By Allen Arnold
According to a study conducted by Nielsen/NetRatings, a premier service
of The Nielsen Company, there are 450 million internet users in 21 countries,
and out of them 250 million people can be termed as active users that is these
users spend on an average more than 10 hours a month on the internet. The study
further reveals that one third of these active users regularly use the internet
to make purchases. Thus, for an astute entrepreneur, all these 250 million
people are potential customers. Now, the big question is how to convert these
prospective customers into permanent customers. The answer is simple 'internet
marketing'.
What is Internet Marketing?
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of renjith krishnan at FreeDigitalPhotos.net
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Business Models
Several business models are associated with internet marketing. However,
the two main ones are business-to-consumer (B2C) and business-to-business
(B2B). In the former case, the products are sold directly to the end customers,
while in the latter case the companies do business with each other. A third
lesser-known business model associated with internet marketing is peer-to-peer
(P2P). Here the individuals barter commodities between themselves.
Formats
In addition to business models, internet marketing is also related to
some formats. For instance, name-your-price, where the customers have the
privilege to choose their price range and then buy the items that fall in that
range. Another format where it finds its place is online auction. Here the
buyers place a bid on the enlisted items. Find-the-best-price is yet another
format that can be associated with internet marketing. In this case the buyer
can search for the website that sells a particular item at the lowest price.
Advantages
From the perspective of an entrepreneur, marketing on the internet is
less expensive as compared to other media like television, radio or print
media. Secondly, the entrepreneur can easily expand into the local, national
and international market. Furthermore, there is no need to spend valuable
resources on the sales force. Lastly, the entrepreneur can easily track his or
her success and thereafter modify it according to their needs. In other words,
internet marketing inculcates a sense of accountability in the advertiser,
which in its turn increases the return on investment.
Now from the customer's point of view, it provides detailed information
about the product. The availability of requisite information making
decision-making process a lot easier for the customer.
Disadvantages
On the downside, it is quite intricate for those entrepreneurs who are
not well-accustomed with the working of the internet. Here written words are
more important than spoken words. The design and content of the website play a
massive role. The entrepreneur may lose his customers if the website is not
properly designed or if the customer struggles to download the information due
to the complexity of the web page. At times, slow internet connections also
make entrepreneurs to lose their money. Moreover, inadequate development of
electronic payment methods also mars the effectiveness of internet marketing
campaigns.
Most customers who avoid buying from the internet do so because firstly
they cannot touch, smell or taste the product before buying, and secondly, they
face problems while returning the product that they don't like. These two
factors also ruin the impact to a great extent.
Security lapse is another snag associated with internet marketing.
Recently, some companies involved in online business have been caught selling
customer information. These incidents prompted many customers to stay away from
online companies. Customers are still hesitant in spite of assurances and
installation of foolproof methods.
Conclusion
Despite the drawbacks, internet marketing is garnering huge profits for
several industries particularly banking and music industries. Flea markets have
virtually perished. Unique items, which were available only in the flea markets
once upon a time, can be found on any online auction sites.
In fact, traditional marketing media as television, newsprint, etc. are
also losing money due to the soaring popularity of online marketing. According
to a report, in the year 2006, US companies spent $17 billion on online
campaigns. If we try to confiscate the drawbacks, internet marketing can prove
to be a potent tool to convert prospective customers into permanent customers
and to engender endless streams of profit.
Allen Arnold
Article Source: EzineArticles.com/?expert=Allen_Arnold
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