Internet Business and Marketing
A Look at Today's Growing Internet Business
In what way does the Internet effect marketing in business? Today's industry must be profitable and continually seek to improve the profit margin set forth by the shareholders. In order to be on top of the ladder and rise above the ever-growing list of competitors, companies must stay in line with technological advances. The means of marketing a company's services has changed at a near daily pace over the last several years. In present time, a company's success would be elevated by the use of Internet services.
Marketing on the Internet requires an explicit knowledge of not only the user's needs, (Stibel, 2005) but also the information to meet the needs.
In an Internet article (Gromov, 2001) concerning Internet pre-history, it is reported that the real beginnings of computers as we know them today, lay with an English mathematics professor, Charles Babbage (1791-1871). Since the invention of his "Difference Engine", which was as large as a locomotive, and later restructured and called the "Analytical Engine", today's computers and applications, including the Internet have advanced at a perpetual speed. This advancement in technology has created a competitive world of cyber marketing and businesses must keep up with the competition to assure a prosperous future for their company.
According to a study of Internet usage (Poon, 1997) from the Swineburne University of Technology, the number one Internet usage driver is direct and indirect advertising. In the past ten to fifteen years, the commercial use of the Internet has risen from a researcher's tool to an everyday business necessity (Forman, Goldfarb & Greenstein, 2003) and will continue to grow for...
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Stibel, J. (2005, March) Electronic Shopping and Mail-order Houses. Behavior & Information Technology, vol. 24 issue 2, p. 147.
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Nowadays, the popularities of the internet do change people’s life and even influence the strategy of a company. The article “Strategy and the Internet” authored by Michael Porter presents a few constructive opinions towards companies using the Internet for business that tells company should not lose the focus on building strategic development and competitive advantage. In the article, Michael Porter demonstrated that “the Internet is an extremely important technology, but it has made it difficult for companies to remain profitable over an extended time period”. (Porter, 2001) And internet leads many businesses “distort their market signals and competitive advantage”. (Porter, 2001) It is obvious that company tend to different from other which only focus on price strategies rather than through traditional methods of differentiation. (Porter, 2001) Throughout this article, Porter mainly aim to demonstrated that the Internet will weaken company’s profitability without providing proper operational advantages, because the proper use of internet will add value and increase company’s traditional competitive advantage, but it is unlikely for company to replace it. (Porter, 2001)
Commonly known as the Internet, the world’s largest network is used extensively throughout the world today. Since its creation in 1983, the Internet has continued to grow in popularity and use as a commercial and private communications medium. Millions of people throughout the world use the Internet in a variety of ways, ranging from personal conversations to on-line shopping. According to a survey compiled by Nua Ltd in 1999, the number of Internet users rose from 26 million in 1995 to 205 million in 1999, an increase of almost 700% (Nua Ltd)! With such an explosive increase, how then has the Internet affected us personally, and how has it affected the way we do business? The answers to these questions include changes in the way people obtain information, interact, work, learn and conduct business.Given the Internet’s original purpose is to share information, it is no wonder that the most important asset of the Internet is the wealth of information that can be found on the Internet (Maney 3).
Advertising Spend: The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their bottler’s. The average advertisement spending per point of market share in 2000 was 8.3 million (Exhibit 2). This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility.
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
To help these businesses, a more appropriate or better marketing plan needs to be designed. Small business internet marketing services can help businesses develop and thrive in a highly competitive market. For the highest quality internet marketing services, hiring an online marketing company to design a customized internet marketing campaign may be advantageous for some businesses (EStartup business blog and contributors, 2010). Identifying the role that marketing plays in a successful business is demonstrated by the use of two examples, the importance of developing a marketing plan, and ethical and legal issues that surround marketing practices (EStartup business blog, 2010). To be a successful business, the owner of the business should use the marketing mix and the results of market research; having identified its key audience a company has to ensure a marketing mix is created that is targeted specifically to those people.
Digital marketing is a growing field that “promotes products or brands via one or more forms of electronic media.” Examples of “advertising mediums that might be used as part of the digital marketing strategy of a business could include promotional efforts made via the Internet, social media, mobile phones and electronic billboards, as well as via digital and television and radio channels” (businessdictionary.com) This method of advertisement makes a digital marketing analyst necessary to help navigate a company through the proper marketing channels.
Advertising has been round for centuries; starting with print ads, then evolving into radio and TV adverts. Each form of advertisement requires several different strategies in order to make the advertisement effective and appealing to the consumer. With the ever popular rising of the usage of the internet, online advertisements have also become more popular. According to Dr. David Evans, who received his Ph.D. in Economics, e-commerce, or sales processed online, were equal to 34 billion dollars as of 2008. (Evans, 2) This amount has only grown and will continue to grow as the usage of the internet becomes more and more popular. The heart around this monumental sum of revenue is online advertising. Advertising agencies optimize their online
In the 1990s direct marketing became the most important tool in the mix because technology had enabled a form of communication by appealing directly to the target customer. This change led to new media formats, and the subsequent development of the Internet. Digital technologies have accelerated change in the marketing communications
Internet marketing is a reliable tool and affordable. It is easy to introduce a product and brand through internet. It is easy for marketers to work on internet marketing. They can show a better thing to consumers in less time and cost. (Jamie Swartz)
So what is Internet Advertising? Internet Advertising is a way of marketing services or products on the World Wide Web. This can be done through search engine o...
The Internet has played a crucial role in the changes in the ad industry. Our society lives at a constant moving fast pace which the Internet accommodates. Through the Internet business have access to consumer information through their searches and are able to customize their ads towards a specific audience. An example consists of looking up cars on cars.com and later on going on amazon to buy something. Looking on the side while on amazon.com you would see ads from cars.com about the cars you were searching. Internet surfers can interact with ads in greater capability, which allows them to benefit directly from the ads personalized message. This is important for ad agencies to continue in the future. Studying the market in which people surf the web and providing specific ads that...
The Internet has become a key ingredient of strenuous and busy lifestyle. ‘Internet’ has become the central-hub for communication, explorations, connecting with people or for official purposes. Resultantly, Internet growth has led to a plethora of new developments, such as decreased margins for companies as consumers turn more and more to the internet to buy goods and demand the best prices.
This paper includes the process of online business; how to sell a product, advertising, various ways to create awareness and how to become a reseller. Laws and conditions for an online business.
growth in usage by both consumers and businesses. The unique capabilities of the Internet has captured the attention of the marketing community. While a growing number of companies have or are interested in developing an Internet presence, there is still a great deal of uncertainty about it and the potential ethical issues associated with its use as a marketing medium. Although many businesses are acknowledging the importance of a Web site, but the potential ethical issues related to marketing on the Internet still having an uncertainty in this situation. Much less attention has been given to the business community's perceptions of the ethicalness of this new medium. The unique interactivity of the Internet has captured the marketing community's interest as a way to develop and enhance customer relationships and establish greater brand identity. Thus, many commercial services have become available on the Internet that allow consumers and organizations to interact electronically. These services include booking airline tickets online, buying books and compact discs, and receiving stock market information. Although the number of consumer users and commercial organizations navigating on this "information superhighway" is growing almost exponentially, the benefits of the Internet are not without drawbacks.