COMPLETE SCHOOL PROJECT TOPICS & MATERIALS :
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Integrated Marketing Communications (IMC) concept has been largely regarded as an important marketing management issue since the beginning of the last decade because of the effectiveness of the integration of marketing communication tools for example, advertising, public relations, direct marketing, sales promotion, and personal selling to optimize the communications impact on target consumers, (Kotler, 2002:583; Schultz and Kitchen, 1997:469).
Additionally, there are several reasons for the growing importance of IMC. These include; a change of marketing expenditures from media advertising to other forms of promotions, particularly consumers and trade-oriented sales promotions, a movement way from relying on advertising focused approaches which emphasize mass media to lower-cost, more targeted communication tools such as event marketing, sponsorship, direct mail, sales promotion and the internet. There are also shift in marketplace power from manufacturers to retailers, and the rapid growth and development of data base marketing; demands for greater accountability from advertising agencies and changes in the way agencies are compensated; the rapid growth of the internet, which is changing the nature of how companies do business and the ways they communicate and interact with consumers. There have been increased efforts to measure and improve marketing communications return on investment (ROI) by both clients and agencies (Belch and Belch, 2004:12; Cornelissen, 2001:7-15; Shimp, 2000:15). These factors have given rise to investigations into new ways of managing marketing communications.
Practitioners and academics have the notion that, improvements in the coordination and integration of marketing communications could lead to superior business performance (Kitchen and Schultz, 1999:1-17; McArthur and Griffin, 1997:19-27; McGoon, 1998:15-20). The common explanation is that through IMC, a company can attain “synergy” between all of its marketing communication activities and decisions. Defined in terms of three constructs: “consistency”, “interactivity” and “mission” synergy ensures that the use of alternative communication tools are mutually reinforcing, leading to enhanced productivity and performance (Duncan, 1993:216; Duncan and Moriarty, 1997:311; Eagle and Kitchen, 2000:667-686, Hines 1999:25).
The implicit assumption of IMC is that, through synergy, IMC provides a costeffective way to maximize the impact of communication by improving marketing decisions, (Duncan and Moriarty, 1997:313; Kitchen and Schultz, 1999:1-17; Hartley and Pickton, 1999:97-106; Stewart, 1996:147-153). Additional efficiencies are derived through improved cooperation between departments and service providers avoiding the duplication of information gathering, or “reinventing the wheel” in developing communication strategies (Hartley and Pickton, 1999:97106). Other than efficiencies, benefits should also accrue through improved brand communications and positioning, bringing about opportunities for more profitable longer-term customer relationships (Keller, 2001:530).
1.2 Statement of the Problem
To survive in the competitive marketing environment of today and increased managerial expectations related to marketing, many companies try to adopt IMC to improve the management and integration of their marketing communication programes (Reid et al 2002:22). But the term and concept of IMC is so recent and “modern” that it is not known and accepted by all which can explain the lack of a general accepted definition and common understanding of the whole concept. The main objective of IMC is to affect the perceptions of value and behaviour through directed communication. But the communication has to move from a tactic to a strategy, only strategically oriented IMC can help companies succeed in the highly competitive and rapidly changing world of today. To be successful it also has to involve every one in the organization, from the top management down to all employees. The highest corporate strategy needs to be consistent with the everyday implementation of individual tactical activity (Reid, 2002:22).
As a consequence of today’s competitive environment, low level of product differentiation, consumer perception of product quality performing at a similar standard, increased number of superior brands and alternative, more acceptance of generic and private label brand, low risk in brands switching and high customer expectation put companies in a challenging position where there is decline of loyal customer.
However, it have always been difficult to pinpoint exactly what factors that have motivated consumers to prefer a particular brand of product to another over the years. Marketers have on several occasions paid attention to only those factors which are salient as the determinant of consumers preference for their brand, while many other factors which play significant role are completely ignored in the execution of marketing programmes. But there are also barriers to overcome, as one problem that delayed the implementation of IMC in companies was the difficulty of measuring the effects or exactly what benefits the companies gained from the implementation.
Another disturbing aspect of the application of Integrated Marketing Communications is that most marketing managers fail to appreciate the importance of monitoring and evaluating its impact in the discharge of their marketing activities. This neglect has made it impossible for the marketing managers to measure effectively the impact (positive or negative) Integrated Marketing Communications (IMC), can make on their business performance.
Even when some companies are fully aware of the efficacy and prospects inherent in the application of Integrated Marketing Communications (IMC), they are not committed to its application. Other companies are equally knowledgeable, but lack the financial wherewithal to apply the IMC in their business operations. Equally the wrong choice and usage of non-professionals in the planning, organizing, execution, control and evaluation of the Integrated Marketing Communications (IMC) in marketing activities of most firms is another aspect the marketing managers may have neglected in the promotion of products, as this may lead to waste of resources. Sequel to the above, it has become pertinent to evaluate the impact of integrated Marketing Communications on companies’ sales performance.
1.3 Objectives of the Study
The broad objective of the study is to examine the impact of Integrated Marketing Communications on companies’ sales performance. The specific objectives are:
(1) To determine the relationship between Integrated Marketing Communications and companies’ sales and profits.
(2) To examine the IMC tools commonly used by the selected companies under study in boosting their sales performance.
(3) To establish how Integrated Marketing Communications save time, money and stress for organizations.
(4) To find out the indicators the marketing executives and managers use in measuring the effectiveness of overall IMC programmes.
1.4 Research Questions
Consequent upon the above objectives, the following research questions were developed.
(1) What is the relationship between Integrated Marketing Communication programs and companies’ sales and profits?
(2) What are the IMC tools commonly used by the selected firms in boosting sales performance?
(3) To what extent does Integrated Marketing Communications save time, money and stress for organizations?
(4) What indicators are used by marketing executives and managers in measuring the effectiveness of the overall IMC programmes?
1.5 Research Hypotheses
The under listed hypotheses stated in the null form were designed to further guide the study:
- There is no significant relationship between Integrated Marketing Communication activities the companies use and their sales and profits.
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Integrated Marketing Communication tools commonly used by firms are not effective in boosting their sales performance.
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Integrated Marketing Communications does not save time, money and stress for organisations.
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There are no indicators used by marketing executives and managers in measuring the effectiveness of overall IMC programmes.
1.6 Significance of the Study
The significance of this study can be viewed from academic and practical stand points. Practically, this study will assist in broadening the knowledge of the market players on the essence, importance of IMC and new media and channels available in disseminating marketing information. The marketing of goods and services is not done by guess work especially at this age of fierce competition among brand names of products. Rather, all serious minded companies and businessmen who are desirous of remaining in business and cutting a niche for themselves and who plan all their marketing activities ahead of time will adopt Integrated Marketing Communications as a tool. The study hopes to furnish additional information to help manufacturers in achieving high sales volume, saves time, money and adjusts production properly to sales within the context of the marketing concept. The core issue of modern marketing concept lies centrally on the understanding of the customer and making every effort to satisfy him. This study will also be of benefit to students and researchers in the field of marketing communications.
1.7 Scope of the Study
The research covered five selected companies in the Nigeria consumer good and service industries in Nigeria. The companies are: Dangote Flour Mills Plc. Lagos, Nigerian Breweries Plc. Lagos, Nestle Nigeria Plc. Lagos, Zenith Bank Plc. Lagos and P Z Cussons Nigeria Plc. Lagos. And also the study confirmed on concept of IMC, benefits of IMC, tools of IMC, message of IMC, reasons for growing importance of IMC, evaluation of IMC, sales effect of Integrated Marketing Communications, components of Integrated Marketing Communications and effect of Integrated Marketing Communications on organizational performance.
1.8 Limitations of the Study
In carrying out a research of this nature, it is not uncommon to encounter a number of constraints. Some of the limitations of the study included:
(1) Strike actions: In the course of this study so many strike actions were embarked upon by ASUU (Academic Staff Union of Universities). This prolong the period of the programe.
(2) Scanty related literatures: There were no much relevant literatures found on the topic. The researcher therefore limited herself to the few ones available.
(3) Financial constraints: The huge cost involved in carrying out a complete study of a whole organization, is not easily afforded by a student. The researcher therefore limited her study to only five firms in the country.
(4) Time constraints: The time required for this dissertation was not enough. This is because the research was done at the same time a serious course work was going on in school.
(5) Attitudes of respondents: Appointments with some of the top officers of the companies were difficult to achieve. Some of the respondents refused to answer the questions asked to them, while some refused out rightly to grant interviews, this posed limitations to the completion of the work.
(6) Power supply: The researcher also had problem with the epileptic power supply in the country. It was difficult to access the internet without steady light. What the researcher had wanted to download was not all possible. And some materials relevant to the work could not be accessed because of the international mode of required payment. Again, the typing of the work was unnecessarily delayed because of the same power supply problem. The use of the generating machine for alternative power supply hiked the budget cost of the work. This was not anticipated in the planning stage of this work.
1.9 Profiles of the Selected Companies
1.9.1 ZENITH BANK PLC
Zenith Bank Plc., over the years, has through strategic deployment of its people, information and communication technology (lCT) redefined customer service standards and created diverse service delivery channels. The bank was incorporated as Zenith International Bank Limited on 30 May 1990, a private limited liability company and was licensed to carry on the business of banking in June 1990. The name of the bank was changed to Zenith Bank Plc on 20 May 2004, to reflect its status as a public limited liability company. The bank’s shares were listed on the Nigerian Stock Exchange on 21 October 2004 following a highly successful Initial Public Offering (IPO). Nigerian individuals and institutions numbering over 700,000 shareholders currently own the bank.
Over the years the Zenith brand has become synonymous with the use of Information and Communication Technology (lCT) in banking and general innovation in the Nigerian banking industry. The group’s main service delivery channels remain its local and foreign subsidiaries and its business offices (branches and cash offices), which currently stand at over 315 while offering electronic banking services, such as Internet banking, bills payment, and telephone banking services amongst others. These business offices are located in prime business and commercial cities in each state of the federation and they are easily accessible to all the Central Bank of Nigeria’s clearing zones all over Nigeria. Within the first decade of commencing operations, the bank made its mark in profitability and all other performance indices in Nigeria and has maintained this prime position to date.