Chapter 8 Internet market promotion 8.1 Introduction, category and function of Internet Marketing 8.1.1 Internet marketing conception and characteristic 1. Internet marketing What is Internet marketing? Internet marketing or Internet-based marketing can be defined as the use of the Internet and related digital technologies to achieve marketing objectives and support the modern marketing concept. These technologies include the Internet media and other digital media such as wireless mobile media, cable and satellite In practice, Internet marketing will include the use of a company web site in conjunction with online promotional techniques such as search engines, banner advertising direct e-mail and links or services from other web sites to acquire new customers and provide services to existing customers that help develop the customer relationship. However, for Internet marketing to be successful there is a necessity of integration with traditional media such as Print and TV 2. What benefits does the Internet provide for the marketer? The marketing opportunities of using the Internet can be appreciated by applying the strategic marketing grid for exploring opportunities for new markets and products. The Internet can potentially be used to achieve each of the four strategic directions as follows 1)Market penetration. The Internet can be used to sell more existing products into existing markets. This can be achieved by using the power of the Internet for advertising products to increase awareness of products and the profile of a company amongst potential customers in an existing market. This is a relatively conservative use of the Internet. (2) Market development. Here the Internet is used to sell into new markets, taking advantage of the low cost of advertising internationally without the necessity for a supporting sales infrastructure in the customers'country. This is a relatively conservative use of the Internet but it does require the overcoming of the barriers to becoming an exporter or operating in a greater number of countries the(3)Product development. New products or services are developed which can be delivered by Internet These are typically information products such as market reports which can b purchased using electronic commerce. This is innovative use of the Internet 8.1.2 Internet marketing classify New products are developed which are sold into new markets. Companies can use the Internet to adopt new approaches to selling products which involve positioning in one part of the grid presented. The Internet provides Guinness with the opportunity to provide non-core merchandising activity at a relatively low cost The lure of new sales and the threat of market share erosion has driven many companies on to the Internet, but there are many other benefits of establishing an Internet presence. Consider the example of the parcel courier companies. These companies now provide a range of customer services over the Internet which were traditionally delivered by telephone operators, thus reducing operating costs. In such situations, the online services may give better 24 hour, 7days a week, 365 days of the year customer service if measured by convenience, but some customers will want the option of the personal touch, and phone services must be provided for this type of customer. Many companies will also reduce the costs of the printing and distribution of promotional material, price lists and other marketing communications. In addition to increased sales and reduced costs, the Internet can be used to advantage in all of the marketing functions, for example (1)Sales: Achieved through increasing awareness of brands and products, supporting buyingChapter 8 Internet Market Promotion 8.1 Introduction, category and function of Internet Marketing 8.1.1 Internet marketing conception and characteristic 1. Internet marketing What is Internet marketing? Internet marketing or Internet-based marketing can be defined as the use of the Internet and related digital technologies to achieve marketing objectives and support the modern marketing concept. These technologies include the Internet media and other digital media such as wireless mobile media, cable and satellite. In practice, Internet marketing will include the use of a company web site in conjunction with online promotional techniques such as search engines, banner advertising, direct e-mail and links or services from other web sites to acquire new customers and provide services to existing customers that help develop the customer relationship. However, for Internet marketing to be successful there is a necessity of integration with traditional media such as Print and TV. 2. What benefits does the Internet provide for the marketer? The marketing opportunities of using the Internet can be appreciated by applying the strategic marketing grid for exploring opportunities for new markets and products. The Internet can potentially be used to achieve each of the four strategic directions as follows: (1) Market penetration.The Internet can be used to sell more existing products into existing markets. This can be achieved by using the power of the Internet for advertising products to increase awareness of products and the profile of a company amongst potential customers in an existing market. This is a relatively conservative use of the Internet. (2) Market development.Here the Internet is used to sell into new markets, taking advantage of the low cost of advertising internationally without the necessity for a supporting sales infrastructure in the customers’ country. This is a relatively conservative use of the Internet, but it does require the overcoming of the barriers to becoming an exporter or operating in a greater number of countries. (3) Product development. New products or services are developed which can be delivered by the Internet. These are typically information products such as market reports which can be purchased using electronic commerce. This is innovative use of the Internet. 8.1.2 Internet marketing classify New products are developed which are sold into new markets. Companies can use the Internet to adopt new approaches to selling products which involve positioning in one part of the grid presented .The Internet provides Guinness with the opportunity to provide non-core merchandising activity at a relatively low cost. The lure of new sales and the threat of market share erosion has driven many companies on to the Internet, but there are many other benefits of establishing an Internet presence. Consider the example of the parcel courier companies. These companies now provide a range of customer services over the Internet which were traditionally delivered by telephone operators, thus reducing operating costs. In such situations, the online services may give better 24 hour, 7days a week, 365 days of the year customer service if measured by convenience, but some customers will want the option of the personal touch, and phone services must be provided for this type of customer. Many companies will also reduce the costs of the printing and distribution of promotional material, price lists and other marketing communications. In addition to increased sales and reduced costs, the Internet can be used to advantage in all of the marketing functions, for example: (1) Sales: Achieved through increasing awareness of brands and products, supporting buying