New Methods of Online Advertising
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The End of Online Advertising as we
know it - Opportunities and Risks for
Companies in the Consumer
know it - Opportunities and Risks for
Companies in the Consumer
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TABLE OF CONTENTS
List of Figuers
Illustration 1: Online trading............................................................................................................7
Illustration 2: Offline trading...........................................................................................................9
Illustration 3: Online Advertising .................................................................................................15
Illustration 4: Banner Ads..............................................................................................................17
Illustration 5: Social Media Advertisement ..................................................................................20
Illustration 6: Consumer Buying Process .....................................................................................22
Illustration 7: Phases of project management ...............................................................................27
Illustration 8: Shockliner ...............................................................................................................29
CHAPTER 1: INTRODUCTION....................................................................................................1
Title.........................................................................................................................................1
1.1 Research questions and objectives...................................................................................2
1.2 Procedures........................................................................................................................2
1.3 Outline..............................................................................................................................5
CHAPTER 2 : DEFINITION...........................................................................................................7
Introduction............................................................................................................................7
2.1 Definition of online trading..............................................................................................7
2.2 Definition of offline trading.............................................................................................9
2.3 Similarities and difference between online trading and offline trading.........................11
CHATTER 3 : ONLINE ADVERTISING....................................................................................15
Introduction..........................................................................................................................15
3.1 Online Advertising.........................................................................................................15
3.2 New Methods of Online Advertising.............................................................................18
CHAPTER 4: PSYCHOLOGY OF THE BUYING PROCESS...................................................22
Introduction..........................................................................................................................22
4.1 Offline Purchase process................................................................................................22
4.2 Online purchase process.................................................................................................23
4.3 Similarities and differences 'offline and online' buying process....................................25
CHAPTER 5: PROJECT MANAGEMENT AND MARKETING FOR ONLINE SHOPS.........26
Introduction..........................................................................................................................26
5.1 Phases of project management for a product launch......................................................26
5.2 "Shockliner" as an innovative product..........................................................................28
5.2.1 Presentation of the product innovation of "Shockliner".........................................28
5.2.2 Reasons for insufficient market establishment of the new product........................29
5.3 Possibilities and tools for better marketability of Shockliner recommendations...........30
CHAPTER 6: CONCLUSION AND OUTLOOK........................................................................31
REFERENCES..............................................................................................................................32
List of Figuers
Illustration 1: Online trading............................................................................................................7
Illustration 2: Offline trading...........................................................................................................9
Illustration 3: Online Advertising .................................................................................................15
Illustration 4: Banner Ads..............................................................................................................17
Illustration 5: Social Media Advertisement ..................................................................................20
Illustration 6: Consumer Buying Process .....................................................................................22
Illustration 7: Phases of project management ...............................................................................27
Illustration 8: Shockliner ...............................................................................................................29
CHAPTER 1: INTRODUCTION....................................................................................................1
Title.........................................................................................................................................1
1.1 Research questions and objectives...................................................................................2
1.2 Procedures........................................................................................................................2
1.3 Outline..............................................................................................................................5
CHAPTER 2 : DEFINITION...........................................................................................................7
Introduction............................................................................................................................7
2.1 Definition of online trading..............................................................................................7
2.2 Definition of offline trading.............................................................................................9
2.3 Similarities and difference between online trading and offline trading.........................11
CHATTER 3 : ONLINE ADVERTISING....................................................................................15
Introduction..........................................................................................................................15
3.1 Online Advertising.........................................................................................................15
3.2 New Methods of Online Advertising.............................................................................18
CHAPTER 4: PSYCHOLOGY OF THE BUYING PROCESS...................................................22
Introduction..........................................................................................................................22
4.1 Offline Purchase process................................................................................................22
4.2 Online purchase process.................................................................................................23
4.3 Similarities and differences 'offline and online' buying process....................................25
CHAPTER 5: PROJECT MANAGEMENT AND MARKETING FOR ONLINE SHOPS.........26
Introduction..........................................................................................................................26
5.1 Phases of project management for a product launch......................................................26
5.2 "Shockliner" as an innovative product..........................................................................28
5.2.1 Presentation of the product innovation of "Shockliner".........................................28
5.2.2 Reasons for insufficient market establishment of the new product........................29
5.3 Possibilities and tools for better marketability of Shockliner recommendations...........30
CHAPTER 6: CONCLUSION AND OUTLOOK........................................................................31
REFERENCES..............................................................................................................................32
CHAPTER 1: INTRODUCTION
Title
The End of Online Advertising as we know it - Opportunities and Risks for Companies in
the Consumer Goods Industry and their Customers using the example of Online Shops.
Introduction
Online advertising is also known as online marketing or internet advertising or promotion
by using web. It is a type of marketing and promotion which utilities internet to deliver
promotional marketing messages to consumers (Richardson, Ganz and Vallone, 2015).
Customers tends to influences from the online advertising as it possess few benefits which
affects their buying decision. Online advertising includes social media marketing, search engine
marketing, search engine optimisation and other types of display advertising which enable
marketers to promote organisational goods and services to number of customers in an effective
and efficient manner. In this context, the dissertation will explore the online advertising and
trading tactics used by marketing management of online shopping companies like Lidl,
Powerslide, etc.
Online marketing trend embarked with beginning of internet revolution. Internet is now
accessible in every part of world which allows ample of opportunities to the marketers through
which they can promote and advertise organisational products and services to enormous amount
of population. In this context, the dissertation will be formulated in a systematic and structured
manner. Researcher will focus on providing definition of online and offline trading done by the
organisations. Articles and journals of senior authors and researchers will be selected in the study
in order to make dissertation more robust and effective. The online advertising is considered as
an efficient and effective method which is used by marketers in order to enhance the productivity
and profitability of the organisation. As compared with offline mode of marketing, online
marketing is considered to be cheap, effective and efficient source of marketing which provides
greater opportunities to the marketers through which they can advertise organisation’s products
and services to a large number of customers.
The researcher will carry out the dissertation in a precise and appropriate manner which
covers each and every aspect related with subject matter. Researcher will describe the elements
of online advertising such as Internet of Thing (IoT), social media marketing, Electronic word of
mouth (eWOM), etc. in the dissertation. Researcher will further explain about the psychology of
1
Title
The End of Online Advertising as we know it - Opportunities and Risks for Companies in
the Consumer Goods Industry and their Customers using the example of Online Shops.
Introduction
Online advertising is also known as online marketing or internet advertising or promotion
by using web. It is a type of marketing and promotion which utilities internet to deliver
promotional marketing messages to consumers (Richardson, Ganz and Vallone, 2015).
Customers tends to influences from the online advertising as it possess few benefits which
affects their buying decision. Online advertising includes social media marketing, search engine
marketing, search engine optimisation and other types of display advertising which enable
marketers to promote organisational goods and services to number of customers in an effective
and efficient manner. In this context, the dissertation will explore the online advertising and
trading tactics used by marketing management of online shopping companies like Lidl,
Powerslide, etc.
Online marketing trend embarked with beginning of internet revolution. Internet is now
accessible in every part of world which allows ample of opportunities to the marketers through
which they can promote and advertise organisational products and services to enormous amount
of population. In this context, the dissertation will be formulated in a systematic and structured
manner. Researcher will focus on providing definition of online and offline trading done by the
organisations. Articles and journals of senior authors and researchers will be selected in the study
in order to make dissertation more robust and effective. The online advertising is considered as
an efficient and effective method which is used by marketers in order to enhance the productivity
and profitability of the organisation. As compared with offline mode of marketing, online
marketing is considered to be cheap, effective and efficient source of marketing which provides
greater opportunities to the marketers through which they can advertise organisation’s products
and services to a large number of customers.
The researcher will carry out the dissertation in a precise and appropriate manner which
covers each and every aspect related with subject matter. Researcher will describe the elements
of online advertising such as Internet of Thing (IoT), social media marketing, Electronic word of
mouth (eWOM), etc. in the dissertation. Researcher will further explain about the psychology of
1
buying process including both offline purchase process and online purchasing process. The
similarities and differences between offline and online purchasing process will be investigate in
this research study. Researcher will devise project management and marketing plan for online
shop with reference to Shockliner.
1.1 Research questions and objectives
In order to formulate research questions, researcher first needs to make research aim and
objectives. Research aim will guide researcher in the right direction and research objectives will
provide assistance to the researcher through which researcher can accomplish the aim of study.
In this context, the aim and objective of present dissertation are described as below:
Aim
The aim of present dissertation is “to analyse opportunities and risk of online advertising
in the consumer goods industry and their customer”.
Objectives
The summarised objectives which underpin research aim are mentioned as below:
To understand about online trend and online advertising
To analyse opportunities associated with online advertising
To identify the challenges and risks associated with online advertising
To investigate customers' psychology of buying behaviour
Research questions are fundamental core of research study. Researcher in order to attain
the aim and objectives of dissertation first needs to devise precise research questions that
underpin the subject matter. In this context, researcher will answer the following research
questions:
1. What is the meaning of online trends and online advertising?
2. What are the opportunities associated with online advertising?
3. What are the challenges and risks associated with online advertising?
4. What is customers' psychology of buying behaviour?
1.2 Procedures
In this part, researcher will elaborate research methods that he or she will be going to use
in order to accomplish the aim and objectives of research study. Research methodology is
considered as a framework of dissertation. Discussion of research methods is very essential in
2
similarities and differences between offline and online purchasing process will be investigate in
this research study. Researcher will devise project management and marketing plan for online
shop with reference to Shockliner.
1.1 Research questions and objectives
In order to formulate research questions, researcher first needs to make research aim and
objectives. Research aim will guide researcher in the right direction and research objectives will
provide assistance to the researcher through which researcher can accomplish the aim of study.
In this context, the aim and objective of present dissertation are described as below:
Aim
The aim of present dissertation is “to analyse opportunities and risk of online advertising
in the consumer goods industry and their customer”.
Objectives
The summarised objectives which underpin research aim are mentioned as below:
To understand about online trend and online advertising
To analyse opportunities associated with online advertising
To identify the challenges and risks associated with online advertising
To investigate customers' psychology of buying behaviour
Research questions are fundamental core of research study. Researcher in order to attain
the aim and objectives of dissertation first needs to devise precise research questions that
underpin the subject matter. In this context, researcher will answer the following research
questions:
1. What is the meaning of online trends and online advertising?
2. What are the opportunities associated with online advertising?
3. What are the challenges and risks associated with online advertising?
4. What is customers' psychology of buying behaviour?
1.2 Procedures
In this part, researcher will elaborate research methods that he or she will be going to use
in order to accomplish the aim and objectives of research study. Research methodology is
considered as a framework of dissertation. Discussion of research methods is very essential in
2
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dissertation as it tell readers about the methods which researcher selected to accomplish the aim
and objectives of the research study. In this context, the methodology used by researcher in the
present dissertation is described as below:
Research Philosophy
Research philosophy deals with source, nature and development of knowledge.
According to Saunders research onion, research philosophy is the first area which is to be
covered by the researcher. There are four types of research philosophies which are used by the
researcher such as pragmatism, realism, positivism and interpretivism (Flick, 2015). In the
present dissertation, researcher will use positivism research philosophy. Positivism research
philosophy adheres to the factual knowledge which is gained through observations. Thus, in
order to attain the aim and objectives of research study, positivism research philosophy is
considered to be appropriate and optimum. Positivism relied on quantifiable observations that
leads to the statistical analyses. It can be understood that as a philosophy, positivism is in
accordance with the empiricist view that knowledge stems from human experience.
Research Approach
Discussion of research approach is essential in dissertation. Research approach is the plan
which consists of steps which consists of broad assumptions formulated by researcher to the
process of collection of data. Research approach is the approach of carrying out the research
study in most precise and optimum manner. There are two major types of research approaches
which are used by researcher in order to attain the aim and objectives of their research studies.
These are deductive and inductive research approaches. Deductive research approach is used by
researchers when they have to justify the hypothesis they formulated in the beginning of research
(Lewis, 2015). Inductive research approach is used when researcher has to analyse the research
questions in an effective and efficient manner. In the present dissertation, researcher will use
inductive research approach in order to analyse the research questions associated with the
research. Through this, researcher will be able to accomplish the aim and objectives of the
research study.
Research Design
Research design is the plan through which researcher will be able to attain the research
questions effectively and efficiently (Mackey and Gass, 2015). There are different types of
research designs such as descriptive, explanatory and exploratory that has been used by
3
and objectives of the research study. In this context, the methodology used by researcher in the
present dissertation is described as below:
Research Philosophy
Research philosophy deals with source, nature and development of knowledge.
According to Saunders research onion, research philosophy is the first area which is to be
covered by the researcher. There are four types of research philosophies which are used by the
researcher such as pragmatism, realism, positivism and interpretivism (Flick, 2015). In the
present dissertation, researcher will use positivism research philosophy. Positivism research
philosophy adheres to the factual knowledge which is gained through observations. Thus, in
order to attain the aim and objectives of research study, positivism research philosophy is
considered to be appropriate and optimum. Positivism relied on quantifiable observations that
leads to the statistical analyses. It can be understood that as a philosophy, positivism is in
accordance with the empiricist view that knowledge stems from human experience.
Research Approach
Discussion of research approach is essential in dissertation. Research approach is the plan
which consists of steps which consists of broad assumptions formulated by researcher to the
process of collection of data. Research approach is the approach of carrying out the research
study in most precise and optimum manner. There are two major types of research approaches
which are used by researcher in order to attain the aim and objectives of their research studies.
These are deductive and inductive research approaches. Deductive research approach is used by
researchers when they have to justify the hypothesis they formulated in the beginning of research
(Lewis, 2015). Inductive research approach is used when researcher has to analyse the research
questions in an effective and efficient manner. In the present dissertation, researcher will use
inductive research approach in order to analyse the research questions associated with the
research. Through this, researcher will be able to accomplish the aim and objectives of the
research study.
Research Design
Research design is the plan through which researcher will be able to attain the research
questions effectively and efficiently (Mackey and Gass, 2015). There are different types of
research designs such as descriptive, explanatory and exploratory that has been used by
3
researchers in order to carry out their research study. In the present dissertation, researcher will
use exploratory research design. Exploratory research, as the name implies, intends merely to
explore the research questions and does not intend to offer final and conclusive solutions to
existing problems. This type of research is usually conducted to study a problem that has not
been clearly defined yet. In this manner, researcher will be able to explore the research questions
more effectively and efficiently. Thus, this research design will help researcher in accomplishing
the aim and objectives of research study.
Research Strategy
Research strategy refers to the plan which helps the researcher in attaining the aim and
objectives of the research effectively. This strategy formulated by researcher which helps him or
her in determining the way through which the goals can be attained in most precise and
appropriate manner. There are different types of research study which are used by researcher in
order to attain the aim and objectives such as meta-analysis, case study analysis, systematic
review, qualitative analysis, quantitative analysis. In the present research study, the researcher
will use qualitative analysis in order to carry out the dissertation. As data will be obtain from
secondary source, qualitative analysis will be more appropriate and effective. Qualitative
research involves quality or kind i.e. when the research is to be made on human behaviour,
attitudes, cultures and experiences, on the basis of observations and interpretation, the research is
said to be qualitative.
Ethical Consideration
Ethical considerations are norms and conducts that are followed by researcher while
carrying out the research study (Taylor, Bogdan and DeVault, 2015). In order to enhance the
effectiveness in the quality of research, it is essential and important for the researcher to work
according to ethics. In the present dissertation, researcher will ensure that data will be obtained
from authentic and reliable sources. Researcher will cite the author (s) name where he or she
referred from their articles. Researcher will further make sure that plagiarism issue can be
prevented. Researcher will write the dissertation in his or her own words in order to prevent
plagiarism. Thus, in this manner, ethical consideration will be followed in the research study.
Research Limitation
Research limitations are obstructions that are faced by researcher which affect the
effectiveness in the research study (Cobb, Brookover and Cobb, 2015). Discussion of research
4
use exploratory research design. Exploratory research, as the name implies, intends merely to
explore the research questions and does not intend to offer final and conclusive solutions to
existing problems. This type of research is usually conducted to study a problem that has not
been clearly defined yet. In this manner, researcher will be able to explore the research questions
more effectively and efficiently. Thus, this research design will help researcher in accomplishing
the aim and objectives of research study.
Research Strategy
Research strategy refers to the plan which helps the researcher in attaining the aim and
objectives of the research effectively. This strategy formulated by researcher which helps him or
her in determining the way through which the goals can be attained in most precise and
appropriate manner. There are different types of research study which are used by researcher in
order to attain the aim and objectives such as meta-analysis, case study analysis, systematic
review, qualitative analysis, quantitative analysis. In the present research study, the researcher
will use qualitative analysis in order to carry out the dissertation. As data will be obtain from
secondary source, qualitative analysis will be more appropriate and effective. Qualitative
research involves quality or kind i.e. when the research is to be made on human behaviour,
attitudes, cultures and experiences, on the basis of observations and interpretation, the research is
said to be qualitative.
Ethical Consideration
Ethical considerations are norms and conducts that are followed by researcher while
carrying out the research study (Taylor, Bogdan and DeVault, 2015). In order to enhance the
effectiveness in the quality of research, it is essential and important for the researcher to work
according to ethics. In the present dissertation, researcher will ensure that data will be obtained
from authentic and reliable sources. Researcher will cite the author (s) name where he or she
referred from their articles. Researcher will further make sure that plagiarism issue can be
prevented. Researcher will write the dissertation in his or her own words in order to prevent
plagiarism. Thus, in this manner, ethical consideration will be followed in the research study.
Research Limitation
Research limitations are obstructions that are faced by researcher which affect the
effectiveness in the research study (Cobb, Brookover and Cobb, 2015). Discussion of research
4
limitations are important as it helps readers in providing understanding of the issues that
researcher face. In the present dissertation, researcher presumed that due to lack of available
studies on the research topic, it will become challenging to find appropriate research articles.
Researcher further estimated that the cost of research articles will be high which affects the
budget of researcher while conducting the dissertation.
1.3 Outline
In order to attain the aim and objectives of the present dissertation, it is crucial and
important for the researcher to carry out the dissertation in a systematic and efficient manner. In
this part, researcher will provide brief outline of dissertation by elaborating each chapter of
dissertation in an explicit and succinct manner. This will help the end users by providing them
comprehensive understanding of each chapter of the dissertation which will be covered by the
researcher. In this context, the dissertation structure for present study is described as below: Chapter 1: Introduction – This is the first chapter of the dissertation. In introduction,
researcher will introduce the topic of the dissertation effectively and efficiently. The
chapter will compose of background, research aim, objectives and questions.
Furthermore, researcher will explain the methodology that will be used by him or her in
order to accomplish the aim and objective of the dissertation. Researcher will
demonstrates the outline of the dissertation which helps end users to comprehend the
subject matter effectively and efficiently. Chapter 2: Definitions – In this chapter, the researcher will provide definition of
important topic of research. The definition of various elements such as online trading,
offline trading, similarities and differences between online and offline trading will be
provided in this chapter. By reviewing the articles, journals and books written by
different researchers, the researcher will provide detailed understanding and meaning of
the elements related with online advertising in this chapter. Chapter 3: Online Advertising – This is the third chapter of the dissertation in which
researcher will provide detail understanding about the topics related with online
advertising. The new methods of online advertising will also be described in this chapter
by referring to senior authors and researchers. Chapter 4: Psychology of the buying process – In this chapter, researcher will explain in
detail about the psychology of consumers before and after purchasing the particular
5
researcher face. In the present dissertation, researcher presumed that due to lack of available
studies on the research topic, it will become challenging to find appropriate research articles.
Researcher further estimated that the cost of research articles will be high which affects the
budget of researcher while conducting the dissertation.
1.3 Outline
In order to attain the aim and objectives of the present dissertation, it is crucial and
important for the researcher to carry out the dissertation in a systematic and efficient manner. In
this part, researcher will provide brief outline of dissertation by elaborating each chapter of
dissertation in an explicit and succinct manner. This will help the end users by providing them
comprehensive understanding of each chapter of the dissertation which will be covered by the
researcher. In this context, the dissertation structure for present study is described as below: Chapter 1: Introduction – This is the first chapter of the dissertation. In introduction,
researcher will introduce the topic of the dissertation effectively and efficiently. The
chapter will compose of background, research aim, objectives and questions.
Furthermore, researcher will explain the methodology that will be used by him or her in
order to accomplish the aim and objective of the dissertation. Researcher will
demonstrates the outline of the dissertation which helps end users to comprehend the
subject matter effectively and efficiently. Chapter 2: Definitions – In this chapter, the researcher will provide definition of
important topic of research. The definition of various elements such as online trading,
offline trading, similarities and differences between online and offline trading will be
provided in this chapter. By reviewing the articles, journals and books written by
different researchers, the researcher will provide detailed understanding and meaning of
the elements related with online advertising in this chapter. Chapter 3: Online Advertising – This is the third chapter of the dissertation in which
researcher will provide detail understanding about the topics related with online
advertising. The new methods of online advertising will also be described in this chapter
by referring to senior authors and researchers. Chapter 4: Psychology of the buying process – In this chapter, researcher will explain in
detail about the psychology of consumers before and after purchasing the particular
5
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product via online shopping. The psychology of offline purchase and the psychology of
customer during online purchase will be assessed in this report. The similarities and
differences between psychology of consumers during online and offline purchase will be
described by the researcher in this chapter in order to enhance understanding readers. Chapter 5: Project management and marketing for online shops – This will be the fifth
chapter of dissertation. In this chapter, researcher will explain in detail about the phases
of project management for a product launch. Researcher will elaborate the reason for
insufficient market establishment of the new product and the Possibilities and tools for
better marketability of shock-liner recommendations.
Chapter 6: Conclusion – This will be the last chapter of the dissertation. In this chapter,
the researcher will summaries the complete learning and findings in the most appropriate
and suitable manner which aid in enhancing the knowledge level of end users.
6
customer during online purchase will be assessed in this report. The similarities and
differences between psychology of consumers during online and offline purchase will be
described by the researcher in this chapter in order to enhance understanding readers. Chapter 5: Project management and marketing for online shops – This will be the fifth
chapter of dissertation. In this chapter, researcher will explain in detail about the phases
of project management for a product launch. Researcher will elaborate the reason for
insufficient market establishment of the new product and the Possibilities and tools for
better marketability of shock-liner recommendations.
Chapter 6: Conclusion – This will be the last chapter of the dissertation. In this chapter,
the researcher will summaries the complete learning and findings in the most appropriate
and suitable manner which aid in enhancing the knowledge level of end users.
6
CHAPTER 2 : DEFINITION
Introduction
In this chapter, researcher will provide definition of important terminologies which are
relevant to the research study i.e. online trading, online marketing, online advertising and offline
trading. The definition will be supported by the reviews of authors and researches who have
described these terminologies in their research study. Furthermore, researcher will also provide
similarities and differences between online trading and offline trading supported with current
literature and efficient examples.
2.1 Definition of online trading
The word online is totally mean “on the internet”. Online trading is an internet based
trading market which consists of simple buying and selling assets with the use of internet based
portals. In late 1990's after the coming of internet and high speed computers online trading
market is grown up at increasing rate. In online trading these things like bonds, mutual funds,
shares and currencies are buy and sell (Zekiri and HASANI, 2015). In addition, in online
marketing there are many other things also traded. At this online platforms a trader sells and buy
many products and there are also provides services. Many people trade online by becoming a
7
Illustration 1: Online trading
(Source:5 Deadly Sins information from online stores and how to solve them, 2016 )
Introduction
In this chapter, researcher will provide definition of important terminologies which are
relevant to the research study i.e. online trading, online marketing, online advertising and offline
trading. The definition will be supported by the reviews of authors and researches who have
described these terminologies in their research study. Furthermore, researcher will also provide
similarities and differences between online trading and offline trading supported with current
literature and efficient examples.
2.1 Definition of online trading
The word online is totally mean “on the internet”. Online trading is an internet based
trading market which consists of simple buying and selling assets with the use of internet based
portals. In late 1990's after the coming of internet and high speed computers online trading
market is grown up at increasing rate. In online trading these things like bonds, mutual funds,
shares and currencies are buy and sell (Zekiri and HASANI, 2015). In addition, in online
marketing there are many other things also traded. At this online platforms a trader sells and buy
many products and there are also provides services. Many people trade online by becoming a
7
Illustration 1: Online trading
(Source:5 Deadly Sins information from online stores and how to solve them, 2016 )
broker. In earlier years an investor would call or meet to people for trading. They could either
make a call or meet to people for their business. In fact, there was no other choice (Solomon,
Dahl and Polegato, 2014). This procedure is very lengthy and time consumption also too much.
In that time cost would also increase due to increase of time. Today with online trading it is
reduced and also time save. In other words people who trades online they save their time and
also money which is incurred due to transport and other reason. Even they can run their business
threw online without any help. The important things of this online business is they run their own
business rapidly and instantly. The online trader also control over trades than the traditional
trader.
People who trade online they can execute trades easily and faster than they ever could
face to face or with the use of telephone (Jankowski, Ziemba and Kazienko, 2016). Apart from
this they are being able to manage multiple positions continuously and the online trader has
access to the extensive data. In today's world internet is easily available for everyone and
everywhere so it is a merit for online trading that they can easily access their work and earn more
profits compare to the traditional trader. Another benefits of online trading is the increasing the
numbers of transaction and it can be executed and settled timely. When any investor is entered
into online market, the order of product is placed in a database which pre check currency
(Hamzah and Sutanto, 2016). The seller and the buyer both are satisfied at a level of currency
exchange rate and deal it. This all procedure is come within seconds and it is easy also compares
to make a phone call or meeting with people.
In online trading a special thing also come that is online advertising. This is also known
as online marketing or internet advertising or web advertising. It is a step of marketing which is
compulsory conducted during online trading. It is mandatory because most of the customers use
internet and view online advertising as an unwanted distraction with few benefits and they are
increasingly turned to another suppliers for their needed services (Zekiri and HASANI, 2015). In
online advertising it contains search engine marketing, email marketing, social media marketing
and mobile marketing. The important things related to online advertising is it promotes any
business quickly and cover too much geographical area with numbers of persons. For online
trading, there are many reasons for opting online advertising like it is relatively inexpensive, it
reaches a wide audience, it can be personalized for a target market audience, by using this it can
be tracked to measure success.
8
make a call or meet to people for their business. In fact, there was no other choice (Solomon,
Dahl and Polegato, 2014). This procedure is very lengthy and time consumption also too much.
In that time cost would also increase due to increase of time. Today with online trading it is
reduced and also time save. In other words people who trades online they save their time and
also money which is incurred due to transport and other reason. Even they can run their business
threw online without any help. The important things of this online business is they run their own
business rapidly and instantly. The online trader also control over trades than the traditional
trader.
People who trade online they can execute trades easily and faster than they ever could
face to face or with the use of telephone (Jankowski, Ziemba and Kazienko, 2016). Apart from
this they are being able to manage multiple positions continuously and the online trader has
access to the extensive data. In today's world internet is easily available for everyone and
everywhere so it is a merit for online trading that they can easily access their work and earn more
profits compare to the traditional trader. Another benefits of online trading is the increasing the
numbers of transaction and it can be executed and settled timely. When any investor is entered
into online market, the order of product is placed in a database which pre check currency
(Hamzah and Sutanto, 2016). The seller and the buyer both are satisfied at a level of currency
exchange rate and deal it. This all procedure is come within seconds and it is easy also compares
to make a phone call or meeting with people.
In online trading a special thing also come that is online advertising. This is also known
as online marketing or internet advertising or web advertising. It is a step of marketing which is
compulsory conducted during online trading. It is mandatory because most of the customers use
internet and view online advertising as an unwanted distraction with few benefits and they are
increasingly turned to another suppliers for their needed services (Zekiri and HASANI, 2015). In
online advertising it contains search engine marketing, email marketing, social media marketing
and mobile marketing. The important things related to online advertising is it promotes any
business quickly and cover too much geographical area with numbers of persons. For online
trading, there are many reasons for opting online advertising like it is relatively inexpensive, it
reaches a wide audience, it can be personalized for a target market audience, by using this it can
be tracked to measure success.
8
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Types of online marketing or advertising – for complying an online business here some types for
promote that business.
Display Advertisement – this is the oldest and frequently used method. By this method an online
businessman must find an Auto zone display ad on a popular blog or a banner ad promoting
the newest products.
Email Ads – it is very popular form of online marketing that most customers do not think about
them like an advertisement (Foxall, 2014). Sometimes email ads are comes in the form of
newsletters and coupons.
Social Media Ads – social media like you tube, twitter, Facebook, marketing messages are also a
big platform to conducting online advertisements. There are new innovations are come every
time like Taco Bell, snap chat etc.
Native Ads – it is using like sponsored post. For example virgin mobile doing a post and in that
post “6 texts to copy and paste to break up with your significant other” on Buzz feed, or in
the form of an adversarial.
2.2 Definition of offline trading
9
Illustration 2: Offline trading
(Source: Why offline stores need to start taking their data seriously, 2015)
promote that business.
Display Advertisement – this is the oldest and frequently used method. By this method an online
businessman must find an Auto zone display ad on a popular blog or a banner ad promoting
the newest products.
Email Ads – it is very popular form of online marketing that most customers do not think about
them like an advertisement (Foxall, 2014). Sometimes email ads are comes in the form of
newsletters and coupons.
Social Media Ads – social media like you tube, twitter, Facebook, marketing messages are also a
big platform to conducting online advertisements. There are new innovations are come every
time like Taco Bell, snap chat etc.
Native Ads – it is using like sponsored post. For example virgin mobile doing a post and in that
post “6 texts to copy and paste to break up with your significant other” on Buzz feed, or in
the form of an adversarial.
2.2 Definition of offline trading
9
Illustration 2: Offline trading
(Source: Why offline stores need to start taking their data seriously, 2015)
Researchers elucidated that offline trading is also known as Brick and Mortar mode of
business. It means that organisation have physical presence in a building or other structure
(Lavanya and Saraswathi, 2018). Offline business or traditional business is commenced at
physical place where people come, see or browse through products and purchase them as per
their desires. Individuals in Brick and Mortar business are able to give efficient customer service
than any other type of operation structure. Authors said that offline business is considered to be a
traditional street side business that deals with its customers face to face in an office or store. For
example, the local grocery stores, banks, shopping parlour are the best example of offline stores
(Van Reijmersdal, Rozendaal and Buijzen, 2017). Offline stores have several benefits and
advantages as compared to their online counterpart. Researchers said that customers still prefers
to visit stores, take experience about the products, ask questions in order to know more about the
product which influences their purchase decision. In simpler terms offline business brings a
sense of trust in customers (Wilbur, 2015).
Researchers elucidated that offline mode of trading enhances customer motivation as it
depicts the owner of the business is financially stable enough to have a shop or store. It also
establishes an element of professionalism making it quite popular amongst customers (Carling,
Han and Rudholm, 2015). Researchers said that customers would rather like to see and feel the
products before spending money on them. This is done usually when the product is Jewellery,
electronic items, clothes etc. (Yamagata-Lynch, Cowan and Luetkehans, 2015). Offline trading
indeed transforms the perception of customers and influences their purchase decision. Whenever
customer sees an item in showcase or in showroom he or she prefers to get more information
about the product and then make the purchase decision about it. It can be understood that offline
mode of trading is considered to be the most efficient source of trading as it helps in enhancing
the motivation and satisfaction of customer.
Researchers argued that offline trading have ample of challenges associated with.
Business managers and organisation in bricks and mortars faced the challenge of managing cost
associated with the infrastructure, human resources (Paswan and Ganesh, 2015). It not just
requires lots of money but also requires continuous supervision, monitoring and doing business
activities. Another challenge faced by business managers in bricks and mortar is increasing
competition with online trading and marketing. Online business activities has been flourishing in
Europe as majority of consumers prefers to purchase products and services online. Researchers
10
business. It means that organisation have physical presence in a building or other structure
(Lavanya and Saraswathi, 2018). Offline business or traditional business is commenced at
physical place where people come, see or browse through products and purchase them as per
their desires. Individuals in Brick and Mortar business are able to give efficient customer service
than any other type of operation structure. Authors said that offline business is considered to be a
traditional street side business that deals with its customers face to face in an office or store. For
example, the local grocery stores, banks, shopping parlour are the best example of offline stores
(Van Reijmersdal, Rozendaal and Buijzen, 2017). Offline stores have several benefits and
advantages as compared to their online counterpart. Researchers said that customers still prefers
to visit stores, take experience about the products, ask questions in order to know more about the
product which influences their purchase decision. In simpler terms offline business brings a
sense of trust in customers (Wilbur, 2015).
Researchers elucidated that offline mode of trading enhances customer motivation as it
depicts the owner of the business is financially stable enough to have a shop or store. It also
establishes an element of professionalism making it quite popular amongst customers (Carling,
Han and Rudholm, 2015). Researchers said that customers would rather like to see and feel the
products before spending money on them. This is done usually when the product is Jewellery,
electronic items, clothes etc. (Yamagata-Lynch, Cowan and Luetkehans, 2015). Offline trading
indeed transforms the perception of customers and influences their purchase decision. Whenever
customer sees an item in showcase or in showroom he or she prefers to get more information
about the product and then make the purchase decision about it. It can be understood that offline
mode of trading is considered to be the most efficient source of trading as it helps in enhancing
the motivation and satisfaction of customer.
Researchers argued that offline trading have ample of challenges associated with.
Business managers and organisation in bricks and mortars faced the challenge of managing cost
associated with the infrastructure, human resources (Paswan and Ganesh, 2015). It not just
requires lots of money but also requires continuous supervision, monitoring and doing business
activities. Another challenge faced by business managers in bricks and mortar is increasing
competition with online trading and marketing. Online business activities has been flourishing in
Europe as majority of consumers prefers to purchase products and services online. Researchers
10
said that in order to sustain in the competitive environment it becomes essential to the business
managers working in bricks and mortar to innovate their business operations and enhance their
marketing activities so that the productivity and profitability can be increased (Branson, Bin and
Murray, 2017). Authors argued that lack of personalisation is another challenge faced by the
business organisation which prefer offline trading. Each customer comes with unique
requirement and customers shopping experience needs to be tailored to their individual wants,
needs and expectations (Bhatnagar and Syam, 2014). Authors said that in order to overcome this
problem business managers needs to conduct robust market research and gather relevant data and
information so that the innovation can be made effectively and efficiently (Harris and Nikitenko,
2014). Brick and mortar businesses provides instant gratification of consumers when they make a
purchase.
The rise of online marketing and online trading is now giving stiff competition to offline
traders. With the rise in advance digital technologies and easy accessibility of internet it becomes
easier for the consumers to make purchase of their desired product from their desired
organisation (Kukar-Kinney and Carlson, 2015). Managers and organisations needs to devise
precise strategies and plans in order to sustain in competitive environment and gain competitive
advantages. Offline mode of shopping and trading is still mostly preferable by the business
managers and customers due to its reliability, trust and benefits associated with it.
2.3 Similarities and difference between online trading and offline trading
11
managers working in bricks and mortar to innovate their business operations and enhance their
marketing activities so that the productivity and profitability can be increased (Branson, Bin and
Murray, 2017). Authors argued that lack of personalisation is another challenge faced by the
business organisation which prefer offline trading. Each customer comes with unique
requirement and customers shopping experience needs to be tailored to their individual wants,
needs and expectations (Bhatnagar and Syam, 2014). Authors said that in order to overcome this
problem business managers needs to conduct robust market research and gather relevant data and
information so that the innovation can be made effectively and efficiently (Harris and Nikitenko,
2014). Brick and mortar businesses provides instant gratification of consumers when they make a
purchase.
The rise of online marketing and online trading is now giving stiff competition to offline
traders. With the rise in advance digital technologies and easy accessibility of internet it becomes
easier for the consumers to make purchase of their desired product from their desired
organisation (Kukar-Kinney and Carlson, 2015). Managers and organisations needs to devise
precise strategies and plans in order to sustain in competitive environment and gain competitive
advantages. Offline mode of shopping and trading is still mostly preferable by the business
managers and customers due to its reliability, trust and benefits associated with it.
2.3 Similarities and difference between online trading and offline trading
11
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All the series of steps involved in decision making to buy a new product or a service is
called buying process. The standard steps in purchase decision making include recognition of
needs, all the information related to products like price, quality of the product, pre and post
evaluation of choices. Nowadays purchase marketing is done by both the way I.e. online
marketing and offline marketing. According to the current scenario online marketing is taking its
root in the market but yet all the products are not bought online by the customers. Customers
generally use to buy the goods and products according to their convince. Online and offline
marketing has its own benefits and drawbacks over each other.
Similarities
Researchers stated that there are some similarities existed between online and offline
trading. Online trading refers to the process where business managers and organisations establish
virtual office and conduct business activities on e-commerce platforms (Horky and Collier,
2016). The motive of both online and offline trading is to increase the profits and revenue of the
company by increasing the customer base. Like offline trading, online trading provides wide
range of products and services to particular types of customers (Amankwah-Amoah, 2017). Like
offline shopping, online shopping experience offers a large selection of items to choose from. In
online trading, the managers focused more on marketing of organisation which is similar in case
12
called buying process. The standard steps in purchase decision making include recognition of
needs, all the information related to products like price, quality of the product, pre and post
evaluation of choices. Nowadays purchase marketing is done by both the way I.e. online
marketing and offline marketing. According to the current scenario online marketing is taking its
root in the market but yet all the products are not bought online by the customers. Customers
generally use to buy the goods and products according to their convince. Online and offline
marketing has its own benefits and drawbacks over each other.
Similarities
Researchers stated that there are some similarities existed between online and offline
trading. Online trading refers to the process where business managers and organisations establish
virtual office and conduct business activities on e-commerce platforms (Horky and Collier,
2016). The motive of both online and offline trading is to increase the profits and revenue of the
company by increasing the customer base. Like offline trading, online trading provides wide
range of products and services to particular types of customers (Amankwah-Amoah, 2017). Like
offline shopping, online shopping experience offers a large selection of items to choose from. In
online trading, the managers focused more on marketing of organisation which is similar in case
12
of online trading. The price and costing of product is partially identical in both online and offline
business. The goal and objectives of both form of trading is to generate ample amount of profits
which helps them in sustaining in competitive environment (Ison, 2014). Another similarity
between online trading and offline trading is utilisation of advance and latest digital
technologies.
Both the traders uses advance technologies in their various course of business operations
say for example marketing and supply chain management. In present era, the growth and
development in technologies helps in enhancing the ways in which businessman do their
operations (O'Guinn, 2015). Another similar feature that exist between both online and offline
mode of trading is the way of attracting the customers. Businessman both in online and offline
trading conduct robust research in order to gain adequate knowledge and information about
recent taste and preference of customers and make marketing plan accordingly. Both type of
businesses use customer incentive as the marketing tool. This involves conducting crossover
promotions between products offered on and off line, implementing customer reward programs
and providing perks for referring new customers. Thus, in this manner, the online trading and
offline trading businesses are similar with each other (Luo and Sun, 2016). Online trading and e-
commerce indeed acquiring majority of the market share, but still customers prefer to go to
physical store in order to experience the products by their own.
Differences
Despite of having many similarities, there are large number of difference between online
trading business and offline trading business. Researcher contends that online business and e-
commerce has been increasing rapidly as it is easy to establish, required low investment as
compared with brick and mortar businesses. Offline business allows face to face interaction and
customers can get precise information about products and services. Online businesses fails to
provide face to face interaction (Carling, Han and Rudholm, 2014). Though, now many online
shopping websites provides face to face interaction by using video conferencing technologies.
Making interaction with customer aid in enhancing the brand value and reputation of the
organisation as manager can identify the need of customer and provide him or her with precise
products.
The targets of offline businesses are generally localities in smaller or limited area
whereas online business can target community living in all over the country. Though, offline
13
business. The goal and objectives of both form of trading is to generate ample amount of profits
which helps them in sustaining in competitive environment (Ison, 2014). Another similarity
between online trading and offline trading is utilisation of advance and latest digital
technologies.
Both the traders uses advance technologies in their various course of business operations
say for example marketing and supply chain management. In present era, the growth and
development in technologies helps in enhancing the ways in which businessman do their
operations (O'Guinn, 2015). Another similar feature that exist between both online and offline
mode of trading is the way of attracting the customers. Businessman both in online and offline
trading conduct robust research in order to gain adequate knowledge and information about
recent taste and preference of customers and make marketing plan accordingly. Both type of
businesses use customer incentive as the marketing tool. This involves conducting crossover
promotions between products offered on and off line, implementing customer reward programs
and providing perks for referring new customers. Thus, in this manner, the online trading and
offline trading businesses are similar with each other (Luo and Sun, 2016). Online trading and e-
commerce indeed acquiring majority of the market share, but still customers prefer to go to
physical store in order to experience the products by their own.
Differences
Despite of having many similarities, there are large number of difference between online
trading business and offline trading business. Researcher contends that online business and e-
commerce has been increasing rapidly as it is easy to establish, required low investment as
compared with brick and mortar businesses. Offline business allows face to face interaction and
customers can get precise information about products and services. Online businesses fails to
provide face to face interaction (Carling, Han and Rudholm, 2014). Though, now many online
shopping websites provides face to face interaction by using video conferencing technologies.
Making interaction with customer aid in enhancing the brand value and reputation of the
organisation as manager can identify the need of customer and provide him or her with precise
products.
The targets of offline businesses are generally localities in smaller or limited area
whereas online business can target community living in all over the country. Though, offline
13
businesses can expand to other localities either by establishing new venture or through franchise
but it requires ample amount of cost and funds. Reputation management is a very important
aspect of online business for the simple fact that, unlike offline businesses, reaching customers in
person and via telephone becomes more difficult. Word of mouth can still make or break a
business regardless of an online or offline status (Kladou and Mavragani, 2015). The marketing
and promotional activities of offline business mostly relied on television and print advertisement
whereas online stores promotes themselves by utilising digital technologies, internet, social
media promotion and mobile marketing.
When it comes to deliver digital products and services, there is no comparison with
online business. But when it comes to deliver physical goods and services, offline business are
mostly preferred as customers can take the particular products after making payments. Offline
businesses usually operates on fixed hours and remains off on specific days (Riasi and Pourmiri,
2015). Whereas online business works 24 hour a day. Customers can make purchase at any time
just by logging in on particular shopping website and make purchase of the product. There are
ample of offers has been provided on online shopping platform which makes it different from
offline trading. Online mode is easy to accessible, time saving and fewer efforts are required by
the consumers. Thus, most of the consumers have transformed their taste and preferences and
begin purchasing products and services online thus impact on online trading.
Differences between online and offline marketing
Cost : No doubt companies fix the prices of a product by including every expanses from its
manufacturing process to the door of customers. So cost matters too much for a product.
Advertisement is one the most important step to sell the product. Here if the expanses of online
marketing is considered, it’s more expansive than online advertisement. The online
advertisement has more attractive impression over the customers rather than the offline
advertisement. So online advertisement presentation of the products is better than the off line
advertisement with low cost. There may be the chances of bargaining in offline marketing but
there is no option of bargaining in online marketing.
Exposure: offline marketing promotion is limited to a certain range but online marketing has
maximum exposure. Online promotions can be done globally without any barriers. Online
products can be sold throughout the world just by one click but it is not possible for the offline
marketing.
14
but it requires ample amount of cost and funds. Reputation management is a very important
aspect of online business for the simple fact that, unlike offline businesses, reaching customers in
person and via telephone becomes more difficult. Word of mouth can still make or break a
business regardless of an online or offline status (Kladou and Mavragani, 2015). The marketing
and promotional activities of offline business mostly relied on television and print advertisement
whereas online stores promotes themselves by utilising digital technologies, internet, social
media promotion and mobile marketing.
When it comes to deliver digital products and services, there is no comparison with
online business. But when it comes to deliver physical goods and services, offline business are
mostly preferred as customers can take the particular products after making payments. Offline
businesses usually operates on fixed hours and remains off on specific days (Riasi and Pourmiri,
2015). Whereas online business works 24 hour a day. Customers can make purchase at any time
just by logging in on particular shopping website and make purchase of the product. There are
ample of offers has been provided on online shopping platform which makes it different from
offline trading. Online mode is easy to accessible, time saving and fewer efforts are required by
the consumers. Thus, most of the consumers have transformed their taste and preferences and
begin purchasing products and services online thus impact on online trading.
Differences between online and offline marketing
Cost : No doubt companies fix the prices of a product by including every expanses from its
manufacturing process to the door of customers. So cost matters too much for a product.
Advertisement is one the most important step to sell the product. Here if the expanses of online
marketing is considered, it’s more expansive than online advertisement. The online
advertisement has more attractive impression over the customers rather than the offline
advertisement. So online advertisement presentation of the products is better than the off line
advertisement with low cost. There may be the chances of bargaining in offline marketing but
there is no option of bargaining in online marketing.
Exposure: offline marketing promotion is limited to a certain range but online marketing has
maximum exposure. Online promotions can be done globally without any barriers. Online
products can be sold throughout the world just by one click but it is not possible for the offline
marketing.
14
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Convenience: Convenience means to say that customers does not need to go to the shop to buy
the products, he \ she can order the products online and this causes the saving of time but in
offline marketing one has to go to the market that cause the loss of time and energy.
Personalization: Special offers and discounts are provided to the customers according to their
choices in online marketing because the suppliers already have your last shopping details.
Whereas in offline marketing these types of strategies can not be easily applied for the
customers.
Return policy: Every online marketing service has its own returning policy, so it is easy to
return the products in online marketing within a given period. There is also the chances of money
cash back in online marketing. On the other hand in offline marketing there are fewer chances of
exchange offers and also having no policy of cash back.
Texture appearance: in online marketing the products are shown very attractive with beautiful
textures. But sometimes it happens, the quality that appears on the screen is totally different from
that what we were looking for. This is one of the best advantage of the offline marketing that we
can evaluate our product at the time of purchase and can get the satisfactory result over there
Conclusion: Both the marketing’s have its own value and they are beneficial for the customers at
different point of level. It depends on the customer's choice what they want.
15
the products, he \ she can order the products online and this causes the saving of time but in
offline marketing one has to go to the market that cause the loss of time and energy.
Personalization: Special offers and discounts are provided to the customers according to their
choices in online marketing because the suppliers already have your last shopping details.
Whereas in offline marketing these types of strategies can not be easily applied for the
customers.
Return policy: Every online marketing service has its own returning policy, so it is easy to
return the products in online marketing within a given period. There is also the chances of money
cash back in online marketing. On the other hand in offline marketing there are fewer chances of
exchange offers and also having no policy of cash back.
Texture appearance: in online marketing the products are shown very attractive with beautiful
textures. But sometimes it happens, the quality that appears on the screen is totally different from
that what we were looking for. This is one of the best advantage of the offline marketing that we
can evaluate our product at the time of purchase and can get the satisfactory result over there
Conclusion: Both the marketing’s have its own value and they are beneficial for the customers at
different point of level. It depends on the customer's choice what they want.
15
CHATTER 3 : ONLINE ADVERTISING
Introduction
Online advertising refers to online marketing strategy in which utilisation of internet as
the medium to obtain website traffic, target ad deliver marketing to the right customers is
involved (Zekiri and HASANI, 2015). Online advertising is geared toward defining market
through unique and useful applicants. In this context, researcher in this chapter will enable
comprehensive understanding about online advertising. The traditional or classic methods of
online advertising will be discussed in this chapter and new methods of online advertising such
as customer rating, word of mouth in social media etc. will be discussed.
3.1 Online Advertising
Advertising is a way of connecting the users with products and services. It may be in
audio or visual medium. It delivers open sponsored and non personal messages publicly to
promote and sell the goods, services, ideas and many more stuffs. But when we talk about the
online advertising, there is need of another medium that is called internet. Online advertising is
totally internet based marketing system. Each and every sector is entering to the online
16
Illustration 3: Online Advertising
(Source: SMALL BUSINESS MARKETING AND ONLINE ADVERTISING,
2018)
Introduction
Online advertising refers to online marketing strategy in which utilisation of internet as
the medium to obtain website traffic, target ad deliver marketing to the right customers is
involved (Zekiri and HASANI, 2015). Online advertising is geared toward defining market
through unique and useful applicants. In this context, researcher in this chapter will enable
comprehensive understanding about online advertising. The traditional or classic methods of
online advertising will be discussed in this chapter and new methods of online advertising such
as customer rating, word of mouth in social media etc. will be discussed.
3.1 Online Advertising
Advertising is a way of connecting the users with products and services. It may be in
audio or visual medium. It delivers open sponsored and non personal messages publicly to
promote and sell the goods, services, ideas and many more stuffs. But when we talk about the
online advertising, there is need of another medium that is called internet. Online advertising is
totally internet based marketing system. Each and every sector is entering to the online
16
Illustration 3: Online Advertising
(Source: SMALL BUSINESS MARKETING AND ONLINE ADVERTISING,
2018)
advertising system (Jankowski, Ziemba and Kazienko, 2016). A web portal is needed for online
advertisement called website. Due to increasing number of online advertisement the website
traffic is also one of the issue. It was the early 1990s there was an exponential growth in online
advertising and now this has become as a standard for small and large organisation. Online
advertising is also known as the internet advertising and digital advertising.
Applications of online advertising
Through online advertising can easily target the users by collecting the users informations
through social media like Facebook, Twitter, Instagram and many more. If there is any mistake
in the advertisement it can be easily corrected within short period. The information can be send
to the email regarding those advertisements. Consumers can be easily tracked by the online
advertising. The area is not limited in online advertising. It can be explored from local market to
the global market (Solomon, Dahl and Polegato, 2014). Advertising can be D done for 24/7 and
many brands and products can be reached to the consumers at the same time. It is very easy to
start online adverting and marketing with simple process and with small amount of pay. It can be
started at any time as per your convenience is very helpful in taking the feedback and follow ups
of consumers.
Risk of online advertising
Leakage of the personal information is one of the biggest risk of the online advertising.
The advertising organisation steal the personal information of the users without their permission.
Sometimes there are the fake ads so the customers should be aware of those fake ads. Tasteless
jokes made over organisation cause the bad influence for the reputed one.
Classical methods of online advertising
Classical methods of online advertising refers to the old ways of promoting
organisational goods and services by using internet and digital technologies. For example, banner
advertising. Classical methods used by the marketers in order to promote the products and
services of organisation to large number of customers (Hamzah and Sutanto, 2016). Banner
advertising is also referred as display advertising which is opposite of text only advertising
because of its visual nature of banner advertisements. The purpose of banner advertising is to
promote a brand. The banner advertisement can take the visitor from the host website to the
advertisers' website or specific landing page. The advertisement that displayed into a web page
17
advertisement called website. Due to increasing number of online advertisement the website
traffic is also one of the issue. It was the early 1990s there was an exponential growth in online
advertising and now this has become as a standard for small and large organisation. Online
advertising is also known as the internet advertising and digital advertising.
Applications of online advertising
Through online advertising can easily target the users by collecting the users informations
through social media like Facebook, Twitter, Instagram and many more. If there is any mistake
in the advertisement it can be easily corrected within short period. The information can be send
to the email regarding those advertisements. Consumers can be easily tracked by the online
advertising. The area is not limited in online advertising. It can be explored from local market to
the global market (Solomon, Dahl and Polegato, 2014). Advertising can be D done for 24/7 and
many brands and products can be reached to the consumers at the same time. It is very easy to
start online adverting and marketing with simple process and with small amount of pay. It can be
started at any time as per your convenience is very helpful in taking the feedback and follow ups
of consumers.
Risk of online advertising
Leakage of the personal information is one of the biggest risk of the online advertising.
The advertising organisation steal the personal information of the users without their permission.
Sometimes there are the fake ads so the customers should be aware of those fake ads. Tasteless
jokes made over organisation cause the bad influence for the reputed one.
Classical methods of online advertising
Classical methods of online advertising refers to the old ways of promoting
organisational goods and services by using internet and digital technologies. For example, banner
advertising. Classical methods used by the marketers in order to promote the products and
services of organisation to large number of customers (Hamzah and Sutanto, 2016). Banner
advertising is also referred as display advertising which is opposite of text only advertising
because of its visual nature of banner advertisements. The purpose of banner advertising is to
promote a brand. The banner advertisement can take the visitor from the host website to the
advertisers' website or specific landing page. The advertisement that displayed into a web page
17
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through web banner is known as banner advertisement. Banner advertisements are rectangular
graphic display which are located either at top side or bottom side of any website.
Leaderboard is known as the former banner advertisement where as latter is called
skyscraper which is positioned at the sidebar of the website. The banner advertisement can be
static or animated depending on the technology which are used to create them. The static banner
ad is simple graphical image which is displayed on the websites (Zekiri and HASANI, 201). By
clicking on the image, the user can directly go to the landing page of website of which the
advertisement is displayed. Animated banner advertisement or web banner is a form of digital
advertising which is delivered by an advertisement server. Purpose of animated banner is same
as of static advertisement but it helps in attracting users and customers in effective and efficient
manner. The website traffic is generated by banner advertisement just by linking with it. It helps
18
Illustration 4: Banner Ads
(Source: Katai, 2017)
graphic display which are located either at top side or bottom side of any website.
Leaderboard is known as the former banner advertisement where as latter is called
skyscraper which is positioned at the sidebar of the website. The banner advertisement can be
static or animated depending on the technology which are used to create them. The static banner
ad is simple graphical image which is displayed on the websites (Zekiri and HASANI, 201). By
clicking on the image, the user can directly go to the landing page of website of which the
advertisement is displayed. Animated banner advertisement or web banner is a form of digital
advertising which is delivered by an advertisement server. Purpose of animated banner is same
as of static advertisement but it helps in attracting users and customers in effective and efficient
manner. The website traffic is generated by banner advertisement just by linking with it. It helps
18
Illustration 4: Banner Ads
(Source: Katai, 2017)
in raising awareness of brand as the function of web banners is like regular print advertisement
which inform, notify about a new product, increase brand awareness and so on.
Ad networks are responsible for matching advertisers to websites that want to sell
advertising. In 1994, the first banner advertisement was deployed on Wired Magazines' website.
Traditional banner advertising has expanded to other kinds like Instagram sponsored
advertisement, Facebook advertisement, etc. Facebook and Twitter account for roughly one-third
of online display advertising spending. The trend in online advertising has seen digital display ad
spending surpass that of search-based ads in recent years. As of 2017, roughly one-fifth of all
online ad spending goes to digital display ads, such as banner ads and similar ads. Visual ads are
the original form of marketing that appears on the third party websites usually related to the users
content and services. Display advertisement are like banner advertisement (Foxall, 2014). The
purpose of display advertising is to promote a brand. The display advertisement can take the
visitor from the host website to the advertisers' website or specific landing page.
The advertisement that displayed into a web page through web display is known as
banner advertisement. Display ads are modified from the banner ads with many formats like
Static images: Rectangular or the square ads that appear around the contents called the static
images. These are the basic banners of display ads. Text: Text ads are relevant to the
surroundings and created by algorithms. Floating banners: These ads are usually seen as a
moving or floating content across the screen. Wallpaper which are generally these appear and the
background of a website is changed covering whole page. Pop-up ads: Pop-up ads appear as a
new window in front of the website content and as it is clicked it opens as a new window
(Silverman, 2016).
3.2 New Methods of Online Advertising
With the increase in technological growth and development, new and latest technologies are used
by the marketers of today's organisation in order to create interactive and attractive
advertisement that are able to attract more and more customers towards the organisation. In order
to sustain in the competitive environment it is essential and important for the management of
business organisation to implement latest and advance technologies (Lavanya and Saraswathi,
2018). It not only enhances the productivity and profitability of the organisation but also
provides competitive advantages. Technologies indeed transformed the world of online
advertisement. In this context, researcher in this section will provide information about modern
19
which inform, notify about a new product, increase brand awareness and so on.
Ad networks are responsible for matching advertisers to websites that want to sell
advertising. In 1994, the first banner advertisement was deployed on Wired Magazines' website.
Traditional banner advertising has expanded to other kinds like Instagram sponsored
advertisement, Facebook advertisement, etc. Facebook and Twitter account for roughly one-third
of online display advertising spending. The trend in online advertising has seen digital display ad
spending surpass that of search-based ads in recent years. As of 2017, roughly one-fifth of all
online ad spending goes to digital display ads, such as banner ads and similar ads. Visual ads are
the original form of marketing that appears on the third party websites usually related to the users
content and services. Display advertisement are like banner advertisement (Foxall, 2014). The
purpose of display advertising is to promote a brand. The display advertisement can take the
visitor from the host website to the advertisers' website or specific landing page.
The advertisement that displayed into a web page through web display is known as
banner advertisement. Display ads are modified from the banner ads with many formats like
Static images: Rectangular or the square ads that appear around the contents called the static
images. These are the basic banners of display ads. Text: Text ads are relevant to the
surroundings and created by algorithms. Floating banners: These ads are usually seen as a
moving or floating content across the screen. Wallpaper which are generally these appear and the
background of a website is changed covering whole page. Pop-up ads: Pop-up ads appear as a
new window in front of the website content and as it is clicked it opens as a new window
(Silverman, 2016).
3.2 New Methods of Online Advertising
With the increase in technological growth and development, new and latest technologies are used
by the marketers of today's organisation in order to create interactive and attractive
advertisement that are able to attract more and more customers towards the organisation. In order
to sustain in the competitive environment it is essential and important for the management of
business organisation to implement latest and advance technologies (Lavanya and Saraswathi,
2018). It not only enhances the productivity and profitability of the organisation but also
provides competitive advantages. Technologies indeed transformed the world of online
advertisement. In this context, researcher in this section will provide information about modern
19
methods of online advertising which are used by the marketers in order to retain and attract
customers.
Types of online advertising
Pixel Advertising
It is considered as modern type of online advertising in which the cost of advertisement is
estimated on the basis of number of pixels it occupies. The type of advertisement is found in
2005 when British Student came up with website called The Million Dollar Homepage where
advertisers could buy advertising space at the rate of $1 per pixel with a space limit of one
million pixels (Durmaz, 2014).
Flash: These are also moving ads and flash the different content to the viewer.
Video: Ads with small videos that is auto played or wait for the video to be played by the user.
Social Media Ads: Social media communication is one of the most famous and commonly used
media for today's generation. A hub of youths are found over social media so it is one the best
target for online advertising example Facebook has all basic information’s of an individual like
age, non-educational qualification, interests and many more (Rani, 2014). By taking advantages
of these informations ads can be displayed accordingly
Search Engine Marketing: This branch of online advertising is the practice of online marketing
business using paid advertisement.
Native advertising: These ads are sponsored listing often found in social media feeds.
Re-marketing: These types of ads are once dropped to the users in form of cookie and whenever
the user again go through the web, the ads will appear over and over to remind the products or
services.
Advertising is a rich cultural method of promoting the goods, services and ideas to the
consumers. The advertising method is now changed totally in last few years and it is explored to
online advertising. Now a day online advertising is one the best and fastest way of promoting the
business in the market. Every sector is moving rapidly towards the online advertising.
There are many tools and techniques that speed up the online advertising. Internet is playing the
most important contribution in smooth running of online advertising and marketing. Global
marketing has become too easy only due to the reach of internet through all over the world.
Consumers are always kept in touch regarding new and fresh arrival goods and services. These
20
customers.
Types of online advertising
Pixel Advertising
It is considered as modern type of online advertising in which the cost of advertisement is
estimated on the basis of number of pixels it occupies. The type of advertisement is found in
2005 when British Student came up with website called The Million Dollar Homepage where
advertisers could buy advertising space at the rate of $1 per pixel with a space limit of one
million pixels (Durmaz, 2014).
Flash: These are also moving ads and flash the different content to the viewer.
Video: Ads with small videos that is auto played or wait for the video to be played by the user.
Social Media Ads: Social media communication is one of the most famous and commonly used
media for today's generation. A hub of youths are found over social media so it is one the best
target for online advertising example Facebook has all basic information’s of an individual like
age, non-educational qualification, interests and many more (Rani, 2014). By taking advantages
of these informations ads can be displayed accordingly
Search Engine Marketing: This branch of online advertising is the practice of online marketing
business using paid advertisement.
Native advertising: These ads are sponsored listing often found in social media feeds.
Re-marketing: These types of ads are once dropped to the users in form of cookie and whenever
the user again go through the web, the ads will appear over and over to remind the products or
services.
Advertising is a rich cultural method of promoting the goods, services and ideas to the
consumers. The advertising method is now changed totally in last few years and it is explored to
online advertising. Now a day online advertising is one the best and fastest way of promoting the
business in the market. Every sector is moving rapidly towards the online advertising.
There are many tools and techniques that speed up the online advertising. Internet is playing the
most important contribution in smooth running of online advertising and marketing. Global
marketing has become too easy only due to the reach of internet through all over the world.
Consumers are always kept in touch regarding new and fresh arrival goods and services. These
20
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online tools and techniques maintain the continuous relationship of consumers with different
services. These are also very helpful in getting the feedback of the consumers through online
methods. Many online methods are running through internet but one the most common famous
media for online advertising is social media.
Social Media
There are number of social media networks which are used for advertising purpose.
Social media contain the basic personal information’s of an individual. These information’s are
helpful in knowing the locations, attitude, and choices of the consumers.
Here one of the most famous example of online marketing is ALIBABA (Goldsmith, 2016). It is
Chinese multinational e-commerce, retail services across the world. It is one of the most top 10
valuable companies in the world. If one time the site of Alibaba is logged in with the help of
your goggle account, Facebook account or with you’re any other social media account, you
started to get the notifications related to the schemes and offers. So many social sites are
connected with these types of online advertisements like Gmail, Instagram, Twitter, Pinterest,
LinkedIn, etc.
21
Illustration 5: Social Media Advertisement
(Source: Social Media Ads: How To Measure & What To Look Out For, 2018)
services. These are also very helpful in getting the feedback of the consumers through online
methods. Many online methods are running through internet but one the most common famous
media for online advertising is social media.
Social Media
There are number of social media networks which are used for advertising purpose.
Social media contain the basic personal information’s of an individual. These information’s are
helpful in knowing the locations, attitude, and choices of the consumers.
Here one of the most famous example of online marketing is ALIBABA (Goldsmith, 2016). It is
Chinese multinational e-commerce, retail services across the world. It is one of the most top 10
valuable companies in the world. If one time the site of Alibaba is logged in with the help of
your goggle account, Facebook account or with you’re any other social media account, you
started to get the notifications related to the schemes and offers. So many social sites are
connected with these types of online advertisements like Gmail, Instagram, Twitter, Pinterest,
LinkedIn, etc.
21
Illustration 5: Social Media Advertisement
(Source: Social Media Ads: How To Measure & What To Look Out For, 2018)
One of the new method of advertising is USERS' RATING METHOD. This is new but it's like a
hidden way of advertisement. When a product is purchased by the customers, a feedback is asked
in form of star ranking or in digital ranking (Horner and Swarbrooke, 2016). Our rating is very
important for them because it is helps them to give us better services in the future. During the
rating of any product, one has to think again about that very product and this goes to our upper
subconscious mind. This is the way how rating advertisement is done.
Nowadays it's common to post pictures or captions of our newly purchased stuffs over
the social media. This is also a way of online advertisement, furthermore it's not our concern that
we want to advertise the services of other one but we do it. For example a luxurious car “AUDI”
is purchased by someone and he posts his caption with AUDI picture over social media.
Obviously advertisement is being done indirectly.
Meeting and talking are the main two nature of human being. The time when people
meet, they like to talk about the things. This psychology is read by the business men moulder and
they started to make the things more attractive (Fleming and Koppelman, 2016). Everyone likes
to talk about the attractive and beautiful things. This is one of the best way of advertising of
products and services. This is the reason the packaging, servicing, and the quality of the products
are raised to attract more and more people. They want us to make in such a wiling condition so
that he\she starts to talk about the things with their friends, relatives, colleges and many more.
This is called the advertisement through word-of-mouth.
These all different ways of advertisement are very helpful in making connections with the
people. A good market flow can not be imagined without the advertising system.
People are willing to be updated through advertisement so that they may have the market
information’s. Advertising system is a strong pillar for the promotions of the goods and services.
22
hidden way of advertisement. When a product is purchased by the customers, a feedback is asked
in form of star ranking or in digital ranking (Horner and Swarbrooke, 2016). Our rating is very
important for them because it is helps them to give us better services in the future. During the
rating of any product, one has to think again about that very product and this goes to our upper
subconscious mind. This is the way how rating advertisement is done.
Nowadays it's common to post pictures or captions of our newly purchased stuffs over
the social media. This is also a way of online advertisement, furthermore it's not our concern that
we want to advertise the services of other one but we do it. For example a luxurious car “AUDI”
is purchased by someone and he posts his caption with AUDI picture over social media.
Obviously advertisement is being done indirectly.
Meeting and talking are the main two nature of human being. The time when people
meet, they like to talk about the things. This psychology is read by the business men moulder and
they started to make the things more attractive (Fleming and Koppelman, 2016). Everyone likes
to talk about the attractive and beautiful things. This is one of the best way of advertising of
products and services. This is the reason the packaging, servicing, and the quality of the products
are raised to attract more and more people. They want us to make in such a wiling condition so
that he\she starts to talk about the things with their friends, relatives, colleges and many more.
This is called the advertisement through word-of-mouth.
These all different ways of advertisement are very helpful in making connections with the
people. A good market flow can not be imagined without the advertising system.
People are willing to be updated through advertisement so that they may have the market
information’s. Advertising system is a strong pillar for the promotions of the goods and services.
22
CHAPTER 4: PSYCHOLOGY OF THE BUYING PROCESS
Introduction
Consumer buying decision is the decision made by consumers by proper analysing the
pros and cons associated with the products and services (Harrison and Lock, 2017). Every
customer have his or her own unique psychology of purchasing particular products and services.
In this context, researcher in the present chapter will analyse the psychology of buying process.
Researcher will elaborate the offline and online process of purchasing and analyse the
psychology of customers reviewing the articles and journals written by authors and senior
researchers.
4.1 Offline Purchase process
Researchers stated that the buying decision process is the process of decision making
utilised by the customers in relation with market transactions before and after the purchase of
products and services. Buying process of customers greatly influence of the productivity and
profitability of the organisations (Kerzner, 2018). As organisations manufactures products and
services in order to attract and retain their target customers. Thus, their buying decision making
23
Illustration 6: Consumer Buying Process
(Source:Consumer Buying Process, 2014 )
Introduction
Consumer buying decision is the decision made by consumers by proper analysing the
pros and cons associated with the products and services (Harrison and Lock, 2017). Every
customer have his or her own unique psychology of purchasing particular products and services.
In this context, researcher in the present chapter will analyse the psychology of buying process.
Researcher will elaborate the offline and online process of purchasing and analyse the
psychology of customers reviewing the articles and journals written by authors and senior
researchers.
4.1 Offline Purchase process
Researchers stated that the buying decision process is the process of decision making
utilised by the customers in relation with market transactions before and after the purchase of
products and services. Buying process of customers greatly influence of the productivity and
profitability of the organisations (Kerzner, 2018). As organisations manufactures products and
services in order to attract and retain their target customers. Thus, their buying decision making
23
Illustration 6: Consumer Buying Process
(Source:Consumer Buying Process, 2014 )
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process greatly affects the organisational growth and development. Customer shows different
purchase behaviour when it comes to purchasing products from online stores and offline stores.
In this part, researcher will focus majorly on the behaviour of customers and their buying
decisions when they purchase specific goods and services from offline physical stores (Binder,
2016). Researchers have proposed various theories which enriched understanding about the
consumer buying process. There are six stages in consumer buying process and it is essential for
the marketers to analyse them effectively and efficiently before formulating marketing strategies.
The first stage in consumer buying decision process is to recognise the problem.
Customer only purchase new products or services when they face some problems and
issues. There is a rationale which influence the customers to go for purchasing new products and
services. Here, it is an opportunity for the marketers to identify the problem and formulate new
strategies in order to attract and influence the buying decision process of the consumers. In the
next stage, the consumer tries to search for relevant information (Carling, Han and Rudholm,
2014). Once the problem has been identified by the customer, he or she makes attempt to search
for information. This can be acquired either be done by surfing through internet or by interacting
with friends, family members and colleagues. After acquiring the information and analysing
different substitution of products, customers than evaluate the alternatives. This is the third stage
where precise and appropriate evaluation of alternatives products and services has been made by
the customers. This influence their buying decision process (Luo and Sun, 2016). Alternative that
provides ample of benefits has been selected by the customer in purchase decision stage. In this
fourth stage, the customer makes decision regarding purchase. At this point, customer have
explored multiple options and they comprehended the pricing and payment options and they are
able to decide whether to move forward with the purchase or not. In the fifth stage, the customer
finally purchase the product after completing research (O'Guinn, 2015). Customer tends to
purchase those products and services which provides them adequate benefits. In the last stage
customer makes post purchase evaluation.
4.2 Online purchase process
It is a process that a consumer will take a decision of purchase threw online market. This
includes the recognition of needs and wants, evaluation of choice, information search, purchase
and post purchase evaluation. It allows consumers to directly purchase services and goods from
the seller who sales their products by internet (Ison, 2014). In online shopping consumers find
24
purchase behaviour when it comes to purchasing products from online stores and offline stores.
In this part, researcher will focus majorly on the behaviour of customers and their buying
decisions when they purchase specific goods and services from offline physical stores (Binder,
2016). Researchers have proposed various theories which enriched understanding about the
consumer buying process. There are six stages in consumer buying process and it is essential for
the marketers to analyse them effectively and efficiently before formulating marketing strategies.
The first stage in consumer buying decision process is to recognise the problem.
Customer only purchase new products or services when they face some problems and
issues. There is a rationale which influence the customers to go for purchasing new products and
services. Here, it is an opportunity for the marketers to identify the problem and formulate new
strategies in order to attract and influence the buying decision process of the consumers. In the
next stage, the consumer tries to search for relevant information (Carling, Han and Rudholm,
2014). Once the problem has been identified by the customer, he or she makes attempt to search
for information. This can be acquired either be done by surfing through internet or by interacting
with friends, family members and colleagues. After acquiring the information and analysing
different substitution of products, customers than evaluate the alternatives. This is the third stage
where precise and appropriate evaluation of alternatives products and services has been made by
the customers. This influence their buying decision process (Luo and Sun, 2016). Alternative that
provides ample of benefits has been selected by the customer in purchase decision stage. In this
fourth stage, the customer makes decision regarding purchase. At this point, customer have
explored multiple options and they comprehended the pricing and payment options and they are
able to decide whether to move forward with the purchase or not. In the fifth stage, the customer
finally purchase the product after completing research (O'Guinn, 2015). Customer tends to
purchase those products and services which provides them adequate benefits. In the last stage
customer makes post purchase evaluation.
4.2 Online purchase process
It is a process that a consumer will take a decision of purchase threw online market. This
includes the recognition of needs and wants, evaluation of choice, information search, purchase
and post purchase evaluation. It allows consumers to directly purchase services and goods from
the seller who sales their products by internet (Ison, 2014). In online shopping consumers find
24
any product depend on his willingness. Online shopping is grown up according the growth of
internet and technology. An online store provides a wide variety of products to its customers.
Every customers must have knowledge of access to the internet and buy any product through
valid method of payment. A customer who have need of a product can purchase it from see the
photos and views of the product from internet (Amankwah-Amoah, 2017). The product is on
internet have all the information about the product specification, features and prices. The online
stores provide facility of “search” features to find specific brands, models and items. Use of this
technique is beneficial for learning that how to make our brand more effective (Horky and
Collier, 2016). This process is helpful for marketers better understand the whole process behind a
purchase by anyone. Understanding these process and implement new strategies according to
customers behaviour. It is lead to increases the number of satisfying customers. In the digital
marketing environment buying behaviour of any customer may not be influenced by the firm and
brand. In this environment people are use their computers, mobile phones, tablets, and other
digital devices to collecting information. It every consumer made more interaction with the
online sellers.
Electronic word of mouth is also known as WOM. The eWOM gives a rich source of
objective information about services and goods. It is a type of buzz marketing and it can become
viral speedily because it consists funny enough. In eWOM our focus around every person who
are on internet. It is a way to connect many people at a platform (Kukar-Kinney and Carlson,
2015). Anyone can do marketing of their products and services by using this method. It is a new
concept of marketing. If someone has new, funny and relevant to their product then they can
easily sell it. It is the most useful resource of information transmission. Internet provides a way
of sharing of information and opinions both from consumer to consumer (C2C) and business to
consumer (B2C). For this aspect communication refers as any positive and negative statement
which is made by actual, potential and former customers about a product, services and a
company (Harris and Nikitenko, 2014). This communication is made the availability to people
and institutions by the use of internet. Information which is created by consumers is helpful in
decision making on purchase threw eWOM because it provides consumers with indirect
experiences.
There are a number of studies of eWOM related effectiveness have been conducted.
These studies are in divided into two parts first is Individual Level and second is Market Level.
25
internet and technology. An online store provides a wide variety of products to its customers.
Every customers must have knowledge of access to the internet and buy any product through
valid method of payment. A customer who have need of a product can purchase it from see the
photos and views of the product from internet (Amankwah-Amoah, 2017). The product is on
internet have all the information about the product specification, features and prices. The online
stores provide facility of “search” features to find specific brands, models and items. Use of this
technique is beneficial for learning that how to make our brand more effective (Horky and
Collier, 2016). This process is helpful for marketers better understand the whole process behind a
purchase by anyone. Understanding these process and implement new strategies according to
customers behaviour. It is lead to increases the number of satisfying customers. In the digital
marketing environment buying behaviour of any customer may not be influenced by the firm and
brand. In this environment people are use their computers, mobile phones, tablets, and other
digital devices to collecting information. It every consumer made more interaction with the
online sellers.
Electronic word of mouth is also known as WOM. The eWOM gives a rich source of
objective information about services and goods. It is a type of buzz marketing and it can become
viral speedily because it consists funny enough. In eWOM our focus around every person who
are on internet. It is a way to connect many people at a platform (Kukar-Kinney and Carlson,
2015). Anyone can do marketing of their products and services by using this method. It is a new
concept of marketing. If someone has new, funny and relevant to their product then they can
easily sell it. It is the most useful resource of information transmission. Internet provides a way
of sharing of information and opinions both from consumer to consumer (C2C) and business to
consumer (B2C). For this aspect communication refers as any positive and negative statement
which is made by actual, potential and former customers about a product, services and a
company (Harris and Nikitenko, 2014). This communication is made the availability to people
and institutions by the use of internet. Information which is created by consumers is helpful in
decision making on purchase threw eWOM because it provides consumers with indirect
experiences.
There are a number of studies of eWOM related effectiveness have been conducted.
These studies are in divided into two parts first is Individual Level and second is Market Level.
25
Individual Level means the difference between these two lies that how the information is seen.
Market Level studies identify the product information process by viewing eWOM as
accumulated customer opinion (Durmaz, 2014). This will also give the relationship between its
market and other market levels. EWOM analyses the method which may lead to a more effective
and efficient study about the market. It helps consumers in their decision making. It is so
influential because of some factors. First, it provides people to sharing their information. People
like the networking and expressing their feelings to help others therefore eWOM could be seen
as a chain, one person share information and then this information is viral. Second is, people can
get advises from other people online. There are always seen that numbers of views under every
product. Third is, it makes trust in people. People not just believe any advertisement but they
take eWOM more into consideration.
So it is best from the traditional one due to the fact that via internet. It also gives to
monitor and analyses the BUZZ. There could be a negative feedback also comes but this is lead
to spot the mistakes and correct it (Bhatnagar and Syam, 2014). In eWOM BUZZ is start for
creating an excellent market campaign. It will become a trigger a response from the readers. It is
also uses for improving the product and services. It is just word of mouth. It uses the internet so
information is shares on a written text, videos even images as well. It reaches numbers of people
at the same time.
4.3 Similarities and differences 'offline and online' buying process
Comparison between online and offline consumer behaviour consists the values and life
styles of new generation. These values and life styles are two major factors which influenced the
buying behaviour of consumers. In the context of Similarities between online and offline
consumer, first similarity is both expect better customer service. Customer whether buy online or
buy offline has willing to get better customer service related to their products (Branson, Bin and
Murray, 2017). A consumer who purchase through online, want to get the best product in that
criteria. He will always think that which product he purchases is best in quality and also he pay
the right consideration for that product. In other hand consumer who purchase the product
through offline, always check properly that product. The second similarity is both type of
consumers are not like to pay shipping charges because they thought it is the cost which pay by
the seller. So there are many offers regarding reduce the shipping cost.
26
Market Level studies identify the product information process by viewing eWOM as
accumulated customer opinion (Durmaz, 2014). This will also give the relationship between its
market and other market levels. EWOM analyses the method which may lead to a more effective
and efficient study about the market. It helps consumers in their decision making. It is so
influential because of some factors. First, it provides people to sharing their information. People
like the networking and expressing their feelings to help others therefore eWOM could be seen
as a chain, one person share information and then this information is viral. Second is, people can
get advises from other people online. There are always seen that numbers of views under every
product. Third is, it makes trust in people. People not just believe any advertisement but they
take eWOM more into consideration.
So it is best from the traditional one due to the fact that via internet. It also gives to
monitor and analyses the BUZZ. There could be a negative feedback also comes but this is lead
to spot the mistakes and correct it (Bhatnagar and Syam, 2014). In eWOM BUZZ is start for
creating an excellent market campaign. It will become a trigger a response from the readers. It is
also uses for improving the product and services. It is just word of mouth. It uses the internet so
information is shares on a written text, videos even images as well. It reaches numbers of people
at the same time.
4.3 Similarities and differences 'offline and online' buying process
Comparison between online and offline consumer behaviour consists the values and life
styles of new generation. These values and life styles are two major factors which influenced the
buying behaviour of consumers. In the context of Similarities between online and offline
consumer, first similarity is both expect better customer service. Customer whether buy online or
buy offline has willing to get better customer service related to their products (Branson, Bin and
Murray, 2017). A consumer who purchase through online, want to get the best product in that
criteria. He will always think that which product he purchases is best in quality and also he pay
the right consideration for that product. In other hand consumer who purchase the product
through offline, always check properly that product. The second similarity is both type of
consumers are not like to pay shipping charges because they thought it is the cost which pay by
the seller. So there are many offers regarding reduce the shipping cost.
26
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All offers are giving by the seller to the consumer. Both the consumers either online or
offline like a good sale with several offers (Paswan and Ganesh, 2015). These offers contain
discounts, coupons and many more thing which are attracted to the consumers. The life style of
individuals in cities and the time and distance crunch is a big aspect. For this reason many
consumers shift their buying behaviour from offline to online platforms. In today's life every
person have their hectic schedule so they feel much better to purchase through online. They
spend lots of time on internet and digital market so they ever see new offers, new products and
those products which will help in make better living standards (Yamagata-Lynch, Cowan and
Luetkehans, 2015). This is the major difference between them. Although offline process is trust
worthy but in present days every seller provides better services regarding their products. They
will do it because to maintain their brand image and customer loyalty.
27
offline like a good sale with several offers (Paswan and Ganesh, 2015). These offers contain
discounts, coupons and many more thing which are attracted to the consumers. The life style of
individuals in cities and the time and distance crunch is a big aspect. For this reason many
consumers shift their buying behaviour from offline to online platforms. In today's life every
person have their hectic schedule so they feel much better to purchase through online. They
spend lots of time on internet and digital market so they ever see new offers, new products and
those products which will help in make better living standards (Yamagata-Lynch, Cowan and
Luetkehans, 2015). This is the major difference between them. Although offline process is trust
worthy but in present days every seller provides better services regarding their products. They
will do it because to maintain their brand image and customer loyalty.
27
CHAPTER 5: PROJECT MANAGEMENT AND MARKETING FOR
ONLINE SHOPS
Introduction
Project management is considered to be crucial and challenging task in marketing. It is
the duty and responsibility of marketing manager to coordinate with project manager in order to
devise effective and efficient marketing plan for the organisation (Carling, Han and Rudholm,
2015). In order to sustain in competitive environment it is essential and important for the
marketing manager to propose robust and efficient marketing plan which helps in retaining and
attracting more and more customers. In this context, the following chapter will focus on
analysing the phases of project management for a product launch with reference to 'Shockliner'
which is an innovative product.
5.1 Phases of project management for a product launch
28
Illustration 7: Phases of project management
(Source: Project Management Life Cycle: Complete Guide, 2017 )
ONLINE SHOPS
Introduction
Project management is considered to be crucial and challenging task in marketing. It is
the duty and responsibility of marketing manager to coordinate with project manager in order to
devise effective and efficient marketing plan for the organisation (Carling, Han and Rudholm,
2015). In order to sustain in competitive environment it is essential and important for the
marketing manager to propose robust and efficient marketing plan which helps in retaining and
attracting more and more customers. In this context, the following chapter will focus on
analysing the phases of project management for a product launch with reference to 'Shockliner'
which is an innovative product.
5.1 Phases of project management for a product launch
28
Illustration 7: Phases of project management
(Source: Project Management Life Cycle: Complete Guide, 2017 )
Project management is considered to be challenging and critical task as it requires
enormous amount of skills and competencies. In marketing for online shops, developing a
precise plan is more challenging as management needs to cover the aspects in each and every
activity in effective and efficient manner. In this context, the phases of project management is
described below: Project Initiation: This is the first stage of project management plan is project initiation.
In this phase, the project manger values and measure the feasibility of the marketing
project. There are two evaluation tools which are used by the project manager which are
business case documents and feasibility study (Wilbur, 2015). Business case documents
justifies the need for project and it includes estimates of potential financial benefits.
Feasibility study tool is used for evaluation of project goals, timeline and costs which
helps in determining whether the project is able to execute or not. Project Planning: This is the second stage in the project management where project
manager devise and develop project management plan. In the project management plan,
manager estimates cost, determine resource and prepare work breakdown structure. In
this phase, the risks which are associated with the projects are identified. Project Execution: This is the third phase of project management plan where the project
manager carried out the project activities. Execution is all about building deliverables that
satisfy the customers. Team leaders make this happen by allocating resources and
keeping team members focused on their assigned task. Project Monitoring and control: This is fourth phase of project management where
project manager supervise the project activities and control it so that the desired project
aims and objectives can be accomplished effectively and efficiently (Van Reijmersdal,
Rozendaal and Buijzen, 2017).
Project Closure: This is the last phase of project management. Project management
terminates the project after it successfully able to deliver and able to satisfy the customer.
In marketing project, the closure of project means the marketing activities has been
successfully implemented and delivers in the market.
29
enormous amount of skills and competencies. In marketing for online shops, developing a
precise plan is more challenging as management needs to cover the aspects in each and every
activity in effective and efficient manner. In this context, the phases of project management is
described below: Project Initiation: This is the first stage of project management plan is project initiation.
In this phase, the project manger values and measure the feasibility of the marketing
project. There are two evaluation tools which are used by the project manager which are
business case documents and feasibility study (Wilbur, 2015). Business case documents
justifies the need for project and it includes estimates of potential financial benefits.
Feasibility study tool is used for evaluation of project goals, timeline and costs which
helps in determining whether the project is able to execute or not. Project Planning: This is the second stage in the project management where project
manager devise and develop project management plan. In the project management plan,
manager estimates cost, determine resource and prepare work breakdown structure. In
this phase, the risks which are associated with the projects are identified. Project Execution: This is the third phase of project management plan where the project
manager carried out the project activities. Execution is all about building deliverables that
satisfy the customers. Team leaders make this happen by allocating resources and
keeping team members focused on their assigned task. Project Monitoring and control: This is fourth phase of project management where
project manager supervise the project activities and control it so that the desired project
aims and objectives can be accomplished effectively and efficiently (Van Reijmersdal,
Rozendaal and Buijzen, 2017).
Project Closure: This is the last phase of project management. Project management
terminates the project after it successfully able to deliver and able to satisfy the customer.
In marketing project, the closure of project means the marketing activities has been
successfully implemented and delivers in the market.
29
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5.2 "Shockliner" as an innovative product
Powerslide Vi Shockliner is high quality and unique design roller skates which offers
truly fantastic off road experience. It is design for hard Nordic training on every surface. By
using this skate, user can skate almost everywhere i.e. on and off road, smooth or rough terrain,
etc. It is similar to snowboard binding which can carve and jump around like any pro
snowboarder without losing control (Richardson, Ganz and Vallone, 2015). In order to create
project management plan for marketing Shockliner, the management of organisation needs to
develop robust strategies and create empirical research in order to gain reviews of customers
about it.
5.2.1 Presentation of the product innovation of "Shockliner"
Shockliner was manufactured by Powerslide which is United States based skates
manufacturing company. Shockliner was introduced in 2012 which possess similar characteristic
that of Coyote skates. The design of skates were appropriate and can be adjustable as per the
requirements of its users. It comes in three colour segments which are red, white and black. The
30
Illust
ration 8: Shockliner
(Source: POWERSLIDE VI SHOCKLINER 125MM ROLLERSKI, 2018)
Powerslide Vi Shockliner is high quality and unique design roller skates which offers
truly fantastic off road experience. It is design for hard Nordic training on every surface. By
using this skate, user can skate almost everywhere i.e. on and off road, smooth or rough terrain,
etc. It is similar to snowboard binding which can carve and jump around like any pro
snowboarder without losing control (Richardson, Ganz and Vallone, 2015). In order to create
project management plan for marketing Shockliner, the management of organisation needs to
develop robust strategies and create empirical research in order to gain reviews of customers
about it.
5.2.1 Presentation of the product innovation of "Shockliner"
Shockliner was manufactured by Powerslide which is United States based skates
manufacturing company. Shockliner was introduced in 2012 which possess similar characteristic
that of Coyote skates. The design of skates were appropriate and can be adjustable as per the
requirements of its users. It comes in three colour segments which are red, white and black. The
30
Illust
ration 8: Shockliner
(Source: POWERSLIDE VI SHOCKLINER 125MM ROLLERSKI, 2018)
boot of the Powerslide Vi Shockliner is broadly based on the fitness skates of the Vi Range. It is
developed from high quality cut sole CFK composite which is a mixture of class, carbon and
polymer fibres. The boot is topped with white cuff which also proves to be rigid, after
examination it was identified that it is made of glass, carbon and polymer fibres. Overall the
quality of skates were optimum and it can be attracted many customers who prefer some off-road
skating (Rani, 2014). The marketing is mostly done by marketers using digital marketing sources
such as social media advertising, video advertising and mobile marketing. For offline marketing,
the management demonstrate the product in several events and marketing campaigns. The
product was able to generate attraction of users who have viewed its advertisement. Powerslide
choose to promote the product by using online marketing methods as it turns to be very effective
for their organisation. Though, investing sufficient amount in promotion and advertising,
Shockliner was not able to become the apple of customer’s eyes. The product failed miserably
and was not able to generate ample of buyers. It was identified that the product was
extravagantly expensive due to which customers tends to avoid purchasing it. The price of
product in United States was $400.
5.2.2 Reasons for insufficient market establishment of the new product
There are various reasons for insufficient market establishment of new product.
Shockliner was introduced in 2012 as an off road skate which provides high quality experience
to the skater who dreamed to skate in off road tracks. Despite of its quality, features and efficacy,
the company won't able to generate ample amount of profits out from it. In this context, the
reason for failure of Shockliner is described below: Failure to understand consumer needs and wants: The first and foremost reason of
failure of Shockliner was the failure to understand the needs and wants of the customers.
Powerslide manufactured the Shockliner in 2012 and introduced in the market. At that
time, customers does not show that much enthusiasm regarding the product. Thus,
becomes the reason for failure of product. Fixing nonexistent problems: The second reason for product failure is focusing on not
required issue. The Shockliner was not the first off road skates. Before that, similar
product named Coyote was launched by the company. All the company did in Shockliner
was introducing adjustable suspension which helps in reducing shock effects.
31
developed from high quality cut sole CFK composite which is a mixture of class, carbon and
polymer fibres. The boot is topped with white cuff which also proves to be rigid, after
examination it was identified that it is made of glass, carbon and polymer fibres. Overall the
quality of skates were optimum and it can be attracted many customers who prefer some off-road
skating (Rani, 2014). The marketing is mostly done by marketers using digital marketing sources
such as social media advertising, video advertising and mobile marketing. For offline marketing,
the management demonstrate the product in several events and marketing campaigns. The
product was able to generate attraction of users who have viewed its advertisement. Powerslide
choose to promote the product by using online marketing methods as it turns to be very effective
for their organisation. Though, investing sufficient amount in promotion and advertising,
Shockliner was not able to become the apple of customer’s eyes. The product failed miserably
and was not able to generate ample of buyers. It was identified that the product was
extravagantly expensive due to which customers tends to avoid purchasing it. The price of
product in United States was $400.
5.2.2 Reasons for insufficient market establishment of the new product
There are various reasons for insufficient market establishment of new product.
Shockliner was introduced in 2012 as an off road skate which provides high quality experience
to the skater who dreamed to skate in off road tracks. Despite of its quality, features and efficacy,
the company won't able to generate ample amount of profits out from it. In this context, the
reason for failure of Shockliner is described below: Failure to understand consumer needs and wants: The first and foremost reason of
failure of Shockliner was the failure to understand the needs and wants of the customers.
Powerslide manufactured the Shockliner in 2012 and introduced in the market. At that
time, customers does not show that much enthusiasm regarding the product. Thus,
becomes the reason for failure of product. Fixing nonexistent problems: The second reason for product failure is focusing on not
required issue. The Shockliner was not the first off road skates. Before that, similar
product named Coyote was launched by the company. All the company did in Shockliner
was introducing adjustable suspension which helps in reducing shock effects.
31
Targeting in wrong market: Targeting in the wrong market can be considered to be the
third factor which leads to the failure of the product. The management of Powerslide was
not able to promote it in the appropriate market and thus, leads to its failure.
Incorrect Pricing: The price of Shockliner was extensively high due to which many of
the customers avoid purchasing it. This can be considered to be another reason of failure
of Shockliner.
5.3 Possibilities and tools for better marketability of Shockliner recommendations
In order to sustain in the competitive environment, it is essential and important for the
management of Powerslide to use appropriate tools and approaches of marketing in order to
converts the failure of Shockliner into success. With this aspect, the recommendations for
enhancing the marketability of Shockliner is described below: Precise and appropriate research: In order to enhance the marketability of Shockliner, it
is being recommended to the management of Power slide to conduct appropriate and
precise research which could help in gaining right information about the market
conditions. Identifying customers’ needs and expectations: Identifying needs and expectations of
customers is rudimentary and essential before launching new product. It is being
recommended to the management of Powerslide to analyses the needs and expectations of
customers before launching new product.
Price Strategy: Price strategy plays prominent role in enhancing the marketability of the
product. Setting right price of product will help in attracting more and more customers
towards it. Thus, it is being recommended to the management of Powerslide to set right
price of the product.
32
third factor which leads to the failure of the product. The management of Powerslide was
not able to promote it in the appropriate market and thus, leads to its failure.
Incorrect Pricing: The price of Shockliner was extensively high due to which many of
the customers avoid purchasing it. This can be considered to be another reason of failure
of Shockliner.
5.3 Possibilities and tools for better marketability of Shockliner recommendations
In order to sustain in the competitive environment, it is essential and important for the
management of Powerslide to use appropriate tools and approaches of marketing in order to
converts the failure of Shockliner into success. With this aspect, the recommendations for
enhancing the marketability of Shockliner is described below: Precise and appropriate research: In order to enhance the marketability of Shockliner, it
is being recommended to the management of Power slide to conduct appropriate and
precise research which could help in gaining right information about the market
conditions. Identifying customers’ needs and expectations: Identifying needs and expectations of
customers is rudimentary and essential before launching new product. It is being
recommended to the management of Powerslide to analyses the needs and expectations of
customers before launching new product.
Price Strategy: Price strategy plays prominent role in enhancing the marketability of the
product. Setting right price of product will help in attracting more and more customers
towards it. Thus, it is being recommended to the management of Powerslide to set right
price of the product.
32
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CHAPTER 6: CONCLUSION AND OUTLOOK
From the above empirical study, it can be concluded that there is vast difference between
online and offline mode of trading, marketing and consumer purchase behavior. In this context,
the following study able to summaries the definition of online and offline trading and was able to
identify the difference and similarities between them. Online marketing trend embarked with
beginning of internet revolution. Internet is now accessible in every part of world which allows
ample of opportunities to the marketers through which they can promote and advertise
organisational products and services to enormous amount of population. Furthermore, researcher
have described the meaning and methods of online advertising in brief and succinct manner.
Researcher comprehends the customer's psychology of buying process by considering both
online and offline purchase. The project management and marketing for online shops such as
Powerslide has been elaborated by researcher in empirical study. Powerslide Vi Shockliner is
high quality and unique design roller skates which offers truly fantastic off road experience. It is
design for hard Nordic training on every surface. By using this skate, user can skate almost
everywhere i.e. on and off road, smooth or rough terrain, etc. Project management plan for
internet and in online shops are crucial and critical. It is the duty and responsibility of the
marketer to produce and devise specific plan and strategy in order to accomplish the aim and
objectives of the organisation.
33
From the above empirical study, it can be concluded that there is vast difference between
online and offline mode of trading, marketing and consumer purchase behavior. In this context,
the following study able to summaries the definition of online and offline trading and was able to
identify the difference and similarities between them. Online marketing trend embarked with
beginning of internet revolution. Internet is now accessible in every part of world which allows
ample of opportunities to the marketers through which they can promote and advertise
organisational products and services to enormous amount of population. Furthermore, researcher
have described the meaning and methods of online advertising in brief and succinct manner.
Researcher comprehends the customer's psychology of buying process by considering both
online and offline purchase. The project management and marketing for online shops such as
Powerslide has been elaborated by researcher in empirical study. Powerslide Vi Shockliner is
high quality and unique design roller skates which offers truly fantastic off road experience. It is
design for hard Nordic training on every surface. By using this skate, user can skate almost
everywhere i.e. on and off road, smooth or rough terrain, etc. Project management plan for
internet and in online shops are crucial and critical. It is the duty and responsibility of the
marketer to produce and devise specific plan and strategy in order to accomplish the aim and
objectives of the organisation.
33
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from brick-and-mortar and online outlets.
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Bricks-and-mortar vs online. Journal of Business Research, 67(6), pp.1293-1302.
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