Impact Of Silo Effect On Digital Marketing In Nepal

Research Overview

Silo Effect and its impact

When there is a disparity and a difference in the overall goal of the different sections of the same organization then it is called Silo effect. For example: if the marketing department of a particular business organization does not share the same vision with the sales or the administration department of the organization it is said to have silo effect. All the departments of any business organization should strive for an overall goal rather than just focusing on their own requirements and goals. In the case of silo effect the communication on between the departments reduce significantly to the limit that it starts hampering the sales and profit of the business. The Silo Effect confines the communication process in between the members of different departments of the enterprise, hence leading to a significant reduction in the productivity. It is basically a communication gap.

Silo effect is more evident and prevalent in marketing sector. For example: if a presentation is not followed up by a reaction feedback or an advertisement printed on a newspaper do not have the telephone number.

As digital marketing is a direct contrast of the traditional forms of marketing and concepts there is a lack of awareness about the reach, scope and potential of the digital market. This lack of awareness creates a talent gap and a communication gap in between the new and the old thinking resources of the organization. 

Internet has bound the world together like no other phenomenon ever has. The gradual decrease in the cost of installation and data internet has gained immense popularity among the modern millennial and the urban population. With the advent of modern technology and the increased usage of internet in the past few years traditional marketing techniques has also evolved itself to make products or services more relevant to the modern world. Digital marketing is one such relatively new concept in the marketing world. And the popularity of digital marketing among the companies is growing every day (Bhowmik and Bag 2017).

Digital marketing is the process by which business organization promotes their products services or brands through one or more forms of electronic media. Unlike traditional forms of marketing, digital marketing uses medium and methods of communication that facilitate an institution to study marketing campaigns and analyze the operations in almost real time.  

Some of the ways internet is used for digital marketing are search engines, websites, social media, email, and mobile apps. Though internet is the most important medium of digital marketing there are several other ways as well like text messaging, electronic billboards, push messaging, podcasts etc (Holliman and Rowley 2014).

The study includes gaps in the understanding of the economy of Nepal and also gathering information about the infrastructure related to digital marketing.

Digital marketing is a growing field with a lot of opportunities for the young generation of new employees to explore their creativity and knowledge. In Nepal, the growth of digital marketing will not only help the companies to promote their brands, products or services in a more efficient way it will also generate employment. Digital marketing is the current trend now and is also argued to be one of the most effective forms of marketing. As digital marketing is a new trend there are very less people who are actually skilled and trained to handle the marketing in the digital sphere. This is the main reason for the gap of communication that creates in between the departments. Most of the time people do not understand the effects and the outreach of digital media, they also are unaware of how to measure and analyze data that has been received as feedback from the areas of digital marketing. This report will enable in coming up with new more minute problems faced by the industry in Nepal. It will also help in receiving a feedback of the challenges and how it can be overcome by the authorities of Nepal. Most of the research related to the topic is based on consumer behavior; this report adopts the point of view of the firm to smooth the progress of an understanding of digital marketing and social media usage as well as its advantages and disadvantages (Bharadwaj et al. 2013).

Silo Effect and its impact

The purpose of this research is to analyze and calculate the popularity of the digital marketing in Nepal and there by investigating the impact of the silo effect on the idea of digital marketing. The study will also analyze the challenges that are being faced by digital marketing and within the organization due to communication gap and how those challenges can be overcome.

• To critically analyze the silo effect in the organizations of Nepal, the cause, impact and the way it can be faced by any organization in terms of digital marketing
• To review the literature that is available on Silo effect and on digital marketing separately
• To determine the outreach of information technology in the country
• To calculate the impact of digital marketing on the consumers of Nepal
• To analyze the digital marketing challenges in Nepal and to determine the best and the most effective digital marketing medium in the country
• To provide recommendations to promote and to grow digital marketing in the country
• To find solutions to avoid Silo effect within an organization

Silo effect in an organization

According to Bevc et al (2015) lack of coordination and integration among the marketing department of any organization rather than making a network is an impact of the silo effect. One strategy and one plan will not suffice for the organization’s marketing goal rather a plan of action is required to be formed along with the plan of the feedback and review.

 It is important to breakdown the silo effect for the business to run smoothly. Communication is an integral part of everyday operations of the business. In this report the author has discussed about the causes of the effect. The homogenous philosophy of the people in a department of an organization may give rise to this effect. This effect is also caused because of the divided management policy of the organizations which lead to different leaders of the departments and their own thinking process.

According to Tiago and Veríssimo (2014), consumer behavior has changed over the past few years owing to the fact that the lifestyle and the preference of human beings have also changed. To cater to this change in the consumer behavior the marketing approach also needs to evolve and be at par with the opportunities that the new technologies are providing. Due to the increasing digital empowerment of consumers the digital marketing is gaining popularity.  

Tiago and Veríssimo (2014), talks about social media, they say that the impact of social media has a huge impact o the lifestyle of individuals. If the target market of the firm is in social media then the company also has to make its presence felt in the social media and to keep up with the potential customers and to draw their attention the products and services. If the organization is looking forwards to establish jointly satisfying long-term relationships with the sales people and consumers digital marketing strategy is inevitable. They also come to a conclusion that competition has also driven companies to dive into the phase of digital marketing.

On the other hand from the perspective of the consumer Stephen (2016), sates in his report that the effect of digital marketing is more on the products or services which have the target market of people belonging to the age group of 18-40 as these are the people who are more likely to use and be well verse with the internet, mobile phone and electronic media. The author discusses five different research themes that have emerged in the recent consumer research on digital marketing and social media. (i) Consumer digital culture, (ii) advertising, (iii) impacts of digital environments, (iv) Mobile, and (v) online WOM and reviews.

There are a lot of companies who have now even launched their products or services on the digital marketing platform as they have found in consumer research that it is the most effective way to reach and communicate with the consumers. One of the most advantageous features of digital media is that it can facilitate real time communication with the consumer. This helps the company get an insight about the consumer behavior and their requirements.

Digital marketing

Stephen (2016), has stressed on the importance of the last theme, which is online word of mouth and reviews. In the recent past, online reviews have received a lot of impact on the popularity of a brand or a product or service.

According to Leeflang et al. (2014), have stated that coping with the lack of knowledge and talent, making room for organizational design, and the implementation of the planned moves  are the scope of improvement for companies across sectors. There three types of challenges that marketing face in the digital era. First of all the possibility to produce and make use of deep customer insights, secondly administering the wellbeing of the brand and reputation in a marketing environment where social media plays an important role; and thirdly assessing the effectiveness of digital marketing.  Leeflang et al. (2014), mentions that there is a shortage of skilled and trained professional in this industry as this is a relatively new sector. There is a need to change the thinking space of organizations so that the initiatives that are taken in the digital marketing front are more effective and are more impactful. There is also a need to create actionable metrics.

The study in this report is going to answer the following questions:

R1. How does silo effect impact the management of an organization?

R2. What are the most effective medium of digital marketing that are used by popular business enterprises of Nepal?

R3. How can the challenges regarding digital marketing be faced by the respective authorities of Nepal?

R4. How does the silo effect impact the digital marketing sector of Nepal?

R5 How is the silo effect a threat towards the promotion of digital marketing?

Types of Research:

There are basically two types of research that can be conducted on the basis of the procedure of the findings they are secondary and primary research.  The secondary research will be conducted by deriving data and information that are already available in the topic. These data are then reviews and analyzed to shrunken the information to the ones which are important and will have an impact in the study (Bernard, Wutich and Ryan 2016).

The findings can be of two types qualitative and quantitative. To compare and analyze the effect and the relevance of silo in the organization a qualitative approach is required. Interviewing the management of the organizations will only not suffice the study. An insight form the employees of the enterprise are also required to be taken into consideration. To analyze the impact of the silo effect on the digital marketing the marketing department of the organization has to be interviewed. Insights of this research can also be gathered by talking to small marketing and advertising firms of Nepal.

The secondary research will form a base to conduct primary research on the topic. Interview of relevant people will be conducted to gather insights about digital marketing and its impact on the consumer base of the selected organization. An overview of the infrastructural availability of digital marketing and its reach in Nepal will also have to be studied to get a full insight about the situation and the consumer behavior in Nepal (Zikmund et al. 2013).

Research Gaps

For the research in the topic few preliminary interviews have to be undertaken with the authorities in the management of the organization regarding the phenomenon of silo within the organization and how relevant or prevalent it is within the management and how does the company deals with such a situation if it has previously occurred in the enterprise. Insights need to be derived from people about the popularity of digital marketing in the country which can be derived by interviewing marketing firms and advertising agencies in the country.

Then with the information analysis and conclusion will be derived as to from an idea about the popularity of digital marketing in the country. Surveys have to be conducted with the common public to understand the reach and the impact of the usage of information technology in the process (Hair 2015).

For the purpose of secondary data, information can be gathered from the hard copies of literary journals that are found in the relevant topic as well as the soft copies that are available. Primary data collections tools are mostly telephonic interviews, surveys, online questioner for the people of Nepal and the relative authorities of the topic of research (Silverman 2016).

The reports and studies that are done in the past will give an insight about what digital marketing is and what are the causes that drive the popularity of digital marketing in the industry. The secondary research is also going to give an insight about the silo effect in an organization and how prevalent it is in the present scenario. As digital marketing is a relatively new topic is it possible for the traditional marketing departments of an organization to adapt to the changes of the new generation. It will also put the variables of the situation in place to understand the situation better and hence form a fundamental idea about how to proceed with the findings of the information gathered. The common challenges faced by the marketers in the digital marketing front as well as the gaps which are to be filled by the courses of digital marketing in training people for the purpose will also come into light (Lewis 2015).

Time is a constraint as for any kind of research as the people who have to be contacted for the purpose of the primary research of the topic are of authorities and it is difficult to arrange time for an interview with people of that stature.

Another prime concern of this research is the fact that the place of research is geographically far from the author and hence the insight that is going to be derived has to be based on the information that the author will receive from the interviews and the surveys. The ability of the author to deduce a conclusion and understanding the situation is all dependent on the information gathered.

In case of discussing the silo effect the management of the organization may not be willing g to give out sensitive and internal information about the management of the organization because in a way the silo effect is actually a failure of the management to organize and strategies tactfully. Hence the questions and the surveys have to be in a way that a conclusion about the present condition of the company’s management can be concluded.

Commonly faced challenges by the authors of a research paper are the method of collection of the data. If the methodology and the approach of the research go wrong then the entire topic have to be re done which will further extend the deadline of submission (Fellows and Liu 2015).

Bernard, H.R., Wutich, A. and Ryan, G.W., 2016. Analyzing qualitative data: Systematic approaches. SAGE publications.

Bevc, C.A., H. Retrum, J. and M. Varda, D., 2015. New perspectives on the “silo effect”: initial comparisons of network structures across public health collaboratives. American journal of public health, 105(S2), pp.S230-S235.

Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward a next generation of insights.

Bhowmik, S. and Bag, S.N., 2017. PROSPECTS AND SCOPE OF DIGITAL MARKETING IN INDIAN INDUSTRY: A REVIEW. International Journal of Management Research and Reviews, 7(4), p.490.

Fellows, R.F. and Liu, A.M., 2015. Research methods for construction. John Wiley & Sons.

Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.

Holliman, G. and Rowley, J., 2014. Business to business digital content marketing: marketers’ perceptions of best practice. Journal of research in interactive marketing, 8(4), pp.269-293.

Leeflang, P.S., Verhoef, P.C., Dahlström, P. and Freundt, T., 2014. Challenges and solutions for marketing in a digital era. European management journal, 32(1), pp.1-12.

Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), pp.473-475.

Nair, H.V., 2015. Digital marketing: a phenomenon that rules the modern world. Reflections-Journal of Management, 5.

Silverman, D. ed., 2016. Qualitative research. Sage.

The role of digital and social media marketing in consumer behavior. Current Opinion in Psychology, 10, pp.17-21.

Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why bother?. Business Horizons, 57(6), pp.703-708.

Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods. Cengage Learning.

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