Traditional marketing communications are considered as old school promotional techniques that organisations implied in order to gain attraction in the business. On the other hand, Birgili (2015) pointed out that the convergent approach to marketing communication involves the application of two or more combined technologies in one device. Two characteristics that can be associated with the different forms of marketing include:
Traditional approach to market communication
One of the characteristic that define the traditional approach to marketing communication is the ability of it to reach a large mass of people. According to Hatchuel, Le Masson and Weil (2017) the use of traditional approach to marketing is usually done by using television or print media. This helps in reaching various people all across the world with similar interest.
Another characteristic that defines the traditional approach to marketing communication is the fact that organisations using the approach need to have a strong financial position. Paulus et al. (2016) is of the opinion that the finances of the organisations required for maintaining the television channels as well as the print media can dictate the competitive advantage that an organisation can possess. Therefore, it can be said that these two characteristics define the existence and application of traditional approach to marketing and differentiate it from the convergent approach to marketing.
Convergent approach to market communication can be characterised by the manner in which it can change the way it markets products. The objective is to prove that traditional approach is not the only source of promotion and that the use of more than one promotional platform can help in the development of the products and services of the organisations (Runco 2017). Hence, it can be said that convergent approach is the most modern form of approaching the market to gain the attention of the customers.
Another characteristic of the convergent market communication is the fact that it focuses on the customers itself. Paulus et al. (2015) is of the opinion that convergent marketing aims to maintain customers at the centre and work towards the development of the target market with the use of technology. Hence, convergent approach to marketing can include a link with the traditional marketing approach so that approach that is more effective can be gained in addressing the target market. In this regard, Kaufman (2016) stated that differences between the two approaches could be pointed out to understand the effectiveness of the market.
The difference between the two approaches is that unlike the convergent approach, the traditional approach does not address a particular type of customers. As stated earlier in the analysis, the convergent approach is more customers centric and thus targets the customers based on the specific products or services it provides. In the traditional approach, such specification of customers cannot be made available as various people witness the as the newspapers and television advertisements across the world (Im, Hokanson and Johnson 2015).
Convergence marketing allows marketers to use the internet in a way that allows the application of integrated, interactive and consistent messages to be sent from various media sources. In this regard, the application and use of convergent marketing can be associated with the empowered role of the customers. As stated by Rawlinson (2017) the desire of the customers to purchase products convinces them to interact with the organisations. The fact that customers are empowered does not need special mention as the manner in which they interact with the organisations signify the fact that they remain well informed about the products or services (Montag-Smit and Maertz Jr 2017).
The change in the buying behaviour of the customers and the method obtained to generate information has an impact on the business. It has been seen that customers tend to take the roles that they are mostly comfortable with since it is important for them to understand the type of products that they are willing to purchase. Hence, in the case of the application of convergent marketing, organisations tend to generate information needed for attracting the customers. Seeber et al. (2017) stated that the fact that customers are more empowered in the purchase factor provides organisations to indulge in a cross channel approach that involves the application of both traditional as well as convergent styles of marketing approach.
The figure shows the development stages that have spurred the empowerment of the customers. The central stage taken by the customers sheds light to the fact that the preferences of the customers are to interact with the organisations before making any type of purchases. As seen from the figure, the current stage of the customers is based on the interaction via social media like Facebook. However, as pointed out by Toynbee (2016) it is necessary to understand the difference between the needs of the customers as well as empowerment of the customers. The needs of the customers can be attributed to the fact that the customers tend to purchase products that fulfil the basic need. On the other hand, customer empowerment denotes the information that the customers possess so that they can purchase the correct brand of products (Wokke, Ridderinkhof and Padding 2018).
Therefore, it can be said that customer empowerment can be considered as one of the strategic moves that are adopted by every customer so that they can remain educated in the business market. According to Colzato et al. (2107), without proper knowledge it can be difficult for the customers to continue with the perfect purchase of the products. It needs to be taken into account that every customer can maintain the traditional sources that provide information about the type of purchase that they intend to make. In this regard, Goldschmidt (2016) stated that the duty of the marketers is to use the convergent form of marketing to enhance the involvement of the customers so that new business ideas can be used effectively.
Siloed marketing can be considered as a method that reduces the efficiency of a company to establish communication. According to Brodin (2016), the volume of the markets leaves every channel to compete in trying to gain the attention of the customers. Hence, the impact of every message is diluted, as various messages that are received by the organisations are not interpreted in a correct manner. At the same time, departments within an organisation that work in an independent manner often refuses to share data. Hence, as stated by Chen et al. (2015) the challenge of the siloed sectors is to identify and specify the barriers that need to be mitigated for continuing with the marketing efforts. In this regard, the role of the siloed sectors needs to be taken into account.
Create a brand vision: The previous research has shown that establishment of a brand vision is one of the important aspects that are undertaken by the application of convergent approach to marketing. It has also been seen by Chiu et al. (2018)that the empowerment of the customers are high and it is important that organisations consider this as a challenge for the development of its brand. Therefore, the role of the soiled sectors can be considered as a manner required for the development of brand vision (Cortes et al. 2019). Every company need to develop its brand image so that it can fulfil the needs of the customers and continue with the promotion of the company using convergent marketing approach.
Create collaboration: One of the negative impacts of the soiled sector is the fact that it prevents proper communication between the companies and the customers. However, as stated by Costa and Lowery (2016) this role needs to change and instead collaboration needs to be maintained between the two entities so that companies can indulge in continuous improvement keeping the interest of the customers intact. Feedback from the customers can help in the development of an improved performance, which in turn can bring about the satisfaction of the customers. At the same time, long-term strategy can be made that can help in the long process of an organisation (de Vries and Lubart 2017).
Establish a unified vision: A unified vision can help in maintaining the strength of an organisation and ensure that every employee work towards attaining similar goals. Edwards-Schachter et al. (2015) is of the opinion that productivity, morale and resources of an organisation need to be unified so that better performance can be provided. It is essential for organisations to eliminate the concept of single working concept and implement the development of a team concept so that vision of the company can be kept in focus. The manner by which such a concept can be achieved is by ensuring that every department of the organisations maintain collaboration with one another as well as with the customers (Gaither et al. 2015).
An example can be provided that can help in understanding the impact of the role of the siloed markets. The example can be provided of Toyota, one of the most reputed companies that manufacture cars. The company is known to design exquisite cars by considering the concept of lean principle. Therefore, the role of siloed marketing in the form of ensuring collaboration with the customers can be taken into account (Hass, Katz-Buonincontro and Reiter-Palmon 2018). The collaboration can help in the development of a unified vision with the aim of enhancing the brand quality of Toyota. Hence, it can be said that the role of the siloed marketing can be effective in the development of lean principle in Toyota.
As established earlier, convergence is the application of one or more technologies in the market. Therefore, it is important to identify the impact it can have on the traditional siloed industry given the fact that this type of marketing can have a greater impact on the development of promotional activities in an organisation. According to Khalili (2016), the impact of convergence marketing can be traced back to the importance and urgency that exists within an industry with the aim of developing market growth for gaining a competitive advantage. Some of the impact that the convergence marketing can have includes:
Regulatory adjustment: Regulatory refers to the capital deductions that are made based on common equity tier of capital 1. Levine et al. (2016) is of the opinion that goodwill can be associated with the deferred tax liabilities with the valuation of significant investment. The application of convergence marketing can help in making proper adjustments to the regulatory considerations so that intangible assets and deferred taxes can be minimised from the operating loss of an organisation. Any gain on sale can be connected with the security of exposure in the organisations (Madore, Jing and Schacter 2016). At the same time, funding based on pension can be adjusted which in turn can help in the development of the abilities of an organisation.
Development of infrastructure: The development of infrastructure can be considered as one of the most important aspects for the success of an organisation. Main et al. (2018) stated that infrastructure usually refers to the organisational structure that is adopted so that employees can be retained. For traditional siloed markets infrastructure based on the support from the stakeholders is important along with the organisational structure. It is necessary for such companies to continue with the development of the infrastructure that can be associated for improvement.
Investment reform policy: Convergence marketing can help in the development of a reformed investment policy by focusing on the areas in which investment can be provided. It is necessary for the siloed markets to continue with the development of the sustainable environment that can help in the boosting the opportunities of success. Malinowski and Howkins (2018) is of the opinion that interactive expert meetings can be taken into account for the development of the investment reform policy so that breach of law or rules does not take place.
Human resource development: Human resources of an organisation provide it with the required development of resources necessary for the improvement of performance of an organisation. As observed by McPeck (2016) the human resource an organisation provides opportunities for the development of strategies as well as provides significant opportunities for improvement in the local market. In the case of the siloed markets, the emergence of convergence marketing can help in the development of the human resources within the organisations and ensure that interaction with between the employees and employers are maintained in a proper manner (Michinov et al. 2015).
Support for business: Financial support for small business organisations can be provided by the effective use of convergence marketing. One of the effective manners in which support can be provided to the siloed markets is by proper promotion of the organisations. Rosaldo, Lavie and Narayan (2018) stated that the effective manner in which promotion of the small siloed business can be made has an adverse effect on the support of the businesses. Hence, it can be said that convergence marketing can provide excessive support for the development of siloed markets in the competitive business environment.
In order to ensure the effective implementation of convergent solutions, it is necessary that key technologies as well as distribute services be used so that its impact can be understood in the market. As established previously, convergent marketing approach takes into account the use of more than technology for the development and promotional products and services. However, Shi (2015) is of the opinion that it is the use of the software that needs to be considered in order to implement the approach in an effective manner. In this regard, it can be said that an analysis of the technologies and distributed services can be taken into account for understanding the impact of the convergent solutions.
According to Wechsler et al. (2018), the technologies that can be used for ensuring the efficient use of the convergent marketing are that of the computers and smart phones. Although it has been stated the mobile phones are not the only source of technology that can be used, in the modern world, people use mobile phones for conducting all types of activities including the primary purpose of the device (Sierra?Siegert et al. 2016). Therefore, for companies to succeed in the convergent market the use and applications of mobile phones for the effective promotion can be taken into consideration. Hence, it can be said that such portable technology like a mobile is necessary for the development of convergent approach towards marketing.
At the same time, technologies that provide opportunities for evolving can be used for convergent marketing. According to Sowden, Pringle and Gabora (2015), technologies such as Smart TV can be taken into account as these are considered as the new form devices that can help in reaching the customers. Hence, in this regard, it can be said that for the success of an organisation the use of modern technology can help it to gain competitive advantage. Along with the technologies, convergent marketing also need to take into account the distribution services that it needs to adopt (Taylor and Littleton 2016). The distribution services need to be different from the traditional approach so that uniformity can be maintained between the two approaches.
Some of the distribution services that can be used while implementing convergent approach to marketing can be the digital media such as Facebook (Unsworth and Luksyte 2015). In the modern world, the use of social media is the best form of gaining the interest of the customers as well as providing them with the power of knowledge empowerment. Hence, it can be said that for gaining success as a convergent marketing planner technologies and distribution channels need to be used effectively.
The application of the convergent marketing technique can be associated with making integrating it with the real business world. According to Chen et al. (2015), the manner in which convergent marketing have emerged in the business world provides for an understanding of the dominance it is set to gain in the future. As stated by Brodin (2016) the fact that modern technologies are used for ensuring market emergence can be specified to its integration of understanding the concept. In this regard, it can be said that potential points that may lead to the development of the market can be taken into account and possible differences with traditional markets can be considered.
An example can be provided in order to understand the application of convergent marketing and its impact on the business. As stated by Paulus et al. (2016) the point of integration can be associated with the marketing campaign that is undertaken by various companies. For example, in the case of Volkswagen, the company had managed to integrate the concept of convergent marketing in its campaign by launching a promotional farewell to its car Volkswagen Kombi. In it the managers of the organisation insisted people to talk about memories they have with the vehicle in the official website. Such a promotional campaign brought about great responses from people and Volkswagen used the responses to identify the crisis it has on the manufacturing of the vehicles.
Therefore, it can be said that for a company like Volkswagen, the effective application of the convergent marketing can be associated with the fact that it had been able to continue with meeting the requirements of the people (Wechsler et al. 2018). The empowerment of the customers was understood with the application of the promotional campaign and Volkswagen managed to deliver the best convergent marketing approach for the benefit of the customers. According to Toynbee (2016), the marketing campaign can be developed with the integration with the customers and the feedback can help the companies to make possible changes in the future. In the case of Volkswagen, the company can continue to develop with the effective application of the marketing campaign and ensure convergent marketing be used for the development of its practises.
According to Gaither et al. (2015), xperts and business network that are appropriate to a convergent marketing can be associated with the type of business that is required to be undertaken. In this regard, examples can be considered that can help in understanding its application in business environment. The impact hat experts and business networks have on convergent market can be analysed.
Talented experts: Talented experts refer to high level of expertise and strong brand position. Candidates specific to the requirements of organisations are taken into account for the development of an organisation (Goldschmidt 2016). In this regard, an example can be provided of Toyota, as the car manufacturing company is known to have specialised people working in different departments so that enhancement of the quality of cars can be made. The application of talented experts in the convergent marketing approach has provided Toyota with an opportunity to continue its brand image and enhance its existing business campaign.
Hidden experts: Chiu et al. (2017) is of the opinion that the hidden experts are candidates that posses the level of expertise but are associated with a lesser-known brand. In this case, it is difficult for a business organisation to continue with the development of the convergent marketing, as the brand association with the convergent marketing is one of the biggest advantages that need to be taken into account. In this case, an example can be provided of airlines such as Qantas that does not have a high regard in the application of convergent marketing in its business.
Casual contact networks: These groups allow people from various professions to provide opinion about a particular brand. In other words, as stated by Cortes et al. (2019) the can be referred to as loyal target customers that can help organisations in providing feedback about the type of products or services they provide. The best example of this can be the fact that for retail companies such as Woolsworth, immediate customer feedback can help in the growth of the company and ensure that these people can be kept in contact once it applies the feedback that are provided. The application also helped Tesco in enhancing the goodwill of the company.
Strong contact networks: These contact groups help in maintaining business referrals with one another (Unsworth and Luksyte 2015). Examples of such a network can be the distributors or suppliers that are used by organisations for enhancing its resources. For example, retail companies such as Woolsworth can create a strong contact network with its suppliers so that fresh produce can be supplied to the company. This can help in the enhancing the technologies used for convergent marketing and provide Tesco with the need to continue with its objective in the business.
In order to continue marketing in a legal manner, it is necessary that the companies take into account relevant acts and regulations that can help it to maintain its practises (Khalili 2016). Therefore, some of the relevant acts and regulations that need to be followed by the business organisations include:
Fair Wage Act 2009: The act signifies the importance of the workplaces in Australia. It provides the terms and conditions for employees so that a balanced framework for productive workplace relations can be maintained. According to McPeck (2016), the application of the act in terms of marketing communication can be associated by seeking example of Westpac in which the wages that the employees are supposed to earn are communicated via email during the job interview. As stated by Shi (2015) this can help in convergent marketing as the effective application of technology can be used for the hiring talented candidates that can have a significant impact on the business.
Australian Consumer Law: The Australian Consumer Law helps in protecting the interest of the customers. The application of the law can be used as an example in Wesfarmers as the products sold by the company need to be promoted by meeting the rights of the customers. Taylor and Littleton (2016) stated that it is also necessary that the company does not use any irrelevant images while promotion of the products using the convergent marketing. Hence, it can be said that the application of the act can help in mitigating the misunderstanding level of the customers.
Sales of Goods Act 1954: The sales of goods act are applicable during the transfer of goods or money. According to Toynbee (2016), in the case of marketing communication and the application of convergent marketing, the sales of goods act can be applied while charging money for a product sold. An example can be given about Wesfarmers in which the sales of goods act can be applied during the marketing of goods and its promotion in the business. Runco (2017) pointed out that the company need to ensure that the money taken from the customers are worth spending by ensuring proper quality of the products and by maintaining proper marketing campaign for the development of convergent marketing.
The application of convergent tools can be determined by determining the budget and the success it may provide while using it. Hence, companies need to identify an appropriate financial calculation method that can help in the development and application of the convergent tools. The application of cost benefit analysis can be used for the development of the financial position of the companies. The cost benefit analysis helps in identifying the profit or loss that a company can incur with the application of tools and techniques required for business. In general, the analysis is based on the calculation of costs in two successive years. An outline of the cost benefit analysis of Woolworths is provided so that determination of the use of convergent tools can be made
|
ASSETS |
2017 |
2018 |
|
|
Current assets: |
|||
|
Cash and cash equivalents |
29,334 |
20,522 |
|
|
Marketable securities |
6,647 |
10,464 |
|
|
Inventories |
11,461 |
12,047 |
|
|
Accounts receivable, net and other |
8,339 |
13,164 |
|
|
Total current assets |
55,781 |
56,197 |
|
|
Property and equipment, net |
19,114 |
38,866 |
|
|
Goodwill |
3,784 |
13,350 |
|
|
Other assets |
3,723 |
8,897 |
|
|
Total assets |
82,402 |
117,310 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||
|
Current liabilities: |
|||
|
Accounts payable |
25,309 |
24,616 |
|
|
Accrued expenses and other |
10,739 |
18,170 |
|
|
Unearned revenue |
4,768 |
5,097 |
|
|
Total current liabilities |
40,816 |
47,883 |
|
|
Long-term debt |
6,694 |
34,743 |
|
|
Other long-term liabilities |
12,607 |
10,975 |
|
|
Stockholders’ equity: |
|||
|
Preferred stock, $0.01 par value: |
|||
|
Authorized shares — 500 |
|||
|
Issued and outstanding shares — none |
|||
|
Common stock, $0.01 par value: |
|||
|
Authorized shares — 5,000 |
|||
|
Issued shares — 500 and 507 |
|||
|
Outstanding shares — 477 and 484 |
5 |
5 |
|
|
Treasury stock, at cost |
-1,837 |
-1,837 |
|
|
Additional paid-in capital |
17,186 |
11,389 |
|
|
Accumulated other comprehensive loss |
-985 |
-484 |
|
|
Retained earnings |
5,916 |
8,636 |
|
|
Total stockholders’ equity |
20285 |
17709 |
|
|
Total liabilities and stockholders’ equity |
80,402 |
111,310 |
|
|
Current ratio(current assets/current liabilities) |
1.366645 |
1.173632 |
Table: Cost benefit analysis of Woolworths
(Source: Created by author)
Based on the above analysis, it can be said that the convergent tools and techniques that are relevant for the use of marketing is the mobile phones. Chen et al. (2015) is of the opinion that the reason behind the application of mobile phones is that it can be portable and can be carried around in every area. Hence, target customers can be easily reached and it can help in the development of a more customer centric approach to the business. It can also be said that the manner in which the convergent tool such as mobile phones can be applied is based on the continuous evolution of the device for suiting the requirement of the people (Birgili 2015).
The evolution of mobile phones has been one of the biggest evolutions in technology history and it is necessary that every business organisation use the technology for providing services to the target market. Seeber et al. (2017) is of the opinion that the principle that helps in the efficient communication of messages can be associated with the fact that every business organisation can develop mobile applications or sent messages to the target customers. However, as observed by Gaither et al. (2015) one of the challenges of the use of mobile phones as a form of convergent tool is that it does not guarantee the viewership of the customers. Customers may tend to ignore the messages sent and this can be a cause of concern for the business.
On the other hand, rich business organisations with a steady flow of finances can help in the development of both online and offline channels for convergent marketing. Hatchuel, Le Masson and Weil (2017) stated that offline marketing strategy could be associated with the traditional marketing approach mainly because it uses the assistance from the newspapers and radio. However, a combination with the convergent tools and techniques can help in the development of the business and ensure that virtual and physical manner of maintaining communication can be merged. At the same time, awareness of the tech savvy customers is also required for the use of convergence marketing to stay profitable in the business market (Im, Hokanson and Johnson 2015).
Reference to pieces of legislation, regulations and codes with organisational policies
As observed by Kaufman (2016) compiling with the legislation and regulations is necessary for the development of organisational policies. In this regard, it can be said that codes regarding the application of the convergent tools need to be maintained by the organisations so that it can continue with the development of the policies and ensure success in business. Hence, one of the important legislations that need to be maintained by the organisations includes the rules associated with the Australian Consumer Law. According to Hass, Katz-Buonincontro and Reiter-Palmon (2018), the importance of the law is that it protects the interest of the customers and prevents any form of miscommunication with the customers.
The reason behind the identification of this particular act for the use of mobile phones as a means of convergent marketing tool is the fact that it can prevent organisations from providing any type of unrelated messages to the customers. As stated by Main et al. (2018) miscommunication with the customers can lead to problems within a sector and it is necessary that every organisation maintain the privacy of the customers. The application of the Australian Consumer Law can ensure that the content of the promotional activities help in the development of the company rather than cause limitation of it (Beaty et al. 2016). For example, a company like Wesfarmers need to ensure that the use of mobile application can help customers gain information about the type of products that it sells.
The application of the Australian Consumer Law can ensure that business contracts are maintained between other organisations as well as the customers in a relevant manner. The customers can be sent a consent form and small business sectors can be developed with the help of the application of the law. As stated by Levine et al. (2016) any trade activities or breach of confidence can be associated with the development of the law and the application of convergent marketing. It is to be ensured that the mobile messages do not contain inappropriate messages that may breach the trust of the customers. Hence, a reputed company like Wesfarmers can apply the Australian Consumer Law for the development of its business campaign. (Wokke, Ridderinkhof and Padding 2018).
The convergent marketing does not only apply to the process promoting a product or service of an organisation. It also assists in other activities related to an organisation such as identifying the target market or gaining budgetary concerns. Cortes et al. (2019) stated that it is necessary for every organisation to ensure that the finances are kept in mind while trying to continue with the development of strategies. Therefore, reputed organisations such as Toyota need to ensure that target markets are developed so that the product designed can reach the market. At the same time, Goldschmidt (2016) observed that less popular organisations such as SMEs located in Australia need to use the convergent marketing tool in trying to mitigate the financial position of the company.
In the case of identification of the target market, it is necessary that the application of online media tools such as social media be adopted for the development of the market (Rawlinson 2017). The manner in which the target market can be identified causes organisations to gain success in the market. In the case of Toyota, the company can utilise the social media platform such as Facebook in trying to identify the target market and the requirement of the people. As pointed out by Unsworth and Luksyte (2015) this can help the company to apply the promotional strategy using the similar tool so that cost of promotion can be reduced.
At the same time, in the case of budgetary concern, the organisations can use the financial analysis technique so that it can determine the amount of money required for the development of the convergent tools. According to Malinowski and Howkins (2018), for small business organisations, such as NGOs working in Australia, the application of offline convergent tools such as television can be used for marinating the budgetary concern associated with the market. In this regard, it can be said that for gaining success the calculation of profit and loss incurred by the organisations need to be taken into account.
The divergent media environment consists of tools and techniques that can help in the development and evolution of market. According to Montag-Smit and Maertz Jr (2017), the business market is at an ever-changing stage and it is necessary for marketers to understand the evolving needs of the customers in terms of product choices as well as service choices. Colzato et al. (2017) is of the opinion that the application of passive medium for the development of the market and the business can be taken into account. In this regard, an example of the use of divergent marketing tool in a divergent media environment can be taken into account.
A combination of content marketing and media advertisement can be taken into account for the development of the divergent media environment. de Vries and Lubart (2017) stated that the use of television as a reliable source of divergent marketing tool can be taken into consideration for the development of the activities within an organisation. The different market segmentations can be prioritised by promoting advertisements in television. The changes in the marketing segmentation can be analysed based on the responses of the people so that innovative methods can be implemented. However, as stated by Sowden, Pringle and Gabora (2015) it is to be noted that marketing segmentation based on the preferences of the customers need to be taken into account.
Customer centric marketing involves understanding the experience of the customers at the time of sale or post sale. As stated by Costa and Lowery (2016) customer centric approach can add value to a company by differentiating the different customers and the competitors that exist in the business. Customers that do not have similar experiences can be easily differentiated during the application of customer centric marketing. In this regard, it can be said that customer centric environment need to gain the trust of the customers. For this, development of official website, QR code and blogs can be taken into account for the development of the customer centric marketing environment (Madore, Jing and Schacter 2016).
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