Research proposal: Technological advancements and its impact on marketing communication mix in the UK retail sector

1.0 Background

Marketing communication mix outlines the elements that organisations make use of in their effort to ensure that consumers are not only aware of their products but they also make the decision to purchase such products (Clow, 2010). The success of the marketing communication process depends on the elements of the communication mix used and the proportions of each element. A typical marketing communication mix includes advertising, personal selling, direct marketing, public relations and sales promotion (Homburg, 2009). With advancements in technology, many of the elements are applied creatively using the emerging technologies to yield the greatest benefit. For instance, direct marketing which had traditionally been done by posting snail mails to consumers’ mail boxes can be done with be done by posting messages to consumers’ emails (Alvarez, Martin and Casielles, 2007). The same could also be done by sending short messages to mobile phones of targeted consumers.

Researchers have also been of the opinion that technological developments help in more accurate design of the communications mix (Mullins, 2010). With the growing popularity of the internet, more and more consumers use the internet as their primary source of information. In the course of conducting the enquiries, such consumers submit their personal information such as email addresses and this information is captured and used at a later point to analyse their preferences and market products as appropriate (Dominici, 2009). Technological advancements also extend to the internal operations of organisations where marketing systems can be coordinated more accurately and in a manner that yields synergy. The concept of integrated marketing communication is becoming more popular in recent years with the underlying emphasis being on ensuring that all communication mix elements send out the same messages; or at least messages that reinforce each other. 

The influence of technology also extends to consumer behaviour and preference as far as communication is concerned. For instance, the internet and readily available information has created a new profile of consumers who tend to be keen on details and this prompts marketers to ensure that their communiqués detailed (Dominici, 2009). The growing use of the social media also influences the marketing mix with advertisements and public relations exercises appearing to be leaning more and more towards the use of the internet. UK retailers have been affected in view of the fact that the UK economy is among the most technologically advanced economies in the world. These technological developments are bound to have an impact on the marketing communication strategies and this forms the basis for this research proposal.

2.0 Aims and objectives

This research aims at establishing the impact of technological advancements on the marketing communications mix in the UK retail sector. The impact of technological advancements shall be explored in relation to each of the communication mix elements and in relation to the proportionate distribution of the marketing budget across the elements. Also to be considered shall be the determination of the effectiveness of the elements in question. The specific objectives of the research shall therefore be as follows:

·         To highlight key technological changes that are relevant to the marketing communication processes

·         To determine how such technological processes impact consumer behaviour

·         To establish how each element of the marketing communication mix is likely to be influenced by the technological advancements

·         To establish how technology influences the overall design of the marketing communication process in terms of the decision on the proportions of the communications mix to use at any particular point.

2.1 Rationale of the study

Technological advancements affect most aspects of business ranging from supply chains, internal operations, product development strategies and even marketing communication systems. Whereas numerous studies have been conducted on the impact of the internet on marketing communication, the bulk of the studies have been dedicated towards monitoring the extent to which advertisement revenues in the sector have grown and in the examination of emerging marketing trends in relation to viral marketing and the use of social sites. There has been little focus on the entire marketing communication mix and specifically on the market communication mix in the UK retail sector. This research bridges this gap in the body of knowledge.

3.0 Literature review

There have been technological advancements that can impact the marketing communication processes in the modern economy. To begin with communication technologies have been advancing at a high rate. The entry of the internet in the 1990s and its subsequent popularity in the 2000s has turned the internet into the basic mode of communication (Dominici, 2009). This has been reinforced by the introduction of cheaper but efficient computers which allow consumers to access the internet with ease. Research indicates that over 90% of consumers in the UK have access to the internet with comparative figures from Canada placing the percentage at about 95% (Haque and Joshi, 2011). Further technological developments have seen most mobile phone producers convert their products into minicomputers with the ability to conduct any functions online that any other computer would be able to. The advancements also extend to systems usable by organisations. For instance, organisations are now able to establish intranets and data analysis systems that enable them to make sense of data collected from enquiries made by consumers (Haque and Joshi, 2011).). These systems are also useful in efforts of determining what elements of the marketing communication mix yield the greatest results. Previous studies have indicated that Tesco stands among the organisations that have been able to refine the targets for their direct marketing endeavours using enquiries made in a manner that ensures effectiveness (Seric and Gil-Saura, 2011). This calls for greater focus on the elements of the marketing communication mix and how they are impacted by technological advancements.

The marketing communication mix is an integral part of marketing and it determines how successful an organisation can be in its marketing endeavours. This mix includes a number of elements which include advertising, direct marketing, personal selling, public relations, and sales promotions (Andersen, 2001). Focus on the marketing mix should be connected to the concept of integrated marketing communication, a philosophy that calls for synergy in the execution of the marketing communication mix (Andersen, 2001). This concept calls for a focused approach where the messages sent through the different channels are consistent and designed to reinforce each other. The different elements of the marketing communications mix as outlined in the subsequent sections.

Advertising refers to sponsored messages sent to a large audience through various media (Constanides, 2006). The traditional channels for advertisements include televisions, radios, print media and outdoor advertisement media. The entry of communication technologies have seen an expansion of the channels available for advertisement with the internet being among the fastest growing channels for advertisements (Carpenter, 2007; Barney, 2010). The internet makes it easy for the cost of advertisement to be reduced as it has been proven to be relatively cheaper than the traditional models. In most online advertisement agencies, the advertisers have the option of choosing to be charged based on the number of clicks their advertisements attract; and this makes the advertisements more effective in light of the fact that those who click on the advertisements are likely to be interested in what is on offer (Seric and Gil-Saura, 2011).  

Direct marketing excludes the use of marketing agencies as is common with advertisements and endeavours to reach out directly to customers (Hartley and Pickton, 1999). The use of direct mails, coupons, inserts and catalogues are among the most common methods used in direct marketing. Prior to the entry of the internet and mobile telephone communication, direct mails would be distributed through the strenuous post systems (Eagle, Kitchen and Bulmer, 2007). The targeting would be done based on intelligent guesses where persons expected to be interested in products would be contacted in their private boxes. With the entry of the internet, this element of the marketing communications mix is mainly done using emails (Seric and Gil-Saura, 2011). Emails are much cheaper to use. Companies are able to capture email information from enquiries made by consumers and analysed based on the nature of enquiries made to determine what products they would be interested in and how best to communicate with them. For instance, research indicates that Tesco plc has effected a system that enables them to anticipate consumer needs and send out marketing messages on email to the persons identified (Haque and Joshi, 2011). One good example where such a system would be effective would be in the case of people purchasing products for toddlers. It is reasonable to assume that a person buying milk formula for a six month old baby is likely to need toys and babies’ clothes. It would therefore be wise to capture email addresses of such persons and stimulate demand for such items.

Direct marketing can also be done through the use of coupons and inserts. These could be distributed through dailies and through the internet. The growing popularity of the internet has seen organisations in the UK and the US embrace the use of online coupons (Seric and Gil-Saura, 2011). Online distribution is efficient, less costly and easily accessible to consumers (Leppanieni and Karjaluoto, 2005). Consumers in the market are also on a constant lookout for coupons with research in the practices in the retail sector in the US indicating that the use of coupons is increasingly becoming common where organisations offer the coupons to avoid being outsmarted by their competitors in the industry (Seric and Gil-Saura, 2011). Direct marketing enables the establishment of a relationship with a large number of customers. However, tools such as the use of emails should be used with caution as spamming and junk mails are generally despised by most consumers. Technological advancements have also made it possible for organisations to use the short messaging technology where carefully choreographed messages can be sent directly to the mobile phones of consumers in the market (Dominici, 2009). This technique has been found to be quite useful even where direct marketing is not concerned. For instance, the companies that were responsible for the milk scandal in China in 2008 are known to have used short messages to consumers’ mobile phones to apologise; a move that was seen as crucial in securing the fading customer confidence (Dominici, 2009).

Personal selling is believed to be the most expensive element of the marketing communication mix on the per-head basis. It tends to be used more commonly among the small retailers with the larger retailers tending to use very little of it. For instance, statistics on the giant retailer’s in the US reveal that large industry players such as Walmart tended to have less than 5% of their marketing communications as personal selling (Gurau, 2008). Technological advancements have made this model less rewarding with the creative forms of the element being directed towards distributors and specialised retailers who can then recommend the products to those within their spheres of influence.

Other examples of the impact of technology on the marketing communications mix include the use of social sites and viral marketing for both advertisements and public relations (Warren, 2009). The internet allows for candid discussions to be held online and where the persons involved give positive feedbacks, the companies in question tend to gain substantially. As marketing management experts would advise, there is no fixed formula on how the elements of the marketing communication mix should be combined (Sherman, 2006). Such combinations depend on the perceived characteristics of the consumers and on assessed impact of the models settled on. Technological advancements help in these monitoring processes and help in determining with accuracy how the elements can be combined to yield the greatest advantage for the organisations (Kitchen, 2004). Technology also helps in enforcing the concept of integrated marketing communication through the establishment of highly efficient communication systems that help in simulation and generation marketing messages that create synergy and produce the greatest impact in the market.

4.0 Methodology

4.1 Research philosophy

Research philosophy provides guidance on the underlying perspectives and general approach to be adopted in a research (Chia, 2002). Reflection on the research philosophy helps in enhancing consistency and this in turn helps in ensuring that the research findings and conclusions are accurate. This is done by ensuring the alignment of the research methodology, analysis and interpretation of the findings. The main research philosophies in existence include the positivist, constructionist, and the realist perspectives (Chia, 2002). The positivist approach presumes the existence of an objective world where relationships between phenomena can be quantified and be proven using statistical approaches (Mayor and Blackmon, 2005). This philosophy is most applicable where the research involves the proving of hypotheses.

The constructionist philosophy on the other hand presumes that realities are relative. It denies the existence of an objective world and emphasises the fact that people’s experiences and their interaction with the society shape their understanding of issues (Mayor and Blackmon, 2005). This philosophy is most applicable where the subject of the research is mainly subjective. For instance, the philosophy would be applicable where the opinions of the society on a certain phenomenon are being determined. The realist philosophy on the other hand acknowledges the arguments of the realist and constructionist philosophies and emphasises that objective relationships exist in conjunction with the subjective understanding of the members of the society (Saunders, Lewis and Thornhill, 2007).  The determination of how technology impacts the marketing communication mix is an endeavour that is bound to determine the objective relationship between technology and the marketing practices as well as the perceptions of the market players. The research shall therefore adopt the realist philosophy in its approach. This implies the need to focus on both qualitative and quantitative data collection methods.

Considerations on the philosophical approach involve the determination on whether to adopt the inductive or deductive approaches. The inductive approach moves from observations or the specifics to the general aspects. It uses observations to develop broader theories (Mayor and Blackmon, 2005). The deductive approach on the other hand starts from the broader bases and seeks to confirm the known theories using observations (Mayor and Blackmon, 2005). This research seeks to use observations as the basis for drawing conclusions on broader theory hence this paper adopts the inductive approach.  

4.2 Research strategy

Research strategy outlines the approach taken to ensure delivery on the research objectives set. The strategy takes into account the nature of research and makes a determination on the choice of population and sample to be engaged (Easterby-Smith, Thorpe and Jackson, 2008). These elements largely determine the accuracy of the information to be collected. For instance, this research investigates the marketing communications mix in the UK retail sector and it therefore makes sense that the population of the research should be persons involved in the marketing exercises. Research strategy also focuses on the data collection methods and determines how best the data collection instruments are to be structured.

To ensure the accuracy of the information gathered, the research shall settle on the players in marketing in the retail sector as the population of the study. The report shall focus on the marketing teams of the leading supermarkets as well as marketing agencies that serve the retail sector and other industries in the UK. The sample of study shall be 150 with 75 drawn from each section of the population. Sampling shall be judgemental. Judgmental sampling gives the researcher the advantage of ensuring that the sources of information are as credible as possible (Easterby-Smith, Thorpe and Jackson, 2008). This helps in assuring the accuracy and reliability of the research findings. On the other side, judgmental sampling exposes the research to researcher bias. By directly influencing the sample, the researcher stands the risk of ignoring crucial sources of information due to bias (Easterby-Smith, Thorpe and Jackson, 2008). A preliminary exercise shall be conducted to determine the specific members of the population after which the researcher shall pick out the sample based on the determination of the depth of knowledge such respondents. Efforts shall be made to minimise any influence of bias in the determination of the sample.

The research shall embrace both primary and secondary research. Primary research collects information directly from the population of study while secondary data collects information from related studies. Whereas primary data shall be collected using semi structured questionnaires, secondary data shall be sourced from previous academic publications, industry publications and journals, company websites and other reliable online sources of information.

4.3 Research methods

Research methods describe the approaches to be adopted for data collection, analysis and interpretation. Collection methods can either be qualitative or quantitative. Quantitative data captures figures, ratios and percentages with the collection methods mainly being structured questionnaires (Eriksson and Kavalainen, 2008). This method of data collection has the disadvantage of being very restrictive in the sense that respondents can only chose responses from the options given (Easterby-Smith, Thorpe and Jackson, 2008). This restricted approach helps in enhancing the ease analysis and this allows for the consideration of much larger samples. Qualitative methods on the other hand focus on capturing the perceptions of individuals (Chia, 2002). They allow ventilation on issues and even allow for introduction of new information by the respondents. Open ended questionnaires and interviews tend to be quite effective in the collection of qualitative data.

This research shall make use of semi-structured questionnaires in data collection. Written questionnaires provide the researcher with the advantage of capturing information in a permanent form (Chia, 2002). Initial contact shall be established with the respondents upon which their consent to participate in the research shall be obtained. The questionnaires shall be distributed and collected using emails. Emails are less costly and fast. The data collected shall be analysed accordingly and findings recorded in a systematic manner.  

4.4 Limitations

The researcher lacks personal contact with the target respondents of the research. This may lead to a situation where the response rate is low with some of the respondents failing to attend to the questionnaires presented to them. Given that this handicap may be difficult to overcome, extra questionnaires shall be distributed. The researcher shall distribute over 200 questionnaires out of which the 150 that will have been comprehensively answered will be used for analysis. The researcher shall also increase the number of communications with respondents in order to encourage them to remain committed and provide the completed questionnaires within the time allocated. The research largely depends on the per

5.0 Time plan

The research shall be conducted and concluded with 12 weeks. The main activities shall include preliminary literature review, determination of research topic, determination of methodology, initial contact with respondents, designing of questionnaires, distribution of questionnaires, collection of questionnaires, compilation of data collected, review of secondary data, preparation of draft report, final report writing, and submission. The activities will be sequenced as outlined in the Gantt Chart Below:

Activity

April

May

June

Wk 1

Wk2

Wk3

Wk4

Wk5

Wk6

Wk7

Wk8

Wk9

Wk10

Wk11

Wk12

preliminary literature review

determination of research topic

determination of methodology

initial contact with respondents

designing of questionnaires

distribution of questionnaires

collection of questionnaires

compilation of data collected

critical literature review

review of secondary data

preparation of draft report

final report writing

submission

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