E-Marketing Environment in Present Scenario
E- marketing is popular nowadays worldwide. Through the help of Internet companies interested in selling goods and services can easily penetrate into the homes and offices of prospective buyers. Companies can measure their marketing related statistics easily and relatively inexpensively.Certain drawbacks such as information security related issues are of prime concern. Online banking is on constant rise Online advertising techniques have been dramatically affected by technological advancements in the telecommunications industry.
In fact, many firms are embracing a new paradigm that is shifting the focus of online advertising from simple text ads to rich multimedia experiences Success in e-commerce requires creative website designing skills.Marketers will become more clever and integrated in marketing approach in near future Introduction Internet marketing, also referred to as i marketing, web marketing, online-marketing, or e Marketing, is the marketing of products or services over the Internet. The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant response and eliciting responses is a unique quality of the medium.Internet marketing is sometimes considered to have a broader scope because it not only refers to the Internet, e-mail, and wireless media, but it includes management of digital customer data and electronic customer relationship management (ECRM) systems. Internet marketing ties together creative and technical aspects of the Internet, including: design, development, advertising, and sales. Internet marketing also refers to the placement of media along different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing, and Web 2.strategies.
In 2008 The New York Times, working with comScore, published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found the potential for collecting data upward of 2,500 times on average per user per month.
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 process in which a product or service developed by one person is sold by other active seller 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. Black hat marketing – this is a form of internet marketing which employs deceptive, 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. One-to-one approach The targeted user is typically browsing the Internet alone therefore the marketing messages can reach them personally.This approach is used in search marketing, where the advertisements are based on search engine keywords entered by the user. And now with the advent of Web 2. 0 tools, many users can interconnect as “peers. ” Appeal to specific interests Internet marketing and geo marketing places an emphasis on marketing that appeals to a specific behavior or interest, rather than reaching out to a broadly-defined demographic.
“On- and Off-line” marketers typically segment their markets according to age group, gender, geography, and other general factors. Marketers have the luxury of targeting by activity and geolocation.For example, a kayak company can post advertisements on kayaking and canoeing websites with the full knowledge that the audience has a related interest. Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical, but rather the advertiser has knowledge of the target audience—people who engage in certain activities (e. g. , uploading pictures, contributing to blogs)— so the company does not rely on the expectation that a certain group of people will be interested in its new product or service.Geo targeting Geo targeting (in internet marketing) and geo marketing are the methods of determining the geolocation (the physical location) of a website visitor with geolocation software, and delivering different content to that visitor based on his or her location, such as country, region/state, city, metro code/zip code, organization, Internet Protocol (IP) address, ISP or other criteria.
Different content by choice A typical example for different content by choice in geo targeting is the FedEx website at FedEx. om where users have the choice to select their country location first and are then presented with a different site or article content depending on their selection. Automated different content With automated different content in Internet marketing and geomarketing, the delivery of different content based on the geographical geolocation and other personal information is automated. Advantages Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets.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.
The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis. 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.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. 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. 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.
Because exposure, response, and overall efficiency of Internet media are easier to track than traditional off-line media—through the use of web 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). The effects of multichannel marketing can be difficult to determine, but are an important part of ascertaining the value of media campaigns.Limitation Internet marketing requires customers to use newer technologies rather than traditional media. Low-speed Internet connections are another barrier.
If companies build large or overly complicated websites, individuals connected to the Internet via dial-up connections or mobile devices experience significant delays in content delivery. 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.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. 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 tems over the Internet because they do not trust that their personal information will remain private. Encryption is the primary method for implementing privacy policies.
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. Broadband-induced trends Online advertising techniques have been dramatically affected by technological advancements in the telecommunications industry.
In fact, many firms are embracing a new paradigm that is shifting the focus of online advertising from simple text ads to rich multimedia experiences. As a result, advertisers can more effectively engage in and manage online branding campaigns, which seek to shape consumer attitudes and feelings towards specific products. The critical technological development fueling this paradigm shift is Broadband. In March 2005, roughly half of all American homes were equipped with broadband technology.By May 2008, broadband technologies had spread to more than 90% of all residential Internet connections in the United States. When one considers a Nielsen’s study conducted in June 2008, which estimated the number of U. S.
Internet users as 220,141,969, one can calculate that there are presently about 199 million people in the United States utilizing broadband technologies to surf the Web. As a result, all 199 million members of this burgeoning market have the ability to view TV-like advertisements with the click of a mouse.And to be sure, online advertisers are working feverishly to design rich multimedia content that will engender a “warm-fuzzy” feeling when viewed by their target audience. As connection speeds continue to increase, so will the frequency of online branding campaigns. Effects on industries The number of banks offering the ability to perform banking tasks online has also increased. Online banking is believed to appeal to customers because it is more convenient than visiting bank branches. Currently over 150 million U.
S. dults now bank online, with increasing Internet connection speed being the primary reason for fast growth in the online banking industry Of those individuals who use the Internet, 44 percent now perform banking activities over the Internet. [Internet auctions have gained popularity. Unique items that could only previously be found at flea markets are being sold on eBay. Specialized e-stores sell items ranging from antiques to movie props. As the premier online reselling platform, eBay is often used as a price-basis for specialized items.Buyers and sellers often look at prices on the website before going to flea markets; the price shown on eBay often becomes the item’s selling price.
It is increasingly common for flea market vendors to place a targeted advertisement on the Internet for each item they are selling online, all while running their business out of their homes. The effect on the advertising industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually. PricewaterhouseCoopers reported that US$16. 9 billion was spent on Internet marketing in the U.S. in 2006.
This has had a growing impact on the electoral process. In 2008 candidates for President heavily utilized Internet marketing strategies to reach constituents. During the 2007 primaries candidates added, on average, over 500 social network supporters per day to help spread their message. President Barack Obama raised over US$1 million in a single day during his extensive Democratic candidacy campaign, largely due to online donors. Success in e-commerce requires marketing skills (or hiring someone with good marketing skills), hard work, and a good website/selling system.There are some good free tools out there to set up a store online, such as ZenCart. A free Zencart site includes everything you need to sell online and includes a system to track all of your orders, control inventory with your browser and process credit cards online without having to open a merchant account (using a paypal payment gateway) Getting a good site is just half the battle.
Getting traffic to a new online site can be a challenge. The good thing is that there are alot of free things you can do to get a bunch of traffic to your site.You need to reach out to your existing customers and maintain a regular (at least monthly) e-mail list that you send to regularly. There is a free article you can get about this often-overlooked source at listautomater. com. You need to have good content on your site that is didactic to some degree that has relevant info for persons doing searches on the big 3 search engines. You need to do some work on what is becoming known as Web 2.
0 – Write blogs frequently on your site and if you can, get engaged in social networking sites like technorati, Facebook, MySpace, and Linkedin.Find out about social bookmarking sites like delicious and stumpledupon. Make posts with links back to your site on Squidoo (called a lens there) and Digg to get free content. Taking steps to get links back you your site from popular “relevent” websites is well worth the effort and can be done with little or no cost. You need to give value in order to attract traffic to your site so make sure you spend some time on this, as it is very important. There are also web consultation services out there that will coach you in the process and set up your web store -such as Affordable-E-Commerce. com.
The Hurdles are certainly not financial ones, as you can get online with very little money. You need to have some time to do your homework or at the very least you need a good coaching service to help you on your journey. Take advantage of every free tool that you can out there like posting you tube or upstream videos on your site before paying for traffic. Make sure that you or your web service add google analytics to your site so you can track traffic to your site and can get important information like what people are entering on search engines to arrive on your site. With some time and effort, selling online can be fun and very profitable. It took some time to learn some of the tricks of the trade but its not like they are big secrets or anything. Don’t worry about the Hurdles.
They may slow you down a little but keep on trying and you will succeed. The most important quality of any successful online merchant is persistence. Possible changes in future
- 1. Spam will be an issue for senders, but not recipients I get sent hundreds of Spam emails each day, but I see maybe three. Filter technology is working. And I haven’t found an important email in my Spam folder for months. Sorry, but your newsletter or email promotion won’t count as truly important for most people.
There’s just too much financial interest in defeating Spam for it not to happen. And soon. The problem for marketers is avoiding the clever traps and filters laid for Spam. And that’s probably going to cost you money. So…
- 2. Email marketers will divide into the haves and the have nots Think about likely best practices in a few years – conforming to authentication requirements, participation in various reputation-based programs, detailed analysis of email content and structure to meet the varying needs of different email clients and email provider services, on-the-fly behavioral segmentation and email customization, etc. tc. None of that is going to be cheap. Email marketing will still make companies a lot of money, but only given a reasonable investment of time and resources in the first place.
- 3. But there will still be room for the little guys Possibly because some clever company will find out ways of solving the above problems cheaply.
Possibly because low delivery rates will still let you make a profit. But mostly because some small companies will still think faster than their larger counterparts. Will offer more value in their emails.And, above all, will talk with the real human voice which resonates best with recipients and that many larger marketing behemoths simply can’t cope with or replicate.
- 4. Email may merge with other forms of online communication Emails may be replaced with “messages. ” We can’t keep on adding new communication channels and expect people to cope – we already have landlines, fax, mobile phones, email, IM, chat and more acronyms on their way.
At some point aggregation has to occur, physically and strategically. Physically with tools that simply accepts messages from all sorts of elivery vehicles and presents them to the recipient in a single format they prefer. Strategically, we will not think of email as a standalone message vehicle, but look at our marketing from a generic viewpoint. How best to get the right message to the right person at the right time in the right place? How it gets there is flexible. The delivery mechanism may end up fairly irrelevant and be handled automatically by our marketing tools.
- 5. Email clients will get clever How about email clients that notice you never read the Acme Shoes newsletter and ask you if you want to be unsubscribed?Or organize your incoming email not by time of delivery, but by priority (based on your previous email reading habits. So the newsletters you always read are sitting at the top of the pile when you come back from a business trip.
- 6. Email service providers will get more sophisticated and integrated Given the complications involved in email marketing at the top tier level, we’ll get top tier services to address the problem. Total management solutions that are almost in place today, integrating all of the following in one handy package… Email list management and hosting •Deliverability, authentication and reputation services •Metrics, response and website analytics •Reporting and strategic evaluation •Keeping the photocopier topped up with paper.
Today e- marketing is very popular in western developed world . In our country also with the spread of education and fast growing number of good earning professionals it is on boom. More and more companies are marketing goods and services through internet With the help of e-marketing marketers are capable of saving their precious money .No need to set up attractive expensive showrooms. they can escape from the Problems of channel management, but there are certain hurdles in this, the purchasers are unable to touch the goods Many consumers are hesitant to purchase items over the Internet because they do not trust that their personal information will remain private Low-speed Internet connections are another barrier. If companies build large or complicated websites, individuals connected to the Internet via dial-up connections or mobile devices experience significant delays in content delivery.The effect on the advertising industry itself has been profound.
In just a few years, online advertising has grown to be worth tens of billions of dollars annually. In coming future anti spam laws will become more and more tougher. More customized way of product offering will come in near futureREFERENCES Marketing management, (kotler and keller) by Prentice hall Marketing management, (Ramaswamy and Namakumari) by Macmillan Services marketing (Rajendra nargundkar) by MacGraw-Hill The Hindustan times news paper www. marketingtitan. com