The internet has a lot of potential as a commercial medium. However, managers still don’t have the measuring tool to figure out if Internet marketing will work for their benefits. They have to risk investing on internet marketing and possibly even compromise their other offline marketing methods. This paper, which suggests that the Internet be used like a store front, where goods and services sold online are given directly to the consumers, is written by Melody Kiang, T.S. Raghu and Kevin Huei-Min Shang. You can get the pdf of the behavioral targeting here: Marketing on the Internet – who can benefit from an Online Marketing Approach?
It is very important for managers to decide which marketing channel they will use. Marketing channels can be divided into two categories: indirect marketing and direct marketing. Some managers choose indirect marketing because they don’t have the money to pursue direct marketing, they want to focus on the core business, and sometimes using direct marketing can lower cost-effectiveness. Choosing the right channel can be determined by investigating various factors, and since internet marketing has the same characteristics as other channels despite being relatively new, these factors can be used for evaluation as well.
Importance of Internet Marketing
There are several benefits of internet marketing based on three channels. First, as a communication channel. Internet marketing in this regard has the edge of interactivity compared to other channels. It also helps build relationships and organizes, communicates and gives access to information. As a transaction channel, internet marketing gives your business an edge in visibility and allows you to reach more base customers. It can also give you a great ability to customize sales and promotion. As a distribution channel, operating and commission costs are reduced, and avoid such costs as space rental, among others. These are just a few of the advantages of internet marketing discussed in the paper.
Aside from the traditional factors that are used to assess which channel to choose for internet marketing, four new factors should be considered. These four factors are ease of value addition to the product, order complexity, specialty of goods, and convenient location. Examples of factors that are traditionally included for all other forms of marketing include the following: logistics, after-sales service, and product quality assurance.
Internet Products/Services Classification
The products and services that are sold in the Internet vary tremendously, but they can be classified into search goods and experience goods. For search goods, only external information is needed to evaluate them properly, whereas personal evaluation is needed for experience goods. Search goods are more ideal for Internet marketing. Furthermore, these goods can also be classified into three dimensions. Cost and frequency purchase, degree of differentiation and value proposition.
This study proposes another dimension in the mix, and that is transaction complexity. This is especially important for e-businesses, in determining whether the product or service is good for Internet marketing. In fact, the Internet can do a lot in making a transaction easier. Just think about all the time it can save in processing, and the risks of human error is lessened.
Businesses should consider using Internet marketing to stay competitive. It allows businesses to directly contact consumers. However, businesses should be careful, and use product or service characteristics to determine if direct sales through Internet marketing is right for them. This study has shown the important factors that can determine a good’s adaptability to marketing online.