What is Internet Marketing?

Internet Marketing is application of Internet and related technologies to achieve the organization's marketing objectives.

Internet Marketing is about.

• Internet is a distribution channel. The Internet can be used as a PLACE to promote a product or service, provide information to prospective customers and to reach different geographical regions and niche markets.

• CUSTOMER centered marketing is the key for success of any organization. Concentrating on customer needs and wants will help a business to satisfy actually to delight its customers more effectively and efficiently. Building close relationships and retaining existing customers is very important because acquiring a new customer is costly than keeping the existing customer.

• Internet marketing is best used in CONJUNCTION with other marketing media. Coordination between online and offline marketing activities is very important.

Internet Marketing Tools

• Search Engine Marketing

  Search Engine marketing is important because 85% of Internet surfers use search engines to find new websites. Research reports show that the majority of online purchases originate from search engines. Top 5 Search Engines Google, Yahoo, Msn, AOL and Ask Jeeves account for 80% of search engine traffic

• E-mail Marketing

  E-mail is the most popular online activity. According to the research findings 96% online users use E-mail. E-mail marketing can be used to drive sales, provide customer service and to build close relationships with the customers. E-mail marketing is a cost effective Internet Marketing tool and the results can be easily measured. We can expect a higher response rate around 10 15% from an in-house E-mail list. If we are to rent an E-mail list from an outside source the response rates will be around 1 %.

• Affiliate Marketing

  This is called the revenue sharing business model. Affiliate marketing is one website (An Affiliate) is promoting another website (Merchant) in exchange for a commission. Affiliate marketing is risk free and cost effective advertising because you pay only for performance. Affiliate marketing enables businesses to reach niche markets in a more cost effective manner.

• Banner Advertising

  Banner advertising was very much popular and click through rates were around 25% when its introduce for the first time in 1994. At present we cant expect a conversion rate above 2 % from a banner advertising campaign (Click through rates 0.5% untargeted banners and for targeted banners between 1-2%). Although the conversion rates are not satisfactory banner advertising still considers as an effective branding tool.

• Viral Marketing

  This is the e term for word of mouth. This medium could be used to spread the word about your business among the target audience. Viral marketing messages receive 5 15% click through rate. 57% say word of mouth or viral marketing is their main source of information about new websites. Hotmail is one of the first examples of Viral Marketing.

• Publicity

  Publicity is about creating awareness, building trust and credibility. Online press release distribution plays the main role in this.