Internet Marketing

Learning objectives:-
 Introduction
 E-Marketing Concept
 Methods of E-Marketing
 Advantages of E-Marketing
 Advantages of E-Marketing to SME’s
 Steps for successful implementation of E-Marketing
 E-Marketing for enhancing Man Power Ability
Introduction
There has been rapid penetration of Internet in India in recent years and
Internet users are growing many fold. According to Internet and Mobile
Association of India, there were close to 60million internet users in the
country. As media clutter and segmentation become more, the rule than
the exception along with growing youth brigade of Indian consumers,
“E-Marketing is gaining prominence among marketers and ad
agencies.”
 What Is Internet Marketing

Marketing on the web is an altogether new way of interacting

with people and doing business with them .It has a lot more power as
compared to all other forms of marketing. It is powerful because it is
interactive, it enables an interaction , which closely approximates real-
life interaction.
Marketing on the web is alternatively referred to as online marketing or
Internet Marketing.
E-Marketing Concept

E-Marketing is the process of using modern technology such as

‘Internet’ and ‘Mobile Phones' for providing information to
the consumer regarding products and services by companies
and then listening to their input and feedback to modify the
information to suit the individual needs of consumers there by
increasing the chances of sales of the company, By presenting
information that matches individual consumer needs.
The Three Components of E-commerce

 E-commerce has three board components.

o B
B refers to intranet transactions of e-commerce.
o B to B
B to B or business-to-business e-commerce refers to inter-
enterprise e-commerce,where business firms sell their
products and services to other business firms on the net.
o B to C
B 2 C business-to-consumer e-commerce refers to marketing of
products and services to ultimate/household consumers on the
net.
The 2 components of web Marketing

 Marketing to business buyers

 Marketing to ultimate consumers
Though both components are equally important, a
greater part of the challenge of web marketing lies in the
second component . In fact , over the long term ,more of the
opportunities too lie in this component.
Understanding the web and Web
Marketing
 We can view the Web/Internet in four ways.
 A Business
 A Medium
 A Marketing channel ( or a tool for channel-less marketing)
 A complete Marketplace
To an internet service provider for example the
Internet is a business in itself. To an advertiser or an
information provider, it is a medium. To a seller it is either a
marketing channel, or a complete market place, depends how
he approaches it & uses it. The interesting point is that all
these are integral to the web, but none of them in isolation
constitutes a proper description of the web. The web
represents a larger concept.
Benefits of Web Marketing
 Benefits to the sellers
 Access to all markets
 Renders global marketing feasible for even small firms
 Helps unimpeded and constraints-free growth
 Scope for enhancing customer value and customer service
 Helps offer many services and products from a single stop
 Helps offer many services and products from a single stop
Benefits of Web Marketing
 Helps target the customer individually
 Helps building relationship with customers, help reduce costs
such as, business costs, Marketing costs, Channel costs,
communication/promotion costs
 Enhances marketing productivity
 Keeps sales people together electronically and enables them
work as a team in serving the customer.
 Allows companies to function like Beehives
 Enables to adjust quickly to market conditions
 Flexibility in marketing communications too
 A mass medium as well as a personalized medium
Advantages of E-Marketing
(A) General advantages for all players
 Wider Reach
 Personalized Targeting
 Interactivity
 Interactivity through Blogs
 Measurability
 Methods of E-Marketing

1. Traditional Methods in Internet

2. Modern Methods in Internet.
3. Marketing Through Mobile Phones
Traditional Methods of E-Marketing
A. Banner-Ads
B. Rich Media Banners
C. Pops Ups
D. Interstitials
Modern Methods In Internet
A. Webisodes
B. Viral Marketing
C. Interactive Games or Puzzles
D. Bribes (Discounts & offer information through
e-mails)
E. Viral E-mail Campaigns.
F. Search – Engine Marketing.
Advantages of E-Marketing to SMEs
SMEs particularly involved in marketing industrial products can
use internet for cost effective marketing. These players cannot
afford an extensive dealer network but use internet to access
global market through its own websites and third party sites
such as e-bay and rediff. These third party sites are online
brokers facilitating sales between buyers and sellers and
receiving commission for sales and also provide Internet based
auction facilities. The sellers can list their offerings in e-bay
for nominal charges and get a world wide reach of target
audience for its products. This was not possible earlier,
particularly for smaller players through traditional marketing
mediums and techniques.
Tasks in Establishing web Marketing

 Establishing a Web marketing facility is a collaborative task of marketing

and IT men. It is also time-consuming. Web marketing also needs sizeable
and continued investment.
The main tasks involved in establishing and running a web marketing facility:-
 Preparation
 The Need for a strategy and a business Plan

 Effective Targeting and In-depth Understanding of the Target Audience

Steps for Successful Implementation of
E-Marketing
Step 1. Planning the aim of E-Marketing
Step 2. Integrating with off-line advertising medium
Step 3. Marketing as a supplement to direct selling; not a
substitute
Step 4. Driving Traffic to the Website
Step 5. Home Page as a tool of attraction for repeated visits and
base for product promotion
Step 6. Converting Home page visits to sales
Step 7. Recording, reporting & Analysis
Step 8. Managing E-Marketing internally
Tasks in Establishing web Marketing

 Setting up an electronic storefront

 Making the site interesting and getting high traffic
 Devices for securing traffic
 Making the site Interactive
 Keeping the site Updated
 Making the site User Friendly
 Specialization-Product Magnets and Customer Magnets
 Securing Affiliates
 Web Portals
 Brand Building
 Creating a System for delivery of Product.
Growth of Web Marketing Worldwide

 Growth in Volume:- Leading Internet research companies, global online

transactions amounted to $ 109 billion in 1999. Some optimistic estimates
talk of global e-commerce exploding to a trillion dollars by 2002 (over Rs
400,000 crore ) three times India’s current gross national product. Even as
per the projections by Forrester Research , by 2003 world business to
business e-commerce is likely to grow to $1.3 trillion and business-to-
consumer e-commerce to $ 108 billion.
 Enlargement in the Range of Product Marketed:-The list of products
available on the web for sale also has been increasingly steadily. It now
spans a wide range ,from toys and books to passenger cars, computers and
education.
Growth of Web Marketing Worldwide

 Growth in subscriber Base of the Internet:- The internet has become a mass
medium very fast .Over 100 million people use the Internet subscribers
worldwide. The growth in the number of people hooked onto the Internet
has a direct bearing on the growth of Web Marketing.
Problems Web Marketing Faces in India

 Legal/Regulatory problems
E-documents is not yet legally admissible
Absence of an overall legal framework covering cyber
transactions and payment, Absence of taxation law
 Infrastructural problems
Low density of telephone, Pcs and internet access, Bandwidth
limitation, Networking limitation, Infrastructural bottlenecks
at the delivery end
Problems Web Marketing Faces in India

 Commercial Problems
Problems relating to payment, Low density of credit cards,
Inability to pay foregin suppliers online
 Other problems
Confidence in the system is low, Problem of hacking.
Limitations of the Web Marketing

 Web marketing has its limitations, too. Marketers have to correctly size up
the plus and minus of the Web.
 All Products do not Lend Equally well for Web Marketing:- The first
limitation is that web marketing is not suited for any and every product .
For ex. When Philips India went in for web marketing , it had to select a
few products and keep the others off.
 Costs Involved are not Inconsequential:- The costs involved in Web
marketing are not as low as is often made out. The costs do not stop with a
one-time expenditure on the setting up of the website. The marketer is
required to keep spending sizeable sums on running, maintaining, and
updating the site. Moreover, websites have to be kept alive round the clock
and throughout the year, as customers are spread over different time zones,
and want to do business on the net whenever they wish
Indian Firms Taking to Web Marketing

 Several companies in India have already made a beginning in

e-commerce, especially in B-to-B. In B-to-C, however we
notice only very few endeavors as of now. Even in B-toB e-
commerce, money does not flow over the net yet; but all other
transactions-requests, orders, amendments, schedules, delivery
instructions, receipts, invoices, payment terms and
clarifications-certainly flow over the net.
Banking Industry:-While almost all major banks in India have set
up websites, only a handful of them have moved towards real
net banking. ICICI Bank, IndusInd Bank, Citi Bank and Hdfc
Bank are among the early birds.
E-Marketing for enhancing Man Power
Ability