Effects of Internet and E-Commerce in Marketing

Along with the fast development and improvement of the Internet and web service technologies, businesses use search engines, banner advertisements, target communications, paid links, and e-commerce for their marketing needs and profitable opportunities (Hoffman & Novak, 2000).  However, the Internet marketing strategies are various, depending upon the types and nature of the businesses.  Pure-click companies such as Hotels.com, Amazon.com, or Ebay.com launch website as they form their firm while brick-and-click companies such as Chase.com, Kroger.com, or Macys.com added their online website for e-commerce or more information (Kotler & Keller, 2009).  Online businesses, nevertheless, need to focus on providing customer satisfaction and pleasurable experiences to online consumers as they have done in their traditional practices. 

The evolution of Internet forced the changing landscape of traditional advertising methods that became less effective.  Internet enables companies to create a strong bond relationship with customer that strengthen the customer loyalty (Szmigin, Canning, & Reppel, 2005).  Conversely, as mass communication has been transformed, the consumers involve much more on the interaction and conversation with communities and businesses in the market’s forum (Prahalad & Ramaswamy, 2004).  Additionally, the trend of globalization is increasingly proved as companies use the Internet for their vehicle to reach the international market.  Social network website is another advantageous resource for online business and marketing strategies.  Social networking sites such as Facebook, LinkedIn, YouTube, WorldPress, and Twitter provide video promoting, email sending, personal blogging, and advertising as an enabler of the growth of Internet marketing.

Internet marketing is not only influential to retail oriented businesses, but also is effective for service providers and manufacturers by current advantages of the technology trends.  With the rising trend in e-commerce, e-purchasing and e-marketing has grown at a fast pace.  According to Kotler and Keller (2009), smart e-purchasing can save corporations millions of dollars and e-marketing can enable online sales growing at 30% a year.  Because the Internet search engine such as Google and Yahoo, accessing by millions of daily users, provides search technology to companies and sells advertising associated with searching keywords (Sein, 2010), Internet marketing has become much effective than ever.  Internet use is constantly increasing (Lagrosen, 2005), not only for educational, political, and informational purposes, but also for entrepreneurs worldwide.

According to Griffiths and Howard (2008), social network evolution significantly elevates a global reach and multiplies Internet traffic.  Professionals join social network to market their personal brands.  Meanwhile, manufacturers and retailers use social network tools to promote and sale their products or services.  Utilization of social network sites easier targets individual or group of the same characteristic individuals.  Moreover, engaging in individual conversation, social network increases the Internet traffic, which provides more number of visits to the advertised businesses.

E-commerce or online businesses radically changes the whole value chain from the manufacturers to consumers because it allows customers to compare price, leading to the lessening of the power the value chain from traditional retailers used to hold in the form of information irregularity (Griffiths & Howard, 2008).  Kotler and Keller (2009) concerned about the use of channel intermediaries for retailers to compete in the online environment, suggesting three different strategies to gain acceptance from intermediaries such as creating new brands or products on Internet, offering offline stores higher commission, and letting retailers delivering and collecting payment for online orders.  In this light, innovation in the value chain and communication with customers are necessary frameworks to allure “proposition for the sophisticated cross-channel shopper” (Griffiths & Howard, 2008, p.71).

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References

Griffiths, G., & Howard, A. (2008). Balancing clicks and bricks – strategies for multichannel retailers. Journal of Global Business Issues, 2(1), 69–76.

Hoffman, L. D., & Novak, P. T. (2000). Advertising pricing models for the world wide web.  In Hurkley, D., & Kahin, B., & Varian, H. (eds). Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property. Cambrigde: MIT Press.

Kotler, P., & Keller, K. (2009). Marketing management. Upper Saddle River, New Jersey: Pearson Prentice Hall

Lagrosen, S. (2005) Effects of the internet on the marketing communication of service companies. Journal of Services Marketing, 19(2), 63-69. doi: 10.1108/08876040510591376

Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 6-14. doi:10.1002/dir.20015.

Sein, L. (2011). Advertising in the age of Google and Facebook. Caribbean Business.

Szmigin, I., & Canning, L., & Reppel, E. A. (2005). Online community: enhancing the relationship marketing concept through customer bonding. International Journal of Service Industry Management, 16(5).

About Phat Pham

I don't have money to share, but I do have a desire to transform our society, starting from the workplace and the local community I serve.
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One Response to Effects of Internet and E-Commerce in Marketing

  1. Susan Pham says:

    This is a great article, bro! I’d love to shop online at brick-and-click companies, since i can bring my stuff back to their stores for return or refund anytime without having to ship it back to them, albeit companies such as amazon.com provide excellent services!

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