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using them monotonously. (Stone et al., 2002) The financial

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  • "using them monotonously. (Stone et al., 2002) The financial industry in Europe and US canbe evidenced on offering online as well as telephone banking. (Durkin and Howcroft, 2003)Transformation of Marketing Channels in FMCG SectorThe erstwhile usages..

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  • "using them monotonously. (Stone et al., 2002) The financial industry in Europe and US canbe evidenced on offering online as well as telephone banking. (Durkin and Howcroft, 2003)Transformation of Marketing Channels in FMCG SectorThe erstwhile usages of the traditional modes like TV and print were extremely found in caseof FMCG products. The markets grew at an average rate of around 15% throughout ninetiesbut saw a downward track in early 2000. The reports have shown a fall in interest rates whichled consumers to increase their consumption of luxury goods in different parts of the world.(2005) This became a challenge for the FMCG industry, which struggled to drive the growthby increased usage of innovative channels of communication. However, the technology couldnot match the expectations in FMCG sector as it did in other sectors. Despite of wider scopeof Internet marketing, the figures have revealed lower investment on Internet marketing bybusiness firms as compared to the traditional modes. There are supported arguments byscholars on lesser figures of Internet Advertising. On one hand, the Internet advertising isadvantageous in terms of click through to customer acquisition. On the other hand, despite ofits capabilities of targeting larger market without any disruptions, there is evidence ofdisruption. For example, a popup window may appear while searching some informationwhich is surely irritating.The appropriateness of the advanced versions of distribution channels is often questioned incase of FMCG products. The battling business environment, on the other hand, is aware ofthe potential of cost reduction by new communication methods. (Easingwood and Storey,1996) Resulting, the pressures of higher profitability and cost reduction, marketers have highpreferences on focusing on new modes of communication. As argued earlier, information onweb is more cost efficient than any other medium. On the other hand, consumers find it more convenient to grasp maximum information. The modern communication mediums howeverhave not proved to be as advantageous in case of FMCG goods as they have performed inothers. The sector is found to have lagged on account of consumers? adoption of the mediumand hence its sluggish behaviour in the budget shifts to digital paradigm. The reasons mayvary from low purchase involvement to low focus by different firms. The wider scope shouldbe kept in mind by various firms and accordingly strategize to attract maximum consumers.FMCG ON INTERNETFMCG products can be synonymously related to super markets and retailing. The industry isstill searching ways to become digital which is considered to be as one of the main reasons tolag behind other industries. The sectors` over reliance on the traditional mode ofcommunications can be regarded as negative approach on emphasizing on modern ways. Butthe reality favours the former; FMCG sector is found to spend 23.5% online while the majorof ad spent, 76.5% is on offline despite of the expanded growth of Internet as a marketingmedium. (Paul Evans, 2009; October 08) The issue is not related with getting digital but theway of getting digital. Frances Dovey, 2009) However, the results are staggering as there isyear on year fall of online advertisement of major FMCG brands by 11.4% in 2009. (NicolaSmith, 2010; January 07) The type of industry can be accountable on reducing online adspends. At the same time the increased demands of online consumers makes the sector toapproach them via Internet. Online promotion positively has potential in balancing thefamiliarity by effectively enhancing favourability. FMCG sector has significantly focussed onunderstanding the users? preferences which has now taken the more advanced stage where the ideas and voice of consumers will be given crucial in developing long-term relationships.Moreover, what is pivotal to FMCG success through Internet is how the consumers behaveand accept the mode of interaction which raises the question of deeper understanding ofconsumers? behaviour by the firms.Online Consumer Buying BehaviourConsumers are less involved in making the purchase decision. For instance, one may carryout proper R&D before buying a car or a laptop but not while buying a shampoo ortoothpaste. The fast moving goods are purchased due to regular purchasing habit and thusthose goods possessing highest recall are purchased by the consumers.(www.brandstreet.wordpress.com, 2007) Internet acts as a tool of upraising the recall factordue to its frequent engagement. Spill over is found to be minimal in traditional modes likeTV and print media but Internet has led companies to achieve better results. Brands like Axe(Axe Academy) and www.gangofgirls.com (SUNSILK) can be quoted as best exampleswhich have significantly added to their brand equity via Internet. Selling toothpaste onlinewould be too much but marketing it creatively online would add to its brand equity andwould help in enhancing the consumers? recall of the product. It can therefore be said that itshould be treated as support medium instead of a substitute. The number of consumers is the same but what is growing is the number of retailers. Thehighly competitive market force is under tremendous pressure of providing quality productsat competing prices. The online consumers came out to be less than the expectationscompared to the rate of growth in online users. Lack of understanding of the search process is reckoned to be the main reason as viewed by many. Consumers? behaviour is greatlyinfluenced by the aspects varying from personal factors, product features and informationsource efficacy. Therefore, e-marketers have a difficult task to win over its customers inInternet marketplace (Robert Grant, Rodney Clark and Elias Kyriazis, 2007; 519). The virtualexperience would affect the consumers buying decisions which make an important task forthe e-developer to understand what the users are seeking for. Clicks and mortar firms are theexamples which are able to drive their sales of traditional outlets through creating superiorweb experience. This again raises the question of Internet acting as a medium to support thetraditional channels. FMCG Consumers BehaviourFMCG industry is the most competitive one where consumers buys because of theirrequirement to fulfil their daily needs and hence has a specified budget towards purchasingdecision. For instance, if a consumer has a usage of single toothpaste a month, it would buyone or two depending on the number of members in its family. However, it may be perceivedby some offer given along with it or the way it is marketed. The consumer behaviour varies indifferent aspects like the type of product, the quality, price or the information. For instance,the response rate of consumers of perfumes online would be more positive than that oftoothpaste. However, the increased competition of supermarkets has pushed them to competeonline as well as offline.Evidenced information has shown that FMCG firms are not able to develop an understandingof the grocery shoppers? behaviour. Most of them are found to engage consumers particularlythrough own websites. (Jo Malvern, 2010, June 14) Consumers are not found to be keen onvisiting their websites which adds to the challenges to FMCG brands to effectively involveconsumers online. This raises the question whether FMCG would be able to succeed ineffectively communicating with consumers? Branding has a Role to PlayThe online behaviour is further affected by the brand names as well. As per a research byErnst and Young, 69% of the consumers are convinced towards buying decisions due to thebrand name of the product. (Michael R. Ward and Michael J. Lee, 2000; 6) Further, thebranding is reported to play a major role in promoting brand loyalty (Dixit and Norman,1978) and hence is considered to be as anticompetitive (Comanor and Wilson, 1974; 20).Consumers possessing higher Internet usage experience are found to access accurateinformation on their own and hence rely lesser on the brand names.FMCG products, as argued earlier, possess low purchase involvement as they consist of theeveryday products and generally the “Mum” of a family makes the purchase decision. Theproducts require just above a moment of thinking before making the purchase decision ascompared to products like cars or a washing machine; the customer would evaluate variousavailable options and will accordingly make the decision to ensure of the best possible deal.FMCG brands, on account of low purchase involvement factor, are facing tougher dispute forcustomers` online engagement despite of the fact that almost every FMCG brand has its "

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