Submitted in partial fulfillment of the requirements for

Master of Business Administration (MBA)
Guru Gobind Singh Indraprastha University
New Delhi

By

PANKAJ BISHT

Roll No:98318403918

Batch 2018-20
Under the Supervision of
DR. BABITA BHATI
Assistant Professor

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO M-l, POCKET P-5,

GREATER NOIDA-201306 (UP)
Executive Summary

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.”

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.
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 .

In order to attain these objectives, the methodology uses descriptive research design. Data is collected
from secondary as well as primary sources. 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 Delhi
/NCR suburbs and sample frame as educational institutions & corporate offices.
CHAPTER 1

INTRODUCTION

1.1 Introduction to Integrated Marketing Communication

“At the heart of any business strategy is a marketing strategy; Businesses exist to deliver
products that satisfy customers”.

Integrated marketing communication (IMC) is an approach used by organizations to brand

and coordinate their communication efforts. The American Association of Advertising
Agencies defines IMC as "a concept that recognizes the added value of a comprehensive plan
that evaluates the strategic roles of a variety of communication disciplines, and combines
these disciplines to provide clarity, consistency and maximum communication impact." The
primary idea behind an IMC strategy is to create a seamless experience for consumers across
different aspects of the marketing mix. The brand's core image and messaging are reinforced
as each marketing communication channel works together in unity, rather than in isolation.

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.”

Koekemoer & Bird, (2004) defines Integrated Marketing Communication as the collective
activities, materials and media used by a marketer to inform or remind prospective customers
about a particular product offering and to attempt to persuade them to purchase or use it.

IMC 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, messaging and branding consistency - a proven IMC
concept - yield customer satisfaction and loyalty.
1.2 IMC – The Changing trend

Media has undergone an extensive phase of development in the last ten years. Marketers were
previously focusing on promoting their product/service through traditional mediums like TV,
Radio, Newspapers, however, now the future of marketers appears to be digital as technology
has become an important part of daily lives (Pall & McGrath, 2009).

Concepts like convergence have come in to bring more versatility in the communication
mediums being used. Convergence represents a paradigm shift – a move from medium
specific content towards content that flows across multiple media channels, towards the
increased interdependence of communication systems, towards multiple ways of accessing
media content, and towards ever more complex relations between top-down corporate media
and bottom-up participatory culture.‘ (Jenkins, 2006)

The concept certainly suggests about making the communication mix ― interdependent
bringing in more integration and moving towards having multiple ways of accessing media
i.e. bringing in more versatility in the marketing mix by using a mix of traditional and new
media. Moreover, it refers to the behavior of media audience as being migratory, i.e. shifting
to the media that can provide them their desired experience. In such an environment,
customers are actively involved in seeking new information and make connections among
dispersed media content.

Benefits of IMC
IMC helps to create Top of Mind (TOM) awareness with the aid of various marketing tools.

 IMC not only creates awareness, but, evokes the purchase action. IMC persuades

the customers to buy the product or service through creative messages, free gifts,

trial offers etc.

 IMC helps to develop brand loyalty that results in repeat purchase and favourable

recommendations to others by existing customers.

 By using various techniques of promotion, IMC may help expanding the market
from local to regional, regional to national, national to international.

 Different marketing tools may be aggressively used to block the competitor’s

marketing efforts.

All the above benefits of IMC lead to develop the brand image as well as the corporate image
in the mind of customers.

Limitations of IMC

 Lack of coordination within various departments within the large agencies over areas such as sales
promotion, advertising, public relation. This may also lead to internal conflict.

 It limits client’s ability to take advantage of specialists in various IMC areas.

 Synergy and economies of scale are not achieved by a single agency handling all communication
areas.

Future of IMC

The conception of integrated marketing communication (IMC) is fairly new. The IMC tools

allows marketing manager to plan and then execute his marketing communication

programs, which create and maintain mutually beneficial, long-term relationships with the

target market by satisfying their needs and wants. This means that promotion tools are used

to create loyalty.

The future trends of IMC are discussed in the following:

 Competitive Advantage:
The Various tools that organization has can be used as a competitive edge against the competitors.
Competitive advantage is the edge and the ability of firm to provide superior value to its target market as
compared to competitors. As IMC components are designed as a whole, the organization is able to focus
its efforts in all the communication elements that create single, powerful brand equity by speaking with
one voice.
 Equity

IMC strategies are essential to the company's strategic brand management because IMC
strengthens the interface between the organization's strategy of brand identity and the target
market's brand equity. The organization that uses IMC strategies will be able to measure the
brand awareness and brand image of its various offerings. Specifically IMC strategies and
brand identity are the most vital parts of the company's overall brand equity strategy. The
brand identity strategy of the organization serves as a foundation for its overall IMC initiative
and, for this reason, accounts for to the firm's brand equity.

 Online Advertising:

Online Advertising is becoming powerful IMC tool for advertisers and organization can use
online advertisement as people are now spending more time online; the Internet became
another channel via which companies can market their offerings successfully. (Google 2007)
Because of the Internet's versatility, it will give an organization the opportunity to reach and
interact with its target market. Companies can now produce an IMC campaigns that
exclusively target the desired customer more successfully with less cost as compared to
traditional communication efforts. Online campaigns will give organization new abilities to
the organization due to the following reasons:

 Reach: The Internet used by more than 170 million people only in the United States.

 Relevance: Online Advertising shows ads to potential customers who are actively
searching for what businesses have to offer.

 Return on investment (ROI): Using analytical tools, companies can understand more about
the effectiveness and efficiency of their ads. (Google 2007)

 Viral marketing:

Viral marketing is an IMC technique that is mostly used for trendy brands; Marketers are
increasing acknowledging viral marketing as an important IMC tool because it offers the
traditions benefits and effectiveness of advertising. In viral marketing the organization
promotes its product using Word of Mouth Marketing (WOMM), utilizing individual's
communication networks, and relying on their individual recommendations to sell the
product. Companies actively seek viral marketing, by fueling discussion on their offerings.
(Groucutt, J. et al 2004).

1.3 Introduction to Online Marketing

Online Marketing is the art and science of selling products and/or services over digital
networks, such as the Internet and cellular phone networks.
The art of online marketing involves finding the right online marketing mix of strategies that
appeals to your target market and will actually translate into sales.
The science of online marketing is the research and analysis that goes into both choosing the
online marketing strategies to use and measuring the success of those online marketing
strategies.

Online marketing uses 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
of the advertiser.

Importance of Online marketing

Growth of internet users must be credited for the growth of online marketing. With the advent
of internet technology number of internet user is increasing at the greater extent across the
world. India stands at forth place with 81 million internet users in 2010.
(www.internetwoldstats.com)
Fig 1.1 Top 20 countries with highest number of internet users

Online marketing is becoming increasingly important to small businesses of all types. In

the past, marketing online was something that local bricks-and-mortar businesses could

justifiably ignore. It didn't make sense to waste time and money on online marketing

when all your business was local.

Now with increasing local search and people's new habit of searching on the Internet

first, it matters.

Online marketing refers to a set of powerful tools and methodologies used for promoting

products and services through internet. Online marketing includes a wider range of

marketing elements than traditional business marketing due to the extra channels and

marketing mechanisms available on the internet.

Following are few specific contributed to the growth of online marketing -

 Online marketing can deliver several benefits such as:

 Growth in potential

 Reduced expenses

 Elegant communication

 Better control

 Improved customer service

 Competitive advantage

Online marketing is also known as Internet marketing, Web marketing, digital marketing

and search engine marketing (SEM).

 Offline and online work together

If you have a brick-and-mortar store, you know creating an image is key to bringing in

customers. That’s why online branding is vital. Com Score reports the average American

spends 32 hours online every month. 42% of Americans report watching TV while

browsing the Internet.

Having consistent messaging across different mediums reinforces your values and brand.

Offline tactics will often result in larger online results.

 E-commerce is not the future…it’s the present

Forbes Magazine reports retail is down and e-commerce is up. One clear example of the

power of e-commerce comes from Macy’s recent returns. Forbes reports the 154 year old

retail chain saw online sales rise 40% in 2011 while same-stores sales grew just 5.3%.

Maybe you’re not a billion-dollar business like Macy’s, but the numbers don’t lie. Online

sales are overtaking retail sales.

Safe to say e-commerce is trending upward more and more each year. It’s not too late to

jump onboard the e-commerce train.

 Online marketing is cost-effective with measurable results

In the old days, buying a newspaper ad was one way to reach potential customers, but

now, newspaper circulation is decreasing dramatically. However a full or even half-page

ad in a local paper could still run you thousands of dollars and may not reach your target

audience.

Web analytics tools allow you to track meaningful metrics and offer you the opportunity

to make informed business decisions on data and not just assumptions. Based on data,

one can determine the actual ROI of the online campaigns. If these are not meeting

expectations then the data provides with the rationale to terminate the campaign.

 Online business never sleeps

The Internet has no “business” hours. It’s open 24/7/365. That gives you the ability to

promote, to engage and, most importantly, to sell around the clock. As mentioned above,

traditional media advertising (like newspaper and television) may cast a wide net but is

limited in scope. Online marketing is also a time and money saver in other ways.

The proliferation of web-enabled smartphones has done nothing, but accelerates this

development. It’s no longer even required that you be at a desk to access the internet.

Whether customers are sitting in traffic, jogging in the park or eating at the dinner table,

they have access to company’s website and the online advertising.

Advantages of Online Marketing

One of the most important advantages is the fast availability of the information. The
clients/users can easily get information, by navigating the internet, about the products
that they wish to purchase, and besides that, they can check the information at anytime
of the day.

1. It allows the companies to save money, an aspect that is really taken into account by the
companies since the online marketing campaigns don’t require a large amount of
investment.
2. The previous mentioned aspect, gives less importance to the differences between large
and small companies in some way, thus increasing the competition and giving that way
advantages to the customers.
3. Presence on the Internet can help the expansion of the company from a local market to
national and international markets at the same time, offering almost infinite expanding
possibilities.
4. On the internet everything can be measured, thus it’s easier for the companies to know
almost instantly if their campaign is working or not, what company or user is interested
in their products, from what cities or countries are they, etc.

Disadvantages of Online Marketing:

1. Slow internet connections can cause difficulties. If the companies build too complex or
too large websites, it will take too long for users to check them or download them and
they will get bored eventually.

2. The e-commerce doesn’t allow the user “to touch” the merchandise before purchasing
it. Because of this, some salesmen are starting to guarantee the possibility of returning
the product. In Germany, where a law that regulates e-commerce and guarantees the
customers the total refund of the money exists since 2000, the electronic commerce is
very popular.

3. Other factor is the payment: many users still don’t trust in the electronic methods of
paying and give up buying online because of this.
4. One of the major disadvantages may be the lack of trust of the users because of the
constant virtual promotions that appear to be frauds. This is an aspect that deteriorates
the image and reputation of quality and honest companies.

5. Other disadvantage is the cash on delivery system, since it doesn’t guarantee the 100%
purchase of the product. This is also the case of thousands of users that dedicate
themselves to daily mock big companies by ordering on the internet using false
identities.
CHAPTER 2

OBJECTIVES
Primary Objective
 To understand the reasons for growing popularity of online marketing.

Secondary Objective

 To understand the importance of Integrated Marketing Communication.

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

CHAPTER 3

LITERATURE REVIEW

Literature on Integrated Marketing Communication

Philip Kotler & Kevin Lane Keller, Marketing Management, New Delhi, Pearson Education,
2006, pg. no. 52 Integrated marketing communication can produce stronger message consistency
and greater sales impact. It forces management to think about every way the customer comes in
contact with the company, how the company communicates its positioning the relative importance
of each vehicle and timing issues. It gives some responsibility to unify the company’s brand image
and messages as they come through thousands of company activities. IMC should improve the
company’s ability to reach right customers, with the right message, at right time in the right place.
Thus personal and non-personal communication channels should be combined to achieve maximum
impact.

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

A revolutionary development in the shift to the strategic concept of marketing is in the marketing
objective – from profit to consumer benefits. There is a growing recognition that profits are a
reward for performance (defined as satisfying customers in socially responsible or acceptable
ways). To compete in today’s market, it is necessary to have an employee team committed to
continuing innovation and to producing quality products. In other words, marketing must focus on
the customers and deliver value by creating consumer benefits. This change is revolutionary idea
that is accepted today by a vanguard minority marketing practitioners. The idea of integrated
marketing communication (IMC) is to create consistency and synergy by combining marketing
communication elements so that they support and enhance each other, to promote potential
communication understandings (Duncan and Everett, 1993).

Integrating Online & offline marketing together, Fitzpatrick Michele, Direct marketing, Oct
2003, pg no. 50. The concept of integrating online & offline marketing to build success is one who
time has come. While many companies still view their online & offline efforts as separate entities,
savvy marketers are slowly realizing that success comes through integration through all channels to
provide consumers with what they demand- accessibility, choice & convenience.

Viral marketing is an IMC technique that is mostly used for trendy brands; Marketers are increasing
acknowledging Viral marketing as an important IMC tool because it offers the traditions benefits
and effectiveness of advertising. In viral marketing the organization promotes its product using
Word of Mouth Marketing (WOMM), utilizing individual's communication networks, and relying
on their individual recommendations to sell the product. Companies actively seek viral marketing,
by fueling discussion on their offerings. (Groucutt, J. et al 2004).

As per Don Schultz (2008), ―IMC is a strategic business process used to plan, develop, execute
and evaluate coordinated, measurable, persuasive brand communication programmes over time with
consumers, customers, prospects, and other targeted, relevant external and internal audiences. The
key difference in this definition of IMC from that of simple Marketing Communication is
highlighted by use of three words: i) strategic, ii) evaluate and iii) measurable. In essence, IMC
enforces use of marketing communication mix in such a way that it is strategically designed to
achieve certain objectives, measured to enforce accountability over marketers and are evaluated
over time. These elements are also stressed on by various IMC authors (Schultz, 1996; Duncan &
Caywood, 1996), who believe that although the concept of IMC is not new, but the fact that
previously marketing communication was not coordinated strategically and strategy is now believed
critical, gives this concept a new look.

In another definition of IMC given by a well-known author on IMC literature, Kliatchko (2005)
reflects the same concept. As per the author, IMC is the concept and process of strategically
managing audience-focused, channel-centered and results-driven brand communication
programmes over time. This definition is a bit more specific and along with strategy and
accountability it emphasizes specifically on communication being channel-centered and audience-
focused. Managing and coordinating the integration of company‘s communication across different
media and channels is an important aspect of IMC. IMC does involve a process/plan aimed at
providing consistency and impact through integration of communication via different mediums
(Larich & Lynagh, 2009).

Kitchen and Schultz (1997) believe that integrated marketing communication has significant value
for the organization, specifically in lowering costs and having greater control over the marketing
communication program. This is supported by Duncan and Everett (1993) who extend the benefits
to include gaining competitive advantage through IMC.

Radio, Newspapers, however, now the future of marketers appears to be digital as technology has
become an important part of daily lives (Pall & McGrath, 2009).
Concepts like convergence have come in to bring more versatility in the communication mediums
being used. Convergence represents a paradigm shift – a move from medium specific content
towards content that flows across multiple media channels, towards the increased interdependence
of communication systems, towards multiple ways of accessing media content, and towards ever
more complex relations between top-down corporate media and bottom-up participatory culture.
(Jenkins, 2006)

According to Kotler & Armstrong (2003), there are five traditional IMC elements quoted as
Advertising, Sales Promotion, Direct marketing, Personal selling and Publicity/Public relations.
According to Institute of Practitioners in Advertising (IPA), 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 non-personal presentation and promotion of ideas, goods and services through mass media
such as newspapers, magazines, television or radio by an identified sponsor".

According Perkin (2003) “as media-blitzed, ad-cynical, time-poor, channel- flicking audience
living in a fast-paced, attention-challenged world” The fact is that due to fast pace of technology,
and globalization of the world, consumer behavior around the world is changing. Today customers
have more control over what to see, and read and therefore IMC need to tailor the organization
campaign as per the requirements of the market.

IMC tries to maximize the positive message and minimize the negative once and communicate
them using the proper tools. A successful IMC program uses the combination of the right tools,
define their role and coordinate their use. The company should use the contact method that offers
the best way of delivering the message to the target audience. (Duncan, 2002)

AIDA model developed by Elmo Levis is the set of stair –step stages, describes the stages
through which every potential customer passes till the act of purchase.
This basic model guides the copywriters in writing persuasive copy. AIDA is an acronym of
Attention – grab the attention of target audience and attract them towards ad

message. It leads to generate -

Interest – in the central theme of the ad that presents a forceful selling point,

which arouses –

Desire – to give positive response and act in a favourable manner that ultimately

leads to –

Action – of purchasing product or making an inquiry for the product.

Tools of IMC

As stated earlier, more and more resources are allocated away from the traditional mass media

advertising and used on other communication tools. This allocation of communication budgets is

deeply connected to the appearance of, and is the major part of IMC. (Holm, 2006)

The classic tools –

It is very seldom that companies use one tool of marketing communication. Companies have used a

mix of tools for a long time but that does not mean that they are practicing IMC. The difference

when using IMC is the strategy behind the use and how the mix is coordinated. Duccan (2002) lists

the different tools or functions as advertising, public relations, sales promotion, the personal

connection (direct response & personal sales) and experimental contacts (events & sponsorships).
Advertising

Mass media advertising, or the awareness builder, consists of “non-personal, one way, planned
messages paid for by an identified sponsor and disseminated to a broad audience in order to
influence their attitudes and behavior.” (Duncan, 2002, p. 506). Advertising is the most common of
all the IMC tools and this is equal to marketing for many people. It is a very broad tool and primary
objective is to create awareness.

Personal selling

Personal selling is defined as “Two way communication in which a seller interprets brand features
in terms of buyer benefits.” (Duncan, 2002, p. 617). Also called the face-to face function, it
involves one-to-one marketing using face to face communication. Before, personal selling was
focused primarily on sales, but now has to focus on salving problems and adding value.

Public relations

Also called as credibility builder, public relations seek to affect the public opinion as well as
company stakeholder. It can be a concept, a profession, and a management as well as a practice.
Public relation can create a goodwill and a positive understanding between an organization and its
stakeholders. Marketing PR is defines as non-paid media to deliver positive brand information
designed to positively influence costumers & prospects.” (Duncan, 2002, p. 543)

Sales promotion

Sales promotion [SP] and the value added communication, is a communication tool that encourages
people to action by adding value. It is “a short term, added- value offer designed to encourage and
accelerate a response” (Duncan, 2002, p. 569). SP can be coupons, price reductions, rebates to
name a few and is used to persuade the customers to buy or motivate in other stages of the decision
process. Important to know is that it works in the short term.

Events & sponsorship

Event marketing & sponsorship are not the same but they overlap and have many things in
common. They are designed to create involvement and are effective to bond customers to a brand or
company. Event marketing a used to involve, increase awareness, reach audience and gain
publicity. Sponsorships have increased over the year and both differentiate and add value. The
definition is the “the financial support of an organization, person or an activity in exchange of brand
publicity and association.” (Duncan, 2002, p. 640)

Internet (the contemporary tool of marketing)

The advances in technology has 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. (Belch, Belch, 2001)

Mohammed Bin Afif (2012) believes that the power of ideas; integration across all media: The P's
of the marketing mix are argued by some to be the four C's, with communication replacing
promotion. This article champions communication as an effective tool in marketing. Within the
marketing sphere there are many mediums by which advertising messages can be conveyed to
consumers. The marketing manager must utilize all of the mediums in their thinking in order to
determine the right mix of mediums to use and in the right frequency in each to best convey their
message to the selected target market.

This article argues that mediums must work together for a unified message to be conveyed to
consumers with a feedback mechanism in place for consumers and the organization to be involved
in two-way communication. Also stated is the importance of word-of-mouth communication, which
is often overlooked by marketing managers. This ties in closely with integrated marketing
communication as the mediums must come under one umbrella, or message to be communicated,
that covers all the mediums used to ensure a single clear message is communicated to consumers.

The marketing manager must therefore be creative in their planning to not only differentiate their
marketing from the clutter that exists in the advertising world but also to create the most effective
and cost efficient marketing mix as possible. The brand must engage with the consumer to facilitate
its success and one means of achieving this is to advertise in a setting or context that the brand can
borrow the interest from or that compliments the brand.
Literature on Online Marketing

Online marketing users in One to one marketing, Fosket, Sally, Direct marketing; Nov 1996, pg
no 38

Online services will drive marketing to the opposite end of the spectrum from “mass” marketing to
customized “one-to-one” marketing. Online marketers communicate instantly and directly with the
prospective customers and can provide instant fulfillment as well. Marketers with carefully
designed World Wide Web sites are already interacting computer to computer, with prospective
customers or an individual basis, much as ATM does in very primitive fashion. Online one to one
approaches while innovative and still glamorous in their pioneering aspects, offer significant new
challenges. The significant aspect is the access with the customers. Communication and information
technology development has encouraged the emergence of new communication channels that have
increased the options available to organizations for building relationships with clients.

How important is Internet marketing to the success of an organization?

There are no exact answers for this question. It depends on the nature of one company business line.
There are many companies currently using the Internet as their main business transaction such as
DELL, AirAsia, etc… However, companies such as UPM, the world’s leading forest products
producer only uses the Internet as a media to introduce the company and its products to customers
via its website. Besides that, during the whole purchasing decision making process, customers not
only use the Internet in isolation to search for products but other media such as print, TV, direct
mail and outdoor as well. These media still play an extremely important role for the marketers
to communicate with customers, for example, direct or face – to – face marketing more or less helps
marketers build up the trust in customers and encourage them to purchase the products. Therefore, it
is better to use the Internet as part of a multi-channel marketing strategy which “defines how
different marketing channels should integrate and support each other in terms of their proposition
development and communication based on their relative merits for the customer and the company.”
(Chaffey et al. 2006, 5)

Mohan Nair (2011) takes social media as a complex marriage of sociology and technology that
cannot be underestimated in its impact to an organization marketing communication, choice as to
when to engage, how to manage and measure, and whether to lead or to follow is complex but not
an impossible task. These cannot be answered simply by one formula because the context and the
market dynamics are strong variables in these decisions. Even though the interest for social media is
huge, few companies understand what the term ―social media can mean to their businesses. But
how much it has been given importance, as an IMC tool, varies from region to region
(PricewaterhouseCoopers (PwC), 2009; BuddeComm & Chiltern Magazine Services Ltd.
(BCMSL), 2009).

According to research conducted by Nielsen, we know that 92% of consumers report that “word-of-
mouth and recommendations from people [they] know” are the leading influence on their purchase
behavior. Only 37% trust search engine ads, and just 24% trust online banner ads. They trust their
friends and family the most when looking for brand recommendations. But what types of
recommendations carry the most weight? Brands are eager to tap into the power of
recommendations, and many companies measure an “NPS,” or Net Promoter Score, which
illustrates how likely someone is to recommend a specific brand or company. According to a U.K.
study by Fred Reichheld, “a 7% increase in word of-mouth advocacy unlocks 1% additional
company growth.” His research also shows that “a 12% increase in brand advocacy, on average,
generates a 2x increase in revenue growth rate plus boosts market share” and, conversely, “a 2%
reduction in negative word-of-mouth boosts sales growth by 1%.”

It is important to understand the relationship between digital communication and traditional

communication in the old media; for example, TV, radio, newspapers, magazines and billboard ads,
the communication model was and is one-to-many compared to one-to-one or many-to-many
communication model in digital media like blogs, social networks, wikis and other social media
(Chaffey, 2003).

The increased fragmentation of media and customers, as well as the revolution in mass
communication by the new communication channels – internet and mobile communication
technologies – has created the need for a new approach to marketing communication that can ensure
centralized management and a consistency of communication messages sent towards various
audiences (McArthur and Griffin, 1997; Semenik, 2002; Smith, 2002).

Foux (2006) suggests Social media is perceived by customers as a more trustworthy source of
information regarding products and services than communication generated by organizations
transmitted via the traditional elements of the promotion mix.
Johnson and Greco (2003) explain that desires and different hopes from different clients can
sometime require certain unique information and contact strategies. Communication channels and
strategies now differ broadly from the ones in former times or offline times.

Online marketing is today seen by many practitioners as the new arena for market communication
and on top of the list of users of the different mediums is Facebook, Blogs, Twitter, YouTube and
LinkedIn (Steltzner, 2009).

Kaplan and Haenlein (2010) define social media as ―a group of Internet-based applications that
build on the ideological and technological foundations of Web 2.0, which facilitates the creation
and exchange of user-generated content. It consists of different Internet applications such as blogs,
social networking sites, content communities, collaborative projects, virtual game worlds and social
worlds. Russell S. Winer (2009) affirms that many companies today are using some or all of the
new media to develop targeted campaigns that reach specific segments and engage their customers
to a much greater extent than traditional media.

Mangold & Faulds (2009) argue that marketing managers should comprise social media in the
communication mix when developing and executing their Integrated Marketing Communication
strategies and they presented the social media as a new hybrid element of promotion mix.

Even as organizations realize the need to engage customers at as many touch points as possible,
there is still a need to stay ahead of the rapidly shifting marketing and communication landscape by
integrating social media into traditional strategies to reach out to B2B and B2C audiences. Online
opportunities and their future impact on traditional marketing are as expensive as your imagination
can provide. (Pownall, 2011).

The role of exigencies in marketing: a rhetorical analysis of Three online social networks,
thesis presented to the graduate school of Clemson university, By Greg Brian Martin, May
2007, pg no. 99.

Traditional marketing efforts have focused on determining exactly what channel to advertise
through, in order to properly segment the potential audience, but users of online social networks
have often times segmented themselves. Users of Joga, for instance, are soccer fans, users of the
Communities are interested in Adobe, and users of MySpace have the option to supply whatever
information about themselves that they wish. Marketers can spend more effort focusing on the
messages that they will use, and less time on proper audience segmentation. Another benefit to
marketing in a virtual community is that once the audience enters the network, they may be able to
ignore advertising messages, but they cannot avoid them (immersion). Consider the Adobe
Communities, for instance, which uses no outside advertisements or popup ads (that the typical user
can avoid easily), but rather advertise through immersion in that the entire network is the respective
marketing effort.

The structure of online marketing communication channels, Robert Owen

Texas A&M University-Texarkana; Patricia Humphrey, Texas A&M University- Texarkana;

Journal of Management and Marketing Research, pg no. 4

Online marketing communication are moving toward interactions between individual recipients and
consumers rather than being directed from a marketing organization to masses of consumers. It is
now possible for an individual to be just as efficient in broadcasting information, both positive and
negative, about an organization as it is for a large corporation to promote itself. The social
networking that allows the quick and easy dissemination of information and mis-information is in
part a product of changes in online communication channels, but these communication channels are
in part enabled by such social networking.

From a marketing perspective, we are at a pioneering stage in understanding how these work. The

emergence and popularity of social networking websites and social media has made it just as easy

for an individual to communicate in real time with thousands of total strangers as with a single close

friend. Social networking websites have also been a great equalizer, making it just as easy for an

individual to build or break a marketing brand as for a large corporation – as well as making it easy

for a large corporation to mimic a sincere "grassroots" individual who lacks corporate motives. A

social networking website is defined here as "one that allows internet users the ability to add user-

generated content such as: comments, feedback, ratings, or their own dedicated pages" (iProspect,

2007, p. 3). Websites such as epinions.com, for example, allow product users to post ratings,

comments, opinions, and full reviews about products.

The distribution of products, information and promotional benefits to target customers through
interactive communication in a way that allows response to be measured. It accounts for direct
connections with carefully targeted individual customers to obtain an immediate response and
cultivate lasting customer relationship. (Jobber, 2007)

Forbes Magazine reports retail is down and e-commerce is up. One clear example of the power of e-
commerce comes from Macy’s recent returns. Forbes reports the 154-year-old retail chain saw
online sales rise 40% in 2011 while same-stores sales grew just 5.3%. Maybe you’re not a billion-
dollar business like Macy’s, but the numbers don’t lie. Online sales are overtaking retail sales. Safe
to say e-commerce is trending upward more and more each year. It’s not too late to jump onboard
the e-commerce train.

According to Forrester research, considering the current volume of internet marketing business, it’s
hard to believe how young the internet marketplace is. While the timeline of internet marketing has
been short, the cumulative events leading up to where we are now have impacted the entire globe
faster than any marketing revolution in history. In 1994, spending for internet marketing totaled
nearly nothing, but increased to over $300 million in 1995. Now, little more than a decade later,
marketing spending and internet marketing business has exploded to nearly $200 billion.

Quiroga & Kamila (2010) in their research- Marketing and Facebook, describe how fashion
companies promote themselves on social media platforms such as Facebook. This study took 34
Swedish companies into consideration. Nida, Sadaf, Sanya & Umair (2010) in their research-
Evolution of Digital Media as an IMC tool and its relevance for Pakistan aim to analyze the trends
of digital media within IMC over the years in Pakistan, the factors that have contributed to the
change and explore the importance of digital media in the marketing mix in future. Chen et al.
(2007, pp.1047) notes that ―from both theoretical and practical perspectives, it is worth studying
what makes marketing communication introduce and promote products effectively, especially in
high-tech industries.

User Generated Content

User generated content (UGC) includes online blogs, contributions to wikis, comments in forums,
and pictures and status updates on social networking sites. It‘s also called consumer generated
media‘, or consumer created media, and is a core component of the so-called second generation web
or Web 2.0. (Chris Grannell, 2009).

According to Constantinides and Fountain (2009), the power structure has changed due to fact
that customers have access to information which previously was not available for them. As a result,
the consumer attitudes changes leading to new consumer needs, values and buying behavior. Also
Hearn, Foth and Grey (2009) acknowledge that the participatory culture, enabled by recent
technological innovations, shifts the communication flows away from a central business-to-
consumer model. The development is towards consumer-to-consumer flows of communication as
customers start to create content on their own by using new media applications and services.
(Hearn, Foth and Grey 2009, pp.49.)

Mangold and Faulds (2009) point out that the popular business press and academic literature offers
marketing managers very little guidance for incorporating social media into their marketing
communication strategies. Social media should be included in the promotion mix when developing
and executing their integrated marketing communication strategies. It is a hybrid element of the
promotion mix because it combines characteristics of the traditional integrated marketing
communication tools with a highly magnified social media influence whereby marketing managers
cannot control the content and frequency of such information. Social media is also a hybrid due to it
springs from mixed technology and media origins that enable instantaneous, real-time
communication. Is also utilizes multi- media formats and numerous delivery platforms, with global
reach capabilities. (Mangold and Faulds 2009, 359.)

The internet has become a mass media vehicle for consumer sponsored communication. It now
represents the number one source of media for customers at work and the number two source of
media at home. Customers are turning away from the traditional sources of advertising: radio,
television, magazines, and newspapers. Customers also consistently demand more control over their
media consumption. They require on-demand and immediate access to information at their own
convenience. Customers are turning more frequently to various types of social media to conduct
their information searches and to make their purchasing decisions (Lempert, 2006; Vollmer &
Precourt, 2008).
The internet and the marketing mix

Nowadays, the concept of Internet marketing has expanded and brought more opportunities
for companies to approach their customers. In the past, the Internet was only used as a tool to
contact customers, part of direct marketing. Nowadays, the Internet, particularly websites has
been becoming a popular media for any firms to introduce their products and services. The
Internet is considered as an independent and effective marketing tool. During eight years,
from 2000 to 2008, the number of Internet users has increased by 4 times from about 361
millions to more than 1, 46 billion (http://www.internetworldstats.com/stats.htm ), in
which, Asia, the continent with the biggest population accounts for 39.5% of World Internet
Users.

In Finland, nearly four out of five Finns aged 15 to 74, or over three million persons, used the
Internet in Spring 2007 (www.stat.fi). To understand precisely how the Internet offers new
opportunities to traditional marketing model, it is necessary to examine it based on the
marketing mix which is traditional but still applicable.

In 1960, Jerome McCarthy introduced the marketing mix - widely referred as the 4 Ps of
Product, Price, Place and Promotion. Until now, it still plays an important role in formulating
and implementing marketing strategy. The 4 Ps have been developed and extended to the 7 Ps
with the appearance of People, Process and Physical evidence (Booms and Bitner, 1981). It
provides an effective strategic framework for changing different elements of a company's
product offering to influence the demand for products within target market (Chaffey et al.
2006, 215).

However, the researchers only focus on the first main and traditional 4 Ps in this paper due to

some limitations.

According to Philip Kotler (2003), Product is the solution to customers wants or/and needs. It

refers to the characteristics of a product, service or brand. The Internet offers options for

varying the core product, options for changing the extended products, conducting research

online, velocity of new product development and velocity of new product diffusion (Chaffey

et al. 2006, 217 - 222). Many digital products now can be purchased easily over the Internet
via providers’ website. For other products, instead of providing actual products to customers,

many companies publish the detailed product information with pictures or images. Thanks to

this, consumers still have concepts about different kinds of product even when staying at

home. Besides that, for some companies, it is possible for buyers to customize products. Dell

is a typical example. Through its websites, a customer can build a laptop or a desktop with the

desired functions and features. Besides that, companies also can supply more extended

product user guides, packaging, warranty, after sales services in a new method. For example,

new drivers or updated package for a computer or software are easily downloaded via

producers’ websites. It brings conveniences for both of buyer and seller/ producers. In

addition, it is obvious that the Internet provides a new tool to collect customer feedback

quickly and accelerate new product development since process of testing new products is

more rapid and effective. The information about new products will spread out more wildly

and quickly.

Companies can use the Internet to build differential price for different customers in different
countries, based on IP (Internet Protocol) analytic technologies. For buyers, they are able to
find out the price differences by visiting companies' websites or price comparison sites. In
addition to this, the Internet also reduces costs and price per product by reducing operating
costs of stores and number of staffs. Therefore, the Internet is considered as the most effective
marketing tool.

(P S Verma et al. 2003, 135-156). Together with these advances, many new payment
methods are created. The online payment method using credit cards is the most popular,
efficient, convenient and flexible way for companies and customers. Bills can be paid at any
time and in anywhere. Moreover, companies can cut costs by reducing paper works since the
customers fill all the necessary information such as their own private information and credit
cards information by themselves.

Beside these conveniences, online customers still have to worry about securities and privacy
matters. Hence, some third parties provide services to protect consumer privacy and to secure
transactions. PayPal is one of the most successful companies in this business sector.

Place in the marketing mix refers to how the product is distributed to customers. New method
of distributing goods through online selling is offered by the improvement of the Internet. It is
possible for customers to make their purchasing decisions anywhere at any time. The Internet
has the greatest implications for the Place in the marketing mix because it has a large market
place (Allen and Fjermestad 2001, 14-23). Companies now can expand their business from
local areas to the whole country even to international market. They also can use the Internet to
exploit new markets with low cost international advertising since they do not have to establish
sales infrastructure in different countries (Chaffey, 2006, 237-243).

Price is the most flexible element comparing to other three elements of the marketing mix,
since it can be changed quickly to adapt to the market's demand.

The Promotion element of the marketing mix refers to how marketing communication are
used to inform customers and other stakeholders about an organization and its products
(Chaffey, 2006, 243). The Internet can be used to review new ways of applying each of
elements of communication mix such as advertising, sales promotions, PR and direct
marketing; assess how the Internet can be used at different stages of the buying process; and
assist in different stages of customers relationship management from customer acquisition to
retention (Chaffey, 2006, 243 - 245)

Online marketing communication is initiated through the use of marketing media vehicles
such as social media networks, forums, e-mail, ads, blogs, press release, RSS distribution, and
other promotional tools.

If you have a website selling products or services, it can help you generate traffic of visitors to
your website and before you know it, you are getting leads and making sales. Generating
traffic to your website is very important, but of course, your website needs to look unique,
well-structured, rich contents, and search engine optimized. This will make you stand out and
above your competitors. However, those new visitors will help in word-of-mouth
communication by telling others about your unique and rich content website.
The internet marketplace is getting flooded on a daily basis. These have resulted to several
large companies hiring online marketing specialists to do a great job in promoting their web
businesses. It is the small- and medium-sized enterprises who are looking for cost effective
solutions. Of course, if a company does not have the money to hire a services provider and
they are willing to learn as much as they can about marketing on the internet, they could do a
great job of promoting their website.
CHAPTER 4

RESEARCH OBJECTIVES & METHODOLOGY

Scope of the research

The study aims 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 marketing as a tool of integrated marketing
communication. The recommendations of this research can be used to frame an appropriate
Integrated Marketing Communication strategy in which companies can give special consideration to
online marketing along with the other traditional tools of IMC.

Research problem

This study focuses on following problems –

 Should companies integrate various marketing tools to communicate about its brand?

 How do consumers get awareness about different brands?

 How online marketing plays important role in companies’ marketing strategy?

 What are the reasons for growing popularity of online marketing among consumers?

 How is online marketing advantageous over traditional marketing?

 What are the loopholes in online marketing?

Research Methodology

The first step is to formulate a research design. This means planning a strategy of conducting
research. It is a detailed plan of how the goals of research will be achieved. Research design is
exploratory, descriptive and/or experimental in nature. It is helping the investigator in providing
answers to various kinds of social/economic questions. After collecting and analysis of the data, the
researcher has to accomplish the task of drawing inferences. Only through interpretation researcher
can expose relations and processes that underlie his findings and ultimately conclusions.
Interpretation refers to the task of drawing inferences from the collected facts after an analytical
study.

It is a search for broader meaning and research findings. It is the device through which factors that
seem to explain what has been observed by researcher in the course can be better understood and
provides theoretical conception which serve as a guide for further researches. It is essential because
it will lead towards findings of the study and proper effective conclusions of the study.

In the present study, researcher has followed Descriptive research. Descriptive research is
usually a fact finding approach generalizing a cross - sectional study of present situation. The
major goal of descriptive research is to describe events, phenomenon and situations on the basis of
observation and other sources.

Survey Method:

The survey method is the technique of gathering data by asking questions from people who are
thought to have the desired information. Every effort should be made to state the objectives in
specific terms.

The survey design can be defined as: “gathering information about a large number of people by
interviewing a few of them.”(BACKSTROM & HURSH P3)
The definition can be modified by stating that collecting information with other data collection
alternatives available to survey researcher in addition to interviewing i.e. questionnaire, personal
observation etc.
Surveys are conducted in case of descriptive research studies with the help of questionnaire
techniques in most appropriate manner. Survey type of research studies usually have larger
sample. It is concerned with conditions or relationships that exists, opinion that are held,
processes that are going on effects that are evident or trends that are developing. Thus in surveys
variables that exist or have already occurred are selected and observed. It is the example of field
research.

Data Collection:

Data collection means to a purposive gathering of information relevant to the subject matter of
the study from the units under research.
Primary data are empirical observations gathered by the researcher or his associates for the first
time for any research and used by them in statistical analysis. There are several methods of
collecting primary data particularly in descriptive researches.

 Telephone enquiries

 Postal/mail questionnaire

 Personal interviewing

 Panel research

 Special survey techniques.

Telephonic inquiries and mailing questionnaires are the best’s method for gathering quickly
needed information at the cheapest way.
Questionnaire:

The questionnaire has a list of questions to be asked and spaces in which the respondents record
the answer. It is either printed or typed in definite order on a form or set of forms. Each question
is worded exactly as it is to be asked; also the questions are listed in an established sequence.

Generally it is mailed to respondents who are expected to reply in the space provided in itself or
may be approached personally to explain the purpose and meaning of questions in the
questionnaire, they are conducted by enumerators. Often questionnaire is considered as heart of a
survey operation hence should be drafted carefully. Hence structured questionnaire ensures easy
quantifications.

In present study, the required data was collected through Sample survey using structured
questionnaire. Since ‘Customer`s inclination towards Online marketing’ is the core focus of
the study, a structured & closed ended questionnaire was prepared for customers only.
(covering various demographic parameters).

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. Though questionnaire is an economic tool for data collection,
non-response or incomplete response is high in this case. However, proper follow up was
taken to overcome this barrier by making sure that each questionnaire is completely filled.

Secondary data is the data collected by others in the past and used by others. It may be either
being published or unpublished data. It includes the following:

1. Various publications of central, state and local governments.

2. Various publications of foreign governments or international bodies.

3. Technical and trade journals

4. Books, magazines, and new paper.

5. Reports prepared by research scholars, university economists etc.

6. Reports publications of various associations connected with business and industry, bank,
university, economists etc.

Sources of unpublished data are mainly diaries, letters, unpublished biographies; autobiographies
etc. before using secondary sources the researcher must ensure reliability sustainability and
adequacy of data.

In present study, researcher has used published and unpublished sources of secondary
data.
Secondary data was collected to provide the dissertation with necessary theoretical back
up. Information related to IMC, online marketing & its implication etc. was collected
through various secondary sources such as research journals, reference books, business
magazines and content sharing websites.

Sampling methods:

Sample selection is undertaken for practical impossibility to survey entire population by applying
rationality in selection of samples we generalize the findings of our research. A complete
enumeration of all items of the population is known as census enquiry. But practically
considerations of time and cost almost invariably lead to a selection of respondents called
sampling techniques.

A sample design is a definite plan for obtaining a sample from a given population.
Sampling process:

Define the population: the population is said to be completely defined if atleast the following
terms are specified i.e. elements, sampling units, extent, and time. In this research such terms
may be defined as follows:

 Elements

 Sampling units

 Extent

 Time

Identifying the sampling frame: a complete list of population units is the sampling frame it
should be so selected which consist of almost all the sampling units. Popularly known sampling
frames are census reports, electoral register, list of account holders, etc.

Specifying sampling unit: it is the basis unit containing the elements of target population.

Specify the sample method: it indicates how the sample units are selected, whether probability
or non-probability samples are to be taken.

Determine the sample size: the decisions about the number of elements to be chosen i.e.
number of observations in each sample of the target.

Parameters of interest: one must consider the questions of specific population parameter
which are of the interest.

Select the sample: final step in the selection of sample process where a good deal of field
work and office work is introduced in the actual selection of sample elements:
Descriptive type of study generally used probability sampling design (random
sampling) and requires structured or well, thought out instruments for collection of
data like questionnaire.
In present study researcher has used stratified probability sampling with -

 Sample size: 100 (Sample size is selected on the basis of discussion with
the research expert)
 Area covered – Delhi / NCR suburbs
 Sample frame – Educational institutions & corporate offices.

Validity of the data:

The approach of content validity was used in order to verify whether the context of
measure covers the full domain of the content. It helped to assess how items used in
the survey represent their context domain and how clear they are. Verification made
to assess whether questions asked to the respondents covers all the necessary details
related to dissertation topic.

Thus, the present study adopts descriptive research design and undertakes the survey
method with questionnaire as a research instrument in order to collect primary data
required in the research. Stratified probability sampling is the sampling technique
used to select the appropriate sample. And content validity is used for the
verification of data.
RESEARCH QUESTIONNAIRE

Respondent’s details

Name :

Gender : Male Female

Occupation : Student Service

Self employed

Age : Between 18 to 25

Between 25 to 35

Between 35 to 45

Contact details : (optional)

(Please tick √ in the box besides option/s matching your response)

1. I rely on just one medium to get knowledge about any brand.

 Yes

 No

2. Which source do you refer the most to get awareness of

various brands?

 Print ads

 Television commercials

 In-store promotion
 Outdoor media

 Online media

3.I do not require much information to take purchase decision.

 Strongly agree
 Agree
 No opinion
 Disagree
 Strongly disagree

3. I do not prefer to spend much of my time in purchase of any

commodity.
 Strongly agree
 Agree
 No opinion
 Disagree
 Strongly disagree

4. Are you knowledgeable about the use

of Internet?
 Not knowledgeable
about
 Somewhat
knowledgeable about
 Knowledgeable about
 Very well
knowledgeable about

5. What is your frequency of being online?

 Very Low
 Low
 Moderate
 High
 Very high

6. Please indicate your purpose for using internet by ranking each purpose
between the scale of 1 to 5 (where, 1 is the most important and 5 is least
important)
a. Social networks
b. Media sharing sites
(Video, photo, music sharing & Gaming)
c. Blogs
d. Podcasts & RSS
e. Collaborative websites
f. Other content sharing websites
g. Online shopping

7. Companies should use online activities in their

marketing efforts.
 Strongly agree
 Agree
 No opinion
 Disagree
 Strongly disagree

8. How important following factors are to motivate you to like the brand on
internet?
Most Important Least Not
important important important
 To receive discount

 To stay
informed
about
activities of
company
 To get updates on
brands and its future extensions
 For fun, entertainments

 To get
excess to
the
exclusive
content
 To interact
(share ideas,
provide
feedback)

9. I don’t prefer the print ads or Television commercials much to get the brand
awareness.
 Strongly agree
 Agree
 No opinion
 Disagree
 Strongly Disagree

10. What benefits does online marketing offer over the

traditional marketing? (Tick only one, which is more
prominent according to you)
 Low cost Ease of shopping
 Interactive medium Time saving
 Wide range of information

11. I prefer Online advertising as it is SAFEST to use.

 Strongly agree
 Agree
 No opinion
 Disagree
 Strongly disagree

12. What loopholes does online marketing carry over

traditional marketing tools? (Tick only one, which
is more prominent according to you)
 More Susceptible
 Privacy Issue
 More scope for fraudulent activities
 Often interrupting Lack demonstration