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1、Balamurugan, Sathish, Jublee and Sathyanarayanan Online Marketing by SMEs - Coimbatore TMC Academic Journal, 2014, 8(2): 1-15 1 A Market Study on Perception of Online Marketing Adoption by Small and Medium Enterprises

2、 (SMEs) in Coimbatore City Rengasamy Natarajan Balamurugan PSG Institute of Management, PSG College of Technology Coimbatore, India Mahendran Sathish PSG Institute of Management, PSG College of Technology Coimbatore

3、, India Dhanraj Jublee Sardar Vallabhbhai Patel International School of Textiles & Management Coimbatore, India Royalu Sivasubramanian Sathyanarayanan PSG Institute of Management, PSG College of Technology Coim

4、batore, India Abstract Online marketing has become a popular marketing tool in the modern world. A number of organizations from small to large size firms have implemented or are about to implement online marketing to a

5、ttract and retain their customers in the competitive business environment. The purpose of the study is to explore the perception of online marketing adoption by Small and Medium Enterprises (SMEs) in Coimbatore and al

6、so to identify benefits, barriers, importance and effectiveness of online marketing among SMEs. Data for the study were collected through survey method from 80 SMEs using structured questionnaires to examine their perc

7、eption of online marketing adoption. The study was limited to a small sample with fixed geographic location, which is within Coimbatore. The study reveals that most SMEs have not implemented online marketing due to s

8、everal factors such as lack of technology awareness, qualified staff, limited support online activities, limited financial resources, and low computer literacy. Those SMEs who have adopted online marketing experienced

9、benefits in terms of reduced cost, increased customer awareness, increased sales, global reach and so on. Furthermore, the study also suggested that SMEs can adopt online marketing by creating their own website, listi

10、ng themselves in online directory and online trade portals with reduced cost and also government support initiatives to SMEs by creating awareness campaign. It also encourages entrepreneurs to conduct training for SME

11、s. Keywords: Online Marketing, Small and Medium Enterprises, Awareness and Adoption of Online Marketing Balamurugan, Sathish, Jublee and Sathyanarayanan Online Marketing by SMEs - Coimbatore TMC Academic Journal, 201

12、4, 8(2): 1-15 3 Small and Medium Enterprises (SMEs) According to Storey (1994), there are no universally accepted definitions for small and medium enterprises (SMEs). Firms are classified as SMEs based on capital invest

13、ment, sales and employment. Still others are based on the number of employees, amount of companies’ turn-over and profit margin. Different nations use different parameters like turnover ratio, nature of business, numb

14、er of employers and capital investment. But in India, SME’s defined based on plant & machinery investment. According to EISBC (European Indian Small Business Council), the definitions of SMEs are: ? Small enterp

15、rises where investment in plant and machinery above Rs. 25 Lakhs up to Rs. 5 Crores. ? Medium enterprises where investment in plant and machinery is above Rs. 5 Crores and up to Rs. 10 Crores SMEs i

16、n Coimbatore Coimbatore which is known as “Textile City” consists of more than 60,000 SMEs form the industrial tributaries to the vast river of industrial production in Coimbatore. Although the city has diverse industr

17、ies, a large number of smaller companies remain unaccounted, as they are not registered with any of the government or commercial bodies. “SMEs employ some 8 million people and have an aggregate monthly turnover of abo

18、ut Rs.2,000 Crores, amounting to Rs.24,000 Crores annually,“ according to Coimbatore District Small Industries Association (CODISSIA). The city has a legacy of rich industrial contribution. The main industry sector in

19、Coimbatore is textile, pump apart from manufacturing, chemical, automotive sectors as well. OBJECTIVES OF THE STUDY ? To compare and identify the types of advertising methods used and the effectiveness of online marke

20、ting over traditional marketing. ? To identify the benefits of online marketing. ? To understand the importance and reasons for adopting Internet marketing. ? To identify the barriers in adopting online marketing.

21、 LITERATURE REVIEW Gilmore et al. (2007) analyzed the usage of internet and electronic marketing in the year 2000 and 2004 among SMEs. The main objective of the study was to understand the changes during the four-year

22、period and measure the usage level of electronic marketing activities. It brought a negative opinion of using the internet in terms of the design and implementation as the SMEs employees have restricted knowledge. Cha

23、ggey et al. (2009) suggested that when building websites, firms must have proper software protection from viruses and hackers. Gilmore et al. (2007) suggested that electronic marketing gives advantages to companies

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