STUDY ON ADVERTISEMENT, PROMOTION AND SUPPLEMENTAL ASPECTS OF INTEGRATED MARKETING COMMUNICATION

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1 INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN MANAGEMENT (IJARM) International Journal of Advanced Research in Management (IJARM), ISSN (Print), ISSN (Print) ISSN (Online) Volume 6, Issue 1, January-April (2015), pp IAEME: Journal Impact Factor (2015): (Calculated by GISI) IJARM I A E M E STUDY ON ADVERTISEMENT, PROMOTION AND SUPPLEMENTAL ASPECTS OF INTEGRATED MARKETING COMMUNICATION KIRTI GHALE Research Scholar Shri Venkateshwara University, Gajraula, India Dr. D.B. SINGH Group Director, IEC Group of Instuitions Greater Noida Supervisor, Shri Venkateshwara University, Gajraula ABSTRACT Integrated marketing communication (IMC) is one of the most controversial areas of research, the concept marking a constant progress from the simple coordinating of promotional tools to a complex strategic process. Further to the evolution of modern marketing, where IMC has become a major way of achievement the objectives of a company, there is a need to identify opportunities to increase its impact. This research investigates the relationship between cause-related marketing, attitude to the strategy, brand attitude and purchase intention. It also explores consumer response to cause-related marketing as compared to sponsorship and sales promotion. The findings build on existing research and provide knowledge that will assist marketing managers in the development of more effective cause- related marketing strategies. INTRODUCTION Marketing practice has been developing towards its object. The marketing methods aren t reserved anymore just for commercial companies. They can be practiced with success by cultural and religious institutions, political parties and people. Nowadays, there aren t anymore reserved domains where marketing principles can t be applied. It s impossible to 50

2 consider political marketing a simple sectoral branch, not even an application domain for traditional basic techniques. (Revue français de marketing, 2006). According to the most well known worldwide marketing manual (Marketing Management) between the ten types of entities where marketing can be applied we can identify six of them which are in contract with political field: events, people, places, organizations, information and ideas. (Kotler, 2006). MARKETING INTEGRATED COMMUNICATION Integration is a marketing catch phrase of the moment. Its value propositions seem unquestionable strong the whole of a marketing initiative can be greater the sun of its multidisciplinary parts if those parts tightly together to assist one another. (Sasu, 2005) During the 80 s many companies recognised the necessity of a strategic integration of promotional instruments. They were interested in principles of integrated marketing communication. In commercial marketing there has been a lot of talking, especially in the last decade, about integrated marketing communication conception. Integrated marketing communication consists in the elaboration of one global communication strategy which aims to create solid relations with the clients, showing to costumers that the company and its products help them to satisfy their needs. Marketing communication has its roots based on advertising, promoting the sales, public relations and direct marketing. Each of these fields had evolved in distinct ways and industries and the only chance to communicate is the integration of each part of this amalgam. SALE PROMOTIONS Sale promotion consists of a set of various and different and often short period motive tools which is used for consumer s or buyer s provocation to buy more and faster (Gupta, 1988; Boddewyn, 1989; Neslin, 2002). Promotion tools consist of coupon, rewards, free samples, discounts, advertising goods and etc. ADVERTISING Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services and it is required price (Kotler, 2003). Among components of marketing integrated communication model, advertising has more identified position than the other marketing components, because costumers informed new products through advertising (Ryans and Ratz, 1987). In addition, advertising is minimized barriers between costumers and organization (Blech, 2001; Lopez et al, 2002). FACTORS INFLUENCING THE MARKETING INTEGRATED COMMUNICATION (IMC) Every strategy is influenced by different factors which influence in different ways depends upon the nature of the goal behind strategy. There are different factors that influence the IMC. According to Schultz (1996) IMC just not relyonlyon integration of promotional mix, it also heavily depends on infrastructure, staffing, marketing budget and skills. It is assuring that only combination of promotional mix is not the IMC but infrastructure of business should support. Despite of good staff and skills, marketing budget is most important, 51

3 due to lack of budget whole effort become useless.similar factors described by Kitchen et al. (2004) that nature of business, marketing development and required investment by business have great influence on IMC. According to Vargas (2005) nature of the product, nature of the market, stage in product-lifecycle, price and funds available for the promotion have major influence. It is also important to notice that product is suffering which stage in product-lifecycle, at each stage strategy differs. If stage is perceived wrongly then strategy becomes useless and result may differ from the required result. Reid (2005) considered attributes of the organization including type and size, as well as position in the market as influencing factors. TABLE 1 - Corporate Cause-Related Marketing Objectives REVIEW LITERATURE Since communication requires converting the original concepts into symbols that can transmit the desired message (Blythe, 2006) the individual or organization who communicates has to transform first the concepts in a set of symbols that can be transferred to the receiver, who need to decode the symbols, in order to understand the original message. A correct decoding can take place only if the participants in the communication share a common experience, with at least one common language. Communication effectiveness is determined both by understanding the message and getting the desired reaction from the part of the receiver, in response to the message (Popescu, 2002). In a global market characterized by high dynamism and fierce competition, organizations try to find the most efficient way to get their word out so that customers understand the benefits that can be obtained by consumption or use products or services (Clow, 2010). Consequently, marketing communications have become a fundamental aspect of marketing, a business vision and an essential factor in successful marketing communication. Its importance have increased dramatically in recent decades, considering that the marketing and communication are inseparable, all organizations business areas using various forms of marketing communication to make their offer and to meet financial or non-profit targets (Shimp,2003). Conceptual aspect of IMC, as theoretical foundation, status and goals (Cornelissen and Lock, 2000; Cornelissen, 2001; Duncan and Mulhern, 2004; Gould, 2004; Madhavaram, 2005; Reid et al 2005; Kitchen and Schultz, 2009), including opposite views or barriers for its implementation (Cornelissen & Lock, 2000; Ewing et al, 2000; Gould, 2004, Fitzpatrick, 2005); Measurement and effectiveness of IMC programmes (Low, 2000; Reid, 2003; Schultz, Cole and Bailey, 2004; Belch and Belch, 2008, Ewing, 2009). Managerial and organisational 52

4 issues (Cornelissen, Lock and Gardner, 2001; Beverland and Luxton, 2005); Relationship of IMC to internal marketing issues, relationship marketing, corporate communication, brand equity and brand identity (Barnes, 2001; Naik and Raman, 2003; Schultz 2004; Dewhirst and Davis, 2005; Ratnatunga and Ewing, 2005, Finne and Gronroos, 2009) PROBLEM STATEMENT The purpose of this study was to examine consumer attitudes to cause-related marketing and the potential for cause-related marketing to improve attitude to the brand and to influence purchase intention. Most importantly, the current research also compared this strategy with two other forms of marketing communications: sponsorship and sales promotion. RESEARCH METHODOLOGY & SAMPLING DESIGN The research questions presented in this thesis have been investigated using a quantitative methodology. The research study used an experimental design as this design lends itself to establishing causal relationships. The convenience sample was drawn from undergraduate and postgraduate students at an Amity University, Noida. It was believed that this sample would provide a gender balance as well as a range in age reflecting a mix of both school-leavers and mature age part-time students. Data were collected from the control and treatment groups via self-administered survey as previously discussed. The total sample size for this research was 200, with 50 students randomly allocated to each of the four groups. The total number of usable questionnaires was 170. Three of the groups were approximately equal in size, with a smaller group of 28 participants for the sales promotion treatment group. The primary analysis method chosen, that is multivariate analysis of covariance, allows for differences in group size. The surveys were distributed in four classes, to 126 undergraduate and 74 postgraduate students, for a total of 200 students. The first survey, or pre- treatment survey, was identical for all groups and distributed at the beginning of class. Once the survey was completed students were asked to place it in an envelope and retain. OBJECTIVES OF THE STUDY To know the impact of cause-related marketing on the consumer s response in terms of attitude to the strategy, attitude toward the brand and purchase intention? To find that consumers respond more positively toward cause-related marketing than toward sponsorship or sales promotion? STATISTICAL TOOLS The covariates of consumer values, brand loyalty and perceived fit, between brand and cause, sport or promotion, were identified as potential confounds to the relationship between the independent and dependent variables. 53

5 FIGURE 1:- Conceptual Model For The Impact Of Cause-Related Marketing DATA ANALYSIS & INTERPRETATION TABLE 2: Sample Size H1:- Consumers will have a more positive attitude to a cause- related marketing strategy than they will to sponsorship or sales promotion. TABLE 3: -Results Of One-Way Analysis Of Variance Attitude To The Strategy By Treatment Group 54

6 The results of this analysis indicate that there is not a significant difference between consumers' attitude to a cause-related marketing strategy and a sponsorship or sales promotion at a 95% confidence level (F=2.93, df=2, p>.05). As such, hypothesis one is not supported. H2:- Consumers personal values will significantly covary with any main effect between type of strategy (cause-related marketing, sponsorship or sales promotion) and change in brand attitude or purchase intention. TABLE 4:- Results Of Multivariate Analysis Of Covariance - Impact Of Consumer s Values On The Relationship Between Treatment Group And Attitude Change And Purchase Intention The results show that the change in attitude toward the brand is not affected by aconsumer s values for any of the three categories: Social (F=2.26, df=1, p>.05), Self- Orientation (F=2.87, df=1, p>.05) or Emotional (F=.85, df=1, p>.05). In addition, the results also show that a consumer s values do not impact on purchase intention for any of the three value categories: Social (F=.93, df=1, p>.05), Self- Orientation (F=.78,df=1, p>.05) or Emotional (F=1.13, df=1, p>.05).as such, hypothesis two is not supported. H3:- Women will have a more positive response to a cause- related marketing strategy than will men. 55

7 TABLE 5:- Means For Attitude To The Strategy By Gender For The Three Treatment Groups Hypothesis three stated that women would have a more positive attitude to a causerelated marketing strategy than would men. Table shows the mean scores for attitude to the strategy according to gender for cause-related marketing, as well as sponsorship and sales promotion. Again, the control group was not included as they were not subjected to the treatment. Table shows that females have a slightly more positive attitude to both sponsorship and sales promotion, but a less positive attitude to cause-related marketing. A two-way analysis of variance was conducted to determine whether this difference was significant. Levene s test again revealed that assumptions of variance were not violated (F=.27, df=5,90, p>.05). The results of the analysis of variance are shown in Table. H4 :- Consumers perceived fit between the brand and the cause, the brand and the sponsored organisation or the brand and the promotion will significantly covary with their attitude toward the cause-related marketing, sponsorship or sales promotion strategy 56

8 TABLE 6:- Results Of Analysis Of Covariance: Independent Variables Of Gender And Treatment Group And The Covariate Of Perceived Fit Between The Brand And The Cause, Sport Or Promotion, On The Dependent Variable Of Attitude To The Strategy Hypothesis proposed that the fit perceived by a consumer between the brand and the marketing strategy, whether cause-related marketing, sponsorship or sales promotion, will covary with that consumer s attitude toward the strategy itself. There was no significant difference between sponsorship and sales promotion. In addition, the covariate of perceived overall fit, between the brand and cause, sport or promotion, also had a significant effect on attitude to the strategy (F=39.85, df=1, p<.05).to determine the strength of association between the two variables, group and attitude to the strategy when perceived fit is taken into consideration, r 2 was examined. As such, it was shown that group, when taking perceived fit into account, is responsible for approximately 41 percent of the difference in attitude to the strategy between groups (r 2 =.414). Again, gender did not show a significant effect on attitude to the strategy (F=2.02, df=1, p>.05), nor was there a significant interaction effect between group and gender (F=1.43, df=2, p>.05). As such, hypothesis five is supported. H5 :- Consumers loyalty to a brand will significantly covary with any main effect between type of strategy and change in brand attitude or purchase intention. TABLE 7:- Results Of Analysis Of Covariance: Group As An Independent Variable, Brand Attitude Change As Dependent Variable And Attitude To The Strategy As A Covariate Hypothesis five stated that a consumer s loyalty to a brand will significantly covary with any main effect between type of strategy and change in brand attitude or purchase intention. As Table shows, a consumer s attitude to the marketing strategy significantly affects the change in brand attitude (F=5.53,df=1, p<.05). However, r2was examined and it 57

9 was shown that attitude to the strategy only accounts for approximately 11% of the difference in attitude change (r2=.112). Further examination using pairwise comparisons indicated that the change in brand attitude, as affected by attitude to the strategy, differed significantly between the treatment group exposed to cause-related marketing and the group exposed to sales promotion. However, no difference was shown between those exposed to sponsorship and the other two stimuli. CONCLUSION In conclusion, the findings suggest that consumers have a more positive attitude to a cause-related marketing strategy than a sponsorship or sales promotion, when allowing for the consumers perception of fit between the brand and cause, brand and sporting organisation or brand and promotion. Further, cause-related marketing was able to engender a more favourable change in attitude to the brand compared to sales promotion. Despite the above findings, cause-related marketing did not have a more favourable impact on purchase intention compared to sponsorship and sales promotion. Finally, neither gender nor personal values appeared to affect attitude to the strategy, attitude to the brand or purchase intention. In general, the results of this research indicate that consumer attitudes to a cause- related marketing campaign are more favourable than consumer attitudes toward sponsorship or sales promotion when controlling for the consumer s perception of fit between the brand and cause, sport or promotion. There was some support for the premise that cause-related marketing is more effective at generating a positive change in brand attitude, when controlling for attitude to the marketing strategy. REFERENCES 1. M. Hosseini, A. Abolfazli, M. Rahimi (2007). Review the effect of brand equity on consumer respond (Case study: IRANOL brand)-management perspective R. Shams (2005). Review the relationship among selected marketing mix components and brand equity of mobiles in young age group of Tehran city. Thesis system of Tehran University. 3. S. Zarbi (2006). Evaluation of selected marketing mix component on brand equity. Marketing management magazine of the Islamic Azad University, science and research branch, third quarterly periodical S. Lagazian (2007). Consumer and the state of evaluating the brand value (A study in Hotel management industry). 5. Belch, G., & Belch, M. (2008). Advertising and Promotion: An IMC Perspective (8th ed). McGraw-Hill. 6. Beverland, M., & Luxton, S. (2005). Managing integrated marketing communication (IMC) through strategic decoupling. Journal of Advertising, 34(4) Blythe, J. (2006). Essentials of Marketing Communications (3rd ed). Prentice Hall, Harlow, (Chapter1, 2). 8. Catoiu, I., &Teodorescu, N. (2004). Comportamentul consumatorului (2nd ed.). Bucuresti, Uranus, (Chapter 1,2). 9. Clow, K. (2010). Integrated Advertising, Promotion and Marketing Communications (4th ed.), Pearson Education, Upper Saddle River, (Chapter 1, 3). 10. Alba, J.W., & Hutchinson, J.W. (1987). Dimensions of Consumer Expertise. Journal of Consumer Research, Vol.13, Issue

10 11. Allison, R., & Uhl, K. (1964). Influence of Beer Brand identification on Taste Perception. Journal of Marketing Research, 1 (Aug) Arens, W., & Schaefer, D. (2007). Essentials of Contemporary Advertising. Boston, McGraw-Hill/Irwin. 13. Arnould, E., Price, L., & Zinkhan, G. (2004). Consumers (2nd ed). Boston, Mc-Graw Hill. 14. Barnes, B.E. (2001). Integrated brand communication planning: retail applications. Journal of Marketing Communication, 7(1) Berry, L. (1969). The components of department store image. A theoretical and empirical analysis. Journal of Retailing, 45, Bettman, J., & Park, W. (1980). Effects of Prior Knowledge and Experience and Phase of the Choice Process on Consumer Decision Process: A Protocol Analysis. Journal of Consumer Research, 7 (Dec) Bettman, J.R., Luce M.F., & Payne, J.W. (1998). Constructive Consumer Choice Processes. Journal of Consumer Research, vol. 25, Issue Dr.Gagandeep K Nagra and Dr.R.Gopal, The Effect Of Digital Marketing Communication On Consumer Buying International Journal of Management (IJM), Volume 5, Issue 3, 2014, pp , ISSN Print: , ISSN Online: Dr. R. Khader Mohideen and P. Saravanan, A Study On Factors Determining Buying Decisions Through Television Advertisements For Consumer Durables Goods International Journal of Management (IJM), Volume 6, Issue 1, 2015, pp , ISSN Print: , ISSN Online: TR.Kalai Lakshmi, Creation of Loyal Customers with Relationship Marketing International Journal of Management (IJM), Volume 2, Issue 2, 2011, pp , ISSN Print: , ISSN Online:

IMC and Internal Marketing 1

IMC and Internal Marketing 1 Running head: IMC and Internal Marketing IMC and Internal Marketing Jeananne Nicholls is a Doctoral Student at the Coles School of Business at Kennesaw State University Kurt