Internet Marketing Session: 17 Prof: Yasmin. Definition Internet Marketing is the process of building and maintaining customer relationships through online.

Internet Marketing

Session: 17

Prof: Yasmin

Definition

• Internet Marketing is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products and services that satisfy the goals of both the parties

• Internet marketing, also known as digital marketing, web marketing, online marketing, or e-marketing, is the marketing of products or services over the Internet.

• Internet marketing is considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media.

• Digital customer data and electronic customer relationship management (ECRM) systems are also often grouped together under internet marketing.

• Internet marketing is a fastest growing form of direct marketing.

• Recent technological advances have created a digital age.

• Widespread use of the Internet & other powerful new technologies are having a dramatic impact on both buyers & marketers who serve them.

• Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising, and sales.

Marketing & Internet• Much of the world’s business today is carried

out over digital network that connect people & companies. The Internet , a vast public web of computers networks , connects users of all types all around the world to each other & to an amazingly large information repository Internet connections has shown steady growth in past years.

• The Internet has given marketers a whole new way to create value for customers & build customer relationships.

Marketing & Internet

• The Web has fundamentally changed customers ‘notions of convenience, speed, price, product information & service.

• This amazing success of early click only companies –the so called dot-com such as Amazon .com, eBay& hundreds others –caused existing manufacturers, retailers to reexamine how they served their markets.

Significance of Internet Marketing

• Online is no longer a niche channel worthy of investment for the future.

• It is a significant channel now and should be actively managed.

Types of Internet Marketing

• Search engine optimization

• Search engine marketing

• Digital asset optimization

• Viral marketing

• Email marketing

• Affiliate marketing

• Blog marketing

Search Engine Optimization

• Search engine optimization is the process that enables your site to appear higher in a list of search engine results and generate targeted traffic

Search Engine Marketing

• Search engine marketing is a form of internet marketing. It is paid advertising within search engine results through Google, MSN, Yahoo, and other search engines

Digital Asset Optimization

• Digital asset optimization is the new trend in search engine optimization. Promoting your digital assets like videos, images, documents presentations through media channels

Viral Marketing

• Viral marketing & viral advertising is a marketing technique which induces websites or users to pass on a marketing message to other sites or users and create a word of mouth

Email Marketing

• Email marketing is a process of promoting a product or service or an idea by sending direct emails to the target customers

Affiliate Marketing

• Affiliate marketing is the marketing of products through an affiliate system. Technique that uses affiliate system to generate leads

Blog Marketing

• Blog marketing is a process of promoting a business via blogs

• Wordpress, blogger, typepad etc.

Advantages and Limitations of Internet marketing

Advantages• Internet marketing is inexpensive when examining

the ratio of cost to the reach of the target audience..

• Companies can reach a wide audience for a small fraction of traditional advertising budgets.

• The nature of the medium allows consumers to research and to purchase products and services conveniently.

• Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly..

• The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.

• Internet marketers also have the advantage of measuring statistics easily and inexpensively; almost all aspects of an Internet marketing campaign can be traced, measured, and tested .

• The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience.

• The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, to visit a website, and to perform a targeted action

Advantages

Limitations

• However, from the buyer's perspective, the inability of shoppers to touch, to smell, to taste, and "to try on" tangible goods before making an online purchase can be limiting.

• However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services.

Importance Internet Marketing

• Drive high quality of traffic to the website

• Increase sales needs from customers

• Build brand visibility online

• Increase profile against their competitors

• Target a global audience

Benefits to business

There are three main opportunities that online sales present:

1. Incremental revenues

2. Reduced cost of sale

3. Enhanced brand loyalty and client relationships

Incremental revenues

• The internet is a level playing field in terms of sales and marketing

• Everyone can attract new clients through very targeted and measurable marketing

• Global distribution reach is available to all, not just the major brands that have global networks

TYPES OF ONLINE MARKETRS

• Click Only V/S Click –And – Mortar Marketers,

• Click –Only Companies,

• Click –And- Mortar Companies,

SELLER BRICK & MORTER \STORE CHANNELS CONSUMER

SELLER ONLINE MARKETING CHANNELS

CONSUMER

BRICK -&-MORTER (BRICK ONLY) MARKETERS

CLICK- ONLY MARKETERS

Click Only V/S Click –And – Mortar Marketers

• The Internet gave birth to a new species of marketers – the click only dot coms – which operate only online without any brick –and –mortar market presence.

• In addition, most traditional brick –and – mortar companies have now added online marketing operations, transforming themselves in to click –and-mortar competitions.

Click –Only Companies

• These companies come in many size & shapes. They include e-retailers, dotcoms that sell products & services directly to final buyers via the Internet.

• Example – Amazon.com The click only group also includes search engines & portal such as Yahoo, Google, and MSN, which began as a search engine & later added services such as news, weather, stock reports, etc, hoping to become the first port of entry to the Internet.

• Internet service providers (ISP) are click only companies that provides Internet & e-mail connections for a free.

• Transaction sites such as eBay, take commission for transactions conducted on their sites.

• Various content sites like, ESPN.com, Britannica Online provide news, research, & other information.

Assignment

• If you were to start a business and promote it online identify and enumerate the marketing mix.