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Introduction
Marketing is a fundamental element in organisation’s long-term performance. Therefore, making effective marketing decisions is critical. Traditionally, marketing decisions were based on experience and judgement.
However, different marketing models were formulated during the 1960s in an effort to assist organisations in conducting marketing analyses.
Another major revolution in the 1960s relates to the development of the mainframe computers, which enabled marketers to access the market data they needed in making marketing decisions and planning (Wierenga 2008).
Diverse models have been formulated in an effort to explain the transformations that have occurred with regard to marketing. Cooper (2000) posits that organisations should ensure that they are very effective with regard to planning.
This aspect is only achievable if marketers have sufficient marketing information (Hengst & Sol, 2001). Information has become a powerful tool that is influencing the society.
The significance of information in the contemporary society has been enhanced by the emergence of Information Communication Technology (ICT) (Coallier 2012).
The rate of ICT innovation has increased exponentially as evidenced by innovations with regard to the internet, mobile technologies, and the social media (McGrath 2012).
Lancaster (2005) emphasises that the changing role of ICT with regard marketing has presented a major challenge to marketing practitioners and academics. In a bid to survive in such a business environment, it is fundamental for organisations to integrate effective marketing planning.
Simkin and Dibb (2008) define marketing planning as the systematic process through which an organisation evaluates its marketing capabilities together with opportunities through
- analysing the marketing objectives,
- ensuring effective market targeting,
- developing competitive advantage, resource allocation,
- formulating effective brand positioning
- implementing and controlling the strategies formulated.
Simkin and Dibb (2008) are of the opinion that marketing planning is based on analysing the customers, capabilities, competitors, and the market trends.
Aim
The objective of this report is to evaluate marketing models, their relevance, and significance in the modern digital era.
The report also evaluates the opportunities and challenges, which have emanated from the high rate of proliferation in Internet and information communication technology.
Scope
The report mainly concentrates on the development of marketing models and the contribution and role of ICT in marketing communication. Consequently, the paper evaluates the core emphasis of the marketing models from the 1970s to today.
Moreover, the paper evaluates the significance of the marketing models within the digital era.
Some of the issues evaluated relate to how marketing planning has evolved, ICT and marketing communication, database marketing, internet and social media marketing, and consumer behaviour.
Moreover, the report also evaluates the challenges that are associated with social media marketing.
Analysis
Evolution of marketing models
According to Pulendran, Speed, and Widing (2002), marketing planning has undergone a significant growth over the past decades. Different models have been formulated in an effort to explain the concept of marketing planning.
Marketing planning enables organisations to align with market trends such as the customers’ needs and the competitors’ strategies (Jadhav, Kamble & Patil 2009).
Planning enables an organisation’s ability to ensure that its resources are optimally utilised in addition to responding to unexpected market changes (Simkim & Dibb 2008).
The traditional marketing models
The 1970s were characterised by emergence of different marketing models. One of the models includes the stochastic models. The models were mainly focused on developing the marketing mix instruments such as marketing communication and pricing.
Wierenga (2008) asserts, “The issue was how to model the relationship between a particular marketing instruments and sales” (p.6). Another major development in the 1970s relates to emergence of the marketing decision support systems.
The 1980s saw the emergence of the market generalisation models and the marketing knowledge model. The generalisation model entailed summarising what is already known about a particular issue.
One the other hand, the marketing knowledge model entailed integrating the concepts of computer science and artificial intelligence in the marketing processes.
Artificial Intelligence [AI] enabled marketers to store market information in databases hence improving their capacity to formulate optimal marketing decisions (Wierenga 2008).
The marketing knowledge model led to development of the expert and knowledge-based systems. The systems were mainly focused on enhancing sales promotions and advertising.
This period was also characterised by the emergence of the conjoint analysis model, which continues to be an effective model in making decisions with regard to new product development (Wierenga 2008).
The 1990s was characterised by a remarkable revolution with regard to marketing information. The ‘marketing information revolution’ played a significant role in influencing consumer choice modeling.
Moreover, the ‘marketing information revolution’ models led to increment in the volume of data available for making marketing decision, which is evidenced by increment in the concept of ‘data mining’.
The availability of data was also enhanced by the development of information communication technology (Wierenga, 2008).
The individual customer model
According to Pride (2009), the customer is the most important unit of analysis in an organisation’s marketing processes. The first decade of the 21st century was characterised by the development of the Customer Relationship Model [CRM].
The models were mainly concerned with how best an organisation can attract and retain customers.
This led to emergence of the customer centric models. From the above analysis, it is evident that marketing model has undergone significant growth. New models have been developed in an effort to illustrate the change in consumer behaviour.
Relevance of the marketing models
The above analysis of the marketing models shows that they were formulated with the objective assisting organisations and entrepreneurs attracting and retaining customers. Moreover, the models are still relevant in the modern business environment.
This emanates from the fact that they emphasise on the importance of developing a critical understanding of the prevailing marketing information. To achieve this, the models highlight the significance of knowledge management in organisations’ marketing processes.
Moreover, they are concerned with understanding the consumers’ behaviour, which is a critical element in marketing planning. According to Shin (2013), marketing planning is considered being as a behavioural phenomenon because it entails the adoption of various forms of technology.
The models also illustrate significance of information communication technologies in organisation’s marketing processes. The models underscore the contribution of marketing communication in attracting and retaining customers.
In the course of undertaking marketing planning, it is critical for organisations’ managers to take into account the concept of marketing communication, which is ranked as one of the most important elements in the firms marketing planning processes (Gazzar & Mourad 2012).
Information Communication Technologies have undergone significant evolution over the past decades. The three distinct periods of ICT development include data processing, micro-computing, and networking.
According to Somers, Cain, and Jeffrey (2009), the 1990s was characterised by a high rate of proliferation in relationship marketing. However, traditional marketing concept has extensively been criticised.
Nwankwo and Gbadamosi (2010) are of the opinion that marketing communication entails integration and application of various marketing communication tools, for example, public relations, sales promotion, personal selling, and advertising.
ICT has remarkably revolutionised marketing communication. Dyllick and Hockerts (2002) are of the opinion that developing customer relationship is critical in achieving sustainability.
Currently, ICT is considered a critical component in developing a strong relationship with various stakeholders (Brodie et al. 2011).
Thomas and Barlow (2011) are of the opinion that the high rate of ICT development coupled with an increment in the intensity of competition has led to the emergence of relationship marketing and marketing communication.
Currently, customer relationship marketing is a fundamental element in organisations’ effort to achieve the desired success (Safko 2012). This aspect underscores the importance of nurturing a more valuable customer relationship.
Incorporating marketing communication is one of the avenues through which an organisation can deliver value to customers (Shin 2013). This assertion emanates from the view that it enhances communication between the organisation and various stakeholders.
Marketing communication has undergone remarkable development over the years as evidenced by the emergence of Integrated Marketing Communication. Shin (2013) is of the opinion that IMC has become a critical element in a firm’s effort to reach the target audience.
Traditionally, organisations emphasised on transaction marketing, which is a one-way method of communication. On the other hand, relationship marketing is concerned with creating two-way communication between an organisation and its customers (Thomas &Wasmund 2011).
Traditional marketing communication was not effective in enhancing organisational performance. Shin (2013) asserts that organisations can only achieve competitive advantage and brand loyalty through effective communication and information circulation.
This move will improve the organisations’ ability to cope with the high degree of market uncertainty faced by organisations today.
Marketing in the digital age
The digital age is characterised by ease with which marketers and entrepreneurs can access information through various mediums. The digital age has emanated from the high rate at which Information Communication Technology is occurring.
Integrating ICT can play a significant role in making marketing communication more effective and efficient. Currently, organisations are adopting digital communication in their marketing processes in an effort to achieve operational efficiency (Al-Deen & Hendricks 2012).
Database marketing is one of the avenues through which ICT has improved marketing communication. Developing a database can enable an organisation to store sufficient customer information relating to their past-purchase history.
Such information can be utilised in formulating various marketing mix strategies like promotion strategies. Database marketing has improved marketing communication by enabling organisations to design loyalty schemes.
For example, firms in the retail industry such as supermarkets can utilise the information gathered through the EPOS to offer discounts to specific customers in order to enhance their loyalty.
The Internet revolution has led to the development of a global market place. Moreover, the internet has enabled organisations to overcome challenges associated with time and distance (Obrien 2011).
Increased investment in ICT by organisations and individuals has led to the emergence of various digital communication platforms. Social media is one of the new phenomena that have emanated from ICT development.
Obrien (2011) posits, “Communication is truly changing as a result of social media utilisation, and thus the dynamics of human relationships take on a new perspective” (p.32). Social media has led to the development of an online community.
Brodie, Ilic, Juric, and Hollebeek (2011) opine that the sophisticated ICTs that have emerged have facilitated the emergence of brand communities. These communities have emerged from the engagement and interaction amongst customers through various social media platforms.
Currently, social media has overtaken marketing communication through company websites and emails and it is considered as the largest web presence in organisations (Jacobson 2009).
Social media has influenced how organisations interact and communicate with existing and potential customers. Moreover, social media has significantly influenced how organisations formulate their Customer Relationship Management [CRM] policies.
By integrating social media, an organisation can be in a position to increase its sales revenue (Sweeney & Craig 2011).
Consumer behaviour
The ASP model outlines analysis as one of the steps that an organisation has to take into account in order to undertake marketing planning successfully. Consumers constitute a critical component in an organisation’s marketing process (Talloo 2007).
Consumer behaviour is very dynamic, and thus it is imperative for organisations to develop a comprehensive understanding and monitor the consumers’ behaviour.
Developing such understanding will provide organisations with insight on how to formulate effective decisions regarding the most optimal marketing mix strategies to adopt.
Brodie et al. (2011) posit that the last two decades have been characterised by the emergence of various Internet communication mediums, which have led to the development of an online community. The online community shares ideas and opinions regarding various products and service.
In a bid to understand the consumers’ perceptions and opinions successfully, organisational managers should take advantage of the internet’s capability with regard to consumer-to-consumer communication.
Some of the online communication platforms commonly used by consumers include blogs, social networks, chartrooms, personal web pages, electronic discussion forums, newsgroup, and list servers (O’Leary, Sheehan & Lentz 2011).
A study conducted by a European car club shows that consumers are motivated to engage with one another through various Internet platforms by a number of reasons.
Some of the reasons identified include venting negative feelings, seeking advice, self-enhancement, economic benefits [cost saving], assisting the company by making their opinion known, concern for other consumers, and social benefits.
Therefore, development in ICT has led to the emergence of electronic word-of-mouth [e-WOM], which is fundamental in enhancing development of virtual brand communities (Sayre, Rastogi, Zwillenberg & Visser 2012).
Failure to incorporate ICT in organisations’ marketing planning processes can limit an organisation’s competitiveness. For example, negative comments posted online can affect the consumers’ behaviour towards a particular product and organisation.
Thus, firms’ management teams should evaluate how best they can utilise online media in understanding the consumers’ behaviour.
Challenges presented by the development in ICT
Digital disruption
Despite the benefits associated with ICT proliferation, the emergence of digital media has presented organisations with diverse challenges. One of the major challenges relates to ‘digital disruption’, which refers to changes arising from digital media, either positive or threatening.
First, the rate of innovation with regard to digital media is alarming. Therefore, businesses face the challenge of trying to keep-up with the pace of innovation (Jadhav, Kamble & Patil 2009).
Cost of new technology and training
In a bid to survive in the long term, businesses will be required to increase their investment in research and development on digital media. Moreover, the digital media age will force organisations to adjust their business and operating models.
For example, marketing in the digital media age requires organisations to purchase additional communication equipment in order to communicate effectively with the targeted stakeholders.
Some of these technologies relate to hardware, software, servers, computers, and subscription to the Internet services.
Upon implementing the necessary business communication technology, organisations will be required to hire and train employees who will be in a position to utilise and maintain the new technology.
Firms will be required to ensure that communication through various social media platforms is monitored optimally. The comments made by consumers on social media have to be responded to in a bid to deliver value to customers.
If a business does not have adequately trained human capital on how to address issues raised by customers’ on social media, its ability to compete effectively in the contemporary business environment is limited.
In summary, incorporating social networking in an organisation’s marketing communication process is time-consuming (Brodie et al. 2011). Consequently, substantial financial costs are incurred in the process of upgrading the firms marketing communication processes.
Reputational risk
The development of social media has empowered the consumers’ purchasing behaviour remarkably. For example, consumers have an opportunity to share ideas and opinions regarding a particular product with their friends and relatives.
Social media platforms are increasingly becoming popular amongst consumers. It is estimated that Facebook has over 500 million followers. Therefore, a negative issue about an organisation or its product on social media can harm an organisation if not adequately addressed.
Therefore, organisations are exposed to a considerable degree of reputational risk by the proliferation of communication through social media.
For example, in 2009, a national pizza delivery chain suffered when two of its employees developed and posted a video that tainted the company’s image. The video went viral through Twitter. Within 48 hours, the consumers’ perception towards the company was adversely affected.
Therefore, organisations have to ensure that their employees do not use social media in a way that harms the company’s reputation (O’Leary, Sheehan & Lentz 2011).
Conclusion
The report illustrates the change in marketing models over the past few decades. One of the salient features of the marketing models relates to the importance of developing a sufficient understanding of the market.
Consequently, they are of the opinion that it is important for marketing managers to collect and utilise a wide range of data in order to undertake effective marketing planning, which is a fundamental aspect in organisations effort to achieve the desired level competitiveness.
The models are still relevant in the digital business environment because of their emphasis on developing sufficient marketing information and a strong relationship with customers..
The report also asserts that the changes occurring in the external business environment may have a remarkable impact on an organisation’s competitiveness. Therefore, it is essential for managers to understand the market dynamics.
Technological change with regard to the emergence of various ICT mediums is one of the major aspects that should be evaluated.
Currently, consumers are increasingly integrating ICT as their major source of product and service information, which has led to the development of an online community. Through various Internet-based platforms, consumers can interact with one another on various issues.
Thus, the emergence of the digital age has remarkably influenced the consumers’ behaviour. In a bid to survive in such an environment, it is essential for organisational managers to formulate strategies that will enhance organisations capability in utilising ICT in their marketing processes.
However, when implementing ICT in their marketing communication processes, it is imperative for organisations to be conscious of the challenges associated with the revolution in marketing communication.
Organisations should be prepared to incur substantial cost in the course of implementing the necessary marketing communication technologies, which will enable firms to improve their competitiveness and hence their survival.
Moreover, firms should appreciate the risks associated with integrating social media in their marketing communication platforms, which will enable the firms to be proactive when addressing the various risks that emerge.
Recommendations
Organisational managers should focus on evaluating customer relationship. Some of the factors that the firm should consider :
- Firms should be focused on developing a strong customer relationship. To achieve this, it is important for firms to focus on adopting customer-centric models such as the CRM model.
- Organisations should ensure that the information communication technologies incorporated are sufficiently interactive. This aspect will enable the firm to develop sufficient understanding of the consumers’ behaviour. Firms should respond to opinions made by consumers on various ICT platforms.
- It is also critical for organisations to personalise marketing communication using various information communication technologies, which can be achieved by integrating mobile technologies in their marketing communication processes, for example, by designing a mobile device platform.
- Organisations should formulate comprehensive policies and procedures that should guide the utilisation of its social media platforms. It is also imperative for organisations to review of the social media rules and regulations continuously. The review should be done under the watch of the organisation’s human resource, communications, information technology, and legal departments. It is also imperative for the set rules and regulations to be reviewed by an autonomous law firm.
- Prior to deciding on the social media platform to use, it is essential for the firms’ management teams to conduct a cost benefit analysis associated with integrating ICT in marketing communication.
Reference List
Al-Deen, H & Hendricks, J 2012, Social media: usage and impact, Lexington Books, Lanham, MD.
Brodie, R, Ilic, A, Juric, B & Hollebeek, L 2011, ‘Consumer engagement in a virtual brand community: an exploratory analysis’, Journal of Business Research, vol. 66 no.1, pp. 1-10.
Coallier, J 2012, Introduction to marketing; digital age edition, Booktango, New York.
Cooper, L 2000, ‘Strategic marketing planning for radically new products’, Journal of Marketing, vol. 64 no.1, pp.1-16.
Dyllick, T & Hockerts, K 2002, ‘Beyond the business case for corporate sustainability’, Business Strategy and the Environment, vol. 11, no.2, pp. 130-141.
Gazzar, N & Mourad, M 2012, ‘The effect of online communication on corporate brand image’, International Journal of Online Marketing, vol. 2 no. 1, pp. 1-15.
Hengst, M & Sol, H 2001, ‘The impact of ICT on inter-organisational coordination; guidelines from theory’, Special Series on Information Exchange in Electronic Markets, vol. 4 no. 3, pp. 129-139.
Lancaster, G 2005, Management of marketing, Routledge, New York.
Jacobson, J 2009, 42 rules of social media for small business, Superstar Press, Cupertino.
Jadhav, M, Kamble, R & Patil, M 2009, ‘Social media marketing: the next generation of business trends’, Journal of Computer Engineering, vol. 3, pp. 45-59.
McGrath, M 2012, ‘Social media and employment: Is there a limit?’ Interdisciplinary Journal of Contemporary Research in Business, vol. 4 no.1, pp. 17-24.
Nwankwo, S & Gbadamosi, T 2010, Entrepreneurship marketing: principles and practices of SME marketing, Taylor & Francis, New York.
Obrien, C 2011, ‘The emergence of the social media empowered consumer’, Irish Marketing Review, vol. 21 no. 1/2, pp. 32-40.
O’Leary, S, Sheehan, K & Lentz, S 2011, Small business smarts; building buzz with social media, Praeger, Santa Barbara, CA.
Pulendran, S, Speed, R & Widing, R 2002, ‘Marketing planning, market orientation and business performance’, European Journal of Marketing, vol. 37 no. 3, pp. 476-497.
Pride, W 2009, Business, Cengage Learning, New York.
Safko, L 2012, The social media bible; tactics, tools and strategies for business success, John Wiley and Sons, Hoboken.
Sayre, K, Rastogi, V, Zwillenberg, P & Visser, J 2012, Marketing capabilities for the digital age, Boston Consulting Group, New York.
Shin, K 2013, The executor of integrated marketing communications strategy: Marcom’s manager’s working model, SpringBriefs, New York.
Simkin, L & Dibb S 2008, Marketing planning: a workbook for marketing managers, Cengage Learning, London.
Somers, G, Cain, J & Jeffrey, M 2009, Essentials VCE business management: Units 1 and 2, Cambridge University Press, Cambridge.
Sweeney, S & Craig, R 2011, Social media for business; 101 ways to grow your business without wasting your time, Maximum Press, Gulf Breeze, FL.
Talloo, R 2007, Business organisations and management, Tata McGraw-Hill, New York.
Thomas, D & Barlow, M 2011, The executive’s guide to enterprise social media strategy; how social networks are radically transforming your business, Wiley, Hoboken.
Thomas, M &Wasmund, S 2011, The smarter way to do business, Capstone, Chichester.
Wierenga, B 2008, Handbook of marketing models, Rotterdam: RSM Erasmus University.
Annotated bibliography
Brodie, R, Ilic, A, Juric, B & Hollebeek, L 2011, ‘Consumer engagement in a virtual brand community: an exploratory analysis’, Journal of Business Research, vol. 60 no.1, pp. 1-10.
The authors of this article outline the importance of organisations investing in brand management. The authors are of the opinion that investing in consumer engagement is one of the most effective strategies that organisations across the world can adopt.
In order to achieve this goal, the authors assert that firms’ management teams should invest in various types of information communication technologies. The article has extensively described how organisations can develop a strong customer relationship and loyalty by integrating ICT.
Consequently, the article is very informative on the role of ICT in nurturing a virtual brand community.
Coallier, J 2012, Introduction to marketing; digital age edition, Booktango, New York.
This book explores various marketing fundamentals. One of the aspects that the author emphasises on relates to the development of a strong brand name. Media is cited as one of the aspects that an organisation can integrate in order to develop a strong brand name.
Media offers a platform through which organisations can make their presence known across the world. The authors further assert that it is critical for organisations to seek market feedback in order to evaluate its success.
Integrating ICT is highlighted as one of the avenues through which an organisation can seek market feedback more effectively and efficiently.
Cooper, L 2000, ‘Strategic marketing planning for radically new products’, Journal of Marketing, vol. 64 no.1, pp. 1-16.
In this article, the author emphasises on the importance of integrating marketing planning in firms’ marketing processes. The authors focus on the importance of understanding the consumer’s decision-making process in order to influence their behaviour.
Consequently, Cooper asserts that it is essential for marketers to conduct a comprehensive situation analysis. Decision to integrate the article was informed by the fact that it highlights how marketing planning can enable organisations to introduce new products into the market successfully.
Technological change is cited as one of the aspects that organisations should evaluate in their marketing planning processes.
Gazzar, N & Mourad, M 2012, ‘The effect of online communication on corporate brand image’, International Journal of Online Marketing, vol. 2, no. 1, pp. 1-15.
This article highlights how organisations can integrate online communication in order to influence their customers hence leading to the development of a strong brand image.
The article highlights how learning institutions can integrate online communication in improving the image of their institution. The article further opines that there is a strong degree of correlation between an organisations’ brand image and its online strategies.
The authors are of the opinion that the internet has played a remarkable role in improving an organisation’s market position and hence its future success.
Hengst, M & Sol, H 2001, ‘The impact of ICT on inter-organisational coordination; guidelines from theory’, Special Series on Information Exchange in Electronic Markets, vol. 4, no. 3, pp. 129-139.
The authors cite Information and Communication Technology as a critical element that have led to improvement in organisations marketing processes.
The authors further opine that ICT has contributed towards improvement in an organisations capabilities and hence their ability to coordinate with other stakeholders.
According to the article, it is important for organisations to ensure that information communication technologies are effectively implemented in order to enhance the relationship with external stakeholders such as customers.
Obrien, C 2011, ‘The emergence of the social media empowered consumer’, Irish Marketing Review, vol. 21 no. 1/2, pp. 32-40.
The journal cites social media as one of the user-generated platforms that have been developed in the 21st century. The emergence of social media has motivated organisations to shift from web 2.0 in their marketing processes.
The author is of the opinion that social media has made consumers’ very powerful. Consequently, organisations have to take into account the consumers’ opinions and perceptions in their marketing processes.
Moreover, social media has significantly transformed traditional relationship marketing concepts.
The article further highlights the importance of integrating social media in developing a strong business-consumer relationship. In summary, the author illustrates how social media has empowered consumers.
Pulendran, S, Speed, R & Widing, R 2002, ‘Marketing planning, market orientation and business performance’, European Journal of Marketing, vol. 37 no. 3, pp. 476-497.
This journal emphasise on the importance of developing a comprehensive analysis on the relationship between marketing planning and the marketing concept.
According to the authors, it is essential for organisations to develop a comprehensive understanding of the consumers’ behaviours in order to undertake marketing planning successfully.
The article cites linking consumer behaviour and marketing planning as a fundamental role in promoting business performance. Thus, the authors assert that it is important for organisations to invest in technologies that can enhance their capacity to understand the consumers’ behaviour.
Sayre, K, Rastogi, V, Zwillenberg, P & Visser, J 2012, Marketing capabilities for the digital age, Boston Consulting Group, New York.
The book highlights digital revolution as one of the major factors affecting business operations. The authors cite the internet, mobile technologies and social media as some of the technologies that have led to transformation in consumer behaviour.
The book highlights the change in consumer trend with regard to integration of emerging information communication technologies. Moreover, the authors highlight the challenges that are associated with the emergence of the digital age.
Consequently, it is critical for marketers to be conversant with change in the market environment courtesy of ICT developments.
Simkin, L & Dibb S 2008, Marketing planning: a workbook for marketing managers, Cengage Learning, London.
The book illustrates the importance of investing in marketing planning in organisations’ effort to develop competitive advantage. According to the authors, marketing planning is increasingly being integrated by organisations in different economic sectors.
Moreover, the authors highlight marketing planning as one of the fundamental elements in marketing management. The authors assert that marketing planning encompasses various elements, which include marketing mix and marketing analysis.
In summary, the book sufficient highlights how an organisation can adopt marketing planning in developing sufficient competitive advantage.
Shin, K 2013, The executor of integrated marketing communications strategy: Marcom’s manager’s working model, SpringBriefs, New York.
The book outlines the basic theory of Integrated Marketing Communication. According to the author, the IMC strategy is fundamental in developing sufficient market awareness. Moreover, the author asserts that the emergence of ICT has remarkably transformed marketing communication.
Organisations have increasingly integrated emerging information communication technologies in their marketing communication. Consequently, author emphasises that ICT has played a critical role in transforming marketing communication from being a one-way to a two-way phenomenon.
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