Western College of Commerce &

Business Management.

Name: - Rutuja S. Harshe.

Roll No.: - 30914.

Class: - S.Y.BMS.

Subject: - Marketing Management.

Topic: - E-Marketing.

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 INDEX

Sr. No. TOPIC Remark Sign

01 Introduction

02 Business Models

03 Advantages

04 Limitations

05 Security Concern

06 Trend

07 References

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INTRODUCTION

Internet marketing

Internet marketing also referred to as I-marketing, web-marketing, online-marketing, Search Engine Marketing

or E-Marketing is the marketing of products or services over the Internet.

Internet marketing ties together creative and technical aspects of the Internet, including: design, development,

advertising, and sales.

Business models

Internet marketing is associated with several business models:

 e-commerce — this is where goods are sold directly to consumers (B2C) or businesses (B2B)

 Publishing — this is the sale of Advertising

 Lead-based websites — this is an organization that generates value by acquiring sales leads from its

website

 Affiliate marketing — this is the process in which a product or service developed by one person is sold by

other active sellers for a share of profits. The owner of the product normally provides some marketing material

(sales letter, affiliate link, tracking facility).

 Local Internet Marketing - this is the process of a locally based company traditionally selling belly to belly

and utilizing the Internet to find and nurture relationships, later to take those relationships offline.

 Blackhat Marketing - this is a form of internet marketing which employs deceptive, abusive, or less than

truthful methods to drive web traffic to a website or affiliate marketing offer. This method sometimes includes

spam, cloaking within search engine result pages, or routing users to pages they didn't initially request.

There are many other business models based on the specific needs of each person or the business that launches an

Internet marketing campaign.

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Advantages

1. Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the

target audience.

2. Companies can reach a wide audience for a small fraction of traditional advertising budgets.

3. 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.

4. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-

volume-profit (CVP) analysis.

5. Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all

aspects of an Internet marketing campaign can be traced, measured, and tested.

6. The advertisers can use a variety of methods: pay per impression, pay per click, pay per play, or pay per

action. Therefore, marketers can determine which messages or offerings are more appealing to the

audience.

7. The results of campaigns can be measured and tracked immediately because online marketing initiatives

usually require users to click on an advertisement, visit a website, and perform a targeted action.

8. Such measurement cannot be achieved through billboard advertising, where an individual will at best be

interested, then decide to obtain more information at a later time...

9. Because exposure, response, and overall efficiency of Internet media are easier to track than traditional

off-line media—through the use ofweb analytics for instance—Internet marketing can offer a greater sense

of accountability for advertisers. Marketers and their clients are becoming aware of the need to measure

the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than siloingeach

advertising medium.

10. The effects of multichannel marketing can be difficult to determine, but are an important part of

ascertaining the value of media campaigns.

Limitations

1. Internet marketing requires customers to use newer technologies rather than traditional media. Low-

speed Internet connections are another barrier.

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 2. If companies build large or overly-complicated websites, individuals connected to the Internet via dial-

up connections or mobile devicesexperience significant delays in content delivery.

3. From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods

before making an online purchase can be limiting.

4. However, there is an industry standard for e-commerce vendors to reassure customers by having liberal

return policies as well as providing in-store pick-up services.

5. A survey of 410 marketing executives listed the following barriers to entry for large companies looking to

market online: insufficient ability to measure impact, lack of internal capability, and difficulty convincing

senior management

Security concerns

Information security is important both to companies and consumers that participate in online business. Many

consumers are hesitant to purchase items over the Internet because they do not trust that their personal

information will remain private.

Recently some companies that do business online have been caught giving away or selling information about their

customers. Several of these companies provide guarantees on their websites, claiming that customer information

will remain private. Some companies that purchase customer information offer the option for individuals to have

their information removed from the database, also known as opting out. However, many customers are unaware if

and when their information is being shared, and are unable to stop the transfer of their information between

companies if such activity occurs.

Another major security concern that consumers have with e-commerce merchants is whether or not they will

receive exactly what they purchase. Online merchants have attempted to address this concern by investing in and

building strong consumer brands (e.g.,Amazon.com, eBay, Overstock.com), and by leveraging merchant/feedback

rating systems and e-commerce bonding solutions. All of these solutions attempt to assure consumers that their

transactions will be free of problems because the merchants can be trusted to provide reliable products and

services. Additionally, the major online payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have

also provided back-end buyer protection systems to address problems if they actually do occur.

Trends

This time of year is refreshing, in that it affords us time to reflect, analyze and develop strategies for our

companies for the coming year. For example, now is a great opportunity to identify the major

Internet marketing trends for 2009, and to develop corresponding marketing plans to capture market opportunities

and to maximize revenue accordingly.   

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To that end, the following is a list of 20 major Internet marketing trends taking shape for 2009.

Internet Marketing Trends

Trend1: Recession Marketing

Expect a lot of marketing messaging related to the recession. Don’t be surprised to see lots of offers that “save you

money” throughout the year.

Trend2: Internet Marketing-palooza

Due to its cost-effectiveness and inherent measurability, expect many more small businesses to takeInternet

marketing seriously in 2009. This includes everything from email marketing, pay-per-click advertising and social

networking, to increased investment in websites, microsites and custom landing pages.

Trend3: The Customer Voice

Customers are demanding a voice in your business, or they will seek alternative solutions. Think forums, blogs,

crowdsourcing, feedback forms, etc.

Trend4: Video Marketing

Many studies show that adding videos to a website increases traffic and time-on-site. There is a major increase in

online videos in 2009. Interactive video technology in 2009, through which users can click on elements within the

videos to be taken to associated content, microsites and shopping carts.

Trend5: Blogging

Blogging continued its growth in 2009. The barriers to entry in blogging are so low; expect many more small

businesses to launch their own blogs in the coming year.

Trend6: Social Marketing

Small businesses have been relatively slow overall to embrace social marketing.

Trend7: Mobile Marketing

It feels like everyone has an iPhone or other similar type of digital mobile device these days. Mobile marketing

finally realized its potential in 2009, especially for local businesses such as restaurants, movie theaters.

Trend8: Behavioral Targeting

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Expect online ads to become behaviorally based. Many new behavioral advertising networks will become available

in 2009, some serving dynamically generated images and messages based on each user’s online behavior.

Trend9: Behavioral Analytics

Complementary to Trend8, expect the world of measurement and web analytics to take a behavioral turn as well.

This means measuring not only which pages people visit on your website, but more importantly why they do so.

Trend10: Widget Marketing

Widgets (tiny, interactive Web applications) are relatively inexpensive to develop, and they can be an effective way

to ensure that your customers spend more time with your brand on an ongoing basis.

Trend11: Innovation

With the recession will come a greater intensity of competition? With this will bring a surge of creativity and

innovation in the online marketing world. Do not let your competition out-innovate you.

Trend12: Back-to-Basics Marketing

Expect less fluff and more marketing messages about how companies solve problems for their customers.

Trend13: Relationship Marketing

Companies will move towards a relationship-building model with their customers. Companies are going to need to

focus on thrilling their existing customers and building longer-term relationships.

Trend14: Verticalization

Verticalization is the natural progression of many marketing channels, providing marketers an opportunity to

communicate with a highly targeted audience. For example, if you are a shoe designer or retailer, think

ShoeTube.tv instead of YouTube.com. Expect verticalization in the online space in 2009.

Trend15: Personalization

What customer wouldn’t prefer a customized product or solution vs. a generic, cookie-cutter version?

Trend16: Multicultural Marketing

In the effort to uncover new audiences, many small businesses are going to realize the untapped potential of the

Spanish-speaking market right here in the US.

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Trend17: Mixing Display Ads & Search Marketing

Multiple studies have found that by adding an online display ad campaign to a pay-per-click advertising campaign

on the search engines, website traffic can double and conversions can increase significantly

Trend18: The Long Long Tail

Chris Anderson coined the phrase “The Long Tail” to describe the strategy of businesses (e.g., Netflix) that sell a

large number of items, each in relatively small quantities. The long tail represents an opportunity for small

businesses to capture segments and sub-segments of any market. With the economic downturn, expect the long

tail to get much longer as small businesses go after narrower and narrower niches towards the end of the tail.

Trend19: There’s No Place like Home

With the growing unemployment numbers, expect a surge in home-based businesses and in mom entrepreneurs in

2009. Correspondingly, expect a surge in marketing directed at this segment of the market. If you can help these

individuals be successful, start getting the word out now.

Trend20: Speed

With the growth in entrepreneurship and home-based businesses, we can expect the speed at which these

businesses respond to prospective customer inquiries to be fast. As such, small businesses that wants to thrive in

2009 need to operate at lightning speeds and to have websites that fully serve the needs of their customers.

References: -

Search engine: - www.google.com

www.bing.com

Website: - www.startupnation.com

www.wikipedia.org

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