INTERNET MARKETING 16
Table of Contents
List of Illustrations 2
Executive Summary 2
1. Introduction 3
2. The Types of 4
I. E-mail Marketing 4
II. Social Marketing 5
II. Blogging and Business Promotion 6
III.Mobile marketing 6
IV. The Contributions of Search Engine Marketing and Optimization 7
Figure 1 showing of internet marketing investment areas 8
3. Advantages of 8
I. Increase Value to Retailers and Customers 8
II. Cost Effectiveness of 8
Figure 2 Showing Cash flow in (Source: Gangeshwer, 2013) 9
III. Enhance Accountability 9
IV. Enhancement of Economic Globalization 10
V. Increase Managers’ Business Understanding 10
VI. Integrating with Traditional Advertising Approaches 10
4. Shortcomings of Approaches 11
I. Online Marketing Create Competitive disadvantage 11
II. Limited Access Due to Lack of Internet by Many Potential Clients 11
Figure 3 showing Internet User Word Distribution by Region in 2012 11
III. Promote Illegal/Unethical Practices 12
IV. The lack of transparency 12
5. Conclusion 13
6. Recommendation 13
Figure1 Showing internet marketing investment areas
Figure2 Reflecting cash flow in internet marketing
Figure3 Showing internet user world distribution by region in 2012
Marketpromotion in the current generation focuses on customers rather thanthe clients, therefore, a platform that can reach the diversifiedconsumer is necessary. Internet marketing is, thus the best approachfor advertisement because it breaks geographical barriers ofbusiness. The key online marketing strategies include usage ofmobile, social media, e-mail and blogging. Notably, some companiespractice e-mail marketing using old lists or the database of currentcustomers to uphold relationship with their previous and currentconsumers. Moreover, smartphones are essential in offering advancedfunctional systems and can positively link with laptop and computers. Internet marketing also has various advantages, for example, it iscost-effective, adds value to customers, and enhances accountability.On the other hand, it portrays some shortcomings such as lack oftransparency, exposure to harassment and bullying as well as limitspotential clients in remote places. It is, therefore, necessary forcompanies to advocate for extensive internet coverage and properadherence to laws regulating online marketing.
Internetmarketing is a process of engaging in a promotion of services andbrands through the web, and the broad scope encompasses e-mailmarketing and electronic customer relations. Besides, internetmarketing entails technical and creative elements such as anadvertisement, design, and development. Furthermore, it deals withcreating and placing ads in a firm engage customers in differentstages of promotion (Tiago &Veríssimo, 2014).
Inregards to history, online marketing began in 1983 as a channel ofdisplay information of a service or brand. It started withCompuserve, which launched the first product on commercial internetemail. After one decade, Tim Berners-Lee made the browser as a freedownload, and it was fundamental for supercomputing applications. In1995, Jeff Bezos launched Amazon.com as an e-commerce platform wherepeople can use their credit cards to buy items. Moreover, Googlepenetrated the market in 2003 as a search engine and an avenue forcommunication between advertiser and customers. It, therefore, becamea highly valued platform for exchanging goods and services on theinternet, and many people embraced it because it offered real-timedesires and intent (Gangeshwer, 2013).
However,in 2007 mobile content became the primary driving force in theinternet market. That is the time that Apple launched iPhone toprovide a variety of contents in regards to the choice of consumers.Ström, R., Vendel and Bredican (2014) showed that an estimate of 185million apps was downloaded by 2014 and that demonstrated the way thepresent generation embrace smartphones for internet marketing.Besides, Ström et.al (2014) approximated that there will be morethan 268 billion downloads in 2017 thus depicting the direction ofmobile marketing. Likewise, online marketing through smartphones isevolving to other sectors such as education, healthcare, tourism, andentertainment. The research paper, therefore, focuses on types ofinternet marketing as well as advantages and disadvantages of suchonline platform. Precisely, it will discuss email marketing, socialmarketing, mobile marketing and the contribution of both searchengine marketing and optimization.
2.The Types of I.E-mail Marketing
Itis a process of directing commercial information to a group ofindividuals through electronic mail. However, that does not mean thatevery email sent to a potential customer makes it an e-mailmarketing. The aspect majorly includes the utilization of e-mail tosend ads, build loyalty, trust, and create awareness on a brand.Furthermore, it encompasses soliciting of sales, donations andrequesting business tenders. Most companies undertake e-mailmarketing using previous lists or the database of existing clients tosustain a relationship with their previous and current customers.Moreover, some local business firms use e-mail marketing to get newcustomers and convince other stakeholders to purchase a new item.According to a survey conducted in 2011, the United States spentapproximately 1.51 billion U.S dollars in e-mail marketing. Theresearch projected that it could escalate to 2.468 billion U.Sdollars by 2016 (Nosrati, Karimi, Mohammadi &Malekian, 2013).
Likewise,the marketing strategy is fundamental because it gives a company anopportunity to trace investment. It is also useful in reachingsubstantial mail subscribers who desire to get email communication inregards to specified subjects of interest. However, customers shouldnot violate the spam law as they market their brand and servicesthrough e-mail. Gangeshwer (2013) revealed that approximately 76% ofsubscribers in different U.S advertising companies had purchaseditems because of the advertisements they received through the mail.Moreover, such aspect led to sale increase in both online and offlineplatforms depicting that the strategy of marketing has a potential ofinfluencing the behavior of customers.
Itis the process of ensuring that a service or brand gain traffic andattention in sites that are socially viewed on the internet. Besides, social marketing aims at groups of people that are online,but it can entail radically several actions. For example, use ofTwitter for marketing purposes encompass designing short messages topeople in regards to a particular product or new updates. In adifferent perspective, World Wide Web presented marketing messagesusing page views, and that helped in reaching a large number ofpeople within a short time. Social marketing, therefore, acts as atool of advertisement that shapes the behavior of surfers rather thanfacilitating buyer and seller interaction. The impact of socialmarketing to different populations is that it has enabled onlinecommunication in which customers can provide a response to firms.
However,firms have been under pressure to adopt digital platforms within anorganization due to increasing completion in marketing. That led tothe introduction of Web 2.0 technology, which represent socialevolution that enables participatory communication through theinternet. Notably, social marketing has shaped different customersand local businesses in many nations, especially Portugal. In 2012,use of mobile for social advertisement rose to a record of 156.3%demonstrating that an average Portuguese owns a minimum of twosmartphones (Tiag &Veríssimo, 2014). Besides, the studyindicated that 82% of manager in local business build their brandsusing social media. Precisely, 78% utilize the platform to improveknowledge while 70% help in heightening communication flow to reachthe potential of customers (Tiag &Veríssimo, 2014).
II.Blogging and Business Promotion
Ablog is an informational website and it stimulates discussion on aWorld Wide Web while encompassing discrete, and text entries that arein dairy styles. Hsu, Chuan, and Chiang (2013) argued that blogginginfluences the decision of customers as they endeavor to makejudgment in online shopping. The scholars also investigated the wayblogs shapes the perceptions and attitudes of the reader in regardsto purchasing items. They analyzed 327 blog readers to examine howblogs influence their attitudes and behaviors concerning onlineshopping. The finding revealed that there are multiple determinantsin a blog that shapes the behavior of customers, and the major onesinclude information and trust (Hsu et.al., 2013). For that reason,business people have adopted blogger’s electronic word of mouth asa promising approach for promoting sales. Some companies offer freetrial products and services to highly esteemed bloggers as valueopinion leader. Organizations believe that high reputation bloggershave the capacity to prompt their colleagues to undertake onlineshopping because they are highly trusted.
Mobilemarketing is the use of hand gadgets such as smartphones to promote aproduct, brand or service to the customer. Besides, it includes theutilization of a mobile phone to create or place ads that enhanceelectronic customer relationship management. Notably, customers havehighly embraced mobile marketing across the world, and the keymotivators are perceived value, customer goals and the outcomes ofretailers. According to Gangeshwer (2013), the average rate ofconversation for an e-commerce site in is approximately 1.25%. Thestudy also noted that mobile phones offer interactive advertisementplatforms, thus exposing consumers to different products andperceived values of the brand. Moreover, smartphones are essential inproviding advanced functional systems and can positively link withlaptop computers. They also have vital functions such as a mediaplayer, digital camera, near field communication, steering units andglobal positioning systems (GPS) that are fundament in marketingstrategies. For example, Apple provides more than 750,000 apps toconsumers therefore, it offers a broad platform where businesspeople and clients can enhance their relationship (Persaud &Azhar, 2012).
IV.The Contributions of SEM and SEO
SearchEngine Marketing (SEM) refers to a web-advertising platform thatcompanies utilize to help in the promotion of products and servicesin the results pages of the search engine (SERPS). Furthermore, SEMaims at efficient use of search engine advertisements that areevident on the SERP. Also, SEM gives firms an avenue to targetconsumers through the placement of ads on search engines as efficientacquisition strategies for an audience. On the other hand, SearchEngine Optimization (SEO) is a process of manipulating thereflectiveness of a web page. SEO can target various types of search,for example, image, local, video and academic searches. Gangeshwer,D. K. (2013) revealed that e-commerce revenue would heighten by morethan five times by 2016, due to the use of search engineadvertisements and optimization. Precisely, it will jump from the US$ 1.6 billion indicated in 2012 to the US $ 8.8 billion by 2016.
Figure1 showing of internet marketing investment areas
Source:Tiago &Veríssimo, 2014.
3. Advantages of I. Increase Value to Retailers and Customers
Onlinemarketing such as use of mobile phones is advantageous because itoffers accurate location information to clients and retailers. Alocal business can use the online marketing strategy to provide anaddress, maps, photos of storefront, and driving directions of thecompany. Besides, online marking such as the use of mobile phonesfor advertisement and dissemination of information is an essentialand fastest way of providing value to customers. For example, aretailer can use mobile alerts to inform consumers of price changes,availability of new brands or items in the stock (Persaud &Azhar, 2012).
II.The Cost Effectiveness of
Companiesthat have personal websites have a significant advantage of using theinternet to cut the cost of an advertisement. Besides, onlinemarketing is cost effective because the brand of a product can spreadto a large group of people through minimal management. Furthermore,internet marketing offers managers an opportunity to target specificcustomers that have the potential to buy a product, thus making itcost effective (Gangeshwer, 2013).
Figure2 Showing Cash flow in
III. Enhances Accountability
Onlinemarketing can measure performance and outcome of the business, thusenhancing accountability. For example, it can indicate the number ofindividuals that attended a webinar against the expected target andthe number of opportunities that the company converted to sales.Moreover, online marketing provides precise data for auditing,identification alignment and gaps within an organization.Furthermore, local businesses can use performance measurements andstrategies of management to align internet marketing with outcomes ofbusiness (Persaud & Azhar, 2012).
IV.Enhancement of Economic Globalization
Theoretically,globalization enables countries to focus on economic activities thatoffer them an opportunity to enjoy comparative advantages as well asparticipating in a healthy and disciplined foreign competition.Notably, internet marketing, which depends on telecommunication,satellites, fiber-optic, and computers have halved the price ofprocessing, storing and transmitting market-related information.Besides, the internet market of the global village is in the shape ofthe web where customers get products and information at a reducedperiod and low cost (Gangeshwer, 2013).
V. Increase Managers’ Business Understanding
Managerscan use online marketing to understand different elements in thefirm, for example, the brand relationship, association, customerattitudes, loyalties and purchase intentions of different consumers.Furthermore, mobile marketing can enhance the way a managerunderstands a business by increasing service interactions, efficiencyand effectiveness. Moreover, it helps in increasing work capacity,service quality as well as ensuring that the needs of customers matchthe information services in regards to product use.
VI.Integrating with Traditional AdvertisingApproaches
First,the integrated strategy is useful in identifying market tactics thatwide ranges of people prefer. It is worth noting that some customerslove digital marketing, but that does not make a company to ignoretraditional opportunities such as the use of billboards and printing. Furthermore, online marketing using commercial brands target adults,while billboards with cartoon target children aged 5-10 years.Therefore, integrated digital and traditional marketing techniquesare vital in targeting a broad range of customers in regards to agebrackets (Persaud & Azhar, 2012).
4. Shortcomings of ApproachesI. Online Marketing Create Competitive disadvantage
Notably,a slow internet connection may lead to reduced competitive advantageof a company that is interested in online marketing. Besides,organizations with complex websites may not effectively compete withother counterparts because products will be too long for potentialcustomers to download. Complex sites also create boredom among theclients making them ignore online marketing strategies (Persaud&Azhar, 2012).
II.Limited Access Due to Lack of an Internet by Many Potential Clients
Itis notable that reliability of the use internet market in rural areasis different from that of urban centers. The reason is that potentialcustomers in remote regions lack the internet to reach diverse marketbase. Therefore, online marketing is restricted to specified peopleand that locks out individuals in remote areas, thus lowering thebusiness outcome (Gangeshwer, 2013).
Figure3 showing Internet User Word Distribution by Region in 2012(source:
III.Promotes Illegal/Unethical Practices
Internetmarketing is prone to identity theft in that an employee can accessfiles of human resource representatives as well as social securitynumbers to embezzle funds from banks. Besides, internet marketing isprone to sexual harassment and bullying, especially when potentialcustomer uses comments that intimidate workers or making unnecessarysexual advancements. Furthermore, online marketing encourages timemisuse when the staff uses an internet to perform personal activitiesrather than requirements of a company (Nosrati et.al., 2013).
IV.The lack of transparency
Internetmarket may lack a transparent destination of funds thus leading leadcases of fraud. Likewise, online marketing gives organizations anopportunity to run businesses without displaying their past data andreferences to potential clients. Similarly, companies may refrainfrom presenting their secrets of business operation and achievementin the online marketing sector, and that portray dishonesty (Nosratiet al., 2013).
Itis notable that technology advancement is vital in enhancing internetmarketing to different regions of the world. For example, socialmedia such as Facebook and WhatsApp have encouraged the advertisementof various brands and products from numerous companies. Besides,e-mail marketing is essential in reaching specific customers,increasing the value of goods as well as reducing the cost ofpromotion. Therefore, it is necessary for internet marketing toembrace transparency and ethical behaviors to outcompete othertraditional methods, for example, billboards, and print outs.
Mostremote areas in Africa and Asia have no access to internet coverage,yet they are potential customers to products sold through an onlineplatform. Moreover, some companies have multiple websites that keyclients cannot operate efficiently. Therefore, businesses andindustries should advocate for increased internet coverage to enhancethe global market potential. Furthermore, companies should develop asimple web platform that customers can easily use to access productsand services.
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