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Internet Marketing 18475 Essay Example
Internet Marketing 18475 Essay Example

Internet Marketing 18475 Essay Example

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  • Pages: 7 (3416 words)
  • Published: October 8, 2018
  • Type: Essay
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Computers and the Internet are becoming faster and capable of new and exciting things every day. Through this evolution, businesses have begun to reach out to consumers in new, unprecedented ways. With the amazing growth of users of the Internet, and the enormous growth that is expected to continue, businesses are aware that there is tremendous potential to provide and promote products and services in previously inconceivable ways. Electronic commerce, also known as e-commerce, has reshaped considerably through the capabilities of the Internet. It is through these advances in e-commerce that businesses continue to build new methods of providing consumers and other businesses with products and services in more profitable ways.

E-Commerce

Contrary to popular belief, e-Commerce did not begin with the development of the Internet and the World Wide Web. E-commerce to many people is simply business done through the Internet. However, e-commerce encompasses commerce that is done through any electronic media or electronic platform. E-commerce actually began unknowingly with the development of the 800 number by AT&T. (Komenar) With the development of the 800 number, consumers were provided a new way to purchase, and a revolutionized customer care process through the use of the telephone, and toll-free calling. (Komenar) Any business done through interactive kiosks, automated teller machines (ATM's) or any other electronic means can be classified as e-commerce.

The "New E-Commerce"

The "New E-commerce," as it is sometimes referred to, is e-commerce performed through the Internet. (Zwass, 16) According to Howard Rosenbaum, Indiana University electronic commerce professor, E-commerce throu

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gh the Internet includes "the marketing and planning strategies, consumer behavior and legal and regulatory policies relating to the commercial development of the Internet." (www.slis.indiana.edu) Businesses and consumers first began to come together on the Web with the development of the first popular Web browser, NCSA Mosaic, in 1993. (Zwass) The border-less landscape and potential of the Internet, has fed the e-commerce craze to the state that it is now in. By including the opportunities found on the Internet in its strategy, businesses can benefit from costs being reduced and an increase in accessibility to customers, among other benefits. Consumers benefit through more control being placed in their hands through middlemen being reduced, which lowers prices and through the availability of more choices and information only a click of the mouse away. Consider this fact, according to a study done by the United States Government, using the internet, it only costs about 1 cent to conduct a banking transaction. If handled by a teller at a bank, the cost is more than one dollar.(www.ecommerce.gov) Businesses large and small have the ability to create a worldwide presence by creating a web page and providing product information, or the ability to purchase products on-line. There are many estimates of the "Internet Universe" which is the number of people with access to the Internet. Current estimates range from approximately 119 million (NetResults,1/00) to 304.36 million people with online capabilities worldwide. (Nua Internet Survey)

(www.nua.ie/surveys)

With the potential to reach such a large amount of consumers, it is not surprising to find that 60%, or 3 in 5 U.S. companies are currently using

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e-commerce in some way, and 4 of 5 firms claim that they intend to utilize e-commerce in the future. (NABE Survey)

With such interest, Internet commerce is sure to have a huge impact on the way business will be done into the future.

The 3 Sectors of Internet based E-Commerce

Although most Internet users are only familiar to e-commerce on the web as directed towards the everyday consumer, the opportunities do not end there. There are actually 3 sectors of e-commerce on the Internet; Business-to-Consumer, Business-to-Business and Consumer-to-Consumer.

While there is great potential for growth in all three of these areas, the Business to Business sector is predicted to show enormous growth in the next 3 years. (Nua) A recent poll backs this by stating that firms who plan to use e-commerce for purchasing functions outnumber by 10% those planning to use e-commerce for selling. (NABE) Online sales figures are expected to rise dramatically due to this increase in the business to business application.

www.nua.ie/surveys

Online Advertising

Internet based advertising is the first new advertising platform in half a century. (News Bytes News, 4/00) Internet companies choose to advertise on the Internet for many reasons. Some of the goals of advertising include creating awareness for new products, informing consumers of product features and benefits and building brand loyalty. (MK380 Course Note book) Good advertising presents the company's product or service in a message that memorable to the viewer. Because it is often the medium, or format of advertising which influences how consumers interpret and retain the information, deciding upon the medium to use is very important for a business. Selecting the correct media that will maximize exposure to the target market while still presenting the message in a way that is memorable, is often the deciding factor towards the success of an advertising strategy.

Robin Webster, a VP at the Association of National Advertisers, states that "this is the first medium that combines every single part of the marketer's job from awareness to information to transactions to customer service. It transforms eyeballs to relationships." (Plotting a Course for Internet Ads) A single Internet advertisement can complete each of these functions, all at once. If a customer clicks on a CDNow banner that appears on a Web site for instance, they will be taken to the CDNow.com site where CD reviews can be read, music clips sampled, orders placed, and visitors can even interact with customer service representatives.

The level of interaction can be limited by the design of the ad that is utilized. One major factor concerning the design capability is in the speed of connection that is used on the receiving end of a site. Designs that are have high multi-media content, often contain creative ways for users to interact. Currently, online advertisers are limited in the multi-media capabilities of ads due to the modem speeds that most users have. Through phone connection, and the use of a modem, maximum speeds are 56K bits per second, compared to 128K bits per second that is possible through high-speed access. With the slower connection speeds, advertisements with high multi-media content load

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