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EXPLORING THE ANTECEDENT FACTORS THAT IMPACT IMC AND DETERMINING

THE RELATIONSHIP WITH THE CONSEQUENCES OF IMC


By
Abrar Salim Chohan
For
Award of Bachelors of Business Administration (Honors) in Marketing

Session: 2011 - 2015

THE ANTECEDENTS AND CONSEQUENCES OF IMC

RESEARCH COMPLETION CERTIFICATE


Certified that Abrar Salim, ID: 11U0408 [Session 2011 to 2015] has carried out and completed
the research project entitled Exploring the antecedent factors that impact IMC and determining
the relationship with the consequences of IMC] under my supervision for requirement for the
award of Degree of Bachelor of Business Administration Honors (Majors: Marketing) by Lahore
School of Economics.
Research supervisor,

(Mehrukh Salman)
Lahore School of Economics

THE ANTECEDENTS AND CONSEQUENCES OF IMC

Table of Contents
Session: 2011 - 2015 ...................................................................................................................... 1
ACKNOWLEDGEMENTS ......................................................................................................... 5
ABSTRACT ................................................................................................................................... 6
CHAPTER 1: INTRODUCTION................................................................................................ 7
Statement of Problem ................................................................................................................... 7
Research Questions ....................................................................................................................... 7
Research Significance & Research Gap...................................................................................... 7
Research Objectives ...................................................................................................................... 8
Research Scope .............................................................................................................................. 9
CHAPTER 2: LITERATURE REVIEW ................................................................................. 10
BACKGROUND AND CONCEPTUALIZATION ................................................................. 10
CHAPTER3: METHODOLOGY ............................................................................................. 22
METHOD .................................................................................................................................... 22
Instrument Design....................................................................................................................... 22
Measures ...................................................................................................................................... 22
Sample .......................................................................................................................................... 31
Analysis Procedures .................................................................................................................... 31
Table1A: Expected Signs............................................................................................................ 32
CHAPTER 4: RESULTS AND ANALYSIS ............................................................................ 33
CFA Measurements .................................................................................................................... 33
Path Analysis ............................................................................................................................... 42
Path Model: ................................................................................................................................. 43
Model Fit ...................................................................................................................................... 44
CMIN ........................................................................................................................................... 44
Baseline Comparisons................................................................................................................. 44
RMSEA ........................................................................................................................................ 44
Hypothesis Testing ...................................................................................................................... 46
Discussion .................................................................................................................................... 51
Suggestions for Future Research ............................................................................................... 53
Conclusion ................................................................................................................................... 53

THE ANTECEDENTS AND CONSEQUENCES OF IMC

References .................................................................................................................................... 55
Appendix: .................................................................................................................................... 59
Questionnaire .............................................................................................................................. 59

THE ANTECEDENTS AND CONSEQUENCES OF IMC

ACKNOWLEDGEMENTS
I would like to take this opportunity to appreciate the continuous efforts of my instructor Ms.
Mehrukh Salman. Her guidance and support made this research paper possible. Her immense
support and valuable suggestions regarding the thesis were very useful during the whole process.
Also, I would like to thank Ms. Samra Chaudry for her evaluation regarding the thesis.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

ABSTRACT
This research will seek to explore the multiple marketing tools that impact Integrated Marketing
Communication (IMC). The significance of each variable will be emphasized and the
implementation of the variables will be evaluated. This research will also explain how Integrated
Marketing Communication (IMC) has a relationship with the organization performance. Thus,
both the antecedent factors and consequences of Integrated Marketing Communication (IMC)
will be studied to determine the importance of using Integrated Marketing Communication.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

CHAPTER 1: INTRODUCTION
Integrated Marketing Communication (IMC) is a method of applying an integrated
approach of marketing by achieving efficiency through synergy(Rehman & Ibrahim, 2011). It
involves merging the variant marketing tools in a manner that enables an organization to have
one voice, one look (Fitzpatric, 2005). The marketing of products & services has changed
drastically in the recent years. Technological developments and innovations have influenced the
perception of millions of consumers. Therefore, marketers have to adapt to these advances by
conducting their marketing activities and campaigns in a holistic consumer-oriented manner. The
marketing environment has changed immensely and there is a need to keep up with the pace to
be more efficient and effective. Implementing Integrated Marketing Communication is a more
cost-efficient and effective method of marketing.

Statement of Problem
This research will seek to explore the multiple marketing tools that impact Integrated
Marketing Communication (IMC). The significance of each variable will be emphasized and the
implementation of the variables will be evaluated. This research will also explain how Integrated
Marketing Communication (IMC) has a relationship with the organization performance. Thus,
both the antecedent factors and consequences of Integrated Marketing Communication (IMC)
will be studied to determine the importance of using Integrated Marketing Communication.

Research Questions
What are the various factors that impact Integrated Marketing Communication and what
degree of impact each factor has on Integrated Marketing Communication?
What is the relationship between Integrated Marketing Communication (IMC) and the
performance of an organization? Does Integrated Marketing Communication (IMC) have an
impact on quantitative and quantitative measures of Organization Performance?

Research Significance & Research Gap


The research topic was selected as there was a research gap that needed to be addressed.
In the 14th International Conference in Research in Advertising 2015, there is a Call for Papersby
the American Academy of Advertising on various subjects such as Advertising, Consumer

THE ANTECEDENTS AND CONSEQUENCES OF IMC

Behaviour, Management, etc. The theme of the conference was bridging the gap which
literally means to ensure that the academic theories are being implemented as well. Thus, this
research is useful for managers as it provides them with an insight on which kind of marketing
tools they can incorporate in their marketing campaigns. An important decision that marketing
managers have to make is the budget decision and allocation of resources. Therefore, this
research would provide information to them in regard to which effective marketing tools should
be included in the marketing campaigns. The significance of each factor will offer knowledge to
the managers as to which marketing tools should be focused upon.
The research will also provide findings that would enhance the performance of an
organization. The relationship between Integrated Marketing Communication (IMC) and
organizational performance will be specified. An organization can be quantitatively and
qualitatively improved by associating Integrated Marketing Communication (IMC) tools with the
marketing campaigns. This study will define how brand equity can be improved through
different marketing tools. Also, brand performance can be improved through extensive sales and
profits by integrating various marketing tools. The evidence of enhanced organization image is
also depicted in this research as Customer Relationship Management can be maintained.

Research Objectives
The primary purpose or aim of this study is to explore the importance of Integrated
Marketing Communication (IMC) in the dynamic marketing environment and to analyze the
implementation of Integrated Marketing Communication (IMC) within business organizations in
the province in Punjab, Pakistan. This main aim will be pursued through the following
objectives:
-

To specify how each marketing tool impacts Integrated Marketing Communication

To examine the relationship of the factors that influence Integrated Marketing


Communication (IMC)

To explore the extent to which changes in the marketing environment have caused the
marketing managers to shift to using a more integrated approach to marketing.

To determine the positive impact in organizational performance by incorporating


Integrated Marketing Communication (IMC)

THE ANTECEDENTS AND CONSEQUENCES OF IMC

To identify any potential barriers or limitations that stand in the way of implementing
Integrated Marketing Communication (IMC) by a business organization

Research Scope
It is not possible to measure the marketing activities and organizational performance of
all organizations in the world and thus the scope of the study is more narrowly focused on the
medium and large scale organizations in the province of Punjab (Pakistan). The organizations
that will be targeted should have a marketing functional department which is practicing various
marketing techniques so that the findings can be more accurate and precise.

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CHAPTER 2: LITERATURE REVIEW


BACKGROUND AND CONCEPTUALIZATION
The definitions of the variables identified by literature are following:
Direct Marketing
Direct Marketing is a business process that aims to maximize profits through marketing. This is
done by reducing costs as well. Direct marketing is one of the most effective marketing methods
with an aim to maximize the customers lifetime value (Kim, Song, & Kim, 2009).
Sales Promotion
Sales promotions can be classified into consumer sales promotions and trade sales promotions.
Other classification of sales promotion is monetary sales promotion and non- monetary sales
promotion (Chandon, Morwitz, &Reinartz, 2005).
Advertising
The selling job of advertising is to generate information to the consumer (Nelson, 1974).

Internet Marketing
Internet provides consumers and organizations with an enormous potential of information and
communication and the possibility of interaction with each other (Adelina Eugenia Ivanov,
2009).
Public Relations
Public Relations or Publicity is recognized as an efficient, credible means of communication
(Stammerjohan, Wood, Chang, & Thorson, 2005).
Integrated Marketing Communication
An approach to achieving the objectives of a marketing campaign, through a well-coordinated
use of different promotional methods that are intended to reinforce each other (Kitchen, 2000).

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Brand Equity
Brand Equity means to have strong and highly favourable brand associations of customer
(Keller, 1993).
Brand Performance
Brand Performance can be defined as the success of the brand in the market and the strategic
success of a brand(Wong, 2008).
Customer Relationship Management
Customer Relationship Management is defined as acquiring best customers, maintaining and
encouraging them to consume products and services of the company more(Ekhlassi, Maghsoodi,
& Mehrmanesh, 2012).
This study will explore the factors that impact Integrated Marketing Communication in an
organization. Direct Marketing, Sales Promotion, Advertising, Internet Marketing, Public
Relations &Personal Selling are the components in the promotional mix that influence IMC.
The relationship of the factors with IMC will be backed by literature in the following review.
Direct Marketing and IMC
Direct Marketing is a business process that aims to maximize profits through marketing.
This is done by reducing costs as well. Direct marketing is one of the most effective marketing
methods with an aim to maximize the customers lifetime value (Kim, Song, & Kim, 2009).
Customer Lifetime Value is a measure of Integrated Marketing Communication as mentioned in
the previous review. Therefore, IMC acts as an intermediary between Direct Marketing and
Customer Lifetime Value. The author states that the suggested marketing strategy, i.e. direct
marketing is an beneficial implementation for effective marketing campaigns that focus on
reducing costs and improving profits. In The Effects of Direct Marketing Techniques on
Performance: An Application to Arts Organizations, the authors Arnold &Tapp (2011) measure
the importance of direct marketing through sales performance. Sales Performance is a measure of

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IMC and therefore it is related that Direct Marketing effects IMC and in turn Sales Performance.
The research question that was constructed was Does the extent of implementation of direct
marketing affect performance? That is, is more direct marketing better? The method of data
collection used was direct marketing, majorly direct mail and telephone. A sample size of 600
was chosen and questionnaires were used as the instrument. 217 responded which is a response
rate of 37% and the results were gathered through multiple regression analysis. The results
indicate that Direct Marketing positively and significantly impacts sales performance. However,
the study emphasizes on the fact that the best medium of marketing communication varies with
the kind of product and industry. Thus, direct marketing is not always the way to go. There are
other marketing tools that should be incorporated to achieve an overall positive effect. Also, the
study highlighted some limitations that need to be addressed. Some external variables such as
educational awareness, satisfaction & loyalty my influence the results. In the article, Direct
Marketing in UK Retailing: Rhetoric and Reality, the authors, Shields & Reynolds (1996)
measure the adoption and implementation of direct marketing in retail business. The objective
of the research was to establish levels of usage of direct marketing, to identity any pattern on the
usage of direct marketing, the perceived importance of direct marketing, the motives of direct
marketing and the degree of commitment to direct marketing. Questionnaires were distributed
amongst 280 respondents and data collection was administered through telephone. The results
showed that the two major reasons that firms choose to incorporate direct marketing as
marketing tools is to win businesses from current customers (90%) & to build customer loyalty
(87%).
Sales Promotion and IMC
Sales promotions can be classified into consumer sales promotions and trade sales
promotions. Consumer sales promotions are directed at the customers, consumers, or the
retailers. Trade sales promotions are target the wholesalers. Other classification of sales
promotion is monetary sales promotion and non- monetary sales promotion. The most common
type of monetary promotions includes discounts, coupons, and rebates. Non-monetary
promotions are represented by store flyers, in-store displays, shelf talkers and other methods of
drawing consumer attention to specific products(Pauler & Dick, 2006). Sales promotions are
marketing events that are designed to increase customers purchase in a determined period

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(Ramezani & Heidarzadeh, The Impact of Monetary and Non-Monetary Promotions on Brand
Equity in Industrial Market, 2014). The following hypotheses were tested in the article, The
Impact of Monetary and Non-Monetary Promotions on Brand Equity in Industrial Market:
H1: by using monetary promotions, brand perceived value is decreased by customer.
H2: by using monetary promotions, brand association is decreased by customer.
H3: by using nonmonetary promotions, brand perceived value is increased by customer.
H4: by using nonmonetary promotions, brand association is increased by customer.
The research conducted was quantitative and it was an attempt to measure and deal with the
customers purchase intention. Information oriented sampling was used for data collection. A
five-point Likert-type scale was used in the instrument. H1 was rejected. This means that using
monetary promotion does not decrease the perceived value. Also, H2 is rejected as well which
shows that using monetary promotions do no decrease the brand associations. Results indicate
that monetary promotion cant have a negative influence on brand association. Finally, H3 and
H4 were both accepted which concludes that non- monetary sales promotions increase brand
perceived value and also increase the brand association. In The value of non-monetary-based
retail promotions: Comparing an in store experiment to simulated purchasing, an experiment
was conducted by Corsi, Loose &Lockshin (2013) to measure the effect of non-monetary sales
promotions on the number of sales. The research question that was developed was RQ1.1: Do
in-store non-monetary promotions increase sales of wines? The study comprised three main
stages: the selection and pre-test of the promotional messages and logos, the in-store experiment
and the online discrete choice experiment. It was concluded that there is a positive effect of nonmonetary sales promotion on the number of sales. The promotional effect caused a +52%
increase in total sales.
Advertising and IMC
The selling job of advertising is to generate information to the consumer (Nelson,
1974). In the article The Brand Capability Value of Integrated Marketing Communication, the
authors Ratnatunga& Ewing (2005) measure the impact of each IMC tool on IMC and on Brand
Recognition. Advertising, direct marketing, public relations, sponsorships, promotions & www
are the tools that are researched upon in the study. The results show that there is a 60%
contribution of advertising on Brand Recognition which is a majority. In An Empirical

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Investigation of the Interaction between Publicity, Advertising, and Previous Brand Attitudes
&Knowledge, the authors, Stammerjohan, Wood, Chang & Thorson (2005) empirically
investigate the relationship of advertising with the attitude of the brand. Positive radio
advertisements and print advertisements were used as advertising mediums. The results show
that advertising has a positive effect on both the attitude of the ad and also on the attitude of the
brand.
Public Relations and IMC
Public Relations or Publicity is recognized as an efficient, credible means of
communication (Stammerjohan, Wood, Chang, & Thorson, 2005). The crucial perspective in
this scenario is that the PR of the organization can be both negative and positive. Public relations
can make or break the business organization. The public relations of the company can change the
attitude of the consumer on the brand and also on the advertisement (Stammerjohan, et al.,
2005). In Integrated Marketing Communications: Practice Leads Theory, the comparison
between advertising and public relations is done and how it effects IMC. Kitchen, Kim &Scultz
(2008) acknowledge that various tools of IMC are used in marketing campaigns and it is
essential to evaluate how each tool is beneficial. Some organizations outsource their PR
department to agencies so that it is done more effectively. The comparison shows that there more
employees employed in PR agencies rather than in advertising agencies. The unit of analysis was
respondents from Korea, U.S.A & U.K. Also, the study describes quantitatively that
Multinational Corporations focus more on PR rather than on advertising. However the
implementation rate is lower in all three countries. In Korea, advertising has an implementation
rate of 87% as compared to 80% of PR. In U.S, Advertising has a near 100& implementation rate
as compared to 60% of PR. This shows that although organizations and firms value PR, but it is
difficult to implement and achieve it.
Internet Marketing and IMC
The internet is an important tool in the developing world to get your message across.
Internet provides a prospect for interaction and is valued highly by both consumers and
organizations. The Business to Consumer market is largely focused on the internet as it leads to
market penetration and market development. More consumers can be targeted and also other

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consumers in geographical locations can be reached which was initially not possible. In the
article, The internets impact on integrated marketing communication, internet is defined to
have 5 elements. The internet technology will be everywhere, it will always be accessible, it will
always be on, anyone will be able to access the information, it will be invisible. This proves that
the emerging or new media which is the internet has a crucial role to play as an IMC tool.
However Ivanov (2012) points out there are several disadvantages to internet marketing as well
because sometimes things go out of control (viral). There is a lesser control of the marketer. It
depends majorly on the consumer whether they would want to spread the message or not. There
may be an increased risk of negative reactions from the consumers. In Direct Marketing on the
Internet: An Empirical Assessment of Consumer Attitudes, the authors Mehta &Sivadas (1995)
study the attitude of consumers on internet related marketing activities. The attitude towards the
targeted advertisements was positive. The interest and involvement of consumers on
advertisements is positive as well. The consumers attitude on the commercialization of internet
has mixed responses. Some consumers are not satisfied with the amount of information that is
available on the internet whereas some see it as a benefit. However, these were measures of
attitudes not behaviours.

This study would look at the results of incorporating Integrated Marketing


Communication in an organization. Implementing the IMC approach results in greater brand
equity, brand performance & also helps to achieve higher customer relationship management.
These results will be backed by literature in the following review.
IMC and Brand Equity
Brand Equity means to have strong and highly favourable brand associations of
customer(Keller, 1993). Therefore, a brand has positive customer-brand equity when the
consumers react favourably to the product offering. Madhavaram, Badrinarayanan&McDonald
(2005) defined IMC as critical components of brand equity. The qualitative measures of brand
equity will be addressed in this portion. The quantitative factors will be branched under brand
performance in the next portion. Aaker (1996) categorizes the qualitative factors as assets and
labels them as brand awareness, brand loyalty, brand association and other propriety of brand

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assets such as brand image. All these factors help the organizations to gather the attention of
customers and through customer relationship management; the customers are retained as well.
Keller (1993) defines brand awareness as the strength of the brand trace in memory that is
reflected by the consumer's ability to identify the brand under different conditions. He also
defined brand image as perceptions about a brand as reflected by the brand associations held in
consumer memory. In the article, Integrated Marketing Communication (IMC) and Brand
Identity as Critical Components of Brand Equity Strategy the relationship between IMC and
brand equity is tested. Brand Equity is further divided into brand awareness and brand image.
Brand awareness and image have been defined so that the results can have greater meaning.
One hypothesis was

P5a: IMC effectiveness is relatedpositivelyto brand awareness.

The other hypothesis was P5b: IMC effectiveness is related positively to brand image. It was
concluded through results that effective implementation of IMC leads to higher brand awareness,
image and hence greater brand equity. However, the authors also mentioned a key point that
effectiveness in IMC can be achieved through synergy. Synergy can be maintained when the
combined effect of the IMC activities (which will be mentioned in the next review) is greater
than the sum of the individual activities. Thus, you need to have and integrated approach to get a
unified message across so that the customers have an identical and similar message delivered to
them. In the article, The Brand Capability Value of Integrated Marketing Communication, the
value of intangible assets of a firm is looked at. The relationship between the IMC variables and
brand recognition capability is measured. Having a strong brand recognition leads to stronger
competitive advantage (Ratnatunga & Ewing, 2005). Brand recognition is a qualitative factor
and therefore is an intangible asset. The authors acknowledge that measuring the extent of brand
recognition was difficult as they had to construct their own scale. The scale that was used in this
research was Capability Economic Value of Intangible and Tangible Assets (CEVITA). This
valuation approach takes into account both the tangible and intangible assets. Therefore, it is a
valid scale to measure the qualitative factor; brand recognition. In this article, brand equity is
termed as what one has (Ratnatunga & Ewing, 2005). The study concluded with the result that
the value of the brand is strengthened by applying the various IMC tools. The brand recognition
was measured by the percentage of repeat- purchase customers. The authors Ratnatunga&
Ewing (2005) highlight that retaining the customers should be more of a priority rather than
acquiring them. Therefore, this review would also be addressing the importance of customer

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relationship management later. In the article, The Relationship between Integrated Marketing
Communication, Market Orientation, and Brand Orientation, Reid, Luxton&Mavondo (2005)
discuss the impact of IMC on brand orientation. Urde (1994) defined brand orientation as an
approach in which the processes of the organization revolve around the creation, development,
and protection of brand identity in an ongoing interaction with target customers with the aim of
achieving lasting competitive advantages. Brand identity is a measure of brand equity as
mentioned earlier.Urde (1994) points out that to create a successful brand identity, it is
necessary to ensure that brand messages are strategically driven and are synchronized. This key
point was highlighted earlier in the review that an integrated approach should be maintained. The
study links IMC to brand orientation. And the results indicate the close positive relationship and
interdependence of brand orientation & IMC. Brand orientation adds value to the offerings and
it gives a competitive advantage. Thus, this creates brand distinctiveness. The authors, Reid,
Luxton&Mavondo (2005) suggest that brand orientation can be drawn from 6 elements. A shared
brand vision; in which the strategic goals are being directly related to the brand, shared brand
functionality; in which the organization communicates specific functional attributes and benefits
to the customers by differentiating themselves from their competitors, shared brand positioning;
in which the brand forms a means of identification, differentiation, brand return on investment;
in which brand equity leads to higher ROI, brand symbolism; in which the brand has a strong
emotional and symbolic appeal, brand value adding capability; in which satisfying the customers
is the ultimate goal. Most of these are qualitative factors and all of these factors result in higher
brand equity. However, the authors acknowledge that implementing these marketing concepts
into the marketplace is difficult. There have been implications with the operationalization in the
organizations. In the article, How can integrated marketing communications and advanced
technology influence the creation of customer-based brand equity? the relationship between
IMC and brand equity is measured. In the article, brand equity is divided into three qualitative
variables; brand image, perceived quality & brand loyalty (Seric, Gil-Saura, & Ruiz-Molina,
How can integrated marketing communications and advanced technology influence the creation
of customer-based brand equity?, 2014). In this study, information technology is determined to
be the key influence and also the mediating factor that enhances brand equity. The relationship
between IMC and brand equity was noted from the customer perspective and the findings
revealed positive and strong relationships between the variables. The following hypotheses were

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H1: IMC perception has a positive impact on brand image.


H2: IMC perception has positive impact on perceived quality.H3: IMC perception has a
positive impact on brand loyalty.

Also, IMC can influence and

control the meanings linked with the brand, create and reflect the brand image, thus influencing
the way consumers perceive the brand (Cobb-Walgren, Ruble, & Donthu, 1995). Kitchen,
Brignell, Li & Jones (2004) also acknowledge the importance of building and increasing a
brands image-based equity. Finally, Tsai (2005) gives and overall view in the article, Integrated
marketing as management of holistic consumer experience. The author states that for achieving
brand equity, there should be strategic brand management. The IMC tools such as public
relations, sales promotion, personal selling, advertising, online marketing, & direct marketing
should be unified in the marketing campaign. This augments and strengthens the holistic
consumer experience by building brand equity.
IMC and Brand Performance
Brand Performance can be defined as the success of the brand in the market and the
strategic success of a brand (Wong, 2008). The brand performance can be measured by two
aspects; brand market performance & brand profitability performance. Both are quantitative
measures. Baldauf, Cravens & Binder (2003) declare that brand profitability performance is an
index of the financial share of brand in relation with the profits keeping the profit margin in
account, whereas, brand market performance is a measure based on the level of sales & market
share. In the article, The Brand Capability Value of Integrated Marketing Communication,
Ratnatunga&Ewig (2005) evaluate how the right mix of marketing activities, if implemented
effectively, can optimize sales and profitability. The study mentions ROI as a measure of Brand
Performance. The size and rate of growth of the total market is kept into account when studying
the variables. H1: IMC tools & Immediate Sales H2: IMC tools & Future Sales. The results
show that IMC can potentially have both an attitudinal effect on the brand and a behavioural
effect on sales. The authors point out that this relationship is crucial for marketing directors as it
gives them an indication of how well they have performed by evaluating the sales revenue. Also,
the potential sales target can also be evaluated based on the mix of the IMC variables. How each
IMC tool affect Sales will be focused in the next review. In the article, Strategy in Direct and
Interactive Marketing and Integrated Marketing Communications, the benefits of Integrated

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Marketing Communication are looked at. IMC is becoming crucial for marketers due to its
advantage of providing cost effectiveness (Csiksov, Antoov, & ulkov, 2014). IMC
creates competitive advantage by boosting sales and profits, while saving time & money. The
article states that a unified message can have a greater impact rather than disjointed messages. A
clear cut, consistent message has more chance of being delivered across through to the
customer. Also, in the minds of the consumer, the risk is reduced. The customers perceive the
message as more reliable and credible. In the article, The Relationship between Integrated
Marketing Communication, Market Orientation, and Brand Orientation, the relationship
between IMC and Brand Performance is directly measured. Brand performance indicators can be
financial indicators of performance such as sales, market share, profit, and ROI. (Reid, Luxton,
& Mavondo, The Relationship between Integrated Marketing Communication, Market
Orientation, and Brand Orientation, 2005) Also, the authors stated that IMC has been
hypothesized to provide benefits in the coordination of marketing communication activities and
across the various functions involved in the implementation of marketing campaigns. The
hypothesis of this study was

H6: IMC is directly and positively related to brand

performance. This relationship was tested as strong and positive. One of the implications for the
managers was the integration of IMC to deliver brand performance would be generally difficult.
This would require routine cooperation from all levels of the management. In the article,
Performance Auditing of Integrated Marketing Communication (IMC) Actions and Outcomes,
Reid (2005) studies the relationship of IMC with Sales Performance. Brand outcomes such as
sales are key issues according to the author. A sample of 250 was chosen and amongst services
organizations targeted by the survey included legal services, management consultants, architects,
and engineering firms. Consumer goods organizations included food and electronics
manufacturers.The CFA model that was chosen by the researcher indicated that there was a
strong positive relationship between IMC and Sales Performance. In the article, Model of
Marketing Communications Effectiveness in the Business to Business Markets,
Jerman&Zavrsnik (2012) examines the impact of marketing communication effectiveness and
organizational performance. The study showed that implementing IMC may be strongly related
to better marketing results in terms of sales, market share & profits for an organization. These are
all measures of the brand performance. The firms market share was kept in mind as it influences
the competitive market position. 269 respondents were measured on a 7-point Likert scale. The

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latent variable marketing communication effectiveness also had a positive impact on the other
endogenous variable of .organizational performance (standardized coefficient = 0.44). Thus the
hypothesis tested was positive. In the article, How Marketing Communications Correlates with
Business Performance, the correlation between marketing communication activities and
business performance is studied. The study was conducted to determine which activities help
raise net profits and which communication activities should a firm incorporate to optimize
business performance. (Mumel, Hocevar, & Snoj, 2007) H1: There is no correlation between
the number of marketing communication activities the company uses and its aggregate business
performance. H3: There is no correlation between the frequency of using a specific marketing
activity or tool and its aggregate business performance.The study defines aggregate business
performance as 13 variables; the aggregate business performance of a company is defined
through 13 variables: net sales, net sales growth index, net profit margin, return on equity, net
return on assets, net profit/loss per employee, net business result for the accounting period,
customer loyalty, achieved profit vs. planned, achieved net return on investment vs. planned,
achieved net sales vs. planned, achieved market share vs. planned, and achieved employee
loyalty vs. planned. The results showed that the correlation between the number of marketing
communication activities a company uses and net sales is significant: p=0,001 and positive
r=0,428. Hence, both H1 & H3 were rejected, meaning that there is a positive relationship
between the number and frequency of marketing activities and brand performance.

IMC and Customer Relationship Management


Customer Relationship Management is defined as acquiring best customers, maintaining
and encouraging them to consume products and services of the company more. (Ekhlassi,
Maghsoodi, & Mehrmanesh, 2012). CRM has become a priority for firms and organizations as
it provides a competitive edge to survive in competitive market. (Becker, Greve, & Albers, 2009)
In the article, Determining the Integrated Marketing Communication Tools for Different Stages
of Customer Relationship inDigital Era, the authors have classified CRM into 3 stages as
Customer Acquisition (CA), Customer Retention (CR), & Customer Development (CD)
(Ekhlassi, et al., 2012)CRM is an organizational approach to understanding and influencing on
customer behaviour through a meaningful relationship. The article states that a company loses

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20-40% of their customers annually. Thus, customer acquisition is crucial. New customer
acquisition deals with gaining short term profits and growth and focuses on general public.
Because of the IT developments and the capability to collect customer information and purchase
history, Customer retention strategies have become crucial as well. Acquiring a new customer is
almost five times more expensive than customer retention. Thus customer retention is critical in
regard to Customer Relationship Management. This includes building, maintaining and
continuing a long term relationship with the customer. Customer Development means that the
company increases their selling to current customers. Thus, market penetration techniques can be
used to target more customers. Also, product development can be done to enhance the quality of
the current product or service. The study concludes by stating that a two-way relationship with
the customer is important and it can be maintained through various IMC techniques. In the
article, Marketing Dj Vu: The Discovery of Integrated Marketing Communications, the
authors state that the focus should be on the consumer or the audience. (Spotts, Lambert, &
Joyce, 1998) Also, fostering long-term relationships between the customer and the company is
imperative. The author highlights that currently IMC offers several new perspectives in
marketing, such as having an integrated approach, being consumer-focused, and that marketing
communication is much broader and has various elements other than promotion. Therefore, the
key to achieve organizational goals is to determine the needs and wants of target markets and
delivering the desired satisfaction more effectively and efficiently than competitors. The author
shows the importance of CRM by stating that the IMC tools should be used to focus on the
consumer or the customer, not on the organizations sales or profit goals.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

22

CHAPTER3: METHODOLOGY
METHOD
Instrument Design
For this empirical research, the primary data is collected through a structured
questionnaire. The questionnaire is the instrument which consists of close-ended questions
measured by 5-point Likert type scale (Seric, Gil-Saura, & Ruiz-Molina, How can integrated
marketing communications and advancedtechnology influence the creation of customer-based
brand equity? Evidence from the hospitality industry, 2014). The latent variables will be
measured by the items in the questionnaire. The questionnaire was written in English and each
variable was measured by at least 5 items.

Measures
Direct Marketing:
Direct Marketing was measured by using five items on five-point Likert-type scale
from 1 (strongly disagree) to 5 (strongly agree). These items were extracted from the studies by
(Taylor, Frank & Maynard, 2000).

Direct Marketing
Telemarketing calls are an
opportunity to provide feedback to
the marketer.
Telemarketing calls serve a useful
purpose
Telemarketing is an offensive way to
sell

It is acceptable for direct marketers to


make personal information available
to other companies

Sources
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank

THE ANTECEDENTS AND CONSEQUENCES OF IMC

23

&Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)

It is acceptable for direct marketers to


make information on my purchasing
habits available to other companies
The governments should exercise
more control over sales messages that
come in the mail.
Thegovernment should exercise more
control over telephone sales
messages.

Sales Promotion:
Sales Promotion was measured by using five items on five-point Likert-type scale
from 1 (strongly disagree) to 5 (strongly agree). These items were extracted from the studies by
Lichtenstein, Burton &Netemeyer (1997).

Sales Promotion
I am more likely to buy a brand if it
has a cents-off deal on the label.

Consumers enjoy buying products


that come with a free gift

Consumers take advantage of the


buy one- get one free offer

I am more likely to buy brands that


are displayed at the end of the aisle.

Consumers are more likely to buy a


brand that is on sale

Sources
Items adapted
and modified
fromLichtenstein, Burton
&Netemeyer (1997).
Items adapted
and modified
fromLichtenstein, Burton
&Netemeyer (1997).
Items adapted
and modified
fromLichtenstein, Burton
&Netemeyer (1997).
Items adapted
and modified
fromLichtenstein, Burton
&Netemeyer (1997).
Items adapted
and modified
fromLichtenstein, Burton
&Netemeyer (1997).

THE ANTECEDENTS AND CONSEQUENCES OF IMC

24

Consumers are more compelled to


respond to contest or sweepstake
offers.

Items adapted
and modified
fromLichtenstein, Burton
&Netemeyer (1997).

Advertising:
Advertising was measured by using six items on five-point Likert-type scalefrom 1
(strongly disagree) to 5 (strongly agree). These items were extracted from the studies by Pollay&
Mittal (1993).
Advertising
Advertising results in better products
for the public

Sources
Items adapted
and modified
fromby Pollay& Mittal
(1993).

In general, advertising helps our


nations economy

Items adapted
and modified
fromby Pollay& Mittal
(1993).

Advertising is a valuable source of


information about products and
services

Items adapted
and modified
fromby Pollay& Mittal
(1993).

Quite often advertising is amusing


and entertaining.

Items adapted
and modified
fromby Pollay& Mittal
(1993).

Advertising promotes undesirable


values in our society.

Items adapted
and modified
fromby Pollay& Mittal
(1993).

Advertising makes people buy


unaffordable products just to show
off.

Items adapted
and modified
fromby Pollay& Mittal
(1993).

THE ANTECEDENTS AND CONSEQUENCES OF IMC

25

Public Relations:
Public Relations was measured by using five items on five-point Likert-type
scalefrom 1 (strongly disagree) to 5 (strongly agree). These items were extracted from the studies
by Mellado&Barria (2012).
Public Relations
Our organization develops a longterm relationship with the public

Our organizations reputation is the


most important intangible asset
Our organization reacts to short-term
problems as they occur

Our organization develops strategic


plan for building trust

Our organization avoids controversial


topics that may arise internally

Sources
Items adapted
and modified
fromMellado&Barria
(2012).
Items adapted
and modified
fromMellado&Barria
(2012).
Items adapted
and modified
fromMellado&Barria
(2012).
Items adapted
and modified
fromMellado&Barria
(2012).
Items adapted
and modified
fromMellado&Barria
(2012).

THE ANTECEDENTS AND CONSEQUENCES OF IMC

26

Internet Marketing:
Internet Marketing was measured by using seven items on five-point Likert-type
scalefrom 1 (strongly disagree) to 5 (strongly agree). These items were extracted from the studies
by Prasad, Ramamurthy & Naidu (2001).
Internet Marketing
Our organization makes use of
internet to promote and advertise the
companys products, services &
capabilities
Our organization provides online
product catalog to customers and
prospects

Our organization answers customers


queries about product availability,
order status, etc. through internet
Our organization allows customers to
place online orders

Our organization makes use of


internet to build awareness and image

Our organization makes use of


internet to boost sales

Our organization makes use of


internet to improve profitability

Sources
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)

Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)
Items adapted
and modified
from (Taylor, Frank &
Maynard, 2000)

THE ANTECEDENTS AND CONSEQUENCES OF IMC

27

Integrated Marketing Communication (IMC):


IMC was measured by using seven items on five-point Likert-type scale from 1 (strongly
disagree) to 5 (strongly agree). These items were extracted from the studies by Reid (2005).
Integrated Marketing
Communication
Our brand's media plan is a strategic
balance between mass media and
one-to-one media.
Special programs are in place to
facilitate customer inquiries and

Sources
Items adapted
and modified
fromReid (2005).
Items adapted
and modified
fromReid (2005).

complaints about your brand

In your company, the process of


managing the brand's reputation is the
responsibility of all departments and
employees.

Items adapted
and modified
fromReid (2005).

The people managing the


communications program for your
brand have a good understanding of
the strengths and weaknesses of all
major marketing communications
tools, such as direct response,PR,
sales promotion, advertising, and
packaging.

Items adapted
and modified
from Reid (2005).

Your company does a good job of


internal marketing, informing all
areas of the organization about your
brand's objectives and marketing
programs.

Items adapted
and modified
fromReid (2005).

You regularly review your marketing


plan to ensure relevance and
consistency of your brand messages
and strategic brand positioning.

Items adapted
and modified
fromReid (2005).

THE ANTECEDENTS AND CONSEQUENCES OF IMC

28

The stated objective of your brand's


marketing communication program is
to create and maintain profitable
relationships with customers and
other stakeholders by ensuring
consistency in all messages sent to
these groups.

Items adapted
and modified
fromReid (2005).

Brand Equity:
Brand Equity was divided into 5 components and each component had 1 item. There
were a total of 5 items that were measured on five-point Likert-type scalefrom 1 (strongly
disagree) to 5 (strongly agree). These items were extracted from the studies by Washburn &
Plank (2002).
Brand Equity
The likelihood that consumers
perceive our companys products as
reliable and of good quality is high
Consumers consider our companys
products to be their first choice

Sources
Items adapted
and modified
fromby Washburn & Plank
(2002).
Items adapted
and modified
fromby Washburn & Plank
(2002).

Consumers can recognize our brands


among other competing brands

Items adapted
and modified
fromby Washburn & Plank
(2002).

Consumers can quickly recall the


symbol and logo of our brand

Items adapted
and modified
fromby Washburn & Plank
(2002).

If another brand has the same features

Items adapted
and modified
fromby Washburn & Plank
(2002).

as our brand, consumers prefer to buy


our brand

THE ANTECEDENTS AND CONSEQUENCES OF IMC

29

Brand Performance:
Brand Performance was measured by using a total of 5 items that were measured on
five-point Likert-type scalefrom 1 (strongly disagree) to 5 (strongly agree). These items were
extracted from the studies by Lai, Chiu, Yang &Pai (2010).
Brand Performance
Purchasing or using our brand will
increase our companys sales growth

Purchasing or using our brand will


increase our companys market share

Purchasing or using our brand will


increase our companys margin
Purchasing or using our brand will
increase our companys profitability

Purchasing or using our brand will


increase our companys overall
performance

Sources
Items adapted
and modified
fromby Lai, Chiu, Yang
&Pai (2010).
Items adapted
and modified
fromby Lai, Chiu, Yang
&Pai (2010).
Items adapted
and modified
fromby Lai, Chiu, Yang
&Pai (2010).
Items adapted
and modified
fromby Lai, Chiu, Yang
&Pai (2010).
Items adapted
and modified
fromby Lai, Chiu, Yang
&Pai (2010).

THE ANTECEDENTS AND CONSEQUENCES OF IMC

30

Customer Relationship Management (CRM):


Customer Relationship Management (CRM) can be divided into 3 components
Customer Acquisition (CA), Customer Retention (CR), & Customer Development
(CD)(Ekhlassi, Maghsoodi, & Mehrmanesh, 2012). CRM was measured by using six items on
five-point Likert-type scale from 1 (strongly disagree) to 5 (strongly agree). These items were
extracted from the studies by Yim, Anderson &Swaminathan (2004)
Customer Relationship
Management
Our Organization has established
clear business goals related to
customer acquisition, development, &
retention
Our Organization has the sales &

Sources
Items adapted
and modified
from Yim, Anderson
&Swaminathan (2004)

succeed in CRM

Items adapted
and modified
from Yim, Anderson
&Swaminathan (2004)

Our employee training programs are


designed to develop the skills
required for acquiring and deepening
customer relationships

Items adapted
and modified
from Yim, Anderson
&Swaminathan (2004)

Employee performance is measured

Items adapted
and modified
from Yim, Anderson
&Swaminathan (2004)

marketing expertise and resources to

and rewarded based on meeting


customer needs and on successfully
serving the customer
Our Organization does not commit
time and resources in managing
customer relationships
Our organization provides channels to
enable ongoing two-way
communication between our key
customers and us

Items adapted
and modified
from Yim, Anderson
&Swaminathan (2004)
Items adapted
and modified
from Yim, Anderson
&Swaminathan (2004)

THE ANTECEDENTS AND CONSEQUENCES OF IMC

31

Sample
This study used existing scales to gather data on the factor affecting IMC and the
dependant variables of IMC. Non- probability samples were used so that the unit of analysis was
easily available and researched upon. A convenience sample of 200 was chosen that was easy to
reach. A response rate of 75% is expected so that there would be at least 150 responses that
could be measured and evaluated. The unit of analysis is organizations in Punjab, Pakistan that
have a marketing functional department in the organization. The questionnaire, which is the
instrument, will be sent out to the middle and top-level managers in these organizations. The
advertising and marketing agencies were excluded from the research as their responses may be
biased (Phelps, Harris, & Johnson, 1996). The names of the organizations managers were sought
and they were targeted.

Analysis Procedures
The main research instrument for empirical investigation in this research is selfadministered questionnaire which was constructed through literature. The research is empirical
quantitative thus surveys would be conducted to gather the primary data from the unit of
analysis. For the operationalization of this research, the instrument would be sent to the unit of
analysis by direct mail and through e-mail. These methods are cheap, quick as easy to administer
as well. The address information of all respondents would not be easily available thus e-mail is
considered to be an effective channel to get through to the managers of the organizations as the
contact information can be gained from the organizations website. Once the data has been
collected, the hypothesis testing will be done through regression analysis. This is a statistical
process to measure the relationship among the variables. The software used for the regression
analysis will be SPSS (Seric, Gil-Saura, & Ruiz-Molina, How can integrated marketing
communications and advancedtechnology influence the creation of customer-based brand
equity? Evidence from the hospitality industry, 2014). Confirmatory Factor Analysis would be
conducted as well to ensure that the independent variables do indeed impact the dependant
variables so that the non significant variables or items can be discarded. The reliability will be
examined to make sure that there is an important relation among variable in the proposed
theoretical framework.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

32

Table1A: Expected Signs

Variable

Expected sign

Author

Direct Marketing

(Kim, Song, & Kim, 2009)

Sales Promotion

(Chandon,

Morwitz,

&Reinartz, 2005)
Advertising

(Nelson, 1974)

Internet Marketing

Adelina

Eugenia

Ivanov,

2012)
Public Relations

(Stammerjohan,

Wood,

Chang, & Thorson, 2005)


Integrated Marketing

+
(Kitchen,2000)

Communication
Brand Equity

(Keller, 1993)

Brand Performance

(Wong, 2008)

Customer Relationship

(Ekhlassi, Maghsoodi, &


Mehrmanesh, 2012)

Management

THE ANTECEDENTS AND CONSEQUENCES OF IMC

33

CHAPTER 4: RESULTS AND ANALYSIS


CFA Measurements
CFA allows the researcher to test the hypothesis that a relationship between the
observed variables and their underlying latent construct(s) exists. The researcher uses knowledge
of the theory, empirical research, or both, postulates the relationship pattern a priority and then
tests the hypothesis statistically(Suhr, 2001).
The model consists of 9 unobserved variables. There are 5 exogenous variables: Direct
Marketing, Sales Promotion, Advertising, Public Relations & Internet Marketing. There are 3
endogenous variables: Brand Equity, Brand Performance, & Customer Relationship
Management.
Unobserved variables are named. Also, standardized estimates are used to check how
much each item is loaded. The modification indices help us relate error terms to improve the
model.
Confirmatory Factor Analysis (CFA) is used as cut-off criteria by loading each item and
testing item. Factors that had a loading of greater than 0.4 are used for the analysis as this is the
cut- off point.
Items
Q5

Factors

Estimates

<

Direct Marketing

0.611

<

Direct Marketing

0.697

<

Direct Marketing

0.48

<

Direct Marketing

0.121

<

Sales Promotion

0.324

<

Sales Promotion

0.589

--Q6
--DM3re
--Q8
--Q9
--Q10

THE ANTECEDENTS AND CONSEQUENCES OF IMC

34

--Q11

<

Sales Promotion

0.717

<

Sales Promotion

0.71

<

Sales Promotion

0.552

<

Advertising

0.629

<

Advertising

0.447

<

Advertising

0.364

<

Advertising

0.525

<

Advertising

0.308

<

Public Relation

0.648

<

Public Relation

0.697

<

Public Relation

0.726

<

Public Relation

0.57

<

Public Relation

0.353

<

Internet Marketing

0.615

<

Internet Marketing

0.657

--Q12
--Q13
--Q14
--Q15
--Q16
--Q17
--AD5re
--Q19
--Q20
--Q21
--Q22
--Q23
--Q24
--Q25

THE ANTECEDENTS AND CONSEQUENCES OF IMC

35

--Q26

<

Internet Marketing

0.55

<

Internet Marketing

0.676

<

Internet Marketing

0.765

<

Integrated Marketing Communication

0.545

<

Integrated Marketing Communication

0.71

<

Integrated Marketing Communication

0.548

<

Integrated Marketing Communication

0.603

<

Integrated Marketing Communication

0.664

<

Integrated Marketing Communication

0.616

<

Integrated Marketing Communication

0.629

<

Brand Performance

0.736

<

Brand Performance

0.781

<

Brand Performance

0.804

<

Brand Performance

0.649

<

Brand Equity

0.816

--Q27
--Q28
--Q29
--Q30
--Q31
--Q32
--Q33
--Q34
--Q35
--Q40
--Q41
--Q42
--Q43
--Q36

THE ANTECEDENTS AND CONSEQUENCES OF IMC

36

--Q37

<

Brand Equity

0.8

<

Brand Equity

0.821

<

Brand Equity

0.709

<

Customer Relationship Management

0.614

<

Customer Relationship Management

0.613

<

Customer Relationship Management

0.469

<

Customer Relationship Management

0.493

<

Customer Relationship Management

0.509

--Q38
--Q39
--Q44
--Q45
--Q46
--CRM4re
--Q48
---

Analyzing the scalars, the Standardized Regression Weights are looked at to check the
loading.
4 items had a factor loading of less than 0.4. These were Q8 Direct Marketing, Q9
Sales Promotion, Q18 Advertising, Q23 Public Relations.
These items are deleted as the factor loading is < 0.4.
Items
Q5

Factors

Estimate

<

Direct Marketing

0.792

<

Direct Marketing

0.703

<

Direct Marketing

0.545

--Q6
--DM3re

THE ANTECEDENTS AND CONSEQUENCES OF IMC

37

--Q10

<

Sales Promotion

0.645

<

Sales Promotion

0.744

<

Sales Promotion

0.801

<

Sales Promotion

0.611

<

Advertising

0.775

<

Advertising

0.502

<

Advertising

0.406

<

Advertising

0.577

<

Public Relation

0.808

<

Public Relation

0.776

<

Public Relation

0.818

<

Public Relation

0.647

<

Internet Marketing

0.744

<

Internet Marketing

0.721

<

Internet Marketing

0.617

--Q11
--Q12
--Q13
--Q14
--Q15
--Q16
--Q17
--Q19
--Q20
--Q21
--Q22
--Q24
--Q25
--Q26

THE ANTECEDENTS AND CONSEQUENCES OF IMC

38

--Q28

<

Internet Marketing

0.816

<

Integrated Marketing

0.73

--Q29
--Q30

Communication
<

--Q31

Q32

Q33

Q34

Q35

Q40

0.682

Integrated Marketing

0.742

Integrated Marketing

0.698

Communication
<

---

Integrated Marketing

Communication
<

---

0.64

Communication
<

---

Integrated Marketing

Communication
<

---

0.799

Communication
<

---

Integrated Marketing

Integrated Marketing

0.718

Communication
<

Brand Performance

0.848

<

Brand Performance

0.837

<

Brand Performance

0.856

<

Brand Performance

0.724

<

Brand Equity

0.827

<

Brand Equity

0.841

--Q41
--Q42
--Q43
--Q36
--Q37
---

THE ANTECEDENTS AND CONSEQUENCES OF IMC

Q38

39

<

Brand Equity

0.863

<

Brand Equity

0.765

<

Customer

0.834

--Q39
--Q44
--Q45

Relationship Management
<

--Q46

CRM4re

Q48

0.488

Customer

0.501

Relationship Management
<

---

Customer

Relationship Management
<

---

0.793

Relationship Management
<

---

Customer

Customer

0.555

Relationship Management

4 items have been deleted from the initial model. These are the updated standardized regression
weights. All items have a factor loading of > 0.4
A widely accepted informal definition of validity characterizes it as the degree to which an
instrument indeed measures what it purports to evaluate (Algina & Crocker, 1986). Hence,
performing reliability & validity tests are of paramount importance in research methodology.

Reliability & Validity analysis is performed on the factors.


Direct Marketing:
AVE: 0.518. Convergent Validity holds for Direct Marketing as the value is > than the threshold
value of 0.5. This means that all items that were included in Direct Marketing are actually
measuring direct marketing. They were valid and accurate to measure.
Construct Reliability value: 0.758. This is reliable as it is above the threshold value of 0.7

THE ANTECEDENTS AND CONSEQUENCES OF IMC

40

ASV: 0.27. Since, the ASV value < AVE value, discriminant validity holds.
Variables

Average

Average Shared

Construct

Discriminant

Variance

Variance (ASV)

Reliability

Validity

Extracted (AVE)

AVE>ASV

Convergent

> 0.70

Validity
>0.50
Direct Marketing

0.518

0.275

0.758

YES

Sales Promotion

0.501

0.424

0.796

YES

Advertising

0.338

0.560

0.658

NO

Public Relation

0.586

0.450

0.849

YES

Internet Marketing

0.533

0.302

0.850

YES

Integrated

0.514

0.457

0.881

YES

Brand Equity

0.680

0.558

0.895

YES

Brand Performance

0.669

0.201

0.890

YES

Customer

0.424

0.375

0.777

YES

Marketing
Communication

Relationship
Management

THE ANTECEDENTS AND CONSEQUENCES OF IMC

41

Confirmatory factor analysis (CFA) would be used to measure the relationship between the
hypotheses and verify the factor structure of a set of observed variables. CFA allows the
researcher to test the hypothesis that a relationship between observed variables and their
underlying latent constructs exists (Suhr, 2001)
Convergent validity is the degree to which two or more attempts to measure the same concept
through maximally dissimilar methods are in agreement. If two or more measures are true
indicators of a concept, then they should necessarily be highly correlated.
The convergent validity measured by ASV is highest (0.680) for Brand Equity which is an
endogenous variable. Advertising & Customer Relationship Management are the two
variables that have no convergent validity. The items measuring the factor will be reorganized to
maintain convergent validity.
Discriminant validity is the degree to which measures of distinct concepts differ. This means
that measures of different concepts should share little common variance (in a relative sense) and
that too high a co-variation casts doubt on the uniqueness of the measures and/or the concepts
(Richard, Yi, & Philips, 1991) Discriminant validity can be established by examining the
correlations among constructs. Discriminant validity holds for all variables except Advertising.
For the test for reliability of construct measurement, Cronbachs alpha is typically used
(Nunnally, 1967). All values of variables are above 0.7 except Advertising.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

42

Path Analysis
Path Analysis is a statistical method used to examine hypothesized (causal) relationships
between two or more variables (Lleras, 2010). A series of parameters are estimated by solving
one or more structural questions in order to test the fit of correlations matrix between two or
more models. One of the advantages of using path analysis is that it forces researchers to
explicitly specify how variables relate to one another and it determines the development of clear
& logical theories about the processes influencing a particular outcome.
Path Analysis is a method for explicitly formulating theory, and linking quantitative
estimates to causal effects thought to exist on a priori ground (Wolfle, 1980). Path Analysis
help us to test out hypothesis and to check the significant level of each variable drawn in the
Amos sheet.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

Path Model:

43

THE ANTECEDENTS AND CONSEQUENCES OF IMC

44

Model Fit
CMIN
Chi-Square

2040.811

P value

0.000

The higher the CMIN value there is, the more it is inappropriate for the model fit so the chi-square
should be low (Segars and Grover, 1998)and the P value should always be insignificant but here it is
P=0.000 which is significant.

Baseline Comparisons
Model

Default

NFI

RFI

IFI

TLI

Delta1

rho1

Delta2

rho2

0.545

0.502

0.636

0.595

CFI

0.63

model

The CFI, NFI, IFI and TLI should be bigger than 0.6. This makes the model fit. And in this case the
values of NFI, IFI, TLI and CFI are greater than 0.6 which shows model is fit. Only NFL value is less
then 0.6.

RMSEA
Model
Default model

RMSEA
0.105

For RMSEA there is still a debate of a good fit score however models are accepted at scores less than
0.10 (Hair et al., 2006). RMSEA=0.105 is almost in the range hence model is fit.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

45

All values presented above states that the model is fit because values meet their cut-off points.
Variables

Integrated

Standardized

P-

Estimates

Value

Decision

<---

Direct Marketing

0.09

0.001

ACCEPT

<---

Sales Promotion

0.069

0.501

reject

<---

Advertising

0.081

0.271

reject

<---

Public Relations

0.094

0.001

ACCEPT

<---

Internet Marketing

0.054

0.162

reject

<---

Integrated

0.217

0.001

ACCEPT

0.178

0.001

ACCEPT

0.16

0.001

ACCEPT

Marketing
Communication
Integrated
Marketing
Communication
Integrated
Marketing
Communication
Integrated
Marketing
Communication
Integrated
Marketing
Communication
Brand Equity

Marketing
Communication
Brand

<---

Performance

Integrated
Marketing
Communication

Customer

<---

Integrated

Relationship

Marketing

Management

Communication

THE ANTECEDENTS AND CONSEQUENCES OF IMC

46

Hypothesis Testing
1H1: There is a relationship between Direct Marketing and Integrated Marketing
Communication
Path Analysis was used to determine whether the given set of independent variable (direct
marketing) was statistically significantly related to dependent variable (IMC).

Direct Marketing IMC

P Value

Estimate

0.001

0.09

The P-value shows the significance level and the significance level for his relationship is less
than 0.05 (p<5%) and even less than 0.01.The standard estimate value is 0.09. The p-value is
significant thus we accept H1. A unit increase in direct marketing would increase IMC by 0.09
unit.

2H1: There is a relationship between Sales Promotion and Integrated Marketing


Communication
Path Analysis was used to determine whether the given set of independent variable (sales
promotion) was statistically significantly related to dependent variable (IMC).

Sales promotion IMC

P Value

Estimate

0.501

0.069

THE ANTECEDENTS AND CONSEQUENCES OF IMC

47

P>0.05 shows a highly insignificant relationship between these variables, this results in the
rejection of alternative hypothesis. Therefore, we reject the alternative hypothesis H1 and accept
our null hypothesis H0 (Simes, 1986).
The estimate value (0.069) explains that a unit increase in the independent variable (sales
promotion) would increase IMC by 0.069 units.

3H1: There is a relationship between Advertising and Integrated Marketing Communication


Path Analysis was used to determine whether the given set of independent variable (advertising)
was statistically significantly related to dependent variable (IMC).

Advertising IMC

P Value

Estimate

0.271

0.081

The P-value shows the significance level and the significance level for his relationship is greater
than 0.05 (Anderson & Burnham, 2000). This shows that H1 is rejected.
A positive estimate value shows a positive relationship between independent and dependent
variable whereas the negative value indicates a negative relationship (Oates, 1985). Estimate
value is positive (0.081) which indicates a positive relationship between advertising and IMC.
We reject the H1 which states the relationship exists between the variables. A unit increase in
advertisingwill increase IMC by 0.081 units.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

48

4H1: There is a positive relationship between Public Relations and Integrated Marketing
Communication
Path Analysis was used to determine whether the given set of independent variable (public
relations) was statistically significantly related to dependent variable (IMC).

Public relations IMC

P Value

Estimate

0.001

0.094

P<0.001 shows a highly significant relationship between these variables, this results in the
acceptance of alternative hypothesis. Therefore, we accept the alternative hypothesis (Simes,
1986).
A positive estimate value shows a positive relationship between independent and dependent
variable whereas the negative value indicates a negative relationship (Oates, 1985). Estimate
value is positive (0.094) which indicates a positive relationship between public relations and
IMC. We accept the H1 which states the relationship exists between the variables. A unit
increase in the public relations will increase IMC by 0.094 units.
5H1: There is a relationship between Internet Marketing and Integrated Marketing
Communication
Path Analysis was used to determine whether the given set of independent variable (internet
marketing) was statistically significantly related to dependent variable (IMC).

Internet marketing IMC

P Value

Estimate

0.162

0.054

THE ANTECEDENTS AND CONSEQUENCES OF IMC

49

P>0.05shows a highly insignificant relationship between these variables this results in the
rejection of alternative hypothesis. Therefore, we reject the alternative hypothesis (Simes, 1986).
A positive estimate value shows a positive relationship between independent and dependent
variable whereas the negative value indicates a negative relationship (Frank, 1969). Estimate
value is positive (0.054) which indicates a positive relationship between internet marketing and
IMC. Hence, we accept the alternative hypothesis. A unit increase in internet marketing would
increase IMC by 0.054 units.

6H1: There is a positive relationship between IMC implementation and Brand Equity
Path Analysis was used to determine whether the given set of independent variable (IMC) was
statistically significantly related to dependent variable (brand equity)

IMC Brand Equity

P Value

Estimate

0.001

0.217

P<0.05shows a highly significant relationship between these variables this results in the
acceptance of alternative hypothesis. Therefore, we accept the alternative hypothesis (Simes,
1986).
A positive estimate value shows a positive relationship between independent and dependent
variable whereas the negative value indicates a negative relationship (Frank, 1969). Estimate
value is positive (0.217) which indicates a positive relationship between IMC and brand equity.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

50

Hence, we accept the alternative hypothesis. A unit increase in IMC would increase brand equity
by 0.217 units.

7H1: There is a positive relationship between IMC implementation and Brand Performance
Path Analysis was used to determine whether the given set of independent variable (IMC) was
statistically significantly related to dependent variable (brand performance).

IMC brand performance

P Value

Estimate

0.001

0.178

P<0.05shows a highly significant relationship between these variables this results in the
acceptance of alternative hypothesis. Therefore, we accept the alternative hypothesis (Simes,
1986).
A positive estimate value shows a positive relationship between independent and dependent
variable whereas the negative value indicates a negative relationship (Frank, 1969). Estimate
value is positive (0.178) which indicates a positive relationship between IMC and brand
performance. Hence, we accept the alternative hypothesis. A unit increase in IMC would
increase brand performance by 0.178 units.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

51

8H1: There is a positive relationship between IMC implementation and Customer Relationship
Management
Path Analysis was used to determine whether the given set of independent variable (IMC
implementation) was statistically significantly related to dependent variable (CRM).

IMC CRM

P Value

Estimate

0.001

0.16

P<0.05shows a highly significant relationship between these variables this results in the
acceptance of alternative hypothesis. Therefore, we accept the alternative hypothesis (Simes,
1986).
A positive estimate value shows a positive relationship between independent and dependent
variable whereas the negative value indicates a negative relationship (Frank, 1969). Estimate
value is positive (0.16) which indicates a positive relationship between IMC implementation and
CRM. Hence, we accept the alternative hypothesis. A unit increase in IMC implementation
would increase CRM by 0.16 units

Discussion
This purpose of this research was to explore the multiple marketing tools that impact
Integrated Marketing Communication (IMC). It is hoped that this study would contribute to the
knowledge of those variables that had been ignored in previous researches.Integrated Marketing
Communication (IMC) is an important element which has a strong relationship with organization
performance. (IMC) is a method of applying an integrated approach of marketing by achieving
efficiency through synergy. The antecedent factors that impact IMC and determine the
relationship with consequences of IMC have been studied in detail in previous researches by
(Rehman & Ibrahim, 2011)and(Fitzpatric, 2005).

THE ANTECEDENTS AND CONSEQUENCES OF IMC

52

The objective of the study was achieved by studying and identifying factors in IMC that
impact Integrated Marketing Communication in an organization. Direct Marketing, Sales
Promotion, Advertising, Internet Marketing, Public Relations &Personal Sellingare the
components in the promotional mix that influence IMC. The study also looks at how IMC
affects other factors like brand equity, brand performance and customer relationship
management. CFA and Path Analysis were conducted on the variables to test the effects of the
independent variables on the dependent variables. No variables were dropped (Nora, 2004).
The primary purpose or aim of this study is to explore the importance of Integrated
Marketing Communication (IMC) in the dynamic marketing environment and toanalyze the
implementation of Integrated Marketing Communication (IMC) within business organizations in
the province in Punjab, Pakistan. This main aim will be pursued through the following
objectives:
-

To specify how each marketing tool impacts Integrated Marketing Communication

To examine the relationship of the factors that influence Integrated Marketing


Communication (IMC)

To explore the extent to which changes in the marketing environment have caused
the marketing managers to shift to using a more integrated approach to marketing.

To determine the positive impact in organizational performance by incorporating


Integrated Marketing Communication (IMC)

To identify any potential barriers or limitations that stand in the way of


implementing Integrated Marketing Communication (IMC) by a business
organization

THE ANTECEDENTS AND CONSEQUENCES OF IMC

53

Suggestions for Future Research


It was not possible to measure the marketing activities and organizational performance of
all organizations in the world and thus the scope of the study is more narrowly focused on the
medium and large scale organizations in the province of Punjab (Pakistan). For future research,
the unit of analysis can be a wider target. The organizations that could be targeted should have a
marketing functional department which is practicing various marketing techniques so that the
findings can be more accurate and precise. Other provinces can be researched upon. Different
provinces can be compared and evaluated.
Also, a longitudinal research can be done on a similar unit of analysis to find out the
extent of IMC implementation done by an organization in a specific period of time. This would
evaluate the importance and significance of the research to the marketing managers. It would
also find out if marketing managers are willing to incorporate IMC tools in their marketing
campaigns.

Conclusion
The results of the path analysis depicted that Direct Marketing, Public Relations &
Internet Marketing have a positive and significant effect and relationship with IMC. While
Advertising & Sales Promotion was shown to have no significance with IMC. Meanwhile, IMC
has a significant impact on all the dependant variables that are Brand Equity, Brand Performance
& Customer Relationship Management (Ekhlassi, 2012).
The results indicate that Direct Marketing positively and significantly impacts sales
performance. . Results indicate that monetary promotion cant have a negative influence on
brand association. The results show that advertising has a positive effect on both the attitude of
the ad and also on the attitude of the brand.
This research is useful for managers as it provides them with an insight on which kind of
marketing tools they can incorporate in their marketing campaigns. An important decision that
marketing managers have to make is the budget decision and allocation of resources. Therefore,
this research would provide information to them in regard to which effective marketing tools
should be included in the marketing campaigns. The significance of each factor will offer
knowledge to the managers as to which marketing tools should be focused upon.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

54

The research provides findings that would enhance the performance of an organization.
The relationship between Integrated Marketing Communication (IMC) and organizational
performance will be specified. An organization can be quantitatively and qualitatively improved
by associating Integrated Marketing Communication (IMC) tools with the marketing campaigns.
This study defines how brand equity can be improved through different marketing tools. Also,
brand performance can be improved through extensive sales and profits by integrating various
marketing tools. The evidence of enhanced organization image is also depicted in this research as
Customer Relationship Management can be maintained. The findings are useful for the
marketing department as the results between the variables are positive and significant.

THE ANTECEDENTS AND CONSEQUENCES OF IMC

55

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THE ANTECEDENTS AND CONSEQUENCES OF IMC

59

Appendix:

Questionnaire

* Required
Age *
o
o
o
o
o
o

18-21
22-30
31-40
41-50
51-60
60 +

Gender *
Male
o
Female
Monthly Income *
o

Less Than Rs. 20,000


o
20,000-60,000
o
60,000-100,000
o
Greater Than Rs. 100,000
What position do you hold in the organization? *
o

Low Level Management


o
Mid Level Management
o
Top Level Management
Telemarketing calls are an opportunity to provide feedback to the
marketer. *
o

THE ANTECEDENTS AND CONSEQUENCES OF IMC

60

Strongly Disagree

Strongly Agree

Telemarketing calls serve a useful purpose *


1

Strongly Disagree

Strongly Agree

Telemarketing is an offensive way to sell *


1

Strongly Disagree

Strongly Agree

It is acceptable for direct marketers to make personal information


available to other companies *
1

Strongly Disagree

Strongly Agree

Consumers are more likely to buy a brand if it has a cents-off deal


on the label *
1

Strongly Disagree

Strongly Agree

Consumers enjoy buying products that come with a free gift *


1

Strongly Disagree

Strongly Agree

Consumers take advantage of the buy one- get one free offer *

THE ANTECEDENTS AND CONSEQUENCES OF IMC

61

Strongly Disagree

Strongly Agree

Consumers are more likely to buy a brand that is on sale *


1

Strongly Disagree

Strongly Agree

Consumers are more compelled to respond to contest or


sweepstake offers. *
1

Strongly Disagree

Strongly Agree

Advertising results in better products for the public *


1

Strongly Disagree

Strongly Agree

In general, advertising helps our nations economy *


1

Strongly Disagree

Strongly Agree

Advertising is a valuable source of information about products and


services *
1

THE ANTECEDENTS AND CONSEQUENCES OF IMC

62

Strongly Disagree

Strongly Agree

Quite often advertising is amusing and entertaining *


1

Strongly Disagree

Strongly Agree

Advertising promotes undesirable values in our society. *


1

Strongly Disagree

Strongly Agree

Our organization develops a long-term relationship with the


public *
1

Strongly Disagree

Strongly Agree

Our organizations reputation is the most important intangible


asset *
1

Strongly Disagree

Strongly Agree

Our organization develops strategic plan for building trust *


1

Strongly Disagree

Strongly Agree

THE ANTECEDENTS AND CONSEQUENCES OF IMC

63

Our organization avoids controversial topics that may arise


internally *
1

Strongly Disagree

Strongly Agree

Our organization makes use of internet to promote and advertise


the companys products, services & capabilities *
1

Strongly Disagree

Strongly Agree

Our organization provides online product catalog to customers and


prospects *
1

Strongly Disagree

Strongly Agree

Our organization answers customers queries about product


availability, order status, etc. through internet *
1

Strongly Disagree

Strongly Agree

Our organization makes use of internet to build awareness and


image *
1

Strongly Disagree

Strongly Agree

THE ANTECEDENTS AND CONSEQUENCES OF IMC

64

Our organization makes use of internet to boost sales *


1

Strongly Disagree

Strongly Agree

Our organization makes use of internet to improve profitability *


1

Strongly Disagree

Strongly Agree

Our brand's media plan is a strategic balance between mass media


and one-to-one media. *
1

Strongly Disagree

Strongly Agree

Special programs are in place to facilitate customer inquiriesand


complaints about your brand *
1

Strongly Disagree

Strongly Agree

In our company, the process of managing the brand's reputationis


the responsibility of all departments and employees. *
1

Strongly Disagree

Strongly Agree

The people managing the communications program for yourbrand


have a good understanding of the strengths and weaknessesof all

THE ANTECEDENTS AND CONSEQUENCES OF IMC

65

major marketing communications tools, such as direct


response,PR, sales promotion, advertising, and packaging *
1

Strongly Disagree

Strongly Agree

Our company does a good job of internal marketing, informing


allareas of the organization about your brand's objectives and
marketing programs. *
1

Strongly Disagree

Strongly Agree

We regularly review your marketing plan to ensure relevance and


consistency of your brand messages and strategic brand
positioning. *
1

Strongly Disagree

Strongly Agree

The stated objective of our brand's marketing communication


program is to create and maintain profitable relationships with
customers and other stakeholders by ensuring consistency in all
messages sent to these groups. *
1

Strongly Disagree

Strongly Agree

The likelihood that consumers perceive our companys products as


reliable and of good quality is high*

THE ANTECEDENTS AND CONSEQUENCES OF IMC

66

Strongly Disagree

Strongly Agree

Consumers consider our companys products to be their first


choice *
1

Strongly Disagree

Strongly Agree

Consumers can recognize our brands among other competing


brands *
1

Strongly Disagree

Strongly Agree

Consumers can quickly recall the symbol and logo of our brand *
1

Strongly Disagree

Strongly Agree

Purchasing or using our brand will increase our companys sales


growth *
1

Strongly Disagree

Strongly Agree

Purchasing or using our brand will increase our companys market


share *
1

THE ANTECEDENTS AND CONSEQUENCES OF IMC

67

Strongly Disagree

Strongly Agree

Purchasing or using our brand will increase our companys


profitability *
1

Strongly Disagree

Strongly Agree

Purchasing or using our brand will increase our companys overall


performance *
1

Strongly Disagree

Strongly Agree

Our Organization has established clear business goals related to


customer acquisition, development, & retention *
1

Strongly Disagree

Strongly Agree

Our Organization has the sales & marketing expertise and


resources to succeed in CRM *
1

Strongly Disagree

Strongly Agree

Employee performance is measured and rewarded based on


meeting customer needs and on successfully serving the customer *
1

THE ANTECEDENTS AND CONSEQUENCES OF IMC

68

Strongly Disagree

Strongly Agree

Our Organization does not commit time and resources in


managing customer relationships *
1

Strongly Disagree

Strongly Agree

Our employee training programs are designed to develop the skills


required for acquiring and deepening customer relationships *
1

Strongly Disagree

Strongly Agree

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