Republic of the Philippines

Department of Education
Region V
Bullen National High School
Bulan, Sorsogon

Benefits and Risks of Web Marketing

A Research in Marketing

Submitted by:
Trisha Kimberly G. De Vera
Submitted to:
Mr. Michael Arevalo
 INTRODUCTION

Nowadays, to effectively market your products you need to be creative

enough to make your potential buyers like what you sell. Doing things such
as online advertisements, customer referrals will probably sell a lot of good
and services. In this new generation, people are relying in technology and
convenient ways to shop for their needs, so that’s why web marketing is a
trend to all companies because it can increase their sales rating by using
technology or mainly social media to promote their business, it can also help
them grow a successful relationship with their investors and consumers.

The internet or social media has changed various kind of aspects in our
daily lives. From communicating with our loved ones that are far away from
us, browsing things that entertain us and also from business such as online
marketing, SEO etc. Today online advertising activity is referred to as web
marketing. In theses days, social media is used for the majority of marketing
efforts due to its reduced cost. In this generation, web marketing is the
efficient way to get to your target consumers. Big companies like Nike,
Apple and much more are now investing into online advertising as this help
modify customer sales experience and also can reach more people
internationally unlike traditional methods.

Web marketing may define is the type of marketing strategy that

mainly uses the internet or social media. Although web marketing is
beneficial to all companies we can’t also hide that there are some risks go
around that might affect the course of one’s business. But the primary goals
of using web marketing is to increase the sales rate of the business and
potentially boost the consumers trust and loyalty. But then again risks of
using web marketing is there are too many competitions and staying ahead of
the industry.

In the Philippines, almost all of them are heavily engaged into social
media and technology to the extent of having apps that do your groceries or
errands for you in just a click, this is not only in the Philippines, this is going
all around the world and it’s just amazing to think how a simple technology
can efficiently make your life easier.
 REVIEW OF RELATED LITERATURE

Local Literature

To keep your business for expanding, you must think of a way to

expand the capacity of your company by attracting potential clients or
consumers as possible. Especially in this generation, where alternative
approach to advertising are constantly changing, though other business still
uses the traditional way of advertising, many companies now are investing
into online advertising to further enhance their sales bracket.

Web marketing’s main advantage is that they can reached their target
audience in a most effective and less expensive way in the comfort of their
potential consumers home. Another advantage of it is that companies can
track how effective the campaigns have been. The majority of Filipinos uses
social media, this offers Philippine business the chance to expand their
customer base and boost sales in online market.

According to APEX global, Philippines is now one of the countries

who mainly uses social media. Businesses and startups who want to test their
lucks have more leverage now than before because of the massive pool of
audience they can reach while still probably targeting specific demographics.
Online shopping has also seen growth in the Philippines. The e-commerce
industry in the country is expected to grow at a Compound Annual Growth
Rate (CAGR) of 17% between 2021 and 2025 (Global data, 2021).

But as companies and consumers all love the idea of web marketing in
today’s generation; there’s also some challenges that may cause a huge
impact in one’s business if it is not taken care seriously.

One of them is having your product copied by some scammers to lure

your customers into buying fake products. Online shopping scams involve
scammers pretending to be legitimate sellers, either with fake website or a
fake ad on a genuine retailer site. According to the Philippine National
Police, scammers use the latest technology to set up fake retailer websites
that look genuine online retail stores. They may use sophisticated designs and
layouts, possibly stolen logos, and even domain name.

Numerous of these websites provide luxury goods, including well-

known clothes, jewelry, and technology brands, at incredibly low prices. You
might get the stuff you paid for sometimes, but it might be a fake, or you
might get nothing at all. The payment mechanism is the largest red flag that a
retail website is fraudulent. Money order, pre-loaded cards, and wire transfers
are common payment methods requested by con artists, but it is doubtful that
you will receive your order or see your money again if you send it this way.

This study aims to explore the factors influencing the Filipino

consumer in adopting electronic payment systems. Spearman’s correlation
analysis was used to analyze the data collected from 83 employees of the
marketing department of the company using online shopping the results
showed that the significance of the constructs, namely perceived risk, trust,
security, use of web-assurance seals, perceived use, and perceived advantage
were not sufficient to determine their relationship with intention to adopt
electronic payment systems. Therefore, the factor used in this research is not
the only driving factor that will affect the customer’s decision (Raon, De
Leon et. al 2021)

The overall purpose of this study is to develop an understanding of the

issues that influence initial trust on behavioral intention to use internet baking
in developing countries like Philippines. The country has experienced
sophisticated cyberattacks, slowest download internet speed and average
internet costs per Mbps that are far above the global average standards. The
study proposes an empirically tests if these issues influence initial trust
formation with a sample of 454 local bank’s customers who are non-users of
internet banking services in the Philippines. Perceived costs, quality of
infrastructure, privacy, security and disposition to trust were barriers to non-
user intentions to engage in any online financial transaction (Maji, Gopal,
Hazarika, 2016)

Social media is a virtual community that links people around the globe
through many websites such as Friendster, Myspace, YouTube, Facebook
and Twitter. In 2010, Instagram was introduced as a new addition to this
social media as a friendlier channel and easier to monitor compared to
Facebook and Blogs. Many buyers would also prefer to purchase from
Instagram as well dues to less cluttered page, straightforward interface and
easier to read feedbacks from other buyers. Feedbacks or also known as User-
Generated Content (UGC) happens when previous buyers share their
experience online which allows other including the potential buyers to read.
(Bahtar, Zanariah, Muda, 2016)

Foreign Literature

According to eMarketer, in 2020, digital advertising sending in the

world will increase by 2.4% compared to 2019, reaching an amount of 332.84
billion dollars, representing 36.11 billion dollars less spending than pre-
pandemic forecast. (eMarketer, 2020). However, it represents around half of
global advertising spending, and in some countries including the United
Kingdom
(UK), China, Norway, Canada, The United States of America (USA) and the
Netherlands, digital has already become the main advertising medium. On the
other hand, in countries such as Latin America and Southeast Asia,
investments continue to delay and hence traditional methods are prevalent
(eMarketer, 2019).

Other brands like Apple promotes their products by using various

social media platform like Twitter. They use Twitter to advertise their launch
events and keynote each fall. People want updates directly from Apple so
they’re going to retweet and give Apple more exposure on Twitter and that
will benefit both parties (Hessler, 2018). Nike’s promotion strategy is
focused on creating strong connections with their customers through
advertising, sponsorships and events. They use variety of marketing channels,
such as social media and influencer marketing, to reach their target audience
and build brand awareness (Two Teachers, 2023).

Firms interested in servicing foreign markets face a difficult decision

with regards to the choice of an entry mode. The options available to a firm
include exporting, licensing, joint venture and sole venture. Several factors
that determine the choice of a specific foreign market entry mode have been
identified in previous literature. These factors can be classified into three
categories: ownership advantages of a firm, location advantages of a market,
and internalization advantages of integrating transactions. This study
examines the independent and joint influences of these factors on the choice
of an entry mode. Multinomial logistic regression model is employed to test
the hypothesized effects. (Agarwal, Sanjeev and Ramaswami, 1992).

Innovation and creativity are required if a company’s product or service

wants to compete in this digital era, especially in selecting marketing
strategies. Selecting a marketing strategy is the most important thing
determining the success or failure of a company that carries out e-commerce
activities. Cashback and split payments are one of the marketing strategies
chosen by the company to entice buyers to transact with its merchant
members. However, often cashback and split payment schemes, including
payment schemes for transactions with merchants through marketplaces, do
not meet the ethical values of Islamic business in which transactions must
supposedly earn the blessings of Allah SWT. This study discusses cashback
and split payment schemes, namely their concept, theory, and
implementation, the distribution scheme’s types, and whether they can fulfill
the values of Islamic business ethics. The research method chosen by the
author is a qualitative descriptive study, namely a study of literature using
journals, e-books, the web, and other reading materials which serve as
references herein. The results of the study show that there are cashback and
split payment schemes that are prohibited and do not meet the values of
Islamic business ethics. However, most consumers are less thorough and
aware of the cashback and split payment schemes. Interest in discounted
prices and ease of transactions attract consumers to the advantages and
benefits of these transactions and schemes. Consumers must be more careful,
so they are not trapped in transactions that violate Islamic law’s principles.
Scholars are required to update information related to business concepts and
strategies implemented by e-commerce business actors to understand better
the wider community about whether marketing strategies involving
transaction or payment schemes are permissible (Susilawati, Prima,
Hartawan, 2023).

The paper presents the results of the study conducted with the
participation of representatives of small firms operating in the Southern
Federal District of the Russian Federation. The research problem includes the
identification of opportunities and limitations of the use of digital marketing
tools in Russian small firms. The study made it possible to define the key
barriers and difficulties related to the marketing activity of small firms on the
web, as well as to find out the benefits and prospects for digital marketing use
in the Russian small business sector. The data on the digital marketing tools
and online marketing research tools used in the companies’ understudy are
provided and analyzed in the article. The assessment of the frequency of
using specific digital marketing tools in the companies under study was also
conducted. The conclusions determine the positive and negative trends
regarding digital marketing activities of Russian small business and can be
used to conduct further research in the area. (Lisitsin, Denisenko, 2013)

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