Economics, Information Systems, and Electronic Commerce Strategy

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Table of Contents

Internet and marketing
Consumer behavior and E-segment strategies
Differentiation and positioning strategies
Reference List

Internet and marketing

Primary and secondary data

Primary data is information that is collected first hand from the field (Kumar, 2005). On the other hand, secondary data is information that is recorded by other organizations, agencies, and people for other reasons other than the current problem (Kumar, 2005). In E-marketing, secondary data includes organizations’ websites, e-books, and e-journals (Kumar, 2005).

Steps in primary marketing research project

There are eight steps in a primary marketing research project including defining the problem, determining research design, identifying data types and sources, designing data collection forms and questionnaires, determining sample plan and size, Collecting data, analyzing and interpreting data, and preparing research report (Kauffman and Tallon, 2009).

Problem definition: The management translates the problems they face into questions that outline the data needed to obtain the information. The research objectives are outlined to identify outcome (Kauffman and Tallon, 2009).

Research Design: Marketing research can be put in one of three groups, namely explanatory research, descriptive research and causal research (Kumar, 2005). A research design is selected in relation to the set objectives and outcome expected.

Data collection: There are two categories of data collection namely primary and secondary data collection methods. Before one goes to the field to gather primary data, they should check the secondary data that can be used for the current study (Kumar, 2005). Secondary data can be found from organization’s website. Secondary data saves time and money but may not fit the current problem efficiently(Kumar, 2005).

Primary data can be collected to supplement the secondary data. A company can collect primary data in marketing research to identify opinions about the company, awareness, and knowledge about the brands in the company among others (Kauffman and Tallon, 2009). Primary data is collected through interviews and observation.

Questionnaire Design: It is important to choose well-constructed questions to avoid errors and invalid data (Kumar, 2005).

Measurement Scales: Attributes are measured on nominal, ordinal, interval, and ratio scales (Kumar, 2005).

Sampling Plan: Sampling plan is how the researcher intends to chose the interviewees to be used in data collection (Kauffman and Tallon, 2009).

Data Analysis/Preliminary Steps: When doing data analysis the raw data must be transformed to the right forma and the data must be edited to eliminate errors (Kumar, 2005). The data must be coded to convert the data into numbers and symbols. Simple and cross- sectional tabulations are used in analyzing the data. Cross-sectional tabulation is more appropriate for marketing research because it divides the sample into sub-groups to indicate how the dependent differ in the sub-group (Kumar, 2005).

Hypothesis Testing enables the researcher to accept or reject the hypothesis that has been formulated for the research.

Marketing Research Report: Making the marketing research report is the final stage of the research process. The components of a research report are as follows: letter of authorization for the research from relevant authority, table of contents, list of illustrations, executive summary, research objectives, research methodology, results of the research, limitations, conclusions and recommendations and finally appendices containing copy of questionnaires used in the research (Kumar, 2005).

On-line research approaches and data collection methods

There are different methods and approaches used in data collection. Some of those methods include web-assisted personal interviewing, online survey, online focus groups, in-depth interviews and roving laptop based interviews (Kauffman and Tallon, 2009). Web-assisted personal interviewing [WAPI]), is the use of telephone to interview the target group and use of online data entry (Kauffman and Tallon, 2009).

Online survey uses social sites (Face book, twitter, 2go) to recruit people to participate in the survey. Online focus groups allow formation of online groups to discuss specific issues of the research. An in-depth interview is characterized by intensive interviews to the selected group to get answers for set questions and objectives.

Roving laptop-based interviews using computer-assisted personal interviews are used in administering personal interviews that allow the interviewee to respond through personal computers (Kauffman and Tallon, 2009).

Sources of secondary data available to marketing managers

Secondary data is “available effortlessly, rapidly and inexpensively” (Kumar, 2005). In most cases, marketing managers can access secondary data from online sources, books, journals, and from archives. In online marketing, marketing managers can access secondary data from online sources.

The online sources available for marketing managers include organizations websites. Secondary data is not hard to retrieve and it can be retrieved from other organizations instantly as long as there is access to the website. Organizations that are carrying out a current research project usually accumulate and store their data in their website (Kumar, 2005).

Advantages and disadvantages of on-line marketing research

Online marketing research is becoming popular around the world due to globalization. Online marketing research has both advantages and disadvantages. Advantages of online research marketing include speed and low cost of implementation (Fill, 2009). Online marketing and research is very cheap because any one around the globe can be able to communicate without necessarily having to travel around the world (Fill, 2009).

Doing online surveys eliminates paper usage, wastage and postage charges hence reducing cost (Fill, 2009). In addition to this, online marketing research enables easy implementation or execution (Fill, 2009). It is very easy to reach many people online, which also enhances communication. Different people can be able to respond to surveys and get instant feedback.

On the other hand, there are a number of disadvantages associated with online marketing research. For instance, in online research, marketers do not see who is participating in the research (Fill, 2009). In case of unlimited internet access, the whole process may not be successful (Fill, 2009).

Children are not allowed to access internet and this may result to companies not getting appropriate result especially regarding consumer’s preferences. Lastly, consumers may not be certain about their privacy in this kind of research and sometimes consumers are not sure whether the researcher will sell or disclose their responses (Fill, 2009).

Reliability, validity, and generalisability of on-line marketing research

Regardless of the technique of data collection, response rates to online-based surveys have been declining over the years. Because of this online marketing research has been deemed unsuccessful. According to research finding conducted in the year 2000, email and other internet related surveys generated an average of 37 per cent response (Yang and Lester, 2004).

It has been noted that the average response rate to online-related research (including online-marketing research) has a low response rate of 10 per cent. Non-internet marketing based research like survey papers has a high response rates compared to internet-based surveys (Yang and Lester, 2004).

The low rates can be attributed to unsolicited emails and lack of online privacy (Yang and Lester, 2004). Since marketing research cannot determine who provides the response, online marketing research is not a very reliable way of research, and marketers are advised to rely on different research sources.

Development in online marketing research

In the recent past, online-marketing research has experienced growth. Many people around the world have continued to use internet and therefore marketing researchers have began relying on online marketing.

The new developments in this form of research have been experienced with emergence of new digital portfolios such as Face book and Twitter, which has enhanced communication (Fill, 2009). In addition, Real-Time web has enabled the rapidity of marketing research (Yang and Lester, 2004). Since cell phones have penetrated everywhere around the world, this has enhanced new marketing application with the trend being expected to change in 2015.

Consumer behavior and E-segment strategies

General understanding of the online consumer

In a big way, online consumers have increased with the growth of internet globally. For online consumers, the decision to buy or purchase any product/services is reached based on problem recognition, access of information, purchase decision, alternatives evaluations, and post-purchase evaluation (Fill, 2009).

For online consumers, the process of making a decision whether to purchase a product or not is determined by factors such as online information access, comparison of quality and prices on the internet, and online purchase (Fill, 2009).

In influencing a consumer to purchase a certain product, tailoring marketing communication plays a major role in the decision-making (Fill, 2009). Sometimes, online consumers make decision to purchase products on the internet based on experiences. Generally, the type of product influences decision-making by online consumers and consequently, consumer’s behavior (Fill, 2009).

Characteristics and resources

Individuals are likely to have positive attitude towards technology. Online buyers tend to have the attitude that their lives are enriched by technology (Viva University, 2009). Skills and online experience are also critical characteristics since those that have been online for many years are able to locate information and products easily than new users.

Gender also influences shopping cart where women are less positive about internet shopping generally compared to men. In addition, online shoppers are goal oriented (Viva University, 2009). Lastly, differences in family life cycles influence what is sought online. Online behavior among individuals nonetheless varies and goes beyond the conventional social and cultural trends (Viva University, 2009).

Thus, non-internet users and internet users are different. The resources they use are their cost and include monetary value, time where on average users are reported to be online 29 times a month and 49 minutes on average and the energy and psychic cost where consumers may view it as troublesome to turn on a computer (Viva University, 2009).

Usage segments and their characteristics

Home and work access: This segment focuses on differences in the place from where one access the internet because these segments have varying needs on the web (Viva University, 2009).

Access speed: This aspect focuses on the type of internet connections and the receiving appliance e.g broadband vs. PDAs and cell phones (Viva University, 2009).

Time online: In this respect, this segment looks at the amount of time one spends online. This has been categorized into simplifiers, surfers, connectors, bargainers, routiners and sportsters (Viva University, 2009).

Industry: specific usage segments- this focuses on the variation in usage between various industries or business types.

Coverage strategies e-marketers can use to target online customers

There are four coverage strategies. The first is Mass marketing where one marketing mix is used for the entire market (Viva University, 2009).

The second is Multisegment marketing where a firm selects two or more segments and comes up with strategies for each. The third is Niche marketing in which a firm may select one segment and comes up with varying marketing mixes for the said segment (Viva University, 2009). The fourth is Micro marketing whereby marketing mixes either in part or fully are tailored to a very small number of individuals.

Categories of outcomes that consumers seek from online exchanges

Connect: Using two way communications, individuals are able to interact with each other and with organizations (Viva University, 2009).

Enjoy: Many consumers find entertainment in the internet.

Learn: Information available in the internet facilitates learning of issue such as news, travel information among others (Viva University, 2009).

Differentiation and positioning strategies

Positioning and differentiation

Product differentiation is integration of important features in a product such as quality and price (Siu. Edu, 2009). Incorporation of these features in a product encourages the customer to perceive the product as different, unique, and desirable (Siu. Edu, 2009). Product differentiation is important as it puts a company in an advantage position against competition (Siu. Edu, 2009).

Product positioning is the unique way you provide your product and services as you enter the market (Siu. Edu, 2009) and it is the next step after a company has already done product or service differentiation.

In a company manufacturing solar panels for instance, in order to ensure product positioning, such a company can market it self on premises that it offers its product in a timely manner (Siu. Edu, 2009).

In such a case, the product (solar panel) is positioned against it competitors on the basis of timely delivery. Generally, product differentiation and positioning are key parts of organization’s marketing strategy and they are very useful in keeping and maintaining the company in business competition (Siu. Edu, 2009).

Differentiation dimension and internet-specific differentiation

A manufacturing company can differentiate along dimensions such as product, services, personnel, channel, and image (Siu. Edu, 2009). Product differentiation is very significant in online-marketing strategy. Product differentiation can be done in areas of product pricing and packaging (offering friendly prices and attractive packaging).

In E-marketing, customers services can be enhanced by keeping your customers updated through out. Channel, image, and personnel differentiations are important as they enhance efficient communication, product branding, and quality services respectively (Fill, 2009).

There are about six internet-specific differentiation strategies and they include atmospherics, build trust, customer’s relationship management, user-generated content, pricing, and efficient and timely order processing (Fill, 2009). Atmospherics/environment site enhance information access and downloads (Siu. Edu, 2009).

While build trust regards safe and encrypted payment procedures for customers, user-generated content is about building trust with your customers, and customer relationship management is about building a long-term relationship with your customers as well (Siu. Edu, 2009). Lastly, proper pricing and timely delivery of product and services is meant to attract and satisfy customers.

Companies and repositioning

Repositioning in marketing can be referred as the process of developing a new or better brand, company, or product and service position (Siu. Edu, 2009).

A company can reposition in terms of technology, benefit, service attribute, competitor, integrating positioning, and user category (Siu. Edu, 2009). Regarding service/product attributes, a company can reposition itself by including qualities such as size, color, ingredients, and speed (Siu. Edu, 2009).

An office sits manufacturing company can reposition itself in terms of technology by producing sits that are flexible with different preferences to attract the customers. Benefit positioning enables customers to enjoy other benefits. For instance, in website that sells motorcycle, visitors can send greeting cards or download games and so on.

Competitor positioning enables organization to be on competition advantage against its competitors. For instance, the statement “the car in front is always a Toyota” puts Toyota Company ahead of its competitors. Generally, a company should reposition itself based on the market feedback (Siu. Edu, 2009).

Reference List

Fill, A., 2009. Marketing communication: interactivity, communities and content. Harlow: prentice hall.

Kauffman, R. & Tallon, P., 2009. Economics, information systems, and electronic commerce: Empirical research. New York: M.E Sharpe.

Kumar, R., 2005. Research Methodology: A step by Step guide for beginners. London: Sage publications.

Siu. Edu., 2009. Differentiation. Web.

Viva University, 2009. Consumer behavior online. Web.

Yang, B. & Lester, D., 2004. Attitudes towards buying online. Cyberpsychology & Behavior, 9, 285-296.

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