Transcript Document

Research Presentation
Internet Marketing in Small-Medium Size
Businesses: Market Orientation,
Creativity and Flexibility
Agenda
1.
2.
3.
4.
5.
Motivation
Research Questions
Conceptualization
Methodology & Descriptive Results
Future Steps
Monica L. Perry, School of Business
Nov. 17, 2005
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Motivation
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Increasing % of Marketing Budget  Internet Marketing
Majority of Marketing Research addresses Large Firm
Continued Importance of SMEs to global economic Growth
Unique/Distinctive Characteristics of SMEs (Gilmore, Carson &
Grant 01)
Limited Resources (Constraints)
Limited Opportunity for Full Range of Conventional Marketing
Research Questions
What is the role of Internet Marketing in SMEs?
Do systematic or informal processes for
acquiring, disseminating customer and competitor
information yield greater marketing performance for
SMEs?
What is the role of SME characteristics on Marketing
Flexibility?
Under what types of environmental conditions are
market orientation and SME characteristics most
critical?
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Internet Marketing is like Traditional but…………….
Marketing on
Steroids
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Primary Effects
Marketing Intelligence Generation and Dissemination
Market Intelligence as a potential superior resource
Intelligence
Generation
+
Performance
++
Intelligence
Dissemination
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Formal versus Informal Processes
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Role of Flexibility
Market
Intelligence has potential for advantage
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What is the process for using/acting on market
intelligence
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Market Intelligence as motivation for flexibility
Flexibility
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in Internet Marketing
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Consideration of Multiple Alternatives/Options
(Aaker & Mascerenhas 84)
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Improve/Keep Strategic Fit (Mavando 00)
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Reflect ability to Adjust Easily, Quickly Marketing
Efforts, Low Switching Costs
Role of SME Characteristics
SME
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characteristics affect Flexibility
Risk Tolerance (Aspect of Entrepreneurial
Orientation)
 Financial
Results – Immediate
 Financial
Risk Taking
 Willingness
to Accept Marketing Programs
(uncertain outcomes)
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Creativity
 Ability
 Ability
to Generate Multiple Alternatives
to Generate Unconventional, Original
Marketing Programs
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Comprehensive Model
Intelligence
Generation
+
Marketing
Flexibility
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Intelligence
Dissemination
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Creativity
Risk
Tolerance
Under Certain versus Uncertain Conditions –
Customer and Competitive Environment
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Descriptive Results
Response n = 67 (11%)
1/3rd of respondents had no substantive
Internet Marketing activities
2% indicated they did not engage in
“marketing”
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Descriptive Results
For those engaged in Internet Marketing
30% used IM as Substitute for, 70% as
supplement to Traditional Marketing
Average IM Performance 3.5 (poor)
Website costs ranged 5-50% of marketing
budget
Creativity of IM, on average low (2.7)
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What Next?
Collect Additional Data
Follow-up with Non-respondents
Expand survey beyond California
Simplify, Purify Scales
Test Simplified Model
Follow-up Survey on Barriers to Internet
Marketing in SMEs
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Questions………..
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