The Effect of Using E-Marketing in SME Marketing Success

Transcription

1 The Effect of Using E-Marketing in SME Marketing Success Mahrokh mokhtaran Assistant professor Manager of Department of management and accounting of Islamic Azad University, Firoozkooh FatemehSadat haghdoust gilani Department of management and accounting Islamic AZAD University, Firoozkooh Branch, IRAN Abstract The aims of this study, "Effect of marketing for small business marketing success (Plastic industry manufacturers in Tehran)", is survey effect of electronic marketing for the small business marketing success and develop and test a conceptual model of the antecedents and consequences of the use of electronic marketing by them. This study in term of purpose is empirical and the nature of data gathering is descriptive. For this purpose, library studies (written books, articles and international scientific journals, thesis and Internet) and field studies (questionnaire) were used. The conceptual framework is consisting of structural funds of electronic marketing, electronic marketing tools, pre-sales activities, post-activities sales, marketing performance and marketing effectiveness. In addition, 12 hypotheses was introduced and tested. Data gathering confirmed with designed questionnaire, consist of 28 questions, and sending it to 1015 plastic industry manufacturers with and personal referral. Data analysis is confirmed with statistical software SPSS 18.0, Amos21 and Lzrel 8.5 and hypothesis of this study was stabled. The findings shows that the use of electronic marketing tools have a positive impact on the pre activities sales, post activities sales and marketing performance and marketing effectiveness. The results of this study have important concepts for the field of marketing as the key role of the marketing staff in the successful implementation of electronic marketing for small business firms stressed. Keywords: electronic marketing, small business, marketing performance, marketing effectiveness 1- Literature review - E-Marketing One merit of the Internet is that it provides an efficient means for increasing companies marketing activities. However, attention should be paid to the effectiveness of the Internet in relation to an organization s achievement of short- and long-term goals, its recognition of strategic shareholders (including customers, managers, proprietors) and the satisfaction of their desires (A. Sharma, J.N. Sheth, 2004). In addition, e- marketing effectiveness consists of an increase in eloyalty, an increase in sales and an increase in customer attraction (J. Oh, S. Fiorito, S. Cho, H.C.F. Hofacker, 2008). With regards to the importance of increasing the number of customers and becoming more customer-oriented in a market environment, customers are very important strategic shareholders for companies, and marketing efforts need to satisfy the customers. In this study, effective e-marketing relates to the ability of a company website to meet the demands and needs of managers from a marketing point of view. Online buying and ordering is currently popular among buyers and companies. For marketing activities to be effective, companies should use different methods to satisfy customers to increase the numbers of products sold in the e-marketing environment (S.L. Huang, F. Lin, 2007). Building a long-term relationship with customers is based on customer loyalty, and the Internet environment and e- marketing represents an inexpensive way to build these relationships (H.H. Chang, S.W. Chen, 2008). In this context, the real situation of e-marketing will be seen through an on-line survey that has been supplied to retailers of Spain for their completion and four in depth interviews. After analyzing the state, enriched technical solutions through the Web Usage Mining process will be proposed and linked to new discovered e-marketing trends. Finally, a few commercial and open source solutions that can help in the creation of concrete solutions for these new e-marketing trends will be displayed. 8

2 - Small medium enterprises (SMEs) Small medium enterprises (SMEs) are recognized as one of the main contributors to economic, development and employment growth. Despite it play a major role in today s world economy, SMEs is well known having limitation and acceptance barriers in adopting a new technology although the revolution of internet and communication channel has changed the way people conduct business today. Large-sized and small and medium-sized companies use more and more different kinds of alternative ways of marketing communication. Experiential marketing has become part of corporate marketing strategy especially of large-sized companies. Experiential marketing is defined as a process of identifying, satisfying customer needs and aspirations, profitably, by engaging them through two-way communications that bring brand personalities to life and add value to the target audience (Smilansky, 2009). Next, Smilansky added that experiential marketing is an integrated methodology and its marketing campaign is built around one big idea involving two-way communication between the target audience and the brand, therefore creates its core, a live brand experience. Alternative types of customer experiences are mentioned in Schmitt (1999) and Alkilani, Ling, Abzakh (2013) researches where the authors use this approach to create a concept of strategic experiential modules. These experiential modules managed by the experiential marketing include: sensory experiences (sense); affective experiences (feel); creative cognitive experiences (think); physical experiences, behaviors and lifestyles (act) and social identity experiences that result from relating to a reference group or culture (relate). The factors affecting SMEs business success were classified into the following categories: (1) entrepreneur characteristics, (2) characteristics of SME, (3) management and know-how (4) products and services (5) customers and markets, (6) the way of doing business and cooperation, (7) resources and finance (8) strategy, (9) external environment, and (10) internet. Despite various researches regarding the success factors of SMEs there are numerous studies investigating the business failure and a number of theories and thoughts on what constitutes a failed business (Ihua, 2009, 200). The most significant contributing factors to failure among SMEs can be summarized as follows; lack of managerial expertise, poor management and management inability (Shah et al,mundim et al, 2000, Ihua,2009), inadequate staff and learning failures, quality failures, institutional weakness (Gonzales,2009), shortage of resources (Chak, 1998), inadequate capital/poor economic conditions (Shah, et al; Ihua,2009, Franco and Haase, 2010), lack of institutional support, as well as co-operation and networking (Franco and Haase,2010), lack of technical competencies (Mundim et al, 2000). 2- Research methodology The studies examined the characteristics of E-marketing, for a better understanding of these conditions and provide ways to increase SME Marketing Success, are descriptive - survey. Moreover, since this study was conducted in a dynamic organization and the practical results can be used to solve administrative issues, was applied research. Research questions have been Describe to determine the impact of E-Marketing on SME Marketing Success. In this study, a survey conducted for the study of the characteristics of E-Marketing in. So, scrolling through the library documents and websites on the Internet is done randomly. Statistical population this research IRAN industries 1550 employees in Tehran province, The sample was randomly selected from lists of employees who were selected by sweepstakes. Data gathered in the research was used questionnaire, survey questions that variable based on model research and previous studies and theoretical frameworks have been developed to determine the desirable indicators related to E-Marketing and SME Marketing Success questionnaire. E-marketing questionnaire consists of 28 items have been formed with 6 items, that include 5-point Likert scale from strongly disagree, disagree, agree idea, is strongly agree. In this research, Cronbach's alpha was used to evaluate the reliability of this questionnaire which results in Table 3. 9

3 Table 1: Cronbach's alpha result Research variables E-marketing budget E-marketing method Presale activity After sale activity Marketing performance Marketing efficiency TOTAL Cronbach's alpha 0/774 0/729 0/804 0/891 0/749 0/775 0/ Results The inferential analysis, pre-test the hypotheses to be tested using confirmatory factor analysis we examine validity. Fitness test, confirmatory analysis and direction indicator RMSEA, or the square root of the variance estimation approximation error less than three and less than eight percent index (GFH, CFL, IFI, NNFI) is higher than 90%. The amount of (T- Value) ratio significantly greater than 2 and less than 2 per variable, the model is a good fit, or a reasonable approximation of the society. In order to analyze the relevant data and choose the kind of test, you first need to check the status of the variables considered normal. Variables used to evaluate the normality test were Kolmogorov-Smirnov test. - Confirmatory factor analysis, independent exogenous variables Figure (2) measurement model independent or exogenous variable in standard estimates show. The estimation results indicate the suitability of its indicators. According to AMOS software output x 2 alculated value is equal to compared to (divide by) less than the number 3 is 62 degrees of freedom. RMSEA value is equal to Limit RMSEA, 0.08 is. Indicators NFI IFI, RFI, NNFI and CFI all over 90/0 calculated that the amount is reasonable and reflects the model. 10

4 Figure 1: Measurement model exogenous variable in the standard estimate 11

5 Figure 2: Model measurements exogenous (independent) in a significant - The main research hypotheses by analyzing the software Amos (structural model) One of the strongest and most appropriate analysis methods in behavioral science research, multivariate analysis. For the multivariate nature of such issues and can not be the way the two variables (each time only one independent variable with the dependent variable is considered to be) solved. Therefore, in this study to confirm or refute hypotheses, structural equation modeling and path analysis were used in particular. Path analysis (structural model) techniques that relationships between variables (independent, intermediate and dependent) shows simultaneously. The purpose of the analysis is to identify causality (impact) between variables is the conceptual model. 12

6 Table 2: Indicators model fitting Accepted value Calculated value Indicators fitting Under Chi.squar/df Under RMSEA Under P.Value Upper 90 % 91-99% IFI,RFI,NNFI, NFI Table 3: significant structural model Result Path coefficient significant Relationship Accept Presale activity <--- E-marketing budget Accept Presale activity <--- E-marketing method Accept After sale activity <--- E-marketing budget Reject After sale activity <--- E-marketing method Reject Marketing performance <--- E-marketing budget Reject Marketing performance <--- E-marketing method Accept Marketing efficiency <--- E-marketing budget Accept Marketing efficiency <--- E-marketing method Accept Marketing performance <--- Presale activity Accept Marketing efficiency <--- After sale activity Accept Marketing performance <--- After sale activity Accept Marketing efficiency <--- Presale activity 13

7 References Alkilani, K., Ling, K. C., & Abzakh, A. A. (2013). The Impact of Experiential Marketing and Customer Satisfaction on Customer Commitment in the World of Social Networks. Asian Social Science, 9(1), Avlonitis, G.J., & Karayanni, D.A. (2000). The impact of internet use on business-to-business marketing: Examples from American and European companies. Industrial Marketing Management, 29(5), A. Sharma, J.N. Sheth, (2004),Web-based marketing: the coming revolution in marketing thought and strategy, Journal of Business Research 54 (7), pp Chak, C. M. (1998). Strategic management for small and medium enterprises. Unpublished Thesis of Doctor of Philosophy, St Clements University, USA. Eid, R., & Trueman, M. (2004). Factors affecting the success of business-tobusiness international Internet marketing (B-to-B IIM): An empirical study of UK companies. Industrial Management & Data Systems, 104(1), Eid, Riyad., and Hatem, El-Gohary. (2013). The Service Industries Journal, 33:1, El-Gohary, H., Trueman, M., & Fukukawa, K. (Ed.). (2008a). E-marketing and small business enterprises: A review of the literature from Institute for Small Business and Entrepreneurship 2008 Conference (ISBE 2008) (Vol. 1(1), pp.1 27). Belfast: Institute for Small Business and Entrepreneurship. Franco,M., and Haase,H. (2010). Failure factors in small and medium-sized enterprises: qualitative study from an attributional perspective Gonzalez, J. H. S. (2009). Assessing Exporting Culture in Colombian SMEs: A Look at The Export Promotion Program. Cuad Adm. Bogota, 22 (39), H.H. Chang, S.W. Chen (2008), The impact of customer interface quality, satisfaction and switching costs on e-loyalty: Internet experience as a moderator, Computers in Human Behavior 24 (6),, pp Ihua, U. B. (2009). SMEs key failure-factors: a comparison between the United Kingdom and Nigeria. Journal of Social Sciences, 18(3), J. Oh, S. Fiorito, S. Cho, H.C.F. Hofacker, (2008), Effects of design factors on store image and expectation of merchandise quality in web-based stores, Journal of Retailing and Consumer Services 15 (4), pp Mundim, A. P. F., Alessandro, R., & Stochetti, A. (2000). SMEs in global market: challenges, opportunities and threats. Brazilian Electronic Journal of Economics, 3(1), S.L. Huang, F. Lin (2007), The design and evaluation of an intelligent sales agent for online persuasion and negotiation, Electronic Research and Applications 6 (3), pp Schmitt, B. (1999). Experiential Marketing: How to Get Customers to Sense, Feel, Think, Act, Relate to Your Company and Brands. New York: The Free Press. Shah, Tasweer Hussain, Saman Javed, and Sadia Syed. Internationalization of SMES in Pakistan: A Brief Theoretical Overview of Controlling Factors. Journal of Managerial Sciences, 7 (2), Smilansky, S. (2009). Experiential marketing: A practical guide to interactive brand experiences. London: Kogan Page. 14