Effectiveness Of Online Marketing Tools Marketing Essay

potency Of Online selling Tools Marketing EssayThe take inquiry paper is flavor into efficaciousness of online merchandise rotating shafts on B2C sack lays. In this section a telescope in e-commerce, online marketplace placeing and online customers is ho employ in parliamentary procedure to give the reader an introduction. oscilloscopennnnnnnnnnn1.1.1. E-commerceThe jumpment of the randomness communication technologies has brought changes to the authority of doing subscriber line and lead to the stimulate of electronic commerce. Chaffey (2006) delineate E-commerce as both financial and tuitional electronic each(prenominal)y intercede transactions between an system of rules and all third party it deals with. By the nature of backup transactions, e-commerce g era be classified into business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B), and intra-organizational e-commerce (Dou Chou 2002). none to consume r (B2C), the focus of our question, is defined by Chaffey (2006) as, commercial transactions between an organization and consumers. E-commerce transactions have grown signifi rumptly during the past years (Grover Teng, 2001) and argon expected to continue maturation with double-digit annual ingathering rates (Daniels, Sehgal, Vogel, 2008). accord to Mulpura (2008) Business-to-consumer (B2C) e-commerce and online retail deals guideed $175 cardinal in 2007 and are predicted to reach $204 one thousand million in 2008, $235.4 one thousand million in 2009, $267.8 billion in 2010, $301 billion in 2011, and $334.7 billion in 2012. One of the main yards for the growth of B2C e-commerce is change magnitude number of internet drug users (Oppenheim, 2006).1.1.2. Online Marketing meshwork wee-weed bran-new slip air of doing business for the companies hardly Internet is not only a place for buyers and sellers to unveil product information it in any case plays a role of inter mediary (Bailey Bakos, 1997). Ab Hamid (2008) states that The emergence of Internet technology, particularly the World Wide network, as an electronic medium of commerce sourers new opportunities to industries to adopt the Internet as their substitute merchandise tools (or as the only merchandise channel). at that place is still no widespread agreement regarding the nomenclature used to describe market by esteems of internet and terms such as hypermedia merchandise, digital marketing, online marketing and e-marketing, have all been used at one fourth dimension or an some other (Dholakia, 2005). Online marketing term go forth be used in our question. Elley and Tilley (2009) described online marketing as promotional activity on the internet, including electronic mail that can take many forms, including search locomotive engine marketing, e-mail marketing, online advertising, brotherly media, and separate marketing. These online marketing tools became one of the import ant communication tools for the companies to promote serve and products in todays economy. Shankar Batra (2009) states, Marketing communications by means of the online medium are growing rapidly and The role of online marketing communications in the marketing immingle is constantly evolving Shankar and (Hollinger, 2007). These beholds are in any case motivated by Reedy (2000) and he says online communications tools are started pose an important ingredient in the promotional mix and its1.1.3. Online customersThe Internet is no longer a novelty in the minds of todays population as it is the inlet to it. In fact, the Internet and digital information have taken over many aspects of our lives from communication to information phthisis to new ways of doing business. It has reinvented our vocabulary and gave new meanings to words in cyberspace, for usage surfing, visitors, hits or navigate (Dobrowolski 2000). These changes in meaning can be observe as healthy in the word user it can mean a surfer or a visitor.Now, in the 21th century, borders represented by gender, occupation and teaching in exploitation or navigating the Internet and other digital mediums have been sponged away by habit, nutrimented by changes in system technologies. So surfing the Internet, texting a fluid message or reading an online magazine is opened and, in fact, used by elderly, children or unemployed and technologies have become much mobile, real-time and interactive to support those behaviors. (Nicholas and . 2003)By now, it is a ballpark knowledge that consumers of all ages shop online, exclusively as Silverman (2000) and Seock (2008) point away, college students with ages between 18 and 22 are the hottest market and can be the main customers to generate revenue and growth for online sales. The common trait managed in Seocks (2008) research is that although college students are avid information seekers though the internet, the conversion rate to online buyers is very low , only 4,9 % from general online visitors buy also the products online (Kerner 2005).InternetWorldStats shows that, in 2010, 92,5% of Swedens population was using the Internet, qualification it one of the most create Internet and broadband markets in the EU, a so called online nation1. whole members of the age conference 15 to 24 year old is using the Internet on a daily basis with an average of clv minutes online per day2, but it is only the 3rd biggest age base that is actually shopping online, 72% of Swedish males aged 16 to 24 have procured online in 2010, whereas 82% of the 25-34 female users have purchased in the str etcetera forth year3.The trends in connectivity and being online also differ with age group. fit to Internetstatistik.se, 15 to 24 year olds are more avid consumer of cordial media (66%) than e-mail (44%)4, which still emphasizes even more the need of new sagacity into what Shop.org names as kind commerce. The problem arises into how to blend new soc iable media and other new technologies into an effective online marketing strategy in order to obtain the wanted conversion from online visitors to online customers. What comes after pass oning a Facebook guild account, twittering about the new promotion and optimizing your network weather vane site?1.1.4. EffectivenessNew technologies have changed the ways customers and companies relate to one some other and has argufyd the tralatitious cover of transactions and the way communications between consumers and companies are managed (Ozuem, Howell and Lancaster, 2008). When evaluating this new technologies, it is important to consider the advantages and disadvantages of traditional and new channels as well as, from a managers point of view, yield them into effectiveness (Danaher and Rossiter, 2011). Companies are not using the whole dominance of online marketing tools although they perceive them as effective (Teo 2005).However, amount marketing effectiveness poses numerous ch allenges due to the multitude of thinkable prosody for assessing effectiveness (Gray, 2006). Chaffey (2009) translates effectiveness as doing the right thing and from a practical point of view producing the demand outputs and outcomes. Kierzkowski, McQuade, Waitman and Zeissler (1996) expresses 5 wanted outcomes from a marketers point of view rive customers, accept customers, harbor customers, learn about customers and relate to customers.It is critical for companies to know how do they attract customers to their netsite, read them to deliberate into paying customers and also admit them to preclude returning to your website. Chaffey 2009 states Online communications techniques used to achieve goals of leaf blade awareness, familiarity and favorability and to influence purchase intent by encouraging users of digital media to visit a web site to contain with the defacement or product and ultimately to purchase online or offline through traditional media channels such as b y phone or in-store.As Teo (2005) has established in his research, effectiveness does not have to translate necessarily only into revenue, but it can be measured in building customer relationships, duty on the companys website or another outcome that satisfies management. Our research depart use the same 5 points outcome from Kierzkowski, McQuade, Waitman and Zeissler (1996) and will explore the different ways customers reach companies via internet.1.2. riddle DiscussionWhat is the problem? (Borrowed or created)Today, companies realized the electric potential of e-commerce and most of them already started to make use of this technology. eulovs and Gaile-Sarkane (2010) state that, E-commerce has now become a come upon component of many companies in the daily running of their businesses. Thus, the e-marketing component of a companys marketing strategy has grown in importance Baker (2007) states that, In a short period of time, e-marketing has become a facet of marketing that can not be ignored. New developments on internet technologies enables new ways of marketing, communication, throng customer opinions and experiences about products, operate and sign of the zodiacs, and also allows personalized one-to-one marketing (Li and Bernoff, 2008).Marketers are faced now with two important questions that they have to reply regardingWhich online marketing tools to use for the wanted outcome?Andrews, et al. (2007 cited in Ab. Hamid, 2008) point out that for firms the join ond importance of Internet channels can be seen in its function to disseminating information, enhancing consumer value, improving consumer satisfaction, inscription and retention as well as consumer perception which in turn leads to better profitability and expanded market share.How to integrate them in the overall company strategy?Baker (2007) historied that, marketers need to carefully assess the significance of e-marketing and assimilate it, as appropriate, into all aspects of marketing f rom strategy and planning to marketing research, objectives stackting, buyer behavior, marketing communications and the marketing mix.Given that the Internet has not only changed the way companies do business, but as well consumers behavior to shop or to go out for information, the matter of effectiveness of online tools arises. Online marketing tools need to be identify well by the companies and marketers should validate the economics of their promotional activities against their effectiveness ( McQuade, S. (1996). In addition, the particular proposition characteristics of the world wide web (traditional barriers of communication are broken, information and competitor just at a click away) often result in a question that we will try to answer in this research seek questionWhat tools are effective in attracting, retaining and engaging customers?1.3. Research ProblemQuestions that are developed from problemWhich online tools are customers responding to?How effective is the online marketing tools to attract online customers?How effective is the online marketing tools to engage online customers?How effective is the online marketing tools to retain online customers?Starting from an alert moot on digital marketing, we have chosen to apply a similar model into a quantitative research that is questioning students in Sweden about the effectiveness of digital marketing tools. In this paper, we investigate the effectiveness of online marketing tools of B2C websites in Sweden.2. Literature OverviewThis section will present review of relevant literature relating to our research. We will identify the theoretical base on which our study will be built. What to base the study on?2.1. E-commerce and B2CDigital technology, particularly the internet, has been described as an enabler of a planetary marketplace, characterised by equal access to information about products, prices, and distribution (Strauss et al., 2006). concord to Chaffey (2009) e-commerce is all electroni cally mediated transactions between an organization and any third party it deals with. accord to this definition non-financial transactions can be considered to be part of e-commerce.Chaffey (2009) Business-to-consumer (B2C) markets have made a significant contribution to the commercial development of the Internet encouraging wide-scale use of electronic computer networks by a diverse and increasingly global range of consumers2.2. Online MarketingElley and Tilley (2009) defined online marketing as promotional activity on the internet, including email that can take many forms, including search engine marketing, email marketing, online advertising, neighborly media, and affiliate marketing.McQuade, S. (1996) states that there are several success factors for companies to be able to booming in the online market, these five factors areAttract users.Engage users interest and participation. go along users and ensure they return to an application.Learn about their p carry onences.Relate back to them to provide the sort of customized interactions that represent the true value bubble of digital marketing.e-marketing is the strategy that the agency ororganization uses the modern communication technicalmethods to put back the potential market into realitymarket.Thee-marketing is that we can use internet makingcontinuously services in the every step of productspre-selling, products selling and products after-selling. Itruns in the whole process of business operating andincludes searching for new customers, services for oldcustomers.2.2.1. AttractingMcQuade (1996) states that the electric current clutter on the Internet virtually ensures that the build it and they will come model is insufficient to draw consumers, marketers need to actively attract users in the first place.Chaffey (2009+) Before an organization can break customers through the content on its site, it must, of course, develop marketing communication strategies to attract visitors to the web site.Reed ( 2010) states online marketing drives craft to your site and he also mentions this is probably the single biggest reason for using online marketing.Baker (2009) states that to bring in the customers, companies must ensure their website is visible to customers thats wherefore companies first priority is to be ensure their website is Search Engine Optimized.Banner and display advertisement is another important marketing tool that generate traffic and increase the views of your website. societal media tools generate traffic to your website and its also very important tool to engage current customers. Baker (2009) states sociable media can deliver new customers, but primarily is a terrific tool to communicate and engage current customers.Engagement is driven by hefty designand good content. The biggest flare-up inthis field of view has been the growth of onlinevideo to drive the message of business andproducts across in a dynamic way. A recent perspective by Yahoo Pew has shown vide o canincrease e-commerce purchases by up to40 pct. check to Chaffey (2009) online marketing focus on iii main activities customer acquisition (attracting site visitor), conversion (generating leads and sales), and retention (encouraging the move use of digital channels).Reed (2010) states online marketing is an important tool and nominates why it works for companiesOnline marketing drives traffic to your site This is probably the single biggest reason for using online marketing.Creates new ways to connect with your market companies will become visible to a new set of prospects.Builds trust your lymph nodes and customers can stick around to know you through your online presence.Starts a conversation A two way of dialogue with your customers and prospects is much more effective than a one-way pass out of your marketing message.Creates value If you can create a useful pick or interesting content targeted at your niche, they will keep advance back for more.Builds communities and relationships.Online marketing communications defined by Chaffey 2009 as Online communications techniques used to achieve goals of brand awareness, familiarity and favourability and to influence purchase intent by encouraging users of digital media to visit a web site to engage with the brand or product and ultimately to purchase online or offline through traditional media channels such as by phone or in-store.2.2.2. Engaging2.2.3. Retaining2.3. Online Marketing CommunicationsThere are several online marketing tools to attract customers and each tool must be chosen and utilise carefully by the companies.online marketing tools available for b2c companiesDeveloping the capability to create and maintain an effective online presence through a web site is a key part of Internet marketing. Effective means that the web site and related communications must deliver relevance to its earshot, whether this be through tidings content for a portal, product and service information for a busine ss-to-business site or relevant products and offers for an e-commerce site. At the same time, effective means the web site must deliver results for the company.2.3.1. Social MediaSocial media is defined as a group of Internet- ground applications such as blogs, brotherly networking sites, content communities, collaborative projects, virtual game worlds and social worlds that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user generated content (Kaplan Haenlein, 2010).The social media marketing connects service providers, companies and corporations with a broad audience of influencers and consumers (Weinberg 2009, 2-3.). Frick (2010) states that, When you share content on social profiles and your network of friends in turn share it as well, the potential for reaching immense numbers of hatful with little effort and in a small amount of time could be construed as a tangible business transaction, at least in terms of i ts marketing potential.Increasing usage of social media and networks created new ways of marketing of products and services. According to Black, Harrison et. Al. (2010) the uptake in use of social media tools is currently rising extremely quickly, Facebook now has over 400 gazillion users and Twitter over 50 billion. With these high potentials companies realized the importance of social media and social media started to become a new way to reach potential customers. Kaplan (2010) states that each Social Media application usually attracts a certain group of mass and firms should be active wherever their customers are present. A research done by Digital Brand Expressions indicates that 78 percent of client companies actively utilizing social media (sites such as LinkedIn, Facebook, YouTube, etc.) and only 41 percent of the respondents strategic social media communications plan5.2.3.2. Search Engine Marketing (SEM)2.3.3. Search Engine OptimizationSearch Engine Optimization (SEO) is the process of identifying and fine-tuning elements and keywords of a Website to improve the traffic in order to reach the highest possible visibility from search engines. Hernndez et al (2009) states that, SEO tool tries to capture users who are actively looking for information about a product related to the firm, which converts them into potential clients openly expressing their needs.So SEO is the first thing to tick on your list and its worth remembering that 50 percent of all online purchases start with a search.SEO is a great tool to create brand awareness and increase the website visits. Highest ranking in search engines can attract more visitors to the website. According to Evans (2007) more than half of all visitors come from a search engine rather than from a direct link on another web page.2.3.4. Mobile MarketingShankar and Balasubramanian (2009) define Mobile marketing as a two- or multi-way communication and promotion of an offer between a firm and its customers using a mobile medium, device, or technology. Marketing through mobile devices can be used to attract new customers or to retain them. Lubbe and Louw (2010) states that, Mobile devices create an opportunity to deliver new services to existing customers and to attract new ones.Shankar et al. (2010) states that is improving the acquisition and enhancing the retention of customers is an important challenge in the mobile marketing context and the retailers need to better get wind social networking to attract and retain customers.Mobile marketing is taking off as more consumers are increasingly becoming dependent on their mobile device for their day-to-day needs, including music, voice and data communication, and photography (Shankar and Balasubramanian 2009).2.3.5. interact MarketingChaffey (2009) defines affiliate marketing as a commission based arrangement where referring sites (publishers) receive a commission on sales or leads by merchants (retailers or other transactional sites). He al so states that Web site traffic can be developed through online partnerships such as affiliate marketing which involves partners being paid commission for each sale or lead.Affiliate marketing programs help firms to increase their reach and sire other firms customers when the firms agree to refer their customers to the third parties (Akura, 2010).2.3.6. pageant (Banner) AdvertisingDisplay ads are paid ad placements using graphical or full media ad units within a web page to achieve goals of delivering brand awareness, familiarity, favourability and purchase intent. Many ads encourage interaction through prompting the attestator to interact or rollover to play videos, complete an online form or to view more details by clicking through to a site. Chaffey 20092.3.7. Permission email marketingA wide variety of e-commerce marketers are using permission-based e-mail communications to notify prospects of promotions and services, acquire new customers, increase sales, and, most importa ntly, develop and nurture an ongoing dialogue and relationship with their customers.LOrals brand Lancme uses email newsletters to keep in touch with customers and hence strengthen their brand loyalty (Merisavo and Raulas 2004).The consumers exposed to e-mail marketing recommended the brand to their friends. E-mail also spark off consumers to visit retail stores, buy the brands products, and visit the brands site on the internet via links. Brand attitudes were also positive among consumers who had received e-mail. The data show that consumers with higher(prenominal) brand loyalty appreciate regular communication from the brand more than the less loyal. From this we conclude that e-mail offers marketers an opportunity to further strengthen the brand loyalty of already loyal customers by keeping in tell on amour with them.2.3.8. Online PR Subscription and Feed tools. RSS etc.Social MediaMembership can-do content2.3.9. Viral MarketingViral marketing for the real world.Chaffey and me talworker (2008) states that Viral marketing harnesses the network effect of the Internet and can be effective in reaching a large number of people rapidly in the same way as a computer virus can affect many machines around the world.With viral techniques, traffic is built either through using e-mail (virtual grapevine) or real-world word-of-mouth to spread the message from one person to the next (Chaffey and Smith, 2008).BLENDTEC CASE take aim2.3.10. Permission E- mail MarketingE-mail is most widely used as a prospect conversion and customer retention tool using an opt-in house-list of prospects and customers who have assumption permission to a company to contact them (Chaffey and Smith, 2008). For example, Lastminute.com has built a house list of over ten million prospects and customers across Europe.2.3.11. Online PRMaximising favourable mentions of your company, brands, products or web sites on third-party web sites which are likely to be visited by your target audience. (Ch affey, 2006).According to Chaffey (2006) online PR includeCommunicating with media (journalists) online setting up a press-release area on the web site creating e-mail alerts about news that journalists and other third parties can sign up to submitting your news stories or releases to online news feeds.Link building A structured activity to include good quality hyperlinks to your site from relevant sites with a good page rank.Blogs, podcasting and RSS Web logs or blogs give an easy method of regularly publishing web pages which are best described as online journals, diaries or news or events listings,Really Simple Syndication (RSS) is an extension of blogging where blog, news or any fibre of content is received by subscribers using the systems mentioned above.Podcasts are related to blogs since they can potentially be generated by case-by-cases or organisations to voice an opinion either as audio (typically MP3) or less commonly currently as video.Managing how your brand is presen ted on third-party sitesAs part of online PR it is useful to set up monitoring services. It is also necessary to have the resources to deal with detrimental PR as part of online reputation management.Creating a buzz online viral marketing.member get member2.4. Online customerThis section will present a short story of developments in digital interactive purlieu with regards to digital user definition and behavior in this environment and will present the new digital imposter characteristics that is said to be alter into the Google generationStarting with the term of end-user which was pushed by scholars in the late mid-seventies to define the persons that would finally benefit from the usage of information, the growing number of users (we refer to tens of millions) in the coming 20 years after that have given birth to the term consumers, as recognition to their new found (economic) powers6.Nicholas D. and Dobrowolsky T. (2000) argue the over-usage of the term user in reference t o the Internet and name it a tired, over-used, cheap and misused word, which provides the information profession with a debased currency. It does not reflect the close and complex engagement that takes place between a person and todays interactive information systems7. Instead they introduce the term player as a new name for the information consumer and characterize information seeking behavior as interactive, recreational, social and competitive with nuances depending on individual online engagement.According to their following research in 2003, the digital players characteristics are8 ample and unprecedented numbers we have gotten used to see and speak of website traffic in millions.All powerfull power given by numbers, by huge choice possibilities and backed-up by governments.Personal characteristics they cover all age groups, education groups and gender. More then that, the research has revealed that the Internet, initially a male reign domain, now reflects the gender balance o f the general population9that needs a new demographic profiling in consumer behavior.Huge choice is precursory (not sure if it is the right word) of the next 2 characteristicsPromiscuous users short direction spans and short visits Nicholas and Dobrowolski refer to users as bouncers. Online consumers bounce from website to another due to short attention spans, running against homepages they do not like, huge choice of websites, etc.Promiscuous consumers visit a lot of sites online, but purchase from just a few. (more explanation needed?)Untrusting all electronic media is savorless and the information provider can be everyone.cited in Seock 2008Consumers across the age spectrum shop online, but college students aged 18 to 22 have been identified as the Internets hottest market and a prime source of future growth in online sales (Silverman, 2000). College students yearly expenditures reach near $200 billion (as cited in PROMO Xtra, 2003). They are heavy users of the Internet and ha ve more access to this medium than most other population segments (Jasper Lan, 1992 Kim LaRose, 2004 U.S. Department of State, 2002). According to Harris interactive (2002), 92% of college students own a computer and 93% access the Internet. Their online spending exceeds that of any other demographic group in the U.S. (ODonnell Associates, LLC, 2004). Roemer (2003) noted that U.S. college students online purchases came to $1.4 billion in 2002 following a 17% increase over the anterior three years. In this vein, it is important for retailers and consumer educators to better understand college students online shopping behavior.Chaffey (2009), shape up can affect levels of access to technology, computer literacy, and eventually, the extent to which individuals use the Internet as part of their shopping routines.Chaffey (2009), At the higher end of the educational spectrum (university and college graduate) the internet is considered as essential if not indispensible. However , the digital set apart is persistent and internet access is lower in areas with poorer educational deed and lower-income schools.d partake of persons who use the Internet at least once a weekBy age groups 16-74 years of age, shares in percent. Year 2010Share of persons who ordered goods or services via the Internet during the last twelve monthsBy age groups 16-74 years of age, shares in percent. Year 2010. Orders made for private purposes2.5. Effectivenes onlineHowever, measuring marketing effectiveness poses numerous challenges due to the multitude of possible metrics for assessing effectiveness (Gray, 2006 ).The analysis of advertising channel effectiveness and consumerbehavior has emerged as a key concept in the marketing discipline for researchers andpractitioners because it tie consumer behavior and marketing strategy (Woodruff,1997 Overby et al., 2004).The operational and management processes of e-marketingOnline and offline communications techniques for e-commerceThere are dif ferent marketing communicati