Key Aspects of Internet Marketing - Research Proposal Example

Running header: INTERNET MARKETING STUDY Internet Marketing Study Your March 21, 2009 The purpose of this study is to determine challenges facing internet marketing among the existing established firms and prospective new companies in the global market. The research is based on the following three research questions that are formulated to help in the collection of data concerning the areas of study: I. What is the impact of internet marketing on other traditional media among marketing firms? II. What are the strategies employed and how effective is the media as compared to the conventional marketing strategies? III. Why companies are turning to behavioral targeting campaigns? The study will focus on the impact and effectiveness of search engine optimization (SEO) and associated behavioral targeting aspect in the marketing strategies. The research design is descriptive in nature focusing on search engine optimization (SEO) as the main medium of internet marketing. The study techniques Information will be collected sampling of the techniques employed by various companies to ensure they capture users through natural search engine optimization, pay-per-click advertising, and paid inclusion. This study is to identify and recommend its finding for the improved internet marketing techniques especially to new business that are challenged by the relatively high entry costs from other media and how to effectively do so. 1.0: Introduction Conventional mass marketing techniques from the last century are now increasingly been shunned for the modern online marketing techniques propagated as today’s hi-tech savvy generation forces marketing firms to resort to internet marketing. The forum efficacy was emphatically demonstrated during the recent U.S. presidential elections when the initially less well connected candidate (Barrack Obama) managed to upstage the more established names with a landslide electoral victory by utilising the social networking forums available through the internet hence highlighting the formidable potent force of online marketing. Internet marketing has become one of the fastest growing sectors in the current competitive business world. This is especially manifest in advertising and Ecommerce, whereby even business start-ups are able to utilise the net to market their products at lower costs as compared to the conventional methods. Firms are now able to market their products globally through two business models: business-to-customer (B2C) and business-to-business (B2B). This medium has brought tremendous success to many sectors including banking, auction marts, sports, information, education, and the music industry. 2.0: Literature Review According to the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers, US online advertising spent a total of $16.9 billion in 2006. This was inform of search engine marketing (e.g. Google, MSN, Yahoo!, and Ask.com), display advertising, viral campaigns etc. (DirectTraffic, 1). The major appeal among the various benefits or advantages associated with internet marketing is the relatively low costs and the wider reach in its distribution and sales of products and services. The medium is able to operate through not only the traditional personal computers and email but also through wireless media like mobile phones and other gadgets while incorporating radio and television (Online streaming). Internet marketing requires both the technical and creativity of the web designers who develop the sites, advertising, and the sales aspects. It involves the positioning of the media content along several stages in the customer engagement sequence including search engine marketing (SEM), search engine optimization (SEO), banner advertisement on particular websites, the use of E-newsletters, and Web 2.0 tactics (Story, 1). 2.1: Internet Marketing Techniques Although like other long-established marketing strategies, internet marketing utilises conventional tactics like customer service, publicity, sales among others and it has several advantages over the other media. This include: enhanced expenditure efficiency and flexibility as compared to offline promotions; round the clock presence; expedient research methods for company’s products and cheaper market research; value added clients approval; homogeneous transactions schedule; enhanced reliability; interactive consumer marketing; higher prospect of market expansions; international esteem; and provides diversified revenue streams to the firm. Another major advantage is the ease of computation of statistical data regarding usage and its affect, accomplished rather inexpensively. This means that most aspects of the internet marketing campaigns can be sketched, evaluated, and verified through available techniques like pay per impression, pay per click, pay per play, or pay per action. This analysis uses web analytics to account for marketing and advertising exposure, reaction, and general effectiveness unlike other traditional marketing methods. 2.2: Limitations Conversely, internet marketing has a number of shortcomings. The main disadvantage is that for internet marketing greater impact towards the consumers requires them to have more enhanced modern technologies like broadband internet connection, ‘smart phones’ like I-Phone, Blackberry, etc. high-speed internet connection rather than the traditional dial-up connections. Another disadvantage is the lack of tangibility factor or impact on the consumers while prospecting for online purchases. This limits sales of certain products like clothes, cosmetics, or food. Other disadvantages stem from the apprehension over security of personal information shared online. This has been a major concern as several individuals and firm have lost vital data and funds due to either leaking of the information or hacking by cyber criminals. Fraudulent activities have limited ecommerce, as customers are apprehensive of the delivery of purchased items leading to major online companies like Amazon.com, eBay, and PayPal to buttress their images to secure their enterprise. 3.0: Statement of the Problem This study of internet marketing proposes a look at the tactics used by internet marketers to target the intended markets. The focus should concentrate on the search engine optimization marketing techniques, with a special emphasis on a new trend of behavioral targeting in search engine marketing as opposed to the traditional keyword targeted tactics. This study should outline what is search engine marketing (SEM), the strategies used in SEM, why search engine marketing is important, why it is a complex technique, and why it is an evolving line of marketing. The main components of search engine marketing that should be further investigated are natural search engine optimization, pay-per-click advertising, and paid inclusion. An analysis of the tactics employed to enhance search engine strategies, and web analytics, which provides a feedback on the impact of the search engine campaign. 4.0: Methodology Internet marketing is wide area of research whether segmented to the search engine sectors or more intensely to the behavioural targeting studies. The topic however provides a unique area of study that however is encumbered by lack of authoritative research but which can be feasibly be undertaken. The best sources of the research material should inevitably be through market research organisations, search engine monitoring sites (eMarketer.com, internetworldstats.com clickZ.com, etc.). Internet marketing has provided many small business start-ups the opportunity to reach wide audiences while being less costly. Large firms have also been provided an inexpensive outlet for enhanced sales that provides a more quantifiable market arena. The aspect of monitoring consumer behaviour also ensures more concentrated and effective marketing strategies. The marketing medium is however beset by a few shortcomings which can be overcome through intensive public relations campaigns and some restraint. These include consumer resistance to behavioural targeting advertising, security concerns over online transactions, and intangibility of the products offered. The second line of study will involve an evaluation of behavioral targeting in search engine marketing and consumer resistance to behavioral targeted marketing. The rise or the impact of internet marketing as opposed to other traditional marketing options; the cost analysis of internet marketing and its effectiveness; the actual impact of targeted markets in terms of sales volumes, advertising, and the consumer behavior. This study will attempt to determine the effectiveness of behavioral targeted marketed as weighed against other internet marketing techniques and various other offline marketing techniques or strategies Further research on targeted advertisements is recommended through the use of existing studies done various research firms. As the internet becomes increasing predominant in many homes with more people spending time online than with other traditional media outlets, many companies have enhanced their internet marketing budgets by spending more on targeted ads at the expense of radio, television, and banner ads. This is commensurate with the heightened online merchandising as reported in the fourth quarter of 2005; US retail ecommerce sales totaled $26.5 billion, which was an increase of 27.5 percent which led to higher competition online for marketing niches (Moshkovich). Further research on targeted advertisements is recommended through the use of existing studies done various research firms. As the internet becomes increasing predominant in many homes with more people spending time online than with other traditional media outlets, many companies have enhanced their internet marketing budgets by spending more on targeted ads at the expense of radio, television, and banner ads. This is commensurate with the heightened online merchandising as reported in the fourth quarter of 2005; US retail ecommerce sales totaled $26.5 billion, which was an increase of 27.5 percent which led to higher competition online for marketing niches (Moshkovich). 5.0: Analysis Search engine marketing is a target-oriented medium that seeks to direct potential consumers to the marketing firms’ websites through search engine result pages (SERPS). It as constituent part of an overall integrated web-marketing stratagem whose ultimate aspiration is to enhance the website positioning or visibility to the main search engine sites (The Big-3) or Google, Yahoo!, and MSN. It has been estimated that 90 percent of internet users rely on search engines to research on desired merchandise, services and for other information. This analogy is accentuated by the fact that most users use the first 10 to 30 search results or the first three pages hence condemning the rest to ambiguity. Over 60 percent U.S., search engine users rely on just two search engine mediums with the majority utilizing the site as their access point to the internet. Internet marketers therefore focus on natural search engine optimization or the strategy that ensures their website appears on this visible pages or listings (Direct Traffic). To achieve this, a skilled analysis in the companys website’s basic code, architecture, and visible content is enhanced to ensure the site features in the natural search results of spider-based search engines. This includes keyword research, directory submissions, search engine enhancements, link popularity enhancement, website conversion audit, website competitive intelligence, and website content enhancement. The Search Engine Marketing Professional Organization indicates that SEM techniques include search engine optimization (SEO), paid placement or pay-per-clip (PPC), demographic, contextual advertising, and paid inclusion. The New York Times however defines SEM as the practice of buying paid search listings (Story 2). The online user is therefore unconsciously self-directed while conducting research on items or subjects of their interest, whether academic, entertainment, news, or pure commerce. This data or information collected recorded by the search engine sponsor and which is retrievable. (AccuraCast 1) Behavioral targeting then develops from the recoded behavior of the user. The internet marketer prefers this specific consumer demand identified through internet usage thereby eradicating wasteful advertisements and enhancing efficiency. The marketers are attracted to the strategy due to its ability to direct the advertisements to the customers based on their previous search behavior. According to surveys done by Marketing Sharpa and IMedia Connection, a majority of companies were planning to enhance their spending on behavioral targeting, as they were largely impressed by the ROI. A Forrester Research study also confirmed that 52 percent of the respondent in the survey were already utilizing the sector, further confirmed this. They identified the main advantages of behavioral targeting as further click-throughs at over 35 percent more, additional conversions at 26 percent extra, and enhanced ROI of over 21 percent. However, the main disadvantages was conversely the sectors main draw or reduced impact as some prospective users are not drawn back to their past behaviors and a further larger number will not be made aware of the products or service unless they are advertised (Clay 1-4). One of the main drawbacks to behavioural targeting is the consumer’s resistance to being targeted by the internet market through unsolicited advertisements. This is also an area that needs further analysis through a perusal of consumer rights advocacy groups. There have been complaints of lack of disclosure and loss of privacy as internet users decried the use of their personal data without their consent and bombardment with advertiser’s products through using their personal data. A bill has been drafted, H.R.2929 (the “SPY ACT”) which requires those publishing personal data to give notice to the consumer and an option of declining the offers beforehand. Works Cited AccuraCast. "Search EngineStatistics 2006-2007." 2007. AccuraCast SEO Weekly. 18 March 2009 . Clay, Bruce. "The Promise of Behavioral Targeting." 2006. BruceClay.com. 18 March 2009 . Direct Traffic. "Internet marketing." 2 February 2008. Direct Traffic Ltd. 17 March 2009 . (MRM), Marketing Reseach Association. "USE OF INTERNET FOR CONDUCTING OPINION AND MARKETING RESEARCH." MRA Internet Ethics Guidelines 2000: 1-6. Moshkovich, Michael. "The Future Of Ecommerce Sales Is Promising…But Is Yours?" 2007. Webcart . 18 March 2009 . Story, Louise. "To Aim Ads, Web Is Keeping Closer Eye on You." 10 March 2008. New York Time Online. 17 March 2009 . Read More