New Trends in Online Marketing - Research Paper Example

Applied Research Methods for Business and Management Affiliation Table of Contents Introduction 1 Research Question 2 Research Objectives 2 Literature Review 2 Research Methodology 6 Findings 8 Conclusion 11 Abstract The internet has created a new platform for companies to promote their products and services. Due to the advancement of technology traditional marketing activities are becoming obsolete and all organizations are investing their time and money on online marketing activities. The virtual world is a very powerful world where despite of physically apart everyone is connected and can share information. Due to world-wide virtual community it becomes easy for small and medium sized organizations to compete with conglomerates, to promote their products and services effectively, and to increase sale. The aim of this research is to identify the impact of online marketing activities of new product launch on company’s sale. The main focus of this research is on new trends in online marketing and how they create impact on sales and company’s profitability. Along with the impact of online marketing activities on sale the importance and usefulness of these activities to gain customer attention is also being discussed in this paper. Introduction The incredible growth of internet has created new ways and opportunities for producers to communicate with the final customers of their products. The way now organizations communicate with their customers and promote their products are services cannot be find in history. Online marketing is very effective marketing tool because it provides two ways communication; not only companies can convey their messages to the potential audience but also can get their feedback. Through online marketing activities organizations can effectively launch new products in the market and can increase sale. Additionally, the importance of internet as a commercial medium has been widely investigated by researchers around the globe and it becomes evident that one should know the correct online marketing activities for the promotion of any new product and service to increase profitability and sales. This research paper aims to identify how online marketing activities helps organization for the launch and promotion of new products and their impact on sales and profitability. Research Question What is the impact of online marketing activities of a new product launch on sales? Research Objectives 1. To identify the impact of online marketing activities for promoting and launching new products on company’s sales. 2. To identify current trends in online marketing. 3. To identify the importance of online marketing in today’s competitive world. 4. To identify the usefulness of online marketing activities in gaining customer attention. Literature Review The critical phase of a new product development process is the launch of the product and it becomes more critical when the product belongs to the category where competition is very high. The launch of new product has very significant impact on its sales because a successful launch provides ways to create more sales and profit (Abraham, 2008). Therefore, it is very important for companies to adopt those strategies that ensure the success of new product launch. Moreover, online marketing activities are gaining popularity because they help to promote new product in a unique way and capture customer’s attention more quickly than traditional marketing activities. Again the selection of online marketing activities depends on the nature of product and the target customers. If the target market consists on youth then the best online marketing platform is social media because youth is highly influenced by social media. In the same manner, if the target market consists on professionals then the best online marketing platform is professional sites like linkedIn or other online website (Barone, Norman, & Miyazaki, 2007). Many marketers believe that a successful product launch with distinguishable online marketing activities helps a new product to swiftly establish itself among its target customers, gain their trust and market share, and enhance company’s position (Ahn, Ryu, & Han, 2005). On the other hand a poor product launch is a failure for the new product and also for the company because it desolate brand image and company’s position in the market. Additionally, the success of any new products depends how it has been presented in front of its market audience and how well it has been accepted by them (Neslin, et. al. 2006). According to a marketing survey, two-thirds of all new products fail within three years of their launch. Many factors contribute to this failure but the most common failure is ineffective promotional strategies. Sometimes, even well-developed, innovative products fail to capture market share and companies end up with pulling the product back or revamp it to gain space in the marketplace (Danaher, Andre and Sanjay 2008). Furthermore, when the marketing and launch strategy fails to score high marks on complex marketing mix then the chances of success of the product are very low. Therefore, for the success of any product it is necessary to adopt those strategies that effectively promote the product in the market and online marketing is very innovative and successful marketing channel through with companies can promote their products and increase sales (Goldfarb, and Catherine 2011). Online marketing or internet marketing, means using the internet to promote and sell the products and services. The main objective of online marketing is to bring customers to an organization’s website and provide them unique combination of products and services so that they purchase the product through online service or through conventional channel (Vogel, Evanschitzky, Ramaseshan 2008). But online marketing is not really simple it encompasses an extensive range of strategies for communicating virtually with customers and other stakeholders. Furthermore, the most common online marketing activities are: developing an organizational website, placing of advertisements of new products on the website, sending email messages to loyal customers to make them aware about new product, making efforts in search engine marketing in order to place the organization or product’s name top on the list when a customer look up the internet for a specific product or service. Along with these basic activities, online marketing can include wide range of other activities including marketing through mobile phones, online games, and placement of advertisements on social media. Online marketing is progressing rapidly, Both consumers and organizations gain new benefits as technology is advancing and companies fight to create innovative value offerings for their customers. According to Epstein and Yuthas, (2007), alone internet advertising can generate almost $12 billion in revenue, and with the passage of time the industry is continuously growing. The numbers are growing so furiously that it is difficult to obtain reliable data. However, the increase in spending on online marketing has negative impact on other marketing channels because it decreases spending on them. Some marketing researchers say that internet marketing activities are increasing at a rate of 40% annually and are faster in UK than USA (Kim, et.al. 2008). The reason behind the increasing rate in UK is because majority of British media is nationwide whereas in America there are many regional and local advertising agencies. Online marketing has created both opportunities and complexity for organizations to segment market, target market, and successfully communicate with target customers. Now, the use of online marketing extends far beyond customers, organizations’ website has become a primary platform for developing and managing relationships with employees, stockholders, trading partners, and the media (Naik, and Kay 2009). Marketing managers are responsible for developing distinguishable online marketing activities for the launch of new product and to predict the payoffs from the money invested in internet marketing. Although there are many ways that helps them to successfully launch a new product and to increase sale but the same factors that creates opportunities also creates high competition. Factors like deregulation, technology, and globalization has created both opportunities and intense competition for organizations (Neslin, 2006). Fortunately, the tools and techniques to track performance has been emerged and now markets can predict the return they can achieve with from the money the company invests on online marketing. Among online marketing, social media platforms are gaining popularity because they provide interaction, collaboration and sharing of information between producers and consumers. There are many different forms of social media platforms, including social blogs, weblogs, podcasts, wikis, and social bookmarking. As their popularity and usage is increasing exponentially not only consumers but business organizations, government organizations and different societal groups are using them as an effective communication tool (Van, Odekerken-Schröder, & Pauwels, 2006). Unlike general public these organizations use social media for promoting their products and services. Due to online marketing it becomes easy for business and other organizations to effectively communicate with their target audience. Social media has proved itself as the best platform for online marketing and have spectacular impact on brand’s reputation (Kim and Ko, 2010). According to the study conducted by DEI worldwide (2008), 70% of customers visit social media sites in order to get information about product or services and 49% of these customers purchase the product or get services because of the information they get through social media websites. The report addresses that those companies who are not using social media as a tool for their online marketing activities, are missing a serious opportunity to reach their target customers. Research Methodology Research Design In order to conduct the research on the impacts of online marketing activities of new product launch on sales secondary data has been collected, and the research design of this paper is based on qualitative data. The aim of this research is to identify the impact of online marketing activities on sale, new trends in online marketing, and to identify the importance of online marketing in this competitive era. Qualitative research is a realistic approach for descriptive topics; however its outcomes are open to questions and to different understandings. Furthermore, this study has been conducted as a part of applied research methods for business management and the project is necessary for the students of business management. Data Collection The approach that has been adopted to complete this report is secondary and the data has been collected from different secondary sources including, online journals, e-books, articles, reports, and newspaper articles. The data collection method is suitable for this research because the topic is descriptive and it can be explained more clearly by using qualitative information. Along with qualitative data a little amount of quantitative data has also been presented in this report but again the data is secondary and cited by its original source. Data Analysis Data analysis has been done by without any biasness and only relevant facts and figures have been presented in this report. The collected information has been reviewed strictly in order to check the accuracy, consistency, and clarity. The qualitative data was examined from the sources that are relevant to research question and objectives, and after analysis of secondary data it is identified that the goal of marketing activities is to foster company’s sale and in this regard online marketing activities are on top. Ethical Concerns In qualitative study, researchers heavily rely on data collected through primary and secondary sources like online journals, e-books, interviews, observations, and audio-visual material. The answer of respondents vary because every individual has its own perceptions so there are vast chances of ambiguous answers especially in response of open ended questions. On the other hand the secondary data available on different resources cannot clearly explain the research topic because it may be collected or presented for different purpose. Thus, the quality of data and its use on different purpose is an ethical concern. Another major ethical concern that researchers have to face is the change in societies because every society has its own way of living and thinking so secondary information gathered from the research article based on one society cannot clearly implemented on others. Limitations of the study The major limitation of qualitative research is time consumption. Qualitative research takes a lot of time and due to shortage of time research can do any mistake, therefore he/she has to be very careful and manage time efficiently. Another limitation of this research is availability of information, as this research is purely based on secondary data so it was very difficult to gather relevant and consistent data. Online marketing is emerging day by day and due to this it was very difficult to cover all its important points. Another limitation of qualitative study is built-in-bias because in qualitative research the research can mould the answers collected from respondents or can misunderstood the information available on other resources. However, in writing this research researcher tried to be unbiased and to present accurate results and findings. Findings Impact of Online Marketing Activities on sales Managers strive to bring dramatic change in sales by using effective marketing techniques. The competition and tension is increasing with the passage of time and they are trying to improve firm’s value and financial data by marketing strategies like new product launch and promotional activities. It has been revealed by many researches that there is a positive impact of online marketing activities of any new product on its sale. The important point on which every marketer needs to pay close attention is the usage of right online activities (Guenzi, & Troilo, 2007). Not all online marketing activities are can promote any new product and increase sales. The correct mix of activities is necessary to make the new product noticeable and to increase its sale. Customers purchase those products which get their attention and promise to satisfy their needs. It is necessary for the promotion of new product that its advertisement identifies particular need of a target segment and communicates that how the product will satisfy that particular need. Current Trends of Online Marketing Marketing is a dynamic area and online marketing is its new face, which is constantly emerging. The field require innovation and it is the only rule of thumb through which companies can effectively market their products and services. The latest trends of digital or online marketing that has bring vigorous change in organizations’ profitability are: Mobile-First Marketing, Social Media Marketing, Image-Centric Content, and Marketing Memes. If any business wants to attract more people into its website, increase customer share, and enhance branding then above mentioned latest e-marketing trends will help the business. Mobile-First Marketing Usage of mobile phone is increasing drastically and marketers endeavour to create mobile friendly site and advertisements for the promotion of their business or products. In 2014 mobile optimization was on priority for businesses, but 2015 seems to be the year where mobile strategies will move beyond mobile app and will focus more on mobile-optimized content and marketing via social media (Hamid, & McGrath, 2015). Google has been placing special importance on mobile-friendly site so that users can easily use Goole services through their mobile phones. The launch of Google Webmaster Tool “Mobile Utility” is a proof that Mobile phones will soon take the place of laptops and mobile marketing will become very useful for business for the promotion of their new or existing products. Social Media Marketing Social media is a great platform where people interact with each other’s but not it is not only a platform where people interact but it has become a powerful tool for government and business organizations to communication with people. Through efficacious social media marketing business can gain website traffic or attention and hence can increase sale. According to a survey conducted by Ipsos Thinking Exchange (OTX) in America average individual spends at least two hours a day in social networks (Strauss, Frost, & Ansary, 2009). This reveals that promoting new products via social networks can capture customers’ attention more easily and can help business to generate more profits. The most important social media sites that can help business to gain market share includes: Facebook, Twitter, Instagram, Pinterest, LinkedIn, Google+, and Youtube. Image-Centric Marketing We are in the era of visual culture because communication via images is has been increased and now people can communicate well through visuals than any amount of text (Stokburger, 2010). Communication via photos is gaining popularity than content marketing. If a business knows how to create a perfect blend of visual and contents then it can market itself better than competitors and can attract more customers. Understanding of Image-centric marketing facilitates business to design effective marketing campaigns and promote their products and services. The most important ways to use image-centric marketing are: use relevant images, enhance the content, improve SEO, and place content in right place. Marketing Memes Meme in simple words means “a package of culture” but in today’s world it has become a marketing trend. It is a popular e-marketing trend in which an image with some phrase depicts a funny situation. Marketers are using memes to capture customers’ attention and it is a very useful way because people enjoy memes and easily remember them. Advertisers constantly look for ways to captivate customer attention and memes marketing is a great way to do that. People live pictures and humour, and the combination of these two can make any marketing campaign successful. Memes are a part of image-centric marketing but with humour. Memes marketing simply means catering target audience with visual humour and it is very effective. Importance of Online Marketing In this digital era is becomes necessary for companies to promote their products and services via online channel. Online marketing also known as e-marketing, web marketing, or i-marketing, mean advertising via web or internet. It is a very interactive tool used by marketers to interact with public at large. The most important purpose of online marketing is to promote products or services at lowest possible cost and to maximise sales and profit. Internet marketing is very important because it capture customer attention and helps them to make purchase decision. Customers use internet to find information about product features and even compare products or services with competitor’s offerings. Many analysts indicated that consumers use social media to find about price, product features, and usage before making final purchase decision (Mohr, Sengupta, & Slater, 2009). Furthermore, customers use internet to make online purchases and it has become a new channel of shopping. Internet market enables businesses to build good relations with their customers and identify their real needs and wants. Communicating with customers via internet is low cost and gives great results to business in terms of customer information, trust, and feedback. Online marketing can be altered and implemented much faster than any other form of marketing and through online marketing business can reach their target customers within days or hours. The advantages that companies get through online marketing are: convenience to communicate with target audience, reach, cost effectiveness, personalization, and customer relation. Conclusion It has been revealed from literature review that online marketing activities of a new product launch has a significant positive impact on sales and through effective online marketing techniques business can increase their sales and profits. With the passage of time use of internet for business purposes is evolving and marketers endeavour to find those ways that gives them competitive advantage. Current online marketing techniques which have been widely used by businesses are: mobile marketing, social media marketing, image-centric marketing, and memes marketing. 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