Elements of Internet Marketing
The Marketing Mix
Internet Marketing Tools
Interactive Order Processing
E-Commerce describes any business to consumer transactions that take place partly or solely online and is not limited to the purchase of physical products from a website – although that does make up a key component of most e-commerce businesses. Some services or products are sold purely online while other companies may have physical stores or headquarters in addition to their online presence.
E-Business describes any business to business transactions that take place online. For example a Web Design company often doesn’t sell products directly to consumers, but instead creates websites as a service for other companies, which will in turn be used to sell products or services to consumers.
The internet has revolutionised the way companies do business. The shift in the way people shop has had a big impact on both the micro environments - the individual companies and their direct stakeholders; and the macro environment – politics, economy and society as a whole. “The death of the high street” has been an obvious effect of these changes with many stores shutting down.
Those who fail to keep up with these changes will be more likely to feel the negative consequences – as was the case with HMV and Blockbuster, who were forced into administration as competing online services took over their market share.
For those who do keep up however, business is booming. iTunes, Amazon and Netflix are Blockbuster’s and HMV’s online equivalents and all three have billions of users from all around the globe.
While the amount of jobs available in retail positions has been on a steady decline over recent years the demand for skilled workers in the IT sector is bigger than ever – so much so that there is a shortage of candidates and many roles go unfilled. A report issued by the government regarding the UK cyber security strategy highlighted that the “current and future ICT and cyber security skills gap” was a “key challenge” in implementing the strategy. (National Audit Office, 2013)
To address this problem the education system needed to be changed, as of 2014 children as young as 5 will be learning advanced computing as part of the curriculum. Higher Education institutes will also likely have to reassess their course material to accommodate the new generation of students who will be leaving school with more in depth knowledge of computer systems and software development.
Consumers gain many benefits from e-commerce, they now have the choice of shopping from an almost unlimited choice of companies from all around the world. Comparing prices and finding out what other customers thought of a product is also made much easier by the internet.
The change in peoples shopping habits has changed the way companies advertise, huge marketing budgets for prime-time TV commercials are no longer the only way to get noticed and the potential audience is now global.
Elements of Internet Marketing
Traditional styles of advertising such as TV, newspapers, magazines, billboards etc are based on an “interruption” model. A show is interrupted by TV advert; music is interrupted by a radio advert; the flow of an article is interrupted by a magazine article, etc. This style of advertising persisted and still exists today in many places – but more and more companies are realising that demanding a customer’s attention in this way online does not yield good results. Some elements of internet marketing are examined below.
Organic search results account for a significant percentage of internet traffic. (The actual number is hard to measure for reasons discussed in the “Internet Marketing Tools” section on page 11). Regardless of the...
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Fancy Formatting, Fancy Words = Looks Like a Promotion = Ignored
JAKOB NIELSEN September 4, 2007
72% of Online Adults are Social Networking Site Users
OANNA BRENNER, AARON SMITH August 5, 2013
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