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The concepts above characterize the various periods and the basic social, economic and political changes which have occurred in the developed countries in leaving century.
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Industry Background
The last results have shown that using Internet technologies in marketing can bring real economy and profit. It is connected with the big benefits and conveniences for both consumers and companies. In the approaching global computerization which approach is planned for the near future, the marketing role in the Internet considerably will grow. It also causes an urgency of the theme chosen by the author.
As object for this research proposal I chose Print Express Company which carries out its activity in Moscow since 1999.
The impact of these research is hoped to be the conclusion about the importance of application by the Russian companies of global network possibilities in marketing activity and increase of e-marketing effectiveness.
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Research aim, research questions or hypotheses and objectives
The problem of e-marketing economic effectiveness pursues two aims:
1. To prove efficiency of e-marketing activity at a working out or decision-making stage.
2. Definition of final effectiveness of e-marketing activity after the termination of the certain period of time, proceeding from actually reached results.
Definition of economic e-marketing effectiveness is necessary to reveal also the factors influencing an indicator of e-marketing effectiveness, their interdependence, and character of their influence on an efficiency indicator.
I need to research the following questions:
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Is e-marketing an effective activity compare to traditional way of marketing?
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What are the ways to increase effectiveness of e-marketing activity?
To define e-marketing effectiveness it is necessary to solve out the next objectives:
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To estimate the company’s marketing activity in the following directions: marketing probes, market segmentation and goods positioning, the analysis of the organization of marketing, e-marketing planning, e-marketing working out.
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To define criteria concerning which process measurement in realization of e-marketing plan (control of e-marketing activity results) will be carried out.
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Definition of the expenses connected with carrying out of e-marketing strategy.
Directly indicator e-marketing effectiveness is defined by comparison of the reached effect as a result of marketing activity (which more often, but it is not obligatory, is expressed in the form of profit or the income) to the expenses which have caused this effect.
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Research Methodology
In order to define effectiveness of Print Express Company marketing activity it is necessary to carry out an estimation of marketing effectiveness regularly.
At the considered company the complex estimation of marketing activity was never carried out. Therefore within the limits of the given project I attempt to estimate quality of marketing activity of Print Express Company in order to achieve my research objectives.
In order to estimate marketing activity effectiveness of the company named above I chose direct method of estimation by making a questionnaire (the Appendix 1), containing 15 questions on performance of functions. Each question has 3 options to answer which are estimated in points from 0 to 2. The Maximum quantity of points on each question is equal 2. On the basis of the received answers the points estimating efficiency of various directions of marketing activity have been put (Appendix 2).
I carried out the research in Print Express Company Marketing and Sales department directly.
Given results testify that despite lacking a system and structure of Print Express Company’s e-marketing activity.
1. Lack of e-marketing strategy. Delivering information is a service that needs to be focused on definite market demand backed by appropriate product, strongly targeted customers and becoming pricing model.
2. Unadjusted product strategy. When Print Express Company was launching its product the market it was targeting was still in pregnancy, it was nascent market. Established companies who really had understood the importance of e-commerce in the future were focusing on in-house solutions developing. Growing companies hadn’t realized this importance yet, but those who had were open to experiment with simple and low-cost decisions. And these two groups of customers were on the extreme edges of the market and making decision model.
3. Unjustified pricing model. Firstly, the price of the product for the growing and still scaring market is too high. Secondly, the pricing model targets long-term partner relationships, that was to ealy for the nascent market that preferred short-term relationships.
4. Wrong target market. Customers that were mostly targeted by the company as a closer bunch to its well-established parents were generally not making as aggressive move to the Internet as were some of the smaller retailers. Moreover, the well-established the company’s product decision was too complex for usual users. Most virtual companies that really needed company’s product were less sophisticated from a business infrastructure standpoint and did not yet see the need for an ERP-like system.
Thus, it is possible to establish that financial and economic indicators of Print Express Company would be much better if centralize marketing functions, strengthen control over marketing activity and behind an expenditure of budgetary funds. Proceeding from it we could recommend:
1) To enter the reporting on planning, organizing and controlling carrying out of marketing actions. It will allow to simplify process of an estimation of marketing activity and to save money resources on carrying out of inefficient marketing actions.
2) To begin working out of electronic information base for simplification of work with clients, to create «the book of the client» in which to skid all nuances of work with the given customer.
3) It is obligatory to fix the reason on which the client has addressed Print Express Company services, and also – a source of the company’s information.
The ways to increase the effectiveness of e-marketing in Print Express Company.
1. Web site
As one of the most significant ways to increase the effectiveness of e-marketing at any company is to consider optimization of its communicative policy. The communicative policy is a course of actions of the company, directed on planning and realization of interaction of firm with all subjects of marketing system on the basis of use of a complex means of Internet communications.
Marketing communications in the Internet can be divided into two kinds:
a) The communications connected with creation and perfection of the goods and its behavior in the market;
b) The communications connected with advancement of the goods.
The company Web-site usually acts as the central element of the communicative policy in the Internet. The Web-site gives the companies a wide number of additional possibilities, in addition to accessible earlier communication services. Their main feature consists that now the company can give to users additional service: information, to sell the goods and services.
2. Application of Internet advertizing elements
Advertizing today is one of the most widespread tools of a communicative policy. The Internet is an effective remedy of advertizing. It is connected with the multimedia nature of its environment, allowing to use all possible kinds of finishing to the information user. The Internet is the interactive environment that gives to the advertiser an effective mode of the focused influence on target audience and concrete users.
The Internet as the advertizing tool considerably differs from traditional advertizing means not only the properties, but also applied approaches.
3. Application of e-marketing elements
When the Internet only started to develop actively, the e-mail marketing was usually used for advertizing only. But, gradually, this technology has started to draw attention of serious firms which considered it in the beginning as cheaper alternative compare to mail. With growth of Network users, many have started to realize e-mail marketing. Falling of efficiency of the banner advertizing caused by explosive growth of number of banners, and also, not in the last instance, occurrence of effective programs.
Unlike banners which are used as a mode to draw attention of potential clients, the e-mail can serve variety of the purposes: sale of production and services, by use of specialized mailings, a fast and convenient mode of dialogue with clients, especially if they live in other time zone.
Using electronic mailing makes possible:
a) to suggest the interested organizations to become your dealers or distributors;
b) to inform potential buyers on possibility to get party of your goods or to use services of your company;
c) to invite your partners and colleagues to exhibitions, meetings, seminars, banquets, presentations, press conferences;
d) to send the newsletters, press releases;
4. Creation marketing information system.
The majority of the companies have the representations in the Internet (web-sites or easier pages) where the information on their activity, offers, requirements and so forth is presented. The Internet gives fine possibilities for carrying out marketing competitive investigation.
To survive in high competitive conditions Print Express Company should trace all changes in the market: requirements of buyers, a parity of the prices, actions of competitors, creation of new products, and introduction of new elements. In order to solve these marketing problems Print Express Company should possess system of reception, storage and the analysis of the marketing information that called marketing information system (MIS) – system of actions for gathering, sorting, and analyzing of the marketing information.
The basic advantages of using MIS: a) the organized gathering of the information; b) wide coverage of the information; c) the prevention of crises in firm activity; d) coordination of marketing plans; e) high speed analysis; f) representation of a quantitative results.
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Timescale
Week 1 – Week 3 Choice of research topic and literature review
Week 4 – Research problem – clarification of specific question
Week 5 – Assumptions and hypothesizes
Week 6 – Identify concepts, constructs and models
Week 7 Data analysis
Week 8 Data analysis
Week 9 – Interpretation and conclusions about the research problem
Week 10 – Review and improvements in problem solving
References
marketing globalization internet effectiveness
1. ZONGQING, Z. 2004. E-Commerce and Information Technology in Hospitality and Tourism. Canada: Thomson Delmar Learning.
2. KRISHNAMURTY, S. 2006. Contemporary research in e-marketing. London: Idea Group Publishing.
3. NANSI, S. and MURTHY, V.K. 2003. Architectural issues of Web-enabled electronic business. London: Idea Group Publishing.
4. ZHIVETIN, V.V., SAMOHVALOV, V.L., CHERNOV, N.P., FERAPONOVA I.A. 2008. E-marketing as the way to increase profitability. Marketing. 36. p. 74.
5. TUGAN-BARANOVSKY, M., BALABANOV, L.V. 2006. Effectiveness of marketing: methods and results. 2-nd edn. Moscow: Finance and statistic.
6. JASHEVOJ, G.A. 2007. Practical marketing. 5th edn. Moscow: UNITY.
7. ASSEL, G. 2007. Introduction to marketing. 3rd edn. Moscow: High school of economics
8. KOTLER, P. 2002. Marketing management. 1-st European edn. Essex: Pearson Education limited.
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