It means that measurement is a necessary part of the management, ND companies would through the measurement processes and systems to monitor organization’s performance and then improve it. Many organizations now have an established online marketing, but there are many uncertain questions about the process by which the marketing performance of this presence is evaluated and how it is modified with a view to improving its performance.
Therefore, in order to establish a successful structure measurement programmer, there are three stages: the stage 1 is creating a performance management system, the stage 2 is defining a metrics framework and the stage 3 is selecting of tools for data collection, reporting ND analysis (Coffey. Et al. 2009). This essay would analysis the problem 8. 5 and through these three stages to answer the 3 questions. Stage 1: Creating a performance management system According to Newly et al. 1995), performance measurement is a process which via some actions such as collection data, analysis them and interpretation and so on to measure whether an organization performance is efficient or not. Therefore, performance management is a complex process. At first, information’s effectiveness and efficiency is important in the measurement. In order to have an effectiveness ND efficiency performance measurement, the precondition is that a structured performance management process need clear. So the companies’ performance management processes should avoid the barriers.
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In a weak designed marketing measurement Coffey et al. (2009) are grouped three groups of symptoms. The first group is senior management myopia. It means that when deliver the information, it would was happened as did not understood or unclear targets or had wrong target. For example, in the case if companies send the wrong stuff, or deliver when no one is around to accept the consignment, they are all targets mistakes, but if companies tit the snazziest-looking websites and easiest one-click ordering systems, it not only save time but also reduce the mistakes during delivery.
The second group is resounding issues such as lack of time, the necessary technology and integrated systems. The third group is data problems which mean data does not collect or data has low quality, limited data to analyze. At later, the barriers are reinforced by the survey by Cutler and Sterne (2000) which describes the main obstacles to metrics development as lack of qualified personnel (31%), data overload (19%) and lack of technical resources (software) (19%). In order to avoid those problems, it is necessary to have a structured measurement process. Kettle (1997) identified the process for four stages.
Stage 1 is a goal-setting process in order to control the whole process. The aim of this stage is to evaluate whether the goal is achieved and revise the marketing actions in order to reduce the gap between the goal and actual achievement. Stage 2 is performance measurement, including collect data in order to confirm the different index data. Stage 3 is performance diagnosis which analyzed the data and find out the reason why lead to this gap, and then reduce it. The last one is stage 4 is corrective action which is update the online marketing. Bourne. Et al. 2000) claimed that review the objectives is a necessary process in the stage 4, because it can modify the goal and revise the index data. Stage 2: Defining a performance metrics framework A high efficiency measures program means that it has lower costs, but higher returns, such as high repeat business in online marketing. There is a bottom-up framework which is present by Coffey. Et al. (2009). Let included five key metrics: channel promotion, channel buyer behavior, channel satisfaction, channel outcomes ND channel profitability. In this essay, it will mainly focus on the shortcomings of channel promotion and channel outcomes.
Channel promotion is the measure that evaluate why visitors visit this website, because the advertisements they have seen, or site they have been referred from. Those measures consider that the website visitors’ origin-??online or offline, and which site or offline media is promoted them. So channel promotion has some advantages, such as save time because you can do the promotion 24 hours and no geographic restrictions because everyone in everywhere can through the Internet visit the website. Channel promotion may be related with referrers, acquisition and cost. Therefore, it also would be has some issues in channel promotion.
The first problem is the search engines. According to Waiters and Amount (2003), there are 44 % users feeling that search engines sometime are frustrated and cost considerable time to find out useful information as some information are useless or inaccessible links or out of date. And what’s more, search engines would do not expand their coverage range when it has enough lists of the popular keywords. Furthermore, although search engines are powerful tools, only in the top 20 or 30 results would increase their website visit, the results below sometime is not efficient.
For example, Lawrence and Giles (1999) researched that search engines prefer to provide the USA index sites, comparing with the non USA index sites, and prefer to offer commercial sites, comparing with educational sites. These would be reducing the volume of the website. The second issues is that when have the E-mail promotion must be to ensure the target receivers would not abandon it because some time there are too much or too frequently E-mails, and it would lead to the opposite result – negative promotion. The third issue is that the relevant links.
As known that is an important aspect of internet promotion because it involves many different types of activities. However, it still has the problem which is when people click the link, and then finds the information of the website is not people want, it increases the volume of the website, but low quality of the visitors. The forth issue which is similar with third one. When visitors visit the website, it is not caused by the visitors like the website, may be caused by their friends recommendations. The last one is that the rate of the benefits and the costs.
John Wanderer’s said “l know 50% of my advertising is wasted, but I don’t know where it spends on” (Hoyt. 2013). Costs and benefits would be often forgot when the promotion started. Channel outcomes are record of customer actions like leads, sales or conversion rate taken as a consequence of a visit to a site. In particular, conversion rate is a widely used method to evaluate channel outcomes. Conversion rate means that the proportion of site visitors who perform a particular action such as making a purchase. For example, if the visitor to purchase is 2%, it means that 10,000 visitors, it as 200 visitors make purchase.
However, there is a problem that if one buyer brought two products, the website might be record that there are two buyers and each one buy the one products. It would be have a mistake of record the conversion rate. As the case said Dell computer not only recorded on-site sales but also orders generated as a result of site visits. Dell could use the unique phone number to calculate the accurate conversion rate. Another issue is that the sales of products and the leas may be instability. Because some customers have low loyalty, it might be caused by they buy the products by chance.
Stage 3: Tools and techniques for collecting metrics and summarizing results Organizations need to select the most appropriate tools for collecting and reporting metrics which meet requirements such as reporting of marketing performance, accuracy, analysis and visualization tools. Those techniques involve log files, online questionnaires and focus groups. In this part, it will mainly discuss the advantages and disadvantages of two techniques-??log file and online questionnaires. The first is online questionnaires. Malory (1999) suggested that Internet surveys using questionnaires will increase in popularity.
The first advantage of online questionnaire is that it is easy to link with some difficult to contact groups and individuals or some special organizations or groups. Therefore, it expands the research range. The second advantage is that it could save time because Just use a few seconds the questionnaires would send out or complete. What’s more, online questionnaire could help researcher achieve thousands of people in a short time and the samples would all accord with the requirements, even there would be has a geographic distances (Taylor. 000). Thirdly, online questionnaire researcher can also eve money and resources, because it from a papery questionnaire sometime also has a sample range and number limitation. For example, the Epsom I-J site shows how they could use online questionnaires to collect information from whole stages in purchasing. The Epsom through tools which could help users select a professional printer, or solve customer problems and then has a feedback. Epsom is focus on meet customers’ needs.
Company uses online questionnaire, the companies could record t:zero-. Customers’ satisfaction and profiles. In addition, questionnaires ca visitor in anonymously, and it can protect customers’ privacy. How he big problem. On the one side, if customers are random, so the be considered, may be the respondents complete the questionnaire and it is difficulty of recruiting respondents who complete accurate side, if samples are not random, the samples may be having bias, researcher tend to research advocates or disgruntled customers.
The next is log file, and it aims to research the website visitors’ cacti server-based log file is recorded each time a visitor download any used hit which recorded of every image or text file requested from hit is less of accuracy, page impression or page views and unique measurements to record visitors’ activities. Using log file analysis c customer purchase behavior directly on website and record where referred from. It would help company compares, studies and anal purchase behavior. Mammal. Nicholas. And Huntington. 2005).
As 10 detailed information about different aspects of information that u example, how long they stay in this website and what type of mate Moreover, log analysis has no time limitation, and it can keep whew Simultaneously, log analysis does not need any sampling (Nicholas Furthermore, log data analysis is an effective method to research t users’ do and say when they use website, if company combines WI interview research (Covey. 002). However, when use website anal company should pay attention on its weakness, such as accuracy Possibly, undercoating and overexciting would result inaccuracy 2009).
The undercoating problem is included caching in user’s w firewall and so on. For example, when a user visits a website which previously, the website would be downloaded from the user’s ca computer. The problem of overexciting is included frames, spied executable files. For example, it would be recorded as three pages system when a user browses a framed page with three frames. If of knowledge of why the user did what they did Mammal. Nicholas. 2005). Log analysis Just records the information, but does not has user. So log data could not support company with anything of the of their searches.
At the same time, log file could not reflect users’ because it Just record data, not like the online questionnaire (Kurt more, as log file record each item of users’ search information such files, it has too much data, and summaries may be over 50 page. I be has misleading, unless interpreted carefully. For example, hits the website, but it is not a very relevant measurement of website there is a page consists of 10 pictures, and plus text, it would record unless there is a explanation. Conclusion Using these 3 stages, the companies would establish an effective marketing.
At first follow the structured measurement process and avoid the barriers. Secondly, using channel promotion, channel buyer behavior, channel satisfaction, channel outcomes and channel profitability to measure the effectiveness. At last, select the correct technique tools like log file or online questionnaires. According to those 3 stages, it could help companies minimize cost and maximize their profit form an effectiveness performance measurement.