General information
Internet marketing is part of e-commerce. It is also called online marketing. It can include parts such as SMM , SEO , PPC , information management, PR , internet analytics, customer development (collecting feedback from customers to improve products and services).
1. Internet Marketing
General information
Internet marketing is part of e-commerce. It is also called online marketing. It can include parts
such as SMM , SEO , PPC , information management, PR , internet analytics, customer
development (collecting feedback from customers to improve products and services).
E-commerce and internet marketing have become popular with the expansion of internet access
and are an integral part of any normal marketing campaign. The segment of online marketing
and advertising is growing both in the consumer sector, as evidenced by the emergence of new
online stores every day , and in the B2B market .
The main advantages of Internet marketing are considered interactivity, the possibility of the
most accurate targeting , the possibility of post-click analysis, which leads to the maximum
increase in such indicators as website conversion and ROI of online advertising.
Internet marketing includes such system elements as:
● display advertising
● contextual advertising
● search engine marketing in general and SEO in particular
● promotion in social networks: SMO and SMM
● direct marketing using email , RSS , etc.
● viral marketing
● guerrilla marketing
● internet branding
2. ● email marketing
● content marketing
● Programmatic
Among the innovative ways to promote products on the Internet, the following are distinguished:
the use of non-standard advertising media (promo games, viral videos, branding of games);
internet exhibitions, internet auctions;
web conferences ( podcasts , webcasts, webinars, broadcasts, webinars );
systems of interaction with sellers (VRM);
website promotion in social media ( SMO - optimization for social media, SMM - marketing in
social networks, Social Ads - advertising in social networks);
mobile advertising (mobile application - advertising in mobile applications)
augmented reality (AR or augmented reality - these are systems in which the real world is
supplemented by virtual objects).
History
Until 1990, the use of the Internet for business was prohibited by the regulations of the US
National Science Foundation, but later large companies gained access to it. After the transfer of
control over the Internet to private hands in 1992, the circle of consumers and Internet service
providers expanded significantly, the network connected millions of people and computers
around the world.
In the same year it opened the first online store for Charles Stack, selling books [en] . In 1994,
Amazon opens , which in July 1995 launched its online store. In October 1994, First Virtual
began offering its services to pay for goods on the Internet and became the first electronic
payment system. A couple of years later, in 1996, MasterCard and Visa announced the creation
of an open unified standard for protecting payments on the Internet using plastic cards, which
was referred to as SET . A little later, the first search engines begin to appear . [one]
3. Now Internet marketing is something more than the sale of information products, now there is a
trade in information space, software products, business models and many other goods and
services. Companies such as Google , Yahoo , and MSN have taken and segmented the online
advertising market by offering local advertising services to small and medium-sized businesses.
The return on investment has improved and costs have been reduced. This type of marketing
has become the foundation of modern capitalism, which allows anyone with an idea, product or
service to reach the widest possible audience.
The use of the term "internet marketing" usually refers to the direct response marketing
strategies traditionally used in direct mail, radio and television commercials, only here they are
applied to the internet business space.
These methods have proven to be very effective when used on the Internet, thanks to the ability
to accurately track statistics, multiplied by the ability to be in relatively constant contact with
consumers, whether they be in the B2B or B2C (business to consumer) sector . This precision
analysis feature is now ubiquitous, and that's why you can often see terms such as ROI - the
return on investment ratio, conversion rate - the effective visit rate (aka website conversion ), as
well as instantly get statistics on sales, demand, etc. ...
4. In 2012, according to the results of a study by RAEC [2], the advertising market was: contextual
advertising - 37.55 billion rubles, media advertising - 19.20 billion rubles, video advertising -
1.74 billion rubles. At the same time, the search marketing market occupied 10.24 billion rubles,
and the social marketing SMM market - 4.67 billion dollars.
Business Models
Internet marketing has been associated with several business models . The main models are
business-to-business ( B2B ) and business-to-consumer ( B2C ). B2B consists of companies
that do business with each other, while B2C involves direct sales to the end consumer. The first
to emerge was the B2C model. The B2B scheme turned out to be more complex and took effect
later. Rarer models include the consumer-consumer model ( C2C ), where ordinary Internet
users change among themselves and sell goods to each other. An example is the international
5. eBay auction or the Kazaa file sharing system.... And also C2B models - the seller of a product
or service is an individual, and the consumer is a commercial organization .
Features of 4P
The 4P theory in internet marketing gets some quirks.
Product (Product) - what you sell using the Internet. It competes not only with products from
other sites, but also with traditional stores.
Price - most often the price on the Internet is lower than in a regular store due to cost savings,
but there is a need for delivery, which is not only associated with costs, but also with transport
risks.
Promotion (Promotion) - a set of measures to promote a brand or product on the network.
Includes a huge arsenal of tools (search engine promotion, contextual advertising, banner
advertising, email marketing, affiliate marketing , viral marketing , hidden marketing , interactive
advertising, blogging, etc.).
Place of distribution (Place) - a point of sale, for Internet marketing, the point of interaction when
making a purchase decision (for example, a website, landing page, advertisement, a group on a
social network, etc.).
Benefits
Online marketing has a number of advantages over traditional marketing:
Interactivity . In internet marketing, they are actively involved in business processes. This can
include taking part in online surveys, building a company's reputation through reviews, and
attracting new customers. In addition, clients can perform a number of important tasks, such as
placing orders, ordering calls, as well as contacting online consultants;
Personalization . If traditional marketing is aimed at the mass consumer, then Internet
marketing, to a certain extent, takes into account the opinion of everyone and interacts with
6. everyone at a convenient time for him. Also, the presence of personal information about users
on the Internet allows for targeted targeting in advertising campaigns;
Availability . Internet marketing allows you to more accurately assess the effectiveness of
advertising, the number of visitors, their interests, as well as the motives that brought them to
the site. In addition, online advertising is less expensive than traditional advertising.
Thanks to these benefits of internet marketing, its importance to businesses is increasing every
year. All companies operating in the modern market can be divided into three groups, according
to the degree of use of Internet marketing in their activities: traditional, mixed and fully
electronic. The last group includes companies that exist only on the Internet - these are usually
online stores. The activities of most companies are combined in offline and online modes,
therefore the second group of "mixed" is the most numerous.
Restrictions
Internet marketing restrictions pose challenges for both businesses and consumers. If a
consumer has a slow Internet connection, this leads to difficulty in using animated videos,
presentation films and high-quality graphics in advertising, although, in principle, the problem
with speed is a matter of time, every day there are fewer “slow” users. Dial-up is replaced by
high-speed Internet.
The next inconvenience is that online marketing does not allow the consumer to try out the
product before making a purchase. But most consumers have a simple solution to this problem.
They get acquainted with the product they are interested in in a regular store, and make a
purchase in an online store. Germany, for example, passed a law in 2000 (Fernabsatzgesetz,
later merged with BGB ) whereby any customer can return an item purchased online without
explanation and receive a full refund. This is one of the main reasons why e-commerce is so
developed in Germany.
The problem of the inability of the buyer to “touch” the product can also be solved in other ways,
for example, some owners of online stores use high quality and resolution photos of the product,
trying to convey in the images all the details and features of their products. The use of special
photographic equipment for digitizing product images in 3D (volumetric image) format is also
gaining popularity, allowing the visitor of an online store to view the product from all angles.
Another inhibiting factor is the limited payment methods that consumers trust. But, in principle,
all these restrictions apply only to B2C.
Security
For both companies and consumers involved in online business, security issues are very
important. Many consumers are afraid to shop online because they are not sure that their
personal information will remain confidential. There have already been cases where online
business companies have been caught disclosing confidential information about their
customers. Some of them have declared on their websites that they guarantee the
confidentiality of consumer information. By selling information about their customers, such
companies violate not only their declared policy, but also the laws of several states at once.
7. Some companies buy information about consumers, then offer the consumer to remove this
information from the database for money . One way or another, many consumers do not know
that their private information is being disclosed, and cannot prevent the exchange of this
information between unscrupulous companies.
The issue of security is one of the main issues for companies that are serious about doing
business on the Internet. Encryption is one of the main methods used to ensure the security
and confidentiality of transmitted data on the Internet.
The Impact of Internet Marketing on Business
Internet marketing has had a huge impact on a number of business areas, including the music
industry, banking, the market for portable electronic devices (mobile phones, music players,
etc.), the so-called flea market, and most importantly, advertising.
In the music industry, many consumers have started buying and downloading MP3 music over
the internet instead of buying CDs .
Internet marketing has also impacted the banking industry. An increasing number of banks are
offering their services online. Online banking is more convenient for the client, as it eliminates
the need to visit the bank or its branches every time. In the United States today, about 50 million
people use online banking services. Online banking is one of the fastest growing sectors of
internet business. The increasing speed of Internet connections plays an extremely important
role in this. About 44% of all Internet users use Internet banking services.
8. Online auctions have taken off and flea markets are struggling to survive. Unique items that
used to be found in flea markets are now sold on online auctions like eBay. Also, the
development of auctions has greatly influenced the prices of unique and antiques. If earlier it
was difficult to find information about the price, now you can see the price of a similar item at the
auction. And to have at least a general idea of
the value of the goods, since you can always find
out for how much one or another thing was sold for. More and more sellers of similar products
are running their business online from home.
The impact on the advertising industry has been and remains truly enormous. In just a few
years, online advertising has grown exponentially, reaching tens of billions of dollars a year.
Advertisers began to actively change their preferences, and today Internet advertising already
occupies a larger market niche than radio advertising (in developed countries).
Today it is difficult to find a large industrial enterprise that does not promote itself online. Growth
trends can be easily seen from the constant expansion of online trading platforms, as well as
the growth of their number. Online marketplaces have long ceased to be the message boards
from which they have grown. Today, some of them have grown into large corporations providing
a range of marketing services. Prices for participation in such venues are also growing
(meaning privileged membership), despite the fact that their number is increasing.
Social Media Marketing
Joining Twitter, Facebook and forums, posting to Flicker and YouTube, commenting on other
people's blogs are all online marketing opportunities. But it is time consuming and more difficult
than marketing through ads or directory listings. On social media, you need to be able to
communicate, and not just advertise your products or services. Commentary “Good question.
Please visit my site… to find out about… ”- this is just spam, not dialogue.
Omnichannel approach
To attract customers, retailers must move from a linear marketing approach of one-way
communication to a model of value exchange, reciprocal dialogue, and benefit-sharing between
supplier and consumer. [3] The dissemination of information can occur through multiple
channels, such as numerous blogs, YouTube, Facebook, Instagram, Vkontakte and a number of
other platforms. Online communities and social media enable people to easily create content
and publicly post their opinions, experiences, thoughts and feelings on many topics and
products, accelerating the dissemination of information. [4]
9. The Nielsen Global Connected Commerce survey conducted interviews in 26 countries to find
out how consumers use the Internet to make in-store and online shopping decisions. Shoppers
are increasingly looking to shop overseas online, with over 50% of those surveyed who have
shopped online in the past six months claiming to have bought overseas. [5]
Leveraging an omnichannel strategy is becoming increasingly important for businesses that
must adapt to changing consumer expectations, who require increasingly sophisticated offerings
throughout the buying process. Retailers are increasingly focusing on their online presence.
Over time, this can lead to consumers buying online products that fit their needs, and sellers do
not need to take inventory inside the physical location of the store. Conversely, some online
retailers are shifting from the Internet to the real world to open appropriate retail outlets to
provide personalized services, professional assistance, and a tangible experience with their
products. [6]
Marketing in the digital age
There are several ways brands use online marketing that are beneficial when promoting online.
Internet marketing in today's world not only allows businesses to sell their products and
services, but also provides online customer support through 24/7 services to make customers
feel valued. Leveraging social media engagement allows brands to generate both positive and
negative reviews from their customers, and determine which media platforms work well for
them. Thus, internet marketing has become a more significant benefit for brands and
businesses. Nowadays, consumers often post online reviews through social media, blogs and
websites about their experiences with a particular product or brand.
Recent developments and strategies
One of the major changes that has taken place in traditional marketing has been the
“emergence of digital marketing,” which has led to a rethinking of marketing strategies to adapt
to this major change in traditional marketing (Patrutiu Baltes, Loredana, 2015).
Since internet marketing depends on technologies that are constantly evolving and changing
rapidly, the same functionality should be expected from internet marketing designs and
10. strategies. This part is an attempt to identify or highlight notable highlights that exist and are in
use today.
Segmentation: There is more emphasis on segmentation within internet marketing to reach
specific markets in the B2B and B2C sectors.
Influencer Marketing: Important nodes are identified in related communities known as
influencers. This is becoming an important concept in digital targeting . You can reach
influencers through paid advertising, such as Facebook ads or Google Ads campaigns , or
through sophisticated social customer relationship management ( sCRM) software .
Online behavioral advertising is the practice of collecting information about a user's online
activity over time, "on a particular device and on different, unrelated websites, to deliver
advertisements tailored to that user's interests and preferences." [15] [16]
Collaboration environment. A collaborative environment can be created between an
organization, a technology service provider, and networked ad agencies to optimize effort,
resource sharing, reuse, and communication. [17] In addition, organizations invite their clients
to help them better understand how to serve them. This data source is called " User Content". A
lot of information is acquired through the company's websites, where the organization invites
people to share ideas, which are then evaluated by other users of the site. The most popular
ideas are evaluated and implemented in one form or another. Using this method of collecting
data and developing new products can stimulate organizations' relationships with their
customers, as well as generate ideas that would otherwise be overlooked.
Data-Driven Advertising: Users generate a lot of data at every stage of their journey to the
customer, and now brands can use that data to activate their known audiences through
programmatic purchases of media data. Without exposing customer privacy, user data can be
collected from digital channels (for example, when a customer visits a website, reads email, or
launches and interacts with a brand's mobile app), brands can also collect data on actual
customer interactions, such as visits brick and mortar stores and from CRM datasets . [eighteen]
Remarketing.
Remarketing plays an important role in internet marketing. This tactic allows marketers to
publish targeted ads in front of a product category of interest or a specific audience that either
searched for a given product or service or visited a website for some purpose.