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CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES
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CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES

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  • 1. ABERDEEN BUSINESS SCHOOLA dissertation submitted in partial fulfilment of the requirements for the MSc degree in International Business CRITICAL ANALYSIS OF EFFECTIVE INTERNET ADVERTISING DONE BY SMALL BUSINESSES Supervisor: Dr. Robert Newton.By Tushar T. DalviStudent No: 0915557MSc. International Business (Full-time)Word Count: 18750Submission date: 18th January, 2012
  • 2. ABSTRACTBritain has the most developed online advertising market in the world whichthe report by the Internet Advertising Bureau (IAB),PricewaterhouseCoopers and the World Advertising Research Centre saidwas worth 2.8 billion pounds ($5.6 billion) in 2007 (Reuters, 2008). Yetsmall businesses are left away from the fruits of these flourishing trees.The aim of the study is to develop a model of effective online advertising forSmall Businesses by critically analysing the marketing activities of Indianrestaurants involved in online advertising activity and located in Aberdeencity.A qualitative research approach was adopted with a constructivist researchphilosophy using one-to-one, in-depth interviews with the marketingmanager’s of ten Indian restaurants respectively. The data analysis wascarried out by using SPSS. The interpretation of the data is presented inSection 4.The study successfully developed a model of effective online advertising tofacilitate its better implementation by Small Businesses. The model includesthree key elements of online advertising. Such as format of advertising;Support in form of marketing integration and Performance managementsystem.The outcomes of the study illustrate the specific barriers encountered bysome Small Businesses in adopting online advertising; identify how someSmall Businesses in regional economies could do better by using onlineadvertising and develop a model to facilitate better implementation infuture for other Small Businesses.The recommendations are purely based on the study conducted on the 10selected restaurants which may or may not be applicable to somerestaurants doing business in other parts of United Kingdom. Thus there isa need to carry out this study on a wide scale throughout United Kingdom.MSc. International Business
  • 3. Declaration & AcknowledgementThis dissertation is my own work and all sources have been acknowledged. Iwould like to extend my sincere thanks towards my supervisor, Dr. RobertNewton for his insightful advice, time, encouragement and assisting with myresearch.My sincere gratitude is extended towards the members of The Robert GordonUniversity for their time, ideas and assistance with the research process.Special thanks are extended to all of my friends and family for their supportthroughout the year.MSc. International Business
  • 4. Table of ContentsTable of contentsAbstract………………………………………………………………………………………………………………………..Declaration & Acknowledgement ……….……………………………………………………………………..List of Contents……………………………………………………………………………………………………………List of Figures………………………………………………………………………………………………………………List of Tables………………………………………………………………………………………………………………..Section 1: Introduction of Research 1. Preface………………………………………………………………………………………………………….1 2. Research……………………………………………………………………………………………………….3 3. Rationale……………………………………………………………………………………………………….4 4. Significance…………………………………………………………………………………………………..6Section 2: Literature Review 1. Introduction………………………………………………………………………………………………….8 2. Small Businesses………………………………………………………………………………………….9 2.1 Introduction….…………………………………………………………………………………….....9 2.2 Definition of SME………………………………………………………..........................9 2.3 Small Businesses….....................................................................10 3. Marketing in Small Businesses………………………………………………………………….11 3.1 Introduction………………………………………………………………………………..………..11 3.2 Approach towards marketing….……………………………………………………………11 3.3 Evolution in Small Business Marketing…………………………………….………….14 3.3.1. Carson’s four stages of evolution..………………………………………….14 3.3.2. Role and Relevance of marketing model………………………………….15 4. Advertising and Small Businesses…………………………………………………………..18 5. Internet Advertising…………………………………………………………………………………21 5.1Definition…………………………………………………………………………………........21 5.2Growth in Internet Advertising………………………………………………........22 5.2.1 Advertising Formats………………………………………………………..24MSc. International Business
  • 5. Table of Contents 5.3 Reasons for Growth………………………………………………………………….........25 5.3.1 Key drivers for growth in ad spend………………………………….26 5.4 Benefits of advertising online…………………………………………………………….28 5.5 Internet Advertising and Small Businesses……………………………………….31 6. Problems in Internet Communication and their solutions ……………………33 6.1 Five Problems of Internet Communications………………………………..33 6.1.1. Unclear communication strategy……………………………………34 6.1.2. New Communication Paradigms…………………………………...34 6.1.3. Non-Integrated marketing communication……………………35 6.1.4. Company involvement in the internet challenge……………35 6.1.5. People for Internet communication………………………………..36 7. Measuring effectiveness of Internet Advertising……………………………………….37 7.1. Financial Measures………………………………………………………………………………37 7.1.1. Importance of financial measure…………………………………..38 7.2. Standardised Measures………………………………………………………………………39 7.3. Measurement Problem……………………………………………………………………….39Sections 3: Research Methodology 1. Introduction………………………………………………………………………………………………..44 2. Methodology……………………………………………………………………………………………….45 2.1 Research Philosophy……………………………………………………………………………45 2.2 Research Approach……………………………………………………………………………..46 2.2.1 Qualitative………………………………………………………………………………….47 2.2.2 Inductive…………………………………………………………………………………….48 2.3 Research Strategy……………………………………………………………………………….48 2.3.1 Case study………………………………………………………………………………….49 2.4 Time Horizon (Cross-sectional)………………………………………………………….49MSc. International Business
  • 6. Table of Contents 2.5 Data collection method……………………………………………………………………….50 2.5.1 Secondary method……………………………………………………………………50 2.5.2 Primary method………………………………………………………………………….51 2.6 Narrative Structure of the study………………………………………………………..53 2.6.1 Drafting a proposal……………………………………………………………………53 2.6.2 Formulating research design……………………………………………………..54 2.6.3 Conducting research………………………………………………………………….55 2.7 Validating, Reliability and Generalisation……………………………………………56 2.8 Ethical consideration……………………………………………………………………………57 2.9 Limitation of the study…………………………………………………………………………57Section 4: Findings & Analysis, and Discussion 1. Introduction…………………………………………………………………………………………….59 2. Findings and Analysis………………………………………………………………………………60 2.1 Demographics…………………………………………………………………………………….60 2.2 Classification……………………………………………………………………………………….61 2.3 Planning………………………………………………………………………………………………67 2.4 Preparedness………………………………………………………………………………………68 2.5 Use of Performance Management System on Marketing Strategies…70 2.6 Modifications based on PMS and Information gathered……………………71 2.7 Owner/Managers Understanding of External Market………………………..72 2. 8 Marketing VS Categories…………………………………………………………………..73 2.9 Understanding the Marketing activities of Outperformers………………..74 2.10 Model of effective online advertising……………………………………………….77MSc. International Business
  • 7. Table of Contents 3. Discussion…………………………………………………………………………………………………68Section 5: Conclusion and Recommendations 1. Conclusion and Recommendations ……………………………………………………….93 1.1 Conclusion……………………………………………………………………………………..93 1.2 Effective model of online advertising strategy for small businesses……………………………………………………………………………………………….96 1.3 Recommendations…………………………………………………………………….97References………………………………………………………………………………………………………………………Appendix…………………………………………………………………………………………………………………………MSc. International Business
  • 8. List of Figure List of Figure Fig 1: Overview of the literature 8 Fig 2: The role and relevance of marketing. 16 Fig 3: The role and relevance of marketing with strategies: 16 Fig 4: UK Online AD spend. 23 Fig 5: The Digital Media Mix: % Share of revenues generated by different Advertising formats during 2008 and 2009. 24 Fig 6: Research Design 54 Fig 7: Relation between years of online experience and percentage increase in sale for 2009. 64 Fig 8: Planning: Time and efforts spend on Business planning and developing marketing strategies. 67 Fig 9: Preparedness: The chart explains three elements representing the preparedness of the participants against external forces. 68 Fig 10: PMS on Marketing Strategies: the chart explains amount of time spend on conducting Performance Management System (PMS) on Marketing strategies. 70 Fig 11: Extent of modification based on PMS and information gathered: the chart explains the extent of time spend by participants on modifying their business activities based on the PMS results and information gathered. 71 Fig 12: Understanding of external market: the chart explains the owner managers understanding of their external market. 72 Fig 13: Increase in sales for each participants. 81MSc. International Business
  • 9. List of Tables List of TablesTable 1: Requirements for financial years ending before 30 January 2004 10Table2: Benefits of Internet Medium for small businesses. 31Table 3: Company details 60Table 4: Comparison of annual sales turnover between 2008 and 2009. 62Table 5: Categorisation of respondents based on performance in market 62Table 6: Classification of participants based on online experience. 63Table 7: Analysis by age. 65Table 8: Marketing activities performed by different categories: 73Table 9: Marketing activity performed by Outperformers: 74-75Table 10: Model of effective online advertising 77Table 11: Commonalities between R1, R2 and R3. 85Table 12: Advantages of important channels of advertising online. 90MSc. International Business
  • 10. I. PrefaceInternet advertising is registered to be worth of £1.97 billion in first half of2010, up 10% on like for like increase compared to last year (IAB, 2010)while overall UK marketing ad spend registered budget cuts at the end of2010 (Sweney, M., 2011). The catalysts maintaining the growth of onlineadvertising expenditure are increasing online population, increasedbroadband network, increasing social network fever, connectivity throughdifferent devices and other benefits associated with the medium. Accordingto Weberg and Ljunberg (2001) as more people have adopted internet andtechnology world has become smaller and inter connected “global village”(Precce, 1994).According to UK online measurement company (UKOMC, 2010) the Britons38.8 million people are connected to 1.8 billion people from around theworld (Internet world statistic, 2010) to communicate with each other.Internet has made our day to day activities so simple that fromentertainment to education and socialising to shopping everything isaccessible only from a click of a mouse. Advertisers believe that internet isa cost effective and measurable medium for advertising. The Pay per Clickand Pay per Impression methods of payment makes advertising costeffective as advertisers only pay for advertising to potential customers.Internet advertisings are interactive which makes lasting impression on theuser. Paid search providers such as Google and Yahoo assist advertisers byproviding performance reports which increases the efficiency of theMSc. International Business Page 1
  • 11. advertising campaigns. These are the opportunities Internet has for thoselooking forward to increase their range and communicate to large audience.Although, internet has all this to offer small businesses shy away from itdue to fear of expense, lack of expertise and other such reasons. Whereas,around 99% of UK’s business market is shared by SME’s which employaround 50% of UK’s population alone. Also the key feature of internet ofbeing vast and available worldwide becomes a limitation in itself for smallbusinesses. With the increase of user population the population ofbusinesses online is also increasing thus exposing the small business to thedanger of getting lost in a virtual jungle without being noticed (Morgan,1996 and Vescovi, T. 2002). Hence considering the necessity this researchwill explore the marketing practice of small businesses to understand andcritically evaluate their use of internet for advertising purpose. In thiscontext small business refers to those businesses with no more than 30employees and balance sheet turnover not more than £2.8 million.MSc. International Business Page 2
  • 12. II. The ResearchAim of the study:The study aims at fulfilling the gap in the literature by developing a modelof effective internet advertising strategy for small businesses. The studyintends to accomplish its aim by exploring, analysing and criticizing theavailable information to devise an answer for question which is at the heartof this research i.e.What are the key factors responsible for the effectiveness of internetadvertising done by outperforming Small Businesses?Research Objectives: • To criticize and appraise the role of marketing function in small businesses. • To comprehend, analyse and criticize the role and importance of advertising in marketing activities of small businesses. • To study and slate the internet advertising and its types adopted by small businesses in general. • To criticize and analyse the barriers faced by Small Businesses in adopting online advertising. • To examine and discuss the available source and techniques for Small Businesses to overcome the barriers faced. • To develop and understand the marketing activities of participating sample case studies. • To build up a model of effective internet advertising for Small Businesses.MSc. International Business Page 3
  • 13. III. RationaleInternet medium is gaining popularity among the marketers which can beseen from the year over year increasing internet advertising expenditure.The medium has huge range of benefits to offer which unfortunately onlyhuge marketers are able to gain while small businesses have been leftaway. Small and medium size enterprises (SME) form about 99% of theoverall UK business market employing 50% of the UK working population(DBERR, 2007). The marketers are moving away from tradition medium tointernet medium for advertising while most of the Small Businesses are stillmore reliant on traditional forms rather than online medium for advertising.Perhaps there are few misconceptions among Small Businesses such asonline advertising is expensive only for big marketers with big budgetedcampaign’s (Dietrich, L., 2010) and uncertainty of benefits for the business(Dyerson, R., et al., 2009). These misconceptions pull out most of the Smallbusinesses away from enjoying the benefits of online advertising, whereasout of others which adopt online advertising only some can use it efficiently(Walczuch, R. et al., 2000).The literature has various studies available which highlights the effectiveuse of internet by Small and Medium Enterprises (SMEs) for ecommerce;factors influencing adoption of internet by SMEs (Hill, J., 2001; Walczuch,R. et al., 2000; Vescovi, T., 2000) and nature and purpose of adoption ofinternet by SMEs (Sadowski, B. M., et al., 2002; Grandon, E. E. andPearson, J. M., 2004; Damaskopoulos, P. and Evgeniou, T., 2003). HillMSc. International Business Page 4
  • 14. (2002) in his study states three factors that effects internet adoption bySMEs such as Perceived benefits, Organisational readiness and externalpressure. Sadowski`s (2002) exploratory study concludes that SMEs areopportunistic rather than strategic in adopting internet. He believes thatinternet has a strategic advantage which only small fractions of SMEs havemanaged to gain. The study also points out the key influencing factor foradoption of internet as communication need. Perhaps some other authorsfocus on explaining the factors of strategic value and adoption of internetfor different purposes such as e-commerce, communication, e-business, etc(Grandon, E. E. and Pearson, J. M., 2004; Damaskopoulos, P. andEvgeniou, T., 2003; Gilmore et al., 2007). Hence literature covers range oftopics around the online medium while focusing on SME’s rather thanexplaining internet advertising strategy specifically targeting SmallBusinesses.MSc. International Business Page 5
  • 15. IV. Significance of the studyThe study intends to determine and examine the factor responsible for theeffectiveness of the internet advertising done by Small Businesses.Currently there is a gap in the literature regarding the effective adoption ofinternet medium by small businesses for advertising purpose. The internetadvertising expenditure is gaining a momentum in its field. Also the socialnetwork craze has made the internet a part of our daily social life.Although, large businesses are taking benefit of the increasing popularity ofthe internet it is unfortunate on part of small businesses that they are nottaking the complete advantage of the benefits on offer. Therefore, it isnecessary to study the internet advertising strategy of the small businessesand present a model of effective online advertising for Small Businesses.This model will help Small Businesses to develop their internet marketingstrategy which will ensure possibility of effective results. This evaluation willhelp the Small Businesses to identify the reasons for underperformance orover performance and take required remedial decisions. Also it will help thesociety at large by making available the product information of local smallbusinesses as it recommends the use of internet medium to smallbusinesses for advertising purpose.MSc. International Business Page 6
  • 16. Section 2: Literature ReviewMSc. International Business Page 7
  • 17. 1. IntroductionLiterature review is a vital part of a dissertation. It helps to acquire theunderstanding of the topic, empirical studies already conducted on it, howthe research was conducted and what were the key findings (Hart, C.1998). The review is sourced from a wide range of empirical literaturemade available from university Library, Online Database, Officialgovernment websites and Company websites and Annual reports.This Literature review is divided in four chapters discussing the findingsderived from the intensive secondary research conducted by the author.Fig 1: Overview of the literature (Source: Author).MSc. International Business Page 8
  • 18. 2. Small Businesses2.1. Introduction:Small and medium sized enterprises (SME) are 99% of UK’s 4.3 millionbusinesses forming the important part of UK’s economy. The SMEs acrossUK provide over half of the employment (58.9%) in the nation (DBERR,2007). Encouraging and promoting growth among SMEs is at the heart ofpolicy making UK government and European Union. The SMEs help to boostthe national economy and encourage competition at both, domestic andinternational level (Dyerson, G. et. al., 2009). To better understand Smallas a term it is necessary to first understand the official definition of theSME.2.2. Definition of SMEThe companies Act 2006 define SMEs as a company or a business which isof small or medium size and not a member of large group (HM Revenue &Customs, 2010). A small or medium-sized company/business is defined inSection 382 and 465 Companies Act 2006. “ A company/business qualifiesas a small or medium-sized for its first financial year if it satisfies two ormore of the requirements (Table 2 & 3) for being a small or medium-sizedcompany/business in that financial year. Once a company/business hasqualified as a small or medium-sized you should keep on treating it as asmall or medium-sized company/business unless it fails to meet therequirements for two years in a row. Where a large company/businessreduces in size to become a small or medium-sized you should not treat itMSc. International Business Page 9
  • 19. as one until it satisfies the requirements for two successive years. (HMRevenue & Customs, 2010)” Turnover Balance Sheet Total no of (not more than) Employees (not more than) (not more than)Small Company £5.6 million £2.8 million 50Medium-Sized £22.8 million £11.4 million 250CompanySource: HM Revenue & Customs, 2010.Table 1: Eligibility requirements for financial years ending on or after 30 January 20042.3. Small Businesses:A business can be an individually owned proprietary business; a partnershipbusiness; a registered friendly society or a corporate body which is undercorporation tax. Base on these definitions Small Business which is thesubject of the study can be defined as “A business with actual turnover notmore than £5.6 million; balance sheet turnover not more than £2.8 millionand not more than 50 employees can be classified as Small Business. (HMRevenue & Customs, 2010)”MSc. International Business Page 10
  • 20. 3. Marketing in SmallBusinesses:3.1. Introduction:To understand the behaviour of Small Businesses towards online advertisingit is necessary to first look at the role and relevance of marketing to theSmall businesses (Simpson and Taylor, 2000; 2002). Marketing in smallbusinesses has been a long subject of study among researchers andacademics (Simpson, M. et al., 2006 and Gilmore et. al. 2001). Accordingto Siu and Kirby (1998) knowledge about marketing in small business stillremains insufficient and a small business marketing theory and knowledgeof strategic marketing is needed. This chapter critically evaluates anddiscusses work of some of the authors on the concern topic.3.2. Approach towards marketing:Waterworth, D. (1987) in his book cites that the important differentiatingcharacteristic of a small firm is that it is often established and handled in allits aspect by a single owner manager. On the contrary some small firmsare managed and handled by a group of people often a family business or apartnership firm between friends. However, Stokes, D & Wilson, N. (2006)suggest that it is the owner manager or one of the owner managers who isresponsible and controls the critical function of marketing that determinesthe success or failure of the business.MSc. International Business Page 11
  • 21. Some empirical studies have proved that marketing as a function is equallyrelevant to small firms just as it is to large firms (Hogarth-Scott, S. et. al.,1996). Whereas Carson (1985) observed that small businesses face someoperation constraints which set them apart from large business suggestinga need for different less strategic approach. This is very much justifiabledue to the characteristics of small businesses such as small customer base;resources constraints; owner mangers knowledge of marketing; uncertaintyand evolution are the factors which give rise to marketing issues andproblems (Stokes, D & Wilson, N., 2006).Kenny and Dyson, (1989) in their research found that in practice the ownermanagers of the small firm give little but no importance to the sophisticatedmarketing theories as they do not feel any necessity to adopt them. Kennyand Dyson (1989) even go to the extent of stating that these ownermanagers are always unreceptive to any type of marketing activities unlessthere is growth in revenues, expansion in business, depletion in profits andsaturation or increased competition in market. So Small business ownerslater in their business lifecycle adapt to marketing but do not perceivemarketing in its classical form. However small businesses carefully considerthe cost of marketing activities against the possible consequences ofleaving with uncertainty and risk, and adopt marketing activities merelyunder the pressure of increased need for planning and information (Kennyand Dyson, 1989). Further Carson suggests that the non-strategic approachhas number of characteristics:MSc. International Business Page 12
  • 22. • Lack of formalized planning of marketing: Most of the marketing activities are reactions to the activity in market place. • Restricted scope and activity: due to the financial resource constraints small businesses shy away from huge and expensive marketing campaigns. • Simplistic and haphazard: The owner manager lacks marketing expertise thus implement random and basic marketing activities. • Product and price oriented: the marketing mix only focuses on providing products at competitive prices and overshadows promotional activities, channels of distribution and potential new markets. • Owner-managers involvement: the knowledge and skill of owner manager is reflected in the marketing activities conducted by those small businesses.Hence, Patten (1989) states that small businesses see marketing as purelytactics and techniques to attract new businesses and to win new customersrather than adopting a strategic approach of classical marketing whichinvolves four elements of customer orientation, marketing strategy,marketing method and market intelligence. This can be easily identified inpractice where owner managers rather than identifying customer needs, tryto identify customers for their products on offer. Also easily ignore othernon-promotional aspects of marketing such as product development,distribution and identification of new market. Some small businesses aremerely dependent on hard earned word of mouth recommendations andtherefore do not feel need to do any marketing. However their marketingMSc. International Business Page 13
  • 23. indicate certain amount of strategic marketing awareness in areas such asMarket segmentation and targeting; Market research and monitoring andemphasizing on customer service and relationship building Stokes, D.(2000).3.3. Evolution in Small Business Marketing:During the life span of a business the experience and knowledge of ownermanager and needs of business reflect the evolution in marketing activities.The marketing activities evolve from non-strategic approach to strategicapproach which according to Carson (1985) is reflected in four stages ofevolution. Whereas, Simpson and his colleagues (2006) explain thisevolution with their two dimensional matrix model called Role andRelevance of Marketing Model. 3.3.1. Carson’s four stages of evolution: 1. Initial marketing activity: During the establishment of the small business the considerable amount of marketing activity based on the product, pricing and its delivery is conducted. 2. Reactive selling: Small businesses are opportunistic they react to increasing demand by customers rather than proactively using marketing for its products. 3. DIY Marketing approach: The owner managers develop a positive perception towards marketing as the business starts growing. Although their efforts result into disjoint and sporadic campaigns.MSc. International Business Page 14
  • 24. 4. Integrated, Proactive marketing: With further increase in business the owner managers of small businesses are forced to deviate to more strategic planning of marketing activities for which they appoint or consult specialist marketing management. Further Stokes, D. (2000) contradicts by stating that although owner managers in initial stage adopt non – strategic approach to effectively fit around their capabilities and the environment; if an owner manager possesses the marketing expertise, then strategic approach can be adopted at an early stage. 3.3.2. Role and Relevance of Marketing model: The role and relevance of marketing in SME model is a two-dimensional matrix model which helps to explain the marketing in the SME based on the internal organisation and external competitive factor of the small business. The model suggests three strategies (Strategy A, B & C) which small businesses can adopt for its journey from “Marketing independent” to “Marketing led”. Strategy A is a proactive strategy where “Marketing independent” business would strive to increase market share or greater market penetration or develop new product to complete its journey as “Marketing led” via “Marketing dominated”. Strategy B is a reactive strategy to become “Marketing led” via “Marketing week”. While strategy C is an incremental approach due to increased competition.MSc. International Business Page 15
  • 25. Fig 2: The role and relevance of marketing.Fig 3: The role and relevance of marketing with strategies.“Marketing independent” category can be defined as companies which cansurvive without marketing activity as they have stable market and lack ofenthusiasm towards marketing. On the other hand “Marketing led” categorycan be defined as business which is marketing oriented with a marketingMSc. International Business Page 16
  • 26. department, active business plan, marketing database and representativeat board level (Simpson, M. et al., 2006)Although the Role and Relevance of marketing model provides insight intothe behaviour of small businesses towards marketing it has certaindrawbacks criticised by authors such as Sekaran (20000), Oskoui-Jones,(2002), Brodie et al., (1997). The model was developed in a hypothetico-deductive way. The model ignored the effect of entrepreneurial behaviour ofowner/manager. The model relies on traditional and classical marketinginstead of modern.There are only six exploratory models available through the empiricalresearch available on the topic (Carson, 1990). These models areconsidered as descriptive as they have not been formally proven or tested.The initial marketing capability framework devised by Moller and Anttila,(1987) was the only similar model to role and relevance model as it focuseson internal and external field of marketing capabilities of the firm althoughthe final matrix is different in structure (Simpson, M. et al., 2006).MSc. International Business Page 17
  • 27. 4. Advertising and SmallBusinesses:Now that we have explored the empirical studies available on the widerrange i.e. marketing in small businesses, it is necessary to narrow ourexploration to advertising and finally to internet advertising practice insmall businesses.Small businesses primarily base their decision to advertise on factors suchas financial strength of the firm to afford different media vehicles and thedemand of the target market. Hence, due to the financial exigencies andthe need to produce results within a reasonable period of time, theappropriate use of media vehicles is of paramount importance for smallretail outlets (Vaccaro, J. & Kassaye, W., 1988). The empirical studies haveconfirmed that most small businesses choose media ranging from cheapHandbills, posters, brochures and Sign boards to little expensive Mediassuch as local radio, newspapers, magazines, direct mails and websites(Patten, D., 2002). Rest still believe in word of mouth recommendationsand free publicities e.g. an article by a food critic in a local newspaper is afree advertising for the restaurant.Some of the successful small businesses understand the critical importanceof ‘Positive word of mouth’, ‘Customer referrals’ and ‘Recommendations’from existing clients to attract new clients. Thus they significantly invest incommunicating on personal level with their existing clients. With respect toMSc. International Business Page 18
  • 28. any other form of media this process offers two advantages. Firstly, theunbiased recommendation from an un-incentivised third party is much morevalued than any form of marketing information. Secondly, the word ofmouth advertising is a free resource for the cash poor small businesses.Most of the small businesses choose to adopt advertising with a ‘me too’attitude to compete with their competitors. These small businessesadvertise without having decided the objective. Patten, D., (2002) in hiswork states that the effective advertising needs to have a clear idea of whatis intended to achieve. But the small business managers are so involvedwith their day to day responsibilities they underestimate the importance ofstrategic planning before advertising. Patten also suggests that every penneinvested in adverting will be worthy only if Advertising has an objective toachieve. A strategically planned advertising can achieve variety ofobjectives such as: 1. New product Launch, 2. Sales, 3. Change of premises, 4. Social responsibility advertisement, 5. Trade ads for wholesalers, 6. To promote websites.These and many other objectives can be achieved if advertisings arestrategically planned before investing in them.The choice of medium to advertise is the important principle in advertisingas it is essential to choose the medium which reaches as many targetaudience as possible. Although it sounds obvious many small businessesMSc. International Business Page 19
  • 29. forget to consider this fact while choosing the medium for advertising.Small businesses are cash poor they cannot afford to have choice ofmedium which large businesses have. Hence, first they have to discovertheir potential customers and later identify the medium which givesmaximum result at economic cost.There is a vast range of medium available for small businesses to choosefrom, to advertise their message:Traditional Mediums: 1. Local newspaper, 2. Magazines, 3. Local Radio, 4. Cinema, 5. Yellow pages, 6. Posters, Hoardings, Sign boards, 7. Handbills, brochures, Leaflets, 8. Direct mails, 9. Sponsorship, 10.Point-of-sales MaterialModern mediums: 1. Websites, 2. Promotional SMS, 3. Emailer’s, 4. Banner ads, 5. Pop-up’s, 6. Search engines, 7. Blogs, 8. Social networking sitesMSc. International Business Page 20
  • 30. 5. Internet advertising5.1. Definition:Vurro, M (2009) in his essay quotes Pleil and Zerfaβ, (2007:511) to defineinternet which is fundamental for online advertising. According to Pleil andZerfaβ, (2007:511) “internet is a virtual place, were people globally cometogether to interact and exchange information.” This statement along withthe fact that internet and technology associated with it is continuouslygrowing and developing implies that internet is a lucrative medium foradvertisers.In order to better understand Online advertising it is also necessary to knowtraditional “Advertising” which is underpinning to the core subject. Dibb etal. as stated by Janoschka, A. (2004) define advertising as formalcommunication between the organisation and its audience about theproduct, transferred through a mass medium such as T.V, radio,newspaper, etc.On the basis of above statements Internet advertising can be defined asfollows: According to Vurro, M (2009) “Internet medium (for advertising)provides a flow of information (to and fore between business and user)available to consumer on demand enabled through technological devices(Laptop, PC, Mobile, IPTV, etc) in an interactive and personalizedenvironment (personally targeted to user)”. Zeff, R and Aronson, B (1999pp11) puts forward their perspective in their book which defines onlineadvertising as medium which “enables consumers to interact withMSc. International Business Page 21
  • 31. advertising... gives advertisers the opportunity to precisely target anaudience, enabling them to deliver advertisements that are customized toeach user’s particular interest and tastes.” Evans, D (2008) points out theunique feature of online advertising of targeting specific individuals by useof internet based technologies and data collection mechanism.Thus, it can be narrowed down to a conclusive statement that internetadvertising is a formal interactive communication between organisation andan individual consumer about its product through internet as mass medium.There are deferent forms of Internet advertising available due to constantadvancements in technology. Such as E-mails, Banners, videos, searchengines, affiliated advertising, social network advertising, etc.5.2. Growth in Internet advertising:To be able to understand the importance of internet advertising it isnecessary to understand its current state in the market. The statistical factswill help to do so. Also these facts will play a part in explaining reason forits growth.Even as the industries across the globe have gone through the recession inthe last 2008 and 2009, online advertising has continued to see growth andalso forecasted to increase further till 2012. The Online adspend studypublished by Internet Advertising Bureau (IAB) supports the reportstatistics published by AA/WARC. It states that online advertisingexpenditure had increased from £3,349m in 2008 to £3,541m, in 2009(IAB, 2009).MSc. International Business Page 22
  • 32. Fig 4: UK Online AD spend. (Source: Paidcontent:UK, 2010)Studies show that online advertising expenditure has recorded growth year-on-year since 2001. It has reach £3.5 billion from £153 million in 2000, i.e.2200% increase in UK online advertising expenditure. This can be related tothe reformation of web 2.0 in 2004 which helped the industry to gainmomentum (Evans, D., 2008). The records show that in first half of 2009TV spending shrank by 16.1% to £1.639bn, while online spending grew4.6% to £1.752bn (BBC News, 2009). It also shows that the second half of2009 was better than first, when between July and December onlineadvertising spend registered increase by £25.6 million to £1.78 billion withmedium accounting for 23.5% of overall advertising expenditure leavingbehind the traditional forms such as Television, Radio and Print (Holton, K.,2009).Guy Phillipson, chief executive officer of the IAB, said: “In 2009 theadvertising industry was hit hard but Online has proved itself a winningmedium, capturing a greater share of marketing budgets.In the past year we’ve seen some real success stories as search passed theMSc. International Business Page 23
  • 33. £2 billion mark, and online video advertising experienced spectaculargrowth. And with sectors such as Retail and Consumer Goods increasingtheir spending on the internet we can look forward to a healthier 2010”(IAB, 2010).5.2.1. Advertising Formats:Fig 5: The Digital Media Mix: % Share of revenues generated by different Advertising formatsduring 2008 and 2009. (Source: IAB, 2008 & 2009)During 2009 paid search showed 9.5% like-for-like increase to reach £2.15billion which was 60.7% of all online advertising expenditure from 59.3% in2008. This correlates with the fact that 97% of Google’s 2009 revenue wasearned from advertising (Google 2009 annual report, 2009: 37). DisplayMSc. International Business Page 24
  • 34. saw 1% like for like decline between 2008 and 2009 which can besupported by the fact that revenue by Yahoo from display advertising on itsowned and operated sites faced a decline of 9% (Yahoo annual report 2009,2009: 34). Whereas classified ads saw a 2.3% like for like decline between2008 and 2009(IAB, 2009).5.3. Reasons for growth:First the continuously increasing popularity of internet among consumersand secondly the continuous development in technology increasing itspotential are the factors attracting the marketers to increase their online adspend.The key elements responsible for the popularity of internet are its featuressuch as availability of faster and cheaper internet; free contents andknowledge; free medium of entertainment and recession. The UK internetMarket review published by Keynote mentions TGI survey. It states that in2008, 98% internet users were using broadband which provide the speed ofdata transfer necessary to use advanced, interactive ‘Web 2.0’ applicationsat cheap rates. Internet makes news from all over the globe available forfree on websites like Google and yahoo, thus attracting large audiences andadvertising revenues (Berte, K. and De Bens, E., 2008). The UK economyis showing a small growth after six consecutive quarters of contraction. Therecession had lead UK into higher inflation, Unemployment and drop inhousehold disposable income. These factors lead consumers to spend moretime on internet, which is a free source of entertainment (Youtube, BBCiplayer, etc) and portal for cheap bargains for new and old product for e.g.MSc. International Business Page 25
  • 35. ebay. Recession also accelerated the migration of adspend from traditionalto online advertising (BBC News, 2009). Eva Berg-Winters ofPricewaterhouseCoopers said. "Hence the continuing shift from moretraditional forms of advertising to online, which promises return oninvestment and measurability in a period of instability" (Holton, E., 2009).The continuous development in technology is the other factor that attractsmarketers towards online medium. The development of web 2.0 has madeonline advertising more interactive giving the opportunity to marketers todirectly interact with individual users and develop a relationship. This helpsmarketers to directly provide personalized information to its target audience(Keynote, 2009).5.3.1. Key drivers of growth in ad spend:More people online – According to the study conducted by UK OnlineMeasurement Company (UKOM) and Nielsen, the UK’s active online userbase has registered an increase of 4.4 million that is total of 39.7 million incomparison to 35.5 million in February 2009 this helps to target moreaudience (IAB, 2009).Web 2.0 - Development of web 2.0 has made personalised advertisingpossible thus increasing the targeting efficiency of the advertising. Websitescan access browser history of the user learn the likes and dislikes of theuser enabling it to display specific advertise to specific audience only.Faster broadband drives video advertising – The advertiser havemanaged to encash the opportunity put forward by the increasing onlineMSc. International Business Page 26
  • 36. population; availability of broadband facility to more and more people (90%of UK online population) development of web 2.0 technology and increasedbroadband speed of over 2MB by providing increasingly dynamic video andrich media executions making advertisements interactive (Berte, K. and DeBens, E., 2008).Social media fever grips Britons – An average online user in UK spendsits 20% of online time socializing on Facebook. This social nature of the weboffers an opportunity for advertisers to directly target its relevant massaudience. The social networking sites such as Facebook and Myspace haverevitalized the online usage into a perfect environment for engaging ads.Advertising on such social networking sites is easy and also cheap incompared to the exposure it offers. The social networking sites also helpadvertisers to advertise more efficiently by providing reports on theiradvertising campaigns running on these social networking sites (Facebook,2011).Devices and connectivity - Development in technology has made possibleto connect every electronic device to internet contributing to increase ininternet population. Today not only mobiles and laptop can be connected tointernet but devices such as game consoles, digital readers, MP3 players etccan be connected to internet via 3G internet network allowing user fasterinternet experience wherever and whenever needed (IAB 2011).Thus these factors contribute towards growth of online advertising and shiftof advertising budget of Multinational companies from traditional medium toonline medium. Similarly due to the above factors some of the smallMSc. International Business Page 27
  • 37. businesses have shifted their marketing budget from traditional to onlineadvertising. For those small businesses, who are still into traditionaladvertising can also consider these key factors of growth and shift theiradvertising budget from traditional to online advertising and take advantageof the benefits on offer.5.4. Benefits of advertising online:The empirical studies have described number of benefits internetadvertising has to offer to small businesses although, only few of thebenefits are perceived to be important by small businesses. Benefits suchas, direct and indirect advertising, easy access to potential customers, lowcost communication and effectiveness in information gathering (Abell andLimm, 1996 and Walczuch, et. al., 2000). Wang and Daniel R. Fesenmaier(2006) recognized three broad categories of opportunities in Internetmarketing: 1. ‘Information delivery opportunity’ by the use of internet, marketer’s are able to deliver their product and service information to huge audience at low cost. Thus small businesses can target customers not just from their local area but across city, county and around the globe. For example a Restaurant will not be limited to its own local customers but can also attract international tourists through providing information on the internet. 2. ‘The relationship-building opportunity’ by using the interactive media marketers can learn about the users and customize contents targeting their desired audience. Web 2.0 enables the advertiser toMSc. International Business Page 28
  • 38. access customer’s browser history and target appropriate customer. The website can be used for 24/7 technical support by providing online, up-to-date and accurate technical product information; product trails and demonstrations and reduce sales lost by being available on demand (Corin, 1994). 3. ‘Disintermediation opportunity’ by using internet marketers can eliminate third party intermediates from their value chain. For example a manufacturer of a handcrafted item can sell directly to the customer throughout and across the country via Ebay, Amazon, etc. Yet the Small Businesses stay away from these opportunities put forward by online advertising.There are other benefits that internet advertising has for businesses suchas: 1. Information richness: Through online medium it is possible to advertise the product information without any constraints. Websites provides customer with substantial product information in content rich formats such as text, images and videos (Hoffman, Novak and chatterjee, 1995; Corin, 1994, Schlooser, A. E., and Kanfer, A., 1999). It also allows to link to different sites and multiple pages. Thus online medium is not just limited to short memorable message (Schumann, D., 1999 and Corin, 1994). 2. Ease of updating: Online advertising lacks the delays of other media and its maintenance can be cheaper than other media. Also online information is made user friendly thus can be easily updatedMSc. International Business Page 29
  • 39. without the expertise (Hoffman, Novak and chatterjee, 1995 and Sussman & Pollack, 1995). 3. Branding: Due to the space limitation of traditional media it cannot be used for advertising branding related information. Whereas online medium can be used for building a brand as website can contain detail company information, Portfolio, corporate responsibility information and other Public relations materials (Sadikin, 1995). 4. Data collection: Through Online medium businesses can easily and inexpensively collect market information required for decision making. Also information required for tracking the performance of the website such as which page on the site was visited; how many times it was visited; how long and how the user came to that page and from where was the user directed. The recent development of web 2.0 allows the businesses to access the user’s browser history to learn about the user’s preferences (Corin, 1994 and Berte, K. and De Bens, E., 2008). 5. Global exposure: World Wide Web allows the local business to go global. The business can respond to its global market simply by have web pages in different languages. The global exposure gives the competitive advantage to the business (Krugman, Reid, Dunn, & Barban, 1994). 6. E-commerce: The website can facilitate purchase decision by providing detailed product and dealer information. But at the same time allows customers to buy from their own homes promotingMSc. International Business Page 30
  • 40. impulse buying behaviour among the consumers (Hoffman, Novak and Chatterjee, 1995).Apart from these benefits there are benefits that impacts the othercomponents of the small businesses (see table 1). Components BenefitsNew Sales Channels On-line Sales and transactions Ability to reach out international market Increase in market share of product/servicesDirect Savings Savings in communication cost Savings in advertising cost Increase productivityCustomer satisfaction Greater customer satisfaction Better service and support to customersTable2: Benefits of Internet Medium for small businesses.(Source: Walczuch, et. al., 2000)5.5. Internet Advertising and Small Businesses:Small Businesses are perceived to be source of further growth andinnovation for the nation. Dyerson (2009) states that Small Businesses arecash poor and lack range of expertise. Small Businesses do not have to becash rich to invest in internet advertising on contrary internet medium isperceived to be cheap and also free through certain forms. Google Adwordsallows advertisers to have their website link on the search list but onlyMSc. International Business Page 31
  • 41. charges them per click or per impression depending on the option selectedby the advertisers (Google Adwords, 2011). Advertising through networkingsites such as Facebook, twitter and Youtube is free of charge. Google offersrange of services such as Google Adwords; Google analytics and GoogleWebsite optimiser to manage and run advertising campaigns on Googlewhich are user friendly and specifically made for layman (Google, 2011).Although Small Businesses have limited recourses in terms of time, moneyand expertise (Wymer and Regan, 2005) it is the motivated owner-managerwho drives the business and shapes the nature of investment decision(Dyerson, R. et. al., 2009). Pool et al. (2006) suggests that SmallBusinesses lag behind the large firms in adopting the internet medium foradvertising. The study conducted by Dyerson et al. (2009) shows that over34% of the respondents replied that cost is the primary barrier forinvestment while other 25% said uncertainty over benefits to the business(Return on Investment) is the barrier.MSc. International Business Page 32
  • 42. 6. Problems in InternetCommunication and theirsolutionsAbell and Limm, (1996) and Purao and Campbell, (1998:61) conducted astudy on the barriers to internet access for Small Businesses. Paurao andCampbell carried interviews with all small businesses some with onlinepresence and some were not. For those who didn’t have online presencePaurao and Campbell found that ‘start-up cost’, ‘unfamiliar with the web’and ‘lack of knowledge on how to start-up a business’ as main cause ofconcern. In contrary Hamill, Jim and Gregory, Karl (1997) found in theirresearch that cost and resource is not the major obstacle while lack ofknowledge is. The companies that are already online for them primaryconcern is security hazards (Purao and Campbell, 1998 pp.61). Here Abelland Limm‘s (1996) findings supports the Paurao and Campbell outcome ofconcern over security. Also according to Walczuch, R. et al. (2000) Attitudeis perceived to be another important factor behind non-adaption of theinternet among Small Businesses. Attitude here refers to owner-managersattitude towards online medium or personal belief about the medium.6.1. Five Problems of Internet Communications:Vescovi, T. (2000) in his research also puts forward five common problemsfaced by small businesses in introducing the internet communication. 1. Unclear communication strategy;MSc. International Business Page 33
  • 43. 2. New communication paradigms; 3. Non-integrated marketing communication; 4. company involvement in the internet challenge; 5. people for internet communication;6.1.1. Unclear communication strategyCompanies those have their website are often present online with “me too”attitude passively waiting for the customer to approach. The internet offersan interactive marketing opportunity (Hoffman and Novak, 1996b).Interaction is a two way communication hence only being passively presenton internet is not sufficient. The marketers have to shift their attitude fromactive customers-passive company to active customers-active company.Thus it is necessary to develop a clear communication strategy supportedby continuous and proactive activities (Bishop 1998). The company shouldinteract with its customers, create a buzz, regularly update the contentsand become an active company so that it can attract traffic to its website.6.1.2. New Communication Paradigms:There are two approaches to overcome this problem while freshlyintroducing internet communication into business. First consider internetsimilar to any other medium when it was first implemented into businessbecause rules of the game remains the same. Second is to understand andaccept the fact that internet communication is new concept for the business(Hoffman and Novak 1996b). According to Vescovi (2000) competenciesand attitude required to enter internet is lacked by the marketers butMSc. International Business Page 34
  • 44. Tapscott (1998) contradicts to Vescovi’s statement by suggesting that newgeneration is growing up in a digital age with more computer knowledge.Also technical aspect of the internet advertising can be outsourced such asdevelopment and maintenance of website and internet advertising material.The internet communication makes both one to many and one to onecommunication possible. This brings new rules of diffusion of messages.Thus it is necessary to develop new external and internal communicationstrategies.6.1.3. Non-Integrated marketing communication:Developing a website itself is not sufficient business has to developintegrated campaign targeted to customers making them aware of thewebsite (Walczuch, R. et al., 2000, Bayne, 1997; Zeff and Aronson, 1998).Different communication tools along with the internet are collected togetherunder in single format to coordinate with each other. Integration ofmarketing communication helps to improve the communicationperformance. Company should use traditional mediums (Television, Radio,outdoor (leaflets), newspaper and magazines); promotional campaignsalong with dealers and other online services to promote its internetadvertising and making users aware of it.6.1.4. Company involvement in the internet challenge:Introducing internet requires changing consolidating habits, learning newcompetencies, working with new perspective and increase in activeparticipation. The amount of commitment required can lead to quickMSc. International Business Page 35
  • 45. enthusiasm followed by fast disappointment which can ultimately lead tofatal errors, abandoning the site and giving up constant updating. Thebusiness and its personals should get involved in the development of itswebsite (Vescovi, 2000).Following three elements of the business involvement are necessary for theinternet communication to be successful: • The champion • The strong project leader • The rigorous planning and process(Source: Vescovi, 2000)In a small business the role of a champion should be played by the ownerhimself he is most influential person in the organisation. The manager canbe a project leader always available to support the champion and work onthe project with dedication (Vescovi, 2000). Finally, according to Bayne(1997) “Defining a specific plan, that includes clear goals, defined timing,resources and evaluation systems, must be a condition that cannot beignored, if the company wants to reach a sufficiently good quality of theWeb site”.6.1.5. People for Internet communicationDeveloping a website is no doubt a job of a web developer but the web siteis a representation of strong market relationship, consistent with marketstrategies for which a marketing manager is required. Internet meanscontinuous change and development along with it entire organisation isaffected (Vescovi, 2000).MSc. International Business Page 36
  • 46. 7. Measuring effectiveness ofInternet AdvertisingThere are various ways to reach to the customers through internet but it isnecessary to understand which way is effective and which isn’t. “It is allabout discovery; trial and error; and refinement. Be willing to try somethingand change it if it doesn’t work (Kooser, A. C., 2007).” There are differentmeasures used to gauge the effectiveness of internet advertising (Selnes,1992). On the other hand “Reach” and “Frequency” are used to determinepopularity of the advertising campaign.7.1. Financial Measures:Return on marketing or Return on Investment is a financial measure it isdefined as follows “the revenue or margin generated by a marketingprogram divided by the cost of that program at a given risk level (Powell,2002, p. 6).” There are various surveys conducted on marketingaccountability and measures. Such as, the survey conducted by theAmerican Productivity and Quality Centre (APQC) with Advertising ResearchFoundation (ARF) in 2001 and 2003; a survey carried out by the ChiefMarketing Officer (CMO) Council in 2004 (Stewart, D., 2009).The APQC/ARF (2001) survey states that there is a need for an econometricmarketing mix model to achieve competitive advantage and increaseprofitability because of continues increasing competition in the market. Themarketing activates should be gauged in terms of financial performance.The result of this model depends on the quality of the data that forms itsMSc. International Business Page 37
  • 47. base. The participants of the survey confront that ROI based performancetracking gives positive outcomes. The participants also suggest that ROIbased performance tracking of the marketing activities develop knowledgeand enhances teamwork. On the contrary, the survey found generaldissatisfaction among participants for calculating return on marketingactivities in financial terms. The CMOs survey showed some most importantmetrics such as (1) ‘revenue’, (2) ‘qualified sales lead generation’, (3) ‘salesand channel feedback’, (4) ‘return on investment for marketing programs’,and (5) ‘customer retention’, ‘loyalty’, and ‘satisfaction’. Measures used togauge marketing outcomes in economic terms or the way in which it ismore convenient to relate (Stewart, D., 2009:637).7.1.1. Importance of financial measure:Powell proposed that effectiveness of internet advertising should be gaugedin terms of economic or financial measure because:(1) finance is the best evaluating measure for a business, (2) companiesare evaluated by the financial figure published in the financial statements ofannual reports of the business, (3) financial metrics acts as a standardmetric to compare alternative and otherwise non comparable actions acrossmarkets, products, and customers, (4) financial metrics provideaccountability, (5) financial metrics promote organizational learning andcross functional team work because they provide a common language, and(6) Financial metrics serve the purpose of a standard for dealing withdifferent marketing activities and intermediate marketing results (Stewart,D., 2009).MSc. International Business Page 38
  • 48. 7.2. Standardised Measures:Apart from measuring the effectiveness of the marketing in financial termsthere are other metrics available. There are various ways to evaluate theeffectiveness of online advertising at least one measurement tool for oneadvertising channels. Such as, click through rate (banner ads); sentimentanalysis (social networks); traffic monitoring and impression (Websites);etc. These measures are developed from web log file records to access theeffectiveness of the advertising within the web based multimediaenvironment (Drèze, X., and Zufryden, F., 1998). The traditional memorybased measurement tools such as recall, reorganization and awareness arealso applied on online advertising (Dreze, X. and Hussherr, F. X., 1999internet advertising is anybody watching).7.3. Measurement Problem:1. Identification of unique visitor:Traditionally to measure the effective reach of an advertisement a survey isconducted where each participant is uniquely identified by its telephonenumber or address. In case of internet advertising to measure theeffectiveness of advertising whether it is display, paid search or website aweb log of the user and its activity is maintained. The individual user isidentified by its IP (Internet protocol) address which helps to measure thevisitor traffic, flow patterns to, from and within the website. Unfortunatelythis IP assigned by the internet service provider (ISP) is not unique. Forexample in multi-user system a same IP is provided to different users. If aMSc. International Business Page 39
  • 49. ISP provided dynamic IP allocation than for every new session a new IPaddress is assigned. Also if an ISP uses proxy server a user can be assigneddifferent IP addresses in a single session (Drèze, X., and Zufryden, F.,1998).2. Problem of caching:In case of measuring the frequency of an internet advertising the number ofexposures is logged on the server. So when a user first sees theadvertisement one impression for that user is logged on the server. But ifthat same user after browsing for a while comes back to the advertisementby clicking the back button of the browser, to speed up the process browserdisplays the stored version of the web page. Hence this time even if theadvertisement is exposed second time server is unable to log it (Drèze, X.,and Zufryden, F., 1998).3. Reliability of reported measures:There is a difference in requesting a page and actually reading it orreceiving it. A user may request a page and change his mind and close thebrowser without actually viewing the advertisement. This type of problem iscommon in any medium. For example a television viewer can be distractedand miss the commercial. This problem tends to falsely increases themeasure (Drèze, X., and Zufryden, F., 1998).MSc. International Business Page 40
  • 50. 4. Measurement tools:The Google analytics, Google Adwords, Optaumum, AlTerianS2 andBrandwatch are some of the effectiveness measurement applications thatare used to evaluate the effectiveness in terms of brand awareness createdwhereas the other studies evaluate effectiveness in terms of sales (Nail, J.,2005, Craver, Marc, 2007 and Thomas, J. W., 2006).There exists at least one measurement tool for every advertising format orchannel. The effectiveness of paid search can be gauged by click throughrate or impressions made. The search providers such as Google, Yahoo,MSN, Ask etc. provides there advertisers with performance trackingapplications which gives results in form of reports and statistics (GoogleAdword, 2010; Yahoo Advertising, 2010 and Microsoft advertising adCenter,2010). These reports can be used to understand how many people visitedthere website through the search, which key word if more effective andwhich isn’t. These providers charge on the basis of cost per click, cost perimpression or cost per action so advertiser only pays when advertisement isactually displayed or a business is gained from the provider. Thus smallbusinesses can afford to advertise through search engines without having tospend huge amount on printing the advertising materials and employingsomeone to distribute them.Email advertising uses the open rate and click through rate as the measuresto gauge the effectiveness of advertising campaign. Open rate is a record ofnumber of emails opened out of the number of emails send. Whenever auser opens an email on its email reader application a hidden code triggers aMSc. International Business Page 41
  • 51. unique tracking image back to the advertising service provider’s serverwhich is then recorder and presented in form of metric report. Since aunique tracking image is recorded for every user it eliminates the uniqueidentity problem. But it has its own limitations such as some email readingapplications has a preview option which on selecting an email previews itand at the same time triggers the tracking image without actually seeingthe email. While some email reading applications do not displays HTML andfor the code to be triggered HTML has to be displayed. Hence even whenuser reads the email it is not registered on the server (Mark Brownlow,2006).Social media advertising are gauged by sentiment analysis along with clickthrough rate and impressions made. Facebook has partnered withmeasurement company Nielsen to provide its advertisers with targeted adsby using the user profile information which provides the requireddemographic information (Helen Coster, 2009).Website advertising can be gauged by measures such as number of visits,number of users registered and number of orders received or sale made.There are various intermediaries which provide the service of analysing thewebsite traffic and the business done by it and present the results in formof metric reports. These reports can help advertisers to understand theshortcomings and make required changes. Google analytics is one of theseintermediaries which not only gives detailed reports on visitors but alsoallows integrating the Google Adword and Ad sense (Google Analytics,2011).MSc. International Business Page 42
  • 52. Section 3: MethodologyMSc. International Business Page 43
  • 53. 1. IntroductionThe aim of this chapter is to describe and summarize the researchmethodology used in this study. The chapter begins with explainingresearch philosophy followed by research approach, strategy of inquiry,time horizon, the research process and data collection. The final sectionconsists of Validating, Reliability, Generalisation, Ethical consideration andlimitation. Data collection section explains the process of primary andsecondary data collection method used by the researcher to achieve aimand objective of the research.The research onion typology stated by Saunders, et al. (2003) is used as aguide to choose the data collection methods. Saunders and his colleaguesbelieve that the approach to the research can be related to “onion”. Thecentre of the research can be related to the centre of the onion whiledifferent stages in the research process can be related to different layers ofonion. The research process “onion” stated by Saunders, et al. (2003)includes following layers: 1. Research Philosophy: Constructivism 2. Research approach: Qualitative and Inductive 3. Research strategy: Case study 4. Time Horizon: Cross-sectional 5. Data collection method: Observation and InterviewMSc. International Business Page 44
  • 54. 2. Methodology2.1. Research Philosophy:The research philosophy depends on the way that we think about thedevelopment of knowledge. The way we think about the development ofknowledge affects the way we do the research (Saunders, M., Lewis, P.,and Thronhill, A., 2000). Any given research starts with a knowledge claimwhere a researcher makes an assumption about what will be learnedthrough his project (ontology), how will it be learned (epistemology), andwhat is the importance of this project (axiology) (Creswell, 1994). The fourtypes of knowledge claims are: post-positivism, constructivism,advocacy/participatory and pragmatism (Creswell, 2003).The research philosophy of the current study is constructivist oftenassociated with interpretivism (Saunders, M. et al. 2000 and Creswell,2003). A constructivist study makes an assumption that individualsinterpret the meaning in the world they live and work. They developsubjective meanings from their experience. The study claims that it isimportant to understand the situation in detail in order to understand themotivating factor behind that situation (Saunders, M. et al., 2000).The researcher begins with the curiosity to comprehend the reason for thelack of interest and involvement in internet as medium for advertising,shown by the small businesses while the medium is booming with year overyear increasing ad-spends by large businesses. Thus the study relies asmuch as possible on the observation and investigation of the generalpractice implemented by participants for the use of internet as advertisingmedium. This helps to build some experience which later helps the study toconstruct its primary research question i.e. to determine the factorsresponsible for effectiveness of internet advertising undertaken byoutperforming small businesses. Hence the constructivist philosophy provesitself necessary for the research.MSc. International Business Page 45
  • 55. Unlike Constructivism, post-positivism inquiries verifies theories and do notgenerate new ones. It is deterministic, assesses and experiments on thecause to determine the results (Phillips and Burbules, 2000) where as ourresearch needs to comprehend and evaluate the result to understand thecause behind it. The Advocacy/participatory philosophy focus on bringingchange in practice with collaborated efforts from participants. It takessupport of political debates and discussion for change to occur (Kemmis andWilkinson, 1998). But in case of the inquiry undertaken by the researcherwhere researcher is in a search of best practice among the participants theadvocacy/participatory philosophy can lead to biased inputs from theparticipants as they are competitors of each other and would want to provetheir dominance over other. Another philosophy named Pragmaticworldview arises out of action, situation and consequences rather thenantecedent conditions. This is similar to the approach required for theresearch perhaps pragmatic philosophy does not focuses on any onemethod of inquiry rather believes in adopting the best method that meetsthe need and purpose at that time (Morgan, 2007). This according toresearcher does not satisfy the purpose of the study since there is not muchliterature available to help researcher to deduce the intended model ofefficiency. Hence it is inevitable to undertake constructivist philosophyinstead of any other philosophy since researcher has no other option thanobservation to interpret, evaluate and formulate a new model of efficiency.2.2. Research Approach:The research approach is based on knowledge claim, strategy and researchmethod. The research approach is basically of three types Qualitative,Quantitative and Mixed (Creswell, 2003). While according to Saunders et al.(2003) the research approach can be differentiated into two types such asdeductive approach and inductive approach. The deductive approachmeans, where a researcher develops a theory and hypothesis and designs aresearch strategy to test the hypothesis. Whereas inductive approachmeans, where a researcher will collect data and then develop theory as aMSc. International Business Page 46
  • 56. result of data analysis. These different terminologies by different authorsshow that there exist discrepancies in the literature. Hence, the confusioncaused by these discrepancies is avoided by explaining approaches laid byboth the authors, which are relevant to the current research study.2.2.1. Qualitative:The present study adopts a qualitative approach as its researchmethodology. The qualitative approach is adopted with constructivistresearch philosophy. The purpose of the qualitative approach is interpretingthe situation with focus to sought complete and holistic understanding thesituation. The qualitative approach uses strategies of inquiry such asnarratives, phenomenology’s, ethnographies, grounded theory studies orcase studies (Creswell, 2003 and Grady, M., 1998).The quantitative strategy involves true experiments, quasi – experimentsand correlational studies where a subject is tested against differentvariables and treatment (Neuman & McCormick, 1995). But the studyintends to identify the best practice among the participants via observationrather than experimenting and inventing a new one. The researcher alsobelieves that the participants would have to invest significant amount oftime and effort and also bare the risk of failure by learning new modelwhereas they can easily adopt the best practice from the experience of theircompetitor. The Mix method strategy is a concept of mixing differentmethods as it is believed to neutralize and cancel the biases in any singlemethod (Creswell, 2009). The Mix method strategy includes multiplemethods and is time consuming. The study merely depends on observationof facts and evidently visible practice of internet utilization for advertisingwithout involving participants in the research thus it minimizes the treat ofbiases. Hence it seems unnecessary to adopt Mix method strategy when asingle method strategy saves time and gives desired outcome.MSc. International Business Page 47
  • 57. 2.2.2. Inductive: The paper adopts inductive approach to understand why some thingis happening rather than being able to understand what is happening. Theinductive approach is primarily concern about context in which the eventtakes place. The inductive approach to research emphasises on collection ofqualitative data; the researcher’s participation in the research to gaininsight of the situation through observation; maintaining a flexible structureto incorporate changes as the research progress (Saunders, et al., 2000).According to the practical criteria’s suggested by Creswell (1994) the natureof the research topic is most important. A topic on which there exists verylittle literature it is appropriate to use inductive approach where data iscollected and analysed and a theory is generated through the theoreticalthemes that data suggest (Saunders, et al., 2000).However there are some drawbacks of inductive approach. The result isgenerated gradually as data is collected on much longer period. Their alsoexist a high risk that no useful data patterns or theory will emerge(Saunders, et al. 2000).2.3. Research Strategy:Strategy of inquiry or research strategy provides specific direction forprocedures in research design. Like knowledge claims over the year’sstrategies have multiplied due to advancements in computer technologyenabling complex data analysing and individuals have articulated newprocedures for conducting research. These strategies of inquiry form a partof the research approach. The different strategies of inquiry are as followsPhenomenology; grounded theory; ethnography; case study; narrative;experiment; survey; sequential; concurrent; transformative; exploratory,descriptive and explanatory studies (Creswell, 2003).MSc. International Business Page 48
  • 58. 2.3.1. Case study:The current study adopts case study as its strategy of inquiry. According tostake (1995) a researcher explores in depth a program, an event, anactivity, a process or one or more individuals. The cases are bounded bytime and activity, and researchers collect detailed information using avariety of data collection procedures over a sustained period of time.Robson (2002, pg 178) defines case study as “a strategy for doing researchwhich involves an empirical investigation of particular contemporaryphenomenon within its real life context using multiple source of evidence.”This strategy is used because it gives rich understanding of the context ofthe research and the process being enacted (Morris and Wood, 1991). Thedata collection method employed can be various which includequestionnaire, interview, documentary analysis and observation. Althoughcase study research is criticized by some researchers as an unscientificmethod of conducting a research some consider case study as an importantstrategy to explore existing theory and challenge them to provide new one(Saunders, et al. 2000).2.4. Time Horizon (Cross-sectional):Sunders et al. (2003) defines Cross-sectional study as “the study of aparticular phenomenon at a particular time.” The study has a limited timeconstraint thus cross-sectional time horizon become convenient for thepresent study. The cross-sectional study is also termed as “Snapshot”study.The study emphasises on the marketing strategy implemented in year 2009by the participants thus snapshot or cross-sectional time horizon for thestudy facilitates the purpose.MSc. International Business Page 49
  • 59. 2.5. Data collection method:2.5.1. Secondary method:Ghauri and Gronhaug (2002) state that, the researcher should first look forsecondary data relevant to research problem before going out to collectprimary data. Sunders et al. (2007) states that secondary data is basicallyraw and published literature which can be further divided in three partsmultiple sourced secondary data, survey-based and documentary. Furtherthese sub groups are divided as the multiple-source secondary data isbased on either the survey-based or documentary secondary data or acombination of the two. The survey-based secondary data is a data collationusing a survey strategy which includes questionnaires that are analysed foran original purpose. The data can be composed from three major strategieswhich comprises a census, continuous and regular surveys and lastlythrough ad hoc surveys. This can also apply to the research study of aspecific organisation research that utilizes primary data collectiontechniques and can be used by itself or in combination with formersecondary data (Saunders et al. 2003). The documentary secondary dataincludes written data from organisations databases, communication such asletters, books, journals, e-mail, databases and unwritten materials such asvoice recordings, CD-ROMs and DVD-ROMs.Bryman (2008) identifies and states the importance of secondary data thatthey are reliable and adequate because they act as documented evidencefrom academic and professionals which helps to support the arguments.This proves the creditability as the findings; results and recommendationsare supported by the previously conducted empirical studies. This also helpsaudience to clearly understand the subject put forward by the researchconductor.The present study for secondary data source uses statistical data availablein form of Fact sheets, white papers, agenda papers, Press release andonline articles, available from government bodies (office of nationalstatistics and HM revenue & customs), institutions working in that fieldMSc. International Business Page 50
  • 60. (Internet Advertising Bureau, UK online measurement, Department forBusiness, Enterprise and Regulatory Reform, Advertising Association, Worldadvertising research centre), and reliable news websites. The research alsosources some theories and definition from texts and journals available onthe subject. The main source of this information is the database madeavailable by the Robert Gordon University. The databases like such asEmerald, Business Source Premier, Mintel reports, Key note reports andScience direct both online and offline.The secondary data helps to strength the underpinning knowledge on thetopic. It also helps to determine the research approach and strategy ofinquiry. Since there was not much literature available on adoption ofinternet for advertising purpose by small businesses case study was used asresearch strategy. It also facilitate the selection of observation and face toface interview due to lack of available literature.2.5.2. Primary method:Clough and Nut-brown (2003) sates primary research as an investigationtool useful to answer the research questions. The researchers suggest thatprimary research compromises of qualitative, quantitative or both andeither can be used depending on the nature of the research beingconducted (Clough and Nutbrown 2003; Saunders et al. 2003; Saunders etal. 2007; Bryman 2008).A Small business suitable to the criteria previously mentioned and willing tocontribute to the research is used for the research purpose. The study usesobservation and interview as its research instrument to collect primarydata. I) Observation:According to Creswell (2003) the researcher takes field notes on thebehaviour and activities of the individuals at the research site. In these fieldnotes the researcher records, in an unstructured or structured way,MSc. International Business Page 51
  • 61. activities at the research site. The qualitative observer may also engage inroles varying from a non-participant to a complete participant.According to Saunders, et al. (2003) there exist two type of observation.Participant observation has its roots in social anthropology since twentiethcentury. It emphasises on understanding the meaning that humans attachto their actions. In contrast structured observation is concerned withfrequency of those actions. In participant observation the researcherparticipates completely in the life of the subject and become the member ofthe organisation, business or community. The most popular example ofparticipant observation is that of Whyte (1955), he lived among poorAustralian–Italian community in order to understand “the street cornercommunity.”The study adopts the non-participating structured observation method toidentify and record the activities happening internal and external to theselected 10 Indian restaurants which have direct or indirect effect onenhancing the efficiency of its internet advertising. The author spends twohours to record the activities in the internal environment at each restaurantand uses internet research to record their external activities. II)Interview:The interview helps to gather reliable data relevant to research questionand objective (Saunders, et al., 2003). The researcher may conduct a faceto face interview with participant, interviews participant by telephone, orone-to-many participant interview. This interview may involve structured orunstructured open or close ended questions that intend to elicit views andopinions from participant (Creswell, 2003).One typology that is commonly used is the level of formality and structure,where by interview may be categorised as: structured, un-structured orsemi structured interview. Whereas another typology of Healey andRawlinson (1994) as stated by Saunders, et al. (2003) categorises asstandardised and non-standardised.MSc. International Business Page 52
  • 62. Structured interview use questionnaire based on predetermined set ofquestion. Questions are read out and answers are recorded on standardisedschedule with pre-coded answers. A structures interview with the owner ofthe participant restaurants is conducted which gives an overview of thecompany, its business functioning, marketing activities and financial status.The interview conducted using pre set series of structured open and closedended question. The response from the interviewee is digitally recorded forfuture reference. An access to the company’s financial data is negotiatedduring the interview.The interviews were used to gain greater practical insights into marketingwithin the small businesses being studied. The interview gave insights intothe way marketing activities had changed and evolved (Brooksbank et al.,1999) within these companies over time.2.6. Narrative Structure of the study:The framework designed by Aaker (2001:71) and his collaborators is usedin modified form to systematically address the research problem. Theoverall research process goes through four stages form drafting a proposal;formulating a research design; conducting research and Data Analysis.2.6.1. Drafting a proposal:This stage begins with selecting a research area followed by literaturesearch to formulate the research topic. Marketing was chosen as a researcharea based on personal interest and professional development. Thepreliminary literature search helped to formulate the topic for the study. Aproposal was drafted which covered key issues such as Rationale, Researchapproach, Data collection techniques, Ethical issues, Participant andResearch site. Along with these key issues clearly drafted aim and objectiveof the research was also provided.MSc. International Business Page 53
  • 63. 2.6.2. Formulating research design:Authors such as Creswell (2003), Saunders, et al., (2000), Frey, J. & Oishi,S., (1995), Yin (2003) along with few other were referred to develop anappropriate research design. The research onion typology stated bySaunders, et al. (2003) was used as a guide.Fig: 6: Research designThis flow chart explains the flow of research conducted. Research beganwith a literature review which helped to gain the understanding of thesubject and develop underpinning on the topic. After which 30 Indianrestaurants were identified in Aberdeen city. They were approached throughemail inviting them to take part in the research. The 25 restaurants thosereplied were interviewed over the telephone to create a appropriate sampleof 10 restaurants for the study. These 10 restaurants were subjected to aface to face interview to gain primary data. This data was then tabulatedusing SPSS. The SPSS was also used for formulating different charts andtables required for preliminary finding and final recommendation. Based onMSc. International Business Page 54
  • 64. these findings, analysis and conclusions a final draft was composed to besubmitted on the final day.2.6.3. Conducting research:Rationale for selecting the topic provided with the proposal was used as abase for further extensive literature search. Literature search coveredvariety of material such as journals, books, press release, reports, whitepapers, government websites, institutional websites, news articles, etc. Thisextensive literature search helped to develop underpinning on the topic;decide data collection techniques; sampling and selecting participants.Based on the advantages on offer and suitability to the study observationand face to face interview were used as primary data collection instrument.A structured questionnaire was formulated using mix of close ended andopen ended question. The questionnaire helped to gain insight of thesituation under study. I) Sampling (Preliminary Interview): The preliminary interviews along with the outcomes from the observational study helped to sample the participants for the research. Out of those 30 approached restaurants only 25 replied back which were then approached for preliminary interview. The preliminary interview helped to establish if the restaurants can be used in the research or not i.e. do they satisfy the criteria required. After the preliminary interview 10 restaurants were successfully identified as eligible participants for the research. These final 10 restaurants were approach for a second staged interview which was a 20- 30 minute long face to face interview unlike the preliminary which was telephone based.MSc. International Business Page 55
  • 65. II) Primary Data collection (Interview): The interview was assisted by pre structured questionnaire with a mix of open and closed question in it. The closed questions helped to gains basic knowledge where as open questions gave details required for the research. Part 1 had opened questions perhaps only with short answers to gather basic background information about the company. Part 2-4 included closed ended questions; part 2 contained questions used to know the role of marketing in the organization. Part 3 had questions used to determine the relevance of marketing for the organization and Part 4 sought answers to the owner manager’s attitude towards marketing. The questioner used Six-point and five-point likert scale for closed ended questions. Part 5 had open ended questions these helped the participants to open up and helped researcher to gather as much information as possible through the narrative explanations received. Although these narrative explanations sometimes lacked flow of thought and had random explanation hence researcher has to be extra careful in appropriately picking up necessary points only. The part 5 had 2 main questions and 14 sub questions. Part 5 included questions to identify the online strategy in practice and the views of the owner manager’s.2.7. Validating, Reliability and Generalisation:The current study uses triangulation strategy (Creswell, 2003) which relates“different data sources of information by examining evidence from thesources and using it to build a coherent justification for themes.”The study triangulates findings form observation, interview and literaturewhich reduces errors ultimately increasing the validity and reliability of thedata. Since the study being of Qualitative in nature it probably cannot begeneralised (Saunders, et al., 2003).MSc. International Business Page 56
  • 66. 2.8. Ethical consideration:The only ethical consideration in this research is the proper handling offinancial and other crucial information reviled during the course of research.Maintaining anonymity requested by the participants. Maintainingconfidentiality of the financial information provided by the participant. Andtake care that the data is strictly used for the research and educationalpurpose only.2.9. Limitation of the study:The major limitation of this study is sample selected. The research was ableto invite 10 Indian restaurants from Aberdeen city only which I believe isinsufficient to represent the Indian restaurant industry in whole Scotland.However study has been able to develop a model as it had intended.Perhaps further work is needed with large sample. The questions used inthe questionnaire could have not been able to capture wide range of data.The interviews were conducted during the busy working hours with timerestrictions of twenty - thirty minutes this could have lead to bias answers.Some of the interviews were not been digitally recorded so the open endedsection had to be manually written down while interviewee was answering.This could have lead to different interpretation.MSc. International Business Page 57
  • 67. Section 4: Findings, Analysis and DiscussionMSc. International Business Page 58
  • 68. 1. IntroductionThe data was collected from the respondents by means of face to faceinterview. The questionnaire was used to assist the interview and gather asmuch information as possible. Both close ended and open ended questionswere included in questionnaire. To better understand the collected data itwas transformed into charts and tables, findings were interpreted, analysedand discussed. These findings and its analysis and discussion are presentedin this section.The section is divided in two chapters Findings & Analysis and Discussion.The findings & Analysis chapter represents the collected data in much easyto understand format by using Figures. These Figures are interpreted andexplained to develop the understanding of the reader. Following chapter is adiscussion of the findings generated which leads to final section of the studyConclusion and Recommendation.MSc. International Business Page 59
  • 69. 2. Findings and Analysis2.1. Demographics: No of employee Est. Year Year began Online Online Experience AdvertisingR1 26 1975 1999 11R2 20 1984 1998 12R3 15 1994 1999 11R4 15 1996 1996 14R5 18 2002 2003 7R6 16 1999 2000 10R7 8 2005 2009 1R8 12 2007 2007 3R9 10 2004 2008 2R10 10 2002 2006 4Table 3: Company details (Source: Primary data).The demographic information helps to understand the size, composition anddistribution of the participants (Lazer, 1994). The varied difference indemographics of the respondent can be noted by looking at the abovetable. The table displays the information of the 10 participating restaurantsnamed as R1, R2, R3,.....Rn (where n=10) for the purpose of analysis andto maintain the secrecy agreed with the restaurant’s as terms of theirparticipation.MSc. International Business Page 60
  • 70. The basic criteria for selecting a respondent was a small business with notmore than 30 employees and balance sheet turnover not more than £2.8million with minimum one year experience in internet advertising. It can beseen that the participants very well satisfy this criteria. Further it can beseen that study has a diverse sample of participants with online experiencefrom minimum for 1 year to 14 years.2.2. Classification:The participants are categorized in 3 segments each based on differentcriteria. First segmentation is based on annual sale turnover of therestaurants. Second is based on the online experience and third is based onthe age of the restaurants. These segmentations will assist the research inanalysing the findings deducted from the interviews.2.2.1. Based on Annual sale turnover:Table 4 below gives an idea of the sales turnover of the restaurants withthe deference in sales figure of previous two years. This data was collectedthrough preliminary interview stage after the agreement of participationreceived from these restaurants out of those approached. Based on thepercentage of increase in sale these restaurants can be classified in to fourcategories namely, Outperformers, Mediocre, Low performers andNonperformers (Table 5).MSc. International Business Page 61
  • 71. Annual sales Annual Sales Increase in Percentage turnover 2008 (£) turnover 2009 (£) Sales increase turnover(£)R1 530000 720000 190000 36%R2 465000 650000 185000 40%R3 430000 560000 130000 30%R4 500000 600000 100000 20%R5 480000 600000 120000 25%R6 565000 680000 115000 20%R7 520000 580000 60000 10%R8 305000 350000 45000 15%R9 320000 320000 0 0%R10 400000 400000 0 0%Table 4: Comparison of annual sales turnover between 2008 and 2009.Outperformers Mediocre Low Performer Non PerformerMore than 30% 20 - 30% 10 - 20% Less than 10%Table 5: Categorisation of participants based on performance in marketThis categorisation is purely based on the increase in annual sales turnovervalues between 2008 and 2009. Those performing above 30% are namedOutperformers; those performing above 20% are named as Mediocre; thoseperforming above 10% are named Low performers and those below 10%are named as nonperformers.MSc. International Business Page 62
  • 72. The incremental sale represents intermediate marketing measure which canbe linked back to the economic performance (Stewart, D. W., 2009). Thus itcan be assumed that the outperformers were successful in implementingthe efficient internet advertising strategy which led them to increase theirprofit. Hence, the classification will help further to identify the do’s anddon’ts of internet advertising by focusing on the activities undertaken byoutperformers and avoiding the mistakes done by low performers and nonperformers.2.2.2. Based on online experience: Early Intermediates Experienced No of 4 2 4 participants Percentage 40% 20% 40%Table 6: classification of participants based on online experience.The participants can also be classified based on their years of onlineexperience. They are classified in three stages early stage, intermediatestage and experienced stage. Those with less than five years of experienceare assumed to be in their early stage. Those with five and less than tenyears of experience are said to be in their intermediate stage. Finallycategory of experienced stage includes those with more than ten yearsexperienced.MSc. International Business Page 63
  • 73. Fig 7: Relation between years of online experience and percentage increase in sale for 2009.Although from the above figure it can be said that the years of onlineadvertising experience can have a significant influence on the increase insales of these restaurants. The 30% participants out of those 40% whichfall under experienced category also fall under Outperformers categorywhere as the remaining 10% which could not perform falls under mediocrecategory. The reason behind underperformance of these 10% participantsdespite being in their experience stage will be discussed further in thestudy.MSc. International Business Page 64
  • 74. 2.2.3. Based on Age: Early stage Intermediates (6- Experienced (0-5) 10) (11-15)Adopts principles and practices 25 100 75of marketingMarketing is an unnecessary 25 0 0burden (% agree)Yet to reap the benefits of 25 0 0marketing (% agree)Unaware of the benefits of 75 0 0marketing (% agree)Marketing efforts have been 50 0 0abandoned (% agree)Presence of a marketing 0 100 25department (%)Designated marketing personal 0 100 100(%)Database used (%) 25 50 100Active business plan (%) 25 100 100Presence of a marketing budget 50 100 100(%)Table 7: Analysis by age.MSc. International Business Page 65
  • 75. From the above table we can see that restaurants in their early stage areless likely to have a database, business plan or a marketing budget. Theybelieve that marketing is a burden, not aware of benefits it has to offer andhave abandoned the marketing. This kind of attitude more likely falls under“Marketing Independent” or “Marketing week” category as it shows thatthey are not at all market oriented. This result supports the stage/growthapproach that small businesses are confident about marketing only afterreaching certain size or level of turnover (Siu and Kirby, 1998). Also someparticipants from early stage have active business plan and marketingbudget and adhere to marketing principles which supports Padmore and hiscolleagues (2006) who suggests that businesses from early stage have apositive attitude towards marketing.Our data correlates with that of Padmore and his colleague’s (2006)research which shows small businesses gradually change their attitudetowards marketing over time. In early stage they are more “marketingweek” reluctant from marketing; in intermediate stage they are “marketingdominated” their marketing activities reach at its plateau and as they growwith their experience they are “Marketing led” organisation were theremarketing activities might start to slowly regress (Simpson and Taylor,2002).MSc. International Business Page 66
  • 76. 2.3. Planning:Fig 8: Planning: Time and efforts spend on Business planning and developing marketingstrategies.The above figure helps to correlate the time and effort spend on businessplanning and developing marketing strategies and plans. It can be clearlyseen that only a total of 30% are spending pretty much or great deal oftime and effort on formulating business plan, developing marketing strategyand plan. This shows that formulating business plan and marketing strategyis not of much significance for small businesses. Thus contradicts thefindings of those empirical researches trying to prove that planning leads toprofitability and assists in survival (Boyd, 1991; Robinson & Pearce, 1983).Whereas, organisations write business plans only due to coercive andmimetic institutional pressure (Honig, B. & Karlsson, T., 2002). According toparticipants 40% spend little time on business planning and 30% spend justenough time on developing marketing plans. Which suggests that theirexists some amount of mimetic institutional pressure among theparticipants industrial field with regards to writing a formal business andMSc. International Business Page 67
  • 77. marketing plan. Figure also shows that 80% participants are more or less involved in business planning and developing marketing strategies and plans thus at this point these 80% seem to fall under “Marketing led” category although after further data analysis some of them might fall out of the category (Simpson, M. et al., 2006). 2.4. Preparedness:Fig 9: Preparedness: The chart explains three elements representing the preparedness of theparticipants against external forces. Data warehousing is a collection of tasks involving customer and market information. It involves collection of information; storing and integrating information inside the database and applications for retrieving and presenting the data when required. It improves decision making and organisational performance (Watson, H. J., Goodhue, D. L. & Wixom, B. H., 2001). Data warehousing in its actual sense is a costly activity the data warehousing term used in this research refers to customer and market MSc. International Business Page 68
  • 78. database at smaller scale. Analysing the competitors offering meansconstant surveillance of rival firms activities this helps to relate theorganisation with the industry in which it competes and stay alert (Porter,M. E. 1998 and M. Peyrot et al., 2002). Market research generatesinformation which aids in building the Customer and market database;exploring new opportunities, segmentation and product; deciding effectivemarketing mix and improves understanding of marketing as a process(McDaniel, C. D. and Gates, R. H., 1998). Hence all the three elementstogether contribute towards preparedness of the organisation againstexternal forces such as changes in market trend, consumer behaviour, tasteand attitude.It can be seen from the figure that only 30% spend pretty much time ondata warehousing, 20% spend pretty much time on analysing competitorsoffering and 0% spend pretty much time on market research which clearlyshows that very few of the participants are prepared for competition fromrival firms, changing customer needs and taking up new opportunities. Butat the same time it cannot be said that participants are completely ignorantas significant number of participants are either spending more or less timeon data warehousing, competitor’s analysis and market research or areplanning to. The amount of time spend by the participants can also becorrelated with the participants experience of conducting those activitiessuch as those spending little time are just beginners; those spendingenough time are intermediates and those spending pretty much time areexperts.MSc. International Business Page 69
  • 79. 2.5. Use of Performance Management System on MarketingStrategies:Fig 10: PMS on Marketing Strategies: the chart explains amount of time spend on conductingPerformance Management System (PMS) on Marketing strategies.The figure shows that a total of 60% of the participants spend more or lesstime on conducting PMS on marketing strategies out of which 30% spendenough time and 10% spend pretty much and great deal of time. Theparticipants are spending time on PMS because they want to know howefficient are their marketing strategies; how well they are progressingtowards their predetermined objectives; what can be done to improve theirmarketing or Return on Investment on marketing activities (Purbey, S. et.al., 2006).MSc. International Business Page 70
  • 80. 2.6. Modifications based on PMS and Information gathered:Fig 11: Extent of modification based on PMS and information gathered: the chart explains the extent oftime spend by participants on modifying their business activities based on the PMS results andinformation gathered. It can be seen that a significant number of participants spend more or less time on modifying their business activities based on PMS results and information gathered. 70% spend more or less time on modifying external promotional activity; 80% spend more or less time on developing new products and changing price. The observation of the participants gives the reason behind the huge number of participants modifying their business activities. The participants understand that by implementing changes in marketing activities based on the results from PMS will help them to achieve their marketing objectives more efficiently. Also by developing new products and changing prices based on market information gathered helps them to efficiently compete against their competition. The data from Figure MSc. International Business Page 71
  • 81. 9, data warehousing and Figure 10 corresponds with the numbers from theFigure 11 justifying that all those conducting PMS and data warehousingmodify their business activities based on the results and informationgathered.2.7. Owner/Managers Understanding of External Market:Fig 12: Understanding of external market: the chart explains the owner managersunderstanding of their external market.The above figure shows that 40% of the participants disagree to thatstatement that they have guaranteed business in a stable market whichshows that these participants face irregularity in business in their area dueto threat from substitutes and changing customer preferences. The 20%participants are unaware of their market situation which corresponds withthe Figure 9 which shows that 20% do not spend any time on dataMSc. International Business Page 72
  • 82. warehousing. Further it can be seen that 80% of participants agree thatthere exists an intense rivalry among competition and they are trying tosurvive through it. This explains that participants are aware of thesignificance competition and corresponds with the Figure 9 were 80% ofparticipants analyse competitors offerings. 80% participants agree thatthere exists threat of new entrants which can be supported by the factsderived from observation that economies of scale does not exist; lowworking capital required; no proprietary product differences and easyaccess to distribution channel. Further 20% participants agree thatsuppliers and customers have huge bargaining power as due to competitionthey have different options available.2. 8. Marketing VS Categories: Marketing activities VS Categories OP M LP NP Dedicated marketing personal 100% 100% 0 0 Customer and Market database 100% 67% 50% 0 Involvement in marketing activities 100% 100% 50% 0 PMS on marketing strategies 100% 67% 0 0 Undertaking modifications due to PMS 100% 67% 0 0OP = Outperformer, M=Mediocre, LP= Low performer and NP= Non performer. % = % ofparticipants.Table 8: Marketing activities performed by different categories:The table clearly shows that all the outperformers perform all thementioned marketing activities proves that outperformers are “Marketingled” organisation. Mediocre on other hand are slowly devolving into“Marketing led” by making its journey through “Marketing dominant” stageMSc. International Business Page 73
  • 83. by using “strategy A” of Role and Relevance of marketing model (Simpsonand Taylor, 2002). Currently low performers can be seen showinginvolvement in marketing activities such as giving suggestions for design ofwebsite; maintaining the advertising campaigns through Google Analytics;and daily maintenance of their profile on the social networking sites. Lowperformers are also collecting, maintaining and utilising customer andmarket information for the purpose of advertising. Thus low performers canstated as “Marketing week” organisation. Non performers can be directlyreferred as “Marketing independent” organisation which currently does notfeels the need for marketing. The organisation that adopts marketingprinciples and undertakes marketing activity into its daily functions arepresumed to have superior performance however it is also found that someorganisations manage to be successful without undertaking marketing butby focusing on technical and/or production capabilities (Pelham, 2000).2.9. Understanding the Marketing activities of Outperformers: R1 R2 R3Online Advertising tools and Website Website Websitetechniques used Food Reviews Food Reviews Paid search sites sites Social Paid Search Social network Networking (paid profile) (free) Social Networking (free) Cheap Targeting Targeting efficiencyReason for Shift efficiency Target more Value for money Measurability audience Cost effectivePMS on Online Advertising No of bookings No of bookings No of Orders No of hits on No of Orders No of hits on website website Use of Google analyticsMSc. International Business Page 74
  • 84. promotional code Google Analytics Report from social network Advertising mediums other Leaflets Leaflets Promotional than online Vouchers Books Inviting Critics Inviting Critic Television Magazines Sponsoring Shows Inviting Critics Local newspaper reviews Word of mouthTable 9: Marketing activity performed by Outperformers:This table will help to understand what are the marketing activities outperformers undertake that makes them successful. Hence out of the 10participating restaurants this table only focuses on 3 outperformingrestaurants. This will help us in a form of a guide to formulate the model foreffectiveness of internet advertising for small businesses.2.9.1. Internet advertising tools and technique:Here after, the explanations are based on the responses received from theparticipants for the open ended question presented in part 5 of thequestionnaire. The out performers are focusing on the current popularadvertising formats website, paid search and social networking websitesalong with Food Review site which is also an important advertising channelfor the respondent’s specific industry. The Review is a very powerfulchannel it can make or break the reputation of a restaurant (Blank, G.2007). There are about 500 million users on Facebook; UK alone has 40.5million active online users. IAB in its report states that Paid search accountsfor 60% of the advertising revenue generated by internet medium (IAB,2010).MSc. International Business Page 75
  • 85. 2.9.2. Traditional Mediums used:Inviting critics followed by leaflets are the industry specific popular channelsof advertising. Reviews written by food critics published in food guides andfood magazines popular among foodies. The critic’s review is a mechanismthrough which social status of the restaurant is made visible (Blank, G.,2007). Leaflets or hand bills have been age long traditional medium foradvertising outdoor with low budget.2.9.3. Performance Management system:All the outperformers have their own performance management systemwhich is used to gauge the effectiveness of the internet advertising strategyimplemented. Currently out performers are using performance measuresspecific to the individual channels used. Number of orders received, Numberof bookings received and Number of hits are the measures specific towebsite. Reports provide by the individual social network provider are usedto gauge the performance of social media advertising. Use of promotionalcode is a measure which can be used for both website and social mediaadvertising depending on the place where it is been promoted from. Lastbut not the least paid search channel is gauged by using the Googleanalytics which is specific for ads on Google search engine. This shows thatthe outperforming participants are using Google search engine.MSc. International Business Page 76
  • 86. 2.10. Model of effective online advertising:Thus looking through the patter developed in the above discussion a modelof effective Internet advertising can be drafted.Key elements Definition Example The Internet advertising Banner ad, pre-post roll format used for the over video ads, paidFormat campaign should at least be search, online classifieds, able to capture as much as etc. possible impressions. Integrated marketing Business cards and Leaflets should be practiced. Such with web address printedIntegration that traditional advertising on them, discount vouchers should direct customers to for online ordering, internet advertising. affiliated advertising, etc. A performancePerformance management system should Google Analytics, GoogleMeasurement be in place to track the Adwords, etc.System performance of the campaign.Table 10: Model of effective Internet advertising (Source: Author: - Data analysis) I) Format:The format used for the Internet advertising should be able to capture asmuch as audience as possible. The current trend of large advertiser’sinvestment in internet advertising should help us to understand theimportance of the format. The statistics show that paid search showed9.5% increase in 2009 to reach £2.15 billion this shows that more and moremarketers are choosing paid search which also explains its effectiveness.Facebook profile as an instrument for creating publicity is a good mediumonly if certain amount of efforts and time is invested. Thus to make surethat advertisement is exposed to as much as possible audience right formatMSc. International Business Page 77
  • 87. needs to be chosen. The previous chapter identified the commonalitiesamong the out performers which mention website, social networking, foodreview website and paid search. These represent the ideal five places usedby outperformers to advertise. II) Integration:The empirical studies have proved that for the online marketing to beeffective all the marketing communication should be integrated together(Vescovi, T., 2000). From the previous chapter it is clear that R1, R2 andR3 all of them emphasise on integrating their marketing activates. Theowner/manager understands that internet is a vast space with millions ofwebsites and millions of users hence garbing attention of the users iscrucial. R1, R2 and R3 uses traditional mediums such as Leaflets,Magazines, Promotional vouchers and local newspapers to link back thetraffic to its website. III) Performance Management System:Performance management system helps the marketer to track theinefficiency in its strategy. Results from which can be used to increase theefficiency of the advertising strategy. R1, R2 and R3 uses the GoogleAdwords and Google analytics detailed statistical reports which includesreports such as Average Cost per impression; Cost per click; Click throughrate; etc and Conversion reporting which includes reports such assuccessful sales; leads and submission. On other hand they also use basicmeasurers such as number of internet order, number of booking andnumber of visits as key determinant for tracking the performance of itsInternet advertising.MSc. International Business Page 78
  • 88. 3. DiscussionThe pervious chapter has transformed the data into information and thischapter will be transforming that information into knowledge. This chapterwill conclude with final two objectives mentioned in the introduction sectionof this research. • To develop and understanding of the marketing activities of participating sample case studies. • To develop a model of effective internet advertising for Small Businesses.3.1. Participants:The demographics explained in the previous chapter gives a clear ideaabout the size, composition and distribution of the participants. Theresearch had specific requirement for selecting the case studies. They hadto be Indian restaurants from in and around the city of Aberdeen. Thishelps the research to give more specific and targeted result since both theindustry and the location of the research is clearly defined. The other factorbehind selecting the restaurant industry specifically serving Indian cuisinewas the convenience. The final ten participants were symbolised as R1, R2,R3, R4......Rn (where n=10) for ease of representation, avoiding confusionand maintain privacy of the participants. These restaurants are officiallyclassified as small businesses as per the definition previously mentioned.MSc. International Business Page 79
  • 89. 3.2. Classification:Three types of classifications were identified and utilised within theresearch. Classification based on percentage increase in annual salesturnover, classification based on online experience and classification basedon age.3.2.1. Classification based on performance:First classification was based on the annual sale turnover of theparticipants. The increase in sales was key determinant used forclassification. The participants were classified into Outperformers, Mediocre,Low performers and Non performers. This classification assists indetermining the answers to the questions such as; Who is able toeffectively use internet advertising? How are they able to use it effectively?What are they doing that makes them effective? Why are non performersnot able to use it effectively?The out performers included 30% of Participants; Mediocre included another30% while low performers and non performers both included 20% each.The Figure below clearly shows that R1, R2 and R3 are the outperformers;R4, R5 and R6 are the Mediocre; R7 and R8 are Low performers while R9and R10 are the non performers. Hence for the purpose of the furtheranalysis the study only focuses on the out performers namely R1, R2 andR3.MSc. International Business Page 80
  • 90. Fig 13: Increase in sales for each participants. (Source: Primary data)3.2.2. Classification based on online experience:The second classification was based on the number of years of experienceof internet advertising. This classification was tabulated in table 5 whichstates three categories under this classification. Findings from the previouschapter suggest that restaurants in the experienced stage have significantimpact on the annual sales turnover. From Table 3 and Table 6 we can seethat experience category includes four restaurants with online experience of11, 12 and 14 i.e. R1, R2, R3 and R4 respectively. Hence we can see theconsistency in both the classification except the R4 which according toprevious classification falls under mediocre category.MSc. International Business Page 81
  • 91. 3.3. Studying the marketing activities of R1, R2 and R3:As mentioned in the beginning that to understand the factors responsiblefor the effectiveness of the internet advertising it is necessary to study themarketing activities of the Out performers/Experienced i.e. R1, R2 and R3.3.3.1. R1 and R2’s marketing activities:R1 and R2 is a family owned business and the marketing activities arehandled in house only. They have a family member who completely looksafter advertising. All the advertising including those of internet advertisingare formulated by this person who works as a marketing manager. Themarketing manager of R2 does not have any formal degree but has quite ahuge experience on internet advertising since he pioneered internetadvertising in R2 in 1998. This marketing manager of R1 holds a Masters inbusiness administration in marketing degree hence as a positive attitudetowards advertising. The empirical studies show that for adoption of anyinnovation the decision maker should be positive attitude about it(Dholakia, R. and Kshetri, N., 2004).R1 uses three internet advertising channels first website, second foodreview site and last social networking (free profile). R2 uses Paid searchother than those used by R1. Their activities are more or less similar sincethey use the same channels.Although they looks after every aspect of marketing development ofwebsite and maintenance is out sourced. But they work as a liaisonbetween the restaurant and the third party. All the marketing material andtext content is made by marketing manager himself which is then providedMSc. International Business Page 82
  • 92. to the web developer. Similarly marketing manager also makes all printedmarketing material by himself. This shows marketing’s manager’sinvolvement which is a key factor for internet communication (Vescovi,2000). The managers from both places can be said to plays the role of aproject leader supporting the owner who with is charismatic personalityplaying the role of the champion.Food review website is considered as a crucial channel to connect withcustomers. Marketing Manager himself publishes articles and review fortheir restaurant. The one reason why food review site is consider importantis because it is free of charge and allows connecting with millions of foodiesfrom around the world. They look at it as a medium to develop itsreputation and brand image among the foodies.After conducting a market research and finding a boom in social networkadvertising marketing manager of R1 recently made his decision of enteringinto social network advertising while R2 has been on the social networksince last few years.R1 is a “marketing led” organisation it always tries to look for newopportunity. To increase its market share in the market R1 has recentlylaunched its own range of pickles making its first move in branding. Apartfrom internet advertising R1 also does some traditional advertising such asleaflets, Recipe Books, Television shows and inviting critics. Through allthese medium it always tries to promote its website and attract more andmore traffic on it. This method of integrating the mediums helps R1 toincrease its performance. For. e.g.: R1 was recently selected for a popularMSc. International Business Page 83
  • 93. television show hosted by a popular personality from food industry for acompetition. This creates a buzz among the foodies and force traffic towebsite.R2 apart from internet advertising uses different traditional forms ofadvertising by which it tries to integrate back to the website. Traditionalmethods such as Leaflets, inviting critics, Magazines and local newspaper.R2 uses promotional code and Google analytics other than those used by R1for PMS on internet marketing activity.R1 uses basic method of tracking website performance by recording thenumber of bookings place via internet and number of visits received on thewebpage. It does not have to charge extra for it as number of bookings arerecorded automatically on the server and data regarding number of visits isprovided by the website hosting service provider itself.The use of promotional code is simple and easy way of tracing theeffectiveness of a website or social network advertisement. R2 publishes apromotional code on its website whenever a promotional code is used arecorded it kept this then helps to track the performance of that promotionand its medium. R2 also uses Google analytics which is a paid applicationprovided by Google. It provides assistance to track the performance ofsearch engine adverts and display adverts made throughout Googlenetwork.MSc. International Business Page 84
  • 94. 3.3.2. R3’s marketing activities:R3 is a sole trader he owns and runs the restaurant on he’s own. He hasappointed a person to look after his marketing along with some otheractivities. So R3 does not have dedicated marketing manager. The managerlooks after both the internet advertising and traditional once. Most of theinternet advertising activities conducted by R3 are similar to R1 and R2other than the use of sponsoring as traditional advertising. It sponsors alocal football club where R3 gets a chance to advertises and publicise itswebsite and divert traffic to its website. Commonalities Online Advertising tools and Food review Website Paid Search techniques used website Social Food review Networking website (free) Report from social PMS on Online Advertising No of bookings No of Orders network Use of No of hits on promotional Google Analytics website code Advertising mediums other Promotional Leaflets Magazines than online Vouchers Local newspaper Books Inviting Critic reviewsTable 11: Commonalities between R1, R2 and R3. (Source: Primary data)MSc. International Business Page 85
  • 95. 3.4. Advertising Channels:3.4.1. Paid Search:Findings published in the previous chapter suggest that R2 and R3 use paidsearch as one of its advertising formats. The search advertising on Googleis named as Google Adword. Google Adwords has a onetime joining fee andmonthly cost-per-click as decided by the advertiser. Google advertisingnetwork gives a wide range of exposure to the business. Advertisingthrough the search network the ad is published alongside of the otherrelevant ads on different search engines along with Google.The Google search network consists of: • Google local • Froogle • Ask Jeeves • AOLThe paid search consists of 60.7% of overall online advertising spend in2009 weighting £2.15 billion (IAB, 2009). This proves the popularity of themedium among the marketers. Thus R2 and R3’s choice of format is keyfactor behind its effective online advertising campaign. Another key factorfor its successful online advertising is the placement of ad in relevantcontent area. Google matches the keywords specified by the advertiser tothe search terms entered by the user hence it is every time exposed to thetargeted audience (Google Adword, 2010). Google also helps theadvertisers by providing detailed reports of the search advertisement.These reports gives information such as click through rates, frequently usedkeywords, etc. It also provides the advertiser valuable suggestion on whichMSc. International Business Page 86
  • 96. key word can best serve to the advertiser’s content or what changes shouldbe made to the contents. Popularity of Google helps the brand to developbrand awareness among its users. It also helps for forecasting via itspictorial charts and graphs giving results in economic terms. The pictorialgraphs and charts makes the financial and marketing terms easy tounderstand.Since the advertisements are listed on the query entered by the user it hashigh purchase intent and likely to reach wider and specifically targetedaudience. It gives more control on match type by giving the options such asphrase match, exact match and broad match. Paid search is much faster, ifan ad is submitted it only takes few hours to be online. This is helpful forrunning a camping on and off. The reports provided by Searchadvertisement provider consist of traffic volume, returns and rankings thisreduces cost of using a third part service for maintain an advert giving theadvertiser more control. Paid search has more conversion rate than otherssuch display ads (Chaffey, D., 2008).Small businesses can benefit from advertising on Google and takeadvantage of the benefits it has to offer. Precise targeting can help to getmore traffic to the website. With Google Adword advertiser do not have tobe a marketing expert hence a owner or a manger of any small businesscan easily launch and manage a search advert. Since it is launched andmaintain by the advertiser itself cost of out sourcing the marketingcampaigns is reduced.MSc. International Business Page 87
  • 97. 3.4.2. Social Networking:The social network advertising is done by all three of the out performers.This justifies that social network advertising is gaining popularity. R1 andR2 are using the free profile whereas R3 is using the paid one. The onlydifference between both the profiles is that paid profile provided morecontrol over the advertising campaigns. There are different options tochoose, different reports, charts and graphs to assists.The social media advertising is booming along with the increasing socialmedial craze. The social networking websites such as Facebook, twitter,myspace, etc. provide both paid and free service for advertisers. Henceanyone from micro business to multinational company can advertise onsocial media. The average online user in UK spends 20% of his/her onlinetime on Facebook. The UK online population as estimated by UKMO andNielsen (2010) is 38.8 million. Thus, if properly used social network such asFacebook can give alarming benefits. According to the Stelzner, M., (2009)the top benefits of the social network marketing is generating exposurefollowed by increasing traffic and finding new business partners. TheFacebook provides the opportunity to expose to ‘n’ number of peoples butmarketer has to take efforts to attract the desired target audience to itsprofile (Vescovi, T., 2000).MSc. International Business Page 88
  • 98. 3.4. 3. Food Review websites:R1 and R2 both do food review website advertising. It is basically a free andsometimes paid listing where a restaurant owner or a manager can submithis or her restaurant to the website for listing. Once the website is listed onthe websites server the owner/ manager can log on to the website andchange or update its details. The website gives option to owner/manager towrite a review for his hotel. The website also has some regular visitorswhom it allows to write, comment or rank its experience of visiting therestaurant to share with other users.These sorts of websites are basically a portal to generate awareness amongthe foodies, build and maintain a reputation among the foodies and trackthe performance of their competitors. The owner/manager gets anopportunity to directly communication with its old and potential customers.This also helps to build and maintain a healthy relationship with thecustomer.3.4.4. Website:Website is a beginner’s step into internet communication. All the threeoutperformers have a full functioning website. The website serves differentfunction for a business. It also works as a virtual store while at same timecan be used to run internet advertising campaign. It can also work as abrand awareness tool. It is a one site destination for the customers for allthe information regarding the products. Its increased interactivity allows itto be used as a real time assistance centre. The website allows us toMSc. International Business Page 89
  • 99. provide information, sales, generate leads. The effectiveness of the web siteis gauged by the number of visits received.Paid Search Social Network Food review Website WebsiteTargeted audience Increasing Free or paid Different popularity functionsFaster Free and paid Control Brand profiles awarenessAssistance provided Exposure Direct marketing to target Customer customers serviceReduce cost of Traffic Competitors analysisthird partyMore conversion New business Customer relationrate Direct interaction with customersTable 12: Advantages of important channels of advertising onlineMSc. International Business Page 90
  • 100. 3.5. Advantages to small businesses:The above table summarises the key advantage of the important channelsof advertising. This helps us to easy understand the significance of thechannels. Although these advantages sound generic they are of crucialimportance to small businesses. The features such as “”reduces cost ofthird party”, “Free”, “Assistance provided”, “Targeted audience” thesefeature can save cost, help to understand complicated terms and functionsin their early stage. Whereas features such as “Faster”, “Exposure”,“Competitor analysis”, “Direct interaction with customer”, “customerservice” will help them to increase their competencies and be competent inthe market.MSc. International Business Page 91
  • 101. Section 5: Conclusion and RecommendationMSc. International Business Page 92
  • 102. 1. Conclusion andRecommendation1.1. Conclusion:The main aim of the study was to explore the factors responsible for theeffectiveness of the online advertising by small business in Aberdeen. Thestudy intended to develop a model for effective online advertising for Smallbusinesses.The central research question for the study was: What is the effectivemodel of online advertising strategy for small businesses? This wasintended to answer after narrowing down through answering thesubsequent questions. The answers for the subsequent questions are asfollows:1.1.1. What are the factors responsible for growth of UK onlineadvertising?The Key Drivers of Growth for UK online advertising expenditure are asfollows: • Advertiser confidence – Marketers are regaining their confidence on the market hence the rie in overall marketing budget can be seen. • More people online – According to the study conducted by UK Online Measurement Company (UKOM) and Nielsen, the UK’s activeMSc. International Business Page 93
  • 103. online user base has registered an increase of 4.4 million that is total of 39.7 million in comparison to 35.5 million in February 2009 • Faster broadband drives video advertising – Increasing online population; availability of broadband facility to more and more people (90% of UK online population) and increased broadband speed of over • Social media fever grips Britons – An average online user in UK spends its 20% of online time socializing on Facebook. Thus, providing the golden opportunity for the marketers to engage mass audience with interactive adverts (IAB, 2009).1.1.2. Why are SMEs not benefiting from online advertising?The study answers this question by explaining “Six natural trouble” theoryexplained by Vescovi, T., (2000) in this paper. In this theory explains sixproblems affecting the Small businesses approach to internetcommunication. Although it explains problem raised in internetcommunication it can be generalised for online advertising. • Unclear communication: He explains that most of the small businesses launch a website with a “me too” attitude and then forget about it. He says that internet provides opportunity to interact with the customers and it should be revitalised daily. • New communication paradigm: Since being the medium being new to small business two problems raise first cost incurred in buying new media equipment. Second, competencies required to use the new medium and its equipments (Hoffman and Novak 1996b). ThusMSc. International Business Page 94
  • 104. Small businesses has to prepare them self before adopting online advertising. • Non-integrated marketing communication: Developing a website is not enough small business have to be innovative to integrate all its marketing activities to attract the customers to its website (Walczuch, R. et al., 2000) • Company involvement in internet challenge: The business should completely involve itself into the marketing activities and projects. These projects can be lead by the manager playing the role of the project manage and owner closely overlooking the project playing the role of champion along with rigorous planning of strategies (Vescovi, 2007). • People for internet communication: Most of the time it is assumed that the internet is a technical stuff and only technical experts should solve it. Although the website is a technical stuff the content that it carries is a marketing material and need a touch of marketing personal (Vescovi, 2000). Along these factors there is some misconception among small businesses that online advertising is only for large brands ready to spend huge amounts. Secondly it does not give benefits and last there is no securityMSc. International Business Page 95
  • 105. 1.2. What is the effective model of online advertising strategy forsmall businesses?Key elements Definition Example The online advertising format Banner ad, pre-post roll used for the campaign should over video ads, paidFormat at least be able to capture as search, online much as possible impressions. classifieds, etc. Online business cards, Supportive measures should leaflets, online discountSupport be implemented for the vouchers, affiliated campaign to be popular. advertising, etc. A performance managementPerformance system should be in place to Google Analytics,Measurement track the performance of the Google Adwords, etc.System campaign.MSc. International Business Page 96
  • 106. 1.3. Recommendation:The study was conducted in south west London using 10 case studies drawnfrom specific population. London is fairly representative of UK consumers;there can be significant differences if the research is carried out in othercountries or even other parts of UK. Therefore it is necessary to confirmthese findings in a broader intercultural context. Specifically, the followingquestion should be further studied in international context: • What is the effective model of online advertising strategy for small businesses? • What are the factors responsible for growth of world online advertising? • Are SMEs from other country benefiting from online advertising or not? • What are the strategies used by SMEs in other countries for online advertising?Finally, this study can be conducted on much wider scale and usingquantitative methodology. Also there exists a huge gap in literature onadoption of internet advertising by Small business. Thus more researchneeds to be done under this topic.MSc. International Business Page 97
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  • 114. QuestionnairePart I: Company Details 1. Name: 2. Address: 3. Contact Details: 4. Industry sector: 5. Major products: 6. Major customers: 7. Number of employees: 8. Annual sales turnover: 9. Year began trading:Part II: 1. The role of marketing within the organisation (yes/no/don’t know): 1. Do you have a marketing department? 2. Does your company have dedicated marketing personnel? 3. Do you collate and store information on customers and the market place? 4. Does your company have an active Marketing business plan? 2. Time and effort spent on (Six point Likert scales, “none” to “a great deal”): 1. Preparing business plans for the future. None Planning Little Enough Preety much Great deal 2. Developing marketing strategies and plans. None Planning Little Enough Preety much Great deal
  • 115. 3. Developing new products or services. None Planning Little Enough Preety much Great deal 4. Preparing external communications/promotions activities. None Planning Little Enough Preety much Great deal 5. Maintaining the customer and market information database. None Planning Little Enough Preety much Great deal 6. Analyzing competitors’ offerings. None Planning Little Enough Preety much Great deal 7. Evaluating the performance of marketing strategies and plans. None Planning Little Enough Preety much Great deal 8. Undertaking market research. None Planning Little Enough Preety much Great deal3. What is your marketing budget? (Include all activities associated with gathering market information and selling) (Free response).4. Extent of marketing activities (six-point Likert scales, “not at all” to “a great deal”) (Extent to which you): 1. Modify your external communication/promotional activities as a result of tracking their performance. Not at all Planning Little Enough Preety much Great deal
  • 116. 2. Develop new products and services as a result of marketing information gathered. Not at all Planning Little Enough Preety much Great deal 3. Change the product prices on the basis of marketing information gathered. Not at all Planning Little Enough Preety much Great deal 4. Adapt the channels of product distribution on the basis of marketing information gathered. Not at all Planning Little Enough Preety much Great dealPart III: 1. The relevance of marketing for the organisation (five-point Likert scales, “strongly disagree” to “strongly agree” plus “unable to respond”) 1. We have guaranteed business in a relatively stable market. Strongly Disagree Disagree Niether Agree strongly Agree 2. We are trying to survive against the competition. Strongly Disagree Disagree Niether Agree strongly Agree 3. The level of competition in our market produces intense rivalry between competitors. Strongly Disagree Disagree Niether Agree strongly Agree 4. We operate in a market where it is relatively easy for new competitors to emerge. Strongly Disagree Disagree Niether Agree strongly Agree
  • 117. 5. Our suppliers have few customers and rely heavily upon our business. Strongly Disagree Disagree Niether Agree strongly Agree6. Our customers have a limited choice of suppliers and rely on our ability to supply their needs. Strongly Disagree Disagree Niether Agree strongly Agree7. Marketing is of little use to this organization because we have guaranteed business. Strongly Disagree Disagree Niether Agree strongly Agree8. We are doing fine without marketing and it is not expected to be of much use in the future. Strongly Disagree Disagree Niether Agree strongly Agree9. The achievement of marketing goals involves everybody in the organization. Strongly Disagree Disagree Niether Agree strongly Agree10.All employees of the organization understand their role in achieving an integrated effort to achieve a marketing orientation. Strongly Disagree Disagree Niether Agree strongly Agree11.Marketing is important for expansion and growth of the company. Strongly Disagree Disagree Niether Agree strongly Agree12.In the future we would like to grow the company. Strongly Disagree Disagree Niether Agree strongly Agree
  • 118. 13. In the future we would like greater market penetration with our existing products. Strongly Disagree Disagree Niether Agree strongly Agree 14.In the future we would like greater market share with our existing products. Strongly Disagree Disagree Niether Agree strongly Agree 15.In the future we would like to develop new products for our existing market. Strongly Disagree Disagree Niether Agree strongly Agree 16.In the future we would like to diversify into new markets with new products to grow and develop. Strongly Disagree Disagree Niether Agree strongly AgreePart IV: 1. Your assessment of your organisation (Five-point Likert scales, “strongly disagree” to “strongly agree” plus “unable to respond”). 1. This organization has a strong marketing orientation and whole- heartedly adopts and adheres to the principles and practices of marketing. Strongly strongly Unable to Disagree Niether Agree Agree respond Disagree 2. Marketing is an unnecessary burden for the organization. Strongly strongly Unable to Disagree Niether Agree Agree respond Disagree 3. This organization has invested heavily in marketing but has not, as yet, reaped its benefits. Strongly strongly Unable to Disagree Niether Agree Agree respond Disagree
  • 119. 4. This organization is unaware of the benefits that marketing can offer. Strongly strongly Unable to Disagree Niether Agree Agree respond Disagree 5. This organization has tried some marketing in the past and, having seen little reward for this effort, has abandoned such efforts. Strongly strongly Unable to Disagree Niether Agree Agree respond Disagree 6. There is little need for marketing in this organization because it does not face competition. Strongly strongly Unable to Disagree Niether Agree Agree respond DisagreePart V: 1. Your online advertising strategy: (open ended questions) 1. When you did first started using online medium for advertising? 2. What online advertising tools and techniques are you using? 3. Have you always being using online advertising? If not why did you switched from traditional to online advertising?
  • 120. 4. What was your actual need behind using online advertising?5. Do you do performance measurement on online advertising?6. Which other advertising mediums do you use other than online?7. Do you feel you are getting sufficient outcomes (in terms of sales) for your online advertising expenditure?8. If yes; why? What is it that you think you are doing differently?9. If No; why? What is it that you think you can do differently?
  • 121. 10.If I ask you to put that outcome in figure what figure it would be in terms of number of hits on webpage; sales increase and % wise increase in overall business?2. What are your views about: 1. Importance of place element of advertising? Do you consider it while advertising online? 2. Importance of format of advertising? Do you consider it while advertising online? 3. Importance of integrating all the mediums of advertising used? Do you consider it while advertising online?
  • 122. 4. Importance of Performance Management System to calculate return on Investment on online advertising? Do you consider it while advertising online?

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