By SANTHOSH KUMAR.R 2nd YEAR,MBA,DMS INTERNET MARKETING
INTRODUCTION: The future of marketing lot depends upon the internet, the digital marketing media. The advantage of this technology is it allows much greater customization of product, services, and promotional messages than the older marketing tools. With the raise of social networking sites like facebook , twitter etc internet marketing can play a vital role on reaching the customer’s directly and precisely
Changes due to digital technology into business environment: Consumers have more power than ever before. Consumers have access to more information than ever before. Marketers can and must offer more services and products than ever before. The exchange between marketers and customers is increasingly interactive and instantaneous. Marketers can gather more information about consumers more quickly and easily. Impact reaches beyond the PC- based connection to the web.
The importance of the web Online is no longer a niche channel worthy of investment for the future. It is a significant channel now and should be actively managed. Worldwide online travel sales is valued at $147 billion in 2007 This means that almost 80% of travel sales will either be made online, or strongly influenced by online
Where are the opportunities? There are three main opportunities that online sales present: Incremental revenues Reduced cost of sale Enhanced brand loyalty and client relationships
The marketing opportunities Before looking at the opportunities, one should consider the four stages of customer interaction: Conversion Acquisition Retention Analysis Focussing in each of these areaswill create a solid action plan
The marketing opportunities Equal focus and specific activities should be deployed to address each of these key areas: Convert Acquire Retain Analyse Web design SEO CRM Web analysis Booking engine PPC Web design Content Linking Customer service
Site conversion is key to success Before investing in marketing efforts, a web site should be “fit for purpose” to convert at the highest rate Increasing the conversion ratio of visitors to bookers is the single best investment Once the site is optimised, then marketing activity to deliver incremental consumers should start
Mass Customization – How It Evolved Middle Ages – Craft Production Master Craftsmen and Apprentices One off products, high labour content, expensive 18th Century – Industrial Revolution Movement of people off land to towns and cities Sub-division of work loss of traditional skills
United States – Industrial Development started later, from mid-19th Century Industrial workers had greater skills More use of these skills in U.S. factories Greater innovation – Colt weapons company developed standardised parts to assist battlefield repairs Development of mass production in early 20th Century U.S. becomes global power
Types of Mass Customization The Four Faces of Mass Customization – Joseph Pine and James Gilmore - Jan.-Feb. 1997 Harvard Business Review 1. Collaborative Customization: Consumer and producer engage in a dialogue to determine customer requirements Computers, clothing and footwear, furniture, some services 2. Adaptive Customization: Product is designed so that users can alter it themselves to fit unique requirements on different occasions High-end office chairs, R7 golf club, certain electronic devices
3. Cosmetic Customization: Product is unique in appearance only Customer’s chosen text or image on T-shirts, mouse mats, baseball caps, mugs etc. Also called ‘Personalization’ 4. Transparent Customization: Producer provides customized product without consumer being necessarily being aware that it has been customized Can be used when consumer’s needs are predictable or can be easily deduced, and when customers do not want their requirements repeated. Example- repeat orders for customized clothing, chemicals
CONCLUSION: Today up to 80% of all bookings are influenced by the web A strategic, planned, approach to online marketing will produce far better returns than tactical activity Companies are promoting brands through social networks but it’s early days yet. In the case of Vodafone zoozoo, they have been on face book for over a year now and already have 7.4 lakh fans, their fan base is actually bigger than the biggest bollywood stars, The zoozooyoutube channel boast more than 70 lakh video views. Most companies and experts concur that in today’s agile marketing environment, as marketers look for interesting ways to get consumer attention, online marketing is bound to grow.
References / Sources of Information DonalReddington, Editor, MadeForOne.com Business today magazine TravelCLICK.com Consumer behaviour book by Leon G. Schiffman Leslie Lazar Kanuk