Role of the Internet in Marketing Strategies - Dissertation Example

Role of the internet in marketing strategies Table of Contents Table of Contents 2 Introduction 2 Internet and Marketing 3 A new age of Marketing 7 New internet based techniques and platforms 7 Incorporating advanced technology for marketing 8 Internet Marketing Strategy Development 10 Fundamental Marketing Strategies 11 4Ps marketing Mix Models 11 Internet Basic Role 12 Conclusion 14 Bibliography 15 Introduction At present, the internet tools and technologies are the main drivers of financial growth, since the innovation offered by the internet tools and technologies has modernized the structure of every kind of organization (e.g. small, medium and large). Additionally, the utilization and implementation of the internet tools and technologies for instance e-commerce and e-business have turned out to be as frequent as telephones, fax machines, and business cards in carrying out business operations. However, these nonstop growth and improvements in the internet tools and techniques have made business sector more competitive than ever before. Since, with the internet every corporation in the world is a local competitor. Furthermore, almost every corporation at the present recognizes that the internet is a very helpful and supportive tool for better dealing clients and reaching into the global markets (Summers et al., 2003, p.67; Watson et al., 2000; Rao et al., 1998). This paper presents a detailed analysis and role of the internet in formulating marketing strategies. In this scenario this paper will discuss ideas about internet marketing from different researches. This paper will also outline some aspects of the marketing strategies those can be effectively supported through the internet. Internet and Marketing Internet that is mostly acknowledged as “the Net,” is a wide platform of computer networks, in which users at any one computer can receive information from any other computer (as well as they can communicate straightforwardly to users at different computers in different locations). Additionally, at the present time, the internet is a, supportive, public, self-financing facility available to hundreds of millions of users internationally (Turban et al., 2005, p.71). According to (Ray, 2004, p.269), the internet is a contemporary technology for the corporation. However this technology, like every other technology, is simply a tool and it depends on corporation how they gain benefits by implementing this technology. Additionally, the internet helps corporations to attract new customers, services presented ones improved, correspond to customers using more effective and professional ways, collect information about customers choices as well as retrieve it quickly, and trade more products. Moreover, a lot of organizations have attempted to make use of the Internet as impressive much more than it is. Organizations as well as individuals built whole businesses online, believing that in some way this would distinguish them from other organizations or businesses. But, a lot of among these organizations failed (Ray, 2004, p. 269). “Marketing is the technique of planning and implementing the ideas; pricing promotion and distribution of ideas, products, goods, and services to make exchanges that accomplish individual as well as company’s goals” (Summers et al., 2003, p.7). On the other hand, e-marketing can be explained as “carrying out traditional marketing process by making use of electronic methods”. However, the technique of internet marketing refers to the marketing and promoting products, services, goods, and ideas using the internet. In more simple words, internet marketing is basically one type of e-marketing, although possibly the main and essential element. Additionally, there is no exact classification of internet marketing; certainly the terms for instance, web marketing, cyber marketing, and on-line marketing, together with internet marketing, can be adopted interchangeably. Thus, it can be said that internet marketing encompasses the entire online processes that involve interactive communication with customers. Furthermore, the internet is merely one of the potential electronic tools that a marketer can use, since the internet is a significant and growing tool for marketers (Summers et al., 2003, p.391; Anthony, 2010; Rai, 2010). Web/Internet Marketing The utilization of the internet tools and techniques has augmented in recent years amazingly, carrying out business activities in the digital economy means doing some kind of electronic commerce through web-based systems on the internet and other electronic networks. Additionally, a lot of researches prove and support being of encouraging consequences of using internet on a company’s competitive edge. In addition, the implementation of internet technologies has become more and more well-liked nowadays, since the expenses of developing, maintaining, and accessing the internet and web site is comparatively less. Furthermore, at the present, corporations make use of the World Wide Web to collect and distribute or publish information to and from authentic and prospective clients, customers, consumers, and progressively for end-consumer business transactions using electronic commerce (Khodaparasti, 2009). Also, the web capabilities such as interactive and multimedia united with other internet capabilities for instance, email support for group and personal communication, offers a number of ways for communicating with customers. Furthermore, the web is able to provide a platform to back-end operations such as, expert systems technology and databases operations. Thus, the internet can be an outstanding source for a range of marketing strategies (Watson et al., 2000; Dewan et al., 1999). Customers are moving toward the internet by the hundreds of thousands. On the other hand, people are selecting to order goods products, and services on the web instead of going to the local store. Additionally, the information that on one occasion required communicating many sources (customers, retailers, departments) is at the present at organizations fingertips. In addition, effortless access to information, products, services, and goods offer customers a great deal more control, thus, corporations must discover a great deal more efficient methods of attracting and maintaining customers trust. Furthermore, researches show that the internet (specially, the web) provides corporations a more useful and efficient marketing platform as compared to traditional ways for marketing products, goods, or services to consumers. Also, the quick developments in the internet technologies are presenting businesses the chances or facilities to enter into the worldwide markets and reach millions of customers at very low expenditure. These facilities and opportunities have encouraged a lot of corporations. Thus, it is not astonishing that a lot of executives are sure about statements that the internet is the international marketplace of the future (Rao et al., 1998; Sawyer, 2010; Summers et al., 2003, p.391). When internet was emerged, a lot of marketing communication experts and researchers argued that this modern way would offer innovative facilities and opportunities for the marketing communication procedure. A number of researchers even forecasted the death of the traditional marketing role. Additionally, modern and up-to-date strategies for internet marketing have been created and adopted to incorporate modern tools for gaining advantages and targeting customers; product strategy highlighting dependability and promotion foundational upon well-organized websites. In view of the fact that the internet is a widely used platform, corporations making use of it are for all time potentially communicating and dealing with international audiences. Thus, this can cause more global competition. However, there are also dissimilarities in how the internet is utilized in forming marketing strategies. For example, the results of a comparative research between the Australia, UK, and New Zealand demonstrated that businesses and corporations in all three countries usually utilize internet for marketing communication however the utilization of internet for performing transactions was much higher in UK as compared to Australia and New Zealand (Lagrosen, 2005; Sheth & Sharma, 2005; Summers et al., 2003; Adam et al., 2002; Lagrosen, 2005). A new age of Marketing The present age is new age of marketing that is offering new and advanced techniques in for marketing products and services. As Yang (2006) outlined that online marketing paradigm is speedily emerging and relatively poorly recognized when evaluated to a lot of the customary marketing ways. Online marketing has uniqueness that it is similar to both direct marketing like catalog marketing and indirect marketing like television, radio based marketing. The capability to track web-based visits through web based “cookies” all through a purchasing process is similar to a catalog marketer’s utilization of source codes to outline orders back to particular catalog versions. Though, the idea of advertisement simulated that is viewed through an untracked web audience is comparable to television audiences seeing a commercial. The exceptional nature of online internet as well as the accessible data sources directs a company to use exclusive applications for organizing and optimizing the needs of web based customers (Yang, 2004; Adam et al., 2002; Foxall, 1989). New internet based techniques and platforms Wong, Chan, & Leung (2005) stated that marketing is another main area of business that is presently operating through the internet based information systems and technology platforms. Presently marketing areas of business employ decision support systems, customer databases, data warehouses, sales automation, and business intelligence software to carry out its marketing related tasks. The internet based marketing supports and facilitates the organizations to enter into the international markets and reach broad categories of people whilst personalizing the buying practice for each one and offering active information on inventory, suitable prices, best-selling products, etc. Furthermore, the support offered by the internet based platforms regarding business marketing and management involves advertising, customer support delivery, target marketing, and payment (Wong et al., 2005; Turban et al., 2005). To support the process of business marketing strategy development, organizations use decision-support system (DSS) that facilitates the management in the strategy development and decision making by integrating information, suitable logical models and techniques, and easy to use interface into a single commanding system that facilitates unstructured or semi structured decision making. In addition in case of marketing the main strategy development process involves new information technology based tools in this scenario, a DSS offers marketers with an appropriate group of tools, techniques and facilities for assessing key blocks of data that is gathered as a result of marketing research. Thus, the DSS offers the management information and evaluate it to take a decision for presenting new marketing campaign (Whitten et al., 2000; Hutchinson & Sawyer, 2000). Incorporating advanced technology for marketing At the present, there are a lot of tools and techniques for the corporations, which can help them, formulate business marketing strategies, for instance, one most commonly used tool is data mining. However, the data mining is a newly emerged paradigm but it has gained a great recognition regarding the knowledge discovery from complex data sets. Thus, by using or implementing data mining in marketing strategy development organizations can gain a lot of advantages such as better customer tracking, buying behavior analysis, market segmentation, targeting customers and most especially in web based advertisement (Laudon & Laudon, 1999; Turban et al., 2005). In this scneario, Seifert (2005) outline that data mining entails the utilization of sophisticated data manipulation and analysis techniques and tools to determine previously unknown, relationships and valid patterns in huge data sets. Additionally, these data analysis techniques and tools encompass mathematical algorithms, statistical models and machine learning techniques. In addition, the goal of these algorithms is to enhance decision making performance automatically through experience example of such technology can be decision trees or neural networks. Thus, the data mining is composed of activities not only managing and collecting data, it as well encompasses predictions and analysis of the given data (Seifert, 2005; Laudon & Laudon, 1999; Turban et al., 2005; Paul, 1996). In this scenario Seifert (2005) stated that inetrnet based data mining platform is offering an automated analytical procedure for the processing of huge databases business searching intended for universal patterns of customer attributes, buying behavior, contact history, or campaign feedback examination all-through millions of rows of client behavioral data. This kind of analysis techniques has been incorporated by a large number of corporations for decades also it is a costly item. In this technique, the client data can be processed into sections and groups or segments of customers having related characteristics. Then predefined algorithms, analysis tools and automated business rules, client data and information can be used to allocate targeted advertisement groups to offer special products or discounted rates to that specific class of web based customers. In addition, the client’s “firmagraphic” or “demographic” data could also be joined to buyer records to offer extra significant information not mostly obtainable through corporation’s internal databases (Seifert, 2005). According to Keating (2008) itnetnet enabled data mining is a technique to achieve market intelligence from a vast amount of customers’ data. Furthermore, this technique of data mining resolves the problems of learning from business data because lack of data is not a huge problem nowadays (Keating, 2008). Internet Marketing Strategy Development In developing an internet marketing strategy an organization needs to assess a lot of aspects. The internet based platform offers a lot of advantages regarding the effective policy development and fundamental metrics implementation for the business. Coming section will discuss some aspects regarding the business marketing strategy development in internet environment (Herbig & Hale, 1997; Wu, 2002): Product profile development: In internet working environment organization have a main facility that is to develop their business products profile. In this scenario the internet based working structure facilitates them regarding the effective promotion and customer intentions analysis for the business products. Target marketing: In web based marketing arrangement organizations have better customers’ intentions awareness. In this way they are able to develop a better customer profile that offers enhanced facilities of targeting the products and services all through the world. The basic aim of the business marketing is to target the customer who is seeking for the products quality, with high excellence is products performance. The internet based platform is aimed to offer the business a high business and market edge for offering high quality products and better market preference. Furthermore, the target market through the web based platform is all through the world. Sales objectives establishment In internet based marketing organizations can be able to establish effective sales objectives. In this scenario organizations can manage the products and promotional drives in a better and enhanced way. Furthermore, by implementing the internet based marketing organizations can be able to assess potential business products sales and demand rates. Fundamental Marketing Strategies In internet marketing organizations mainly rely on fundamental marketing strategy of 4 Ps. This strategy is aimed to offer business better handling and management of the business products. The purpose of implementing 4 Ps in the Marketing strategy is to enhance the business marketing power through effective establishment of the business products promotions and marketing (Summers et al., 2003; Trump University, 2008): 4Ps marketing Mix Models There are four main factors of the Marketing Mix model (Trump University, 2008). Promotion: For the business promotion the internet offers better platform for the business promotional services. Those directly lead towards the better business strategy development. Product: For the business product marketing strategy development the internet platform is used to develop better products profile. In this way the business customers can have enhanced insight of the business products Place: regarding the place point of view the internet marketing can target the business products according to business products places based aspects Price: In case of price based business products marketing, internet offers better facilities regarding the effective price based policy development Internet Basic Role Adam, Mulye, Deans, & Palihawadana (2002) stated that overall marketing strategy is the range through which organizations navigate. As prospects arise or a business environment transforms, the objective and marketing strategies in organization’s plan will point them in the direction of the most excellent action. Furthermore, if an organization has no strategic plan, then its marketing process will be at risk, consequential in deduction regarding what might be most excellent for its business (Adam et al., 2002). To be beneficial from internet marketing, a company’s website as well as other marketing strategies should be an element of its whole business marketing plan. In addition, through aligning online marketing with offline efforts, an organization can be able to effectively attain overall company objectives (Herbig & Hale, 1997). The internet offers the organizations, marketing strategies to bring a constant boost in online business traffic. Though these methods are extremely significant to a company’s overall plan, they are simply a temporary traffic source as well as have to not be exclusively relied upon. The internet based marketing offers marketing strategies those comprise (Lagrosen, 2005): Participating in forums Purchasing advertising Search engine optimization Internet based marketing of a long term marketing strategies are those that carry a stable stream of targeted traffic eventually. These approaches will carry on encouraging results even years down the road. In addition, the internet offers long term marketing strategies those comprise (Paul, 1996): Giving Away Freebies Blogging Opt-in Lists Social Networking Sites Article Marketing Social Bookmarking Sites By creating as well as putting into practice a reasonable internet supported marketing strategy, using both short-term as well as long-term strategies, a company could be able have a steady stream of targeted business traffic to its corporate website (Thomas et al., 2006). Recommendations According to (Lake, 2010), the internet marketing can catch the attention of more people towards a company; it as well augments branding of a company and products and services, and increases customers for the business. In this scenario (Lake, 2010) presents some recommendations for starting a marketing strategy using the internet. These recommendations are given below (Lake, 2010): 1. A company should begin by establishing a web promotion plan and an attractive web design and development strategy 2. Then try to achieve top position in popular search engines, and make use of good search engine optimization techniques 3. A company should be able to utilize email marketing technique efficiently 4. Control marketing position through partners, resellers, and associate programs 5. Hire an internet marketing advisor to analyze marketing strategy 6. Develop an approachable opt in email list 7. Distribute information about company, publish articles or get listed in news stories 8. Write and distribute online press releases 9. Support and manage competitions and giveaways through company’s web site 10. Use blogs and communicate with company’s visitors By adopting the above mentioned recommendations a company can be able to develop and maintain an existing internet marketing strategy that could improve its business significantly (Lake, 2010). Conclusion Internet has modernized the ways of carrying out business activities. Now organizations have advanced and affordable tools for conducting business. This paper has presented a detailed analysis of different perspectives of internet marketing, which is marketing by making use of the internet. This paper has shown how internet can be used to support business strategies. Normally, businesses build strategies to gain competitive edge and attract more customers. In this scenario, this paper has shown various uses and tools of internet marketing that can help marketers in attracting more customers as well as gaining a competitive edge. This paper has comprehensively discussed the role of the internet in marketing strategies. This paper has also highlighted some of main aspects of marketing strategies those can be effectively supported through the internet. I hope this research paper will offer a deep insight into the role of the internet in marketing strategies. Bibliography Adam, S., Mulye, R., Deans, K.R. & Palihawadana, D., 2002. E-marketing in perspective: a three country comparison of business use of the Internet. Marketing Intelligence & Planning, 20(4), pp.243-51. Anthony, J., 2010. What Is Internet Marketing? [Online] Available at: http://www.articlesbase.com/internet-marketing-articles/what-is-internet-marketing-2105149.html [Accessed 05 April 2010]. Dewan, R., Jing, B. & Seidmann, A., 1999. One-to-one marketing on the internet. 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