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Globalized World Of Marketing

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  • "CONTENT (1) Executive Summary....................................................................................2(2) Aims and Objectives...................................................................................3(3) Introduction..............

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  • "CONTENT (1) Executive Summary....................................................................................2(2) Aims and Objectives...................................................................................3(3) Introduction.................................................................................................6(3.1) Literature Review................................................................................8(4) Globalized World of Marketing....................................................................11(4.1) Internet Marketing...............................................................................13(4.2) Variety of Channels.............................................................................15(5) Transformation of Marketing Channels in FMCG Sector.............................16(5.1) FMCG on Internet................................................................................17(5.2) Online Consumers Buying Behaviour..................................................18(5.3) FMCG Consumers Buying Behaviour..................................................19(5.1.1) Branding has a Role to play......................................................20(5.1.2) Understanding Clickstream: An Overview.................................22(6) Social Media on FMCG.................................................................................23(6.1) Doritos iD3............................................................................................25(6.2) Focus of Social Media...........................................................................26(7) Search Engine Optimization in Context of Online Information Search..........27(7.1) Better Information: Better Decision.......................................................28(7.2) Promotion through Search Engines......................................................30 (7.1.1) External Links..............................................................................30 (7.2.2) Internal Links...............................................................................31 (7.3.3) Meta Tags....................................................................................31(8) Internet Marketing Mix....................................................................................32(8.1)E-Product Strategies...............................................................................32(8.2) E-Price Strategies...................................................................................33(8.3) E-Promotion Strategies..........................................................................34(8.4) E-Place or Physical Distribution.............................................................35(8.5) Mobile Internet Marketing......................................................................36(9) Pros and Cons of Internet Marketing..............................................................37(10) Conclusions and Recommendations...................................................38(11) References..........................................................................................40 EXECUTIVE SUMMARYGlobalization, changing demands, technological advancement and thus the problemsassociated with them is what is observed in the current scenario. Consumers are looking fordifferent ways to abstract value while firms are adopting advanced techniques to enhancetheir reach to consumers. The most recent technology which is developed over a couple ofyears is Internet marketing. The increased number of Internet users has provided extendedopportunity for marketers to widen their reach. Irrespective of the kind of organization,Internet is found to play a role in influencing consumers. Internet has the capability to winover the retail outlets in a way that it offers a faster access to alternatives. Besides the onlineshopping benefit, consumers are better off in terms of information search before making thepurchase decision. (Doyle, 2003; Gray, 2005) Therefore, the multi-attributed Internet furthergives firms cost advantage and at the same time leave consumers in a better position that cancompare different product attributes at convenience. (Alba et al. 1997)Internet Advertising is found in different industries varying from automobile industry to fastmoving consumer goods (FMCG) with varying impacts. The communication technologycame into existence in the year 1994 and has observed drastic development over a couple ofyears. Despite of the success factors of Internet marketing in various sectors, FMCG sector isnot able to extort the desirable benefits. The appropriateness of advanced communicationmethods by the FMCG sector with its consumers and the factors involved is the fundamentaltheme of this report. The usage of scholarly journals and academics along with variousbusiness websites is taken into reflection to support the critically analysed judgment. Further,the understanding and detailed set of knowledge is critically evaluated on the basis ofsecondary research data from various business and other websites including online blogs as well as social networking websites. The paper is deemed to develop the wide understandingon how FMCG sector can maximize the usage of Internet marketing. AIMS AND OBJECTIVESFinding a billboard or an advertisement banner on roads, railway stations and other publicplaces had been observed for many decades and it is still the most successful mode adoptedby most companies throughout the world. Internationalization has led various sectors towiden their reach to consumers outside their geographical area and Internet has made itpossible to accomplish their goals. The usage of Internet is considered as a major advent forthe expansion of various industries throughout the world. Various researchers havedemonstrated the advent of Internet as transformation from industrial to service economy andnow to knowledge economy. (Madhu Kiran, 2008; September 6) It is thus an arguablepoint whether Internet has made successive globalization or vice versa. The consumer demand across the world has made different firms to undertake steps in orderto fulfil the consumers` demands through advertising. Advertising has become a necessity fordifferent companies in order to compete for maximum share of consumer market. It isresearched that advertisement has become an intrinsic part of an organization through whichit affects the extrinsic factors. The excessive usage of Internet has led different firms tochange their focus from traditional modes of advertisement to a more conventional form ofcommunication through Internet and other advanced methods like telephones, mobile phoneads, TV web ads and others. (MacMillan and Douglas, 2010; January 01) Thecommunication mode is proved to be successful in most industries but despite of their reachand success, it is lagging in case of Fast Moving Consumer Goods (FMCG). Erstwhile, theFMCG sector, covering a wide range of consumer products varying from food and dairy products to pharmaceuticals, consumer electronics, plastic goods, tobacco and detergents etc.,were considered as the most profound user of the traditional mode of advertisement. InternetAdvertising emerged as a crucial matter for marketers but e-commerce is not been able todevelop successful methods in case of FMCG products. (Sandy Bulmer; 256) However,some studies have shown thriving performance of the goods via Internet. For instance, thereare various magazine websites which are operating through Internet only;www.ipcmedia.com. The reasons found behind the failure of modern technologicaladvertisement strategy in FMCG may differ from the message generation to its delivery to itsusers.Consumers buys because of a requirement and the requirement generates from the problemidentification (Efthymios Constantinides, 2004; pp.111). Why does a consumer need tohave a detergent powder? The answer lies in the fact that it has a problem related to dirtwhich can be well cleaned with the help of the powder and hence perceives a consumer tomake a purchase decision. This becomes more complex when it has to decide the productwith the best quality and thus the amount and time to be invested in making the purchasedecision. Traditionally, consumers would have a look at different products with differentfeatures and prices in a store. However, the advanced technology has made it possible tosearch on the Internet to find the desirable information. This further raises the question thatwhether consumers are willing to find information of daily use products on Internet. Thealarming fact is that whether FMCG products are appropriate to be promoted and sold viaInternet and other advanced forms. Research has shown that FMCG has been lagging behindto make efficient usage of the modern technique to deliver values to consumers. Butmarketers strongly trust the feasibility of a wider scope through Internet. The marketers cancertainly convince consumers but by changing the consumers? behaviour with proper consideration of the fact that FMCG industry involves low involvement of purchasingdepending upon the consumers? degree of involvement which further requires to assessconsumers` experience with previous products. (Boyd et al., 2002; 111)FMCG firms may be lagging behind due to various misconceptions associated with theknowledge possessed by different firms. Internet advertising cannot be learnt by readingbooks but by learning via doing. How one feels about things happening on Internet developsthe proceeding steps towards success. (Margrethe Dal Thomsen, 1996) The objectives of afirm should be well defined so as to direct its resources in the desirable way.The changingtimes are followed by changing demands and hence the way marketers market. Irrespective ofthe size or industry, firms are emphasizing on Internet selling due to increased number ofonline shoppers statistically. For instance, it took 4 years for Internet to reach over 50 millionusers worldwide; however, it took 38 years for telephone and 13 years for television to reachthe same users figure. (E-Commerce Statistics, 2010; January 24) The success and reach ofInternet also led to the initiation of most innovative business ideas which laid its emphasiscompletely on Internet; www.ebay.com, www.google.com etc. As per Nielson GlobalOnline Survey, 875 million customers were found to shop online marking a 40% rise in twoyears. Further, out of 100 Internet users, 85 have shopped online which is significant highfigure. Despite of the various success stories, FMCG sector is lagging behind other industriesin maximizing the usage of Internet advertising and the other advanced technological modeof communication. With the growing avenues for higher profits, FMCG brands should targetthe online mode of advertisement on account of limited number of competitors, which wouldfurther initiate scope of bigger audience. (Robin Thomas, 2009; September 01) The moreadvanced version of online advertising comes in the form of social media and hence the firmsneed to emphasize upon. "

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