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E-marketing: T E-Marketing E-marketing: The Ut Enterprises B Owen Ebe Superviso A Thesis submitted for the D Master of Science (Compute School o U The utilization of e-marketing in small business ente tilization of E-Marketing in Sm By enezer Rajarathnam or: Dr. Jing Gao Degree of er and information science) of Computer and Information Science University of South Australia erprises 2010 Page 1 mall Business

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Page 1: E-marketing: The utilization of e-marketing in small ... · E-marketing: The E-Marketing E-marketing: The Utilization of E Enterprises By Owen Ebenezer Rajarathnam Supervisor: Dr

E-marketing: The

E-Marketing

E-marketing: The Utilization of E

Enterprises

By

Owen Ebenezer Rajarathnam

Supervisor: Dr. Jing Gao

A Thesis submitted for the Degree of

Master of Science (Computer and information science)

School of Computer and Information Science

University of South Australia

marketing: The utilization of e-marketing in small business enterprises

marketing: The Utilization of E-Marketing in Small Business

By

Owen Ebenezer Rajarathnam

Supervisor: Dr. Jing Gao

A Thesis submitted for the Degree of

Master of Science (Computer and information science)

School of Computer and Information Science

University of South Australia

marketing in small business enterprises 2010

Page 1

Marketing in Small Business

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Declaration

I declare that this thesis does not incorporate without acknowledgment of any material previously submitted for a degree or diploma in any university: and that to the best of my knowledge it does not contain any material previously published or written by another person except where due reference is made in the text.

Owen Ebenezer Rajarathnam 25/10/2010

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Acknowledgement

I wish to express my sincere gratitude to my research thesis supervisor Dr. Jing Gao, Senior Lecturer in the School of Computer and information Science for his valuable suggestions, constructive criticism and encouragement throughout the research and writing of this thesis. I would also like to express my heartfelt thanks to my family for giving me encouragement to pursue this course and their support during my stay in Adelaide.

Owen Ebenezer Rajarathnam

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A. Table of Contents

A. Table of content.....................................................................................................................4

B. Abstract.................................................................................................................................5

1. Introduction...........................................................................................................................6

1.1 Motivation.......................................................................................................................8

1.2 Importance of E-Marketing ............................................................................................8

2. Research Question ................................................................................................................9

3. Literature Review..................................................................................................................11

3.1. Significants of the papers reviewed................................................................................11

3.1.1 Internet for Marketing...............................................................................................13

3.1.2 Small business in Marketing.....................................................................................15

4. Methodology.................................................................................................................16

4.1. Interpreted CASE STUDY.............................................................................................16

4.1.1 Qualitative Data Method............................................................................................17

4.1.2 Questionaries..............................................................................................................18

4.1.2.1 Methods used in E-marketing.................................................................................18

4.1.2.2 Issues faced in E-marketing....................................................................................20

4.1.2.3 Factors influencing the Adoption of E-marketing..................................................21

4.1.2.4 Advantages of E-marketing.....................................................................................22

5. Criteria for selection of Small business...........................................................................22

6. Findings of four Case studies..........................................................................................24

6.1 Pentamine CASE STUDY.............................................................................................24

6.2 Eviska CASE STUDY...................................................................................................25

6.3 Fusion Clothing CASE STUDY....................................................................................26

6.4 Pixel Avatar CASE STUDY..........................................................................................27

7. Discussion........................................................................................................................28

8. Conclusion.......................................................................................................................29

9. References.......................................................................................................................32

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B. Abstract:

E-marketing is one of the fastest growing fields in e-business which has the potential to

become a platform for small business firm to compete with big business even though they

don’t have the infrastructure and resource. But as we say that small business firms has a

chance to compete with big players there are several issues and factors which lead a small

business to adopt and ignore e-marketing (Carson et al., 1995). A small business firm can

survive in e-market only if they use their resource carefully and allocate them properly and

monitor the resource (McCole and Ramsey 2004).

This is the method which is adopted to find the methodologies used by the small business

enterprises. The interpretive case study is the method with which we can collect qualitative

data in order to find how a small business enterprise uses e-marketing to attract more

customers and compete with big players (Gilmore, A., D. Gallagher, et al. 2007). These data

is interpreted from individuals who are in the real time situations and get an idea about the

way which they have understood the concept of e-marketing and how effectively

implemented helped the firms to gain customers.

Through this case study we will analyse the interpreted data to find the methods used by

small business firms in e-marketing and what are the factors influence them to adopt e-

marketing. This research will show a clear picture of small business enterprises on how they

are utilizing e-marketing to enhance the performance of their business.

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1. Introduction:

E-marketing is becoming a household name among all industries whether it is a

multinational company or small and medium industries. Everyone wants to utilize e-

marketing technique to enhance their performance. When the e-marketing concept comes into

discussion many have confusion how this entire process works and from where this e-

marketing comes from and what are its features. E-marketing is a process which does not

work on its own it resides inside another process and in other words it is a sub set of the

process called Electronic commerce (McCole and Ramsey 2004).. Electronic commerce is

technique for online transaction and monitoring online payments.

Electronic commerce is also a sub set of electronic business in which both electronic

commerce and electronic marketing resides. Electronic business is the complete process

where the entire online business is controlled. It has two subsets which monitors and controls

certain different process within electronic business (Gohary, H., M. Trueman, et al. 2008).

There seems to be a bit of confusion while representing electronic commerce many seems to

believe that the concept of electronic marketing the internet marketing and email marketing

are all same or similar but in reality electronic marketing is a combination of all kinds of

marketing whether it is internet marketing or email marketing everything comes within

electronic marketing. Internet marketing and email marketing are one of those channels

through which marketing can be done by companies.

Many companies using electronic marketing doesn’t really understand what is actually mean

by E-business, e-commerce and E-marketing and how it can be defines. E-business is an

interactive digital technology which is used to administrate and control the online business of

a firm (Gilmore, A., D. Gallagher, et al. 2007). The term electronic business is generally

referred with electronic commerce and electronic marketing. Electronic commerce can

possibly define as a method in which a firm does its complete business transaction through

secure online network.

Electronic commerce is an improved version of the traditional business practices which was

been taking place for years but provides online marketing and business transactions through

communicating with customers and provide value to customers (Gilmore, A., D. Gallagher, et

al. 2007). There are many different ways in which we can define electronic marketing but in

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simple ways electronic marketing is a combination of both internet and communication which

provides customer with secure online transaction. Electronic marketing a channel which you

can communicate with customers and do marketing in digital technology (McCole and

Ramsey 2004). Comparing to traditional marketing technique electronic marketing provides a

real time communication between customers and companies through an interactive online

website. This gives a cutting edge for a firm in creating a customer relationship management

and a long term supply chain management (Gilmore, A., D. Gallagher, et al. 2007).

There was a general feeling that small and medium business enterprises can never compete

with big business in their marketing strategy and resource as they are capable of spending

more money on marketing which is very tough for small and medium enterprise as they are

not in a position to spend even half of the money which big business has spent. This created a

gap between big business and small and medium enterprises and it gave an impression that

big business can only reach to global customers and small and medium business can attract

only local and regional customers (Carson et al., 1995). There were certain factors which

validated this claim and many big industries felt that only another big industry can be their

competitor and not the small and medium industries.

This concept has entirely changed after the arrival of internet industries were slowly using

internet for their day to day business and it became an integral part of an industry. Internet

made the big business and the small and medium business see through a single window and

was able to reach almost every person on this planet. The arrival of internet in the end of 80s

gave way to the creation of many technology with was embraced by industries. One of the

techniques which internet has provided to the industry is electronic business. It is a process in

which an industry conducts business online. The arrival of this technology changed entirely

the geographic position of both big industries and small and medium industries. Electronic

business provides two different platforms which is electronic commerce and electronic

marketing.

These two platforms kept both big industries and the small and medium industries in the

same category while marketing their product online. The concept e-marketing has given

small and medium business cutting edge than that for big business. As far as big businesses

are concern it is another marketing technique which will be used to market their product all

across the world. But for small and medium industries it created a rare opportunity that it

never thought about it. Electronic marketing gave SMEs to compete with big industries in

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marketing their product across the world. Electronic marketing is a surprise gift for small

business enterprises to engage with big business and to compete with them equally on all

fronts. What electronic marketing has done is that it made every business competitive and

gave chance to everyone in the global market (Carson et al., 1995). This technology has

transformed almost every local and regional business into a global business. It is becoming

obvious that every new business is built with an electronic business concept.

1.1 Motivation:

Electronic marketing has changed the way in which the entire business is conducted in an

industry. The internet has provided industries with innovative ideas which will be new,

attractive and interactive. The critical success factor of electronic marketing has given

interesting insights into both small business enterprises and big industries and the way in

which they conduct their business and reach to their customers. The important aspect of this

research is how electronic marketing has changed and improved the performance of small

and medium enterprises. It’s one of the aspects which is been looked in this research.

To begin with electronic marketing is platform where small and medium business can

compete with big business even though they don’t have the infrastructure or the resource

which big business posses (Dholakia, R. and N. Kshetri 2004). This makes the platform even

more interesting as big business doesn’t want to be left out as it has the potential to enhance

performance and attract new customers towards the companies. Electronic marketing is

becoming a part of almost all the small and medium enterprises. There some enterprises that

start a business with just online website have logistic facility and e-procurement facility. This

shows many enterprises are depending on electronic marketing more than anything

(Dholakia, R. and N. Kshetri 2004). The rise of e-marketing concept is not because it is easy

for small and medium enterprises to adapt this concept it’s because internet is running deep in

to every higher and middle class household and people’s mind set to buy product online and

the trust they keep on online product these are some of the reasons which has influenced

every business in the world to adapt electronic marketing.

1.2 Importance of E-marketing:

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The main motivation behind the research on e-marketing and the way it enhances the

performances of the small and medium enterprises. E-marketing is becoming the critical

point in the success of a company no matter what is the size of a company. But e-marketing

has been very successful among small and medium enterprises than the big enterprises. The

most important about electronic marketing is the rate at which it an improved in a short

period of time (Hamill, J. 1997). Even though internet has been in use for some time the

concept of electronic marketing started to get into shape in 2000s and it has risen to newer

heights every year. Many people started to trust the internet for online purchases and believe

that it is safe and secure to do business over the internet and the product are delivered to their

homes instead people going to shops and buying the products. The important thing is

electronic marketing has made life easy for both customers and the service providers.

E-marketing has not only provided small business opportunities it has also given customers

more choice and different type of products all over the world. In traditional marketing

customers were limited to number of different brands they can choose from but after the

emergence of e-marketing customers were able choose from a wide range of brands and

products all over the world (Hamill, J. 1997). It gave customers more power and made

business more competitive. In order to attract customers and retain the existing customers the

small and medium business were forced to reduce the price to be competitive and got the

suggestions from customers while selling a product online and it created customer

relationship management and made a value for each customer.

The main importance of E-Marketing:

1. The competitiveness of e-marketing to make small and medium business compete

with big players

2. E-marketing gives more option to customers while choosing a product

3. The ability to create brand identity to small and medium business enterprises.

4. The performance of e-marketing in small and medium business within a short span of

time

5. E-marketing has become a key success factor to small and medium enterprises which

do not have infrastructure and resource that of big players

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2. Research Question:

The main objective of this research is to find out how a small and medium enterprise is trying

to implement e-marketing into their organisation and enhancing their performance. As e-

marketing is slowly becoming a global phenomenon there is a lot of questions which has to

be answered regarding electronic marketing as it becomes the source of small and medium

enterprises through which they can compete and have a global business. Even electronic

marketing has the ability to take small business to greater heights with a limited infrastructure

and limited resource there is a real question on how small business is going to use their

limited resource in e-marketing as their options will be limited (McCole and Ramsey 2004).

Even electronic marketing doesn’t require big infrastructure but it needs some infrastructure

to run the entire electronic marketing channel.

Whether small business is outsourcing the electronic marketing to technical consultancies or

they are having their own infrastructure to implement electronic marketing into their

business. There other question is the implementation of electronic marketing as it requires

some previous knowledge regarding electronic marketing. Whether small business has

employees who have enough professional skills to adapt this new technology and implement

this technology and maintain this technology (McCole and Ramsey 2004).

If a small business firm has adopted electronic marketing what are the ways in which they are

utilizing it. Whether electronic marketing is effective in the organisation and what are the

methods which are used to enhance the performance the small business while using electronic

marketing.

E-marketing can be implemented in any small business but the small business has to identify

the techniques which can be used in the specific business as every business is different from

the other for example the marketing technique used by the retail business cannot be the same

for the hardware business as both business are entirely different from the other. This research

will identify how different techniques used in different business. This research will also give

some interesting insight on how far it has reached its customers and how they are engaging

their customers in an interactive technique (McCole and Ramsey 2004). It will also provide

information about how small business enterprises are educating their employees regarding

electronic marketing techniques.

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1. How small business enterprises uses E-marketing to enhance their performance

Sub Questions:

1. A. The methods used by small business enterprises in e-marketing

1. B. What are the factors influencing the adoption of e-marketing in Small business

enterprises

1. C. The ways in which e-marketing has been utilized by a small business enterprise to

expand their business

1. D. How effective the e-marketing for a small business enterprises

1. E. The awareness of e-marketing among employees in small business enterprises

In this research question the main concept is how small business uses electronic marketing to

increase their performance. But to answer this question there many different questions we

need to answer in order to get an idea about this research question. These 5 sub questions

will give an idea about the ways small business enterprises uses electronic marketing.

3. Literature Review:

3.1 Significants of the papers reviewed:

E-marketing is becoming one of the most influential aspects for a business to run efficiently.

It is slowly becoming a platform for small business enterprises to compete with large

enterprises in terms of business with limited infrastructure and resource. But this is not the

case in all the small business enterprises, some of the small business enterprise is reluctant to

enter e-marketing sector as they don’t have proper knowledge in this field. According to

(McCole and Ramsey 2004) small business enterprise uses internet as a mode of

communication rather than using for business transaction and interaction with customers. The

utilization of e-marketing by small business enterprises is increasing rapidly and the

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performance achieved by small business enterprises influences the adoption of e-marketing

by other small enterprises. The small enterprises are classified into three levels according to

the use of e-marketing in their enterprises. The small business enterprise which provides

basic information regarding its products and information related to enterprises comes under

the information level and the enterprises which has a business transaction such as a secure e-

commerce feature comes under transaction level and the enterprise which has a interaction

with customers with its website making customers to identify their own needs and to interact

with experts for what they want comes under the Relational level (Sparkes, A. and B. Thomas

2001).

According to Harridge-March, S. (2004) e-marketing is been portrayed as an evolving

technology and the impact of e-marketing among small business. According to them e-

marketing is still considered as an alien technology as the small business enterprises still

understands the concept of e-marketing and gradually inducting into their enterprises. The

paper concludes that small business enterprises are taking advantage of this new platform as

this provides small business to interact with customers directly which was not possible with

the traditional marketing. E-marketing which provides small business an opportunity to

revive itself and provide a way to compete with large industries.

Gilmore, A., D. Gallagher, et al. (2007) speaks about the involvement of small business

enterprises in e-marketing platform. Majority of the small business enterprises uses e-

marketing but they are implementing certain features of e-marketing rather than completely

adopting e-marketing into their enterprises. This shows that there is a trust deficit among

small business in adopting e-marketing. They also suggest that there is a need to increase

research in this field as there is a bit of confusion prevailing among the small business

enterprises.

These confusions can be erased only by continuous research in this field. The concept of e-

marketing is slowly getting popular among small business even though they are reluctant to

implement they are trying to understand the concept of e-marketing and its impact on the

company. Many small business enterprises are adopting e-marketing following the success

story of many small businesses which used e-marketing to enhance their performance.

According to (Sparkes, A. and B. Thomas 2001) the survey taken among the welsh agro food

SMEs shows how effectively they have internet as a mode of marketing for their success.

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3.1.1 Internet for Marketing:

Internet has become one of the most powerful tools for marketing in this modern age.

Every business feels that internet marketing takes them closer to customers and gain more

customers through online. Every small business is facing a dilemma to whether join this

internet bandwagon but if they didn’t join they are afraid whether they will be left out

(Herbig, P. and Hale, B. 1997). Every industry feels that this platform which hasn’t been

conquered by any industry in their specific field.

According to (Paul, P. 1996) there are approximately 30 million people across 135 countries

send and receive information through internet. There is an upward increase in the usage of

internet by people. It is estimated that at least 100 million people will be using internet by the

beginning of 21st century. It is identified that almost all the small and medium enterprises are

using internet as a mode of communication and they are trying to expand their business into

the virtual world.

There are some primary advantages while using internet marketing. The internet provides

global opportunities for small businesses which don’t have enough resource and

infrastructure to position itself globally. The internet marketing has little restrictions on

companies than while doing business physically. The small companies don’t need to change

its approach culturally and geographically while doing business in other countries.

The next important advantage is that customer gets 24 hour access to the services provided by

the companies and it’s very important while doing business in different countries which has

different time zones. Increasing the trading hours will always attract new potential customers.

Allowing customers to decide what they want and when they want and where will always

increase potential customers and give a tactical business edge over their competitors (Paul, P.

1996).

For a product to reach customers it needs middleman and other people to make the product

reach safely to the customers. But in the case of e-marketing the customers can directly get to

know about the products and its features thus reducing the cost which is spent on middlemen

and other things. This gives companies relatively cheap way of communicating with the

customers. Every business has a specific specialization of products which should be given

special priority. In electronic marketing the company can specify their specialization and

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customer will be able to understand and identify the specific product this will lead to

customers getting idea about both the products and the company. The way of approach may

be simple but the future impacts will be huge through electronic marketing. When it comes to

money transaction people will know how this transaction is taking place as these transactions

are occurring in a transparent environment. The customer gets an idea about how the

transaction is taking place and feels secure about the transaction (Dholakia, R. and N. Kshetri

2004).

Electronic marketing concept is pretty different than what people think about it. When the

concept internet marketing first appeared people though that this type of marketing is just a

add on but the real marketing way is the traditional marketing techniques. This has been

proved wrong over the years. Small and medium industries started to use this type of

technique as their main source of marketing and were able to be successful in their approach.

This concept was first quickly adapted by big industries as they didn’t want to miss out on

another platform as they want to lead in all marketing platforms. But the truth was revealed

over the years is that this marketing technique is very useful for small business than the big

business. Over the years internet marketing has been used as a powerful tool to market other

than the traditional one. There some different ways in which a company can market in the

internet. When you dig deep into internet marketing the concept seems to be simple as it is

also cost effective than the other traditional way of marketing(McCole and Ramsey 2004). A

small business can actively use internet marketing by marketing in search engines over the

internet (For e.g. Google ads) affiliate marketing is another technique which is actively used.

These are some of the technique which is actively used and can expect positive results.

Even though internet marketing is the future of many developing and developed industries

across the world there are certain limitations while using internet marketing. The internet was

designed specifically for the free flow of information; hence internet security was not a big

problem and the security features were not considered at the beginning. The security is one of

the main features which a customer considers while doing online transaction (Kula, V. and E.

Tatoglu 2003). Though companies market over the internet it’s very difficult to identify who

is a potential customer and who is not a potential customer. While marketing through internet

the company has lot of techniques to identify how many customers have visited the page and

how long they have stayed in the website but it is very hard to come to a conclusion that not

all visitors will lead to business.

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The other issue faced by the company is that not all the customers will be using online to buy

their products. Internet is making remarkable strides in the world still people are reluctant to

use internet for product purchase and online money transaction. Companies are trying their

best to convince customers in using internet for their online transaction still there is a limited

set of users who use internet for online transaction. The other issue is the complexity of the

internet transaction (Kula, V. and E. Tatoglu 2003). Many companies makes their website so

complicated that customers are unable to find the information they want. This makes

customer confused and they have to dig deep in the website to get the desire information.

3.1.3 Small Business in Marketing:

When it comes to marketing small business always lagging behind as they don’t have enough

resource to accommodate marketing into their budget as their finance is not as powerful as

the finance of a big business. 21st century came as a boom for small business enterprises as

the new technology internet came into effect and through internet there were many

technologies started developing (Jones, C., R. Hecker, et al. 2003). Small businesses were

never committed to marketing at any point of their business. The small business used some of

the traditional marketing technique which was useful for small business. There was a general

division between big business and small business. This is because the resource which big

business possessed was relatively very huge than the resource of small business. This gave

them unconditional authority on worldwide business expansion. But on the other site the

usage of traditional marketing mage small business compete with only local and regional

business.

This was a major difference between small business and big business. Small business with

its traditional methods never thought it can ever compete with big business globally. This was

achieved after the emergence of internet and concepts started flourishing and the new concept

called e-business came into effect. Through e-business the technique called e-marketing came

up (Jones, C., R. Hecker, et al. 2003). The concept was very new even to big business but

after certain time some business started to adapt the technique but eventually this technique is

more suitable for small business rather than big business. A small industry without any

infrastructure can compete with the entire world and made this platform independent and the

monopoly in marketing faded away.

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4. Methodology:

The objective of this research is to find out whether electronic marketing is useful for small

business enterprises and electronic marketing is enhancing the performance of the small

business enterprises. Electronic marketing in small business and big business is very different

as both are very different in their business approach (poon and swatman 1997). This research

will identify the key areas of electronic marketing techniques which are implemented in small

business and how successful these techniques enhance the performance of the small business

enterprises. This research will be done through a case study which will be conducted on the

small business enterprises.

This will give an actual picture on how small business implement electronic marketing in

their firms and enhance their performances. This case study will give an actual picture on

where small business enterprises stand when competing with big business using electronic

marketing technique. There were some types of case study which was looked into through

which we can get valuable data which will be used for analysing the performance of small

business enterprises (poon and swatman 1997). First proposed idea was getting data from

government agency like department for small and medium business where the data regarding

small business enterprises are kept, but those data’s which are gathered will not reflect the

actual face of the enterprise as these data’s would have been gathered by people who is not

actually working inside the small business enterprises so the data will fail to reflect the actual

position of the small business enterprises where it stands on electronic marketing.

So there is a another way of studying the position of small business enterprises from within

itself as it will give a clear picture of how electronic marketing is working and what are the

key areas of electronic marketing in a small business enterprise to develop and how much it

has enhanced the performance of a small business enterprise. That is called the interpreted

case study.

4.1 Interpreted CASE STUDY:

This case study is a way in which we can analyse the current situation in respect to a specific

field through interpreting from people who are actually in the situation (poon and swatman

1997). This gives a real time data regarding the implementation and performance of

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electronic marketing in small business enterprises. This interpreted case study is the best way

to find out how the small business is moving in e-marketing. Generally e-marketing is a

concept which has many different definitions as many academicians and professionals have

given their own views so it is hard to identify the concept of e-marketing. But with

interpreted case study we can understand how small business enterprises have understood the

concept of e-marketing. This will give a general idea about what are the ways they are

implementing and in what ways e-marketing has been utilized in small business whether the

desired performance is achieved and if they haven’t achieved what are ways and techniques

every small business is using to enhance the performance of e-marketing in their business.

Interpreted case study is being used by many researchers as it gives a precise set of data

which the researchers can rely on it as this data is collected from people who are actually in

the situation. In the case of small business enterprises using electronic marketing this

interpreted case study will give a exact view of e-marketing within the firm as this research

will interpret with the employees of the small business enterprises and find out how e-

marketing is utilized in their organisation and how it is used to enhance the business (poon

and swatman 1997). This interpreted case study will be conducted through collecting

qualitative data collection method. In order to achieve the desire result through qualitative

this is a process by which as set of questionnaires will be given to the employees working in

the small business enterprise and their response will be recorded and interpreted accordingly.

For this interpreted case study a set of four small business enterprises were identified from

India and the people working in those four small businesses will be interpreted.

4.1.1 Qualitative DATA Method:

This is a process to collect data from individuals who are in the real time situation related

either in the implementation or maintaining a specific process in this case the people involved

in implementation and maintenance of electronic marketing in small business enterprises.

This qualitative data method will give an actual picture on how small business enterprises

using electronic marketing as a tool to enhance their business and can compete in world

market through a single window which makes them equally competitive in the world stage as

that of the position which is enjoyed by big business players (poon and swatman 1997).

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Qualitative data method is a set of questions which is given to the people working in small

business enterprises. In this research we gave a set of 13 questions to each small business

enterprises and asked the person responsible for implementation and maintenance of e-

marketing to provide us with views of the firms understanding of the concept of e-marketing.

The questionaries also covers a broad set of aspects keeping in the mind that these questions

should cover the entire concept of electronic marketing and it should also speak about why

small business enterprise started to involve in e-marketing and how they have used it and

utilized it if they have utilized electronic marketing, to which extent they have utilized what

result they have got whether it’s encouraging for their business perspective and whether they

need any more techniques.

These questions will also try to answer the future prospects of electronic marketing with

those small business enterprises. There are certain questions which needs to be answered like

if the performance is not encouraging what kind of efforts are taken by the small business

enterprises to enhance their performance (poon and swatman 1997). To get a clear picture we

done this case study with four different types of business as every product cannot be

marketed in the same way. Each product has to be marketed in a different way Example:

marketing books, novels and stories is way different than marketing mobile phones over the

internet. This is the reason behind in choosing four different enterprises as they have different

marketing techniques and not all the electronic marketing technique can be used by every

enterprise as it will not be feasible so every enterprise uses certain techniques these thing will

be analysed.

4.1.2 Questionaries:

Even though there are 13 questions in this interpreted case study these 13 questions can be

classified into four set of groups. These groups will show the clear picture of electronic

marketing in small business enterprises.

4.1.2.1 Methods used in E-marketing:

The first four questions based on the methods which are used by the small business

enterprises. These questions will give a brief idea about what are the traditional marketing

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methods which were used by small business enterprises and what are the steps taken by small

business enterprises to implement electronic marketing in their enterprises and what are the

general marketing methods used.

First the case study discuss about the initial level of marketing which is having a active

website which is being updated and kept active all the time. Even though every small

business has a website just by default doesn’t make it entry into e-marketing facility. Every

small business enterprise looks at their website differently it’s because not every business

uses its website efficiently, many business uses it as information board where they will post

their product features and expects their customer to view it, but in many case the amount of

viewers is less.

On other cases the small business uses their website as a portal to interact with customers

these differences will make a huge difference in e-marketing. The second questions based on

these views of the small business enterprises. The third question deals with the types of

traditional marketing which small business used in the past as it is a driving force for a small

business enterprise to migrate to e-marketing. This question will give an idea about how

serious a small business enterprise is when coming to marketing. This will prove the

understanding of basic marketing techniques by small business enterprises.

The other question is that the implementation of e-marketing tool as this is a important

question by all means because a small business which has a successful traditional marketing

practice will be in dilemma whether to move on with modern e-marketing techniques but if

didn’t embrace the e-marketing there will be a question among the business enterprise

whether it will be left out of this modern technique. This is important step for a small

business enterprise to take because they cannot afford to spend money which will not give

any result. Even though there is a list of companies which has tasted success in e-marketing

it’s still hard for a small business to take. But on the other case where a small business which

is not very successful in traditional marketing will have to think twice whether to enter e-

marketing sector because as it is already lost money and whether it is brave enough to take a

decision of this kind these are the aspects which will be looked in. The next question will be

based on the understanding of the concept. If a small business can able adapt e-marketing into

its fold whether it has enough ideas to market its product in e-marketing as I said before

marketing every product is different. So it’s important for a business to identify the key area

where it can focus on marketing those areas for its benefit.

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4.1.2.2 Issues Faced in E-marketing:

Small business has an excellent platform from which they can launch their product globally.

But there are limitations on every path as it is a small business enterprises there are bound to

have limitations or issues which they will face while both implementing and maintaining an

e-marketing network. This set of questions will provide exact information regarding the

issues faced by small business. The first will be based on the challenges faced by small

business enterprises while marketing.

This will give an idea about the issues faced by small business enterprises while marketing

both in traditional marketing and e-marketing as both marketing will be very hard for a small

business to adapt with. The concept of both types of marketing is same and it would be easy

to compare and identify which is the major stumbling block for a small business enterprise to

market in a specific technique. The e-marketing sector is wide open and it has more

competitors that the traditional one but the enhancement of technique from a traditional

marketing and it is derived from it.

So it will be very easy for a small business enterprise to know its limitations and the issues

which it will face while implementing e-marketing. Online has given equal chances to both

big business and small business but there is a limitation for small business as there are places

and situation where it has limitations beyond which it cannot operate. In e-marketing there

are different techniques and tools and each tool should be handled carefully and every small

business cannot operate every tool so it has to pick the appropriate tool that will help to

enhance the performance of the small business. This is the biggest challenge for a small

business to pick an appropriate tool for marketing. If they choose a wrong tool for marketing

they will eventually fail so it is a major issue to be considered. The next question will cover

the main issue of infrastructure development. Even though e-marketing required minimal

infrastructure yet it needs some infrastructure like setting up a server to constantly maintain

the website as this is the key for marketing as this issue is also important the question will try

to address this issue.

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4.1.2.3 Factors influencing the Adoption of E-marketing:

The third set of questions will address a key issue which is why small business is using e-

marketing. For a business to adapt a new technique or a new method into its firm will require

some driving force or certain factors which will lead the company in to the path of embracing

it. For big business adopting a new strategy is a matter of time as they have enough resource

and force to adopt it because even the strategy doesn’t properly fit into the business network

the big business can afford to remove it from its fold as it doesn’t hurt financially but for a

small business to embrace a certain strategy it requires a driving force to lead it into e-

marketing fold this will be discussed in the question.

The question also focuses on the aspects e-marketing which it found suitable for its business.

These include whether its competitors adapted it or whether it saw a great potential in this

field and if the enterprise embraces e-marketing it can achieve a phenomenal growth in its

financial aspect. Factor is an important tool in deciding the course of a business as this will

prove how they approach their business and whether they are learning their lesson quickly

because a business can attract more customers on first come first serve basis. Whoever is in

the market at right time and deliver the product at right time will have more customers as

customer expects quick processing and delivery of goods. This is one of the main factors

which will be crucial for a successful business.

4.1.2.4 Advantages of E-marketing:

The last set of questionaries will look into the benefits which small business enterprises have

got from the implementation of e-marketing into its business. These benefits will include a

variety of sets such as how much percentage of business it has achieved through e-marketing

than its previous traditional marketing. In what ways these prospective businesses which it

has achieved will sustain as a permanent set of customers. Whether this increase is a short

time increase or whether it is a permanent set of increase. The questions also include what

experience it has got by implementing a certain strategy in e-marketing and whether the small

business enterprise will be influenced by this to implement few more e-marketing strategies

into its business.

This also includes whether the expansion cost is bearable. It also try to answer certain

questions like how much prospective leads it has generated every month and how much of

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the prospective lead were converted into actual business and if those business were one time

business or they were satisfied and started to come again. These are some of the aspects

which the questions will be covering to get a clear picture about how this e-marketing has

influenced small business.

These are the four set of questions which will be used to interpret data from small business

enterprise to get information which will be suitable for the case study. To understand the

concept of e-marketing which is being used in small business enterprises these four set of

questionaries are very useful as these questions will give a deep understanding of the concept

of e-marketing.

5. Criteria for selection of small business:

To conduct the interpreted case study four small business enterprises were identified in order

to conduct the case study. These four small business enterprises were identified by certain

criteria. First the selection of these four small business enterprises were according to the level

of e-marketing they have which is more important for this case study. According to fulfil the

basic criteria First two of the small business will be selected in a way which these two small

business will be in information level which is the first level in e-marketing section (Sparkes,

A. and B. Thomas 2001).

The next one will have both the informational level and transactional level. That would give

an idea about how two different levels are managed by the small business enterprises. The

fourth small business will have all the three levels of e-marketing which is the information

level, transaction level and the relation level. There are two different types of small business

enterprises. The two different types are classified based on the countries which they are

located. The first would be in developed countries and the second one is located in

developing countries. I choose to conduct my case study from a developing nation because of

certain criteria (Sparkes, A. and B. Thomas 2001). The country I choose to conduct my case

study is India. As I myself coming from India the concept of e-marketing is relatively new to

this country. I just want to know how this concept is working and how it impacts a

developing economy.

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1. The country is developing so as the industries, This gives equal opportunity for all

industry

2. Developing nation focus on small and medium industries for their economy to grow

3. Industrial policy and financial burden on the small business will be less

4. Small business has an opportunity to flourish in the market as the market is

developing and can attract more customers.

5. The cost of establishing and maintaining a small business is relatively easy.

Even though the developing nation posses certain limitations like lack of infrastructure and

the concept of e-marketing is new to the customers and even for certain small business

enterprises its relatively new as small industries are developing in a developing nation. The

concept of this case study is to understand how e-marketing is utilized in a business to

enhance the performance from the grass root level. Even though developed nations have

some advantage like they have given small industries a special place in their economy and the

infrastructure is developed. But it is easy to conduct a case study in a developed nation as the

data which will be collected through case study can be predicted in this case of developed

nation. This is the difference between a developed nation and a developing nation as the

results in developing nation would be unpredictable.

The four small business enterprises

1. Pentamine Technologies

Provides R&D solution in the field of Information Technology

2. Eviska Infotech private limited

Provides security and surveillance system

3. Pixel Avatar

Graphic and design solution

4. Fusion clothing

Online Garment industry

These four small business industries are very different from each other but the criteria in

which they are selected is the same as all the four small industries have started to flourish in

the market and trying to place them internationally through e-marketing and even if all four

are in different levels of e-marketing they are learning the concept of e-marketing and they

are trying to do the basics properly in e-marketing.

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6. Findings of four CASE STUDIES:

The findings of all four interpreted case study will be written according to their levels of e-

marketing they are placed. These findings will be written based on the four set of aspects

which has been explained earlier.

6.1 Pentamine CASE STUDY:

The pentamine case study which comes under the information level of e-marketing. This

small business has started to give online Research and development solutions in the field of

information technology. As it is a online solution it has a website to start with but until now

they have seen their website as a first level of communication medium where it can contact

its customers. They are considering implementing e-marketing technique in their small

business enterprise but they are keeping their option open and e-marketing is still in

discussion.

One of the traditional marketing practices which they are using is the old technique

referencing. They are generating business only through referencing until now. They also do

SMS and mail campaign occasionally but as far as they are concern some of the prospective

leads through this campaign have turned into real business. The current strategy the company

is doing is keeping their website active and making it search engine friendly. As they see a

great deal of potential in e-marketing tools which can enhance their performance in online.

Since this small business is in the technology domain they are aware of the changing

marketing aspects as they can understand the concept very quickly. But the major issue they

are facing is even though they have a website to start with they are not equipped to utilize

them. They are looking for a consultancy for initial ideas for the successful implementation

of e-marketing. The current e-marketing tool they are trying to implement is the Google ad

words.

They are totally depending on e-marketing tool s as they want go global this is the only

option they have and want to use to the best possible extent. As far as they are concern all the

technological support they need are available with them but they have no idea where to

proceed with. They haven’t seen anything yet as they haven’t don’t anything useful in e-

marketing. Their main challenge is the guidance is required as all the technological aspect is

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with them but marketing activities they have no idea how it can be marketed online. They are

ready to allocate their entire marketing budget to e-marketing but they don’t have proper

guidance on how to implement the budget.

6.2 Eviska CASE STUDY:

This is another small business which falls under the information level category. According to

them the major challenge they face in online marketing is the word of their brand and about

them on how can they spread is their biggest challenge. They do have an information level

website. Until now they have seen their website as a marketing tool but lately they started to

think about their expansion of their marketing structure to e-marketing. The concept of cold

calling is a traditional marketing which they are following until now as their representatives

meet their prospective clients and explain about their products. But until now they haven’t

considered e-marketing as an option but lately they started expanding their options and

started discussing about the induction of e-marketing into their fold.

The major problem for them is the way they need to promote their product online. The small

industry still doesn’t have an idea on how it should promote its product online. This is major

factor which will decide on where it stands in e-marketing and how e-marketing concept has

been understood. They just stated to look into e-marketing by optimizing their website for

search engine friendly. But as far as they are concern they definitely see e-marketing as a

potential future option. They don’t have their own infrastructure for website maintenance as

they have their website vendor for providing basic ideas and infrastructure support for

building e-marketing.

The optimization of their search engine has been effective until now as they have already

started seeing increase in traffic towards our website. They have seen a 20 increase in the

number of online enquiries. The major hurdle they face in e-marketing is the concept is new

to them and they rely completely on their consultancy to provide necessary information

regarding the website. According to them employing e-marketing in the right way can only

fetch desirable results and any implementation without proper analysis or understanding can

only result in unnecessary spending. So they are implementing the concept quickly as they

are learning step by step and implementing. They are ready to allocate 80% of their

marketing spending on e-marketing only if they understood and identify the right e-marketing

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tool. Initially they are expecting at least 10 prospective leads every month through e-

marketing.

6.3 Fusion Clothing CASE STUDY:

The fusion clothing is a small online garment business which falls under the second level of

e-marketing category which has both information and transaction level. For this small

business enterprise their main challenge is that the product which they are selling online as it

is a garment industry and it is made of organic components it very hard for them to get the

word out as this is their only business cycle and as a small player they do not have enough

resource to spend on marketing.

Their challenge is that they need to make people aware of their product and make them try

once is the challenge as it will give a continuous cycle of potential customers. They have two

types of website one is a corporate website and another one is a secure e-commerce website

for selling. They have their corporate website for updating their information about their

company and management. The e-commerce website is the main area where all the business

activity takes place. According to them through this website they try to engage the customers

and influence them to buy the product.

The different marketing activity they were doing was direct emailing, participating in

exhibitions and sponsor t-shirts. As this is an online trading company they are entirely

dependent on e-marketing tools. They have the website and a e-commerce website to start

with but the main problem for them is that they don’t know which method will work and

which method will not work as the people they have consulted has given their own opinion

instead of the standard set of e-marketing. This is creating confusion on whether which e-

marketing tool should be used.

The current e-marketing tool which is operated in this small business enterprise is PPC

advertising, display ads, Social media, affiliate marketing, product marketing and search

engine optimization. They have the general idea about e-marketing and their performances

but they are confused which one is the right mix in e-marketing. The infrastructure is starting

to build up as they have a full fledged website and recently they have roped in a website

development company to support e-marketing activities. According to them e-marketing is

good but they felt that they haven’t utilized to the fullest. Their entire sales cycle depends on

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this e-marketing website so they are ready to allocate their entire marketing money if they

find the right mix of strategy in e-marketing.

6.4 Pixel Avatar CASE STUDY:

Pixel has all three levels of e-marketing techniques. It is an online graphic and design

solutions business enterprise. Their main challenge is that this e-marketing is an unorganized

sector as this is a design solution it is very hard to explain to a prospective customer the

difference between a professional designs with that of a freelance designer. The other

challenge is the success which depends on the value which customer associates to the pricing

that we offer and which is always on the higher side as compared to freelancers. They have a

website which has information, transaction and relation levels. They see their website as a

real marketing tool.

The website is designed interactively in such a way that it will walk through the customers

about their packages and portfolio. The website also has an online quote generation system

incorporated within so that the customer can directly generate the quote for their

requirements. They are trying to place themself as an online design agency. They are

developing their website to handle project management and the entire design process. The

different marketing techniques they have used so far are email campaigns, participation in

exhibitions, direct mailers and SMS campaigns. As they are already into e-marketing they

have a pretty good idea about the marketing tools which are available.

The internet promotion of their product is done by their parent company so they have a pretty

good knowledge about how to promote products online. The current e-marketing tools they

are using are search engine optimization, search engine marketing, display advertising, social

media optimization and micro blogging. Through these kinds of constant updating and

changing e-marketing tools and techniques they have seen amazing generation of leads

through internet marketing. The leads generated are nearly 70%.

The main challenge they face in e-marketing is that they completely rely on their parent

company for their e-marketing technique so it’s very hard for them to take a decision of their

own as they were acting according to what their parent company said. So until they are able

to keep their own foot in e-marketing they are going to study e-marketing and e-marketing

tools. The marketing budget is an area where they are ready to allocate the entire money to e-

marketing as they have positioned themself as an online design agency.

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7. Discussion:

The above case studies of the four small business enterprises have shown different views on

different set of aspects. According to the case study there are very contrasting answers which

were given by every small business enterprises has to be verified carefully. The first

discussion point is that the geographic position of these industries as all the industries is

situated in India which is a developing nation and the concept of e-marketing is evolving in

India and the concept is not fully understood by everyone like the developed nation have

done.

The main similarity between all the four small business enterprises is that they have a good

structured website to start with. The other thing which has to be looked at is the way of

approach they are taking while migrating into e-marketing it is a cautious approach by all

four small businesses. Even though they have sound knowledge about e-marketing and its

benefits for small business enterprises because there is no set of standards which are in place

for e-marketing unlike the traditional marketing every business knows what traditional

marketing is and how to achieve performance in traditional marketing.

The challenges faced by all four small business enterprises are similar as all the small

business enterprises are confused on what type of marketing will benefit and what does not

benefit. But in the case of pentamine technology and eviska infotech which both are in same

information level haven’t implemented e-marketing technique in their business but they are

discussing the implementation of e-marketing. This is because of the confusion prevailing

among the small business whether to embrace this new technology or wait until it gets into a

shape in the market. This is because they are unsure whether they will benefit and small

business according to their case study has said they cannot afford a trial run method as their

budget cannot cover it.

But in the case of fusion clothing and pixel avatar where both are also in the same confusion

but in a different perspective as these two have embraced e-marketing into their fold but they

don’t know which tool is best and which tool is not best this gives a idea that all are in same

point of confusion with different angles. It’s all because there is no standard for measuring

the how e-marketing works.

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The next is the infrastructure which is a significant one by all means as e-marketing needs a

secure e-commerce website to start with and need a logistic support. As all four small

businesses are looking for a website consultant where as fusion clothing as already signed a

contract with a website development company and pixel avatar has parent company for its

website maintenance.

The different e-marketing tools used by every small business is not same where as in the two

information level companies they implemented any tool but still following the old tradition

way of marketing. But the other two small businesses such as fusion clothing and pixel avatar

have used pretty much the same type of tools such as the search engine optimization, social

media or micro blogging, affiliate marketing. And display ads as these are some of the known

e-marketing tools which were been used by the two small business. They have got good

response but according to their strategy they are still reluctant to involve completely into this

technology. Still they have no idea about which is the right mix in e-marketing strategy.

When speaking about the budget allocation pixel avatar and fusion clothing as already started

to allocate money to e-marketing because of their entry into the initial level of marketing but

they will eventually allocate their entire marketing money if they found the right mix of e-

marketing tool that fit into their business. Even though pentamine haven’t allocated any

money for e-marketing it will also spend money on e-marketing if they find the right type of

technology as pentamine as positioned itself as a online solution company. But in the case of

eviska infortech it doesn’t need to spend on e-marketing as it has a in stores shop and it has

invested in traditional marketing.

These are some of the discussion points which show the current position of the small business

enterprises. Further case study needs to be done to compare two different small businesses in

two different countries. These discussions will eventually leads to more research on this field.

8. Conclusion:

E-marketing as a concept it is very strong and it has the capacity to bring small business

enterprise equal to big business in terms of competition even though small business lacks the

required infrastructure and resource to compete with big business. As discussed in my

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research question the core question of my research can be answered only if those five sub

questions were answered.

The methods used by small business are pretty simple for eg the affiliate marketing and

search engine optimization are some of the tools which are successfully used in a small

business. These tools are being used by many small businesses but each small business

required the right mix of tools in order to obtain maximum result. As this concept is a

relatively new concept it will take time to understand the right strategy. But initial result of

the small business shows that they seen a improvement in their performance.

The factors which are influencing the adoption of e-marketing is relatively very confusing for

a small business as these four small business are in a dilemma whether to fully embrace the

concept of e-marketing. But studies shows that the small business are adapting because they

see this has got potential in yielding rich benefit for the small business enterprise. The four

small business are slowly adopting the concept of e-marketing

The effectiveness of e-marketing has been proved in this study as the two small business

enterprise such as pixel avatar and fusion clothing has see a increase in internet traffic and

has gained more leads through prospective customers and majority of the customers have

become a permanent customers

The awareness among the employees about the e-marketing are pretty much high as they see

this has got great potential in the future and every small business in this case study wants to

adopt the concept of e-marketing fully in near future. The concept of e-marketing has well

reached in the developing nations like India and china where the economy is booming. The

concept of e-marketing once only heard in developed nations has reached even developing

nation which has a pretty big market for the small business to embrace and adapt e-marketing

into every small business enterprise in developing nation.

The conclusion of this case study regarding whether e-marketing enhance the performance of

small business enterprise. The conducted case study validates the claim that the small

business enterprise such as pixel avatar and fusion clothing which has adopted e-marketing

and implemented major part of e-marketing in his small business has seen some considerable

increase in the performance that the small business such as pentamine technologies and

eviska infotech which is planning to implement e-marketing. E-marketing is a growing field

and the small business which acquires it will be maximum gainer as that of pixel avatar and

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fusion clothing which used e-marketing to enhance its performance. The more lately you start

the more slowly you will adapt e-marketing and you will stand to lose most of the customers

permanently. Adapt e-marketing into you business and enhance the performance of the small

business enterprise.

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