Impact of Integrated Marketing Communications on the Companies’ Sales Performance

Impact of Integrated Marketing Communications on the Companies’ Sales Performance.

ABSTRACT

The Integrated Marketing Communications (IMC) concept has been largely regarded as an important marketing management issue.

This is because to survive in the competitive marketing environment of today many companies try to adopt IMC to improve the management and integration of the marketing communication programmes.

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 generally accepted definition and common understanding of the whole concept.

While some marketing managers are aware that marketing communications is an important resource of their business performance, others are very ignorant of the efficacy and prospects inherent in its application for effective business performance.

This study therefore examined the relationship between Integrated Marketing Communications and companies’ sales and profits; examined the IMC tools commonly used by the selected companies under study in boosting their sales performance

Established how Integrated Marketing Communications save time, money and stress; found out the indicators the marketing executives and managers use in measuring the effectiveness of overall IMC programmes.

The study had a population of Eight hundred and three staff of the five selected companies, out of which a sample size of 267 top management officers was determined using Taro Yamane formula.

The top management staff and middle managers were used because they have the adequate and relevant knowledge of the subject matter.

The study made use of primary and secondary data. A total number of 267 copies of the questionnaire were distributed while 240 copies were collected.

The descriptive research design was adopted for the study. Content validity and test-retest of reliability was done with coefficient of 0.96 indicating high degree of consistency. Four hypotheses were tested using Pearson’s Product Moment Correlation Coefficient, Chi-Square (X2) and Z-test statistical tools.

The result of the analysis revealed that there was significant relationship between Integrated Marketing Communications and companies’ sales and profits. The study further showed that Integrated Marketing Communications save time, money and stress.

Also the result revealed that there were suitable indicators such as sales growth, market share growth, profitability, sales income, price premiums, brand awareness, channel cooperation, customers’ satisfaction, brand loyalty among others, the marketing executives and managers used in measuring the effectiveness of overall IMC programmes.

It is concluded that IMC is more than the coordination of companies’ outgoing message between different media. To this end, the study recommended that firms should develop their IMC programmes in association with changes in order to cover the gaps created by changes.

TABLE OF CONTENTS

Title page = = = = = = = = i
Certification = = = = = = = = ii
Approval = = = = = = = = iii
Dedication = = = = = = = = iv
Acknowledgement = = = = = = = v
Abstract = = = = = = = = vi
Table of Contents = = = = = = = vii
List of Tables = = = = = = = = x
List of Figures = = = = = = = = xi

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study = = = = = 1
1.2 Statement of the Problem = = = = = 2
1.3 Objectives of the Study = = = = = 3
1.4 Research Questions = = = = = = 4
1.5 Research Hypotheses = = = = = = 4
1.6 Significance of the Study = = = = = 4
1.7 Scope of the Study = = = = = = 5
1.8 Limitations of the Study = = = = = 5
1.9 Profiles of the Selected Companies = = = = 6
1.10 Definition of Terms = = = = = = 13

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction = = = = = = = 17
2.2 Evolution of Integrated Marketing Communications = 17
2.3 Definitions of Integrated Marketing Communications = 18
2.4 Reasons for the Growing Importance of Integrated Marketing Communications  22
2.5 Tools of Integrated Marketing Communications = = 25
2.6 Features of Integrated Marketing Communications = = 35
2.7 The Messages of Integrated Marketing Communications = 37
2.8 Benefits of Integrated Marketing Communications = = 44
2.9 Performances and Measurement of Integrated Marketing Communications 46
2.10 Evaluation of Integrated Marketing Communications = 49
2.11 Components of Integrated of Marketing Communications = 50
2.12 Sales = = = = = = 51
2.13 Effect of Integrated Marketing Communications on Organizational Performance= 64
References

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction = = = = = = = 70
3.2 Research Design = = = = = = 70
3.3 Sources of Data = = = = = = 70
3.4 Population of the Study = = = = = 71
3.5 Sampling Procedure = = = = = = 71
3.6 Sample Size Determination = = = = = 72
3.7 Validity and Reliability of Instruments = = = 75
3.8 Data Treatment Techniques = = = = = 76

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction = = = = = = = 78
4.2 Questionnaire Distribution = = = = = 78
4.3 Analysis of Questionnaire = = = = = 78
4.4 Test of Hypotheses = = = = = = 85
4.5 Discussion of Results = = = = = = 90

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction = = = = = = = 93
5.2 Summary of Findings = = = = = 93
5.3 Conclusion = = = = = = = 94
5.4 Recommendations = = = = = = 95
5.5 Contribution to Knowledge = = = = = 95
5.6 Future Research = = = = = = 99
Bibliography
Appendix

INTRODUCTION

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).

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