Importance of Electronic Marketing in Business Today

Importance of Electronic Marketing in Business Today MARKETING MIX AND ONLINE MARKETING: Marketing mix, commonly known as the four Ps namely Product, Price, Place and Promotion was first suggested by Jerome McCarthy (1960) and is a vital aspect for establishing and executing the marketing strategies. Let us view in detail the different elements of the marketing mix on the context of online marketing. Product: Online marketing can lead to the improvement of the products in a lot of ways. Online marketing pave the way for the market researchers to evaluate the customers need and the criticism from them can be used to change the existing products and develop new products. Tescos online shopping website records the repeated purchases of the customers, which they use later on to provide a customized list for fast purchasing. It also facilitates a chance to customize the products as per the consumers wants like www.nike.com who offers customized instructors just for clients. Price: This refers to the pricing policies of an organization which are adopted to determine the price for a product or service (Chaffey 2003). Baker et al. (2000) discovered two habits that have been used by the manufacturers while marketing their products online namely; Setting up a low price for the products by beginners. Following the existing price in the internet by the current companies. A benefit of usage of internet is that it helps to minimize the costs on search that shoppers would have to bear while searching for information about new products and services. It also makes the shopping more active as the famous auction site www.ebay.com which makes the users to bid the price for the products. Online marketing makes the transaction more transparent making it almost impossible for the suppliers to manipulate on cost. The customers can also view sites to know the best deals for a particular product like www.shopmart.com, www.easyshop.com etc. Place: The place element in marketing mix explains the way a product is distributed to its end consumer. Allen and Fjermestad (2001) say that the biggest implication created by the internet in the marketing mix is for the place. This is due to the world wide reach of the internet. Internet has opened before the organizations a new channel to make their products reach their customers, apart from the traditional way of sales helping to cut down the barriers between both the parties. The huge investment that has to be made in stores can be reduced with business taking place in a much realistic way. Entry of internet into the marketing mix has avoided the retailers or third parties between buyers and consumers making it more challenging for the existing online retailers to ensure on time logistics. Promotion: The promotion element of the marketing mix shows how marketing conversation is made within the customers and the stake holders about the company and their products (Chaffey 2003). It deals with exchanging information regarding a product or service to the target market. Burnett (1993) defines promotion as the marketing function concerned with persuasively communicating to target audiences the components of the marketing program in order to facilitate exchange. The main ingredients of promotion mix are Sales promotion Advertising Personnel selling Public relations Direct marketing The internet is nowadays being used as an effective tool for marketing communication. The internet made it available before the companies, yet another way of channel to communicate to the buyers about the product offerings. The idea of online marketing can vary the promotion mix in the following ways: Evaluating the way the internet can be used at various phases of the purchasing mode. Revising new ways of using the ingredients of the promotion mix. Applying promotional tools to serve in various phases of customer relationships like attaining visitors for the first time and retaining them as a regular visitor. While using internet as a tool for marketing, it become possible for the organization to send emails on proper authorization basis, containing information related to the products which makes it possible for the company to maintain a long term relationship with the buyers online. Online marketing and the marketing mix picture: page 267 foundations of marketing Reference used: McCarthy, J.(1960) Basic Marketing: A Managerial Approach. Irwin, Homewood, II Allen, E. and Fjermestad, J. (2001) E-commerce marketing strategies: a famework and case analysis, Logistics Information Management 14(1/2) 14-23. McCarthy, J. (1960) Basic Marketing: A Managerial Appraoch. Irwin, Homewood, II Burnett, J,(1993) Promotional Management, Houghton Mifflin, Boston Baker, W., Marn, M. and Zawada, C. (2000) Price smarter on the Net, Harvard Business Rview, February, 2-7. Chaffey, D., Mayer, R., Kevin, J. and Chadwick, F.C. (2003) Internet Marketing IMPORTANCE OF ELECTRONIC MARKETING IN BUSINESS TODAY The requirements and wants of the consumers can be better understood, by knowing more about the consumers and also analyzing ways of providing their needs. This will essentially help in convincing the consumers or buyers requirements, earlier than your opponent. The information curve of the marketers can be enhanced based on the growing information of the customers. It is highly significant to deliver the correct goods and products to the consumers with precision, in order for the consumers to be satisfied. By establishing the principle of adding value to the services of every consumers or buyers, the marketers can be warned in advance of the ineffective and expensive competitive approach which can be achieved by the usage of electronic marketing. A superior and higher conventional product status and equity of the companys manufactured goods and services can be obtained, by adding high value to the manufactured goods. A good or bad opinion of the companys adopted strategies or action s achieved, can be obtained by setting off a workers criticism system. The usage of electronic marketing or existing communication schemes can help to improve such circumstances. The usage of online marketing can be limited to the following listed business conditions. An instance of the usage of online marketing is in the Company communications, A cheap and extensive, method of communication is the E-mail. It is a easy and lasting medium. It is used to send messages to unite with people using an already listed names and addresses. It has been an ever growing means of communication within the organization. Another fearful task that has been improved by online marketing is marketing research. The approaches used by the different companies can be examined, and the discussions with the companies can be preserved for discussions over a extensive phase of time. Another business condition where online marketing can be utilized is marketing planning and sales support. It is possible for additional people to use this intermediate for advertising information. Online marketing is also used in another situation productivity innovations. The usage of the electronic medium helps the sales personnels, as it speeds up the answers to the consumers queries about the product particulars, stock levels etc. Online marketing and sales practice will be more useful to the business-to-business relations in the instant future. High confidence and prospects will be accepted by the customers since the business sections overlay the pathway. Electronic marketing can also be used in the scenario of Customer loyalty. The buying behavior of the consumers are tracked by the companies, for which in depth databases are created. Another business scenario where online marketing is utilized is globalised reach. So, international marketing can be obtained easily as internet helps to interconnect organizations. Online marketing is used for a organization to obtain competitive intelligence. It is useful for the competitors to analyze our market information using the World Wide Web, and vice-versa. Efficient cost utilization is obtained using online marketing methods. It is usually cost effective, even without including installation charges. Even with installation charges included, when contrasted with the customer advantages obtained, it is cot efficient. Controlling of partnering and logistics is easy through the use of online marketing methods. It is easy for people in organizations to connect through the usage of electronic marketing resources. Internal intranets, or extranets, and agreements or associations with organizations may come under the connection medium. Corporate recruitments are another sector utilizing online marketing resources. Workers, advisors, government papers, specialty trades or common contractors can be traced using the above mentioned method. [REEDY, J. SCHULLO, S., 2004] ONLINE MARKETING vs TRADITIONAL MARKETING The earlier forms of promotion can classified under traditional marketing. The various methods are radio, billboards, TV and posters. The other methods such as email marketing, banner promotions, all come under the online marketing. Difference lies in the purpose it is used for. Traditional marketing expands the market of the manufactured goods and services, which is an important aspect for the existence of the organization. The customers have the opportunity to react to the promotion, as online marketing is a way of direct marketing. In this method, the customers can react, which helps in raising ROI. Measurability is an additional aspect that distinguishes both forms of marketing. It is easy to trace the clients with the use of tools in online marketing, whereas traditional marketing has several problems, one being dependent on human memory. The SMEs also utilize the online marketing due to the huge ROI obtained from it. It is possible for them to change their operations, by calculating the start of their leads. [http://www.sabest.biz/blog/2010/03/online-marketing-vs-traditional-marketing.html] FUTURE OF ONLINE ELECTRONIC MARKETING RESOURCES It is possible for the e-marketer to support and develop the value chain processes of electronic commerce for each and every persons advantage, as a result of the physically powerful base of electronic marketing resources. Solid effort, a number of successes and a little failures may be engaged in this process. In order to obtain profits for all of the marketing processes, it is necessary for the e-marketer to demonstrate serious thinking talents of the tactical and planned market scheduling and also be able to employ the available methods of electronic marketing effectively. The complex methods of electronic marketing is utilized in order to create value-added services, which produce results that are unthinkable in structure, even though a variety of electronic means are available to use. On the other hand, in order to get an explanation, it is necessary to estimate the present situations. A total of four aspects or issues are given below by which the electronic marketing may be affected by or may affect, which have been obtained by considering and arranging all the sustaining and contradicting data in an order: Development of technology Growth of the existing software The accomplishments achieved by combining Internet achievements The motivating force required by the marketers to provide better service to their consumers With the help of electronic marketing, a number of advantages can be obtained which include providing a means of communication between the e-marketers and the customers of the organization, as possible in a small sized business. It is required for the e-marketer to prepare and train well, as a variety of advantages are obtained by employing electronic marketing. Business Web Sites: B2C, B2B, C2C The sites which sell or market products and services even if it is the order takers or others who are more person-oriented mainly include in Web categories which are business to business (B2B), Business to Consumer (B2C) or Consumer to Consumer (C2C). Some sells to both consumers and businesses. (Internet Marketing by Barbara G. Cox and William Koelzer). BUSINESS TO CONSUMER SITES (B2C) The sites of B2C are more familiar to the public who uses the internet. In most of the industry, they market goods and services to the consumers. There are many stores such as department; clothing, electronics, food etc have their Web sites to sell the products. These sites dont have a store like buildings. They only sell their products through the internet. But not all these sites sell through online itself, the consumer buy their products from office, local store or even by telephone. The examples of B2C sites are amazon.com (books and other related products), staples.com (office supplies) etc. The online shopping is getting higher due to the increase in computer consumption in households. BUSINESS TO BUSINESS SITES (B2B) The market of B2B is increasing in an amazing rate. On the basis of Jupiter Research, the companies around the world will hike up their expenditure on B2B. As per the aggressive estimation of Goldman Sach, the worldwide spending through B2B will reach high rates in the coming years and he assumes that 80% of B2B worldwide commerce will be held online around the next 20 years. On the basis of Active Media Research, the majority of B2B sites are created for double purpose that is to sell both the products and services directly or indirectly around 98% of sites, 73% of them gives information. The main aim of making sales of the 77% of sites is by making an offline contact with the customers. CONSUMER TO CONSUMER (C2C) Majority of the Consumer to Consumer sales occurs through auction sites. In a survey conducted by Harris Interactive where The National Consumers League was the sponsor, it was found that the bidders of online auction of 83% had purchased things in the online auction. According to the report, 75% of the buyers have pay out average of $100 or less and the 21% have payed amount between $100 and $500. So in auction sites, the sellers will post their things to sell and their items will be bided by the customers. And the highest of those customers bids wins the thing which is for sale believing that the bid will meet a fixed minimum amount. A small amount of commission will be taken from the sellers bank account by the auction site if each of his item get sold. The buyers wont pay anything to the site. The best example for Consumer to Consumer site is E-bay. It is the biggest Consumer to Consumer auction site. E-bay has been a great model for the auction sites which are emerging now to help the businesses conduct e-commerce. Although eBay is generally a consumer to consumer service, the simplicity of this site is a great value of study for buying or selling the products in a Business to Business auction site by any business planning. In eBay, and many other auction sites the users will register and if they are planning to sell anything on the site, they can set up a way of payment, usually financial account or credit card that makes the funds transfer. The buyers will be able to analyse what they are looking for by entering the key words of any particular product in the search engine and the site will display products list for sale. The sellers will make the payment for listing and selling their products. Insertion fees will be charged by eBay generally around 25 cents and $2.00 wh ich will rely upon the opening bid, and a fee will be charged at the end of the auction which will be between 1.25 percent to 5 percent of the final selling price. The enhancements like featured placement or bold font will also be charged as an extra fees (Internet Marketing by Barbara G. Cox and William Koelzer). Benefits of Online Marketing [http://www.wisdomportal.com/Books/OnlineMarketing.html] [http://marketing.about.com/od/internetmarketingstrategy/a/marketingonline.htm] Benefits gained by the Consumers:ÂÂ   (1) Appropriate- customers can buy anything on their will for 24 hours without communication with the store physically. 2) Cooperative Instant-the buyers can get the information of the products they are interested in, from the sellers site and then download those instantaneously. Benefits gained by the Marketers:ÂÂ   (1) Increasing the relationship between the customers- The organizations can communicate with the customers to have a detailed knowledge about their needs and hence building customer databases. (2) Reduction in the costs and enhancing efficiency- Avoid the costs involved in building a store, amount for rents, insurance and amenities. Digital catalogs are way lesser than the printing paper catalogs. (3) Improved flexibility- For a paper catalog, its products and values are constant till the next printing takes place whereas an online catalog can be modified on a daily basis or also hourly, considering the products ease of use, its amount, and advertisings, to get along with the fluctuating market conditions. (4) Access to Global Markets- The Internet is an accepted medium by the whole world, which helps the consumers and sellers to be linked within any countries in mere seconds. Four Methods to Exhibit Online Marketing:ÂÂ   (1) Building an Electronic Storefront- Companies can be allotted an area by the online service or can create a new Website on their own wish. These sites help in creating a communication between the customers which helps them to be more close to a purchase. (2) Introducing Ads Online- Companies can create ads online in three methods: (a) First one being, the classified ads in the significant areas of high class online services. (b) Ads displayed in Internet news which are meant for commercial usage. (c) Purchase the online ads that come up while browsing the net like the pop- up windows. (3) Taking part in meetings, newsgroups, or communities posted by the web which are interesting for certain groups. (4) Usage of Online E-mail or Webcasting- Companies can provide newsletters provided by the customers, or advertising options depending on the history of the customers who are purchasing. Through Webcasting, matters relating the customers interest can be delivered. ONLINE MARKETING [http://www.yourdictionary.com/dictionary-articles/define-online-marketing.html ] Marketing online delivers the message of spreading marketing budget for a majority of companies. Online marketing produces many more advantageous solutions when compared to out-dated and offline marketing. In other words this can be termed as Internet marketing or web marketing. This method is adopted by those companies where goods are sold to the customers directly including those who are involved in a business to business model. Benefits of Online marketing Modifications on the fly: When compared to offline marketing, online marketing can place olden advertisements in newspapers or on TV and this can be modified on the fly. By following up with the advertisements, it is possible to make any no. of changes to the graphics or letterings which would not create any issues. But this cannot be done in the traditional method of marketing and advertising. Ability to track real-time results: While marketing online, tracking of real- time results is possible by the use of online analytics so that it is possible to know whether the marketing is carrying out. Certain methods exist to track the traditional methods, but many at times cannot be done in real- time. This can either create a good will or a bad one to the campaign. Focusing demographics in the advertising: With marketing online, particular demographics such as age, gender and location can be given importance. It is also possible to focus on the variations in income and education. This can be done in traditional marketing also but it is not an easy job. Various methods in marketing online: There exists variety of ways to exhibit online marketing like the email social media and newsletters. To do the same in traditional marketing, many media sources need to be available. Immediate ability to convert: While marketing online, it is capable of converting a buyer immediately. But this cannot be done in traditional marketing. When marketing online, it is not only capable of achieving the information of a customer, but also able to achieve the sale on the spot, while in offline marketing this procedure takes a much longer time. The most focused areas in the online marketing are: [http://www.yourdictionary.com/dictionary-articles/define-online-marketing.html] Associate Marketing: In this kind of marketing, the organization appoints an associate to improve and enhance their products. The associate in turn receives a commission or similar grants for each and every sale. Amazon.com Associates Central is an example that can be provided for anassociate marketing program, where the Amazon.com helps the owners of the website to bring in crowd to its site. Exhibit Advertising: In this type, they usually use the web banners on a third-party website to create traffic to their own website and enhance the awareness of the product. Email Marketing: Businesses that makes use of this type of marketing create promotional emails to impress the customers. But, it is a very tough job to differentiate the spam and the original email. Interactive Advertising: This sort of advertising makes use of animations and various other graphic involved methods, to produce ads which makes the viewers excited and involves their participation. Search Engine Marketing: Certain techniques that are used under this are- Search Engine Optimization (SEO), and paid inclusion. The companies adopting these techniques become prominent in the search engine page results from Google. Viral Marketing: With this kind of marketing, businesses expect the people to convey the informations achieved about the products. Those sites which allow the viewers to email hilarious clips is an example of viral marketing.