The Role Of The Entrepreneur

The Role Of The Entrepreneur Previous studies have highlighted the changes by OECD countries from large companies consisting of mass production to smaller companies focusing on knowledge, initiative and flexibility. According to Karlsson et al, this change appears to have taken place from the mid-1970s to the early 1990s. (Karlsson et al., 2004; Acs, 1996 and 1999; Acs and Audretsch, 2001; Audretsch and Thurik, 1997 and 2001; Audretsch et al, 2002) The large managed economies invested in production, distribution and management. (Chandler, 1990) A large distributional network meant the products could reach large market. The smaller entrepreneurial economies focus on knowledge and flexibility as part of production. (Karlsson et al., 2004) Karlsson et al highlights the factors that caused the change from a managed economy to an entrepreneurial economy such as increased global competition, changes in demand and demographics, intensified uncertainty and new technologies. (Karlsson et al., 2004) Definition of Entrepreneurship The name Entrepreneur can be used very vaguely as it can cover a number of different roles. Thurik and Wennekers identified up to thirteen roles that the entrepreneur can be responsible for: The person who assumes the risk associated with uncertainty The supplier of financial capital An innovator A decision maker An industrial leader A manager An organiser and coordinator of economic resources The owner of an enterprise An employer of factors of production A contractor An arbitrageur An allocator of resources among alternative uses The person who realises a start-up of a new business (Thurik Wennekers, 1999) After much studying regarding the history of entrepreneurship and the economy, Hà ©bert and Link came up with the following definition for the entrepreneur: The entrepreneur is someone who specialises in taking responsibility for and making judgemental decisions that affect the location, form, and the use of goods, resources, or institutions. Thurik and Wennekers then came up with the following definition of entrepreneurship, with the help of Hà ©bert and Link (1989), Bull and Willard (1993) and Lumpkin and Dess (1996): Entrepreneurship is the manifest ability and willingness of individuals, on their own, in teams, within and outside existing organisations, to: perceive and create new economic opportunities (new products, new production methods, new organisational schemes and new product market combinations) and to introduce their ideas in the market, in the face of uncertainty and other obstacles, by making decisions on location, form and the use of resources and institutions. (Thurik and Wennekers, 1999) The Global Entrepreneurship Monitor (GEM) defines entrepreneurship as: Any attempt at new business or venture creation, such as self employment, a new business organisation, or the expansion of an existing business organisation by an individual, teams of individuals, or established businesses. (GEM, 2002) Invest NI simply defines entrepreneurship as: Someone who pursues business opportunities beyond known resources to create wealth. (Invest NI) History of Entrepreneurship Entrepreneurship and Economic Growth Theories Thurik and Wennekers split the historical entrepreneurial theories into three traditions: German tradition of von Thà ¼nen, Schumpter and Baumol Entrepreneur is the creator of instability and creative destruction. (Neo-)classical tradition of Marshall, Knight and Schultz Helps markets reach an equilibrium by carrying out entrepreneurial activities. Austrian tradition of Menger, von Mises and Kirzner The ability of the entrepreneur to realise opportunities for profit. Helps satisfy needs or improve market inefficiencies and deficiencies. Thurik and Wennekers attribute economic growth through entrepreneurship to three main entrepreneurial activities, enhanced competition, innovations and employment growth through firm start-ups. The following table, created by Thurik and Wennekers, shows the various schools of growth theory with the role of entrepreneurship: Growth Theories Neo-Classical Growth Theories Schumpeter/ Baumol Theory Karlsson et al highlights that the German traditions of Schumpeter in 1934 and Baumol in 1968, shows the entrepreneur as an innovator and inspirer, the implementer of creative destruction, creating instability, disequilibria and economic development. (Karlsson et al., 2004) A model by Aghion and Howitt tries to explain how creative destruction works. The Research and Development sector invents new production techniques, putting other techniques beyond use. As this new technique is used, the innovators are rewarded until a new technique superseeds his invention. (Aghion and Howitt, 1992; Thurik and Wennekers, 1999) Neo-Classical Theory While there have been a number of neoclassical growth models created over the years, the main one to have an impact has been that of Robert Solow in 1956. One of his main conclusions was that the accumulation of capital cannot account for historic growth per capita, nor the differences in international per capita output. Karlsson et al explains that the model is built where output is a function of capital and effective labour, where effective labour includes the knowledge and effectiveness of the labour force. Output therefore increases if either capital or effective labour increase, and with given levels of capital and labour, the only way growth can occur is through the expansion of knowledge, being the advancement of technology. The economy will eventually reach equilibrium, where output, capital and effective labour will all grow at a constant rate. This rate of growth is determined by the advances in technology. With this theory by Solow, the entrepreneur does not exist. Austrian Theory The Austrian Theory is where the entrepreneur spots an area of disequilibrium and attempts to profit from this situation by improving on the inefficiencies and deficiencies in the market. (Kirzner, 1973) Holcombe (1998) and Minniti (1999) agree that in order for opportunities to become available, they have to have been created by other entrepreneurs. Quite simply put by Karlsson et al, entrepreneurship generates more entrepreneurship. (Karlsson, 2004; Holcombe, 1998; Minniti, 1999) Endogenous Growth Theories (New Growth Theory) The Endogenous Growth Theory or New Growth Theory was developed in the 1980s as a response to the basic Neoclassical Theory of Growth. Many believe that the problem with the Neoclassical theories is that as growth is determined through the levels of technological changes, there is very little relating to the factors that affect technological progress. Romer (1986, 1990) and Lucas (1988) were responsible for the early development of this concept. (Hoque) It appears that generally within the endogenous models such as Romer (1986, 1990) and Lucas(1988), the entrepreneur does not hold a central role, however, Grossman and Helpman (1991) suggest that all Research and Development and investment decisions are made by forward-looking profit maximising entrepreneurs. (Karlsson et al, 2004; Grossman and Helpman, 1991) Hoque goes on to suggest that output and growth are dependent on the internal variable saving rate, which is converted into human capital investment used for innovating new ideas and methods. This variable saving rate allows for technological progress, resulting in the long-term growth of the economy. The endogenous growth theory focuses on a number of factors, including education, knowledge, research, training and experience. These factors help for growth and lead to innovation. Hoque mentions two types of innovation: Horizontal Innovation The Research Sector develops a variety of goods leading to a spillover effect on the economy. These goods can be patented and sold to the immediate goods sector who then have a monopoly power on each design and can therefore earn a monopoly return. Vertical Innovation This is where improvements are made to existing products, leading to a temporary increase in productivity and a sustainable increase in output growth. East Asian Miracle: 1965 1990 Thurik and Wennekers (1999) refers to the economic growth of East Asian countries in the past decade. These eight countries are referred to as the High-Performing Asian Economies (HPAEs) and include the Republic of Korea, Taiwan, Singapore, Hong Kong, Japan, Indonesia, Malaysia and Thailand. During the period of 1965 to 1990, they experienced an average GNP growth rate per capita of 5.5%. This growth can be taken from both exports of goods, as well as domestic demand. A number of public policies led to growing physical and human capital, the allocation of resources to productive investment and the gathering and perfecting of technology. Thurik and Wennekers, however, state that the innovation, private investment and marketing does not necessarily come from entrepreneurial activity and there is no obvious proof of an increase in entrepreneurship. Phelps commented on the paper by Mankiw (1995), claiming that with such an increase in human capital, entrepreneurship must be the reason, helped by the governments. Porter (1990) has also supported this viewed when writing about Emerging Korea in which he states two factors, being the willingness to take risks and the intensity of competition. Entrepreneurship and the Competitive Advantage of Nations An analysis by Porter (1990) was conducted in order to highlight the factors or conditions and determine the competitive strength of nations. Porters model was made up of four sets of factors in what was called the diamond model. Thurik and Wennekers describe these determinants below: Factor Conditions Porter distinguishes basic factors (e.g. natural resources and cheap, unskilled labour) from advanced factors (highly skilled personnel, modern networks infrastructure); Demand Conditions These have three main elements: the nature of buyer needs (e.g. sophisticated instead of basic), the size and the pattern of growth and the existence of mechanisms by which a nations domestic preferences are transmitted to foreign markets; Related and Supporting Industries The presence of internationally competitive supplier and related industries stimulates rivalry and partial cooperation; The Structure and Culture of Domestic Rivalry This encompasses a wide scope such as opportunities provided to possible new entrants, the nature of competition between incumbent firms, dominant business strategies and management practices. (Thurik and Wennekers) This diamond model is summed up by Porter (1990) as, Invention and entrepreneurship are at the heart of national advantage. With this model, Porter suggests that innovation comes directly from entrepreneurship. As well as this, he claims that international competitiveness is a vital link between entrepreneurship (innovation) and economic growth, with domestic rivalry being important in leading to international competitiveness. He also mentions that entrepreneurship is not a trait associated with smaller firms. (Thurik and Wennekers, 1999) Evolutionary Economics The concept of this theory is that each individual has a set of routines, which gradually evolve. These routines are tested in the market environment and due to natural selection, the most suitable one survives. (Karlsson et al., 2004) In this model, each individual has entrepreneurial spirit, human capital and venture capital. (Grebel et al., 2001) Eliasson (1994) mentions that in order for a firm to survive, competence is the most important factor and that accumulation of competence is the determinant of success. This was also backed up by a study conducted by Eliasson and Braunerhjelm (1998), claiming that economic growth stems from human-embodied tacit competencies. (Karlsson et al., 2004) Linking Entrepreneurial Activities to Economic Growth Competition Within the U.S., Acs (1996) suggests that employment growth is due to the increased competition. Geroski (1994) agrees that competition is important by stating that competition plays a significant role in stimulating productivity, with both new firms and new ideas provoking movements to, and outwards movements of, the production frontier which, the data suggest would not have occurred in their absence. Gort and Sung (1999) conclude that an increase in competition will lead to an increase in efficiency. This competition will affect efficiency in four ways: Greater incentive to stimulate demand Higher quality of capital inputs Lower monitoring costs Greater efficiency of firm-specific organisational capital and rivalry leading to innovation Dennis (1995) mentions how competition stimulates some people, but not everyone. These people will try to find a better and more profitable way of doing things in order to maintain or improve their position in the market. These people have chosen innovation rather than working harder. (Dennis, 1995; However, he also mentions how there are policy-imposed limits on competition which vary from country to country, giving the example that the U.S Postal Service who are owned by the government, are the only company allowed to deliver first class mail. This can allow a monopoly to form over a certain market and prevent competition occurring. Innovation The innovative activity of small firms has a different level of importance depending on the type of sector a firm is involved in. (Acs and Audretsch, 2001) Baldwin and Johnson (1999) mention a number of small firms in which innovation is important including electronics, instruments, medical equipment, steel and biotechnology. Acs (1996) goes further than this by calculating the number of innovations per 1000 employees in different industry sectors. When this measure was carried out in 1982 in the U.S., it was found that firms with less than 500 employees produced more innovations in fields such as electronic computing equipment, process control instruments, electronic components, engineering and scientific instruments and plastic products. (Karlsson et al., 2004) In studies conducted by Acs et al (1994), as well as Audretsch and Vivarelli (1996), it was found that innovations by small firms was greater if the firms were close to Universities. This shows the effect of education on innovation. Other studies have found that small firms are more likely to innovate in unexplored areas of technology, with the larger companies focusing on more established areas. (Acs, 1999) Rothwell and Zegveld found that all outputs from the UK which they studied were radical breakthroughs, with only 27% of U.S. firms producing these radical breakthroughs, 30% as major technological shifts and 37% as improvement type innovations. (Rothwell and Zegveld, 1982; Karlsson, 2004) Ernst and Young make a number of observations with regards innovation and entrepreneurship: Theres no time like a downturn to take advantage of entrepreneurial thinking A recent Ernst and Young survey found that the majority of entrepreneurs saw the economic slowdown as the perfect time to explore new opportunities. More than half of the companies on the 2009 Fortune 500 list were founded during a recession or bear market. The market leaders of today are not necessary the market leaders of tomorrow Entrepreneurial enterprises grow quickly, replacing the market share of many dominant corporations. Innovation can, and often must be, disruptive Disruptive innovation is often the turning point for business in an industry undergoing significant change. (Christensen, 1997) Applegate states, Disruptions in the business environment cause economic shifts that destabilise industries, companies and even countries. They allow new entrants or forward thinking established players to introduce innovations in products, markets, or processes that transform the way companies do business and consumers behave. (Applegate, 2007) She goes on to mention a number of factors which companies must consider when faced with disruptive business conditions: Technology Important emerging technologies and how they are being used by others to help create an advantage. Business Models New business models need to be created or adapted to help improve how business is done. Industry Dynamics Fragmented industries where significant value can be delivered through consolidation. Globalisation Adapt to how companies in another part of the world perform. Regulatory, macroeconomic, political and societal factors Changes in regulations, political power and society that disrupt major companies, providing opportunities for new companies. (Applegate, 2007) Never too big to be an entrepreneur Large firms are often weighed down by institutional structures that may see unconventional ideas or strategies as impractical or threatening. However, they can still innovate successfully by building and sustaining innovation-oriented cultures. Large companies have found that in addition to internal research, they can seek innovation through partnerships, joint ventures, licensing and investing in up and coming companies. Government policies that encourage entrepreneurship are most likely to result in increased innovation A 2009 report from the Ernst and Young Conference Board states, Policies that protect firms or industries can result in reduced incentives for entrepreneurs to invest in innovative ideas and for large firms to invest in Research and Development because they no longer face the competitive pressure to constantly improve their product in order to improve (or maintain) their market share. Ernst and Young highlight that the governments which are viewed as most effective when they stay out of the business sectors way, play an important role in helping the engines of growth which are entrepreneurs. They also highlight some ways in which the government can help: Strengthen and invest in education systems Encourage businesses to connect with global, cross-border markets Cultivate confidence in capital markets Simplify procedures and requirements Champion robust Research and Development programs Allow for failure Encourage sound public/private partnerships Make the tax framework friendly to innovation (Ernst and Young, 2009) Industrial Structure, Start-ups and Job Creation When it comes to the differences between large and small firms, Carree and Thurik (1998), as well as Vosloo (1994) highlight a number of advantages in smaller firms. Mentioned is the fact that a greater number of smaller firms dispersed geographically allow for customers to cut travelling distances. As well as this, variety can only be created by small firms and the entrepreneur running the firm is more likely to be energetic and motivational. Vosloo highlights advantages of small firms in developing economies, such as less capital per worker on average, higher likelihood of innovation per employee, greater flexibility, higher growth and job creation rates, as well as being able to serve a more niche market. Studies by both Audretsch et al (2002), as well as Carree and Thurik (1998), have found that on average, the employment share of large firms had a negative effect on growth of output and that smaller firms have helped economic growth. With regards to Germany, Wengenroth (1999) concluded that Small business was the catalyst of industrial growth in providing the background of skills and services which alone made possible the mass consumption of industrial product. Davis et al (1996) mentions that the entrepreneurship in start-ups makes a smaller contribution to job growth than expansion of existing firms in the U.S. This is also backed by a study conducted by Bednarzik (2000). It has to be noted however, that smaller firms have a higher gross job creation, with larger firms providing more in terms of net job creation. Carree and Klomp (1996) dispute this claim from Davis et al, arguing that relative to employment share, small firms created more net jobs relative to employment share. (Karlsson, 2004) What has regularly been found is that small firms can have a volatile job situation, with plenty of job growth, but also a lot of job destruction. Investec, a UK asset management group, have predicted a large number of job losses within the public sector with the hope that entrepreneurship will offset this. Their research also found that two thirds of Britains entrepreneurs expect to increase employment, with only 8% expecting job losses. (Investec, 2010) Ed Cottrell, from Investec Private Bank highlighted what is required by the new Coalition Government in the UK. With a new government formed, severe spending cuts will have to be enforced to help tackle the countrys debts, and this could lead to job losses, especially in the public sector. We need to make sure that entrepreneurs, which are the lifeblood of our economy, are properly incentivised to grow their operations and therefore hire more people. Philip Shaw, the chief economist at Investec Bank added, Entrepreneurs look for an environment that provides them with opportunity, reward and a flexible environment to operate in. They also look for stability and support, be that from the banks or the government, and it is in the best interest of the economy to provide this to them. (Investec, 2010) Entrepreneurship and Large Firms Entrepreneurial activity is not limited to small firms. Corporate entrepreneurship occurs in large organisations with Drucker (1985) claiming that they will not survive unless they acquire entrepreneurial competence. Stopford and Baden-Fuller (1994) explain that there are three types of corporate entrepreneurship: Creation of new businesses within an organisation often referred to as intrapreneurship. Transformation or strategic renewal of existing organisations. Carrying out an innovation that essentially alters the industry. (Stopford and Baden-Fuller, 1994) He also highlights five attributes common with corporate entrepreneurship: Proactiveness Aspirations beyond current ability Team orientation Capability to resolve dilemmas Learning capacity Stevenson and Jarillo (1990) refer to corporations acting entrepreneurially, pursuing opportunity, whether through specific company structures or not, constitutes the core of entrepreneurship, both individual and corporate. They highlight how dependant management are on the individuals within a firm to create this corporate entrepreneurship. Bridge et al (1998) highlight the difference between inventors and intrapreneurship. Inventors are usually individuals, but intrapreneurship is frequently carried out by groups or teams. Thurik and Wennekers (1999) concludes by stating that corporate entrepreneurship plays an essential role in the process of strategic renewal of large and incumbent firms. In the short-term, corporate entrepreneurship can occur at the same time as downsizing and the loss of jobs, however, in the long-term, it enhances competitiveness and leads to sales growth. Thurik and Wennekers (1999) also mention how studies have shown that there seems to be a strong evidence to support a positive impact of corporate entrepreneurship on economic growth. They created a table to show the differences between individual and corporate entrepreneurship: Figure 2 Individual and Corporate Entrepreneurship According to Cole and Neumayer (2003), neoclassical growth theory predicts that poor economies grow faster than rich economies. This is taken from the theory that if all economies are assumed to have the same steady state, then the only difference between countries is the initial level of capital and poor economies will grow faster as they are further away from their steady state. Measuring Entrepreneurship GEM (Global Entrepreneurship Monitor) The Global Entrepreneurship Monitor is a global measure of entrepreneurial activity to assist in entrepreneurship policy research. The project has now been running for 12 years and covers over 34 countries worldwide. GEM aims to fulfil a number of research questions similar to this dissertation: How much entrepreneurial activity is taking place in each county? Why do levels of entrepreneurial activity differ between countries/regions? What are the links between entrepreneurial activity and economic growth and productivity? Surveys conducted by GEM are used to collect information on different types of businesses at a range of entrepreneurial activity. These three business types are: Start-ups Young businesses Establishes businesses Research from GEM continues to associate a positive correlation between start-up activity and economic development, highlighting key indicators of entrepreneurial capacity and tendencies. A Background to Northern Ireland Northern Ireland is one of four countries located in the United Kingdom. With a population of 1.7 million people as of 2004, it is the smallest of these countries. (UK Statistics Authority, 2004) Traditionally, Northern Ireland has been known for having an industrial economy, for example, in the shipbuilding and textiles businesses. This has since been replaced by the services industry. For example, Harland and Wolff, a shipbuilder located in Northern Ireland, once employed around 35,000 people. Nowadays, there are only around 500 employees focused on the repairing of oil platforms and the assembly of wind turbines. Northern Ireland has for a long time suffered from a troubled past, with the most recent referred to as The Troubles. This has been dated from the late 1960s to the signing of the Good Friday Agreement in 1998. (Aughey, 2005) During this time, threats of bombings, the high cost of security and the lack of a stable market, meant large companies were reluctant to invest. This also drove away many of the existing businesses. (Rowthorn Wayne, 1988) Confidence gradually built up within Northern Ireland since the mid 1990s, when many paramilitary groups initiated cease fires and political parties began to work together. However, the signing of the Good Friday Agreement in 1998 proved to the rest of the world that the majority of Northern Ireland were willing to move on from the troubled past. Twelve years on and unemployment has fallen sharply, as well as many people immigrating to Northern Ireland from other EU countries. (BBC, 2008) The current rate of unemployment stands at 6.8%, amongst one of the lowest of the regions in the United Kingdom, compared with a peak in 1986 of 17.2%. (DETINI, 2010) (BBC, 2001) Entrepreneurship within Northern Ireland Previous research into the effect of entrepreneurial activity on economic growth by organisations such as the Global Entrepreneurship Monitor (GEM) and the Organisation for Economic Co-operation and Development (OECD), have shown a direct correlation. (Hegarty, 2006) According to the GEM survey in 2009, Northern Ireland was ranked 9th out of 12 UK regions for Total Entrepreneurial Activity (TEA). There has still, however, been a rise in the TEA rate since 2002, despite the impact of the economic recession. (GEM, 2009) Figure 1 below shows the change in Total Entrepreneurial Activity since 2002: Figure 3 Total Entrepreneurial Activity in Northern Ireland and the UK (2002 2009) (GEM APS) This TEA value is calculated using the percentage of early-stage entrepreneurial activity among the adult population, aged 18 64 years. (Pfeifer and Sarlija, 2010) In order to qualify and be included in the TEA value, respondents have to be involved in either: Nascent Ventures The firms generally referred to as start-ups. Any respondent actively involved in creating a new business that they would own or part of and had not paid any salaries or wages to anyone for more than three months. Young Businesses More established, owner-manager businesses but have not been paying salaries for more than 42 months. Lee et al explains that there are two academic approaches to categorise entrepreneurship. The first way is to focus on the entrepreneurs and understand why they chose to start a new business and be an entrepreneur. The second way is to study regional variation in the formation of new businesses. (Lee et al., 2004) For this study, both approaches will be used. A number of factors can be studied in order to determine how entrepreneurship affects economic growth. Storey (1994) focused on factors such as personality, human capital and ethnic origin whereas Evans and Leighton (1990) focused more on factors such as educational attainment and work experience. Previous research has linked a higher educational attainment with new business formation. (Evans and Leighton, 1990) Evans and Leighton also found that men with greater financial resources and greater confidence in their ability are likely to be self-employed. (Evans and Leighton, 1989) Regional factors that affect birth rates of businesses include unemployment, population density, industrial clustering and the availability of financing. (Reynolds et al., 1994) Armington and Acs (2002) also highlighted factors such as income growth and population growth. Factors Affecting Entrepreneurship Gender Female entrepreneurial activity within Northern Ireland between 2002 and 2009 has been significantly below the UK average. In 2009, 2.4% of females were engaged in early stage entrepreneurial activity compared to the UK average of 3.7%. This value is also under a third of male entrepreneurial activity within Northern Ireland, which stands at 8%. Figure 2 shows the female early-stage entrepreneurial activity for Northern Ireland compared with that of the UK average. A report by Crimson Business Limited, highlighted possible reasons why women are less likely to be entrepreneurial than men: Under-capitalisation of ventures Low levels of self-confidence Visibility of appropriate role models The report indicates that these barriers to women becoming entrepreneurs needs to be overcome with greater support from the government. (Crimson Business Limited, 2006) These barriers are not seen globally however, with different parts of the world having different cultures and customs with regards the participation of women in the economic growth of countries. For example, in countries such as Tonga and Guatemala, women are more likely to be involved in early-stage entrepreneurial activity than men. (Bosma and Levie, 2009) Age In 2009, total entrepreneurial activity for those aged 18 24 in Northern Ireland was 2.3% of the adult population. This is compared with a UK average of 3.4%. Northern Ireland remains, as it has done in recent years, with a peak in total entrepreneurial activity between the ages of 25 and 34. A surprising decline in entrepreneurs between the ages of 35 and 44 has been seen in 2009, against the trend of the rest of the UK

Effectiveness of E-Marketing

Effectiveness of E-Marketing Virtual Era- New Features In Marketing Cap Synopsis Aim: The purpose of this study is to analyze the current practices going on in the Indian market in terms of using the virtual market and virtual marketing as tool to enhance bottom top line and for a better penetration. It would also throw light on various marketing strategies can be synchronized with web marketing for better and optimum results. Objective: The study would predominantly give an idea about the effectiveness of E-Marketing in contemporary scenario wherein most of the companies are using it as the most effective tool to ensure that their product or services are being reached to masses, because of the pervasive nature of web market its another feather in the cap of market. This thesis depicts how a small sized Business-To-Business company can create an e-marketing plan. For this purpose, this thesis would incorporate most of the industries that are into the business of serving customers with their product services. The thesis first carries out a literature study to explain the concepts and methods related with the e-marketing activities. Furthermore, the case company is introduced. Since an e-marketing plan is similar to a marketing plan, the products, target markets and competitors are also introduced among others. During the case study, the advices and the strategies are proposed. Since the thesis has a â€Å"hands-on implementation† feature, some of the strategies are implemented by sticking to the â€Å"action plans† in an iterative way. Doing so, thesis depicts evaluation for the recommended strategies. Finally, conclusions and areas for future work are presented along with the â€Å"Lessons Learned† during the project. Methodology: The method used for finding the relevant information for the research is mentioned below: 1) Secondary Research a. Internet Assistance b. Books, Articles working papers c. Magazines Journals 2) Primary research Primary research would predominantly look on analysis part of consumer behavior to track their behavior of web marketing. a. General Observation on site I. Closer observation on shoppers Behavior II. Functionality of Industry III. Impact of E-Marketing b. Questionnaire I. Sample size would be 100 II. Multi-dimensional Sampling III. Factor Analysis c. Focus Group Interview I. General Discussion with customers d. Interview I. Extensive Meetings with Industry people.Based on this I will conclude that whether consumers are being affected by the ways of web marketing of industries or not or what should be the modus operandi of companies to allure their target audience. Virtual market Forty nine of the Worlds leading food, beverages, and consumer products companies have joined hands to form the largest business to business e-Market place Transora.com. The new company is the first of its kind owned by the consumer products industry. Transora will help consumer products companies across the world to streamline business transactions with their buyers, suppliers and distributors through the internet. Transoras services will span the entire supply chain-from suppliers to manufactures to retailers-and provide procurement, vendor, and product catalogues, online order management, supply chain collaboration, and financial services. The companies have committed nearly us $ 250 million for funding Transora (CBI News Bulletin, July/august 2000) The buzz word viral marketing and coral advertising and virtual marketing refers to marketing techniques that use pre-existing social networks produce increase in brand awareness or to achieve other marketing objectives (such as product sales) through self replicating viral processes, analogues to the spread of pathological and computer viruses. It can be word of mouth delivered or enhanced by the network effects of the internet. Viral promotions may take the form of video clips, interactive flash games, Adver games, EBooks, brand able software, images, or even text messages. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high social networking potential and create viral messages that appeal to this segment of the population and have a high probability of being taken by another competitor. The term viral marketing or virtual marketing has been also used pejoratively to refer to stealth marketing campaigns- the unscrupulous use of astroturfing on line combined with under market advertising in shopping centers to create the impression of spontaneous word of mouth enthusiasm. Internet marketing Internet marketing also referred to as marketing, web marketing, online marketing or eMarketing is the marketing of products or services over the internet. The internet has brought media to a global audience. The interactive nature of internet marketing in terms of providing instant response and eliciting responses is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it only refers to the internet, email, and wireless media, but it includes management of digital customer data and electronic Customer Relationship Management (CRM) system. Internet marketing ties together creative and technical aspects of the internet, including design, development, advertising, and sales. Internet marketing also refers to the placement of media along with different stages of the Customer Engagement Cycle through search engine Marketing(SEM), Search Engine Optimization(SEO), banner ads on specific websites, email marketing, and web 2.0 strategies. In 2008 the New York Times, working with co score, published an initial estimate to quantify the user data collected by large internet based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found the potential for collecting data upward of 2500 times on average per user per month. eMarketing EMarketing is a subset of e business that utilize electronic medium to perform marketing activities and achieve desired marketing objectives for an organization. Internet marketing, interactive marketing, and mobile marketing for example, are all the form of e marketing. eBusiness EBusiness means utilizing electronic medium in everyday business activities. There are several levels of involvement in when it comes to EBusiness. For example where one organization relies completely on e business the second one way chooses a mixed presence and means of doing business. Difference Difference between eBusiness, eCommerce, and eMarketing †¢ eBusiness is a very broad entity dealing with the entire complex system that comprises a business that uses electronic medium to perform or assist its overall or specialized business activities. †¢ eCommerce is best described in a transactional context. So for example an electronic transition of funds, information, or entertainment falls under the category handled by principles of eCommerce. Technically e commerce is a part of e business †¢ eMarketing is also a part of e business that involves electronic medium to achieve marketing objectives. E marketing is set on a strategic level in addition to traditional marketing and business strategy. Difference between e marketing and interactive marketing eMarketing is a broader term that describes any marketing activity performed via electronic medium. Interactive marketing is generally a sub of eMarketing that involves a certain level of interaction. Difference between eMarkeitng and internet or web Marketing: There is no real difference between eMarketing and internet or web marketing. However, with the arrival of mobile technologies such as PDAs and 3G mobile phones, as well as interactive television, both terms would see eMarketing and internet or web marketing as subtly different, for example chaffy; Internet {or web} marketing is achieving marketing objectives through applying digital technologies. eMarketing is achieving marketing objectives through use of electronic communications technology. Whilst this distinction is wholly acceptable, it is difficult to see where the distinction lies between digital technologies and electronic communications technologies, especially with the convergence of technologies such as mobile devices. Advantages of eMarketing Following are some of the advantages of e marketing: à ¼ Reduction in costs through automation and use of electronic media. à ¼ Faster response to both marketers and the end user. à ¼ Increased ability to measure and collect data. à ¼ Opens the possibility to a market of one through personalization. à ¼ Increased interactivity. Disadvantages of eMarketing Following are some disadvantages of eMarketing: à ¼ lack of personal approach , à ¼ Defensibility on technology, à ¼ Security, privacy issues, à ¼ Maintenance costs due to a constantly evolving environment, à ¼ Higher transparency of pricing and increased price promotion, à ¼ Worldwide competition through globalization. eMarketing Plan eMarketing plan is a strategic document developed through analysis and research and is aimed at achieving marketing objectives via electronic media. eMarketing plan represents a sub set of organizations overall marketing plans supports the general business strategy. Every good eMarketing plan must be developed in line with the organizations overall marketing plan. In a broad sense e marketers generally start by analyzing the current micro- and macro economic situation of the organization. eMarketers must observe both internal and external factors when developing an e marketing plan as trends in both micro environment elements are: pricing, suppliers, customers. Examples or macro environment are: socio economic, political, demographics and legal factors. In order to reduce a viable e marketing solution, e marketers must first understand the current situation of the company and its environment, profile, segment the target market and then strategically position the products as to achieve optimal response with the target market. This is generally achieved through SWOT analysis. By assessing organizations strengths and weaknesses and looking at current opportunities and threats one can devise an e marketing strategy that can improve the organizations bottom line. eMarketing(in brief) eMarketing is essentially a part of marketing. But à ¼ What is the difference between eMarketing and internet or web marketing? à ¼ What are the eMarketing tools? And how do marketers plan for eMarketing? The American marketing association definition 2004 is as follows: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Therefore e marketing by its very nature is one aspect of an organizational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. As such an aspect, eMarketing has its own approaches and tools that contribute to the achievement of marketing goals and objectives. This also helps us to differentiate between eMarkeitng and eCommerce, since eCommerce is simply buying and selling online: What are the eMarketing tools? The internet has a number of tools to offer to the marketer. à ¼ A company can distribute via the internet e.g. amazon.com, à ¼ A company can use the internet as a way of building and maintaining a customer relationship e.g. Dell.com, à ¼ The money collection part of a transaction could be done online e.g. electricity and telephone bills, à ¼ Leads can be generated by attracting potential customers to sign up for short periods of time, before signing up for the long-term e.g. which.co.uk, à ¼ The internet could be used for advertising e.g. Google Adwords, Finally, the web can be used as a way of collecting direct responses e.g. as part of a voting system for a game show. How do marketers plan for eMarketing? There are two ways to looking it; à ¼ An existing organization may embark upon some eMarkeitng as part of their marketing plan. à ¼ An organization trades solely on the internet and so their marketing plan focuses purely on eMarketing. The marketing plan in either case is the next step, whether focused upon eMarketing or all, marketing. The next lessons focus upon a tailor-made eMarketing plan which conforms to the Acronym AOSTC {from our generic marketing planning session} Situation analysis for VIRTUAL marketing The situation analysis for eMarketing bridges the internal audit and competitor research. It answers the question where are we now in terms of our marketing (internal v/s external perspective)? The analysis literally considers your eMarkeitng situation by considering the fit between internal and external factors. There are similarities with traditional concepts and techniques, but you need to focus upon digital commerce. Here we consider the 5ss of internet marketing, the customer life cycle, and the application of SWOT analysis. The Customer Life Cycle (CLC) The customer life cycle is a tool that creation and delivery of lifetime value to customers i.e. CLC looks at products and services that customers need throughout their lives. It is market oriented rather than product oriented. Key stages of the customer relationship are considered. SWOT analysis-ranked and weighted SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. its flexibility. Since SWOT analysis can be used in a variety of scenarios, it has to be flexible. To overcome these issues, one should employ a power SWOT. SWOT analysis-Power SWOT SWOT analysis is a marketing audit that considers an organizations strengths, weaknesses opportunities and threats. Our introductory lesson gives you the basics of how to compete your SWOT as you begin to learn about marketing tools. As you learn more about SWOT analysis, you will become aware of a number of potential limitations with this popular tool. This lesson aims to help you overcome potential pitfalls. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. flexibility since SWOT analysis can be used in a variety of scenarios, it has to be flexible. However this can lead to a number of anomalies. Problems with basis SWOT analysis can be addressed using a more critical power SWOT. Power is an acronym for personal experience, order, weighting, emphasizing detail, and rank priorities. This is how it works. How do you the marketing manager fit in relation with the SWOT analysis? You bring your experiences, skills, knowledge, attitudes, and beliefs to the audit. Your perception or simple gut feeling will impact the SWOT. Often marketing managers will in adversely reverse opportunities and strengths, and threats and weaknesses. This is because the line between internal strengths and weaknesses, and external opportunities and threats is sometimes difficult to spot. For example, in relation to global warming and climate change, one could mistake environmentalism as a threat rather than a potential opportunity. Too often elements of a SWOT analysis are not weighted. Naturally some points will be more controversial than others, so weight the factors. One way would be to use percentages e.g. threat a=10%, threat b=70%, and threat =20 %{ they total 100%} Detail, reasoning, and justification are often omitted from the SWOT analysis. Where one tends to find is that the analysis contains lists of single words. For example, under opportunities one might find the term technology. This stage word does not tell a reader very much. What is really meant is: Technology enables marketers to communicate via mobile devices close to the point of purchase. This provides the opportunity of a distinct competitive advantage for our company. This will greatly assist you when deciding upon best to score and weight each element. Once detail has been added, and factors have been revived for weighting, you can then progress to give the SWOT analysis some strategic meaning i.e. you can begin to select those factors that will most greatly influence your marketing strategy albeit a mix of strengths, weaknesses, opportunities and threatens. Essentially you rank them highest to lowest, and then prioritize those with the highest rank e.g. where opportunity c= 60% opportunity a= 25% and opportunity b = 10% you marketing plan would address opportunity c first, and opportunity b last. It is important to address opportunities primarily since your business should be market oriented. Then match strengths to opportunities and look for a fit. Address any gaps between current strengths and future opportunities. Finally attempt to rephrase threats as opportunities (as with global warming and climate change above), and address weaknesses so that they become strengths, Gap analysis would be bridge the gap between them. Competitor research for Virtual marketing (External perspective) As you plan for eMarketing and during the plans implementation, one needs to play careful attention to the activities of competitors, so competitors research for eMarketing is essential when attempting to answer the question where are we now (external perspective). There are a number of approaches that can be employed, with the emphasis on each approach shifting depending upon the nature of our e business and market. Here are some key tools of competitor research for eMarketing. à ¼ Use search engines. Ø General topics such as Google, yahoo And msn Ø Type names of competitors Ø Type industry, product or term Ø Search ‘down in to a directory structure e.g. yahoo Ø Search a competitors web site Ø Product information , press released, job opportunities Ø Pricing information Ø Distribution information such as where to buy. à ¼ Hunt for trade associations Ø Search for personal pages or blogs Ø Different perspective e.g. fans, ex-employees. Ø e.g. v www. blogger. com , v www. myspace. com, v www. youtube. Com. à ¼ Ask your target market. Ø Send question to named personnel, newsgroups, personal pages, mailing lists. Ø Conduct a survey using. Ø Buy secondary reports e.g. data monitors, mintel. à ¼ Newsgroups and post queries, Ø newsgroups on bulletin boards or forums Ø Deja. com(Google) Ø Read online financial information Ø research public companies Ø iii.co.uk ample up Ø ft.com up à ¼ Read online competitive information. Ø e.g. hoovers.com paid for, inus à ¼ Study demographic reports Ø statistics.gov.uk/ census in up Ø census.gov inus à ¼ Original source material Ø Business source elite, newspapers, Kellys compass. à ¼ Monitor special interest material Ø Business source elite, newspaper, Kellys, compass. à ¼ Monitor special interest material. Ø E.g. marketing week (BSE), campaign (BSE), marketing (BSE). à ¼ Use a professional researcher EMarketing Mix The eMarketing mix is essentially the same as the marketing mix. it is simply the adaption of price, place product, and promotion to the eMarketing context. Of course one could also include physical evidence, people, and process when marketing planning for an online service. Below are a series of lessons that consider how markets can apply the eMarketing mix to their organizations own product, service, brand, or solution. E marketing price The eMarketing mix is simply an adaptation of the traditional marketing mix and ‘P for price. However, the internet has influenced how online businesses price in a number of ways. E Marketing Place {Place tactics as part of the eMarketing mix.) The e marketing space consists of new internet companies that have emerged as the internet has developed, as well as those pre-existing companies that new employ eMarketing approaches as part of their overall marketing plan. For some companies the internet is an additional channel that enhances or replaces their traditional channel of place. Pre Existing companies that have adopted eMarketing These are traditional companies that trade on the internet, Banking and financial services e.g. HSBC bank. Banks and financial services have benefited tremendously from the popularity of internet usage. There is a mixture of new online banks and traditional banks, both offering online banking services. Essentially banks no longer need to invest in high cost, high street selling unit i.e. old fashioned town-based banks. Labor costs have also been reduced since much of the traditional banking bureaucracy is done using it and the use of overseas call centers has meant that salaries are much lower. Software also means that customers can be retained by using Customer Relationship Management (CRM) eMarketing approaches. E marketing product Considered product as part of the marketing mix. Two previous tools for product decision-making have been introduced- Product Life Cycle (PLC) and the three levels of a product. Both of these tools and equally applicable to the context of e marketing and can be easily applied to include e marketing and product. For example a product marketed solely online will go through a life cycle in the same unpredictable way as a product marketed through any traditional channel (PLC). Products marketed online will have a core benefit tot eh customer, be an actual tangible product, with augmentation that ads value such as insurance, warranties and so on three levels of a product). Although tools actually specify the term ‘product, they can be easily adapted to include brands. Services or solutions. E marketing product/business matrix (depicted below should be used in conjunction with Product Life Cycle (PLC) and the three levels of a product. It represents additional tools for audit that bridges existing businesses and new online start-us, and existing products and new products. It allows marketers to categories those marketing on the internet as an online extender, an online alternative, an online innovator (existing business), and Oran online innovator (online start-up). Let us look at it in more detail; A- Online extender An on line extender is an existing business that has a strategy whereby it extends its marketing activities to the internet. It could be any traditional, terrestrial organization that has historically grown through using traditional channels of distribution to get existing products, brands, services, or solutions to market. B- Online alternatives The online alternative is a new start-up that uses the internet as an original channel of distribution to get products, brands, services or solutions, currently available elsewhere, to, arekt. Some segments may be better targeted with this online alternative for example remote or fragmented markets. C and d- Online innovators Online innovators come in two forms; C- Online innovators are existing businesses that see a benefit to launching new and innovative products, brands, services or solutions online by leveraging new technology. Existing businesses have a wealth of knowledges and learning that underpin their moves onto the web. Remember, the internet is not a business paradigm shift (at last not yet) and so current business approaches are often adapted for the internet. Existing businesses have experience. D- Online innovators are start-ups that seize the opportunities to launch new and innovative products, brands, services, or solutions online. Deposit not having as much knowledge and learning as some of their competitors, they are flexible and can move much more quickly. Start-ups often experience. We have already considered product as part of the marketing mix. Two previous tools for product decision- making have been introduced product life cycle and the three level of a product. E marketing promotion Ø It looks at ways of increasing the popularity of your website by looking at the internal optimization of the website itself. It considers many important ways of building your traffic, including Search Engine Optimization (SEO) approaches. Ø It looks at ways of increasing the popularity of your website by looking at external sources of internet advertising. Ø Lesson internet marketing and promotion: internet advertising. Ø This lesson looks at ways of increasing the popularity of your website by looking at external sources of internet advertising. Ø Pay per click advertising Ø Google ad words. Google ad words are a Cost per Click (CPC) online advertising program. Identically that means that you decide upon key word that relates closely to your product or service. Using Googles tools, you price how much it would cost your per click for your chosen keyword- this could be lucent, $1.50 or more, depending on the popularity of the keyword. So the keyword marketing would be more expensive than the keyword marketing cheese china because of its level of popularity. You then allocate a budget, and pay Google by credit card. You can control the length of your campaign, or end it as soon as the money in PPC management (Pay per Click Management) or recruit a verified Google awards professional. Adverts appear alongside Google search results- so go to Google and search for marketing. The ads appearing alongside the main search results are cps. Ads also appear on selected content websites-such as www.chichesteuk.com-look at the adverts along the top, and down the right hand column- this is where ads based upon the keyword chic ester would appear. You only pay for adverts that get clicked- not for page views- so you pay nothing if your advert is simply viewed. There is also an opportunity for ‘Smart pricing whereby you pay more for the advert if a sale is guaranteed e.g. you have a website based upon fishing- you write a review of a new type of fishing rod, the visitor then sees an ad for the same rod in an ad words text ad running on the same page then clicks on it and buys from the advertiser. Adwords is a very targeted and controllable way of online advertising hence the huge rises in income and profit for Google over recent times. EMarketing Price (Pricing tactics as part of the eMarketing mix.) The eMarketing mix is simply an adaption of the traditional marketing mix and ‘P for price. However the internet has influenced how online businesses price in a number of ways. International pricing and competition give consumers access to the lowest price for any generic good. For example, British consumers benefit when buying products from the United States since there is almost two dollar to the pound. Conversely this makes British goods more expensive to the American consumer. So it is cheap to buy spectacles from a us website and then to import them into the UK (even including transport costs and import taxes) Online auctions are a popular and innovative way of pricing, for example ebay. Here you register with the online auction company as a seller and/or a buyer. You can place an item into auction where buyers bid against each other. The highest bidder wins. The auction websites takes a commission. The commission is factored into the price you pay. Greater access to pricing information, more quickly and in a format that makes pricing comparable and transparent. There are a number of sites that will compare and contrast prices for the same or similar goods and services e.g. prices on car insurance. Pricing could also include the cost of an online advertising medium such as Google ad words. Here an online supplier would buy a keyword located in a text or image based advert onto Googles own search engine or onto a website belonging to a Google publisher. For example you search term hair straightness on Google and you are directed to a site about hair dressing. On this site is plenty of information about hair straightening, placed next to some contextual adverts. You click on the advert and you are taken to a site selling hair dressing supplies. You buy the hair straightness and your supplier pay a small ‘Pay-Per-Click fee which is split between Google and their publisher. This is factored into the price you pay. Traditional pricing tactics used in eMarketing Of course the internet marketers still has a whole selection of the more traditional pricing approaches to choose from that can be adapted to eMarketing scenarios: Premium pricing e.g. selling music via iTunes. à ¼ Penetration pricing e.g. giving away free subscription to land grab market share for new start ups such as youtube.com and myspace.com. à ¼ Economy pricing e.g. selling basic products and services online likes basic design or paperclips. à ¼ Price skimming e.g. new product launches online such as albums or games. à ¼ Psychological pricing e.g. products and services sold at 99p or $99.99 (price point perspective). à ¼ Product line pricing e.g. subscription 1 @ free, subscription 2 @ $10.00(with added value) and subscription 3 @ $49.99 for 10 year. à ¼ Pricing variations e.g. budget airlines selling tickets online where the first tickets bought are the cheapest, and the last ones bought tend to be more expensive. à ¼ Optional product pricing e.g. selling a holiday online with travel insurance. à ¼ Captive product pricing e.g. once you buy virus software from one brand, your updates must also come from them. à ¼ Product bundle pricing e.g. buying internet access which comes with free online phone calls. à ¼ Promotional pricing e.g. betting incentives, such as free dollars to gambles online for current customers that gamble on football games to tempt them to play online pocker, or vouchers with codes sent by email as rewards e.g. Amazon.com. à ¼ Geographical Pricing e.g. Microsoft pricing in different currencies in different international markets. Search marketing {Overture and yahoo} Overture is the yahoo equivalent of Googles ad words. Now known as yahoo Search marketing, overture has a series of sub-products that make up its internet marketing program. Here some examples: 1) Sponsored search: Displays your advert at the top of the search engine results. So your potential customers search for a ‘keyword and your advert appears at the top of the results page. Again, as this ad words, the advertisers bid against each other to obtain the position that will generate the most convertible traffic to their site. Popular keywords will cost more-obviously. 2) Local advertising: Gets your business listed in yahoos business directory. So if you wish to promote products in specific regions next to specific search keywords, this is a much targeted geographical services. Overture h Effectiveness of E-Marketing Effectiveness of E-Marketing Virtual Era- New Features In Marketing Cap Synopsis Aim: The purpose of this study is to analyze the current practices going on in the Indian market in terms of using the virtual market and virtual marketing as tool to enhance bottom top line and for a better penetration. It would also throw light on various marketing strategies can be synchronized with web marketing for better and optimum results. Objective: The study would predominantly give an idea about the effectiveness of E-Marketing in contemporary scenario wherein most of the companies are using it as the most effective tool to ensure that their product or services are being reached to masses, because of the pervasive nature of web market its another feather in the cap of market. This thesis depicts how a small sized Business-To-Business company can create an e-marketing plan. For this purpose, this thesis would incorporate most of the industries that are into the business of serving customers with their product services. The thesis first carries out a literature study to explain the concepts and methods related with the e-marketing activities. Furthermore, the case company is introduced. Since an e-marketing plan is similar to a marketing plan, the products, target markets and competitors are also introduced among others. During the case study, the advices and the strategies are proposed. Since the thesis has a â€Å"hands-on implementation† feature, some of the strategies are implemented by sticking to the â€Å"action plans† in an iterative way. Doing so, thesis depicts evaluation for the recommended strategies. Finally, conclusions and areas for future work are presented along with the â€Å"Lessons Learned† during the project. Methodology: The method used for finding the relevant information for the research is mentioned below: 1) Secondary Research a. Internet Assistance b. Books, Articles working papers c. Magazines Journals 2) Primary research Primary research would predominantly look on analysis part of consumer behavior to track their behavior of web marketing. a. General Observation on site I. Closer observation on shoppers Behavior II. Functionality of Industry III. Impact of E-Marketing b. Questionnaire I. Sample size would be 100 II. Multi-dimensional Sampling III. Factor Analysis c. Focus Group Interview I. General Discussion with customers d. Interview I. Extensive Meetings with Industry people.Based on this I will conclude that whether consumers are being affected by the ways of web marketing of industries or not or what should be the modus operandi of companies to allure their target audience. Virtual market Forty nine of the Worlds leading food, beverages, and consumer products companies have joined hands to form the largest business to business e-Market place Transora.com. The new company is the first of its kind owned by the consumer products industry. Transora will help consumer products companies across the world to streamline business transactions with their buyers, suppliers and distributors through the internet. Transoras services will span the entire supply chain-from suppliers to manufactures to retailers-and provide procurement, vendor, and product catalogues, online order management, supply chain collaboration, and financial services. The companies have committed nearly us $ 250 million for funding Transora (CBI News Bulletin, July/august 2000) The buzz word viral marketing and coral advertising and virtual marketing refers to marketing techniques that use pre-existing social networks produce increase in brand awareness or to achieve other marketing objectives (such as product sales) through self replicating viral processes, analogues to the spread of pathological and computer viruses. It can be word of mouth delivered or enhanced by the network effects of the internet. Viral promotions may take the form of video clips, interactive flash games, Adver games, EBooks, brand able software, images, or even text messages. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high social networking potential and create viral messages that appeal to this segment of the population and have a high probability of being taken by another competitor. The term viral marketing or virtual marketing has been also used pejoratively to refer to stealth marketing campaigns- the unscrupulous use of astroturfing on line combined with under market advertising in shopping centers to create the impression of spontaneous word of mouth enthusiasm. Internet marketing Internet marketing also referred to as marketing, web marketing, online marketing or eMarketing is the marketing of products or services over the internet. The internet has brought media to a global audience. The interactive nature of internet marketing in terms of providing instant response and eliciting responses is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it only refers to the internet, email, and wireless media, but it includes management of digital customer data and electronic Customer Relationship Management (CRM) system. Internet marketing ties together creative and technical aspects of the internet, including design, development, advertising, and sales. Internet marketing also refers to the placement of media along with different stages of the Customer Engagement Cycle through search engine Marketing(SEM), Search Engine Optimization(SEO), banner ads on specific websites, email marketing, and web 2.0 strategies. In 2008 the New York Times, working with co score, published an initial estimate to quantify the user data collected by large internet based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found the potential for collecting data upward of 2500 times on average per user per month. eMarketing EMarketing is a subset of e business that utilize electronic medium to perform marketing activities and achieve desired marketing objectives for an organization. Internet marketing, interactive marketing, and mobile marketing for example, are all the form of e marketing. eBusiness EBusiness means utilizing electronic medium in everyday business activities. There are several levels of involvement in when it comes to EBusiness. For example where one organization relies completely on e business the second one way chooses a mixed presence and means of doing business. Difference Difference between eBusiness, eCommerce, and eMarketing †¢ eBusiness is a very broad entity dealing with the entire complex system that comprises a business that uses electronic medium to perform or assist its overall or specialized business activities. †¢ eCommerce is best described in a transactional context. So for example an electronic transition of funds, information, or entertainment falls under the category handled by principles of eCommerce. Technically e commerce is a part of e business †¢ eMarketing is also a part of e business that involves electronic medium to achieve marketing objectives. E marketing is set on a strategic level in addition to traditional marketing and business strategy. Difference between e marketing and interactive marketing eMarketing is a broader term that describes any marketing activity performed via electronic medium. Interactive marketing is generally a sub of eMarketing that involves a certain level of interaction. Difference between eMarkeitng and internet or web Marketing: There is no real difference between eMarketing and internet or web marketing. However, with the arrival of mobile technologies such as PDAs and 3G mobile phones, as well as interactive television, both terms would see eMarketing and internet or web marketing as subtly different, for example chaffy; Internet {or web} marketing is achieving marketing objectives through applying digital technologies. eMarketing is achieving marketing objectives through use of electronic communications technology. Whilst this distinction is wholly acceptable, it is difficult to see where the distinction lies between digital technologies and electronic communications technologies, especially with the convergence of technologies such as mobile devices. Advantages of eMarketing Following are some of the advantages of e marketing: à ¼ Reduction in costs through automation and use of electronic media. à ¼ Faster response to both marketers and the end user. à ¼ Increased ability to measure and collect data. à ¼ Opens the possibility to a market of one through personalization. à ¼ Increased interactivity. Disadvantages of eMarketing Following are some disadvantages of eMarketing: à ¼ lack of personal approach , à ¼ Defensibility on technology, à ¼ Security, privacy issues, à ¼ Maintenance costs due to a constantly evolving environment, à ¼ Higher transparency of pricing and increased price promotion, à ¼ Worldwide competition through globalization. eMarketing Plan eMarketing plan is a strategic document developed through analysis and research and is aimed at achieving marketing objectives via electronic media. eMarketing plan represents a sub set of organizations overall marketing plans supports the general business strategy. Every good eMarketing plan must be developed in line with the organizations overall marketing plan. In a broad sense e marketers generally start by analyzing the current micro- and macro economic situation of the organization. eMarketers must observe both internal and external factors when developing an e marketing plan as trends in both micro environment elements are: pricing, suppliers, customers. Examples or macro environment are: socio economic, political, demographics and legal factors. In order to reduce a viable e marketing solution, e marketers must first understand the current situation of the company and its environment, profile, segment the target market and then strategically position the products as to achieve optimal response with the target market. This is generally achieved through SWOT analysis. By assessing organizations strengths and weaknesses and looking at current opportunities and threats one can devise an e marketing strategy that can improve the organizations bottom line. eMarketing(in brief) eMarketing is essentially a part of marketing. But à ¼ What is the difference between eMarketing and internet or web marketing? à ¼ What are the eMarketing tools? And how do marketers plan for eMarketing? The American marketing association definition 2004 is as follows: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Therefore e marketing by its very nature is one aspect of an organizational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. As such an aspect, eMarketing has its own approaches and tools that contribute to the achievement of marketing goals and objectives. This also helps us to differentiate between eMarkeitng and eCommerce, since eCommerce is simply buying and selling online: What are the eMarketing tools? The internet has a number of tools to offer to the marketer. à ¼ A company can distribute via the internet e.g. amazon.com, à ¼ A company can use the internet as a way of building and maintaining a customer relationship e.g. Dell.com, à ¼ The money collection part of a transaction could be done online e.g. electricity and telephone bills, à ¼ Leads can be generated by attracting potential customers to sign up for short periods of time, before signing up for the long-term e.g. which.co.uk, à ¼ The internet could be used for advertising e.g. Google Adwords, Finally, the web can be used as a way of collecting direct responses e.g. as part of a voting system for a game show. How do marketers plan for eMarketing? There are two ways to looking it; à ¼ An existing organization may embark upon some eMarkeitng as part of their marketing plan. à ¼ An organization trades solely on the internet and so their marketing plan focuses purely on eMarketing. The marketing plan in either case is the next step, whether focused upon eMarketing or all, marketing. The next lessons focus upon a tailor-made eMarketing plan which conforms to the Acronym AOSTC {from our generic marketing planning session} Situation analysis for VIRTUAL marketing The situation analysis for eMarketing bridges the internal audit and competitor research. It answers the question where are we now in terms of our marketing (internal v/s external perspective)? The analysis literally considers your eMarkeitng situation by considering the fit between internal and external factors. There are similarities with traditional concepts and techniques, but you need to focus upon digital commerce. Here we consider the 5ss of internet marketing, the customer life cycle, and the application of SWOT analysis. The Customer Life Cycle (CLC) The customer life cycle is a tool that creation and delivery of lifetime value to customers i.e. CLC looks at products and services that customers need throughout their lives. It is market oriented rather than product oriented. Key stages of the customer relationship are considered. SWOT analysis-ranked and weighted SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. its flexibility. Since SWOT analysis can be used in a variety of scenarios, it has to be flexible. To overcome these issues, one should employ a power SWOT. SWOT analysis-Power SWOT SWOT analysis is a marketing audit that considers an organizations strengths, weaknesses opportunities and threats. Our introductory lesson gives you the basics of how to compete your SWOT as you begin to learn about marketing tools. As you learn more about SWOT analysis, you will become aware of a number of potential limitations with this popular tool. This lesson aims to help you overcome potential pitfalls. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. flexibility since SWOT analysis can be used in a variety of scenarios, it has to be flexible. However this can lead to a number of anomalies. Problems with basis SWOT analysis can be addressed using a more critical power SWOT. Power is an acronym for personal experience, order, weighting, emphasizing detail, and rank priorities. This is how it works. How do you the marketing manager fit in relation with the SWOT analysis? You bring your experiences, skills, knowledge, attitudes, and beliefs to the audit. Your perception or simple gut feeling will impact the SWOT. Often marketing managers will in adversely reverse opportunities and strengths, and threats and weaknesses. This is because the line between internal strengths and weaknesses, and external opportunities and threats is sometimes difficult to spot. For example, in relation to global warming and climate change, one could mistake environmentalism as a threat rather than a potential opportunity. Too often elements of a SWOT analysis are not weighted. Naturally some points will be more controversial than others, so weight the factors. One way would be to use percentages e.g. threat a=10%, threat b=70%, and threat =20 %{ they total 100%} Detail, reasoning, and justification are often omitted from the SWOT analysis. Where one tends to find is that the analysis contains lists of single words. For example, under opportunities one might find the term technology. This stage word does not tell a reader very much. What is really meant is: Technology enables marketers to communicate via mobile devices close to the point of purchase. This provides the opportunity of a distinct competitive advantage for our company. This will greatly assist you when deciding upon best to score and weight each element. Once detail has been added, and factors have been revived for weighting, you can then progress to give the SWOT analysis some strategic meaning i.e. you can begin to select those factors that will most greatly influence your marketing strategy albeit a mix of strengths, weaknesses, opportunities and threatens. Essentially you rank them highest to lowest, and then prioritize those with the highest rank e.g. where opportunity c= 60% opportunity a= 25% and opportunity b = 10% you marketing plan would address opportunity c first, and opportunity b last. It is important to address opportunities primarily since your business should be market oriented. Then match strengths to opportunities and look for a fit. Address any gaps between current strengths and future opportunities. Finally attempt to rephrase threats as opportunities (as with global warming and climate change above), and address weaknesses so that they become strengths, Gap analysis would be bridge the gap between them. Competitor research for Virtual marketing (External perspective) As you plan for eMarketing and during the plans implementation, one needs to play careful attention to the activities of competitors, so competitors research for eMarketing is essential when attempting to answer the question where are we now (external perspective). There are a number of approaches that can be employed, with the emphasis on each approach shifting depending upon the nature of our e business and market. Here are some key tools of competitor research for eMarketing. à ¼ Use search engines. Ø General topics such as Google, yahoo And msn Ø Type names of competitors Ø Type industry, product or term Ø Search ‘down in to a directory structure e.g. yahoo Ø Search a competitors web site Ø Product information , press released, job opportunities Ø Pricing information Ø Distribution information such as where to buy. à ¼ Hunt for trade associations Ø Search for personal pages or blogs Ø Different perspective e.g. fans, ex-employees. Ø e.g. v www. blogger. com , v www. myspace. com, v www. youtube. Com. à ¼ Ask your target market. Ø Send question to named personnel, newsgroups, personal pages, mailing lists. Ø Conduct a survey using. Ø Buy secondary reports e.g. data monitors, mintel. à ¼ Newsgroups and post queries, Ø newsgroups on bulletin boards or forums Ø Deja. com(Google) Ø Read online financial information Ø research public companies Ø iii.co.uk ample up Ø ft.com up à ¼ Read online competitive information. Ø e.g. hoovers.com paid for, inus à ¼ Study demographic reports Ø statistics.gov.uk/ census in up Ø census.gov inus à ¼ Original source material Ø Business source elite, newspapers, Kellys compass. à ¼ Monitor special interest material Ø Business source elite, newspaper, Kellys, compass. à ¼ Monitor special interest material. Ø E.g. marketing week (BSE), campaign (BSE), marketing (BSE). à ¼ Use a professional researcher EMarketing Mix The eMarketing mix is essentially the same as the marketing mix. it is simply the adaption of price, place product, and promotion to the eMarketing context. Of course one could also include physical evidence, people, and process when marketing planning for an online service. Below are a series of lessons that consider how markets can apply the eMarketing mix to their organizations own product, service, brand, or solution. E marketing price The eMarketing mix is simply an adaptation of the traditional marketing mix and ‘P for price. However, the internet has influenced how online businesses price in a number of ways. E Marketing Place {Place tactics as part of the eMarketing mix.) The e marketing space consists of new internet companies that have emerged as the internet has developed, as well as those pre-existing companies that new employ eMarketing approaches as part of their overall marketing plan. For some companies the internet is an additional channel that enhances or replaces their traditional channel of place. Pre Existing companies that have adopted eMarketing These are traditional companies that trade on the internet, Banking and financial services e.g. HSBC bank. Banks and financial services have benefited tremendously from the popularity of internet usage. There is a mixture of new online banks and traditional banks, both offering online banking services. Essentially banks no longer need to invest in high cost, high street selling unit i.e. old fashioned town-based banks. Labor costs have also been reduced since much of the traditional banking bureaucracy is done using it and the use of overseas call centers has meant that salaries are much lower. Software also means that customers can be retained by using Customer Relationship Management (CRM) eMarketing approaches. E marketing product Considered product as part of the marketing mix. Two previous tools for product decision-making have been introduced- Product Life Cycle (PLC) and the three levels of a product. Both of these tools and equally applicable to the context of e marketing and can be easily applied to include e marketing and product. For example a product marketed solely online will go through a life cycle in the same unpredictable way as a product marketed through any traditional channel (PLC). Products marketed online will have a core benefit tot eh customer, be an actual tangible product, with augmentation that ads value such as insurance, warranties and so on three levels of a product). Although tools actually specify the term ‘product, they can be easily adapted to include brands. Services or solutions. E marketing product/business matrix (depicted below should be used in conjunction with Product Life Cycle (PLC) and the three levels of a product. It represents additional tools for audit that bridges existing businesses and new online start-us, and existing products and new products. It allows marketers to categories those marketing on the internet as an online extender, an online alternative, an online innovator (existing business), and Oran online innovator (online start-up). Let us look at it in more detail; A- Online extender An on line extender is an existing business that has a strategy whereby it extends its marketing activities to the internet. It could be any traditional, terrestrial organization that has historically grown through using traditional channels of distribution to get existing products, brands, services, or solutions to market. B- Online alternatives The online alternative is a new start-up that uses the internet as an original channel of distribution to get products, brands, services or solutions, currently available elsewhere, to, arekt. Some segments may be better targeted with this online alternative for example remote or fragmented markets. C and d- Online innovators Online innovators come in two forms; C- Online innovators are existing businesses that see a benefit to launching new and innovative products, brands, services or solutions online by leveraging new technology. Existing businesses have a wealth of knowledges and learning that underpin their moves onto the web. Remember, the internet is not a business paradigm shift (at last not yet) and so current business approaches are often adapted for the internet. Existing businesses have experience. D- Online innovators are start-ups that seize the opportunities to launch new and innovative products, brands, services, or solutions online. Deposit not having as much knowledge and learning as some of their competitors, they are flexible and can move much more quickly. Start-ups often experience. We have already considered product as part of the marketing mix. Two previous tools for product decision- making have been introduced product life cycle and the three level of a product. E marketing promotion Ø It looks at ways of increasing the popularity of your website by looking at the internal optimization of the website itself. It considers many important ways of building your traffic, including Search Engine Optimization (SEO) approaches. Ø It looks at ways of increasing the popularity of your website by looking at external sources of internet advertising. Ø Lesson internet marketing and promotion: internet advertising. Ø This lesson looks at ways of increasing the popularity of your website by looking at external sources of internet advertising. Ø Pay per click advertising Ø Google ad words. Google ad words are a Cost per Click (CPC) online advertising program. Identically that means that you decide upon key word that relates closely to your product or service. Using Googles tools, you price how much it would cost your per click for your chosen keyword- this could be lucent, $1.50 or more, depending on the popularity of the keyword. So the keyword marketing would be more expensive than the keyword marketing cheese china because of its level of popularity. You then allocate a budget, and pay Google by credit card. You can control the length of your campaign, or end it as soon as the money in PPC management (Pay per Click Management) or recruit a verified Google awards professional. Adverts appear alongside Google search results- so go to Google and search for marketing. The ads appearing alongside the main search results are cps. Ads also appear on selected content websites-such as www.chichesteuk.com-look at the adverts along the top, and down the right hand column- this is where ads based upon the keyword chic ester would appear. You only pay for adverts that get clicked- not for page views- so you pay nothing if your advert is simply viewed. There is also an opportunity for ‘Smart pricing whereby you pay more for the advert if a sale is guaranteed e.g. you have a website based upon fishing- you write a review of a new type of fishing rod, the visitor then sees an ad for the same rod in an ad words text ad running on the same page then clicks on it and buys from the advertiser. Adwords is a very targeted and controllable way of online advertising hence the huge rises in income and profit for Google over recent times. EMarketing Price (Pricing tactics as part of the eMarketing mix.) The eMarketing mix is simply an adaption of the traditional marketing mix and ‘P for price. However the internet has influenced how online businesses price in a number of ways. International pricing and competition give consumers access to the lowest price for any generic good. For example, British consumers benefit when buying products from the United States since there is almost two dollar to the pound. Conversely this makes British goods more expensive to the American consumer. So it is cheap to buy spectacles from a us website and then to import them into the UK (even including transport costs and import taxes) Online auctions are a popular and innovative way of pricing, for example ebay. Here you register with the online auction company as a seller and/or a buyer. You can place an item into auction where buyers bid against each other. The highest bidder wins. The auction websites takes a commission. The commission is factored into the price you pay. Greater access to pricing information, more quickly and in a format that makes pricing comparable and transparent. There are a number of sites that will compare and contrast prices for the same or similar goods and services e.g. prices on car insurance. Pricing could also include the cost of an online advertising medium such as Google ad words. Here an online supplier would buy a keyword located in a text or image based advert onto Googles own search engine or onto a website belonging to a Google publisher. For example you search term hair straightness on Google and you are directed to a site about hair dressing. On this site is plenty of information about hair straightening, placed next to some contextual adverts. You click on the advert and you are taken to a site selling hair dressing supplies. You buy the hair straightness and your supplier pay a small ‘Pay-Per-Click fee which is split between Google and their publisher. This is factored into the price you pay. Traditional pricing tactics used in eMarketing Of course the internet marketers still has a whole selection of the more traditional pricing approaches to choose from that can be adapted to eMarketing scenarios: Premium pricing e.g. selling music via iTunes. à ¼ Penetration pricing e.g. giving away free subscription to land grab market share for new start ups such as youtube.com and myspace.com. à ¼ Economy pricing e.g. selling basic products and services online likes basic design or paperclips. à ¼ Price skimming e.g. new product launches online such as albums or games. à ¼ Psychological pricing e.g. products and services sold at 99p or $99.99 (price point perspective). à ¼ Product line pricing e.g. subscription 1 @ free, subscription 2 @ $10.00(with added value) and subscription 3 @ $49.99 for 10 year. à ¼ Pricing variations e.g. budget airlines selling tickets online where the first tickets bought are the cheapest, and the last ones bought tend to be more expensive. à ¼ Optional product pricing e.g. selling a holiday online with travel insurance. à ¼ Captive product pricing e.g. once you buy virus software from one brand, your updates must also come from them. à ¼ Product bundle pricing e.g. buying internet access which comes with free online phone calls. à ¼ Promotional pricing e.g. betting incentives, such as free dollars to gambles online for current customers that gamble on football games to tempt them to play online pocker, or vouchers with codes sent by email as rewards e.g. Amazon.com. à ¼ Geographical Pricing e.g. Microsoft pricing in different currencies in different international markets. Search marketing {Overture and yahoo} Overture is the yahoo equivalent of Googles ad words. Now known as yahoo Search marketing, overture has a series of sub-products that make up its internet marketing program. Here some examples: 1) Sponsored search: Displays your advert at the top of the search engine results. So your potential customers search for a ‘keyword and your advert appears at the top of the results page. Again, as this ad words, the advertisers bid against each other to obtain the position that will generate the most convertible traffic to their site. Popular keywords will cost more-obviously. 2) Local advertising: Gets your business listed in yahoos business directory. So if you wish to promote products in specific regions next to specific search keywords, this is a much targeted geographical services. Overture h

Intertwined Cultures in the Writings of Jhumpa Lahiri Essay -- Literar

Charlemagne was once quoted having said â€Å"To have a second language is to have a second soul† (Kushner 29). In achieving full comprehension of another language, one also gains insight into the culture of foreign individuals. It is common knowledge that in the modern world, English is the dominant tongue. Yet, bilingualism, even multilingualism, is a sure sign of possessing the scarce knowledge of cultural diversity. As American society becomes more accepting of various cultures in its politics and education, foreign voices also appear more in American literature. The diversity of origins of the latest young writers is vast: In The New Yorker’s 2010 â€Å"Top 20 Under 40† list of new American writers, over one-third were not born in this country. Their homes cross the globe, from Latvia to Peru (â€Å"Top 20 Under 40†). The rise in popularity of stories of these bicultural writers can be attributed to the changing of attitudes in America. Our history and present is laden with the accounts of immigrants. Their perspectives are fresh and bursting with talent. Jhumpa Lahiri, a female Bengali author, gained prominence after she was listed in the 1999 edition of the â€Å"Top 20 Under 40†. That same year, her collection of short stories â€Å"Interpreter of Maladies† was published, and went on to sell millions of copies worldwide. Lahiri in particular is well known for, in the words of Aviya Kushner, â€Å"translating the immigrant experience for us, often lyrically†¦as the English-born child of immigrants, she can move smoothly between both worlds, marveling and assuring us that, yes, it will be all right† (Kushner 27). In many of her short stories, Lahiri focuses on that transition from a foreign culture-in her case, Indian-to American culture. More than oft... ... May 2012. . Kakutani, Michiko. "BOOKS OF THE TIMES; A Broken Body in Shiny, New China." The New York Times. The New York Times, 04 July 2008. Web. 4 May 2012. . Kushner, Aviya. "McCulture." The Wilson Quartlerly 33.1 (2009): 22-29. JSTOR. Woodrow Wilson International Center for Scholars, Dec. 2009. Web. 2 May 2012. . Lahiri, Jhumpa. Interpreter of Maladies: Stories. Boston: Houghton Mifflin, 1999. Print. Ranjini, V., and N. Ramakrishna. "Immigrant Experience In Jhumpa Lahiri's Interpreter Of Maladies And The Namesake." Poetcrit 21.1 (2008): 64-74. Literary Reference Center Plus. Web. 5 May 2012 Tyrell, Michael. â€Å"Interpreter of Maladies: Review.† Harvard Review 17 (1999): 198-199. JSTOR. Web. 4 May 2012.

The Thin Gender Line in Macbeth Essay -- Macbeth essays

The Thin Gender Line in Macbeth      Ã‚   Some people would do anything to get what they want. The characters of Macbeth are no exception.   Shakespeare creates people who either strive for, or abuse authority.   The men and women in Macbeth have varying degrees of guilt, power, and integrity.  Ã‚  Ã‚  Ã‚        Ã‚  Ã‚   In order to compare the genders in Macbeth, one must understand how women were treated in Shakespeare's time.   The great Queen Elizabeth I died three years prior to the writing of Macbeth, and yet her reign made little difference on the matter of women's rights.   "At the time of Queen Elizabeth's death, almost everyone of both sexes agreed that the female intelligence was less than that of the male" (Fraser 4).   Women were considered to be the "weaker vessel" (Fraser 4).   A woman was forced to marry a man of her father's choosing and then was under the complete control of her husband (Fraser 5).   When Macbeth was written, women were supposed to be virtuous, submissive, maternal, and nonviolent.   However, men also saw women as temptresses and felt that they were more susceptible to the devil's influence (Fraser 5).   Most women of that time had little control over their own lives.      Ã‚  Ã‚  Ã‚   Lady Macbeth is the antithesis of what a woman was supposed to be.   She is ruthless, bloodthirsty, and non-maternal.   She would have "dashed the brains out" of her own child to suit her ambitions (1.7.64).   Lady Macbeth is not content with a bit part in the drama; she wants center stage.   She seems almost ashamed of her frail sex.   "Come, you spirits, that tend on mortal thoughts, unsex me here, and fill me from the crown to the toe, top-full of direst cruelty!" (1.5.44-47).   Lady Macbeth has much in common with the weird sisters. Th... ... their gender and those who are the total opposite.   He proves that both sexes can be ruthless, and do anything to achieve their objective.  Ã‚   The line between genders is thin, and is crossed in Macbeth quite often.    Works Cited Fraser, Antonia.   The Weaker Vessel.   New York: Alfred A. Knopf, Inc. 1984. Mahood, M.M. "Shakespeare's Wordplay". Shakespeare: Macbeth. Ed. John Wain.  Ã‚     Ã‚  Ã‚  Ã‚   Nashville: Aurora Publishers Inc. 1970. Shakespeare, William. Macbeth. Folger Library General Reader's Shakespeare. New  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚   York: Washington Sq. Press. 1959. Waith, Eugene.   "Manhood and Valor in Macbeth". Twentieth Century Interpretations of  Ã‚     Ã‚  Ã‚  Ã‚   Macbeth. Ed. Terence Hawkes. Englewood Cliffs, NJ: Prentice-Hall Inc. 1977. Wills, Garry. Witches and Jesuits: Shakespeare's Macbeth. New York: Oxford University  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚   Press, 1995.

American US Alignment

This research essay looks at the Latin American alignment with United States in the post cold-war era. Latin America has been associated with Soviet Union from the 1960s until the 1980s. Thus we will take a look on patterns in which US alignment has taken, taking in consideration political economic military and cultural connections.The essay illustrates factors reinforcing and causing tension for US-Latin America connection. Further will take look at the nature and extent of Latin America shift to leftward in the past decade as well as discuss the emerging alliances. From the findings it can be noted that United States hegemonic and coercive control transited to partnership and cooperation as a result of changes in the international system and limited resources of the United States.The factors contributing to this alignment include natural and human resources of Latin America; geophysical proximity and scarcity of resources in the world. It is concluded that this alignment have both beneficial and side effects to both involved. PATTERNS OF LATIN AMERICAN-US ALIGNMENT IN THE POST COLD-WAR ERA, CONSIDERING POLITICAL, ECONOMIC, MILITARY AND CULTURAL CONNECTIONSAccording to Klaveren (1992) Latin America has been viewed as a marginalized and abandoned continent. It has had little or distant influence on global politics due its geo-physical isolation. The region has been relatively been calm except during the Central American crisis of the 1980s. Klaveren (1992) elaborates that although Latin America has been peaceful externally it has had a history of internal conflicts in which foreign countries have not been involved except the United States.Due to interdependence and emergence of new rules in the global arena, there has been a change in redefinition of security concept. The United States redefines it in terms of drug trafficking, environmental protection and migration flow (Klaveren, 1992, p.29). Klaveren (1992) notes that geographical, cultural and political pro ximity of Latin America to US makes it player in supply of specialized and non-specialized labor to the aging population of United States. As a result they alleviate labor shortage to the later and aggravate brain drain in the former (Klaveren, 1992, p.30).Latin America has had good political ties and values with United States for a long time since World War 2. However there has been shortcoming in relation to human rights violation and democracy (Klaveren, 1992, 30). Economically Latin America trades with United States on several commodities, whereby the U.S. is a major market for Latin America motor vehicle parts, capital commodities and agricultural products (Klaveren, 1992, 27).There have been cultural ties between the U.S. and Latin America. Currently there is an influx of migrants from Latin America. They are progressively becoming large population in the U.S., which definitely has effect on U.S. life (Klaveren, 1992, 30).FACTORS THAT REINFORCE AND CAUSE TENSIONS IN THE LATIN AMERICAN CONNECTIONS WITH THE USLatin America possesses vast natural resources, for instance, Brazil is ranked among 10 top most powerful economies of the world while Mexico is in the second lot (Klaveren, 1992, 26). Latin America is endowed with mineral resources such as oil that is critical to world economy. Since Latin America has relatively developed industrial sector it is able to exports products to U.S. with the likes of Brazil and Mexico. More so, because of geo-physical proximity to U.S. they are able to supply specialized and non-specialized work force to them (Klaveren, 1992, 26).On the other hand a couple of factors cause tension with the U.S. one being the diversification of Latin American economies with inclusion of Japan and other developing countries. The lack of effective security measures in Latin America brings into fore the security concerns of U.S. with the increase of drug trafficking and proliferation of small arm (Klaveren, 1992, 26).THE NATURE AND EXTENT OF LATIN AMERICA’S SHIFT LEFTWARD OVER THE PAST DECADE.Latin America was formerly under American system from early 1960s but due to changes in the global economy it has moved from â€Å"natural segmentation to institutional integration based on geographic specialization† and has created their own niche so as to offer specialized services to the receiving end of the technological flow (Klaveren, 1992, 22, 27).Since the end of cold war, the influence of Soviet Union to Latin America  Ã‚   has declined. This resulted to difference in structural institutions of Latin America. For instance Brazil and Columbia had different positions on the liberalization of services in Uruguay Round (Klaveren, 1992, 39).Also, Klaveren (1992) notes that Brazil and Chile developed different alternatives to solve debt crisis after the 1980s Central American crisis. This gives us the complexity nature of Latin America in the post cold war era. The internal issues are as different as is the exter nal. Therefore, only a collective action based on concrete and common interest (Klaveren, 1992, 39).Latin America internal issue could only be dealt on specific case by case and by sector to sector.This is observed when looking at how in the UN General Assembly, Latin America votes with other developing countries or in the third world. However, there is differentiation within the Third World countries that could make variation in the pattern of how Latin America will play in global power (Klaveren, 1992, 39).A number of challenges are yet to be tackled by Latin America such as â€Å"pleas for solidarity and just international order† which will seem to be unnoticed and changes in the international system will have a direct and long term effect on Latin America (Klaveren, 1992, 41). Thus the influence of the region to international system will depend on specific strategies, internal, economic and political environment in which the strategies will be based upon (Klaveren, 1992, 41).Each country will have to mobilize economic, political and strategic resources so as to impact the global system otherwise they will be isolated (Klaveren, 1992, 41). The individual country foreign policy must adapt to changing international system and that scarcity of resources demands careful and selective decisions on approaches and choices to make (Klaveren, 1992, 41). It is worth noting that although sound external strategies are good; they must be backed with domestic conditions for them to flourish (Klaveren, 1992, 41).THE EMERGING REALIGNMENT BETWEEN THE US AND LATIN AMERICA AND WITHIN THE LATIN AMERICAN COUNTRIESThe new emergence in realignment comes in the wake of global changes and the different administration of the US over time. Varas (1992) explain that the gradual integration of Canada, Mexico and some Caribbean economies in the North American geo-economics space led to erosion of single Latin American region.The post Latin American will be characterized with sub region system with different economic, political and strategic weight. There foreign policy, he adds, that was once useful for hegemonic alliance is now obsolete and new paradigm is necessary to address regional and international changes (Varas, 1992, p.48). Within the Latin American countries should use broad based approach, which takes account of political, economic and cultural orientations.   The United States have now transited from a hegemonic and coercive control to partnership and cooperation control. In this regard, according to Varas (1992) the U.S. was no longer  Ã‚   dominant in the international system as well as had limited resources to control and support the hemispheric countries.Thus policies of free trade and decision-making were determined bilaterally in this new system. While the Latin America was agitating for liberalized world trade the U.S., advocated for open trade and cooperative approaches to international problems such as weapon proliferation, terroris m, international violence and environmental degradation (Varas, 1992, 51). The U.S. cooperation with Latin America is on security matters where it seeks to establish credible defense systems, which are effective in peaceful conflict resolution (Varas, 1992, 56). The U.S. is also helping to strengthen democratic institutions and human rights although democracy is still elusive (Varas, 1992, 67). More so U.S. is strengthening its ties with Latin America on socioeconomic issues, especially when considering immigrants to US.CONCLUSIONThe long-term effect of these developments will not lack the merits and limitation for either side. To the U.S. they will be consolidating their presence in Latin America and use low cost measures in ensuring security to its nationals especially when dealing with drug trafficking, greenhouse effect, terrorism and global violence. However, this is threatened by the increasing immigrants from Latin America to U.S. The U.S. will have to depend on immigrants fo r labor because of its low fertility rate and aging population. The Latin America will suffer brain drain although such scenario would provide employment opportunities for its emigrants. The Latin American countries will definitely have economy growth due to direct foreign investment, just international trade and transfer of technology. The emergence of new developed economies like Japan, China Korea and Taiwan add to long-term effects to Latin America. REFERENCEKlaveren, A. (1992). L. America & international system. In   J.Hartlyn, L. Schoultz, & A. Varas. (Eds.). The US & Latin America in the 1990s and beyond (pp. 22-41). Latin America. UNC PressVaras, A. (1992). From coercion to partnership: a new paradigm for security cooperation in theNorthern Hemisphere. In J. Hartlyn, L. Schoultz, & A. Varas. (Eds.).   United States and L.   America. (pp. 48-67). Latin America. UNC Press.

Position paper: Should internationalism be embraced? Essay

The source presented talks about the Canadian government’s upcoming actions as it deals with the country’s economic affairs. It can be inferred that the author feels that economic prosperity is the most important sign of progress and a good quality of life for Canadians, as jobs and economic growth can lead to â€Å"long-term prosperity† that will benefit every citizen of the country. An example of this envisioned economic prosperity is the Harper government’s economic action plan, which seeks to supply more jobs in order to prolong and strengthen Canada’s performance economically. By saying that costs must be reduced or eliminated in international affairs, it can be assumed that the author favours nationalism over internationalism. The speaker’s stance can then be assumed that he or she would most prefer to have their country reap the most benefits through the improvement of economic budgeting, over being a world citizen who cares more for the welfare of the world as a whole, and can be inferred that their position supports unilateralism, wherein a country’s decisions are made by themselves, without international influence. An example of favouring nationalism over internationalism is the recent backing out of Canada from its military participation in Afghanistan, due to its expensive costs. This example shows the challenge between balancing both nationalism and internationalism, as Canada’s purpose of providing military aid to Afghanistan shows that the country seeks to be of help during international crises, but then its withdrawal shows that as much as Canada seeks to aid Afghanistan, it has to prioritize its own welfare first in order to keep giving help. The speaker’s sentiment in the last sentence shows exactly that the programs and benefits must be beneficial to Canadians, not in international affairs where they feel that giving our resources only hinders Canada’s path to economic prosperity. Some would agree with the source, as Canada’s welfare must always be prioritized over that of international issues, because they feel that providing aid and resources to other countries would only hinder our progress for prosperity. Others, however, feel that while Canada’s well-being as a country is essential, it is also important to take part in international affairs as a means of economic  progress, humanitarian aid, and having an influence over the decisions that are being made in international affairs. With these in mind, it is best to agree with the perspective that Canada should also take part in international affairs, as it benefits other countries as well as our own, taking into account that our internati onalistic participation can have an influence in preventing conflict around the world, and that economic progress can be achieved through internationalistic participation. Canada’s reputation as a supporter of humanitarian actions has been established through its constant participation of giving aid and resources for those in need. This reputation is evident during the country’s active involvement in providing help during major natural disasters, such as the earthquake in Japan on 2010, and the Typhoon Hayan that occurred in the Philippines. Due to these humanitarian actions, Canada has donated millions in order to aid countries as they reestablish themselves after these calamities. It can be assumed that these actions would not be supported by the speaker of the source, as it does not â€Å"directly affect Canadians† in an economically positive manner. However, one has to take in mind that these countries that have been hit by unfortunate calamities may have caused major economic losses, the destruction of their environment, and the loss of millions of lives. What if Canada were to experience such a calamity? One may argue that these countries are economically lower than Canada, allowing us to be able to support and rebuild ourselves. However, one has to take in mind that if we ever experience the destructive losses that these countries have suffered, help would most likely be given by the countries that we have aided during their adversities, as a sign of gratitude for what we have done for people â€Å"thousands of kilometers away†. Another known reputation of Canada is its active participation in peacekeeping operations that ensure to resolve a conflict between two parties. This was clearly evident when Canada seeked to impose the involvement of military troops during peacekeeping operations, which was implemented through the United Nations. This change in the ways that peacekeeping operations were done greatly improved the UN’s strength in ensuring a successful reconciliation between parties, a critical factor that  was skimped on during the establishment of the League of Nations. This was put into action during the suez crisis, as both parties were reconciliated successfully. Canada’s involvement in military operations and international organizations not only provides military help, but also shapes critical decisions that may affect the rest of the world, such as Canada and other nations such as the United States putting pressure on Russia’s Vladimir Putin for their disagreement with Pu tin sending military troops to Crimea. Despite the failure of Canada to drastically affect Putin and Russia’s decisions, the international pressure that was applied may have been critical in preventing further conflicts from happening. These acts of peacekeeping argue against the source’s perspective, Finally, Canada’s participation in International Organizations benefit the country in more ways than one, particularly that of economic progress. The country’s participation in the North American Free Trade Agreement (NAFTA) seeks to eliminate trade barriers and tariffs, proving that this international participation benefits Canada economically. Adding on to Canada’s benefits of participating in international organizations is our participation in the United Nations and humanitarian involvements, that fosters Canadian pride. Some would agree with the source, as Canada’s welfare must always be prioritized over that of international issues, because they feel that providing aid and resources to other countries would only hinder our progress for prosperity. Others, however, feel that while Canada’s well-being as a country is essential, it is also important to take part in international affairs as a means of economic progress, humanitarian aid, and having an influence over the decisions that are being made in international affairs. With these in mind, it is best to agree with the perspective that Canada should also take part in international affairs, as it benefits other countries as well as our own, taking into account that our internationalistic participation can have an influence in preventing conflict around the world, and that economic progress can be achieved through internationalistic participation.