Marketing vs e-marketing

by Prasanna Perera

The term Internet marketing is used very loosely, and a search for the phrase Internet marketing, provides numerous definitions and results.

The interpretation varies considerably, from creating a simple web page, to sending emails for free, and to marketing and selling products and services on the Internet.

However, to simplify things, let us consider Internet marketing, as the process used by a company, to market their products and services, and also themselves on the Internet. Let us briefly consider the differences between conventional marketing and Internet marketing.

The Internet market is borderless, whilst the conventional market is classified by geography and location. Customer feedback is immediate in Internet marketing. In conventional marketing it is a relatively slow process, as we have experienced. On the Internet, marketing is 24hrs a day, 365 days a year.

Traditional marketing on the other hand, is very definitely restricted by time and space constraints. Because of the immediacy of response, effectiveness of marketing efforts can be easily monitored through Internet marketing.

In traditional marketing, tracking the effectiveness of marketing efforts, is somewhat more difficult. When marketing costs are considered it is widely believed that Internet marketing costs are relatively lower than conventional marketing costs.

Conventional marketing is practised through certain accepted principles. However, the rules and principles of Internet marketing are still being developed/created. When implementation is considered, lead times are virtually non-existent in Internet marketing, which is simply fantastic. On the other hand, to carry out conventional marketing, you require a dedicated marketing team. In Internet marketing, the marketing team will have to work together with the technical team to achieve best results.

Many people refer to the Internet as the "virtual world". Business organisations, can explore many opportunities in this virtual world, at a very low cost. Further, business units can also be set up on the Internet, which can be accessed by anyone, anywhere, anytime.

The traditional 4 P's i.e. Product, Price, Place, Promotion have become religious to marketers. However, these 4 P's will change in emphasis, when Internet marketing is considered.

The product on the Internet is experienced by an user electronically in terms of text images and multimedia. Tangible goods are provided in a detailed catalogue format online, that the users can browse through.

Online catalogue have an edge over brochures, since they offer multimedia abilities, i.e. the customer can experience an audio presentation or even see the product in action.

Space is not a constraint on the Internet and this allows for offering the consumers an amazing range of products, across and within categories.

Price is one element of the marketing mix, that has been drastically changed on the Internet. Users expect the Internet to offer them great benefits, mainly in terms of discounts and free give always etc. Price has become such an important determinant of buyer choice on the Internet.

The Internet has become a virtual buyers market with buyers deciding what products they want, when they want it and at what price. These predictions have become reality in Priceline.com, which is an Internet website and is a classic example to the new approach of buying on the net.

With regard to the 3rd P of marketing i.e Place, this traditionally involves, choosing the right marketing channels and intermediaries, to reach the customer. However, on the Internet things work differently.

The Internet by its very nature, becomes a direct marketing channel affording an opportunity to the manufacturer, to reach the consumer directly. Further the consumer is afforded the opportunity, to buy directly from the manufacturer as well. By eliminating intermediaries, producers have opportunities to provide additional discounts to the end consumers.

The Internet address a company has on the website, is an important distribution tool, because customer will habitually access the site by key-in.

In fact companies are using the internet, as an additional marketing/distribution channel, together with their traditional channels. Consumers prefer to by online, because it is convenient they could shop at their leisure and also search for the best prices and deals. As such the Internet becomes the perfect distribution/communication channels for them.

With millions and millions of web pages, it is absolutely important to make buyers aware of what companies offer on the Internet. This brings us to the 4th P, which is Promotion and a company has to promote its website aggressively. Promoting a website will draw people to the site and thereafter sellers can promote their products and services.

As in the case of traditional promotions, understanding your target audience is equally important on the Internet. Focused promotions on the Internet, will provide rewards such as global reach relatively lower communication cost and improved awareness and visibility.

In order to launch an effective web marketing campaign, the company should develop an Internet marketing plan. Internet marketing involves a lot of effort and promotional spend, on branding and advertising the new website.

Like in the case of any marketing effort, continuous monitoring of customer responses on the website and making improvements, will be essential towards customer satisfaction.

The most crucial step involves integrating Internet marketing with the conventional marketing mix. People believe that Internet marketing will replace traditional marketing.

This may not be the case, but it is essential that Internet marketing should support traditional marketing, so that the effectiveness of marketing as a discipline can be improved.