The Effectiveness of Internet Marketing for SMEs

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background of the study1

Overview of internet and SMEs2

Significance of the study3

Research Question3

Statement of the Problem4

Aims and objectives of the study4

Hypothesis for the study5

CHAPTER 2: LITERATURE REVIEW6

Importance of internet in business6

Internet marketing8

Effectiveness of internet marketing9

Internet marketing for SMEs11

Effective strategies used by internet marketing12

Forms of internet marketing14

E-Commerce14

E-business17

Website marketing19

Benefits of internet marketing for SMEs21

REFERENCES23

CHAPTER 1: INTRODUCTION

Background of the study

Over the years, SMEs (businesses with low turnover and profitability) have played a major role in boosting economy of the world. Marketing managers consider internet as an effective marketing tool and an attractive market place which help in enhancing the relationship of the buyers and sellers online. Internet is considered as the effective medium which helps in communicating information between goods and services to the target audience. Numerous studies have been done in this regard which help marketers to identify the new approaches used in developing the strategies for internet marketing and planning. Expansion and involvement of internet from a limited use to non commercial research oriented network by developing websites and HyperText Markup Language (HTML) is having a drastic impact on the consumers and business. The users online have doubled from the four years after the birth of www and it has led to many technological innovations. This potential for internet has helped in the SMEs in improving customer relationships, decreasing costs and increasing sales and in this regard SMEs are increasing their use of internet as a marketing tool (Zhang, Macpherson, Jones, 2006, 299).

The internet has helped in creating cost effective methods which help large and small business for increasing international and domestic sales, enhance customer relations, building customer loyalty and decreasing costs. Using internet as a medium to business solutions also set the stage for the disintermediation which helps in lowering transactions costs, creating new value chains and setting up new business opportunities. It has also helped in the reintermediation by the creation of various intermediaries which facilitate in internet based transactions. Business to business activities refer to adopt the e-commerce strategies which occur between organizations these include supplier management, purchasing and procurement, sales activities, service and support and channel management. Furthermore, business to consumer (B2C) transactions refers to the exchange between the consumers and business and includes the digital and physical products or services which are smaller in comparison to B2B purchases.

Overview of internet and SMEs

SMEs are considered as the significant contributor to the economies in the world and they are economically and socially important as they represent more than 99% of the enterprises present globally. In EU they provide more than 65 million jobs and contribute to innovation and entrepreneurship. SMEs are also considered as significantly important to the regional and economic growth as locally relevant services are produced and increase the employment level. In UK, SMEs also play an important role as they contribute to 99% of enterprises and 59% of the private sector employment. They are also considered as the basis for future innovation and growth through ...