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certain client sectors than others, for example, Biotechnology

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  • "certain client sectors than others, for example, Biotechnology sector (Ranchod et al., 2002)and Public Relations (Ashcroft and Hoey, 2001) The academic literature found to be laggingin case of current scenario of the internal as well as the external..

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  • "certain client sectors than others, for example, Biotechnology sector (Ranchod et al., 2002)and Public Relations (Ashcroft and Hoey, 2001) The academic literature found to be laggingin case of current scenario of the internal as well as the external resources for the newchannels and the associated factors. The main reasons of the failure of Internet medium in FMCG sector is due to inadequatefocus of retailers to relate between various aspects of Internet community.(Cronin, 1996)The data shows a higher number of male web users (65%), majority being affluent andprofessionals with a low appeal to TV. (Light, 1998) The increased number of users providesgreater opportunities for internet retailers. The Internet growth further gave some negativesignals to some distributors of making them superfluous. (Major, 1998) However, argumentsshow that the focus should be on the value added offers like online offerings with betterinformation and reviews to enhance the purchasing decisions. (Wadsworth, 1997) Further,Internet is not considered as a substitute of the traditional channels but a distinctive one.(Wright, 1998) The industry can, however, be altered due to the e-commerce being a crucialstrategy but the competitive advantage remains on the product and not technology. (Philipsand Hooke, 1998; Hilmer, 1998)GLOBALIZED WORLD OF MARKETINGThe world is becoming interdependent for different resources in order to attain economicprogress. Studies have shown various countries being dependent on others to fulfil the basicamenities varying from food to oil and other major products. Take the case of US, whichimported a mere 1% of GNP in 1954. The same proportion rose by ten times in 1984 (Unknown Author, 1997). The developing countries became more accountable for exportingvarious goods and services and therefore preceded their steps towards development.Year 1994 is considered as the year when the world started to think beyond imaginationthrough better technology, creating a business community around the world. Introduced by AlGore, over 3 million web pages led the producers and consumers to think beyond theirimagination. The period changed the entity communication site to commercial format. Forinstance, by 1996, commercial industries comprised of 89% of the websites as compared to11% being held by individuals. The www proved to be as successful interactive way whichwidened the imagination of the corporations across the world; global world renowned asglobal community.The change in business world has been matched with changes in consumers` demands anddesires which made firms realize the importance for change in ways of interaction andcommunication in order for better relationship with consumers. Corporate firms have to dealwith the global customers and thus the distribution channel should centre at creating betterconsumer value in acquiring and consuming commodities and services. (Pelton et al., 1997)But at the same time they have to keep in consideration the global demands and the increasednumber of competitors which is moreover a challenging task. Hence, usage of variouschannels by one organization has become a necessity than requirement. (Friedman andFurey, 1999; Frazier, 1999) Increased channels further imply increased pressure oninternational marketers. For instance, the type of marketing channel adopted may differ inone country then it would be in another but the aim would be at higher level of consumervalues. However, limited academic research have been conducted in order to examine theimportance rather dynamics of distribution channels. (Zettelmeyer, 2000; n.d) Theglobalized world is now facing the so called advertisement wars than competing with rivalfirms. INTERNET MARKETINGThe global market is no longer called as the seller`s market but well-informed buyer`smarket. Manufacturers and marketers are under extreme anxiety to optimize a balancebetween costs, eminence, price and efficiency in the competitive environment. (Praxis, 2000,July; 52) Internet marketing has lately become prominent to the success factor and toefficiently communicate with its consumers. The researchers have questioned about thesignificance of internet marketing in business world. Dave Chaffey (et al., 1999) argues it tobe highly significant in some industries; electronics giant CISCO making considerable saleseach day via Internet, i.e. $9 million worth of hardware per day. On the other hand, FMCGsector is not able to attract consumers through Internet. For instance, Unilever, despite ofbeing one of topmost FMCG corporations in world, offline campaigning and promotion isstill the main source of effective communication with customers. However, Internet is stillconsidered as the significant source of marketing and hence heavy investments are observed.£8 million were spent on Internet based advertising as compared to £3 million on TV andradio ads. This further raises the question of whether Internet marketing is industry specific.However, the changed scenario of business will lay its emphasis on Internet marketing in thelong run. As quoted by Frank Schilling (2007; Jan 06) in an article, Internet has become anecessity and is just another form of media, which will guide the future of the businessorganizations. The adoption of alternative mode of traditional campaigning can be seen in various FMCGfirms for over a decade and will be adopted in various forms of intranets and extranets foroperational support systems of internal and external value chains. (Richard Mayer et al.,1999) Unilever started using Internet in late 90s to build stronger brands through Internetadvertisements. Unilever came up in e-commerce with the purpose of recuperating the communication with consumers and hence an enhanced relationship. The first Internetcampaign was followed by the traditional media campaigns for launching Unilever`sMentadent toothpaste in US in 1998. Various adverts were found by Internet users ondifferent health-related websites. The medium proved to be more successful than it expected;over 40,000 demanded for the samples and therefore led Unilever to recognize theimportance of this new medium and at the same time helped in building an understanding forthe applications of new marketing techniques. As a part of its e-business strategy, it spent£130 million in 2000 and formed a new company internet company with iVillage. (UnileverCorporate, n.d) As per a report, the European sales were expected to rise to $1990bn by 2001with the active usage of Internet marketing. (Christopher Price, 1998; October 16) As per thefirst survey in Europe for KPMG, 500 companies were interviewed, as a result of which theelectronic commerce was discovered to be vital for succeeding in global competition.However, the expected optimism cannot be applied towards the FMCG industry and henceappropriateness for the respected sector required further research and literature.The studies have shown divided opinion on the appropriateness of the Internet marketingmedium for the FMCG sector. Some believe that the sector is not able to maximize thepotential of the web based marketing. On the other hand, various studies contradict thestatement by a positive linkage of the two. However, the majority favoured that the FMCGcompanies have not been able to leverage the Internet prospective. (Unknown, 2007; April07) The reason may vary from companies comparing the medium to the traditional modeslike TV and print which has a wider reach to the purchasing behaviour of consumers. Variety of ChannelsAs argued earlier, the usage of traditional modes of marketing and distribution channels wereprevalent prior to mid 90s. With the fast rate of development, firms started adopting thesophisticated modes of distribution, further adding to their problems. The traditional channelswere limited with limited work and so were the consumers. The more sophisticated channelslike Internet, Television and Telephones have become the most main focus for firms in orderto interact with its customers. These channels, with a wider reach have a capability ofreducing costs by significant proportions. (Easingwood and Storey; 1996; 114) However,there is limited research on widespread usage of Internet and telephone in effectivecommunication in contemporary business world. The mobile advertising receivedconsiderable attention but proved to be lagging behind in case of most of the productsincluding FMCG products due to its limited usage and unwilling attitude of consumers onaccount of personal space and thus the legal issues as well. (Evelyne Beatrix Cleff, 2007;225) However, considerable research on mobile internet usage alarmed for mobile advertisingon account of revolutionising the communication mode of phone which was limited to voicetelephony. It can be said that the digitalisation has led the m-advertising to become anintrinsic aspect of modern advertising.The transformation of the communication channels has proved to be advantageous for mostof the firms. The practical scenario reveals the extent of interaction through different ways.The producers are also finding ways to reduce costs as consumers are searching forconvenience and efficient ways. What would be more expensive; providing branch service orusing call centres or the most convenient Internet? (Durkin and Bennett, 1999; 114) Thenew modes have benefitted the consumers along with producers with an ease of usage.However, the marketers have to divert their resources to reengineer distribution rather than "

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