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Introduction to Internet Marketing
Internet marketing, also referred to as i-marketing, web-marketing, online-marketing, or e-Marketing, is the marketing of products or services over the Internet.
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What is Internet marketing ?
The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant response and eliciting responses, is a unique quality of the medium.
Internet marketing ties together creative and technical aspects of the Internet, including: design, development, advertising, and sales.
Internet marketing is sometimes considered to have a broader scope because it not only refers to the Internet, e-mail, and wireless media, but it includes management of digital customer data and electronic customer relationship management systems.
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Why Internet marketing ?
Internet marketing is relatively inexpensive when compared to the ratio of cost against 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 purchase products and services at their own convenience.
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.
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Process Internet marketing ?
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Profit through Internet Marketing
Visual representation of what organizations do to create value. Margin is the difference between Customer Perceived Value (CPV) and cost. The primary and second activities attribute to cost.
Primary Activities
Supp
ort A
ctivi
ties
Margin
MarginInbound Logistics Operations Outbound
Logistics
Marketing&
SalesService
Procurement
Technology Development
Human Resources
Firm Infrastructure
Cost Profit = $ Price(Customer Perceived Value)
+
Source: Porter’s value chain
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Progress chart of internet Marketing
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Advantages Internet marketing ?
Democratization of advertisingReach: Collapsing barriers of time & spaceLower risk of product / services innovationLower cost / higher ROI
Digitization of all informationVirtual supply chainsVirtual marketsVirtual real-time interaction with customers & suppliers
ScalabilityAbility to coalesce and reach increasingly fragmented marketStreamline business process
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