- 07/04/2013
- Posted by: essay
- Category: Free essays
Chapter 1. Introduction
1. Background of the study
Vodafone is one of the leaders of the telecommunication industry that holds a strong position in the highly competitive market. However, today, the company has to introduce new technologies and develop new marketing and advertising strategies to reach positive outcomes in its performance. In this regard, the development of effective advertising strategies is the key to the promotion of the company, its services and to the creation of a positive public image of the company’s brand. Vodafone was traditionally oriented on the implementation of new technologies. Therefore, today, in the time of the rapid progress of information technologies and emergence of new telecommunication systems, Vodafone focuses on the wide use of internet and online advertising to promote its products and services along with the promotion of its brand to gain the public recognition.
Today, online advertising becomes particularly popular due to the fast development of internet and telecommunication systems. In such a situation, Vodafone has to develop its online advertising program to keep pace with its rivals and modern technologies. On the other hand, the study of the effectiveness of online advertising is extremely important because Vodafone should assess accurately the extent, to which online advertising is effective because it is the popularity of the company’s brand, products and services that are at stake (Bonewitz, 2007). If the company invests abundantly in online advertising, Vodafone either can benefit consistently, if online advertising is highly effective, or lose substantial funds, if online proves to be ineffective.
2. Research background
In such a context, the research should focus on the effectiveness of online advertising and its impact on the organizational performance. To put it more precisely, the current study should focus on the analysis of online advertising, its effectiveness, and impact of online advertising on the consumer behaviour.
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In fact, Vodafone has to understand whether online advertising can change the consumer behaviour in the desirable way and whether online advertising is worth investing or not. At the same time, the case of Vodafone may be helpful for understanding of current trends in the development of contemporary advertising (Ayub, et al., 2009). To put it more precisely, if the experience of Vodafone of online advertising proves to be successful and has a considerable positive impact on the consumer behaviour, then other companies operating in the telecommunication industry as well as other industries may follow the lead of Vodafone and use online advertising as a part of their promotional strategy. On the other hand, the current study cannot provide universal recommendations for all companies because Vodafone operates in the telecommunication industry and online advertising may be effective for the company, whereas companies operating in other industries may fail to reach positive outcomes, while applying online advertising strategy.
3. Organization background (Vodafone)
Vodafone is the company operating in the telecommunication industry. In actuality, the company has reached a tremendous success in its business development to the extent that, today, the company holds one of the leading positions in the industry in global terms (Campbell, 2010). The position of the company is particularly strong in European market, which is the traditional target market of Vodafone, but the company focuses on the international business expansion and global, aggressive marketing policies. In such a way, Vodafone attempts to expand its markets and its market share substantially to enhance its position as the world leader in the telecommunication industry.
Even though the company is headquartered in London, the UK, Vodafone still attempts to expand its presence in the global market and operate worldwide. Obviously, such aggressive marketing strategy of Vodafone implies the development of effective promotional program (Campbell & Wright, 2008). In this regard, online advertising seems to be particularly prospective, taking into consideration the lack of physical boundaries for internet users. In fact, internet users can access and share information regardless their physical location as long as they have internet connection. Therefore, Vodafone can promote its products and services along with its brands worldwide using internet and online advertising. At first glance, online advertising opens a qualitatively new level in the development of the promotional strategy of the company because online advertising seems to be able to reach the target customer group in global terms that obviously facilitates the aggressive market expansion of Vodafone. However, this is exactly where the problem arise because it is still unclear the extent to which online advertising is effective and the impact of online advertising on consumer behaviour is still unclear that means that the company cannot be certain that its online advertising will change the consumer behaviour for better (McStay, 2010). At any rate, the impact of online advertising on the consumer behaviour has to be studied to understand whether online advertising is worth implementing or it is just waste of money or ineffective using of the company’s funds.
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