Internet marketing OR Digital Marketing is an emerging trend of executing business functions through the web and mobile. The term itself is not only limited to marketing on internet but various other channels like emails, wireless media are involved in it. Digital customer data and electronic customer relationship management (ECRM) systems are also often grouped together under internet marketing.
Internet marketing includes creative and technical aspects of designing a website, advertising, reaching to customers and generating sales. Organizations are using different ways of reaching out to customers like mobile advertising, banner ads, search engine marketing etc.
The Types of Internet Marketing
- Display marketing – where the company puts their banner ads on a third party website in order to create visibility about their products. Ex: – Naukri.com
- Search Engine Marketing– Promoting websites through search engines result pages.
- Search Engine optimization– Tool to increase visibility of a website on search engines through paid or unpaid services.
- Social media marketing– Marketing of a product through social networking sites like Facebook, Twitter.
- Email marketing– Marketing of a product by sending emails to specific customers.
- Referral marketing– Promotion of a product through word of mouth.
- Affiliate marketing– Marketing strategy to reward affiliates who bring customers through their marketing efforts.
- Inbound marketing– Marketing practices to convert prospects to customers and customers to regular buyers.
- Video marketing– Attracting customers to buy a product by creating videos.
Business models of Internet Marketing
Internet marketing is linked to various business models like
- E-commerce – A product is either sold directly to customers (B2C) or businesses (B2B) or consumer to consumer (C2C) through computer network.
- Lead-based websites – Where an organization generates value by acquiring sales leads from its website.
- Affiliate marketing – Where a product manufactured by one entity is sold by other entities to share profits among themselves.
- Local Internet Marketing – Strategy deployed by a small venture to build long term relationships with customers.
Advantages of Internet Marketing
- It is inexpensive comparing the cost of reaching to the target audience.
- It is easy for the customers to search through products and buy conveniently.
- It brings results quickly.
- Organization can easily do the statistical analysis of all marketing campaigns, trace, measure, and test through the use of an ad server. The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience.
Limitations of Internet Marketing
- It misses the “touch and feel” factor which is very important from the point of customer to buy.
- Indian customers still believe in purchasing by cash. So it’s a big challenge for internet companies to advertise well and focus on their target customers.
Feel free to post your opinions and add more if I missed something! Comments are more than welcome.