Opportunities offered to businesses by Internet Marketing The Internet presents businesses with great opportunities to improve their marketing effort and perhaps gain competitive advantage
The extent to which a business takes up these opportunities depends on some important considerations <ul><li>Does the firm deal in appropriate products for online sales? </li></ul><ul><li>Does the firm have the internal IT resources and skills to monitor and maintain a transactional website? </li></ul><ul><li>Does the business leadership have a strategic plan for e-commerce? </li></ul><ul><li>Are there competitive forces within the industry that are driving firms to e-commerce? </li></ul><ul><li>What are the financial and technological capabilities of the business? </li></ul>
Assuming a business has considered these things and has a clear strategy for its online channel, then the marketing benefits available from the Internet can be built into practice. <ul><li>Internet marketing can benefit a business in three main areas: </li></ul><ul><li>Communications </li></ul><ul><li>Product development </li></ul><ul><li>Business efficiency </li></ul>
Opportunities for communications <ul><li>Trading online gives business in both business to customer and business to business markets the chance to develop new communication practices. Web technology allows a business to present products and services in detail, together with substantial supporting information. </li></ul>
Communicating for promotion <ul><li>A website is itself a promotional tool. Online businesses seek to create a look and feel that appeals to the self-image of their target market. Often, this is a hidden message to do with lifestyle. </li></ul><ul><li>New product launches are available online. Software downloads can be available on a trial basis. Detailed information can attract interest in a new product. </li></ul>
In b2b markets firms need to use effective communications to build relationships <ul><li>B2b exchanges are vital to the prosperity of the firm: </li></ul><ul><li>Suppliers are crucial </li></ul><ul><li>A printing business needs ink, paper, machine components </li></ul><ul><li>A fish & chip shop needs fish and potatoes </li></ul><ul><li>Communication between business partners must be good </li></ul>
B2b relationships improve by establishing good online relationships. <ul><li>Businesses can co-operate better over a long-term </li></ul><ul><li>Transactions can be quicker </li></ul><ul><li>Records of them can be more reliable and accurate </li></ul><ul><li>Dealing with customers can be handled online via Customer Relationship Management (CRM) software </li></ul><ul><li>This can automate sales responses, respond to customer queries, record visits, manage e-mails, direct mails and campaigns </li></ul>
Podcasts <ul><li>A Podcast is a small multimedia file that can be downloaded using the Internet. Podcasts are most commonly used by newspapers such as the Daily Telegraph or by broadcasters like the BBC who can make podcasts of news summaries. Theoretically, any business can make use of podcasting do deliver market information. </li></ul>
Market Development <ul><li>The Internet gives online businesses the chance to expand into new markets without the huge expense of mass advertising using traditional media. A website creates instant reach into wide geographic areas and is capable of generating new export sales. </li></ul>
Virtual Services <ul><li>Digital media are able to break down the barriers that naturally occur in the physical world. This is why it is common to speak of a ‘virtual’ world and a physical world. </li></ul><ul><li>In the physical world we are bound by physical realities such as distance. </li></ul><ul><li>In the virtual world digital media can create a realistic impression of these physical realities enabling the user to experience them without moving from their seat. </li></ul>
24-hour service online <ul><li>Digital media breaks down physical constraints, and also eliminates time constraints. A website is available 24 hours a day, 7 days a week. </li></ul><ul><li>For businesses this offers advantages, as clients with Internet can access the services at anytime from anywhere. </li></ul><ul><li>Online services where this applies includes: </li></ul><ul><li>Banking </li></ul><ul><li>Insurance </li></ul><ul><li>Education </li></ul><ul><li>retail </li></ul>
Bricks and Clicks Hierarchy of Internet participation levels Bricks and Clicks - A mixture of online and offline transactions Clicks - All business is online Bricks and Mortar -Information
Bricks and Clicks Hierarchy of Internet participation levels <ul><li>The first level of Internet activity consists of businesses that offer information only from their website. They do not offer sales of any kind and the site is a promotional tool only. </li></ul><ul><li>The ‘bricks and clicks’ level consists of businesses that use both only and offline sales channels. </li></ul><ul><li>Finally, the ‘clicks’, who are businesses such as the insurance business ‘elephant.co.uk’, only trade online and have no physical sales operations at all. </li></ul>
Investigating Internet Marketing <ul><li>P3 </li></ul><ul><li>Describe the benefits and opportunities to the business of using Internet marketing within the marketing mix of a selected business. </li></ul>
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