Consultancy Project - Literature review Example

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The literature review discusses the role of online marketing communication in the Small and Medium sized Enterprises (SMEs) in general and the influence online advertising can have in their functioning, in particular. …
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Download file to see previous pages The review seeks to indicate what forms and models of online advertising should be enacted to utilise online marketing communication. The literature review identifies the diverse range of opportunities that a SME can avail by the adoption of online advertising in their business and also the future potential of its implementation. The review discovers that for an effective online advertising, the SMEs should preferably own their individual websites, segment their target audience afresh and use innovative advertising tools. Company websites provide the prospect of presenting information targeted to a range of definite groups of segmented target customers and also to access feedback from them in real time. The review finds that though the utilisation of online advertising tools have benefitted the SMEs by augmenting the promotion of their companies even in the overseas markets at comparatively less expense, a large proportion of the SMEs are yet to employ the online marketing approach. Online advertising is a very new approach for many SMEs although it has been in use since a decade; and it has not been used it to its full potential yet. Table of Contents Abstract 2 1. Introduction 4 2.1 The Role of Online Marketing Communication in the SMEs 5 2.2 How Can SMEs Conduct Good Online Advertising 10 2.3 Future of Online Advertising in SME 14 3 Conclusion 16 References 18 1. Introduction The business organisations all over the world have undergone a remarkable and tremendous change in their functioning processes due to the application of internet. Experts feel that marketing is one of the segments of the business process that is most influenced by the evolution of internet (Krishnamuthy, 2006; Sheth & Arma, 2005; Krishnamurthy & Singh, 2005). Consequently, the promotional mix of most of the organisations today includes an important ingredient known as the online marketing communications (Jensen, 2008). Online Marketing Communication has provided larger possibilities to the Small and Medium Enterprises (SME) and has subsequently augmented their potential. In this literature review, answers to the following questions have been considered: 1) What is the role of online marketing communication in the SMEs? 2) Is it essential for SMEs to do online marketing communication? 3) How do SMEs conduct effective online advertising? Marketing communication is a significant and essential interceding process in a business that connects the offerings of an organisation to its target customers. Marketing communication is the promotional activity of the organisation and includes advertising, promotion, direct marketing, and public relational activities among many others (Kimmel, 2005). According to Lasswell, marketing communication process consists of the source or advertiser, the communication or the advertisement, the channel or medium of communication, the target audience who are the receivers of the communication and finally the response to the process (Koekemoer & Bird, 2004). The advertisement process is a way of making known or informing the already existing as well as the potential target customers about the products and services the firm wishes to sell or buy and persuade them to respond positively to the products. Advertising can be categorised by four important decisive factors, viz. rationale, target audience, geographical region and medium. Accordingly, it can be brand advertising, corporate image advertising, consumer advertising, national advertising, local advertising, electronic advertising and internet advertising among ...Download file to see next pagesRead More
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