This assignment is based on the internet marketing and its impact on the businesses. Here it will be discussed the various ways of marketing and their significance. As we progress it will be explained what is the importance of marketing, what are the marketing tools and how can they be used effectively to compete today in this modern era of global marketing.
In this assignment we will examine the use of the internet and WWW that has formed the platform for the new e-marketing revolution. The assignment will also assess and analyse the technological developments that are taking place with respect to marketing and business. This discussion focuses on the impact, applications, and implications of these technologies with regard to marketing practices and processes rather than an analysis of the technologies themselves.
The world wide web possesses unique characteristics which makes is distinguishing from the traditional commercial communications environments. It presents a fundamentally different environment for marketing activities than traditional media which has transformed the conventional marketing activities. This paper will discuss how the changes in marketing portend an evolution in the marketing concept and argue that in order for marketing efforts to be successful in this new medium, a new business paradigm is required.
In this report it has been tried to find out the relationship between a business sales and the marketing. This report not only talks about the various types of marketing but also gives a fair amount of idea on- why we can conclude and consider a particular method of marketing as an effective tool. This report has been based on several survey , researches, secondary data and interviews.
Marketing is defined as the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organisation objectives .According to The Chartered Institute of Marketing: 'Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably'. Whereas the American Marketing Association defines Marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives'
This is the traditional way of marketing but today the marketing is based on latest computer technology as it is all around and influences every area of our lives. The latest development and technologies like World Wide Web, internet, e-commerce, databases and their applications such as data mining and data fusion have over masked the traditional method of marketing. The internet is the global network of computers connected through cables and telephone lines. This internet get originated during the cold war by the Americans with the concept of packet switching coming in use. This internet resulted in the development of the latest technology like email and the WWW ( world wide web) concept and this www concept brought a boom in the marketing field. Today electronic commerce is taking preference over the real commerce and this has a big impact on the internet marketing.
The 21st century is the century of technology which is changing every minute and so the technology is being outdated every minute by its replacement. The technological advances supersede the existing product types and forms and so the product life cycle of many products are moving ever faster. This has been a big challenge for the marketing. This development has created the pressure on the marketing to capitalise on and exploit the business opportunities brought by this new technology and organisations are forced to adapt this new technology to survive.
Importance of marketing.
As we know that there is only one definition to business : to create customers and it is the customer who determines what the business is . Therefore any business has two basic functions and they are Marketing (customer orientation) and innovation. This quotation came from Peter Drucker in 1973 and this is has been an important to all the businesses. Since the 1980s many bigger companies have recognized that the key to success is the need to evolve from a production and cost dominant stance, towards one of servicing a diverse range of customers through personal contact. This process creates a relationship formation between customer and the business.
As the strategic perspective of companies has changed from regional thinking to global thinking, the selling model is hanging from a 'transactions' focus to a 'relationship' focus. These are all possible only through marketing as marketing creates opportunity to innovate new products and today it has been the root of success of the whole businesses. Internet marketing has been the best way of marketing today as it reaches to the global world in no time and cheaper than the other ways of marketing. Because of the latest development of the internet and www boom people use internet every now and then and so this is the way by which they can be persuaded.
Impact of E-commerce on the companies.
An e-commerce system is a conglomerate of applications powered by the Internet, the World Wide Web, and other innovations. These applications employ various information appliances, offer various backend transaction processing and information access services, and run on a web of interconnected private and public networks. Complex interfaces between various applications interplay to fulfill a discrete e-commerce business objective.
E-commerce initiatives are proliferating in virtually all aspects of the socioeconomic environment. Innovation in computing technologies has extended the reach of e-commerce transactions into: business-to-business, business-to-consume and intraorganization business processes
E-commerce also offers businesses to reduce the overhead costs because a company that does the business on the internet will not have to spend the same amount of money on buildings and customer service when compared to business that do not use e-commerce.
E-commerce not only benefits a business but it also benefits consumer equally. It provides convenience to the shopper. An internet shopper can use their PC at anytime on any day to make their purchases. They don't need to wait in long ques in the stores but can make the desired purchase without traveling by just entering their credit card and the shipping details while waiting their purchase to arrive at the doorstop. So they save time and money. Regular customers benefit more if they make purchase from the same business because their credit details are saved on the system and they don't need to input the information again and again. Due to the lower cost and lower overhead, Amazon.com has become one of the largest bookstores in the world doing business without buildings, sales staff, inventory, and other overhead costs.
Although there are lots of benefits from e-commerce, it faces many challenges. The most important challenge it faces is the ability to guarantee customers privacy. Consumers are always under fear that their credit card details will be seen by the third party and hence like to make purchase over the phone. To deal with these concerns many online companies have begun to use secure servers which encrypts the data that is sent via the phone lines so that the information cannot be intercepted by an unknown party.
The whole e-economy will be benefit from the e-commerce. Other sectors benefiting will include Banks to work as payment gateways, Courier companies for delivery of the product, Advertisers on the website ( football fans will visit the sport website and advertisers can catch the target). E-commerce has also opened new employment opportunities.