Business Models, Advantages and Limitations of Internet Marketing
The methodology of marketing the products and services over the World Wide Web is known as internet marketing
. Internet marketing fastens together the technical and creative aspect of internet and includes designing, development, advertisement and sale. It is also known as web marketing, e-marketing, i-marketing or online marketing.
There are different business model associated with this:
o E-commerce: This approach consists of selling goods and services directly to consumers or to businesses based on business to consumer (B2C) or business to business (B2B) models respectively.
o Affiliate marketing: In this technique, one person develops the product or the service and this is sold by other active sellers for some share of profit. For the same purpose, related marketing material such as sales letter, tracking facility, affiliate links, etc. are generally provided by the product owner.
o Lead based web sites: Here, the organisation generates value by attaining sales leads from its web sites and publishing or sale of advertising, one to one approach, geo-marketing and geo-location depending on the individual requirements.
Internet marketing provides number of advantages to businesses as well as to consumer.
o Marketing through internet is cost effective. Organisations can reach to extensive audience in a small portion of traditional marketing budget.
o Internet marketing has greater capabilities to spread the information to global audience.
o This marketing technique allows customers to research and buy the product or service according to their own convenience.
o Instant response is unique benefit one can get through internet marketing.
o It not only includes the digital media like e-mail, internet, and wireless media but also refers to the management related to electronic customer relationship management and management of customer data digitally.
o The medium has benefit of easily measuring statistics. All aspects of campaign through internet marketing can be easily traced, measured and tested and it therefore helps in determining the most appealing offers.
However there are some limitations and security concerns attached with internet marketing.
o This tactic requires consumer to use the latest technologies rather than the traditional media.
o Tangible goods offered via internet marketing can not be touched, tasted or smelled by the shoppers. However, there are some industry standards exist which reassure consumers through return policies and in-store pick up services.
o One major concern that customers have is whether they receive exactly what they paid for. To overcome this problem, online merchants have invested in building strong consumer brands on sites like eBay, Amazon.com, Overstock.com, etc. with e-commerce solutions.
o Sometimes the low speed internet connection becomes the barrier. If one is connected through mobile device or through dial up connection, the big and complicated web sites cause delays in content delivery to the consumer.
o Some consumers hesitate to purchase product from internet due to leakage of their personal information. Yet there is option of opting-out which removes information from database but not all the people are aware of that. Now there are some payment options in which you do not need to give your credit card details instead the payment gateway maintains your transactions with the help of your email id only.
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