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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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The research is based on Internet tools and its impact on direct or traditional marketing and especially on Marketing communications (The 4th P i.e. Promotions) and how the internet or digital media is cost-effective compared to broadcast and print media. It commences with a brief history of conventional marketing when the world was not introduced to the digital technologies and how it has affected all the business and services. How it has turned the world into a global village and what are impacts on the 4P's of marketing i.e. product, place, price and promotion. This an effort to sum up all the known factors that will give insight to pertaining questions of the research being undertaken that is further mentioned in this research proposal.

With the digital technologies enhancing on a regular basis, As a matter of fact, the way companies brand their products and services is also getting altered. This research also aims to explain about the internet and social media platforms and how it is helpful in providing customer experience and improves marketing communications.

A detailed study in improving promotions through internet marketing techniques is also an integral part of this research proposal as there is an effort to look how in a steady manner, the internet is becoming a trend for most of the successful businesses to promote their products and services.

 History of Traditional Marketing:-

The history of marketing can be segmented as-

(Baines, Fill, Page 2013).

Production Period (1890-1920)-The production period was the early characters that begin the marketing and laid more emphasis on producing goods in quantity when demand was more than supply. The completion was quite less with product range was limited. It was a benchmark after the industrial revolution took place.

Sales Period (1920-1950s)-After the First World War the period of personal selling came into existence. As People became more aware and gained knowledge about Advertising and marketing research.

Marketing Period (1950s-80s) - When the competition in the market increased after the Second World War, the focus shifted towards customer's needs and requisites. Now companies were more consumer-centric than before

Social media Period(the 1980s- present)-With the advent of technologies and Information age, the focus is now more inclined to ethical and social concerns, the term “digital” or “communication”

Or “web” is more often used with marketing. We can see it changing regularly from Advertising to branding, e-commerce to digital marketing.  

The Reinvention of Marketing mix (4p's)-

The market branding is a discipline that was initially used proctor and gamble to successfully distinguish themselves from their competitors.

When we talk about the term “marketing mix” that was claimed by Borden (1965),

That often refers to the 4 P's i.e. Product, Price, Place, and Promotion. It has been impacted by digital platform and technologies.

Marketing is reinvented with the digital platforms (Rucinski 2015). It acts as the main force behind user experience, Customer service and is an integral part of IT, Product life cycles, public relations and much more. The combined power of customer expectations, technical innovation, channels, and shifting contents has redefined the 4 Ps of the marketing mix. Every organization today has shifted to these changes and is active on the digital platforms. There are a lot of impacts with the rise digital tools and social media age on the marketing mix:-

Product-   The main element of marketing mix has turned product more into the presentation.

The digital market plan has been adopted by successful businesses worldwide for their products.

Place- The place in terms of marketing mix refers to identifying where marketplace and customers but the Omni channel experience with the rise of smartphones has changed the term place more into presence.

Price- The price is another important marketing mix which is now been influenced by the payment gateway models and by improving customer affinity and experience a service can justify the price as the premise.

Promotion- The term “promotion” which has now become marketing communication with the use digital platforms is directional to customers and has reinvented it into “Personalization” and the way it is managed that is further discussed in this research proposal.

Marketing Communications –

When we talk about promotions in this digital and social media age we supposedly call it marketing communications that have broadened the horizon how companies promote their products and services. Every coin has two faces; on one face it has made the communication with a large number of audience in less time, however, the other side of the coin is that these platforms are also available readily to your competitors that have made it a tough task to maintain the loyalty of the customers and premium pricing. There has been a paradigm shift from mass media to social and digital media.

The definition offered by Fill (2011) for marketing communications is based on concerns like audiences, engagement, and conversation where the audience are central and to create encouragement in engaging them in conversations.

Managing marketing communications has been impacted with the platforms of digital media and the right mix of tools like advertising, sales promotion, public relations (PR), direct marketing and personal selling (Fill, Baines, Page 2013) can play an important role to channel marketing campaign.

There are six main classes of media; Broadcast, Print, outdoor, digital media, In-Store and others like cinema, exhibitions, product placement etc.

The research proposal is more concerned about digital media especially internet and its advantages over traditional mass media tools like television, radio and newspapers so to narrow down the author insist on brief outlining of internet and print and broadcast media classes further.


Internet, Broadcast and Print Media and Cost-effectiveness of Internet

The advance in technology has made all products and services virtually exist across the World Wide Web (www). With the launch of Web 2.0 and social media websites like Facebook, YouTube, Instagram and LinkedIn, The trend is to be active on the social media as it can generate a good amount of traffic and if any organization is active on these platforms it helps to create brand awareness and loyalty, customer satisfaction. It also helps to improve search engine rankings, generate more inbound traffic, improve conversion rates, gain market insight and thought leadership. (Blue fountain media, 2017)

Every company has dedicated websites and blog posting links and channels today. The email marketing and internet advertising through cost-through rate and CPC (cost per click) and Search engine marketing (SEM) has taken over the traditional mass marketing tools like Broadcasting and print media as Internet

Marketing has emerged as a cost-effective tool and helps to create E-Wom (Pawar 2014).

The Electronic word-of-mouth is long-lived and is more effective as 70 % of internet users claim to trust it (Dye 2000) and helps in viral marketing.

If we consider a publishing plan on the famous English newspaper “The Times of India”, the cost for a month's plan is 50,000 INR which is valid for a month and it includes two days in a week and eight times in a month. However the cost of putting a website on air is only 15,000 INR and additionally a company can spend 5,000 INR on search engine marketing and 10,000 INR for managing social media platforms and blog posting links or either they can choose cost per click (CPC) plan on Google Ad words which will still be cheaper than print media and the longevity of their marketing communication is still beholden.

Internet's Role in knowing customer behavior-

The role of internet to understand customer behavior is all about more interaction and analyzing the data. Online tools like emails, forms and comments helps to get the feedback. This provides a fair idea of how you can mold your marketing strategies as it can provide a clear picture.

The analytics and key metrics are also an add-on to get insight on how consumer perceives the services and how satisfied they are while experiencing it. The studies show that 67% purchases

Are impacted by online reviews and 28% of customers use social media websites to decide what they buy (Erwin 2015). So it is important to understand how the internet is changing the customer behavior and is providing cost-effective solution to all businesses and finding out how it is beneficiary is the contribution of the author.  

 Literature Review  

This chapter aims at exploring in-depth information on major domains of the research topic by reviewing past researchers, book, and related articles. Contemporary studies and past theories concerning these domains are obtainable. Mentioned theories will be the foundation for the research since the major domains of research topic the impact of the internet on marketing communication and cost-effectiveness. The review of literature will revolve around these.

Dhaiya.R, 2017. The current study seeks the effect of digital marketing communication on consumer buying decision process in Indian passenger car market. The Diverse methodology was implemented for the study. Primary data was gathered from 784 respondents from ‘Delhi' using region wise proportionate sampling. One sample Wilcoxon Signed Rank, one sample binomial test and chi-square tests were as applied to test the level of significance. The study concluded that 75% of the respondents consider at least one digital channel of communication for purchasing a car. ‘Website' was the most preferred digital channel of communication while buying a car followed by ‘social networking sites' and ‘smartphones'. The results of the study show that digital marketing communication is capable of triggering need recognition with involvement product purchase like the car. The results also confirm that consumer's shows optimistic behavior towards digital communication, and get precious from other customers' reviews and openly communicate their post-purchase feelings over digital platforms. However, the study also confirmed that even though customers appreciate the practice of digital channels throughout their decision-making journey, and still they don't book a car online

Sue Yasav (2015) article review -The impact of digital technology on user buy behavior.  The trade commerce is going throughout a major alteration, according to a study by Synchrony Financial. The makeover is motivated by the influence of digital technology over shopping experience. According to the third yearly Digital Consumer Study, almost 50% of customers executed all purchasing associated tasks on their cell phones in the past three-four months. Customers acknowledge the digital technology for exploring, surf and buy, occasionally all over one website. As an outcome, many vendors have used an innovative approach to pull towards and hold on Omni channel shopper. Various policies include approachable website design, delivery offers, cell phone alerts and other marketing.

Sasu and Ichim (2016) Qualitative Analysis of the Digital Marketing Influence on the Behavior of the Organizational Consumer. The present study tries to comprehend the behavior of the organizational consumers in the online environment. They attempted to identify particular actions undertaken in the online acquisition process by the people responsible for purchasing within the companies cited in Iasi district (Romania). The outcome attains within this investigation, taking a sample of 15 people, illustrate that the internet is utilized particularly for notifying and placing the orders, and fewer for the actual payment and contacting of the potential dealer.

Kaplan (2010) define social media study as ―a collection of Internet-based use that assembles on the principles and technical fundamentals of Web 2.0, which assist the design and replace of consumer-generated substance. It consists of varied Internet sources such as some personal blogs, public network site, mutual assignment, and other social worlds. Russell S. Winer (2009) confirm that a lot of business at present is adopting all innovative medium to expand aimed operation that can reach particular fragment and connect to their consumers to a larger area as compared to the habitual and fundamental medium.

Research questions

Research question #1 I am working on impacts of the internet on marketing communication as I want to find out why the internet is a cost-effective tool for promoting products than broadcast or print media like newspapers, TV or Radio?

The use of internet is widespread in this digital age as more cost-effective solution than traditional mass media tools like radio, TV, and newspapers and even local business has been influenced and paying more attention to websites and social media platforms like Facebook, YouTube and search engines to develop e-word of mouth and generate ROI through investing on internet tools.   

Research question#2   I am working on internet's impact on marketing communications as I want to find out how the internet is more effective to study customer behavior than the usual concept of promotion?

The conceptual framework of the marketing mix is unable to outline customer behavior as it considers the customer as passive and does not allow interaction or build relationships. However

Digital media has been successful to narrow the gap between the producer and consumer and is playing a major role in identifying customer perceptions and communication and making it a more a personalized experience.

Research Methodologies

The research design for the study will be used is a blend of exploratory and explanatory questions and follows a deductive approach as it helps the investigator to provide answers to various kinds of internet communication with customers and cost-effectiveness of digital media over traditional ways of promotion. A rationale thinking approach is devised to generate ideas by examining research author's own thinking and interests by looking past literature reviews and scanning the media and looking at past project titles.

The study requires examining the substantial amount of data with ease of access to adopt a clear theoretical position that needs to test with reference to most recent, rationale and authentic scales to measure the qualitative-based research questions.

The author of this research proposal will be using non-probability research approaches like Sampling that will be self-selection, purposive, convenience and snowball techniques according to the underlying research questions and aims. The investigation will also include primary and secondary data sources like e-questionnaire based on internet and intranet mediation, written and non-written materials and other multiple sources like books, journals, and reports.

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