THE "E-AvAtAr''s
Thursday 25 February 2010
E-Marketing for SMEs
16:34 | 
Posted by
Jamphel
Importance of Marketing Research through E-marketing for SMEs
Importance of Marketing Research in E-marketing
There are a number of success stories of marketing decisions taken on the basis of insights but it is always suggested that decisions based on market research and marketing research analysis are of huge importance for the overall success of the business. Market research is done to identify problems which already exist or which are likely to surface in the near future (Susan and Nikolas 1999), especially for the SMEs it has been found that there exists a positive relationship between environmental information and small firm financial performance. In general, marketing research in e-marketing accounts for an organization's competitive advantage since consumer interaction nowadays differs from how it used to be in the traditional marketing methods. Consumers are exposed to a wide range of brands and brand loyalty can be easily lost or e-viral marketing can be generated in case of customer dissatisfaction (Mossinson 2010). Hence marketing research plays a vital role in the success of the SME’s (Dolinger 1984).
Importance of E-marketing - SME's
E-marketing is defined by Chaffey as the application of digital technologies including web, e-mails, mobile and other digital media in order to meet the marketing objectives (2008).
E-marketing gives business of any size the benefits of global reach, lower cost, trackable and measurable results, 24 hours marketing, personalization, one-to-one marketing, creation of interactive campaigns and ease of purchase, which adds value to the customer and therefore improves the organization’s marketing effectiveness (Business Link 2010). Hence it has given an aspiration for millions of SMEs to perform as efficiently as the large businesses in the global market (Mc Cue 1999 cited in Gilmore, Gallagher and Henry 2007). One of the SMEs e-marketing adoption theories is Social Network Theory (SNT)(Parker and Castleman, 2009), which gives SMEs economic value in terms of competitive advantage, lowering marketing cost and an emotional support (BarNir and Smith 2002 cited in Parker and Castleman, 2009).
Success stories of the E-marketing implementation
Small or big, numerous companies have adopted e-marketing (Business dictionary 2010). Big companies such as Tesco, the world’s third largest food retailer (Howker 2009), enjoys majority share of online grocery shoppers, with 41% of UK supermarket online sales in 2009 (Utalkmarketing 2010). Easyjet (low budget airline) operates ticketless services (reinforcing environmental friendliness campaign) as it has successfully integrated its services into its e-marketing strategy (Easyjet 2006).
The SNT theory has been truly depicted in the real life success story of Pink Cake Box , a small business pancake shop in New Jersey, which adopted internet marketing through blogs, YouTube and Flicker videos in their business strategy gainning a massive online customer base and media attentions (searchengineland 2008).
Where as companies like Advance Track Outsourcing and Lasan Restaurant have been able to turn great ideas into reality through e-collaboration and mobile sms based ordering system to enhance their way of working (nb2bc 2008).
E-Marketing has a great influence on the sales of SME’S. For instance a French based SME Paysen Fr's case study has shown how an online Farmers Market predominantly used internet to sell their products and is now enjoying a customer base of 2000 (ebusiness watch 2005).
Internet marketing has proven as a successful lifeline tool for the AEC SMEs (architecture, construction and engineering sector) in UK to survive through recession heat (extranet evolution 2009).
Not only in the developed nations but e-marketing is essential for SMEs across the world today. Mr. Vaid, CEO of NGA Consultancy Service Ltd., India has asserted that SMEs in India must take the advantages of e-marketing (smetimes 2009). Also Taiwan’s SMEA (SME Administration, ministry of economic affairs) has realized the need and gained benefits of e-business for their SMEs through the e-Enabled Service Teams (YouTube 2008).
Therefore, with the growing need and importance of e-marketing in all the markets and sectors across the world, one should not be left behind to grab the opportunity.. Hence we strongly recommend you to implement e-marketing in your business.
References
Business dictionary (2010) Integrated marketing communications [online] available from< http://www.businessdictionary.com/definition/integrated-marketing-communications-IMC.html> [22 February 2010]
Business Link (2010) Develop an e-marketing plan [online] available from
Chaffey, D. (2008) E-marketing and Internet marketing definition [online] available from < http://www.davechaffey.com/Internet-Marketing/C1-Introduction/E-marketing-Internet-markeitng-%20definition > [22 February 2010]
Dolinger, M.J, (1984), ‘Environmental Boundary Spanning and Information Processing Effects on Organizational Performance’. Academy of Management Review 21, 351-368
Easyjet (2006) Easyjet plc [online] available from
Ebusiness watch (2005) Case study: E-logistic and E-marketing for Paysen.Fr [online] available from
Extranet Evolution (2009) The Internet as a lifeline for AEC SMEs [online] available from < http://www.extranetevolution.com/extranet_evolution/2009/04/the-internet-as-a-lifeline-for-aec-smes.html > [22 February 2010]
Gilmore, A., Gallagher, D., and Henry, S. (2007) ‘E-marketing and SMEs: Operational lessons for the future’. European Business Review [online] 19 (3), 234-247. Available from < http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0540190303.pdf > [22 February 2010]
Howker, E. (2009) The Big Question: Is Tesco now too powerful in Britain, and can its growth ever be checked? [online] available from
Mossinson, O. (2010) E marketing vs traditional marketing - research results. [n.d.] available from
Parker, C.M., and Castleman, T. (2009) ‘Small firm e-business adoption: Critical analysis of theory’. Journal of Enterprise Information Management [online] 22 (1/2), 167-182. Available from
The National B2B Centre (2008) How can SMEs create future advantage [online] available from < http://www.nb2bc.co.uk/marketing_online/articles/?id=107 > [22 February 2010]
Search Engine Land (2008) A small business marketing success story [online] available from
Small and Medium-sized Business e-Enablement Service Teams (2008) [online] available from < http://www.youtube.com/watch?v=-cOwvfeAiPA&feature=related > [23 February 2010]
SME Times (2009) SMEs must take the advantage of e-marketing [online] available from < http://smetimes.tradeindia.com/smetimes/face-to-face/2009/Nov/09/smes-must-take-advantages-of-e-marketing.html > [22 February 2010]
Susan, H and Nikolaos, T (1999), “The Impact of Marketing Research Activity on SME Export Performance: Evidence from the UK” Journal of Small Business Management 37 (3), 63-75.
utalkmarketing (2010) [online] available from
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52 comments:
E-marketing gives businesses of any size access to the mass market at an affordable price and, unlike TV or print advertising, it allows truly personalised marketing.
keep up the good avatars (J)
I think it's important to understand the difference between Marketing and Market Research. I think you are talking about Marketing Research, but you use the word Market research. In my opinion Market Research is really about the research of the market and their products and competitors. Market Research is a part of Marketing Research which also involves the research to the 4 P's.
Sources:
Marketing Planet (n. d.) Market research versus marketing research [online] available from [26/02/2010]
Marketing Teacher (n. d.) Introduction to Marketing Research [online] available from [26/02/2010]
nice work. Do you think that e-marketing is industry specific when it comes to SME or these principles can be applied to any industry?
@Floris.. the topic of our discussion definitely is the ''importance of marketing research through e-marketing for SMEs''. However the reason why we also mentioned market research in the discussion is because, basically research can be broadly divided into two categories of market research and marketing research (Whipple 2010), with market research providing you with the more external perspective of your business and industry where as marketing research offers more internal or focused perspective relating to your activities concerning supply, distribution or promotions. Most importantly they represents two sides of the same coin and are both equally significant to corporate decision makers (Whipple 2010). Integrating both, market research is usually conducted periodically and provides a reliable road map to plan the business growth and profits (Whipple 2010) and unlike the traditional approach marketing research now a days is a part of the ongoing business activities (Malhotra and Peterson 2001), providing businesses with the directions and signage along the way in order to measure the progress speed and mark your position. And since the internet revolution has its own impact on market research as well providing an alternative tool for the traditional approach (Wilson and Laskey 2003), we included it in our discussion.
Refereces
Malhotra, N.K. and Peterson, M. (2001) 'Marketing Research in the new millenium:Emerging issues and trends'. Marketing Intelligence and Planning [online] 19(4), 216-235. available from [27 February 2010]
Whipple, S. (2010) Market Research Guideline: An introduction to developing your research curriculam for a powerful market insight. [online] available from <http://66.102.9.132/search?q=cache:T02YJ2Ou4BUJ:www.whipplesargent.com/mrguide.pdf+link+between+market+research+and+marketing+research&cd=10&hl=en&ct=clnk&gl=uk&client=safari [27 February 2010]
Wilson, A. and Laskey, N. (2003) 'Internet based marketing research: a serious alternative to traditional research methods? Marketing Intelligence and Planning [online] 21(2),79-84. available from <http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0200210201.html [27 February 2010]
@isimi : it is industry specific to a certain extent. but the whole point is, it is essential for most of the SMEs. we have given a few examples of industries (specifically companies) which had implemented it and benefited out of it. but of course when it comes to different sectors, the marketing research also varies and hence different principles may be applicable.
“E-marketing gives business of any size the benefits of global reach, lower cost, trackable and measurable results, 24 hours marketing, personalization”
Agreed that Internet allows SME’s to exchange information online at a much lower cost given that information need only published once and read as many times by sub-continental to global users. This helps SME’s to reach wide range of an audience at a much low starter content costs. Websites help bring mass personalization, however the problem here is that SME’s do not have the financial creature comfort to bring in professionals to manage mass personalization. The lack of financial backing, time and technical software know-how has resulted in SME’s having a poor website which is not appreciated nor interacted by the techno-phobic consumers. This is not to say SME’s are not fulfilling consumers’ needs by targeting individuals on an individualistic basis. Given that SME’s have been quick enough to response to emails and developing new website to other larger organizations. However, they have been rather sluggish to response to most recent e-commerce software applications (Laudon, K; Traver, C; 2009). The exploit of internet by SME’s offer little benefits in the form of enhanced communications and promotions with consumers, and its responsibility to create income still remains to be seen. The concept of e-marketing will revolutionize and ultimately replace traditional marketing methods still remains pessimistic. If they do not wish to lag behind their competitors, you need more than a mere generalist psychical presence of an “interactive campaigns, pay per clicks” to promote products. Greater resources, funding, time and attention will result into a well creatively designed, professional website and constant updates will ensure that you remain competitive.
References
Laudon, K. Traver, C. (2009) E-commerce business technology and society. London: Pearson education limited
Winkholfer, H., & Houghton, K. (2004). A typology of websites an investigation of exporting SME's. Proceedings of the 33rd EMMAC conference . Spain : Murcia press .
White, J. (1998) Introduction to special theme small and medium enterprise strategy: a small buisness necessity not a large firm luxury. Journal of international marketing , 31 (6), 813-814.
@isimi... and also the success stories that we have mentioned in our discussion are from different industries or sectors including service sectors, food and beverages, architecture, engineering and there are many more but due to the word limit restriction we could cover only few, but the whole point is with the growing internet and digital technology revolution, consumers' interactions are also changing so to cope up with that, every SMEs have to divert from their traditional research methods..
@ aasi: thanks for your review and I will encourage you to keep following our blog as we talk about marketing issues on a weekly basis.
@ Floris: Like Jamphel said, the topic is indeed about marketing research. If you noticed we clearly seperated both terms when explaining how they are both important to an organisation.But initially we decided to provide a definition of market research, before exploring marketing research and its effect on e-marketing. We do agree with you as we understand that although these terms are often interchangeable, there is a difference (Quickmba 2007). Indeed, marketing research deals with specific information about the market whereas, marketing research covers a wider range of activities. We were merely exploring the importance of research from two angles.
@Babatunde: The advantages of E-marketing are applicable to any industry because these advantages are constant. Although the corporate or marketing objectives of each industry differs, and this will determine how e-marketing is applied. Our topic focuses on SME's, marketing involves huge costs and since most SME's face considerably liquidity crunch, thus, e-marketing will not only be cost efective, but they'll be able to reach a wide market(Articlesnatch 2009).This is alongside the other advantages mentioned above on the importance of e-marketing.
@Gulpreet: Company's are indeed constantly reminded to effectively manage their internet marketing strategies (like any other strategy) in order to remain competitive and benefit from its usage. SME's especially because in most cases, they lack the professionals who plan and implement their internet strategies (Applied internet 2010) Like you mentioned, unfortunately, SME's do tend to neglect the importance of managing their e-marketing strategies which if not managed correctly, will result in bad customer relationship (regardless of the size of the company) (Nebusiness 2010, IC 2009). Online and traditional marketing carry different if not similar benefits (multimedia marketing 2009), which are beneficial to an organisation. Deciding whether to use either method will depend on whether it can be properly integrated into the company's strategy. The question on if e-marketing will ultimately replace traditional marketing methods is another debate on its own, although, organisations are encouraged to invest in e-marketing (Webpronews 2010). Several researchers have indeed favoured integrated marketing communications which ensures that all forms of communication and messages are linked together (Multimedia marketing 2009). Ultimately, it is important to assess ones macro and micro environment before deciding whether to and how to integrate e-marketing into ones marketing strategy (Applied internet 2010).
NB. We provided examples of several SME'S that have successfully integrated e-marketing, you might want to have a look.
References:
Applied internet (2010) Internet marketing strategy [online] available from [28 February 2010]
Articlesnatch (2009) E-marketing to boost SME's [online] available from [28 February 2010]
IC (2009) SME direct [online] available from [28 february 2010]
Multimedia marketing (2009) [online] available from [28 February 2010]
Nebusiness (2010) [online] available from [28 february 2010]
Quickmba (2007) Marketing research [online] available from [28 February 2010]
Webpronews (2010) Why companies shouldnt rely on traditional marketing [online] available from [28 February 2010]
@Gulpreet....The scenario for e-marketing does not look pessimestic at all...they have helped revive a lot of companies even during the recession as we have quoted in our article.
Undoubtedly, marketing research is very important in e-marketing for SMEs. However, the writing has not pointed out how marketing research is important in e-marketing for SMEs. Also, what are the advantages of online marketing research in e-marketing compared to offline marketing research? Based upon these points, the question will be answered. Thank you for your clarification. (Khoa, a member of emarketforensics)
Hey, I like your way of looking at it as well as the examples you gave. Especially the case of Paysen Fr's was really interesting.
Although I have one question, what do you think about the loss of contact with the customers. Don't you think as and SME that people should see your face when buying something?
when I buy a thing I like to see it, feel it, touch it before I give away my money,and chat to the nice staff about the weather.
But here we are trying to see the advantage of e-business by applying e-marketing into it.
And after all, it is all about personal shopping habit!
@ Emarketforensics: given the word constraints, we were unable to elaborate on the subject. Nonetheless, we have mentioned within the text and in the discussions that follow, that marketing research is essential in e-marketing because unlike the traditional means, customer loyalty is easily lost online. For example, a customer who wishes to browse a company's online shop and encounters certain problems will quickly move unto another website that fulfils its needs. Thus, marketing research could provide competitive advantage by enabling the right product at the right time with the right means is provided. More so, e-marketing is especially important for SMEs because they are at higher risks in remaining competitive and e-marketing offers an 'outlet.' Although, market research in e-marketing for SMEs is needed (like we mentioned in the response to Gulpreet) because they are critisced for neglecting their e-marketing strategies, and that is why they are advised to invest on this area of their marketing strategies (performing Integrated marketing communications). Marketing research in e-marketing will help them stay competitive and not experience bad customer relationships.
@ Bart: I believe regardless of company size, certain people are still sceptical about purchasing items online. But with good online marketing management (providing a professional, safe and secure website with great visuals), customers will be keen to purchase items online. brand loyalty is also a determinant (Warc 2010). More over things tend to be cheaper online, can be compared with other brands and sales online have been predicted to increase(Warc 2010). I think technology has advance rapidly such that, shopping is a lot interactive. Have a look at www.asos.com, where each item can be viewed on a model who 'catwalks' on a runway, and you can zoom in to have a closer look.
Reference:
Warc (2010) Online retail sales rise in the UK [online] available from [01 March 2010]
@ Bert: thanks for ur comment. of course physical contact is one of the biggest limitations of e-business, however due to vast internet revolution the consumers and the business organizations no longer consider physical contacts that much important these days, that is the reason why the customers today including us, go for online shopping rather than going to shops personally for the ease of convinience, cheaper price and time saving. It is no longer that important to see ur customers'face when they buy from u, rather there are different ways on online that u can get customers' feedback on ur business and products and thats more efficient and effective than getting it personally from all the customers. thanks.
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Visit:http://www.iwebtechnologies.in
Contact Us:0129- 4323547, 4323569
Techmagnate is India's best advanced showcasing and SEO administrations organization in faridabad . We are situated in faridabad and we give full-suite Internet promoting administrations. From conceptualization and technique to definite stage execution, we actualize your whole computerized showcasing methodology. Since we receive a 360° way to deal with computerized promoting, our administrations incorporate Web Design, SEO, Social Media Marketing, Pay-Per-Click Advertising and Application Development.
Visit:://httpwww.iwebtechnologies.in
Contact Us: 0129- 4323547
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