Factors influencing the choice of Internet advertising instruments while launching the product on the international market

Hidden marketing as a special kind of online advertising in which the message is spread through the exchange of views on the product between users. Promoting products and services in the international market. Features of a search engine targeting.

Рубрика Маркетинг, реклама и торговля
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Introduction

Nowadays, there is a tendency that companies are going abroad in finding the opportunities to grow. Expanding marketing efforts to an international audience can be a great opportunity for company to reach potential customers that may not otherwise discover your brand, products or services. Moreover, in the process of globalization free trade plays a significant role, it allows traders act without restrictions. It means that for companies are becoming easier to operate abroad.

The Internet has facilitated the development of new business relationships and has opened up cross-border market opportunities for companies (Hinson, Adjasi, 2009).

The number of Internet users increase from 1 billion in 2005 to 3,2 billion in 2015 (Global Digital World Bank report, 2016). This means that businesses and people are much more connected today then even 10 years ago.

Creating complex experiences in both physical and digital environments is a key to success in the months ahead. Advances in Internet technology have evolved the business world in a number of ways, including taking advertising techniques to a new level.

By 2017, social media ad spend will reach $35.98 billion in the world (Managing Digital. Sophie Smith, 2016). According to the forecast ZenithOptimedia, in 2017 the Internet will become the largest media in terms of advertising investment.

Internet marketing tools allow efficient communicate with consumers providing necessary products and services. As consumers increasingly spend time on the Internet, in searching specific information, modern companies actively use new ways to interact with users. As the availability of different devices increases, consumer media consumption becomes more specialized. (TNS,2015)

This paper demonstrates the possibility of using online advertising tools for more effective promotion of goods and services abroad.

There are many different Internet-marketing tools, but how a company will choose that can bring those results abroad. The most common and easiest decision for companies today to give this Internet advertisement to foreign agencies even if price is higher, therefore advertising agencies in mother country lose money and lost the clients.

An advertising agency is generally independent from the client and provides an outside point of view to the effort of selling the client's products or services. But what should it analyze while choosing Internet tools abroad? Internet marketing is growing very fast. New tools appear every year. There is a noticeable lack of a structured methodology for the use of tools of online advertising abroad, the lack of understanding of the principles of online advertising tools.

The overall goal of the research is to reveal factors, which influence the choice of the Internet advertising tools while launching the product on the international market.

A number of specific objectives could be confined to:

· To analyze the main trends in the international Internet advertising;

· To analyze the various Internet advertising tools, their advantages, disadvantages and limitations;

· To analyze the promotion products and services in the international market and formulate factors;

· To conduct qualitative research based on interviews with experts and approved factors on its base;

· On the basis of World Bank and Eurostat statistics to conduct multivariate statistical analysis to find dependency between instruments and the factors;

· To work out theoretical and practical implications of the research.

The object of the study is Internet advertising on the international market.

The subject - factors influencing the choice of internet advertising instruments while launching the product on the international market.

Theoretical base of the study is research of Dureen Jayarama, Ajay K. Manraib, Lalita A. Manraib (2015) “Effective use of marketing technology in Eastern Europe: Web analytics, social media, customer analytics, digital campaigns and mobile applications”, they create a model to compare market characteristics in Eastern Europe countries and marketing technologies. In this research there are some limitations as hypothesizes are not proven and this paper focuses on product companies in the Eastern Europe.

The empirical base of the study is a primary research: expert interview, analyzes of factors, internet advertising tools and secondary research: multivariate statistical analysis.

Methods:

· Literature overview;

· Semi-structured expert interview;

· Multivariate statistical analysis.

Interviews with head of departments and CEO of advertising agencies and representatives of international companies were conducted. The list of companies participated in the survey: E-Promo, the group of international advertising agencies Dentsu Aegis Network (iProspect, Carat, Isobar, Viseum), Lingualeo, Bitrix24, Fenics, LLC "ELECTROM", LLC "LUKOIL-AERO".

Data.

· World Bank, Eurostat, OECD statistics;

· SPSS;

· Global Internet advertising reports by analytical agenesis like PWC and McKinsey & Company.

There are many studies in the field of online advertising as well as studies about advertising features in the international market. But there is no objective justification for the choice of tools for Internet advertising on the international market. The novelty of the study is to find the factors that should be considered when choosing tool for Internet advertising abroad, to demonstrate that it is necessary to take into account when the company enters the international market. These factors can be market conditions, product characteristics, competition, and features of the company.

Final qualifying work consists of three chapters, introduction, conclusion, list of references and appendices.

The first chapter is devoted to the theoretical aspects of the use of internet marketing tools and promotion products or services abroad.

The second chapter is demonstrated particularities in promoting products and services in the international market.

The third part is represented the primary research: the interviews with experts, hypothesis, a multivariate statistical analysis, theoretical and practical implications.

1. Internet advertising

Marketing as academic discipline and management activity has been the subject of substantial transformations during the last twenty years. Many scholars and practitioners agree that some of the old marketing tenets seem to lose ground while the popular in the 60s and 70's mass marketing approaches become less effective (Brady and Davis, 1993; Bakos, 1998; Chaffey et. al., 2000; Coviello and Brodie, 2001; Constantinides, 2006; Court, 2007). Market globalization and the emergence of a new generation of Information are changing the marketing rules and market dynamics by weakening the corporate competitive position (Porter, 2001) while presenting individuals with many new opportunities (Christopher, 1989; Wind and Mahajan, 1997; Bush, 2004, Urban, 2005).

The history of modern advertising in the Internet is assumed to start with the banner, in October 1994, when the world's first commercial Hotvired online magazine appeared advertising block with the slogan "Have you ever clicked your mouse right here? You will!"

Banners are now successfully used in the development of branding campaign. Effective advertising is no longer associated with the promotion of the site (product, service) only through banner advertising. Today there are a number of other internet marketing tools that have proven their effectiveness. This will be discussed farther.

1.1 Peculiarities of Internet advertising

Today the Internet is a medium for communication with the target audience, as well as any other offline environment.

In developing countries, an average of 8 out of 10 people owns a mobile phone and the number is increasing every year. The lowest mobile penetration is 73 percent in Saharan Africa and highest in high-income countries 98 percent. Internet penetration is growing more slowly than the level of mobilization. Only 31 percent of the population in developing countries had access in 2014, against 80 percent in high-income countries. (World Bank, 2015).

Marketing budgets have to reflect on the changing consumer behavior. With the spread of Internet there is no more discussion about if money should be allocated into digital activities - the only questions remaining are what proportion of the budget should stay offline.

Offline advertising includes all advertising out of the Internet network: billboards on the streets, advertisements in newspapers and magazines, television and radio advertising and so on.

On the table it noticeable spends in Advertising in Russia from 2005 till 2015. Spends in offline advertising decreasing, however, spends in Internet advertising increasing.

Table 1. Advertising spends in the world by category (US million dollars)

The creation of offline advertising which will pleasant the consumer and makes him to purchase the product is quite expensive and it requires professional conduct marketing research. Thus, offline advertising practically doesn't allow you to clearly identify consumer needs.

At first glance, this seems like a damaging constraint on the reach and effectiveness of TV advertising. However, the data also shows that 25 per cent of digital device usage taking place in front of the TV involves social media and other forms of communication (TNS, 2015).

The Internet's ease of use, wide availability, low cost and common standards facilitates the integration and coordination of marketing activities, information sharing, and improved communications with customers (Hameri, Nihtila, 1997).

Internet marketing includes a complex of tools and methodologies for promoting products and services online.

Initially, in the late 20th century authors of most studies on "Internet marketing" interpreted it more narrowly: as the banner advertisement or avoid the formulation of the concepts and definitions of its subject area in their works.

Baltas in 1995 considered the impact of certain creative and media factors on the effectiveness of banner advertising, whose value is determined using a direct response data. As independent variables, he used the banner size, the number of words placed on it, the presence of the logo in advertising, cliche, mysterious phrases, motivating phrases, duration of the campaign, the price for 1000 impressions, the price of creating a banner, a parallel implementation of the offline campaign.

Results of the study John Baltas shown that banner size affect the performance. Large banners attract the attention of visitors to a greater extent than smaller ones. Between the number of words and efficiency there is an inverse correlation, the more words in advertising, the lower the efficiency. This is connected to the fact that long messages require high involvement and attention.

The presence of the logo in the banner has a negative impact. In 1997, R. Briggs and N. Knollys argued that non-branded clickable of banners higher than advertising messages, which used the brand logo, but other research in this area at that time did not exist. This effect can be connected to the fact that visitors are familiar with the brand and know what is offered in the advertisement.

Regarding media factors should be noted that Baltas revealed a significant relationship between the effectiveness of banner ads and such as the duration of the campaign, the number of sites host, the implementation of parallel offline campaigns, cost per 1000 impressions, as well as the price of creating a banner. It turned out that the first three factors have a negative impact on banner advertising effectiveness. During the implementation of the long campaign viewers' attention is gradually reduced, decreases the number of responses. The author proves the importance of the study of other factors related to the context and audience advertising.

Some researchers argue that the clickable banner depends on the advertised product category and the characteristics of the target audience.

Today marketers are moving their priorities from fan/followers' quantity to quality and increasingly driving the engagement of targeted, passionate, and influential brand ambassadors. Brands are continuously growing sales directly attributed to digital marketing campaigns.

Bernoff (2011) demonstrate how to recognize the impact of mobile devices, video, clouds computing and social technologies for competitive advantage. Especially for marketing, they explain how to listen to customers, respond to them, so that they can become fans and seek their ideas on the revision of marketing and products.

David Scott Mirman - American expert in the field of internet marketing, the author of many books, the most popular of which is "The new rules of marketing and PR» 2011, he explains how to use new marketing techniques.

The author describes how to identify the target audience online business, proper use of video and audio material, gives step by step instructions for creating an effective marketing plan, as well as reveals the secrets of working with the tools of internet marketing, including social networks such as Facebook and Twitter.

One of the disadvantages of offline advertising is that it is difficult to track and evaluate the results of an advertising campaign. It is difficult to get information about how many people saw the ads that the kind of people and whether they purchased the advertised product.

In contrast, using the online advertising is quite simple to track its effectiveness. It can be easily obtain data on how many people viewed advertising, from where they came to the site, what goods were ordered. There are also special systems for monitoring the effectiveness of the web-site and advertising, such as Google Analytics.

Widespread tool for evaluating the effectiveness of advertising in the Internet is an indicator of CTR (Click Trough Rate): the ratio of clicks on the banner to impressions. Direct feedback from visitors provided the opportunity to empirically determine the features of advertising exposure. Clickability of ads can vary depending on various factors related to the design, context and implementation of advertising campaigns. Studying of influence these parameters can help to improve the results of the promotion.

Terms of the campaign can be changed. Using the tools of offline advertising, it is practically impossible in a short time to make adjustments to the campaign. However, advertising campaign on the Internet can be quickly adjusted.

KPI (Key Performance Indicator) - a measure of success in a particular activity or to achieve certain goals.

KPI in internet marketing are selected based on the objectives of the company and its business model. Among the most popular KPI choices include:

· The cost to attract customers from different channels (SEO, PPC, and others.);

· The number of applications, calls from the site;

· Conversion of visitors into buying;

· ROI of different online advertising channels;

· NPS customer loyalty index.

Davenport (2013) summarized the study by the International Institute for Analytics, the members, to explain how companies can use analytics to optimize processes, decisions and performance. Model for the measurement of online interaction is offered, depending on the eight indices: brand, feedback, interaction, click-depth, regency, loyalty, duration, and subscription.

In this chapter it was describe the main characteristics and metrics to measure effectiveness of internet marketing tools.

To summarize, the Internet has enormous benefits that pay off any difficulty working with online advertising. These include:

· A cheap long-term communication online;

· Availability of target groups (researches shows that the Internet audience is growing faster than another media);

· Possibility of narrow targeting;

· Speed of communication via the Internet is very high;

· It is easier to track and measure performance.

In the second chapter will be analyzed the main Internet marketing tools.

1.2 Internet advertising basic tools

There are different kinds of Internet marketing tools.

Search Engine Optimization (SEO)

Search engine optimization (Search Engine Optimization) is a complex of measures aimed to move website on the first position in the natural search results (Yandex, Google, etc.) for specific keyword phrases.

When a user wants to find information about his interesting product (or service), he enters into a search engine. Then enter the query ( "buy IPhone 6s in Moscow") into the search box and the search engine displays a list of sites of companies that sell IPhone 6S. The list of sites is called natural (or organic) search results. The user browses the sites in their natural and issue passes to those that are most interesting to him. The higher the website is in the search results, the more people come to him, because it is more noticeable.

In other words, using the search site promotion, the company gets new customers, increasing their loyalty, while also increasing awareness of the company.

Paid search.

This is a short text ad is displayed to the user when he types a search term in the search bar. Create an advertising campaign can be the content services: Google Adwords, Yandex.

Ramos and Cota (2009) describe the practice of Search Engine Marketing (SEM). They stress the importance of aligning online and offline (traditional media) marketing, using effective key performance indicators (KPIs), designing effective analytics, search engine optimization (SEO) and pay per click (PPC) marketing campaigns.

Paid search ads can be displayed on the search results page upper search engine results (special placement) or after the results (guaranteed). Also, ads can be seen on various sites belonging to the ad network (Google Display Network). These ads may appear on the principle of remarketing or depending on the location information on the site (for example, if the site is devoted to the comparison of different vehicles - it can be displayed on the car ads).

Paid search advertising is an effective tool for attracting targeted traffic to your website, as visitors referred to the site with contextual ads that are most likely ready to make a purchase. It is appropriate for the promotion of goods and services in order to stimulate sales.

Precise work with the target audience is the main factor. This means that you can advertise to a specific group of users interested in your product and ready for purchase.

There are several types of targeting:

Search engine targeting - includes choice of words for which your ad will appear. Keywords are selected depending on the purpose of the advertising campaign. If you need a wide coverage and attracting maximum traffic to the site, this task perfectly cope high-frequency queries. It should be noted that while the company will have a low CTR and high value targets. Medium frequency requests solve the problem a niche positioning. Low frequency, are generally used to promote particular goods or services. The most optimal solution would be a comprehensive approach to the selection of keywords.

Thematic targeting is used in broadcast ads on niche sites. This means that your ads are automatically carried out the selection of thematic pages and sites of partner network search engines, the most accurate relevant keyword ads.

Behavioral targeting means that your ad will be shown on partner sites, regardless of their subject matter, but only to those users who had previously searched for in a search engine something, relevant keywords to your campaign.

Geographical targeting means that your ad will appear in the specific region within a city. When you create a campaign, you are aware that users are often interested in the services in the region. In this case, it creates a separate campaign without geotargeting, but solely of keywords containing the name of the city or region, for example, "Order a taxi in Moscow."

Time targeting allows you to show ads in strictly certain hours (to "Yandex" is not less than 40 hours per week), days of the week, and set the display during the holidays.

When planning a budget for paid search advertising is important to consider that the cost of a click is determined by the conditions of the auction. If someone wants to see your ad appear in a higher position than its competitors, it will need to set a bid for a click is greater than the other, and have a higher quality ad.

Display Advertising

This is a text-graphic appeal, posted on the website - advertising platforms on the Internet. This is a banner that is placed in the organic results of issue for a particular search. Banner is seen only those users who are looking for specific products or services. The main purpose of banner advertising is the impact on the user, rather than the act of clicking on ads.

• Increase brand awareness or company;

• launch a new product or service;

• an advertising campaign for one of the target groups;

• demonstrate the product users.

The cost of media advertising is determined by the cost-per-thousand impressions (CPM - Cost Per Mille).

To increase the effectiveness of media advertising platforms should be selected based on the maximum indicator Affinity - index matching site of the target audience of the brand. Also in the display advertising using a set of tools for geographical and time targeting, and with an appropriate choice of platforms can distinguish male or female audience.

In many areas there is an additional possibility to limit the number of views per user settings. The effectiveness of media advertising consists in creativity of the message.

SMM.

SMM (Social Media Marketing) is an activity aimed at raising the target audience brand loyalty by promoting on social networks, blogs and forums.

Marketing in social networks opens up the possibility for the companies forming the audience loyalty and increase brand awareness.

Promotion in social networks can achieve the following objectives:

• To introduce a new brand or a product on the market;

• To affect the existing brand reputation;

• To provide support to consumers;

• To analyze the audience of the brand in social networks.

When promoting the social networks necessary to create communities (brand platform) and organize them into a lively dialogue between the representatives of the target audience of the brand and the manufacturing company.

Promotion in social networks - is a highly effective tool to attract the attention of potential target audience of the brand, product or service. Social networks are a unique platform for the promotion of media, both local and large-scale products on the Internet. Nowadays, almost all business areas are represented in the social media promotion and use in social networks, as SMM has become an integral part of the modern internet marketing and to attract the target audience for businesses of all sizes, regardless of geography.

The main advantage of social media marketing is the efficiency, targeting potential customers, viral, and the possibility of constant interaction with subscribers. Professional work with social networks (pages and communities) and smm promotion have a positive impact on brand awareness (product, organization), loyalty, sales, and attract an audience.

A distinctive feature of social networks is the possibility of building a permanent brand communication with the audience. Once the user has become a subscriber to the page of the company, the company can constantly interact with it through a news feed, and to increase the motivation to purchase and free to manage potential customer loyalty through continuous interaction.

Hidden marketing.

Hidden marketing - a special kind of online advertising in which the message is spread through the exchange of views on the product or service between users (forums, blogs), and the consumer himself ideally should not guess that his decision was rendered outside impact.

Hidden marketing is working on:

• Increasing brand awareness and image of the company;

• Formation of demand and output of a new product on the market;

• Increasing the loyalty of the target audience;

• Promotion of unique competitive advantages.

Targeting advertising.

Because firms need to ensure that marketing spending has impact, it is not surprising that they are increasingly active in the use of targeted advertising.

Information such as a user's profile, data input and past Internet activity allow marketers to display their advertisements to targeted audiences, resulting in an efficient use of their advertising budget and an improved experience for users.

More than 1,5 billion people use Facebook, and more than 900 million visit every day. Facebook is the leading social network in the world in terms of active accounts, monthly usage, and traffic.

The effectiveness of Facebook advertising, like any other advertisements on the Web, is evaluated by CPM (cost per thousand ad impression), CPC (cost per click), CPF (cost per followers).

One of the biggest advantages to advertising on Facebook is your ability to target specific groups of highly engaged people.

· Location targeting allows an advertiser to reach customers in key locations by country, state/province, city and zip code. This information comes from people's stated location on their Timeline and is validated by their IP (Internet Protocol) address.

· Interest targeting lets define ideal audience by their interests, hobbies and Pages they like on Facebook.

· Behaviors are activities that people do on or off Facebook that inform on which device they're using, purchase behaviors or intents, travel preferences and more.

· Custom Audiences lets target Facebook Ads to existing customers or prospects using information you already have.

· Custom Audiences: Target your current customers by securely uploading a contact list of people you'd like to reach.

· Lookalike Audiences: Find people who are similar to your customers or prospects by building a lookalike audience from your Page fans, customer lists or website visitors.

· Custom Audiences from your website: Remarket to people on Facebook who've already visited the website.

If a company is promoting your brand, products and services to Russia and CIS countries, VK is a flexible platform and an effective gateway into the audience for a reasonable price and accessibility with an English language interface.

Similar to Facebook and Google AdWords, VK offers a retartgeting option. It can collect a list of users who visit your website and have a profile through a tag on your website, making retargeting easy. Additionally, if a database of users (emails, phone numbers or VK IDs) is available, you can upload the data to such targeted users.

E-mail marketing.

Email Marketing - marketing messages about products and services that target users are sent via e-mail. E-mail messages with advertising can be delivered to current customers of the company and its potential customers.

Email is over 40 years old, yet still has the ability to drive sales and secure customer loyalty and it is still their preferred way to receive marketing offers. But the days of batch and blast-style messages are over and to keep consumers engaged, marketers need to prioritise quality over quantity and deliver contextually relevant offers and promotions.

Lead generation

Lead generation is the process of collection of the user's contacts, contributing to the increase made to them on the website of "useful" activities. As a useful action may act to fill feedback forms, sending resumes, filling out a form on a call back download price list.

Lead generation is most effective when promoting complex products and services that require expert advice and a long time to think: loans, insurance, buying a car or expensive furniture, computer programs, choice of language courses, driving school courses.

Mobile marketing.

Mobile advertising - text ads are broadcast to users of mobile devices, according to the advertiser's landing settings, payment on transitions.

Ads are placed on mobile websites, mobile apps and web sites when browsing from mobile devices. Advertising can be to target:

· Device specific brand (example, Nokia or Samsung),

· A device with a specific operating system (eg, iOS, or Android),

· Subscribers to a specific mobile operator.

When mobile users often look for product information, for example, comparing the prices of goods in different stores, they read reviews about it. But increasing the number of purchases (61%) from the online store happens to personal computers [TNS]. However, the trial information is quite important, because if the user is not interested in the product at the stage of familiarization with him, he will not buy it.

With the help of mobile application products get a long-term communication with the consumer. If the client is added to mobile phone or tablet mobile application, and assesses it as useful, the consumer will always refer to it and to receive information about the brand in the "here and now" mode, at a time when he or she really needed it.

Applications of mobile services are sufficiently wide. With mobile applications, you can promote on the Internet books and magazines, organize delivery of food, flowers and household appliances. However, mobile application helps to increase sales only if the product mass. In other cases, mobile services are working to increase customer loyalty.

Retargeting.

Retargeting is a tool for internet marketing that allows you to show ads to users who have visited the advertiser's site, but do not make a purchase.

Retargeting allows users to return to the website, with the aim of bringing them before making a purchase. Visiting the website is one of the easiest conditions to adjust retargeting. But there is also more complicated combination of conditions.

1.3. The main trends in online marketing development and comparison table of Internet advertising tools

Table 2. Market size and growth by component until 2018. Global internet advertising market (US dollar millions)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Mobile internet advertising

2,13

3,05

4,93

8,16

14,14

18,91

23,83

28,38

32,84

37,47

Classified Internet advertising

10,52

12,29

13,50

14,29

15,92

17,05

18,06

18,86

19,62

20,45

Display Internet advertising

19,59

23,36

27,34

30,42

33,66

36,79

39,87

42,67

45,27

47,99

Video Internet advertising

1,56

2,22

2,97

3,95

5,10

6,50

8,31

10,31

12,35

14,83

Paid search Internet advertising

24,87

28,94

36,58

42,85

48,37

53,72

59,09

64,04

68,89

73,81

Total Global internet advertising market

58,67

69,86

85,32

99,67

117,1

132,9

149,1

164,2

178,9

194,5

Internet advertising revenue continues to grow year-on-year. The internet, considered more efficient than that in rival media like newspapers and magazines, has long challenged “old” media for advertiser dollars.

The great efficiencies and certainty that come with keyword targeting are helping paid search advertising remain attractive to buyers. While display advertising revenue has continued to grow, its annual growth rate has sunk beneath that of search.

Today there is mobile trend in marketing.

Mobile phones are driving this interconnectedness, especially among the poor. All regions are converging in mobile phone use. A technology diffuses rapidly when it is low in cost, easy to use, has high potential benefits, and fits well with the local context.

More than half the world's population currently uses a mobile phone. And annual growth in the number of unique users worldwide is about 3.4%. Each day worldwide sold 2 million units and 40% of them - smartphones.

Mobile is taking on a more central role across all markets, this can happen far quicker in those markets with no past history of using other devices. This lack of pre-existing alternative forms of web access distinguishes single-device, mobile-centric markets like Kenya where 98 per cent of time online is spent on a mobile.

Nevertheless, regular phones still dominate - 6 out of 10 phones sold. However, there is a tendency, according to which smartphones will account for more than half of all the active phones to the end of the second half of 2016.

In Cameroon, Ethiopia, Rwanda, Tanzania, and Uganda, more than four in five mobile phone owners have simple phones, not capable of browsing the Internet. Personal computers and the Internet, by contrast, require literacy and often foreign language skills.

In African countries, social networking, sending and receiving e-mails, instant messaging, and checking facts and definitions are the most common uses of the Internet. This is similar in Argentina, Brazil, Colombia, Mexico, Uruguay, and the European Union countries, especially with social networking (between 50 and 80 percent of all Internet users).

In developed countries users own at least two digital devices: a desktop, smartphone, tablet or laptop.

North American total Internet advertising revenue is forecast to grow to US$72.9bn by 2018, the overwhelming proportion of which will continue to come from the dominant US market. (Global Internet marketing report, 2015)

It contains some of the largest, most developed Internet advertising markets in the world, including the UK and Germany, the world's fourth- and fifth-largest Internet advertising markets, while the Middle East and African Internet advertising markets are still at an embryonic stage.

Growth drivers across the region, therefore, are varied. In more developed markets, some growth will occur through increased broadband penetration, higher speeds and increased usage of the medium. But growth will also come as a result of changes on the business side of online advertising. This includes changes in the way the medium is traded, particularly an increase in real-time bidding (RTB), and new creative formats within both search and display. And new, more accurate and customisable forms of targeting will also be crucial.

Internet advertising spends and the main trends by regions.

The UK, Germany and France, between them account for 17% of the global online advertising market. In contrast, while growth rates in the Middle East and Africa region will be particularly impressive across the entire five-year forecast period, this region will still only make up a minority of Internet advertising market.

Search is the dominant ad medium in this market. Paid search Internet advertising revenue took 44% of all spend. Display Internet advertising revenue was 10.3 bn US dollars in 2013, and will grow to 14.9 bn US dollars in 2018. Video Internet advertising revenue will see the strongest growth. (Global Internet marketing report, 2015).

The Asia Pacific region is an incredibly diverse online advertising market. It includes the world's second- and third-largest markets - China and Japan respectively - which themselves are at very different stages of development. In contrast, Australia and New Zealand, while small markets in terms of spend globally, are developed in terms of spend per capita. Then there are markets like India, Indonesia and the Philippines, which show enormous future promise and are gaining reputations for increasing creativity.

For the developing markets in Asia Pacific, growth will come simply from more users of the Internet. In markets like China and Malaysia, Internet penetration remains below 50%, while in markets like India and Indonesia, wired broadband penetration is under 10%, showing there is clear room for growth. For users in developing markets without access to fixed-line infrastructure, mobile Internet usage will take up the slack and the mobile will be the primary - and sometimes only - point of Internet access for hundreds of millions of users in rural areas.

Paid search Internet advertising revenue is currently the largest online advertising medium in Asia Pacific. Display Internet advertising revenue is the second most popular format and takes a 31% share of the market. (Global Internet marketing report, 2015)

Mexico and Brazil have historically been the largest online ad markets in Latin America but over the forecast period other territories, most notably Argentina and Colombia, will contribute to the regional total. And while a small market, in many respects, Chile is one of the most developed online advertising markets in Latin America.

The region's online advertising market generated revenues of 2.8bn US dollars in 2013, growing to 5.9bn US dollars in 2018. Growth is being fuelled by a number of factors: broadband penetration across the region is generally low (with the exception of Mexico at 68%), with broadband penetration in markets such as Peru and Brazil still close to only 30%. (Global Internet marketing report, 2015)

Revenue is also growing simply because users are spending a lot more time online and the number of consumers that have access to the Internet at home - as opposed to public locations like an Internet cafe - is growing. The rise of smartphones and LTE networks will open up the Internet to a whole host of Latin Americans who do not have the means to access the fixed network. Online advertising revenue will also receive a major boost in Brazil because of global event that will be held 2016 summer Olympic Games.

Paid search Internet advertising revenue is the dominant form of online advertising in Latin America. Display Internet advertising revenue, the next in terms of share. Facebook is also phenomenally popular in the region and will play an increasingly large role in the online display market. Mobile and video advertising will take a small share of the online advertising market during the forecast period. However, there is no doubting the importance of both media. Online video in the region is very popular - Brazil is one of YouTube's largest markets - while mobile will be the key way in which many of the region's users access the Internet.

On a global level, Internet advertising continues to grow in terms of both volume and its share of global advertising. Total Internet advertising revenue is representing year on - year growth of 17.6%. (Global Internet marketing report, 2015).

The number of Internet users continues to rise, in terms of both broadband penetration, and those that have access to the medium in public places like schools, libraries or Internet cafes. In key markets like China and Russia, penetration remains below 55%; in the likes of India and Indonesia, fixed broadband penetration is under 10%. Even in markets like the US, there is room to grow: fixed broadband penetration in the US is only 79.

Search remains, arguably, the most accountable of any medium, offline or otherwise, with advertisers able to see exactly what value they get on a cent-by-cent basis. Despite sites now have plenty of other sources for referrals - mobile apps, and social sites like Facebook. Google and other search engines, continue to innovate on their products to make them more attractive to both consumers and advertisers. In some local media markets, such search-related spending is therefore `leaving' the local industry.

Display, while not enjoying the meteoric growth it did in the early days of Internet advertising, also continues to expand. The declining cost of display advertising, while not necessarily healthy for the medium, has turned it into an extremely cost-efficient way to build mass and reach quickly. New and more creative brand-oriented formats, new forms of targeting, and new forms of buying and trading display advertising, will continue to drive the medium forward. (Global Internet marketing report, 2015)

Video advertising and mobile advertising will start to play a significant role in the online ad market by the end of 2018. Mobile devices are starting to become, for many users, particularly in developing markets, the primary rather than secondary way to reach the Internet, which opens up new opportunities for advertisers, especially as smartphone penetration increases throughout the forecast period. (Global Internet marketing report, 2015)

Table 2. Comparison of Internet adverting tools

Comparison parameters Tools

The main purpose

Advantages

Getting first results

The required additional elements

Disadvantages

SEO

Attracting traffic to a website, increase brand awareness

Targeted, search, people trust organic results

From 1 month to one year

Unique articles on the website

Long-term investment, lack of control, influence unknown factors

Paid search advertising

Attracting traffic to a web site, increase sales

Cost control, targeted, search, direct ROI, easy to track effectiveness

A few hours

Attractive advertising text with call to action

High competition has driven cost up, many tools to manage, long time to prepare ad campaign

Display Advertising

Increase brand awareness, the maximum coverage of the audience

Easy to create, attract attention, easy to manage

From several weeks to 1 month

Multimedia banner

Not targeted audience, ignored, limited amount of information in banner

Display contextual banner

Launching a new product on the market, increasing brand awareness

Targeted, search, attract attention

From week to 1 month

Images and attractive text

Not targeted audience (exception thematic web sites), ignored by customers

E-mail Marketing

Support customers loyalty

Targeted, increase sales, cost is quite low

From 1 month

Attractive text messages, pictures

“Spam”, some users don't read ad mails, difficult to track effectiveness

Social Media Marketing

Changing the existing brand reputation, loyalty, customers support

Majority of networks are free to access

From 1 month

Maintaining groups in social networks

Updating takes time, information is only visible for a short time before a new post replace

Targeted advertising

Brand awareness, reach and sales

Directly towards the consumer, many options of targeting, it doesn't “waste” money, easy to track.

From the first hours

Picture and attractive text with call to action

Must have community in the social network, losing money if don't know correctly the target audience, more expensive

Mobile marketing

Maintaining user interest in the product

Instant results, maximum reach in mobile today, personal (mobile is not shared), always on

From a few hours

A mobile apps, readable information in the ad, adaptation of web site to mobile view.

Not all older people have smartphones, different screen sizes, should have app or adopted site.

Lead generation

Collecting contact information of interested users

Get contacts of potential customers, useful for some area of business (language school, insurance and so on)

1-2 weeks

Creating a landing page

Proved contact information of user, but not real sales

Retargeting

Encouraging user to make a purchase

Attract customers who have already interested in a product

A month

Retargeting code on the web site

Long wait for results

It is necessary to assess the effectiveness of a communication channel and calculate the cost of acquiring a customer.

Any assessment of the online campaign begins with an analysis of site traffic.

Dynamics of attendance shows how successful advertising campaign was carried out and how many users come to the site. Statistics also show periods of sharp growth and recession, which will identify the critical moments of the campaign.

The important parameters are: time spent by the user on the site, depth views (measured in the number of pages viewed by the user in a single session) and the bounce rate (the percentage of visitors who viewed only one page and close the window).

Separately it is necessary to pay attention to the conversion of indicators - the percentage or number of users who have one or another desired action, such as order or visit the page "Contact Us". Conversion index will help you easily determine the value of a potential client, as well as in the management of orders for the company's sources of internal statistics to calculate the cost of the transaction.

With regard to PR and marketing concealed important indicators will be the following: the number of references to the company's ratio of positive and negative reviews, the number of requests increase brand.

In addition to evaluating the effectiveness of advertising campaigns is also necessary pay attention to the analysis of the site - its convenience for visitors. Behavioral analysis is determine the extent to which the site users' expectations.

2. Promoting products and services in the international market

One of the important elements of the development of any product is marketing. Marketing is the business activity that involves finding out what customers want, using that information to design products and services, and selling them effectively (Cambridge Journal, 2015). In order to better understand how a product will look like, what characteristics it should have to meet the needs of the consumer, it requires analysis of the market.

Nowadays, local and national borders are no longer limited company. The transition from local to international product and in a consequence to the global is a process that is fostered by globalization. In the global analyses it is important to consider economic, political, legal and cultural environments. (Helsen, Kotabe, 2011)

The `global strategy' concept has been interpreted in different ways, with initial discussion of the construct emphasising the idea that multinational firms should present a unified `face' in overseas markets (Fayerweather, 1969), and the notion of `the global village' with centralised manufacture of standard products for unified markets (Levitt, 1983). Bartlett and Ghoshal's (1995) influential work builds on this discussion, and they view global strategy as an efficiency-driven approach to competition in homogeneous overseas markets, realised through scale economies from concentrated production of standardised products.

In 1995 C.Nakata and K.Sivakumar, Professor University of Illinois, for the first time investigated the possible relationship between national culture and the development of new products by establishing a relationship between the new product development process, on the one hand, and the five parameters of the national culture, on the other hand.

These parameters were first put forward by Professor Geert Hofstede (1991) such as Individualism, Power distance, Masculinity and so on. Also, he has defined culture as “the collective programming of the mind distinguishing the members of one group or category of people from others”.

There are also more modern studies of the influence of culture on the process of product development. Kristiaan Helsen and Masaaki Kotabe in book “Global Marketing Management” raise issues “How is necessary to modify the product? What channels of promotion should use considering features culture? Which should be the name of the brand? How should the product be packaged?” (2011).

The effectiveness of the international activities of the company largely depends on understanding of the culture of another country, awareness of cultural differences among nations and strives to adapt to this situation. In this connection it is necessary to research the characteristics of national cultures.

Culture shapes the core values and norms of its members, these values are shared and transmitted from one generation to another through social learning processes (Erez, Gati, 2004).

Culture can change by coming into contact with another culture, through international trade or migration, for example (Berry, 1980). According to research "Cultural Diversity and its Impact on Global Consumer Markets" (2015), 232 million people leaved outside their country of origin in 2013.

Global starting point was a mass culture, uniting people of common melody, text, representations, generally known products, spread throughout the world, cultural stereotypes and even institutions.

The development of market relations dictates demands on the behavior of the individual in relation to goods and services, is the ability to make choices, make decisions, take responsibility, to resist the influence of advertising messages.

According to research of Erez and Gati (2004) the global environment creates a new collective and impersonal entity to which a person belongs, and which influences his identity. A global identity means that people develop a sense of belongingness to a worldwide culture, by adopting practices, styles, and information that are part of the global culture (Erez, Gati, 2004). Nevertheless, in parallel, people continue to hold their local identity as well, based on their socialization to their local culture (Erez, Gati, 2004).

It means that ever in global economic environment than people can be bi-cultural they continue to hold to local culture. In this case, when global marketing research is considered, also it is necessary to remember about all particular countries where this product could be launch.

Culture provides a set of orientations for members of society. It is necessary to consider following elements of culture: language (the spoken and guests), value systems, norms and standards, religion, social interaction, education, relation to technologies that are used for the production and consumption of goods and others. Notions of beauty and good taste are the esthetics. It is necessary to be sensitive to the esthetic preferences when developing products, especially packaging and advertising.

In most Western countries promoted as a cultural value of individualism, self-reliance, independence, individual responsibility. In Eastern countries valued orientation to group values, cooperation, emphasizes the importance of collective success, great importance is attached the hierarchy, respect for the status. It is necessary to remember that fact in developing promotion strategy.

Growth through geographic expansion requires creativity, knowledge, and a variety of experience. Cultural sensitivity of company can offer market-related advantages. As companies enter new market, cultural insight, understanding, and sensitivity

J. Muller and M. Izend considered the extent to which the effectiveness of banner advertising affect cultural and national-level factors. The researchers argue that attitudes toward advertising and intention to press on the banner depend on the cultural characteristics of isolated G. Hofstede.


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