Application of Internet Marketing as a Customer-Oriented Marketing Approach in New Economy

Topics: Marketing, Customer relationship management, Customer service Pages: 9 (3001 words) Published: June 10, 2011
Application of Internet Marketing as a Customer-Oriented Marketing Approach in New Economy Rashad Yazdanifard1
Faculty of Management, Multimedia University, Cyberjaya, Malaysia

Azade Dehghan Pour 3
Center of Post Graduate Studies, Limkokwing University of Creative Technology, Cyberjaya, Malaysia

Wan Fadzilah Wan Yusoff 2
Faculty of Management, Multimedia University, Cyberjaya, Malaysia

Ludovic Froget4
Center of Post Graduate Studies, Limkokwing University of Creative Technology, Cyberjaya, Malaysia believed that since consumers with more knowledge will feel more powerful the enterprises‟ competitive focus will therefore be rearranged towards consumers' subjective valuations. Enterprises today are confronted by a shift from mass production to a customer-driven economy [7]. This article elaborates on the internet as a means of customer empowerment. We will then highlight the new ways for approaching the empowered customer by discussing customer advocacy, customization and personalization. This will be followed by an approach on the impact of customer empowerment on the 4P‟s classification and finally we will elaborate on consumer empowerment as an enduring structural change. II. INTERNET AS A MEANS OF CUSTOMER EMPOWERMENT The internet in many ways has become a daily reality for over a billion users worldwide[1]. The youth and welleducated individuals world-wide, regard internet as the natural source for finding information [8]. According to Schibrowsky, Peltier and Nill[9] the number of websites increased from 23,000 in 1995 to over 55 million in 2005. Statistics of internet driven sales over this period are also meaningful: in the US it has grown from an insignificant amount in 1995 to $50 billion in 2004 and it is expected to rise at an annual rate of over 20%. In 2008, a Global Nielsen survey brought to attention, the fact that 85% of the global population has, at least once, purchased products and services online resulting in the number of Internet shoppers going up by 40% in two years[6]. The internet is transforming "information scarcity" into "information democracy" or "transparency"[2]. According to Constantinides[1] transparency and abundant information, more alternatives and choice, easy contacts and business deals and control over the transaction process made possible by exploiting the Internet as a market place has changed the power structure of the markets. The increasingly informed and educated consumers have gained more power to negotiate and voice their opinions [1].

Abstract– Internet marketing is a hot topic for researchers in the marketing field due to the ubiquity of the internet in the new economy and especially because of its increasing roles on various markets and industries. In this paper we try to explain how internet marketing is applied as a customeroriented approach of marketing in the new economy. This article is based on a literature review that highlights the intimate relationship between internet marketing and customer-oriented concepts such as customer advocacy and customer empowerment. Keywords - Internet Marketing, customer power, customer empowerment, customer advocacy

I. INTRODUCTION Market dynamics have been continuously changing as a result of fast transformation of information and communication technologies (ICT) combined with significant developments on the socio-economic, political and demographic landscape. Consumer behavior is a domain that has been undergoing major transformation over the last fifteen years[1]. According to Pires, Stanton and Rita [2] and Constantinides[1] market power traditionally held by the producers/sellers has migrated towards the consumers/customers. "The customer is becoming the center of the entire business universe," Port [3]. On April 2005 the weekly The Economist, under an article titled "Crowned at Last", explained how technology has...
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