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Online marketing

What is Online Marketing?Online Marketing is the marketing of products or services over the Internet & it ties together creative and technical aspects of the Internet, including design, development, advertising and sale

Online marketing is used by companies selling goods and services directly to consumers as well as those who operate on a business to business model

2Methods and Channels

Email Marketing

Email marketing is promoting products through the use of email

There are 2 main ingredients to an effective email marketing campaign

They are to build a large list of people you can email and to write great emails

The emails should be packed with free value and they should move people to buy what youre trying to sell

BloggingYet another but important and crucial marketing trend that has brought a huge aberration in our society

Blogger was launched in 1999 by three friends. Blogging as an ardent marketing tool has really blossomed in the last some years

Businesses, companies and even superstar now use blogging system for huge promotion

Pay per Click MarketingA company has to pay for PPC ads.The company target certain words and then when those words are searched for on a search engine such as Google the ad of the company will appear. But company do have to pay every time the ad is clicked on.

Social Media Marketing

Social media is very popular right now and its only getting more popular

one can tap into that popularity by using social media to sell your products

One should not SPAM people. In fact, it shouldnt use any social media to directly sell anything

Just use social media to direct people to other sites where one can then hit them with a sales pitch

DIGITAL MARKETINGWith regards to the Internet, this is the promoting of brands using all forms of online digital advertising channels to reach consumers

This includes video channels, Internet Radio, mobile phones, display or banner ads, digital outdoors, and any other form of digital media.

Viral MarketingMarketing techniques that use social networks to produce an increase in brand awareness or achieve other marketing objectives (such as product sales) through self-replicating viral processes.

It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Viral promotions may take the form of video clips, interactive Flash games, ebooks, images, or even text messages.

AIDA Model

Applying the AIDA Model to Online Marketing

A AwarenessInitial point where your brand and/or business is recognised and acknowledged. I InterestGenerating thoughts and discussion about your brand. D DesireCommunicate your messages through the use of social media and email marketing. A ActionThe stage where the conversion is complete and back to the 'interest' stage to retain them. Your website is responsible for this stage. How the Online Marketing Industry Is Impacting Local Businesses

Grow from $27.1 billion in 2011 to over $42.5 billion in 2015

The search engine marketing industry is projected to reach over $22 billion by the end of 2012, a 19 percent increase from $19.3 billion last year

74 percent of small businesses find online networking to be just as valuable as 58 percent reporting they struggle to find value in using Facebook to promote their brand or don't have a page at all number of companies struggling to take advantage of online resources

Marketing StrategiesPull marketing:Websites and blogs are pull strategiesBuild websites & BlogsCompanys social media profileslong-term success the company tries to draw in customers through different kinds of advertising, such as TV ads, online banner ads and social mediaOnline banner ads, and radio and TV ads are other forms of pull marketing.

Marketing StrategiesPush Marketing:Email CampaignCertain offers through your social media profilesCompanies may push information and promotional material directly to end users through email or fliers to generate demandCreate an email database of potential customers and send them product announcements and promotions directly

Advantages Of online marketingOne to one approachCater to specific interestsDifferent content by choiceGeo- marketingRelatively inexpensiveGlobal businessMeasuring statistics is easyAccountabilityDisadvantagesIllegal or unethical practices

Physical demonstration and needs to be tangible

Transparency

Cost of Hardware

MARKETING FUTURE

Clearly, the strengths of the Internet as a marketing medium far outweigh the negatives

Companies grappling with the issue of whether to market via the Internet are already behind

Companies attempting to build a coherent Internet marketing strategy must begin to believe that the Web is likely to be the center of their marketing future, not simply an adjunct to traditional marketing methods

Interactive marketingevolving trend in marketing whereby marketing has moved from a transaction-based effort to a conversation.Facilitated by internetbut, different from online marketingInteractive Marketing allows customers and prospects to participate in the process of building a brand's image in a certain market or target group's mindsInteractive marketinginteractive marketing uses internet technology to address the customer and maintain a database of customer preferences.makes use of e-mail messagesAdvantages of interactive marketingCustomer relates to the product in a much deeper wayThe company makes the customer feel important, which is a huge ego boost.Use of internet makes sure that the data is highly reliable in nature.The marketer is guaranteed a sufficiently large potential customer base.The marketer can gauge the responses immediately just by having a look at the number of hits on the website.Industrial or B2B marketingMARKETING OF GOODS AND SERVICES TO:CompaniesGovernment BodiesInstitutions (i.e. hospitals)Non-Profit Organizations (i.e. American Red Cross)FORUSE IN PRODUCING THEIR PRODUCTS AND/OR TO FACILITATE THEIR OPERATIONSGoods or services are sold for any use other than personal consumption

B2B versus B2C MarketingCharacteristicB2B MarketB2C MarketSales volumeGreaterSmallerPurchase volumeGreaterSmallerNumber of buyersFewerManySize of individual buyersLargerSmallerLocation of buyersConcentratedDiffuseBuyer-seller relationshipCloserMore ImpersonalNature of channelMore directLess directBuying influencesMultipleSingle/MultipleType of negotiationsMore complexSimplerUse of reciprocityYesNoUse of leasingGreaterLessKey promotion methodPersonal SellingAdvertisingBUSINESS TO BUSINESS: IT IS ALL ABOUT DEMANDDERIVED DEMANDThe demand for a companys products comes from (derived) the demand for their customers products.Most demand comes from consumers.

JOINT DEMANDTwo products are used together and demanded together Both products are consumed at the same timeMajor Uses of B2B ProductsFor additional production (e.g., components are combined into subassemblies and become part of the finished product)For use in operations, but not part of the finished productFor resaleInternational marketingInternational marketingThe process of planning and conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations

Opportunities/challengesIntegrate global knowledgeExpand long-run productionLengthen and rejuvenate product life cyclesCompetitive supply chainsSome challenges faced in international marketing-International logisticsSmall business mindsetPolitical and economic stabilityIncreased competition

Motivations to go abroad

Competitive pressuresOverproductionDeclining domestic salesExcess capacitySaturated domestic marketsProximity to customers/portsProfit advantageUnique productsTechnological advantageExclusive informationTax benefitEconomies of scale

Entry StrategyDirect exporting/importingIndirect exporting/importingLicensing and franchisingForeign Direct InvestmentJoint venturesStrategic AlliancesContract manufacturing

CHARACTERISTICS OF THE B2B MARKET

GEOGRAPHIC MARKET CONCENTRATIONBusiness market more concentrated than consumer market. Geographic concentration decreasing as Internet technology improves.SIZES AND NUMBER OF BUYERSBusiness market has smaller number of buyers than consumer market.Many buyers are large organizations, such as Boeing, which buys jet engines.THE PURCHASE DECISION PROCESS Often involves multiple decision makers, is more formal, and may require bidding and negotiations.BUYER-SELLER RELATIONSHIPSOften more complex than in consumer market with a greater reliance on relationship marketing.EVALUATING INTERNATIONAL BUSINESS MARKETSBusiness purchasing patterns differ from country to country.Global sourcing Purchasing goods and services from suppliers worldwide.