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INTRODUCTIONThe drastic changes in the world is complemented

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  • "INTRODUCTIONThe drastic changes in the world is complemented by change in other components as well;consumers` demand, producers` supply, reduced cross country barriers, advertisement modes,marketing techniques and hence increased competitiveness. Ad..

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  • "INTRODUCTIONThe drastic changes in the world is complemented by change in other components as well;consumers` demand, producers` supply, reduced cross country barriers, advertisement modes,marketing techniques and hence increased competitiveness. Advertising techniques havechanged over a couple of decades; the way an idea was advertised in 1970s is far moredifferent than how it is done today. However, something that did not changed is the objective,i.e. to sell. (Lauren Karnes, 2008; September 09) He further concedes the ads to change bya great deal. Consumers are looked from a different perspectives in today`s world ascompared to that of early 70s or 80s. Consumers can be seen with higher purchasing power,enhanced purchasing information and more competitive product offerings increasing theirbargaining power. This calls the marketers to adopt the distinctive way of marketing theirundertakings to achieve its effectiveness. The industry faced a new mode of communication method post 1994 after which thecompetitors had to face a more rigid competition. Advertisers had higher opportunities withthe advent of Information Superhighways in the mid 90s. Since 1994, there is a drasticdevelopment in information and communications technology, which different brands andmarketers aim to compete in the business world. Meanwhile, they have to further face thechallenges associated with their communication strategies. They target to get closer to theircustomers through more fragmented media industry. (Kotler, 1994) The marketingcommunications channel involve heavy expenditures and what has lately been observed ishigher rates of expected return. The most popular one was the multimedia market whichmaximised usage of digital technology and therefore providing enhanced information bycreatively developing techniques. A more palpable interaction is seen between producers andconsumers with the usage of modern advertising techniques. Increased consumers involvement has further led marketers to critically analyze the overall situation and hencework towards building a stronger brand. As Cohen and Marcel (2000, July 01)demonstrates that the involved consumers tend to be biased towards a familiar brand andbuys their preferred brand despite of a higher price charged. The price paid is directlyproportional to the level of involvement i.e. if the consumers involvement is higher, the pricefactor would not guide the purchasing decision but their affection towards the product.The supermarket products are constituted under the name FMCG sector, offering a widerange of products, of which the food, beverages and the beauty products are highly appealing.Different FMCG brands are consistently focussing on raising the budget for advertising andpromotion for existing as well as new products. Big corporations like Nestle, Unilever andProctor & Gamble are making heavy investments for their different set of brands in order tointeract consistently with its consumers. For instance, Nestle embrace 8000 products withnearby 20000 variants and strategise with an annual ad budget of $2.5 million. (AlexBenady, 2005; April) On the other hand, the rival firm Unilever has proposed an annualmarketing budget of $34.5 million meant for media ads only, alarming its competitors forfurther strategies. (Tom, 2010; June 29)The potential of the Internet as a latent interaction medium was recognized by various FMCGcompanies, which aimed at building much stronger and closer relation with consumers.However, the FMCG firms have not been able to utilize the benefits of the interactive andadvanced communication channels. Kevin Brennan (2010; June 11), UK MarketingDirector at Kellogg`s, argues in a conference about the consumers being reluctant over itsusage. He further talks about the challenges being faced by FMCG industries in graspingconsumers? attention through digital media. Despite of high opportunities, a mere 1% is spentas part of media budget and 61% being invested on TV (Nielson Media Research, 2010;January 7) The rate of consumer time spent on Internet needs to be matched by the amount of spending on various media channels, especially social media. The purpose should dealwith the participation of consumers rather than persuading them to absorb the ads. This iswhere FMCG has failed to do through the advanced versions of the marketing channels.Beyond imagination is what online creativity guides should be the driving force.LITERATURE REVIEWThere is significant research on Internet advertising but still there is lack of evidence on thepace of its development in the world of marketing. The traditional modes of advertisementwere successfully replaced by the modern methods but still the former ones are given higheremphasis and what is observed is a high spending on account of higher level of effectiveness.The extent of usage of Internet modes is also biased in industries where the consumers arehighly involved in the purchase decision. Much of the success of internet communication islaid on the increasing number of online users. (The Economist, 2001)The increased number of retailers and global increase of online users rather shoppers have ledto a change in behaviour of the consumers. Considerable share on online consumer behaviourhas taken place but yet the most appropriate technique through Internet is yet to bediscovered. (Korner and Zimmermann, 2000) The research has widely emphasized on thechanging consumer behaviour and hence how Internet medium perceives the changing onlinedemands. The buying behaviour of the consumers in FMCG sector is found to be challenging for e- marketers as there is a lower level of involvement and their ordinary purchasing behaviour.The industry is now widened to provide a variety of products varying from liquor togroceries. Further, the research shows the consumers to be more conscious towards authentic and memorable information with convenience, ease and cheaper price. This has led to atransformation of the marketing concept to a more complex one. (Harris and Obdgona,2000) Further, there are arguments that state that the consumers` buying behaviour towardsone medium may not necessarily influence them in another. (Moon, 2000) Some are found tobe convinced by Internet to make purchase while others may use it only as a source ofinformation. This reveals the ongoing real scenario making consumers search for variouschannels and correspondingly pushing retailers to adopt a mixture of multiple channels.(Greenspan, 2003)The technological advancement has provided the marketers a wide range of media channelsto effectively communicate with consumers; Internet, Bluetooth technologies, telephones andTV. Much focus has been given on Internet medium on account of discovery ofsuperhighway technology. Number of Internet users has increased at an unmatched rateacross the world. As per Internet World Stats Report, there is a 444% growth in Internetusers during 2000-2010; the current number of users being over 1800 million which is up by27% over 2009. The figure is significant and thus has made industries to emphasize on theusage of the modern communication system. Despite of the development of Internet techniques of convincing consumers there is lack ofresearch which measures its effectiveness. Sufficient research is carried out on increasingnumber of online users and shoppers but lack of information is observed in case of FMCGsector due to the fragmented industry. Measuring effectiveness can be regarded as aperceptive issue amongst academics as well as practitioners but lack of evidence on setbacksand merits is found. Day (1999) argued that a model focused on the website design andstrategy in order to measure its effectiveness instead of focusing on specific measures. Othersfound a higher consumer click to be as high values determinants of measuring effectiveness.(Dholakia and Rego`s, 1998) The click rate argument was further supported by others like Goodwin (1999), acknowledging the fact with cost per impression data to further understandthe changing attributes of consumers on account of the Internet advertising. The literaturedeeply suggests that the conventional modes of advertisement effective measures aresupported by Internet advertising, i.e., the measures are applicable to the latter one. Thefindings show that the e-success of FMCG as well as other industries greatly depends uponbasic aspects like Web-site response, Company information and hence the informationcollected in regards of the consumers. (Karrayani and Baltas, 2000) These are moreoverdeterminants of e-success rather than factors assessing its effectiveness.FMCG sector, much stress is on the social media communication and search engineoptimization. The researches have shown some great improvements and higher profitabilitywith the usage of social media and search engines. Evidences largely state that social work tobe the best medium or area of improving consumer interaction. The recent online campaignsprovide a much closer look at the online spending being made by FMCG brands. It furtheracts as a means of deepened brand relationship with users. The research emphasizes theimportance of online consumers towards retail stores and thus the online information search.(Blackwell et al., 2001; Duncan and Olshavsky, 1982) Further, practitioners argue that therelationship of online FMCG products with consumers greatly depends on their purchaseintention being convinced by their association with the brand but moreover their purchasingbehaviour. (Monroe and Guiltinan, 1975; Moye and Kincade, 2003) Consumers possess apositive relationship with online shopping and thus online relationship. (Goldsmith andGoldsmith, 2002; Jarvenpaa and Tractinsky, 1999) The increased number of onlineretailers has provided consumers with a variety of shopping channels and thus a tougher taskfor marketers. Further, the academic literature has additional urging on the characteristics on managing themedia channels of communication. Web or Internet approach has received much attention in "

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