Nottingham University Business School
A Marketing Research Proposal: A proposal study on the emergence, importance and application of integrated marketing communications within MNCs in Indonesia: a Muslim nation perspective Lawrence JD Ooi, 20 August 2010
Markets today are changing fast, price sensitive customers, new competitors, new distribution channels, new communication channels, the Internet, wireless commerce, globalization, deregulation, privatization and the list goes on. It is not only markets that are changing, but the technologies that support them, i.e. e‐commerce, email, mobile phones, online social networks, cable TV and etceteras. It is imperative that companies think through the revolution impact of these new technologies. Today’s major economic problem is overcapacity in most of the world’s industries. Overcapacity leads to hyper‐competition with too many products chasing too few customers. And most goods and services lack differentiation. Consequently marketers have had to change the ways they conduct their marketing communication activities toward a more holistic customer oriented and potentially customer controlled process. This process is called “Integrated Marketing Communications” (IMC in its abbreviated). IMC is a product of the late 20th century; its genesis can be traced directly to early academic work at the Medil School of Journalism, Northwestern University, led by Professor Don Schultz in early 1990s. The recession in the USA toward the end of the 1980s continuing into the 1990s, media fragmentation and expansion and massively accelerated technology developments, together with budgetary constraints, drove the corporate and marketing need to consider more integrated approaches and has, some 20 years later, brought about significant changes in marketing communications practices in the companies around the world. 2
Most research to date has focused upon large companies (i.e. national, international, multinational and global) and agencies (advertising and public relations agencies) that service their communications needs in the industrial advanced nations. Thus a gap in the literature has been that very few studies have been conducted in relation to the relevance, significance and meaning of IMC from the context of foreign companies or Multinational Companies (MNCs) in developing nations, and this despite the fact that the initial literature on IMC intimated that it was likely to be of greater relevance to international businesses, given their proximity to customers and their greater investment in relation to marketing communications in order to produce rapid returns on investment. MNCs often form the foreign direct investments in regional economies; the development of MNCs sectors in regional economies is an important element of political and public policy life. Therefore, the ways these MNCs tackle their marketing and marketing communications activities justify a detailed investigation. However, it is not possible to investigate the marketing and marketing communications activities of MNCs all over the developing nations, thus the scope of the project should be a single national economy. What is desirable here is a single nation which has a large proportion of its gross domestic product from MNCs activities and is preferably in a stage of significant economic growth. Indonesia appears to fit this description. Indonesia is the world’s 4th most populous country and has the world’s largest population of Muslim. It is the largest economy in Southeast Asia and is the emerging market economies of ...