Table of Content
(a) Background of the study
(b) Significant impacts of e-marketing
(c) Problem definition
(d) Objectives of the Study
(f) Conceptual Framework
(a) Research design
(b) Limitation of the research design
Data Analysis and research findings
Conclusion and recommendation
Impacts of E-marketing on Promotion of Samsung galaxy phones in Pakistan.
The research aimed at investigating the impact of e-marketing on promotion of Samsung galaxy phone in Pakistan market. The research has been divided into six major sections which include the introductory section, the research methodology section, data analysis and research findings section, conclusion and recommendation sections, and lastly, the reference section. 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. This section also provides the background of the study. The objectives and the importance of this study have also been defined in this section. In addition to the above, a conceptual framework has been provided to help in understanding of the variables used to conduct the research. In the methodology section, 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 as the most appropriate for this study. On the data analysis section, regression analysis and spearman correlation were used to analyze the data. Additionally, simple graphs were also employed for the purpose of data presentation. The recommendations were also made based on the finding of the research. The research suggest that the company marketers should continuously observe the customers needs and look for ways through which those needs can be met. This can be achieved through innovation, as well as through research and development. Additionally, the research recommends the company to boost the confidence of customers by developing software that guarantees their privacy.
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 there 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 has been a challenge for the company. The major problem lies on the product design as well as research and development (Michell, 2008). Whereby, before the product is injected into the market, customer’s needs and preferences must be taken into account. But despite the herein considerations, customers have different preferences .Therefore, lack of a comprehensive and adequate research and development programs may lead to failure to satisfy their customers (Michell, 2008).
(b) Important 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 increases the sales and profits of the Samsung Company (Groves & Constant Contact, 2009). This has even led Samsung Company to be 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 the customers. The resulting effects were an increase in the market share of the company and subsequently increase in sales volume (Thomson & Baden-fuller, 2010). Empirical studies show that, explosive growth of the internet has led to emergence of perfectly competitive markets. With perfect information on prices of commodities, it has made it easier for consumers to quickly and efficiently find the best deals (Richardson, Gosnay & Carroll, 2010). A wide rage 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, it is more advantageous because it reaches the customers within a small fraction of time. 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. In above connection, marketers can be able to determine which messages are more appealing to the audience .this is possible because online marketing initiative requires users to click on the advertisement to vist the website page and to perform the intended transactions (Bates, 2006). The major challenge that is facing online marketing in parkistan markets and even other e-markets across the globe is the problem of deceptive advertisement. This is whereby, customers end up purchasing the wrong commodities from deceptive vendors and subsequently lowering the profits of the real company (Silverstein, 2002). Additionally, e-marketing makes marketers to loose personal touch with there customers .This is because there is no direct personal interaction between the marketers and the customers. It had also been observed that, many customers are reluctant to purchase the items from the internet because of lack of in formation security. Both companies and consumers who participate in online business fear for there 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 customer are unaware of the privacy infringement (Doherty & Ellis-Chadwick, 2010).
This study focuses on the impact of E-marketing on promotion of 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 normally deals with IT related items such as phones and computers. A good example is Samsung Company. This company had been facing the problem of limited market 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, Samsung Company in Pakistan had adopted online promotion strategy in order to try and overcome the above mentioned challenges. This research employed a case study whereby, Samsung Company which 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).
c) Objectives of the Study
The main objective of this study is to investigate the impacts of E-marketing on promotion of Samsung galaxy phones in Pakistan. Additionally, the secondary objectives of this study are, to identify the importance of e-marketing on promotion as well as to investigate the limitations of e-marketing on promotion of Samsung galaxy phones in Pakistan market.
d) Importance of the study
The outcomes of the study help decision makers of Samsung Company to identify the best marketing strategies to adopt in order to have a competitive advantage over the competitors in the Pakistan market. The study would further assist managers in planning and forecasting the 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.
Research methodology and justifications
The research design that was employed was a 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 in the Pakistan market. Additionally, a case study provides 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). Because of the limitations of using census, Samsung Company was selected out of a target population of 10 best performing electronics companies using simple random sampling. The reasons for using simple random sampling is because, all the participants have equal chances of inclusion. Additionally, the threat of biasness and unreliability is substantially reduced this is because, all the 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 was employed to analyzed the data obtain. Regression analysis was also used to establish the correlation between the impact of e-marketing and promotion of Samsung galaxy phones. Descriptive statistics was 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 such as, the evidence arrived at about cause and effect relationship can not be drawn scientifically through laboratory experiment. Additionally, case studies involve a single case and therefore, crucial details may be left out. Much of the information collected is retrospective data and hence, the information collected is subject to the problems inherent to memory (Hague, 2003). However, despite the above limitations, the benefit of using a case study outweighs its limitations and 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
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
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 strong 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
10 20 30 E-marketing
From the above graph, it can be observe that, there is has a positive linear correlation between e-marketing and the returns of the company. For a unit increase in e-marketing, means a positive change in promotion effort by 10 units, there is a resultant positive change in returns of the company by 10units as well.
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 as shown below.
The model is given as follows.
Yi= -0.022 + 0.005X1i – 3.027 X2i + 0.021X3
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 the 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
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
Impacts of e-marketing on cost of the company
4 8 10
The application of e-marketing impact the company to incur some cost associated with E-marketing, the cost rises and drop substantially and then persistently rises and later the cost remain constant for some times. The fluctuation in cost is as a result application of different efforts in promoting Samsung galaxy phones in the market. This means that, the more the efforts applied to promote brand through e-marketing, the more the cost incurred. Therefore there is no linear correlation between the two variables, however the relationship still exists.
CONCLUSIONS AND RECOMMEDATIONS
This section presents the summary of the findings of the main study, conclusions and recommendations arrived at. It also gives suggestions for further studies. The study was to investigate the impacts of e-marketing on promotion of sumsang galaxy phone. The introductory section has provided an in-depth the background against which the study was conducted. It focuses on the importance of e-marketing and the problems that Samsung Company is experiencing in Pakistan as it tries to penetrate and develop new markets. The statement of the problem sought to investigate the impact e-marketing on promotion. This also formed the purpose of the study discussed in this research. The research objectives were to establish the Impacts of e-marketing on promotion of Samsung galaxy phones in the Pakistan market. The significance, scope, limitations and assumptions of the study are also clearly addressed in this study. Also in the introductory section an over view of the related literature to this study has also been captured. Methodology section has discussed the research design used and how the collected data was analyzed. The section addresses the issue of research design, study location, target population, sampling procedures and sample size. The chapter also contains descriptions of the research instruments used. Procedure relating to the collection and analysis of data are also discussed in this chapter. On data analysis section it was found out that, for a unit increase in the E-marketing efforts, the company sales volume and profits as a result of promotion efforts increases by 2.9unit. When the promotion efforts through e-marketing is zero, then the expected sales volume and profits for the companies in question was is 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 the impact of e-marketing include the intervening variables highlighted in the conceptual framework. Additionally it has been observed that, e-marketing has an impact on sales and returns as well as in the associated cost of marketing as discussed earlier in this research.
Based on the findings, the research recommends that, companies and stake holders should adopt online marketing. This is because it has a significant positive contribution to the company’s growth. This is because the profits and the sales volume of the company increase substantially. Additionally, the cost of conducting business is substantially reduced. The research further recommends that companies should establish policies that protect the customers against the infringement of their privacy. Companies carrying out online marketing in Pakistan and in other parts of the world should come up with the models that Protect customer’s privacy when they are carrying out online transactions. Example of such models includes; spyware pretension software. Additionally, e-marketing expands the companies’ market share and enhances the revenue of company. The research further recommends that, the company should explore its distribution channels. For example by opening an experiencing store. In these stores, customers come to buy and experience the latest products of Samsung, this will help the company to sell its product more effectively and efficiently through e-commerce. In above connection, the company should keep learning about the needs of the customers in order to keep a head of competition. The company should focus on learning from customers and hear what they want and provide them with what they need.
Suggestions for further Study
The study wishes to make some proposals for further study based on the findings of the study, to be carried out in another organization. A replication of the current study should be done on other similar organizations to establish if similar results can be achieved of
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