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BUSINESS & MANAGEMENT STUDIES:
AN INTERNATIONAL JOURNAL
Published: 2020-09-25

ANALYSIS OF THE RELATIONSHIPS AMONG INTEGRATED MARKETING COMMUNICATIONS, FIRM PERFORMANCE (QUALITATIVE PERFORMANCE) AND BRAND PERFORMANCE

Asisst. Prof. Dr., Çanakkale Onsekiz Mart University
Marketing Communication Integrated Marketing Communications Firm Performance Brand Performance

Abstract

  1. 1. LITERATURE
    1.1. RESEARCH SUBJECT
    The subject of this study is to examine the effects of Integrated Marketing Communication (IMC) on firm performance (qualitative performance) and brand performance of the businesses. When examining the relevant literature, Reid (2002) investigated the relationship between the level of integration of the firms and brand-related performance and identified strong and significant relationships between them. Also, Luxton et al. (2017) investigated the relationships between integrated marketing communication and learning orientation, market orientation and brand orientation based on resource-based view, and found significant relationships between them. Similarly, Reid (2003) revealed that the integration of marketing communication positively affects the firm’s brand-related performance. IMC envisages all promotion mix elements to work in harmony and gains favours in creating the required image of the firm (Banerjee and Siddhanta, 2015: 610).
    1.2. RESEARCH PURPOSE AND IMPORTANCE
    Few empirical studies that prove the effects of IMC on firm performance and brand performance quantitatively can be mentioned. Significantly, the number of studies examining these relations is limited in Turkish literature. For this reason, in our study, the relationships between IMC, qualitative performance and brand performance were tested for small, medium and large enterprises operating in the tourism, energy, manufacturing and electronics sectors in Çanakkale Region.
    1.3. CONTRIBUTION OF THE ARTICLE TO THE LITERATURE
    IMC is applied on a large scale worldwide and is a customer-oriented approach rather than being an organisational-oriented practice that focuses on organisational requirements. It also has a considerable impact on organisational performance and brand equity. IMC is a way of seeing the communication functions as a whole which we see separately as advertising, public relations, sales promotion…etc. It is believed that our study will contribute to the literature, especially since the number of studies analysing these relations in Turkish literature is limited.
    2. DESIGN AND METHOD
    2.1. RESEARCH TYPE
    In this study, the relationship between IMC, firm performance and brand performance was investigated through survey technique utilising using a quantitative research method.
    2.2 RESEARCH PROBLEMS
    Determining how Integrated Marketing Communication affects firm performance and brand performance constitutes a research problem.
    2.3. DATA COLLECTION METHOD
    In our study, survey technique is used as a method of data collection. A comprehensive literature review was conducted in order to prepare the scales constituting the survey, and attention was paid to the fact that the mentioned scales were generally accepted in the foreign and Turkish literature. The data were collected from the participants by face-to-face interview method.
    2.4. QUANTITATIVE / QUALITATIVE ANALYSIS
    In the study, Partial Least Squares Structural Equation (SmartPLS) model was used to measure the relationships between dimensions. Integrated Marketing Communication dimensions was not dealt with in whole; each dimension was individually associated with the performance.

    2.5. RESEARCH HYPOTHESES
    The total number of hypothesis to be tested about the relationships is 13, and it is as specified below.
    H1: While the message consistency of business increases, the brand performance of the Business increases as well.
    H2: While the message consistency of the business increases, the qualitative performance of the Business increases as well.
    H3: While the qualitative performance of business increases, the brand performance increases as well.
    H4: Message consistency affects brand performance over the qualitative performance of the Business.
    H5: While the interaction behaviour of the business increases, the brand performance of the Business increases as well.
    H6: While the interaction behaviour of the business increases, the qualitative performance of the Business increases as well.
    H7: The interaction behaviour of the Business affects brand performance over the qualitative performance of the Business.
    H8: While the stakeholder-centred strategic focus increases in the Business, the brand performance of the Business increases as well.
    H9: While the stakeholder-centred strategic focus increases in the Business, the qualitative performance of the Business increases as well.
    H10: Stakeholder-centred strategic focus in the Business affects brand performance through the qualitative performance of the Business.
    H11: While organisational alignment increases in the Business, the brand performance of the Business increases as well.
    H12: While organisational alignment increases in the Business, the qualitative performance of the Business increases as well.
    H13: Organisational alignment in the Business affects brand performance through the qualitative performance of the Business.
    3. FINDINGS AND DISCUSSION
    3.1. FINDINGS as a RESULT of ANALYSIS
    In the study, the model for determining the effect of message consistency (M.T.), firm performance (qualitative performance) and brand performance, which is the first dimension of the IMC, was tested primarily. One unit increase in message consistency increases the qualitative performance of the Business by 0,563 units. One increase in message consistency increases the brand performance of the Business by 0,259 units. It was determined that one unit increase in the qualitative performance of the Business increased the firm’s brand performance by 0,338 units, and message consistency variable increased brand performance over qualitative performance. Secondly, the model was tested to determine its effect on Interaction (INT), Qualitative performance (Q.P.) and Brand performance (B.P.). In conclusions, an increase in the interaction variable increases the brand performance of the Business by 0,176 units, but this increase was not found statistically significant. A one-unit increase in the interaction variable increases the qualitative performance of the Business by 0,646. The interaction variable increases brand performance over qualitative performance. In the research, the third variable was the stakeholder-centred strategic focus. Namely, the model for determining its impact on stakeholdership (S), qualitative performance (Q.P.) and brand performance (B.P.) was tested. One unit increase in the stakeholder variable increases the brand performance of the Business by 0,288 units. This increase is statistically significant. A one-unit increase in the stakeholdership variable increases the qualitative performance of the Business by 0,646 units, and this increase is statistically significant. Finally, the stakeholdership variable increases brand performance over the qualitative performance of the Business, and this increase is statistically significant. Finally, the model was tested to determine the effect of the organisational alignment (O.A.) variable on qualitative performance (Q.P.) and brand performance (B.P.) of the Business. One-unit increase taking place in organisational alignment variable increases brand performance by 0,225 units, and this increase was found statistically significant. A one-unit increase in the organisational alignment variable increases the qualitative performance of the Business by 0,709 units, and this increase is deemed significant. Organisational alignment variable affects brand performance by 0,233 units over the qualitative performance of the Business.
    3.2. HYPOTHESIS TEST RESULTS
    H1, H2, H3, H4, H6, H7, H8, H9, H10, H11, H12, H13 hypotheses were supported, while, the H5 hypothesis was not supported.
    3.3. DISCUSSING the FINDINGS with the LITERATURE
    Low (2000) found a high-level correlation between IMC practices and market performance, sales and profits. Onditi et al. (2014) found that sales promotion, advertising, personal sales and direct marketing affect sales performance. In the study conducted by Ebren (2006), the relationship between the IMC program and firm performance was tested, and it was concluded that there was a positive and significant relationship between them. Patricia et al. (2017) investigated the relationship between IMC and performance in their study and found that IMC has a significant effect on business performance. Similarly, Kihanya (2013) examined the effects of IMC on business performance and concluded that IMC applications had a positive effect on the performance of the Business. In the study conducted by Reid (2005), a high-level relationship was found between IMC and organisational performance. Çalık (2014) concluded that there are significant relationships between IMC and brand performance.
    On the other hand, Korkut et al. (2005) determined that IMC has a positive effect on firm performance. In their studies, Luxton et al. (2015) investigated the effects of integrated marketing communication capability on the effectiveness of communication campaigns and brand performance. Findings demonstrate that IMC capability has a significant direct effect on campaign effectiveness and has a significant and indirect effect on the brand’s market-based performance. In conclusion, the findings of all these studies are consistent with those of our study.
    4. CONCLUSION, RECOMMENDATION AND LIMITATIONS
    4.1. RESULTS of the ARTICLE
    There is a significant and positive relationship between message consistency and qualitative performance, while there is a significant and positive relationship between message consistency and brand performance. Also, the message consistency variable increases brand performance over qualitative performance. Also, the interaction dimension affects brand performance and qualitative performance in a significant and positive manner. The stakeholder-centred strategic focus dimension significantly and positively affects brand performance and qualitative performance. The stakeholder variable significantly increases brand performance over the qualitative performance of the Business. Finally, the organisational alignment dimension significantly increases brand performance. Likewise, it affects qualitative performance significantly. Organisational alignment dimension positively affects brand performance over the qualitative performance of the Business.
    4.2. SUGGESTIONS BASED on RESULTS
    In future studies, relationships between different variables can be explored through integrated marketing communication in different sectors and samplings, and also, longitudinal studies can be conducted.
    4.3. LIMITATIONS of the ARTICLE
    In the study, a total of 127 questionnaire feedbacks were obtained. The fact that this number is low can be considered as a limitation of the study. Because the large-scale businesses being reluctant to answer the surveys and maintaining the same attitude when being contacted about the surveys caused this number to below.The fact that the research is conducted in a single sample and that it is not longitudinal can be considered as other limitations of the study.

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How to Cite

AYAS, N. (2020). ANALYSIS OF THE RELATIONSHIPS AMONG INTEGRATED MARKETING COMMUNICATIONS, FIRM PERFORMANCE (QUALITATIVE PERFORMANCE) AND BRAND PERFORMANCE. Business & Management Studies: An International Journal, 8(3), 2833-2867. https://doi.org/10.15295/bmij.v8i3.1553