Impacts of E-marketing on Promotion of Samsung galaxy phones in Pakistan
Executive Summary
The research aimed at investigating the impact of e-marketing on promotion of Samsung galaxy phone in Pakistan market. In the introductory section, the problem statement has been clearly defined with the main focus on investigating the impacts of e-marketing on promotion of Samsung galaxy phones. The section has provided the background of the study, the objectives and the importance of this study as well. In addition to herein, a conceptual framework has been provided to help the reader to understanding both independent variables, dependent and intervening variables used to conduct the research. In the methodology chapter, a case study design was employed to provide an in-depth analysis of the impacts of e-marketing in the promotion of Samsung galaxy phones in Pakistan. In this section, a sample was selected from the targeted population using simple random sampling. The limitations of the design were also explained. However, the benefits of this design outweighed its limitations making case study design the most appropriate design for this study. Data was analyzed using regression analysis and spearman correlations. Connectively, simple graphs were also incorporated for the purpose of data presentation. The recommendations were made based on the finding of the research. The research recommends that, the company marketers should continuously observe the customers needs and look for ways through which those needs can be met more efficiently and effectively. This can be achieved through innovation, as well as through research and development. Additionally, the research recommends Sumsung Company to boost the confidence of its customers by developing software that guarantees their privacy.
Contents
Executive Summary 2
Background of the study 5
Impacts of e-marketing on promotion 6
Problem definition 8
Objectives of the Study 8
Importance of the study 9
Conceptual framework 9
Research methodology and justifications 10
Limitations of the study Design 11
Data analysis and Findings 11
Impacts of e-marketing on promotion of Samsung galaxy phones 11
Impact of e-marketing on promotion 13
Influence of e-marketing on promotion of Samsung galaxy phones 13
Conclusion 15
Recommendations 16
Suggestions for further Study 17
Reference List 18
Background of the study
E-marketing refers to use of online methodologies, devices, and strategies to conduct business (Krishnamurthy, 2004). The use of Internet in carrying out business has proved to be the most effective way of promoting brand and conducting business. Many firms have adopted online trading because it provides a wide coverage of customers within a limited time. Some companies have even automated their business in order to embrace the benefits that come with online marketing. E-marketing Mixology is an Internet marketing blog offering practical insight for online merchants and other people who are interested in online marketing. Through this blog, it has become easy for companies to identify customers’ needs and look for ways in which the identified needs can be met effectively (Levinson & Rubin, 1995). This may help to increase customers’ loyalty on the companies’ products thus retaining the existing customers as well as attracting new ones. Also, online marketing provides an opportunity for test marketing and optimization (Needle, 2010). This initiative helps to prevent loses that may accrue to the company as a result of injecting too many products into the market prior to the identification of the customers’ needs. According Chang (2008), Samsung Company overtook Apple Company as the biggest company in the smartphone industry.
Samsung Company was founded in 1969 in Suwon, South Korea as Samsung Electric Industries. Originally, the company manufactured electronic appearances such as televisions, calculators, and air conditioners. In 1970, the company jointly established another subsidiary called Samsung-NEC with Japan, which manufactured audio visual devices. Later on in 1974, the company extended into semi-conductor business by acquiring the Korean Telecommunication an electronic system producer (Pablos, 2011). The company has been undergoing tremendous growth over the years. However, the company has been experiencing some challenges in Pakistan market. Some of those challenges include the problem of creativity and continuous innovation. The major problem arises from the product design, as well as research and development (Michell, 2008). In this respect, before the product is injected into the market, customers’ needs and preferences must be taken into account. Nonetheless, despite these considerations, customers have different preferences. Therefore, lack of a comprehensive and adequate research and development programs may lead to failure in satisfying customers (Michell, 2008).
Impacts of e-marketing on promotion
Through e-marketing, a positive change in the market has been experienced. The use of information technology in creating communication and delivering value to the customers has substantially increased sales and profits of the Samsung Company (Groves & Constant Contact Inc., 2009). This has made the Samsung Company as one of the best selling companies in the market (Pride & Ferrell, 2006). E-marketing has revolutionized trade through innovation and application of new business models that add value to customers. This has resulted in an increased market share of the company and subsequent increase in sales volume (Thomson & Baden-fuller, 2010). Empirical studies show that the explosive growth of the internet has led to the emergence of competitive markets. With perfect information on prices of commodities, consumers quickly and efficiently find the best deals (Richardson, Gosnay & Carroll, 2010).
A wide range of products had now been examined those commodities may include electronic items and even non electronic commodities. Online marketing is quite expensive when examining the cost to reach the targeted customer (Clarke & Flaherty, 2005). However, despite being expensive in the long run, there are a lot of advantages because it reaches the customers within a small period. The cost associated with E-marketing is quite low as compared to the traditional advertisement budgets. Additionally, Internet marketers have an opportunity of taking statistics easily with respect to usage of online marketing by companies (Gray & Zappalà, 2006). This means that marketing campaigns can be traced measured and being tested with ease. Also, marketers can determine the messages that are appealing to the audience. This is because online marketing initiatives require users to click on the advertisement, visit the website page, and perform the intended transactions (Bates, 2006).
The major challenge that is facing online marketing in Pakistan markets and even other e-markets across the globe is the problem of deceptive advertisement. This is where customers end up purchasing wrong commodities from deceptive vendors. Subsequently, this lowers profits of the company (Silverstein, 2002). Additionally, e-marketing makes marketers lose the personal touch with customers. This is because there is no direct, personal interaction between the marketers and the customers. Also, many customers are reluctant to purchase items from the internet because of lack of in formation security. Both companies and consumers who participate in online business fear for their privacy (Wolosz, 1997). This is because customers who may want to buy through the Internet do not believe that their information would remain private. However, many customers are unaware of the privacy infringement (Doherty & Ellis-Chadwick, 2010).
Problem definition
This study focuses on the impact of E-marketing in promoting Samsung galaxy phones in Pakistan Market. Over the years, Pakistan has been facing the problem of embracing the dynamism that comes with new technology. This has posed a big challenge to companies that deal with IT related items such as phones and computers. A good example is the Samsung Company. This company had been facing the problem of limited market share for its products in Pakistan. Additionally, the problem of stiff competition and market penetration for its new products has also been experienced (Shontz, 2007). Therefore, the Samsung Company in Pakistan had adopted online promotion strategy in order to try and overcome the challenges. This research employed a case study design whereby the Samsung Company was selected out of 10 best selling companies using simple random sampling. Secondary data was collected and analyzed using both inferential and descriptive statistics and recommendations pertaining impact of online marketing on promotion of Samsung galaxy phones in Pakistan were made (Haynes, 2002).
Objectives of the Study
The main objective of this study is to investigate the impacts of E-marketing in promoting Samsung galaxy phones in Pakistan. The secondary objectives of this study include the identification of the importance of e-marketing on promotion, as well as to investigate the limitations of e-marketing in promoting Samsung galaxy phones within the Pakistan market.
Importance of the study
The outcomes of the study will help decision makers of the Samsung Company to identify the best marketing strategies. This will help the company in gaining a competitive advantage over the competitors in the Pakistan market. The study would further assist managers in planning and forecasting anticipated changes in the world of business (Palmer, 2010). On the side of academicians and researchers, the study forms a fundamental basis for further research on the appropriate marketing strategies to be adopted depending on the marketing environment.
Conceptual framework
Dependent variables
Independent variable
Sales
Returns
Cost E-marketing
Intervening variables
Political factors
Social factors
Economic factors
Source: Author
Research methodology and justifications
The research design that was employed is the case study. This is because the researcher wanted to get an in-depth understanding of the impact of e-marketing on promotion of Samsung galaxy phones within the Pakistan market. Additionally, a case study provides more comprehensive information than other research designs. This is because it allows the researcher to present the data collected from multiple sources to provide a sharp focus of the study (Kothari, 2005). The Samsung Company was selected out of a target population of 10 best performing electronics companies using simple random sampling. Using simple random sampling was meant to allow participants have equal chances of inclusion. Additionally, the threat of biases and unreliability is substantially reduced since all participants have equal chances of being selected in the study.
The data collected was analyzed statistically. According to Kothari (2005), data analysis is the computation of indices or measures along with searching of pattern of relationship that exist among the data groups. In this study, the data was analyzed both qualitatively and quantitatively. Inferential statistics were employed to analyze the data obtained. Regression analysis was also used to establish the correlation between the impact of e-marketing and promotion of Samsung galaxy phones. Descriptive statistics were used to find out the impact of online marketing on Samsung galaxy brand.
Limitations of the study Design
Despite the advantages, a case study design has some limitations. In this design, the evidence about cause and effect relationship cannot be drawn scientifically through laboratory experiment. Additionally, case studies involve a single case and thus crucial details may be left out. Much of the information collected is retrospective data; hence the information collected is subject to problems inherent to memory (Hague, 2003). However, despite the above limitations, the benefit of using a case study outweighs its limitations. Therefore, a case study has proved to be the most appropriate for this study (Hague, 2003).
Data analysis and Findings
Figure1.Description of the impact of impacts of e-marketing on promotion
Mean 0.49
Minimum 0.02
Maximum 2.03
Range 2.01
Standard Deviation 0.64
Using the ordinary least squares method the above information on e-marketing can be statistically analyzed as follows
Impacts of e-marketing on promotion of Samsung galaxy phones
Influence of e-marketing on promotion
The model Yi =0.605 – 2.9Xi
Where Yi = Promotion efforts
XI=E-marketing
This implies that, for a unit increase in the sale of Samsung galaxy phone as a result of increase promotion effort through e-marketing, the company returns increases by 2.9. When the promotion effort is zero, then the expected returns and sales volume is for Samsung Company is 0.605.
In connection to the above, a spearman correlation analysis was carried out for further analysis whereby the correlation coefficient was +0.138. This indicates a significant, positive correlation between the e-marketing and the promotion efforts.
Figure 2: A plotted graph showing the impact of e-marketing on Returns of the company
Returns
30
20
10
10 20 30 E-marketing
Source: Author
From the above graph, it can be observed that there is a positive linear correlation between e-marketing and returns of the company. For every unit increase in e-marketing, there is a positive change in promotion effort by 10 units. Therefore, there is a resultant positive change in returns of the company by 10 units too.
Impact of e-marketing on promotion
The analysis of the impact of e-marketing was done in two stages, first linear regression analysis was done, then a model was developed using least squares and secondly spearman correlation coefficient was established between the e-marketing and promotion of Samsung galaxy phones. The model is given as follows:
Yi= -0.022 + 0.005X1i – 3.027 X2i + 0.021X3
X1=Sales
X2= Returns
X3=cost of promotion
The intercept was -0.022. If all the explanatory factors are zero, then there is an expected unit change of 0.002 units e-marketing.
This implies a positive relationship between the e-marketing and sales of the company. For a unit increase in the e-marketing efforts, there is a 0.05 increase in the sales of the company. A unit increase in the cost of promotion leads to a 0.021 increase in the sales of the company. For a unit increase in the company returns, there is a 3.027 change in e-marketing efforts.
Influence of e-marketing on promotion of Samsung galaxy phones
The regression line is given by:
Yi= -0.228 + 0.009X2i
Where Yi=E-marketing
X2i =Promotion efforts
For a unit increase in the promotion activities, there is a 0.009 unit’s decrease in the E-marketing efforts. When the anticipated e-marketing effort is -0.228 then the promotion efforts is zero. The correlation coefficient between e-marketing and sales may be graphically presented as shown below:
Graphic presentation of impact of e-marketing on company sales
Sales
5
Immediately after the introduction of e-marketing, there was steadily increased in sales by 5 units. Later on, sales adjusted positively with a persistent upward slopping. This indicated a slightly strong, positive correlation between e-marketing and sales. The correlation coefficient is 0.046, and this is not significant. There is a weak positive correlation between the e-marketing and sales of the company in question. The plotted curve above shows that there is no linear relationship between the e-marketing and company sales. However, despite the lack of linearity, the correlation between the two variables still persists.
Impacts of e-marketing on cost of the company
6
4
2
4 8 12
Source: Author
The application of e-marketing leads the company to incur some cost associated with e-marketing. The cost rises and drops substantially, and then persistently rises before getting constant for some time. The fluctuation in cost is as a result of applying different efforts in promoting Samsung galaxy phones in the market. This means that, as significant efforts are applied to promote brand through e-marketing, considerable costs are incurred. Therefore, there is no linear correlation between the two variables; though, a relationship still exists.
Conclusion
There is no doubt that e-marketing has a great impact on promotion of Samsung galaxy within the Pakistan market. From the data analysis, there was a clear indication that there existed a relationship between e-marketing efforts and the sales volume. For every unit increase in the e-marketing efforts, the company sales volume and profits increases by 2.9 units. When the promotion efforts were at zero, then the expected sales volume and profits for the company in question was 0.605. Further, a spearman correlation analysis gave a correlation coefficient of +0.138. This indicates a weak positive relationship between the e-marketing efforts and the impact of promotion efforts on the companies’ returns and sales volume. The major factors affecting e-marketing include the intervening variables highlighted in the conceptual framework. Additionally, it has been observed that e-marketing has an impact on sales, returns, as well as on the associated cost of marketing.
Recommendations
Based on the findings, the research recommends companies and stakeholders to adopt online marketing. This is because it has a significant, positive contribution to the company’s growth. This boosts the profits and sales volume of the company. Additionally, the cost of conducting business is substantially reduced. The research further recommends companies to establish policies that protect customers against infringement of their privacy. Companies carrying out online marketing in Pakistan and other parts of the world should come up with models that protect customer’s privacy. Such models include spyware prevention software among others. Also, e-marketing expands the company’s market share and enhances the revenue of the company. The research further recommends the company to explore its distribution channels. This can be achieved through the establishment of experiencing stores. In these stores, customers come to buy and experience the latest products of the company. This will help the Samsung Company to sell its product effectively and efficiently through e-commerce. Also, the company should keep learning about the needs of customers in order to keep a head of competition. The company should focus on learning from customers and aspire to address their needs.
Suggestions for further Study
Further research should be carried out in various organizations. Also, though this study has come up with findings on the Samsung Company, a repeat study is encouraged from other researchers. This will be aimed to verify the validity and reliability of the study that has already ben carried out.
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