How Could a Small Organisation Grow with the Help of Online Marketing - Coursework Example

Content Introduction 2 Definition 2 Literature Review 2 Strategy for small business unit 3 Tools for small business unit 5 Online Marketing techniques 7 Advantages of online marketing for small business unit 8 Conclusion 11 References 12 Introduction Today, the world has become a small place to live in. National boundaries are vanishing and trade is spreading its feet to every nook and corner of the world. It has become imperative that to sustain in the long run companies need to think big. This is true for small organisation. They being at a disadvantage due to the size of their business have a much harder task in hand. They need to start use internet as a medium. It will help them to reach a vast area and also appeal to many. This will increase their business horizon. Small business enterprises have to ensure that they “appeal to every person and not to a group of people” (online marketing, 2010) so that it becomes easier to tap them. This will help small enterprise to ensure that “millions of people use their sites to browse through the product and it will help them in gaining certain set of customer”. (Online marketing, 2010) Definition Online marketing is thus “marketing of the product or services over the internet” (online marketing, 2010) so that the company is able to attract customers. The perspective of this has increased. Today, it includes a lot many things like “internet, e-mail, wireless media, digital customer data and electronic customer relationship management systems”. (Online marketing, 2010) This has made the usage to be used in all fields. Small enterprise can benefit due to this. Literature Review A study shows that online marketing helps “companies to extend their brand by using the internet and supports the off line brands but also creates an environment to build an online brand extension”. (Rigopoulou, 2002) This will help small enterprise as they can develop simultaneous brands or use the same brand over both the medium. This will increase sales and will help to improve the share in the market. A research shows that “online marketing helps to build inter firm relations due to improved communication and business to business (B2B) use”. (Rao, 2004) This will be a great help for small organisation. It will help them to communicate with larger firm and adopt strategies and also develop their plans based on that. It will help them to produce goods for certain company and will also keep them abreast to the changes that the firm goes through. A study demonstrates that “consumers due to frustration and change in technology during the purchase process are affected and this takes its toll on the purchase as the frustration level goes beyond the prescribed limit”. (Strebel, Donnell & Myers, 2004) Small enterprises need to watch for it. They should ensure that consumers don’t face this obstacle and the process they go through is simple so that they have fun while buying. Strategy for small business enterprise Small business enterprise can develop and ensure future earnings by adopting online marketing. They can greatly benefit through it as it is cheap and provide various different mechanisms to operate. Here the small business needs to chalk out a plan which gives them a direction and helps to grow. The process is as follows Firstly, small enterprise need to do a “comprehensive online research so that they are able to identify the target market, the approach, the quality, price and other features which can be done by reading reviews, visiting forums, testimonials which will give them a path”. (Learn the ultimate internet marketing strategy, 2006) This is less costly and will help the smaller units to find out the market and the potential it has for growth. Secondly, the small enterprise needs to “carry a data analysis which helps to find the strengths and weakness”. (Learn the ultimate internet marketing strategy, 2006) This will help them to work in the respective direction so that they can strengthen their areas which can help them to improve their potential. Thirdly, the small business enterprises need to “develop a strategy keeping in mind both the long and short term objective”. (Learn the ultimate internet marketing strategy, 2006) This will provide them with a definite path and their efforts can be directed in such a way that it helps them to accomplish the desired results. Lastly, the small business units “need to monitor the performance on a continuous basis so that the deviations are accounted for and all measure are taken to ensure that the performance is as per the desired result and if needed changes need to be accounted for so that the enterprise achieves what they want”. (Learn the ultimate internet marketing strategy, 2006) This will save time and reduce the unnecessary expenditure and will make them achieve results which are as per the requirements. The following example shows how a company which was small by following the above strategies developed itself into a big unit. For example, Car Secrets Revealed by Corey Rudl was highly successful. They started using “internet as a medium to promote their product but wasn’t successful at the start but after various trials and errors the company finally launched some unique promotional techniques which helped them cater to a good market”. (Rudl, 2009) Small enterprise can learn from this. They can make use of the techniques which suit their line of business and this will allow them to integrate the mechanism with their business. Tools for Small Business Units The smaller business units have a variety of option to choose from which depends on the amount of investment the company wants to achieve thus giving them an option to decide the amount they want to spend. The various services available for them are Cost per click: The small business enterprise can use this mechanism where “the enterprise pays for each click the websites receives from search engines thereby ensuring that only the target audience who want their product uses it”. (Online marketing strategy, 2009) This will save the valuable expenses the small enterprises have to incur and they can use it only for the market they want. Banner Advertising: Small enterprise depending on the market can use this mechanism where “they pay the search engines to place a banner at the top of the search engine when a particular item is searched”. (Online marketing strategy, 2009) This will help to increase the reach and also at the same time ensure that the more people know about it. It will see that even a person with the slightest want is attracted towards it and will increase the conversion rate. Pay on page placement: Small business units can use this as “it is cost effective and involves the creation of search engine which are optimised to get good ranking”. (Online marketing strategy, 2009) This will help them to get a good rating and win consumer hearts thereby getting more people in the future. Search Engine optimization: Small business units can use this as “it is cost effective and due to optimization helps the website to be among the first page when a person searches for a product offered by the company and also provides ranking which will help the small enterprise to improve their performance in the future”. (Online marketing strategy, 2009) This will help them to enter a market where they dominate and this will help them to have a good share. Small business units on the basis of this mechanism can ensure that they perform better. It will help them to increase their business and this will grow them into a bigger unit. The following example also shows how a small business unit has grown and increased it share. For example, “Pink Cake Box which was a small cake manufacturing company was lacking business credibility and awareness about the quality of product manufactured”. (Success stories, 2009) This was hampering their growth potential. The company decided to use online as a medium. This helped them as they were “able to draw attention and traffic to their business and showcased the high quality of their product”. (Success stories, 2009) This allowed Pink Cake Box to “fetch a higher price for their products as consumers were willing to pay more and this led to many inquiries from all type of customer finally resulting in getting some prospective buyers” (success stories, 2009) thus increasing their business. Thus, we see that using the mechanism it helps small business unit to get an advantage which can help them become bigger and better. Online Marketing Techniques Small business units can use various online marketing techniques to market the goods. Some ways which small business units can use to grow are Video Marketing: Small business units can use “videos so that consumers get a feel about the product and see the usage and quality so that they are better able to relate to the product and decide the mechanism to sell their product”. (Whyte, 2007) This will help them to see that the consumers are more satisfied. It will create a good environment and make small business units grow. Conversational Marketing: Small business units from this technique can “gather as much information as possible about the product and the customer requirements so that the company can decide their course for future actions”. (Whyte, 2007) This will help them to achieve a better target market. It will also ensure that small business units are able to grow. Email Marketing: Small business units using this technique can “market their product to a wide range and send it to every person but the drawback is that people hardly read this mails and respond despite the fact it being cheaper doesn’t give a high conversion rate”. (Whyte, 2007) Small business units still at the beginning can use it so find the target market. The above are some of the techniques used widely. There are other ways also which are gaining prominence. Companies need to decide it on the basis of their offerings. This will help them to get a better result and give the desired result. Advantages of online marketing for small business units Small enterprise can benefit greatly from online marketing. This mechanism can help this enterprise to pursue their course of action. The advantages they can get are Low Cost: Small enterprise can use “online marketing as it is less costly compared to direct advertising and helps to save on cost”. (Warren, 2008) Small enterprises have limited finance and they need to use it in a proper way. Using this medium will save them. They can use it as the infrastructure is less costly and having a proper chalked out website with all details can help. Smaller business units can utilize the funds for more important purposes. A study shows that “e-commerce helps business organisations as it reduces cost and complexity, helps to serve customer faster and effectively, improves the payroll and efficiency, helps to remove intermediaries as manufacturers are able to sell their product directly to the customers which will be a boon in years to come”. (Talha & Subramaniam, 2003) This will help small organisation as to sustain competition they need to work on this model. It will also not burden them with extra expenses thus taking care of the enterprises to divert their effort in the right direction. Vast Reach: Online marketing will help small enterprises to “increase their reach and will increase the penetration level as they will be able to reach every nook and corner”. (Warren, 2008) This will help smaller enterprises as they will be able have more customers. People will know more about the product and this will help small business units to increase revenues. This will be an added advantage as “the potential for growth in revenues will increase but the increase in cost will be less compared to it”. (Warren, 2008) Reach the target audience: Small business units can “divert their efforts and use measures to ensure that they reach their target audience and this can be easily achieved through e-mail marketing tactics”. (http://www.christianet.com/internetmarketingservices) This will see that their efforts are not wasted. The conversion rate will be higher and it will ensure that strategies are better and the results reflect it. A study shows that “consumers confidence increases in online merchandising when they are able to use visual cues as it increase customer satisfaction, purchase intention and approach behaviour resulting in more people purchasing the product”. (Young & Lennon, 2010) Small enterprises can bank on this. They can have their websites such that the pleasure of browsing increases. This will ensure that they get more customers and will build loyalty and expand their horizon. Better environment: Small business can bank on it. Buying online ensures that the environment is better. Having a proper and simple design which guides customer to the desired area will ensure that they purchase the goods. This will make buying a pleasure and will ensure that revenues grow. Create Flexible Template: Small business units can greatly benefit due to this. They can “design the things in such a way where they use pay per click, pay for calls, directory listings and search engine optimization which will help target consumer to use the desired path”. (Advantages of online marketing, 2009) This will help small business unit to see that the funds are utilized in the correct way and ensuring a path will help to save precious time of the customer and make browsing fun. Advertising abound: Small business unit can use it in a desired way and “interpolate the offline and online campaigns, outsource work to parties where things can be achieved at cheap rates thereby giving new creative ideas”. (Advantages of online marketing) This will help small business units to ensure that the strategy used as per the requirements. This will help the small business units to see that results are on their side. Instant Conversion ability: Online marketing helps to get customer instantaneously. Small business units can use it and ensure that “the problems of the customer are solved at the point of communication there by satisfying the customer and ensuring that they get what they want”. (Lake, 2009) This will provide service when they want. The time limits will not work and getting their problems answered at the same point of time will ensure that they are happy. This will help to win more customers. This will be reflected in the revenues. Greater Flexibility: Small business using online medium can be flexible. This will help them to “promote their products and come with regular changes in the promotional schemes which are costly and tougher if they use the paper medium there by putting extra pressure on these business units”. (Lake, 2009) This will help the business units to see that they come with changes. This will help the business unit to come with better methods to sell their products. Increase trust: Small enterprise can use this medium to win confidence. They can make their strategies such that it ensures that proper get the correct things at the right price and so that consumer feels confident. This will help to satisfy them more and help that they get what they want. It will build long term relation. This will ensure that in the future when smaller enterprises comes with something new they have a better platform which will help them do better. A study conducted shows that “online environment helps to develop trust between the customer and the company as customer wishes to purchase products only from those companies who offer quality products and this is possible in the mass market only if trust is developed”. (Bramall, Schoefer & Mckechnie, 2004) This will be beneficial for small enterprises as they will get a wide market to cater and building relation will give benefit in the long run. Conclusion Small business enterprise can use online mechanism to their way. It will help them enter a wide market and will give them an opportunity to grow. This will help them increase their business. They can tap the potential customers. Small business units using this way which is widely used today can move quickly. It will ensure that their efforts are directed towards the correct direction. The various tools and mechanism gives them an opportunity to use the one which will ensure that costs are reduced. It will ensure that the small business units compete with the larger one and will create a better ground. It will help them to increase their share in the market and will thus help the small business unit to grow. 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