THE IMPACT OF MARKETING COMMUNICATION ON PRODUCT DEVELOPMENT

THE IMPACT OF MARKETING COMMUNICATION ON PRODUCT DEVELOPMENT

CHAPTER ONE

1.0     INTRODUCTION

1.1 BACKGROUND STUDY

Any commercial organization, as well as other sorts of groups, needs to have effective communication. It is a factor that can ensure an organization’s continued existence. Understanding the ideas and factors that cross the minds of knowledgeable people or groups is aided by communication.
The process through which information is shared and interpreted by two or more individuals, typically with the intention of motivating or influencing behavior, is referred to as communication.
The flow of information from the sender to the recipient while taking into account a mutual understanding is another way to define communication.
Sannie (2006) defined communication as “the transmission, sharing, or exchange of ideas, knowledge, skills, etc. He added that dialogue is characterized as  the process of passing and receiving messages, instructions and or directives.

According to Sannie (2006), communication is the process of transferring and exchanging thoughts, sentiments, and information via realization, symbol, writing, and silence in order to foster mutual understanding between the communicator and the receiver.

A process by which one individual or a group shares and imparts information to another so that both parties fully comprehend one another is known as communication. Another way to describe it is as an exchange of information, thoughts, sentiments, or emotions between two or more animated objects. Every method through which a concept is shared or transmitted from one person to the other is likewise considered to be communication. A crucial component of any business interactions is communication. Inter-firm communication is found to primarily have positive effects on the relationship across research and circumstances because communication mediates critical relationship outcomes (Duncan and Moriarty, 1998). Communication impacts loyalty, trust, and satisfaction (Morgan and Hunt, 1994; Cannon and Perreault, 1999; Mohr and Sohi, 1995). (Scheer et al., 2009) Communication also functions as a way of relational governance that fosters affective engagement toward the business connection (Mohr et al., 1996).

It is generally thought that suppliers’ investments in longterm relationships pay off in the form of increased value for the customer, which, in turn, strengthens customers’ intentions to make future purchases from the same supplier (Hutchinsonet al., 2011). As for the objectives of customer retention (loyalty and future purchase intentions),it is crucial for the supplier to know the customer’s experience with perceived value as the ultimate relationship outcome (Sirdeshmukh et al., 2002). Future purchases are only attained if the customer is convinced about the supplier’s offering as the most valuable in the market. Despite the existing body of knowledge on interfirm communication, less is known about the role of marketing communications in business relationships

(Andersen, 2001), although communication is an essential element of a valuebased approach to relationships (Sharma et al., 2001). Marketing communications is suggested to have a mediating role in the transformation of perceived value into loyalty in its various forms, from attitudinal to behavioral elements (Gilliland and Johnston, 1997; Keller, 2009).

Having understood the fact that communication is the blood of any organization, and also an integrate part of marketing management, it is necessary for such tool (marketing communication) to be effectively guided inorder to achieve the marketing objectives .

Marketing communication can be defined as the promotional tools that favourably communicate information about the organization and its products to target market.

Marketing communication can also be defined as those promotional tools used in communicating favourably with the targeted market. Having known and understood the target market in the environment, it is therefore necessary to effectively select appropriate marketing tools that can be used in communicating with the target market inorder to achieve the marketing objectives of the organization.

Integrated marketing communication can be defined as the totality of the various communicational tools used in communicating an organization’s image and products with the target market. It is the combination of all promotional tools used in communicating effectively with the target audience.

Integrated marketing communication, according to Belch and Belch (2004), entails synchronizing the different promotional components and other marketing operations that depend on media advertising. As a result, it adds value by offering a thorough plan that assesses the strategic roles of several communication disciplines.

1.2   STATEMENT OF THE PROBLEM

How to maximize returns on investment and profit is the main concern of shareholders and management in a typical corporate organization. In order for a business to be lucrative, customers must be satisfied with their use of its products and services. The ability to increase a company’s sales to the point where revenue significantly exceeds expenses is what makes a customer base valuable.
This is difficult to accomplish since there are numerous obstacles the company must overcome, such as competition, a lack of suitable financing, the consumer’s income, perspective, and disposition, the quality of the goods and services, a lack of essential business facilities, etc.

But, in order to overcome these obstacles and increase its profitability, a business relies mostly on its marketing operations. This is so that marketing may establish a positive rapport with the customer, learn what he needs and how he needs it, inform and educate him about the products and services the business provides and how they can help him, and provide the product to him at the location, time, and cost he desires.

But, for a marketing effort to be successful and fulfill these objectives, it must be well-packaged. A corporation cannot just sit down and bundle marketing campaigns in the belief that they would achieve these goals.

Communication is one of the many elements that a marketing program needs to be successful.
The only way a business can relate to, comprehend, inform, and educate a consumer is through excellent communication. Also, the consumer will relate to, comprehend, and believe the organization through excellent communication. Consumers may misunderstand or be unaware of the company’s marketing objectives if a marketing program is for whatever reason not effectively communicated.
Without effective communication, it is wasteful to bundle a marketing program, and the marketing activity will fail. Also, it will provide rivals an edge over the business and often result in low returns and profitability.

1.3   OBJECTIVES OF THE STUDY

Examining the effect of marketing communication on product development is the main goal of this study. The goal’s general outline is as follows:

1. To evaluate the most widely used marketing communication method
2. To determine the best marketing communication strategy
3. To determine whether marketing communication aids in raising consumer awareness of a product.
4. To determine whether marketing communication affects consumers’ purchasing decisions.
5. To assess how marketing communications affect a product’s level of sales.
6. To find out if client preferences are influenced by marketing communications.

1.4  RESEARCH QUESTIONS

The following are the pertinent research questions connected to this study:

1. Which marketing communication tool is most widely used?
2. Which marketing communication tool is more effective?
3. Does marketing communication aid in raising consumer awareness of a product?
4. Does marketing communication affect consumers’ purchasing decisions?
5. How do marketing communications affect the volume of a product’s sales?
6. Does marketing communication affect consumers’ product preferences?

1.5     SIGNIFICANCE OF THE STUDY 

For businesses, their management, marketing divisions, educational institutions, and research facilities, the study of “The Influence of Marketing Communication on Product Development” will be of utmost significance.
With this study, it can be established whether or not marketing actions carried out by companies are genuinely valuable to their product sales and whether marketing programmes need to be thoroughly disseminated to create the proper impression on customers and the audience. By doing so, it will be feasible to evaluate the value of the money businesses spend on marketing and marketing communications.