Online Marketing | EssayIvy.com

Running Head: THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN

THE CORPORATE WORLD

The Effects and Level of Adoption of Online Marketing in the Corporate World

Name

Institution

Date

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 2

Abstract

The study seeks to determine the effects and levels of adoption of adoption of online

marketing in the corporate world. Various literatures were mainly sought from journals containing

previous and current studies on online marketing adoption in the corporate world. The literature

was reviewed on marketing in the corporate world, benefits and drivers of online marketing and

the potential hindrances to online marketing adoption.

The study adopted an experimental research design with a target population of 100

respondent randomly selected in the New York City. The research found out that online marketing

was yet to be adopted although, youthful business owners had largely embraced it. Similarly,

online marketing was found to be effective in business operations since it enhanced costs and

operational efficiency.

The study recommends on the need by corporate organizations to embrace online

marketing in order to compete effectively for the tech-survey consumer. In addition, the research

noted that adoption of online marketing will lead to the growth and advancement of new business

technologies.

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 3

Introduction

Online marketing, also referred as online or Internet advertising is defined by Chaffey

(2007), as a form of publicity and marketing which employs the Internet to channel or relay to the

target market, promotional marketing messages. It involves marketing social media platforms,

search engines (SEM), email and many types of display advertising including mobile advertising

and web banner advertising. Just like other advertising media platforms, online marketing brings

together both the advertiser who is the source of the content to be displayed or advertised and the

publisher who in turn integrates advertisements into the preferred online platform.

In addition, online marketing may also be viewed as the application of digital technologies

to engage in marketing activities with the aim of attracting and retaining customers as well as

enhancing profitability.

Internet usage for business is arguably the most modern business practice in the world.

Since the current crop of consumers of products and services have embraced online based

shopping, it is only prudent that businesses and the entire corporate world also employ online-

based platforms to market their goods and services. It is now clear that the activity of marketing

has gone through numerous changes over the years where the regular driving force is the advent

of technology including the internet. The Internet can be defined as the network linking computer

devices across the globe.

The inception of the internet in the various sectors such as health, industry, academia,

marketing and hospitality has evoked new trends such as E-commerce.it has also changed how the

marketing of goods and services is done leaving marketers with limited options about the

profession but just to adhere to this trend. Harrigan et al., 2011 maintained that the current

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 4

information and communication technology has played a significant role in all the elements if the

marketing mix.

The adoption of the Internet in business is dependent upon how consumers perceive and

access the internet. Lenhart et al., (2010) studied the mobile internet and social networks usage

among young adults and teenagers. They found out that 93% of consumers among the teens and

young adults searched online for products and services of their choice. The study recommended

on the need for small business enterprises to embrace online marketing to reach their target

audiences across the various online platforms.

Consequently, as compared to traditional media channels internet marketing is more

beneficial regarding effectiveness and efficiency. When implemented, internet marketing

strategies may improve operational efficiency, customer relationships, marketing effectiveness as

well as improving the overall firm’s performance. Whereas large scale organizations are benefiting

from internet marketing, small and medium enterprises are still left behind regarding adoption.

(Harrigan et al., 2012)

Research Questions

The main objective of this study is to determine the effects of the adoption of online marketing

and the extent of the adoption in the corporate world. The main question for the study was; what

are the effects and levels of adoption of online marketing in the corporate world? To help

understand further the main objective, the following specific questions will be adopted.

a) What is the role of marketing in the corporate world?

b) What are the benefits of the adoption of online marketing in the corporate world?

c) What are the factors influencing the adoption of online marketing in the corporate world?

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 5

d) What are the challenges to successful implementation of online marketing in the corporate

world?

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 6

Related Work

This section will review the literature related to the adoption of online marketing by the

various organizations and the potential effects of the integration of internet marketing in business.

The study will provide a broad analysis of information and data present in peer-reviewed journals,

corporate and treasury websites as well as published books.

Besides, the study will identify the following topics for review to enhance coherence and

understanding among the readers. Marketing in the corporate world, benefits of online marketing

adoption, corporate entities adoption of online marketing, factors leading to online marketing

adoption in business and the challenges to successful internet marketing adoption.

Marketing in the corporate world

Walsh and Lipinski (2009) conducted a study on the roles played by the marketing arms

in small and medium sized enterprises in the mid‐Atlantic region of the United States involving

100 SMEs. The study found out that the marketing services of small and medium enterprises were

not as advanced and developed as those of large corporations. They averred that consumer or

market type and the orientation of the firm facilitated the marketing influence within an

organization. The study concluded that although the marketing departments of organizations were

responsible for marketing the firm’s goods and services, they must adopt additional means to

enhance product outreach to the changing consumer including online marketing.

Another study by Oun (2012) on exploring marketing strategies in small businesses,

demonstrated that SMEs marketing activities focused on customer-oriented channels such as word

of mouth, networking and partnership development. On the other hand, Centeno and Hart (2012)

analyzed the use of communication activities in the development of SMEs enterprise brands. They

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 7

found out that business owners were conversant with brand communication strategies that involved

e-mailing, personal selling, and online activities.

Benefits of adoption of internet marketing

Various researchers have demonstrated the potential benefits to enterprises on adoption of

internet marketing, although a majority of them drew more focus on the advantages accruing to

the small and medium enterprises. Kim et al. (2011) conducted a study of small and medium

businesses in the United States and concluded that the internet marketing had the potential to

advance firms to become more competitive and further increase their revenue streams.

Consequently, Hanafizadeh et al. (2012) drew a comparison between traditional media platforms

such as radio, TV, advertising and print media with online marketing. Online marketing was hailed

over traditional media channel for its immediate response, personification, interactivity and

precision.

Besides, Hamidi & Safabakhsh, (2011) demonstrated that the employment of online

marketing had the potential to enhance a firm’s operational efficiency thereby stimulating the

required growth. They compared online marketing with other traditional channels and concluded

that Internet marketing is way much affordable and further offer various opportunities for firms

that help them attain operational and marketing efficiency through cost reduction. Online

marketing was thus seen to be enhancing firms’ efficiencies through reduced marketing

expenditure.

Another study by Berman& Kesterson (2012) that surveyed 230 advertising agents and

agency leaders indicated that a majority (60%) shifted at least 30% of their traditional marketing

expenditures to online marketing. Further, the study noted that 44% allocate at least 50% of their

marketing expenditure on social media and online marketing. Accordingly, investment in

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 8

traditional advertising platforms was observed to be minimal as a majority of consumers and

producers had shifted to the use of the Internet for their daily activities.

Hamidi & Safabakhsh, (2011) added that online marketing has a wider scope and can thus

reach a wider audience as compared to the traditional methods. Besides online marketing can be

adopted everywhere at any time. This may put a greater advantage to the local firms to venture

internationally. Hamidi & Safabakhsh, (2011) also observed that through the use of online

marketing tools, small and medium enterprises were bound to achieve efficiency, scalability and

rapid growth as well as enhance the creation of other business opportunities and expanding into

new markets. Lastly, online marketing allows the outreach of target audience through different

devices such as the Smartphone’s, laptops, desktop computers and tablets since customers have

ready access the internet connectivity.

Factors Influencing Internet marketing adoption

Internet marketing has not been receptive among the various corporate organizations

around the world. Their adoption has been a tedious task, majorly due to lack of capacity.

Numerous studies have explored. However, the technological breakthroughs experienced over the

world have left corporate organizations with no option but to adopt it. Various studies have alluded

that despite the benefits accruing from internet marketing, some corporate organizations are still

lagging behind in implementation. The following studies have endeavored to explore the

motivation behind corporate organizations’ adoption of online marketing

Dlodlo and Dhurup (2013) conducted a research on the drivers of E-Marketing adoption

among Medium and Small Enterprises (SMEs) and the age variations of the owners of the

enterprise. They drew much attention on the factors leading to the adoption of E-marketing,

adoption process and its implementation. The study noted that technology, organizational and

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 9

environmental factors were the primary factors that drove corporations to engage in online

marketing. The research cited environmental factors as pressures from competitors, regulatory

agencies and customers. Besides, the study observed that these forces impacted SMEs operators’

decision to embrace internet marketing. The study also identified the interaction between the

business and the suppliers, family members, friends, employees and other clients as another

contributing factor to the adoption of online marketing among business owners.

Pentina et al. (2012) reviewed the adoption of social networks marketing by SMEs. The

study found out that the adoption of social network marketing is dependent upon the social

pressures by customers, competitors, and professionals.

Besides, Dlodlo & Dhurup, (2013) found out that technological characteristics have the

potential to change a firm’s intention to embrace internet marketing. Skilled manpower and

supporting infrastructure are a necessary condition for the advancement and implementation of

online marketing. Consequently, Dlodlo & Dhurup, (2013) observed that organizational

characteristics were also a contributor to an organization’s adoption of online marketing such as

business owners and awareness and understanding of the benefits associated with internet

marketing.

Challenges to the successful adoption of online marketing

In this section, the study aims to understand the reasons behind the low online marketing

uptake by corporate organizations. The literature review in this section indicates that online

marketing uptake by corporate organizations is mainly hindered by inadequate resources, expertise

and time constraints. Hanafizadeh et al., 2012 cited the lack of skills and internet knowledge as

the main inhibiting factors to the online marketing uptake. Besides, the study noted that some

business owners lacked awareness on the benefits derived from using internet marketing.

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 10

Another study by Chaffey & Patron, (2012) noted that online marketing platforms were

evolving thereby becoming complicated to intended users. As a result of these complexities,

business owners were unable to keep up with the dynamic technology thus lagging behind.

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 11

Research Methodology

The nature of the study on online marketing is tedious to cover since internet marketing is

still considered an unknown concept by a majority of researchers, business owners and

professionals thereby ending up confusing it with other concepts such as E-Business and E-

commerce.

Experimental Research Design

In this study employed the experimental research design, which guides the researcher to

keep up control over all components, which might influence the results of the study. Besides, the

experimental design helps the researcher to establish between variables, the cause and effect

relationships as well as supporting the capacity to limit alternative explanations and to infer direct

causal relationships in the study. Lastly, the approach gives the most level of proof for individual

studies.

The study targeted 100 respondents who were selected from the various business

organizations in New York City. Stratified sampling was employed to arrive at the sample where

respondents were selected from the strata’s representing each business category. The study took

21 days from 21st April to 10th May 2016.The respondents were mainly be categorized according

to their ages. This will be done to enable the researcher to draw necessary findings from particular

age groups.

Qualitative and quantitative data was sourced by use of the questionnaire, with both

structured and non-structured questions to achieve the researchers’ primary objective.

Respondents were allowed ample time to resound to the questions. Data collected from the

questionnaires was analyzed by use of computer-aided software’s and presented using tables,

graphs and charts.

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 12

Results

The questionnaires were sub-divided into five broad categories. On the respondent’s bio

data category, the data from the returned questionnaires revealed that majority of the respondents

were between the ages of 18-25 years thereby affirming that online marketing was highly embraced

by young adults.

Respondents were also required to give feedback on marketing in the corporate world. A

majority, (56%) of the respondents indicated to have been employing traditional marketing

channels such as emails, and TV broadcasts to advertise their products and services. The remaining

(44%) reported having been using online marketing channels in their businesses such as the social

media platforms.

Similarly, on the response to the benefits of the adoption of internet marketing by the

corporate organizations, a majority of the respondents (70%), though they hadn’t embraced

internet marketing, confirmed that online marketing enhanced business performance concerning

costs, efficiency, and improved revenue streams. The remaining (30%) could not offer substantive

feedback since they had not employed any of the online marketing channels.

The study further sought to know from the respondent what motivated them to embrace

online marketing. The respondents expressed diverse opinions regarding their motivation to online

marketing.25% of the respondents cited environmental forces such as pressure from competitors

and customers while 20% indicated the advancement in technology as their major drive to online

marketing. Another 15% reported the influence on social interaction with peers as their major drive

to embrace online marketing.

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 13

The research further sought from the respondents what hindered them from the adoption

of internet marketing.50% of the respondents cited lack of financial resources to sustain an

elaborate information and communication system while 30% lacked the expertise to run an online

marketing system.20 % of the respondents indicated that they lacked time to engage in the

interaction of online platforms.

Discussion

The research findings have reinforced the existing knowledge on the adoption of online

marketing in corporate enterprises. Evidently, online marketing adoption is gradually taking shape

among corporate organizations. Consequently, online marketing is more prevalent among the

youth-run enterprises than among the elderly-run corporate organizations where traditional

marketing practices are still practiced.

Although online marketing adoption is still low, the benefits arising from its adoption are

visible and appreciated by all people including those who have not embraced its use. It is usually

the expectation of any corporate entity to achieve market efficiency and subsequent organizational

growth. Online marketing is the driver of this growth in the present business environment. In the

advent and growth of information technology, environmental forces such as pressure from

competitors and customers and social interaction with peers will largely drive the adoption of

online marketing among business organizations.

Conclusions

The growth in internet connectivity has almost changed the way everything is done

throughout the corporate world. This study has highlighted how technologies brought about by the

internet such as online marketing can be beneficial to business world leading to innovation and

growth. Online marketing is an enhancement to the field of marketing at large, considering the

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 14

larger population resides in online platforms. To this extent, new technologies will continually

evolve to complement marketing activities thereby defining the product and services outreach to

the end users

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 15

References

Berman, S. J., & Kesterson‐Townes, L. (2012). Connecting with the digital customer of the

future. Strategy & Leadership, 40(6), 29-35. doi:10.1108/10878571211278868

Centeno, E., & Hart, S. (2012). The use of communication activities in the development of small

to medium‐sized enterprise brands. Marketing Intelligence & Planning Marketing

Intelligence & Plan, 30(2), 250-265. doi:10.1108/02634501211212000

Chaffey, D., & Patron, M. (2012). From web analytics to digital marketing optimization:

Increasing the commercial value of digital analytics. J Direct Data Digit Mark Pract

Journal of Direct, Data and Digital Marketing Practice, 14(1), 30-45.

doi:10.1057/dddmp.2012.20

Dlodlo, N., & Dhurup, M. (2013). Drivers of E-Marketing Adoption among Small and Medium

Enterprises (SMEs) and Variations with Age of Business Owners. MJSS Mediterranean

Journal of Social Sciences. doi:10.5901/mjss.2013.v4n14p53

Hamidi, A., & Safabakhsh, M. (2011). The impact of information technology on E. marketing.

Procedia Computer Science, 3, 365-368. doi:10.1016/j.procs.2010.12.061

Hanafizadeh, P., Behboudi, M., Ahadi, F., & Varkani, F. G. (2012). Internet advertising

adoption: A structural equation model for Iranian SMEs. Internet Research, 22(4), 499-

526. doi:10.1108/10662241211251015

Harrigan, P., Ramsey, E., & Ibbotson, P. (2011). Entrepreneurial marketing in SMEs: The key

capabilities of e‐CRM. J of Res in Mrkting & Entrepre Journal of Research in

Marketing and Entrepreneurship, 14(1), 40-64. doi:10.1108/14715201211246760

Harrigan, P., Ramsey, E., & Ibbotson, P. (2012). Exploring and explaining SME marketing:

Investigating e-CRM using a mixed methods approach. Journal of Strategic Marketing,

THE EFFECTS AND LEVEL OF ADOPTION OF ONLINE MARKETING IN THE

CORPORATE WORLD 16

20(2), 127-163. doi:10.1080/0965254x.2011.606911

Kim, H. D., Lee, I., & Lee, C. K. (2011). Building Web 2.0 enterprises: A study of small and

medium enterprises in the United States. International Small Business Journal, 31(2),

156-174. doi:10.1177/0266242611409785

Lenhart, A., Purcell, K., Smith, A., & Zickuhr, K. (2010). Social media and mobile internet use

among teens and young adults. Pew Internet and American Life Project. Retrieved May

14, 2016, from http://www.pewinternet.org/files/old-

media/Files/Reports/2010/PIP_Social_Media_and_Young_Adults_Report_Final_with_t

oplines.pdf

Oun, S. A. (2012). Case study: Marketing strategies and performance of small and medium agro-

farm businesses in Badia of Jordan. International Journal of Globalisation and Small

Business IJGSB, 4(3/4), 284. doi:10.1504/ijgsb.2012.049271

Pentina, I., Koh, A. C., & Le, T. T. (2012). Adoption of social networks marketing by SMEs:

Exploring the role of social influences and experience in technology acceptance.

International Journal of Internet Marketing and Advertising IJIMA, 7(1), 65.

doi:10.1504/ijima.2012.044959

Walsh, M. F., & Lipinski, J. (2009). The role of the marketing function in small and medium

sized enterprises. Jrnl of Small Bus Ente Dev Journal of Small Business and Enterprise

Development, 16(4), 569-585. doi:10.1108/14626000911000929

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."