Is Internet Marketing Better Than Traditional Marketing - Research Paper Example

How Internet marketing is better than traditional marketing? By Summary My project is about the internet marketing. In this project I will investigate the evolution of Internet Marketing from traditional marketing. The basic aim of this research is to investigate why internet marketing is better than traditional marketing? Internet marketing has changed the shape of business, and gives it more strength and access to international market. I will investigate the different features of internet marketing and also new prevalent issues like information security regarding the organizational data. So this research will concentrate on opportunities that Internet marketing has brought for us. Background Here I will present a detailed background of my research that is about the evolution of internet marketing. Marketing “Marketing is the group of institutions, actions, and activities for producing, communicating, allocating, and exchanging offerings that have worth and value for consumers, customers, affiliates, and culture/society at large.” (Marketing definition approved in October 2007 by the American Marketing Association:) According to (Kotler 1996, p. 924) “Marketing is the common and administrative method by which individuals and groups acquire what they need and want through creating offering, and exchanging products of value with others”. History of marketing Marketing has very long history it was started after the early industrialization of commercial goods. In pre-modern financial systems, the prevalence of small ventures and/or natural local monopolies militated alongside the acceptance of marketing as a separate ground of knowledge and expertise (Troy, 2004, p. 2). The augment of economics as a regulation, mainly in the 19th century, tiled the means for studies of marketing. But the expansion in volume and scope of on a national scale and universal economies in the course of the industrial uprising guided in due course to a transcendence of informal retailing and marketing modernisms and to end with to systematization. Marketing came out as a different technical area merely in the late 19th century (Ref-14- The Evolution of Internet Marketing, 2005, P3). Evolution from traditional marketing to Internet Marketing As new technology comes into view, the way of living and techniques of business have changed. The modern technology provides lots of facilities regarding the production and development. As this production enlarged the need for the distribution of these products to their target customers was also emerged. Internet marketing is the best way that has provided more potency and access to international marketing of products. Traditional marketing and its techniques turn out to less efficient to defeat the need for more targeted and wide marketing (Charles, 2007, p290). The techniques of marketing have altered and improved, and we have turned out to be a lot more proficient in telling our stories and receiving our marketing communication out there. Internet Marketing is the product of the people attending worship among contemporary communication knowledge and the age-old marketing ideologies that humans have forever carried out (Kenneth 1998, p. 17). Internet marketing The Internet is offering an innovative universal technology structure in which to build all kinds of new products, services, policies, and organizations. It is reforming the techniques information is being used in business and daily life (Chekitan et al, 2005, p344). By eradicating many technical, geographic, and cost barriers impeding the comprehensive flow of information, the Internet is increasing the speed of information revolution, exciting new uses of information technology and latest business models (Kenneth 1998, p. 17). Statistics about Internet marketing emergence Internet marketing has boasted enormous impact on a number of earlier retail-oriented businesses comprising film, pharmaceuticals, flea markets, music, banking as well as the advertising business itself (Troy, 2004, p. 2) By the means of internet marketing the amount of banks offering the capability to carry out banking tasks online has as well augmented. Online banking is supposed to demand to consumers for the rationale that it is further easier than visiting bank branches (Höne et al, 2002, p256). At present mostly people like to use banking online, with growing Internet link speed being the main reason for rapid boost in the online banking business. Of those persons who make the most of the Internet, 44 % at the present carry out banking operations by means of the Internet1. The end result on the marketing industry itself has been substantial. In presently a small number of years, online advertising has developed to be value tens of billions of dollars yearly. Internet marketing has a growing impact on the online procedures. How Internet marketing is differs from traditional marketing Now I will discuss how internet marketing is different from the traditional marketing. Here I will outline few points to demonstrate the difference among these two concepts. One-to-one approach Internet marketing is amid at targeted user who is generally browsing the Internet alone, so the marketing communication would be able to reach them individually (Troy, 2004, p. 1) Application to definite interests Geo markets and Internet marketing places a distinction on marketing that command to a precise activities or interest, slightly than reaching out to a generally definite demographic (Andrew, 2005, p. 3). . Internet marketing is diverse from magazine marketing and advertisements, where the purpose is to apply for and appeal to the projected demographic of the magazine. For the basis that the promoter has information of the aimed audience, people who connect in definite activities, the business does not depend on the expectancy that some group of people will be interested in its latest manufactured goods or service (Ref-14- The Evolution of Internet Marketing, 2005, P6). Geo targeting In internet marketing geo marketing and geo targeting are the ways of forming the geo location of an internet website visitor with geo location application software, and bringing unusual content to that visitor supported on his or her location, like as metro, region/state, city, code/zip code, country, business, IP address, ISP or additional criteria (Andrew, 2005, p. 2). Diverse content by preference In internet marketing each user has different content according to his choice. And this facilitate in the better content selection. Internet Marketing: Advantages Internet marketing offers numerous advantages (Kenneth, 1998, p935) some are given below Internet marketing is reasonably low-cost when measured to the ratio of cost besides the reach of the target customer/audience. Corporations are able to arrive at wide-ranging visitors for a little fraction of customary advertising financial plan. The disposition of the medium facilitates customers to investigate and get hold of goods and services at their personal convenience. Consequently, businesses have the benefit of attracting the customers in a medium that be able to bring consequences swiftly (Mootee, 2001, p4). The policy and on the whole good organization of marketing movements depend on industry goals and cost-volume-profit examination. If we want to demeanor a campaign we would have the benefit of measuring statistics with no trouble and inexpensively. Nearly all features of an Internet marketing movement can be determined, traced, and qualified. As an advertiser we would be able to make use of a assortment of techniques Review Internet marketing effects the new Generation Internet marketing has a very deep effect on the new generation. In this new age approximately 80% of US youngsters are daily use the internet (AMA, 2007). They want all things at one place. Now people can buy things, do business, and have banking facilities, online entertainment and each facility of life on the internet. These all reached us through the internet marketing, so new generation can have better way of getting information and facilities through internet marketing (Lynn, 2001, p3). Internet marketing as well facilitates in the online associate marketing business that is open 24 hours a day to make our money. Customers are buying goods and services more than ever by means of the Internet and marketing pay out on media like that search marketing, online classifieds and display advertising is speedy succeeding (Siponen et al, 2007, p4). However immediately when we think we have got it formed out, customers tell us otherwise. Consumers are familiar with the companies that function in the course of numerous channels, and they will influence either channel is the majority suitable to assignment. Studies demonstrate that Internet marketing is motivating off-line hard work; and there is an important overlooked vision if all channels are not integrated. The Internet has enhanced consumer’s responsiveness of the product they are taking into consideration. The consumer, in most cases, desires not to pact with the customary hassle linked with buying a car and the Internet has been a magnificent vehicle to build up the communication with consumers and as well as proffers an extra professional way of communication (Voss, B.D. 2001,p234). Domestic creates drop off and pre-owned are in the similar multiplicity of significances because of the verity that they are able to observe each attribute of a pre-owned components on the web sites. Online Internet marketing is able to take an assortment of forms, from associated marketing to pay per click advertising to search engine optimization to email and newsletter drives (Guiltinan, 1996, p. 374). Here I want to discuss on more feature of the internet marketing that is better response rate. Prevalent Issue Security issues In this modern age internet security is the biggest challenge for the business. In the internet marketing we also face some security problems, like internet spamming where people send fake information or business data through email. There are also lots of problem in this scenario like credit card hacking and website DOS (denial of service) attack (Lynn, 2001, p1). Now I will discuss the biggest confront regarding the internet marketing that is information security. Information security is noteworthy together to corporations and customers that make a payment in online business. A lot of customers are uncertain to buy items over the Internet for the reason that they do not believe that their private information will stay private. Encryption is the chief practice for putting into practice privacy strategy (Andrew, 2005, p2). One more security apprehension in internet marketing that customers have with e-commerce merchants is whether or not they will achieve in particular what they buy. Online merchants have tried to engage in this suffering by endowing in and structuring powerful customer brands like we have Overstock.com, Amazon.com and eBay. Limitations Internet marketing needs consumers to make use of the latest technologies fairly than traditional media. Low-speed Internet links are one more barrier: If corporations build up huge or extremely multifarious websites, those linked to the Internet via dial-up links or mobile devices possibly will practice extensive interruption in content delivery. From the purchaser’s point of view, the powerlessness of customer to feel, taste, smell or attempt on touchable goods previous to creating an online agreement would able to be limited (Guiltinan, 1996, p. 192). Internet marketing ethics issues There is immense significance of the internet marketing or marketing ethical issues. The ethics are the civilizing values of the society. It is the internet marketing in a culture where approved and moral boundaries are pressed to be very successful and how the manner encompasses those about us that if there are no procedures next to something then it is ok to do, why even question regarding ethics and philosophy on the Web? For the basis that, it manipulates us; The Internet is an emergent and a repeatedly on the rise creature that will live on in infinity. As such, it would be intelligent to consider the E-business lawful and Internet marketing ethical and moral issues (Lynn, 2001, p2). There are also lots of issues regarding the internet marketing those are given below: Consumers survey cheating and practical jokes Copyright violations Website problems Marketing and keywords scams Identity stealing and Internet deception Domain name registration problems and scams Opportunity As we know that world business is running through the economic crisis, so in these conditions the worldwide companies are looking toward the low cost business choices. The internet marketing is one of them. Internet marketing is reasonably cheap when evaluated to the relation of cost next to the reach of the goal audience. Corporations are able to accomplish an extensive audience for a little fraction of customary advertising resources (William et al, 2007, p373). Below I have demonstrated the comparison among the internet and traditional marketing. I have shown the cost versus time comparison. It demonstrates the elevated time needs for the advertisement drives. Figure 1- Internet marketing vs. traditional marketing- SOURCE{http://www.aicpa.org/index.htm} Internet marketing practices have been considerably affected by technological progressions in the telecommunications business. In point of fact, numerous companies are accepting a latest paradigm that is changing the focus of online promotion from straightforward text ads to affluent multimedia practices (Wiant, T.L. 2005, p5). As a consequence, advertisers would be able to additional successfully connect in and direct online product campaigns, which look for profile customer approach and feelings regarding meticulous products. The vital technological progress that is fueling this paradigm shift is the Broadband technology. By this broadband technology millions members of this mounting market have the capability to view TV-like advertisements with the click of a mouse on the internet. And to be convinced, internet advertisers are functioning apprehensively to design loaded multimedia content that will turn out a warm-fuzzy reaction when visited by their targeted audience. As link speeds carry on to augment, so will the occurrence of online branding campaigns (Lynn, 2001, p1). Better communications: A lot of customers would support to obtain marketing communications from firm by means of e-mail; however numerous firms are still conveying resources snail mail (William, et al, 2007, p456). The standard for Internet marketing is a thought called permission marketing, which gives confidence corporations to find out people’s authorization to make them informative by means of e-mail. So it is researched that a lot of people feel trouble-free to have online communication, so the internet marketing has a great opportunity to reach a huge number of customers. From the above research we have found Internet marketing Traditional marketing Less expensive More expensive Less time required More time required More wide approach Less wide approach For global business Mostly for local business More viewers Less viewers Instant response Response takes time Supportive to new trend Becomes old for new generation Less effort for having a transaction More effort required No physical qualities (touch, smell, taste) Physical qualities (touch, smell, taste) Have lot of online information security, safety, and ethical issues Less issues Methodology and approach In this research I have tried to have a deep investigation on the internet marketing. I have tried to investigate approximately each aspect of the internet marketing. I have discussed its features, trends, threats and opportunities. I have adopted the explanatory approach regarding this research. This is a very huge field and in this research I have tried to touch each aspect of this field. Conclusion In this new age of technology we are living in the world where people have no time for giving attention to your products ads. We have to use the new ways by which we can effectively provide our message to our customer. Internet is the most effective way for doing this task. Traditional marketing is only limited to particular community but in the internet we can target each age group by viewing their interests. Internet marketing is less expensive and faster way to market the product or service throughout the world. Here we have different portals where we can find the people having similar viewpoints and interests. This type of fast, clear, less expensive and targeted marketing is the need of this age. So I have researched internet marketing is perfect in all scenarios. This all possible through the extensive progress in the field of the internet, now mostly US households have the high speed internet connotation. We can watch a product ad as we have on our TV. Traditional marketing methods still have its place in the market. Most of small and medium sized organizations still depend of this medium of marketing. I have investigated the question that How Internet marketing is better than traditional marketing? I have found that internet marketing is now the need of time. World is merging rapidity into the internet, and internet marketing is the only way for reaching the appropriate and targeted customer in less time and less cost. I have researched about how and why the internet marketing is more effective then traditional marketing and found several factors that have supported this argument. References 1. Andrew Eklund, 2005, Web Based Marketing, source: http://www.streetdirectory.com/travel_guide/5280/marketing/dont_baffle_me_talk_to_me.html, retrieved on 15 January 2009. 2. Charles W. Lamb, Joseph F. Hair, McDaniel, C. 2007. ‘Marketing’, New York: South-Western College Pub. 3. Chekitan S. Dev and Don E. Schultz. 2005. ‘In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century’, Marketing Management v.14 n.1. 4. Guiltinan. 1996. ‘Marketing Management: Strategies and Programs’, McGraw Hill/Irwin. 5. Höne, K., Eloff, J.H.P. 2002. ‘Information security policy – what do international security standards say?’. Computers & Security, Vol. 21 No.5, pp.402-9. 6. Kenneth C. Laudon. 1998. ‘Management Information System Sixth Edition’, New York. Addison Wesley Publishing Company. 7. Kotler, Philip. 1996. ‘Marketing Management Analysis, Planning, Implementation and Control’, Harlow: Prentice Hall. 8. Kotler, P. Armstrong, G. 2007. ‘Principles of Marketing’, London: Prentice Hall. 9. Lynn Wolf, February 2001, Internet Marketing—The End of Traditional Marketing as We Know It, source http://www.aicpa.org/pubs/tpcpa/feb2001/index.htm, retrieved on 15 January 2009. 10. Marketing definition approved in October 2007 by the American Marketing Association: Available online at: http://en.wikipedia.org/wiki/American_Marketing_Association, retrieved on January 28, 2009. 11. Mootee. 2001. ‘High Intensity Marketing’, SAPress. 12. Siponen, M.T., Oinas-Kukkonen, H. 2007. ‘A review of information security issues and respective research contributions’, The Database for Advances in Information Systems, Vol. 38 No.1, pp.60-81. 13. The Evolution of Internet Marketing, May 2005 http://www.indora.nl/mambo/images/stories/Downloads/e-business%20the%20evolution%20of%20internet%20marketing.pdf., retrieved on 15 January 2009. 14. Troy Janisch, 2004, Talking About My Generation: The Evolution of Online Marketing Research, Source: http://www.onlinearts.net/, retrieved on 15 January 2009. 15. Voss, B.D. 2001. ‘The Ultimate Defense of Depth: Security Awareness in Your Company’, SANS Institute, white paper. 16. Wiant, T.L. 2005. ‘Information security policys impact on reporting security incidents’, Computers & Security, Vol. 24 No.6, pp.448-59. 17. William. M. Pride. 2007. ‘Marketing’, New York: South-Western College Pub. Read More