Digital Marketing Strategies in the Telecom Sector Dissertation Example

ABSTRACT

Effective digital marketing strategies are considered to play a major role in driving the market share of different telecom brands of Australia. The Australian telecom industry is one of the largest in the world but its growth has been sluggish over the past two years. The sluggish growth in the Australian telecom sector is attributed to the intense intra-industry competition and a lack of appropriate differentiation of products and services. Moreover, the telecom industry is facing steep challenges to satisfy the explosive demands of multigenerational customers. Although the Australian telecom sector is a 43 billion USD industry, the annualized subdivision revenue is expected to grow only at a rate of 0.1% over the next five years. It is believed that the situation can be addressed by launching effecting marketing strategies and increasing the provision of value-added services uniformly across a diverse clientele base. Different reports suggest that DM across the global telecom sector would peak by 2020. Recent reports suggest that the Australian Telecom Sector is far behind their U.S. or U.K. counterparts in leveraging DM to promote their products or services. The contemplated research would explore the DM strategies that are effective for the Australian telecom sector. The contemplated research would include a triangulated research approach including; a literature review, content analysis of government policies driving the telecom sector in Australia, and by interviewing different individuals from the telecom market sector and prospective and existing customers of telecom services in Australia.

Keywords: research proposal, telecommunication industry, multicultural audience, Australia, digital marketing, augmented reality-based marketing, gamification

INTRODUCTION

Digital marketing plays a major role in driving customer engagement and improving brand loyalty. Such assumptions are also applicable for the Australian Telecom Sector. Australia is amongst the world’s top ten consumers of electronic products including telecom products and services. Presently, the nation has 29 million subscribers of mobile phones and allied telecom services. Despite being a global hub for the telecom sector, Australian TSPs have not been able to capitalize the innovative frontiers in DM. The Global Telecommunications Study (2016) reflected that innovations in DM across the telecom industry would peak by 2020. Hence, TSPs across the globe are exploring effective DM strategies for increasing their market share across a diverse clientele base. Recent reports suggest that TSPs have expanded their market share by employing effective DM strategies. One such transition is the implementation of augmented reality-based marketing (ARBM). However, there is inconclusive evidence on the effectiveness of different DM strategies that are implemented by Australian TSPs.

Australia is amongst the world’s top ten consumers of electronic products including telecom products and services. Presently, the nation has 29 million subscribers of mobile phones and allied telecommunication services. Approximately nine million handsets are shipped to Australia per year and, the handsets are recycled at a frequency of 18 to 24months. Such statistics implicate the opportunities that exist in the telecom sector of Australia and the need for designing effective DM strategies by the Australian TSPs for increasing their market share. During the past decade, the opportunity of DM has widened in Australia. However, TSPs in Australia are facing significant challenges in tailoring their marketing strategies for a multicultural, multigenerational, and multilingual clientele base. In 2010, a majority of the customers of different telecommunication brands were focused on data-based services while 10% was inclined to use media and video-based services. On the contrary, the inclination for media and video-based services increased to 50% in 2015 CITATION The16 l 1033 (The Global telecommunications study, 2016).

Challenges and opportunities for the global and Australian Telecom Sector

In this digital era, the field of marketing is confronted with new challenges and opportunities (Salehi et al., 2012, Mangles, 2003). The Telecom industry across the globe is no exception to such phenomenon. In 2010, a majority of telecom brands were focused on providing data-based services to their customers. The demand for media and video-based services was only 10%. In 2015, the inclination for media and video-based services increased to 50% CITATION The16 l 1033 (The Global telecommunications study, 2016). Hence, TSPs across the globe have expanded their services and designed cost-effective plans for meeting the explosive and diverse demands of their customers. As a result, the TSPs have raised their capital expenditure for upgrading network capabilities, improving automation, and installing innovative value-added provisions. However, the performance of different TSPs significantly varied from one geographical region to another. Different attributes accounted for such variations in their market performance. For example, the North American and Asian TSPs outperformed their European and Latin American counterparts by capitalizing on strong secular growth opportunities and unique value-added services. On the contrary, their Latin American counterparts faced macroeconomic limitations in expanding their services. Hence, every entity of a digital ecosystem is seeking differentiation to maximize their customer base (Prahalad & Ramaswamy, 2005). Prahalad & Ramaswamy (2005) further contended that innovative DM strategies and value-added services would foster the growth of different TSPs in the future.

Domain and Opportunities in Digital Marketing DM refers to the promotion of brands or services to the prospective end users through electronic or digital media (Kotler et al. 2013). The major objective of DM is to attract prospective customers and provide them the opportunity to interact with the respective brands through the digital media (Kotler et al. 2013). The popular forms of DM include promotional activities through television channels, mobile communication devices, social media marketing, search engine operations and display advertisements (Yasmin, Tasneem, and Fatema, 2015). Each form of DM does have its pros and cons but most of them are effective in improving brand awareness and customer engagement. Yasmin et al. CITATION Yas15 n t l 1033 (2015) highlighted the importance of DM in enhancing customer engagement and improving sales of a product. The authors concluded that online marketing, e-mail marketing, and social media marketing were positively correlated with increased sales CITATION Cha08 l 1033 (Chaffey, D., & Smith, P, 2008).

Recent transitions in the field of ICT (information and communication technology) have changed the thought process of marketers for engaging with their customers. One such transition in the field of DM is the introduction of ARBM. Augmented reality refers to the augmentation of real-world experience through digital data such as virtual images, sound, and three-dimensional models. An ARM is a technological advancement that facilitates dialogue between physical and digital worlds. Such interactions are effective in promoting value-added benefits for both buyers and marketers (Singh and Pandey, 2014). The concept of gamification has further expedited the appeal of ARBM. For example, an ARBM-based gamification app called “PokemonGo” has created a strong impact in integrating the entertainment and the marketing sectors. A recent study reported that ‘AR/VR has the potential to disrupt the mobile and tablet market and would capture a market share of 120 billion U.S. Dollars by 2020’ (The Global Telecommunications study, 2015).

Multicultural and Multigenerational Attributes of Buyers: A Critical Challenge for Marketers Multiculturalism is a descriptive term to describe the diversity that exists within a society or population (De-Mooij, 2015). De-Mooij CITATION DeM15 n t l 1033 (2015) stated that marketers should utilize and manipulate the cultural norms of different cultures maximize their businesses by demonstrating appropriate interest and appreciation of diverse cultures. Marketers should communicate at different wavelengths as per their prospective target audience. Marketers should also be competent to adapt to different markets across the globe. Such philosophies underpin the concept of International marketing and marketing across cross-cultural and multigenerational buyers. Singh and Pandey (2014) highlighted that marketers should adopt strategies that would effectively promote marketing communications across a diverse customer base (p. 24). Hence, the concept of marketing in meeting the demands multigenerational and multicultural customers is rational (The Global Telecommunications study, 2015). To recall, effective DM strategies hold the promise of engaging multigenerational and multicultural customers to a specific brand or service. For this contemplated research, multicultural and multigenerational attributes would be used interchangeably.

Initiatives of Australian Marketers in Reaching Multigenerational and multicultural Customers

The major challenge faced by marketers is to leverage brand loyalty across a multilingual, multigenerational, and multicultural customer base CITATION Mer04 l 1033 (Merisavo & Mika, 2004). During the past decade, the field of digital marketing (DM) has undergone radical transitions to overcome such challenge (Demangeot et al., 2015). During the past decade, the opportunity of DM has also widened in Australia. Digital Marketers in Australia are still relying on email-based promotions (84%) compared to app-based promotions (67%). TSPs in Australia are facing significant challenge in tailoring their DM strategies for a multicultural, multigenerational, and multilingual clientele base. Hence, Australian marketers are focusing on designing creative marketing strategies. For example, a recent report suggested that Internet of Things (IoT) and Machine to Machine (M2M) is speculated to expedite the growth of the Australian Telecom sector. Such assumptions might promote the development of robust and innovative DM strategies in the Australian telecom sector (Big Australian Report, 2012).

2.0. MAIN AND SUB-RESEARCH QUESTIONS

The present proposal would explore one Main Research Question and Sub-Research Questions. Based on the preceding discussion the Main Research Question that has been developed is as follows:

2.1. The Main Research Question

“What are the most effective digital marketing strategies implemented telecommunication companies in Australia that significantly improve customer engagement, buying behavior, and their market share?”

2.2. The Sub-Research Questions:

The Sub-research questions are framed to explore the Main Research Question in a detailed and comprehensive manner. The sub-research questions were framed from the different end-points that justified the role of DM in promoting product sales and improving customer engagement.

SRQ1: Whether novel DM strategies (such as AR-based marketing) undertaken by different TSPs in Australia uniformly improve customer engagement and brand loyalty across a multicultural, multilingual, and multigenerational clientele base?
SRQ2: Whether increased engagement and brand loyalty through innovative DM strategies improve brand visibility or market shares of the respective TSPs compared to other forms of DM?
SRQ3: Whether value-added features (freebies such as free data usage) offered by innovative DM strategies increase market share of TSPs compared to other forms of DM?
SRQ4: Whether value-added features (freebies such as free data usage) offered by innovative DM strategies increase market share of TSPs irrespective of the lingual, cultural, ethnic, and religious backgrounds of the end-users?
SRQ5: Whether prospective end users perceive ARM more beneficial than other forms of DM irrespective of the lingual, cultural, ethnic, and religious backgrounds?
SRQ6: Whether ARM improves B-2-B opportunities for TSPs with other retail brands compared to other forms of DM?
SRQ7: Whether ARM uniformly improves B-2-B opportunities for TSPs with other retail brands compared to other forms of DM irrespective of the lingual, cultural, ethnic, and religious background of prospective clients?

3.0. THE RESEARCH RELEVANCE

This research aims to develop a conceptual framework that explains the effectiveness of different DM strategies that are undertaken by Australian TSPs. Different studies have implicated the importance of DM but only a few studies have compared the effectiveness of various DM strategies that are undertaken by various TSPs in Australia for engaging a multicultural, multigenerational, and multilingual customer base (Big Australian Report, 2012). Digital Marketers in Australia are still relying on email-based promotions (84%) compared to app-based promotions (67%). Australian marketers are focusing on designing creative content and robust subject line considering the demand and need of prospective buyers. Such initiatives are intended to increase the engagement and brand loyalty across prospective Australian buyers (Big Australian Report, 2012). The proposed study would address the knowledge gap on the effectiveness of different forms of DM that are implemented by different TSPs across Australian customers. The proposed research would help telecom companies in Australia to select the most effective DM strategies for Australian customers. This study might unfold the necessity of segmenting the content and mode of DM as per the ethnic background of a prospective buyer. The study would also help telecommunication companies in Australia to optimize their marketing costs and strategies based on the forms of digital marketing that are more accepted by their customers. The proposed research is justified because it would provide an opportunity to explore the perception and needs of TSP consumers in Australia (Big Australian Report, 2012). Understanding such perceptions would help the respective TSPs to plan promotional and tariff offers for their end-users (Big Australian Report, 2012).

4.0. CONTRIBUTIONS TO THE EXISTING KNOWLEDGE

Australian marketers are embracing the concept of segmentation of promotional communications for reaching and engaging prospective buyers. This seminal research would identify the most effective DM strategy for promoting different telecommunication brands in Australia. Hudson et al. (2016) highlighted that the field of DM would undergo a radical transition by 2020. Such transitions are attributed to innovations in brand engagement and digital marketing strategies. The authors predicted that there would be five technology shifts in the field of DM within the next three years. On the contrary, most of the brands are witnessing poor outcomes of their app-based promotions. Hudson et al. (2016) stated that mobile applications are not delivering the appropriate level of customer engagement that underpinned the decision to invest in such app-based promotions. One of the major reasons for the lack of popularity of app-based promotions is attributed to the loss of confidential information. Prospective buyers are sensitive to the loss of confidential data. Hence, retailers and brand marketers are exploring different novel options for digitally marketing their products. The proposed research would add evidence-based literature to the field of DM across the telecommunications sector in Australia. Such evidence may be accessed by TSPs in Australia to design the content and context of their promotional strategies. The present study would help to understand whether DM strategies in promoting telecom products would be effective either alone or as a co-branding venture with other products/offers.

5.0. THE RESEARCH METHODOLOGY

The contemplated research would be conducted as a mixed-methodology study. A mixed-methodology study refers to the integration of qualitative and quantitative data (Creswell, 2003, Greene, Caracelli, & Graham, 1989, Creswell, 1999). Qualitative data refers to such data that are either expressed or available in qualitative terms, while quantitative data can be either expressed or measured in alphanumeric terms (Creswell, Goodchild, Turner, 1996). Mixed-methodology studies are assumed to be more viable and reliable (Creswell, 2003, Tashakkori & Teddlie, 1998). Moreover, the data for the proposed research would include both primary and secondary data. Different authors have emphasized the importance of integrating primary and secondary data for addressing a research question (Schutt, 2006, O’Sullivan & Rassel, 1999). Secondary data refers to the qualitative or quantitative findings that have been reported by the previous authors on the same or related topic. Secondary data can be obtained from systemic review of evidence-based literature and contents that are publicly available. Primary data refers to the information that is reported by the authors of a prospective research study. A systematic review would be conducted to collect the secondary data for the proposed research, while a cross-sectional study would be conducted to collect the necessary primary data (Thomas et al., 2004, Tranfield, Denyer, & Smart, 2003). On the contrary, various studies have endorsed the importance of undertaking appropriate content analysis before appraising the primary data. Content analysis helps to improve the reliability and validity of primary data (Pawson et al., 2005, Bearman & Dawson, 2013, Silva et al., 2015). Integration of primary and secondary data helps to address a research question comprehensively. Methodology triangulation is the process of integrating primary and secondary data to answer a research question. The methodology triangulation for the proposed study is presented in Figure 5.0.

FIGURE 5.0
Methodology Triangulation
Literature Review

Methodological
Structure

Interviews and Questionnaires
Content Analysis

Source: JTPL
5.1. Research Process Flow
The contemplated research will utilize the Standard Mixed Research Method as a process flow for completing the research (Figure 5.1). The research methodology steps for the proposed study are as follows:
FIGURE 5.1
UNIVERSITY 10-STEP Standard Mixed Research Method

Source: JPTL

Step 1: Preliminary Literature Review. The contemplated research begins with a survey of the relevant publications of seminal authors on the three scholarship domains as represented in Section

6.0. The literature review would provide a robust understanding of the different scholarship domains and their relation to each other. The preliminary literature review would also help to frame detailed landscapes within each scholarship domain, which would help to design the end-points of the contemplated research.

Step 2: In-Depth Review of Literature Part 1. An in-depth review of the seminal three scholarship domains along with the findings of quasi-professional sources will be undertaken to provide a solid academic foundation to the proposed research. The in-depth review helped to identify the literature gap that formed the basis of the proposed research.

Step 3: Content Analysis: An analysis based on data obtained from the professional documents including but not limited to annual reports, white reports, project documents, government policies, and economic and business review data, website analysis and others would be considered.

Step 4: Questionnaire Design &Testing; the development of the interview questions will be informed by and synthesized using the understandings gleaned from the review of the academic literature, quasi-academic technical documents, and content analysis. Based on the understanding of the existing theories and gaps in the academic and professional literature the questionnaires will be developed and tested with the assistance of volunteers. Attention would be paid to perfectly administer the questionnaire from a flow and timing standpoint and to ensure that questions are clear and concise and have a direct bearing on the focus of the contemplated research. The subjective responses would be codified quantitatively.

Step 5: Semi-structured Interview Process: stakeholders to be interviewed will be industry participants considered knowledgeable regarding the research. A minimum sample of 30 participants will be interviewed for each participating stakeholder level identified in table 5.2. Interviews will be conducted at a location convenient to the subjects and are expected to be approximately 30 minutes in length. Interviews will be tape recorded unless objected to by the participant in which case manual notes will be taken.

Step 6: In-Depth Literature review, Part 2: To add more expertise and specificity to the research analysis, a second more in-depth literature research review will be completed informed by the semi-structured interviews of Step 5 to further refine the scope and consideration of the contemplated research.

Step 7: Follow-up Interviews; to achieve a more specific view informed by the first round of interviews, along with the second more in-depth literature review, a smaller sub-set of 10 respondents from each participating stakeholder group selected from the first-round sample, will take part in more in-depth follow-up group interviews. The follow-up interview would help to identify the changes in the participant stakeholder group after administration of the independent variable. These interviews will seek to uncover deeply-held personal beliefs and understandings regarding the research at hand.

Step 8 and Step 9; Triangulation of Data and Gap Analysis: A triangulation of the research data from literature reviews, content analysis, and the interview processes will be considered and analyzed to determine whether or not the existing academic knowledge is congruent with the practical examination in the field on a commercial basis. The result of this analysis should determine whether a Praxis Gap exists between the academic (theoretical) and the practical (applied) domains. The Praxis gap would be explored through different statistical tests of inference. The statistical tests of inference would be implemented to test different hypothesis that are considered for the main and sub-research questions. The dependent variables for the various sub-research questions would include customer satisfaction level, sales and market share of different TSPs while the independent variables will include promotional offers extended by TSPs, design features of the apps and the telecom product itself, perception of benefits to the end-users, and personal attributes of end-users. The personal attributes would include age, gender, sex, and ethnic, cultural, religious, and lingual background of the end-users. The subjective responses of the stakeholders would be codified into dummy values (quantitative estimates). The codes would be cross-checked with Cronbach’s alpha for assessing their validity. The codes which are invalid or unreliable would be eliminated. The quantitative analysis would be undertaken through the Minitab (version 18) software. The statistical tests of interference that will be conducted to report the findings of the study would include correlation analysis, logistic regression, multiple comparison tests (t-tests, chi-square test, Mann-Whitney U test), and ANOVA. Logistic regression and correlation analysis would be conducted to explore the magnitude of the relation between the dependent and independent variables.

Step 10: Development of new conceptual Model or Framework: Building on the Praxis gap analysis in step 9, a thorough analysis of the existing models and frameworks within the academic domain will be considered. This analysis will evaluate whether the existing frameworks will sufficiently address the requirement for the practical application within the industry and whether they should be further improved or modified.

5.2. Stakeholder Schema & Participants

The contemplated research includes a field research component consisting of an administered semi-structured questionnaire to identified participants considered knowledgeable within their field. The potential participants are identified using a level-of-Analysis and Stakeholder Schema as indicated in orange and presented in table 5.2. The data that would be collected at each level is shown in parenthesis.

TABLE 5.2

Level of Analysis & Stakeholder SchemaLevel Type Name
MACRO Societal/Federal Ministry of Telecommunications, Australia
Ministry of Finance, Australia
(Data = Policies for TSPs and telecommunication industry)
MESO Institutional /
Organizational Telecommunication Companies
(Data= Business and Sales data, Marketing strategies, and Vision and Mission)
MICRO Individual Marketing Managers of TSPs, Designers of DM tools for the telecom sector, and customers of TSPs in Australia.
(Data= marketing strategies, perceptions, limitations, and strengths)
Source: JTPL

5.2. Assumptions and Limitations

Due to the restriction of time and resources to access data at the Macro level, the contemplated research would be limited to the data those are available at the Meso and Micro levels only. This is the primary limitation of the present study. On the other hand, the subjective responses of the study participants could be biased and falsified. Another limitation could pertain to under-representation of different generations, certain ethnicities, and specific age groups or cultures in the study population.

5.3. Ethical Considerations

The study participants those who would provide written consent would be only included in the study. Moreover, confidentiality and identity of the participants would not be revealed under any circumstances. Likewise, confidential or business secrets of any participating stakeholder would not be disclosed without appropriate permission from the concerned authorities. Finally, the concerned stakeholders should not be affected either personally or professionally by the proposed research. Seminal work of other authors would be appropriately referenced throughout the thesis to comply with the plagiarism policy of the participating University.

6. LITERATURE REVIEW

The main objective of the literature review would be to align the academic scholarship domains with the quasi-academic findings for understanding the perspective and implications of the proposed research. The model of literature triangulation is represented in figure 6.0.
Multicultural Theories

Scholarship domains
Academic focus

Consumer Behavior
Theories

Communication Theories

Digital Marketing in the Telecommunications Sector
Quasi-Academic

Source: JTPL

Fig 6.0: Represents Literature Triangulation for the Proposed Research

6.1. Consumer Behavior Theory

The Consumer Behavior Theory (CBT) is widely appreciated and accepted by marketers and marketing companies all across the globe. The theory underpins different aspects of an existing customer or a prospective buyer which influences his or her buying behavior. CBT is based on a psychological perspective and all models of consumer behavior pivot around such perspectives. Zielinski and Robertson (1982) stated that the physical, social and cultural environments that surround a customer are unique. Therefore; the manner of responding to such unique surroundings is also intrinsic within an individual. Hence, Zielinski and Robertson (1982) concluded that consumer behavior is primarily modulated through the interaction between their social and cultural systems. The social system refers to the social interaction between different individuals that are based on consent and dissonance. Social systems help to integrate relationships between consumers in a structured and ordered manner. Market segmentation aims to identify such ordered subsystems. The authors further highlighted the concept of “Crowd Consumerism’ based on the integration of social and cultural subsystems. Crowd consumerism refers to a behavioral action where prospective consumers simultaneously utilize a product or service based on a common desirable objective. The Purchase Decision Process (PDP) is also speculated to be influenced by crowd consumerism (Sakas et al., 2015). Different models of consumer behavior have been implicated in influencing marketing strategies.

Marshallian Economic Model

The model contends that individual buyers spend their income on goods and services according to the level of personal satisfaction that is assured by such products (Bettman, 1975). The theory was contended by Alfred Marshall and was based on the concept that the buying behavior of an individual is a function of his or her motivation and self-interest. The Marshallian Economic Model (MEM) is widely accepted in the field of marketing. The MEM contends the logical and rational norms of a prospective buyer. Unless the logical and rational norms of a prospective buyer are met, the chances of buying would be reduced.

Vebienian Social-Psychological Model

The Vebienian Social-Psychological Model (VBM) forms the core philosophy behind customer behavior theories. The theory contends that humans are social animals and their behavior is largely driven by the society in which they thrive. Hence, the contenders of the VBM assumed that the economic consumption of an individual is determined by their social influence. In this model, the norms of logic or need were secondary to the social prestige of prospective buyers. The VBM finds wide application in the field of marketing too. Marketers assume that any product or service that is launched would be acceptable to the prospective end-users or buyers if such products are related to the enhancement of their social prestige and self-esteem (Van der Wurff, Staalduinen , & Stringer (1989).

Pavlovian Learning Model

The Pavlovian Learning Model contends that any behavior in an individual is driven by four concepts; cue, drive, response, and reinforcement. Likewise, buying behavior in individuals was also attributed to be driven by these four concepts. The PLM assumes that the prospective end-users or buyers can be sensitized or conditioned based on the principles of classical conditioning. Hence, marketers have adopted PLM in designing value-added features in their products (Schiffman & Kanuk, 1997). Marketers contend that the introduction of value-added features would reinforce and drive the consumption of a product or service (Schiffman & Kanuk, 1997). As a result, the purchase or buying behavior in prospective customers would take place as a part of the reflex action.

Freudian Psychoanalytical Model

The Freudian Psychoanalytical Model (FPM) was elaborated and described by Kotler (2009). Kotler (2009) stated that the FPM assumes that the psychological forces shape one’s buying behavior unconsciously. Kotler (2009) further stated that an individual is largely driven by their instinctual needs which cannot be satisfied by themselves. The FPM forms the basis of market push strategy in driving product sales. Marketers contend that the prospective and existing customers of a product are largely motivated by both symbolic and economic propositions of a product. The symbolic and economic propositions of a product are assumed to drive the instinctual needs of the respective stakeholders.

Maslow’s Hierarchy of Need Model

Maslow highlighted that human behavior is strongly influenced by their tangible and intangible needs (Schiffman & Kanuk, 1997). Such needs range from low-level needs (biogenic needs) to high-level needs (psychogenic needs). The needs follow a typical hierarchy and unless the needs are satisfied as per their hierarchy, a prospective customer would be unlikely to exhibit a buying behavior. Hence, the Maslow’s Hierarchy of Need Model (MHNM) is based on the philosophy of intrinsic motivation. Marketers contend that if the intrinsic motivation of a prospective buyer is unmet, it will not translate into product sales. Hence, marketers should first satisfy the low-level or basic needs before addressing the high-level needs of their prospective clients (Schiffman & Kanuk, 1997).

In this study, the work of seminal authors Schiffman & Kanuk, (1997), Kotler (2009), Van der Wurff, Staalduinen , & Stringer (1989), Sakas et al. (2015), Bettman (1975), Runyon and Stewart (1987), Zielinski and Robertson (1982) who have made substantial contributions to the field of consumer behavior will be appropriately covered.

6.2. Multicultural Theory

The philosophy of any Multicultural Theory (MCT) is to understand and respond to the challenges of a culturally diverse population (Hofstede, 2002, Smith, 2004). The concept of multiculturalism considers the cultural, religious, and lingual diversity of different individuals or populations. The theory underpins that individuals belonging to different cultural, ethnic, religious, and lingual background would exhibit unique buying behavior (Hofstede, 1991, Hofstede, 2001). Moreover, such individuals would also respond differentially to marketing strategies or promotional communications, and develop unique and different expectations from a product. Hence, marketers should tailor their marketing strategies to create a uniform appeal to a cross-cultural audience. Likewise, a product that is marketed must address the needs of multicultural consumers. MCT aims to integrate individuals belonging to the minority and dominant groups to participate equally in societal interactions or deliverables. Moreover, the proponents of the theory contend that every individual belonging to a specific society should enjoy the components prevailing within that society in an equal and uniform manner. Different seminal authors have elaborated the concept of multiculturalism in marketing and sales.

Hofstede’s Cultural Dimension Theory

Hofstede’s Cultural Dimension Theory (HCDT) describes the dynamics of cross-cultural communication. The theory contends that the society plays a major role in driving values and behaviors of an individual. Hofstede developed the model of cultural dimension by using a factorial analysis. The theory proposed that cultural values within an individual stem from four dimensions; individualism-collectivism, avoidance of uncertainty, the strength of social hierarchy, and power distance index. Power distance index implicates the extent to which less powerful stakeholders in a society or a family or an organization drives the distribution of power (Hofstede, 1991, 2001, 2002). The concept of individualism-collectivism defines the degree to which an individual is integrated into the society. On the other hand, the uncertainty avoidance index endorses that individuals within a society or organization might tend to develop tolerance towards an event that is uncertain. Unless the elements of uncertainty are not addressed, such individuals would resist themselves from being integrated with the respective event (Hofstede, 1991, 2001, 2002). The philosophy of social hierarchy underpins the perception of an individual regarding their status quo in the society. For example, masculine status quo is linked to achievement, power, and heroism while feminine status quo is linked to cooperation, modesty, and caring (Hofstede, 1991, 2001, 2002). Hence, HCDT underpins most of the philosophies and principles in marketing. Moreover, it can be also contended that HCDT paves the platform for consumer behavior theories (CBT). However, there are other forms of MCT that also defines buying behavior (Fischer, 2009, Schwartz, 2007, Schwartz, 1994 De Mooij, 2015, Van de Vijver, 2008).

Theory of Conservative Multiculturalism

The Theory of Conservative Multiculturalism (TCM) contends that diversity is present and appropriately represented in the society. However, such diversities remain largely marginalized.

Theory of Liberal Multiculturalism

The Theory of Liberal Multiculturalism (TLM) contends that multiculturalism is a function of intellectual and racial equality. However, the theory fails to identify the power differ index that was recognized by Hofstede (Moussetes, 2007).

Theory of Liberal Multiculturalism

The Theory of Left-Liberal Multiculturalism (TLLM) overemphasizes cultural difference. The TLLM contends that a society is divided into various cultures based on the principles of neo-liberalism. The theory describes multiculturalism from a much narrower perspective compared to other MCT.
MCT in marketing proposes that marketers should identify the lingual, cultural, ethnic, and religious diversities of a target population for communication and persuasion (Petrakis, 2014). The theory acknowledges the diversities in perception, motives, and belief systems amongst consumers belonging to different cultural and religious backgrounds (Smith, 2008). Such factors have given birth to the concept of International marketing (IM). IM relies on different national data such as the GDP of the nation, socioeconomic background of its population, availability and impact of mass media, the power of social media, and the infrastructural support that is available for the successful launch and promotion of a product (Coelho, 2011). Demangeot et al. (2015) highlighted that international marketing should apply multiculturalism to understand the differences in product ownership, brand preference, and motives of buying across diverse and prospective customers.
In this study, the works of seminal authors Demangeot et al. (2015), Hofstede (1991. 2001, 2001), Fischer (2009), Schwartz (2007), Schwartz (1994), Van de Vijver (2008), Coelho (2011), Petrakis (2014), De Mooij (2015), and Moussetes (2007) who have made substantial contributions to the field of consumer behavior will be appropriately covered.

6.3. Communication Theory

The Communication Theory was originally proposed by Claude Shannon. The theory states that “the fundamental problem of communication is that of reproducing at one point either exactly or approximately a message selected at another point” (Shannon, 2011, p. 55). The communication theory was formulated based on the development of the information theory. Shannon portrayed that there are different elements of a communication; source, sender, channel, receiver, destination, and message. The source of a communication is considered as that cue which “produces a message or sequence of messages that are communicated to a receiver terminal’ (Shannon, 2011, p. 55). According to Shannon (2011), “sender” is the one which operates on the message that is generated from a source to produce a suitable signal over the communication channel.” Likewise, Shannon described “channel” as that medium which can convey a signal from the sender to a receiver. The “receiver” is referred as that stakeholder who performs inverse operations to the transmitter (Shannon, 2011, p. 55). Shannon (2011) stated that a destination is referred to that individual for whom the message is intended (p.55). Finally, “message” is the communication, concept, or statement which is encrypted through verbal, written, recorded, and audio-visual modes and reaches the recipient (Shannon, 2011, p.55). However, the Communication theory of Shannon was challenged and criticized by different authors (Dainton & Elain, 2011) because there was no provision for feedback or entropic elements in the Communication theory of Shannon (2011). Such authors contended that feedback plays an important role in framing or tailoring communications. Likewise, it was contended that entropic elements play a key role in modulating the communications in a positive or a negative manner (Dainton & Elain, 2011). The criticism of the communication theory forms the basis of marketing communications.

Varey (2002) stated that the success of any business depends on marketing and innovation (p.5). Marketing is the process of “guaranteeing the conditions and content of any communication or information that allow demand for need fulfillment to be met through production of goods and services” (Varey, 2002, p.3). The authors contended that purchase is the result of an effective integration between a consumer and a manufacturer. In this regard, the authors highlighted that marketing is the key to such integrations. On the other hand, Varey (2002) stated a marketing communication is the heart of any marketing. The advent of electronic media has evoked significant transitions in the content and delivery of marketing communications. The authors further stated that “profit is made from people, and not products” (p.4). Such statement implicates the importance of marketing communications. Varey (2002) highlighted that any marketing communication should consist of two parts; expression and impression. The expression refers to the content and mode of delivery of communication, while impression refers to the process of learning the needs, values, and apprehensions of prospective customers. Hence, Varey (2002) stated that any marketing communication for a product or service should be based on the “impression-expression-impression’ (p.3). Hence, Varey (2002) supported the inclusion of feedback and entropy components in Shannon’s Communication Theory.
In this study, the work of seminal authors Varey (2002), Kotler (2000), Dainton & Elain, (2011) and Shannon (2011) who has made substantial contributions to the field of communications theory will be appropriately covered.

Synthesis

The proposed research aims to develop a model framework within the field telecommunications marketing industry of Australia by focusing on the principles of consumer behavior, multiculturalism, and communication theories that might drive DM strategies within the target industrial sector.

6.4. Digital marketing and the Telecom Industry

Digital marketing strategies in the telecom sector could be viewed as a platform for driving the sales of telecommunication products and services. The telecom sector across the globe is striving to implement novel and innovative marketing strategies to gain market share by emphasizing on customer engagement. Different seminal authors have highlighted the importance of various DM in expediting marketing and sales for a wide range of products and services. The following paragraphs are attributed to the development of seminal knowledge on the importance of DM in driving the sales and market share of products or services across the telecom and allied sectors. The telecommunications industry has undergone radical transitions over the past two decades. The telecom industry has expanded from its primary role as a communication provider to a provider of different value-added services. A Global Telecommunication Study (2016) reported that the global telecommunications industry is growing at the rate of 5% CAGR. However, there has been a significant change in the trend of consumerism for telecom brands or services during the past decade. Hence, telecommunication companies are forced to diversify their service portfolios. Such diversifications led to the genesis of app-based digital marketing strategies. The report further highlighted that TSPs should engage in co-branding with other retail products and must implement innovative marketing strategies to increase their visibility and subscription across prospective end users. Such philosophies led to the introduction of ARBM and allied digital marketing strategies.

The concept of ARBM is strongly aligned with the principles of marketing. The ARM provides an opportunity to marketers and marketing companies to exploit different elements of interactivity (Keith and Armstrong, 2010). Singh and Pandey (2014) highlighted that ARBM is an impactful platform for New Age Customer engagement. Singh and Pandey (2014) stated that “if only a customer is truly engaged with a brand and that too with a positive feeling about it, it would result into or increase the sales of that brand’ (p.24) Biocca et al. (2007) highlighted that the knowledge of objects or situations that are simulated by AR is quite critical and beneficial for end-users. The major benefit of the ARM is that it can engage customers and reach them at their convenience. Alkhamisi and Monowar (2013) highlighted that global giants like Coca-Cola and Absolut Vodka had created advertisement sensations through ARBM in Germany and Spain respectively (p. 26). In another study, Yasmin et al. (2015) concluded that online marketing, e-mail marketing, and social media marketing were positively correlated with increased sales. Likewise, Gamification” is viewed as a powerful tool in meeting the marketing objectives for a specific brand (Terlutter, & Capella, 2013, p. 95). A study reported by the Mobile Marketing Association (2013) highlighted the importance of gamification in improving brand loyalty for Coca-Cola across Korean youths. These findings suggest that innovative dm strategies are implemented across various industries for driving customer engagement and product sales. Such findings are also applicable to the DM strategies that are implemented by Australian Marketers.

The Big Australian Report (2012) exhaustively highlighted the scenario of digital marketing in Australia. The report suggested that the Australian consumers are relying more on social, mobile, and web-based Media for accessing and sharing promotional information. Although there has been a radical increase in traffic over web-based Medias, online sales account for only 4.9% of the total retail spending. The report further highlighted the vision and mission of Australian marketers over the next 12-months post-publication of the findings (Big Australian Report 2012, p.7). Approximately 74% of the marketers aimed to improve targeting and segmentation, 61% of the marketers aimed to improve return on investment analysis, 52% of the marketers aimed to improve database-based growth, 50% of them aimed to enhance cross-channel usage, and 48% endorsed on increasing social media networking (Australian Report (2012, p.9). However, 43% of the digital marketers wanted to improve automation and innovation in the promotional and marketing communications (Big Australian Report (2012, p.5). Such inclinations were driven by the multicultural, multilingual, and multigenerational dynamics of the Australian consumer population. Different authors have emphasized on the importance of multicultural marketing (MCM) in driving customer engagement and product sales.

Dememgeot et al. (2015) highlighted that the key feature of MCM is to enhance the value proposition of a product in specific cultural groups (p.118). Kotler (2013) stated that the marketing mix of an organization and the 7C’s of marketing play a critical role in designing a successful marketing strategy. Burrell (2015) highlighted that apart from the content and context of promotional communications, the mode or channel through which such communications are extended determines the success of marketing to a cross-cultural audience (p.9). The authors further stated that the concept of multiculturalism should be incorporated into the overall marketing strategy for promoting a specific brand. Such initiatives would improve trust and reduce the likelihood of perceived risk across concerned stakeholders. Kotler (2013) also reflected that the buying behaviors of prospective consumers are strongly influenced by their cultural, social, personal, religious, and psychosocial background. De Mooij (2014) highlighted that an individual’s cultural background significantly influences his or her buying decision. The authors stated that cultural background of an individual affects communication channels, the content of the communication, consumer behavior, and marketing and advertising standards (De Mooij, 2014).
In this study, the works of Global Telecommunication Study (2016), De Mooij (2014), Kotler (2013) Dememgeot et al. (2015), Burrell (2015), Terlutter, & Capella, (2013), The Big Australian Report (2012), Yasmin et al. (2015), Biocca et al. (2007), Alkhamisi & Monowar (2013), and Singh & Pandey (2014) who or which made substantial contributions to the field of digital marketing will be appropriately covered.

Synthesis

The scholarly academic domains reflected that consumer behavior depends on the sociological, socioeconomic, and cultural attributes. Hence, marketing communications should be tailored or designed to meet the sociological, socioeconomic, and cultural attributes of prospective customers. The seminal literature from the quasi-academic sources highlighted the opportunities and challenges that are confronted by the global telecom industry and the role of DM in overcoming such challenges. The quasi-academic sources highlighted that digital marketing could be used as an effective tool to promote products and services. Such assumptions also hold true for the telecommunications industry. However, telecom companies should understand the needs of a multicultural audience before launching their products or services.

7.0 RESEARCH PLAN The interview process for the target stakeholder groups will be implemented between July and September 2018. Each participant will be allocated 30 minutes for the interview sessions. During this period, different content that are publicly available on the telecom industry of Australia would be also collected. The participants (owners of smartphones) for the proposed research would be selected through an online invitation. The study participants would be further sorted based on their age, sex, ethnic, lingual, cultural, and religious backgrounds. The endpoints that would be explored in the primary and secondary data include subjective responses of the study participants on their perceptions on different forms of DM (including ARBM), social media traffic, click rates, subscription trend of the respective TSPs, sales trend and visibility of co-branded products, brand loyalty with the respective TSPs, data usage pattern, marketing plans for the future, contribution of the telecommunication sector to the net GDP of Australia, and historical data on the telecom industry in Australia. The statistical tests of inference (t-tests, ANOVA, Chi-square tests, regression models) would be appraised based on the acceptance or rejection of the null hypothesis (Ho) (Armstrong, 2007, Nickerson, 2000, Wilkinson, 1999). All statistical tests would be interpreted at the 0.05 level of significance (Lehmann, 1997, Branch, 2014).

8.0 RESEARCH TIMELINE The contemplated research would be conducted over a period of 36 months. A breakdown of the milestones and time to achieve such milestones is represented in table 8.0. Although the timeline planned is feasible and tangible, however; it might change due to unforeseen situations that are beyond the control of the researcher. The major unforeseen situations that are anticipated is the timely availability of the study participants. Since the study participants would not be provided any financial stimulus, they would not be bound to be controlled by the investigator. However, every care should be taken to accommodate such variations within the framed timeline. In extraordinary situations, the timeline may have to be extended for six months. However, such extensions would increase the validity and reliability of the findings.

9.0. RESEARCH BUDGET

The cost of the proposed research is estimated to be 12,700 U.S. Dollars. The total fiscal implications for the proposed research would be privately funded by the candidate. No additional funding would be required from the University. The funding for the proposed research is already available and the study may be initiated immediately. A breakdown of the financial implications for the proposed research is presented in Table 9.0.

Table 9.0Research Budget
Item In U.S. $
Questionnaire Production and Digital Recording 500
Data Bundles and Software 500
Travel Expenses 5,600
Books, Articles, and Stationeries 1,000
Hotel Accommodation 2,400
Seminars and Conferences 1,850
Miscellaneous Expenses 850
TOTAL 12, 700
10.0. THE PROPOSAL APPROVAL SECTION

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