The ways to increase effectiveness of e-marketing in "Print Express Company"
The ways to increase effectiveness of e-marketing in "Print Express Company"
Buyers get only those goods for which they feel requirement. Quite
often the public subjects to criticism intensive advertizing campaigns that
they ostensibly «force» consumers to get the firm goods. It isn't absolutely
true – we will remember, for example, unsuccessful attempts of company
Coca-Cola to present to the market new soft drinks or originally negative
reaction of consumers to a car model «Ford Sierra».
Two thirds of new production come to grief already on the first
steps on the market. Companies should consider requirements of consumers and
the market and to adapt for them the production
The purpose of sales consists in convincing the buyer to get an
offered product. Successful marketing provides presence of the necessary
product in a proper Internet place and proper time.
These are main principles of marketing – «as a result the consumers
always receive what they want».
Marketing is the process uniting possibilities of a company and
need of the consumer. So, the buyer satisfies the requirements, and the company
receives the income of sold goods.
Global network Internet has made electronic commerce accessible to
companies of any scale. The electronic show-window in World Wide Web gives the
chance to any company to involve clients from every corner of the globe.
Similar on-line business forms the new port for sale – «virtual», almost not
demanding material investments. If the information, services or production (for
example, the software) can be put through Web all process of sale (including
payment) can occur on-line.
Therefore the given theme seems actual for consideration.
E-marketing introduces new features and advantages in
comparison with the traditional marketing. Here some of them:
1) Key role transition from manufacturers to consumers
One of the most fundamental qualities introduced by the
Internet in the world of modern commerce is key role transition from
manufacturers to consumers. The Internet has made a reality for the companies
possibility to draw attention of the new client of all for tens the seconds
spent by it in front of the screen of the computer. However at the same time it
has given the chance to the same user to pass for some clicks of the mouse to
any of competitors. In such situation the attention of buyers becomes the great
value, and the established mutual relations with clients the main capital of
2) Globalization of activity and costs decreasing
The Internet considerably changes spatial and time scales
of commerce conducting. It is the global communication medium which does not
have any territorial restrictions. Access cost to the information doesn't
depend on remoteness from it, contrary to traditional means where this
dependence is directly proportional. Thus, electronic commerce allows even to
the smallest suppliers to reach global presence and to be engaged in business
on a global scale. Accordingly, customers also have global choice from all
potential suppliers offering the demanded goods or services irrespective of a
geographical arrangement. The distance between the seller and the buyer plays a
role only from the point of view of transport costs.
The time scale in the environment of the Internet also
considerably differs from the usual. High efficiency of communicative
properties of the Internet provides possibility of cutting-down of time for
search of partners, decision-making, realization of transactions, working out
of new production, and etc. Besides, its communicative characteristics
possesses the high flexibility allowing easily to make change of the presented
information, and, thereby, to support its urgency without a time delay and
expenses for distribution.
The effects above also lead to considerable cutting-down transactional
costs, that is the costs connected with adjustment and maintenance of
interaction between the company, its customers and suppliers. Thus cost of
communications, in comparison with traditional means, becomes minimum, and
their functionality and scalability considerably increase.
3) Personification of interaction and transition to e-marketing
By using means of electronic interaction the companies can
receive the detailed information on inquiries of each individual customer and
automatically give products and the services corresponding to individual
Developing e-marketing is especially important for the large
companies. It doesn't mean that it is necessary for them to have own Internet
shop. The companies should understand that the Internet means dialogue with
clients. So, the social network can help with brand development, but also can
destroy it, and for very short time. Investments into construction of system of
dialogue with the client represent an important component of all strategy as a
whole. Recently miscalculations in strategy of some global brands, such as
absence of attention to opinion of clients and isn't enough efficient control
ports of interaction with clients, have negatively affected reputation of these
The most of research and practitioners agree that the need to
develop a comprehensive understanding of consumer behaviour and creating a
compelling online environment are essential for effectiveness of e-marketing (KRISHNAMURTY,
S. 2006, p. 3).
The other researchers suggest that effectiveness of e-marketing
should be based on total marketing communication of a company even it
contradicts with consumer behavior. Total marketing communication proposes that
all marketing activities for a company should be complementary to each other
and their total sum of efforts should be consistent with the company’s present
marketing goals and objectives instead of analyzing consumer behavior (ZONGQING
Z., 2004, p. 94).
One of the most controversial question in this field is how to
measure the effectiveness of e-marketing activity. Experts in e-marketing don't
have any unity on this question. So, a number of scientists – Zhivetin, V.V.,
Samohvalov, V.L., Chernov, N.P., Feraponova I.A. (2008, p. 12) – consider
that efficiency of a e-marketing policy in relation to the concrete company
develops of results of perfection of industrial-marketing activity in following
basic directions: optimum use of potential of the market; increase of reliability
of look-ahead estimations; a finding of a segment of the market of the given
M. Tugan-Baranovsky, L.V. Balabanov (2006, p. 165) suggest to
estimate efficiency of e-marketing in the following directions: buyers,
marketing integration, adequacy of the information, strategic orientation,
operative efficiency. But they don't define an estimation system and algorithm to
calculate the marketing effectiveness.
The majority of experts in American companies assert that the
effect of e-marketing activity consists in growth of sales volumes and profit.
According to Jashevoj G. A (2007, p. 342), on the end results influence except
marketing and other components of potential of the enterprise – management,
shots, production potentialities (the equipment, technology), the finance,
therefore such estimation is too simplified.
G. Assel (2007, p. 230) suggests to estimate efficiency of
marketing activity, as efficiency of expenses for marketing. Thus by means of
economic-statistical methods dependence between expenses for marketing and
result – sales volume or profit is investigated. It is clear to me that such
method of an estimation is an estimation of efficiency of expenses, instead of
the most marketing activity.
M. MakDonald (2002 cited in Kotler, 2009, p. 39) asserts that the
empirical approach is more preferable, than quantitative, based on statistical
check of narrow deductive hypotheses. The analysis of marketing efficiency should
be in the following directions: the internal relation of management of the
companies to marketing (its definition, a role and functions); the organization
of this activity (involving in process of strategic planning, level of
coordination and an information exchange between marketing functions);
practical execution of marketing functions (use of marketing probes, planning,
participation in working out of the new goods and etc.).
There is also an opinion that marketing doesn't submit to any rules.
Therefore application of quantitative methods at planning or an estimation of
actual results of marketing action is complicated. Supporters of this opinion
consider that not all purposes can be formulated quantitatively.
Application of quantitative methods is limited due to the
complexity of object of
studying, nonlinearity of marketing processes, presence of threshold effects,
for example, a minimum level of stimulation of sales, time logs (for example,
reaction of consumers to advertizing often isn't carried out immediately);
effect of marketing
variables interaction are interdependent, for example, the price, assortment,
quality, release volume;
complexity of measurement of
marketing problems; it is difficult to measure reaction of consumers to certain
stimulus, for example, advertizing, indirect methods of an estimation therefore
are often applied;
instability of the marketing
interrelations caused by changes of tastes, habits, estimations, etc., relative
incompatibility of the personnel which is engaged in marketing and application
of quantitative methods in its estimation. The first give a priority to the
informal methods, the second – to mathematical modeling.
The marketing expert, the professor of the London business school
Kenneth Simonds, notices that in marketing nothing ever repeats, all variously
for different situations. Marketing is focused on concrete buyers, and all buyers
are different. The general rules – enemies of marketing. Therefore definition
of effect of marketing activity is, first of all, diagnosing, instead of working
out of techniques, theories.
Nevertheless the benefits from e-marketing and a lot of
contemporary literature about the ways to gather and analyze consumer behavior
as the platform for creating an effective e-marketing strategy there is a huge
gap in existing literature about an approach to link up strategy formulation
with empirical data (NANSI, S. and MURTHY, V.K., 2003 p. 321).
A huge job has been done in the field of researching effectiveness
of e-marketing based on consumer behavior. One of the main works in this field
is Contemporary research in e-marketing by KRISHNAMURTY, S. My research
proposal is about the ways to increase e-marketing effectiveness of Print
Express Company based on gathering and analyzing data about consumer behavior.
In order to be able to propose ways to increase effectiveness of
Print Express Company’s e-marketing we should discuss basic academic theories
and concepts that explain the way of interaction between company and customers.
1. The industrial concept, or the concept of manufacture perfection.
The company adhering to such concept, have mainly serial or a large-lot
production with high efficiency and the low cost price, and sale of the goods
exhausted by them is made by means of numerous trade enterprises. It is
possible to carry the following to the basic preconditions of existence of this
concept of steering of marketing activity:
– the most part of real and potential consumers have low
– demand is equal or exceeds the offer a little;
– there is a fast drop of high production costs (usually on
new production) that leads to a gain большей market shares.
2. The concept of goods perfection is based on orientation to
consumers to surpass analogs in technical characteristics and by that bring more
benefits to consumers. Manufacturers thus direct the efforts to improvement of
quality of the goods, despite higher costs, and, hence, the prices.
3. The sale concept, or the concept of an intensification of Internet
commercial efforts, assumes that consumers will buy the offered goods in
sufficient volume only in the event that the company makes certain efforts on Internet
advancement of the goods and increase in their sales. The sale concept can be
effective for a long time that speaks following reasons: many buyers consider
that they in a condition to protect the interests; the buyers unsatisfied with
purchase, soon forget about the feeling of disappointment and will address
hardly probable with the complaint in a society protecting their interests; always
there is enough great number of potential buyers.
4. The socially-ethical concept of marketing is based on the new
philosophy of business focused on satisfaction of reasonable, healthy
requirements of demand carriers. Its purpose consists in maintenance of
long-term well-being not only the separate enterprise, but also a society as a
whole. The such orientation of image of firm also should involve buyers as the
factor of competitiveness of the given firm among the others.
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.
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.
Research aim, research
questions or hypotheses and objectives
The problem of e-marketing economic effectiveness pursues two
1. To prove efficiency of e-marketing activity at a working out or
2. Definition of final effectiveness of e-marketing activity after
the termination of the certain period of time, proceeding from actually reached
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
I need to research the following questions:
Is e-marketing an effective
activity compare to traditional way of marketing?
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:
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.
To define criteria
concerning which process measurement in realization of e-marketing plan
(control of e-marketing activity results) will be carried out.
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.
In order to define effectiveness of Print Express Company
marketing activity it is necessary to carry out an estimation of marketing
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
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
The ways to increase the effectiveness of e-marketing in Print
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
Marketing communications in the Internet can be divided into two
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
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
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
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.
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
globalization internet effectiveness
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E-Commerce and Information Technology in Hospitality and Tourism. Canada:
Thomson Delmar Learning.
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MURTHY, V.K. 2003. Architectural issues of Web-enabled electronic business.
London: Idea Group Publishing.
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SAMOHVALOV, V.L., CHERNOV, N.P., FERAPONOVA I.A. 2008. E-marketing as the way
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