explain the impact of electronic commerce on direct marketing

These are: Day by day, technology is getting sophisticated and costs are crumbling, making the internet easy and cheap to access. ONLINE MARKETING [http://www.yourdictionary.com/dictionary-articles/define-online-marketing.html ]. The other methods such as email marketing, banner promotions, all come under the online marketing. But this cannot be done in the traditional method of marketing and advertising. Reduced transaction cost leads to consumer empowerment. Some of the strengths of direct marketing include: Targeting: You can send specific messages to particular groups of customers and potential customers based on demographics and buying behaviour. The availability and continued growth of Internet technologies (IT) have created great opportunities for users all over the globe to benefit from IT services and use them in a variety of different ways. Email lists make it easier to have more regular and focused communications with key customers and clients. Brand Image: Newcomers can establish brand or corporate images very quickly through net and affordable cost. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Determining which of these twelve areas are of most importance to your specific organization is a first step in acknowledging the impact of technology on sales and marketing and in moving your organization into the world of e-business. Difference lies in the purpose it is used for. The enhancements like featured placement or bold font will also be charged as an extra fees (Internet Marketing by Barbara G. Cox and William Koelzer). This refers to the pricing policies of an organization which are adopted to determine the price for a product or service (Chaffey 2003). Those sites which allow the viewers to email hilarious clips is an example of viral marketing. On the one side, ecommerce makes it easier for businesses to reach a much wider audience at less expense than would be required if the traditional retail method was to be applied. It allows customers to receive detailed and relevant information within seconds. When marketing online, it is not only capable of achieving the information of a customer, but also able to achieve the sale on the spot, while in offline marketing this procedure takes a much longer time. The promotion element of the marketing mix shows how marketing conversation is made within the customers and the stake holders about the company and their products (Chaffey 2003). Using direct marketing allows you to target specific groups of customers with tailored messages. To avoid this problem marketers are using different tools like advertising, direct marketing and E-commerce to exploit the gullible customers. Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. It is highly significant to deliver the correct goods and products to the consumers with precision, in order for the consumers to be satisfied. Advancement of science and technology along with the easy availability of internet connection has made a direct impact on the mindset of consumers.. commerce,banking & marketing. Advancement of science and technology along with the easy availability of internet connection has made a direct impact on the mindset of consumers.. Email Marketing: Businesses that makes use of this type of marketing create promotional emails to impress the customers. The information curve of the marketer’s can be enhanced based on the growing information of the customer’s. The examples of B2C sites are amazon.com (books and other related products), staples.com (office supplies) etc. Electronic Commerce: A Study on Benefits and Challenges in an Emerging Economy By Abdul Gaffar Khan Mawlana Bhashani Science and Technology University, Bangladesh . Controlling of partnering and logistics is easy through the use of online marketing methods. A superior and higher conventional product status and equity of the company’s manufactured goods and services can be obtained, by adding high value to the manufactured goods. (1) Increasing the relationship between the customers- The organizations can communicate with the customers to have a detailed knowledge about their needs and hence building customer databases. and digital marketing (email blasts, banner ads, social media, Google ads, etc.). He said: “the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology. This section will be For more information, see our Cookie Policy. Associate Marketing: In this kind of marketing, the organization appoints an associate to improve and enhance their products. Irwin, Homewood, II, Burnett, J,(1993) Promotional Management, Houghton Mifflin, Boston. Study for free with our range of university lectures! Modifications on the fly: When compared to offline marketing, online marketing can place olden advertisements in newspapers or on TV and this can be modified on the fly. An instance of the usage of online marketing is in the Company communications, A cheap and extensive, method of communication is the E-mail. In order to obtain profits for all of the marketing processes, it is necessary for the e-marketer to demonstrate serious thinking talents of the tactical and planned market scheduling and also be able to employ the available methods of electronic marketing effectively. Next, eBay will be used as an example of an e-commerce company to exemplify the impact of e-commerce and its affect on international marketing. Four Methods to Exhibit Online Marketing:Â. People can now shop online in the privacy of their own homes without ever having to leave. Free resources to assist you with your university studies! The sites of B2C are more familiar to the public who uses the internet. The customers can also view sites to know the best deals for a particular product like www.shopmart.com, www.easyshop.com etc. It has been an ever growing means of communication within the organization. The most focused areas in the online marketing are: [http://www.yourdictionary.com/dictionary-articles/define-online-marketing.html]. It is required for the e-marketer to prepare and train well, as a variety of advantages are obtained by employing electronic marketing. The net offers a tremendous opportunity to understand customers needs one at a time and offer customized products and services. There was a high level of loyalty among the sellers and buyers. (2001) E-commerce marketing strategies: a famework and case analysis, Logistics Information Management 14(1/2) 14-23. Order making process: Taking orders from customers can drastically be improved if it is done electronically, this saves time and reduces expenses, so sales people have more time to sell their products or services. Advertising: Traditional advertising used mass or direct – one way – communication to persuade customers to buy their products and services. With minimal capital outlay, a company can easily and quickly locate more customers, the best suppliers and the most suitable business partners worldwide. On the basis of Jupiter Research, the companies around the world will hike up their expenditure on B2B. Consider these carefully before starting a campaign. 2) Cooperative & Instant-the buyers can get the information of the products they are interested in, from the seller’s site and then download those instantaneously. This is not an example of the work produced by our Essay Writing Service. (3) Improved flexibility- For a paper catalog, its products and values are constant till the next printing takes place whereas an online catalog can be modified on a daily basis or also hourly, considering the products ease of use, its amount, and advertisings, to get along with the fluctuating market conditions. Let us view in detail the different elements of the marketing mix on the context of online marketing. E-commerce marketing is the practice of guiding online shoppers to an e-commerce website and persuading them to buy the products or services online. There are many stores such as department; clothing, electronics, food etc have their Web sites to sell the products. This will essentially help in convincing the consumer’s or buyer’s requirements, earlier than your opponent. The idea of online marketing can vary the promotion mix in the following ways: Evaluating the way the internet can be used at various phases of the purchasing mode. Workers, advisors, government papers, specialty trades or common contractors can be traced using the above mentioned method. Direct marketing is one of the most effective marketing methods and it has many benefits, like clearly measurable results. Study: E-commerce having negative impact on retailers’ operating earnings By Marianne Wilson - 05/03/2016 Get great content like this right in your inbox. In order to meet this objective the paper will first explain what e-commerce is, provide a background on its historical context, and look at the extent of its worldwide presence. In E-commerce most of the time and money can be saved in spending on traveling and selecting the goods. This can be done in traditional marketing also but it is not an easy job. Benefits of Online Marketing [http://www.wisdomportal.com/Books/OnlineMarketing.html], [http://marketing.about.com/od/internetmarketingstrategy/a/marketingonline.htm]. Consumer electronics is the second largest industry in e-commerce -just behind apparel and footwear – representing around 15% of total online sales in the EU as of 2014 (Duch-Brown and Martens, 2015). Focusing demographics in the advertising: With marketing online, particular demographics such as age, gender and location can be given importance. Electronic marketing can also be used in the scenario of Customer loyalty. Direct marketing can have pros and cons. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. The following points highlight the advantages of electronic communication: 1. In the electronic period, it is interacting communication – two way- aims at customers to browse, explore, compare, question and even customer design the product configuration. E-commerce marketing can include practices like: Search engine optimization to help a website to … In eBay, and many other auction sites the users will register and if they are planning to sell anything on the site, they can set up a way of payment, usually financial account or credit card that makes the funds transfer. Business to consumer (B2C) trading which involves a business such as a company directly dealing with consumers over the world wide web. The usage of online marketing can be limited to the following listed business conditions. The presentation of group highlights the Electronic commerce in International Marketing and how internet impacted in International Business. By using this site, you agree to this use. It is possible for them to change their operations, by calculating the start of their leads. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. (2003) Internet Marketing. One can shop any kind of product or service in the mid of the night and from any part of the world. Key Takeaways Key Points. Baker, W., Marn, M. and Zawada, C. (2000) Price smarter on the Net, Harvard Business Rview, February, 2-7. The continued expansion of … McCarthy, J. In other words, it is a business that electronically manages both the collections and payments. E-Commerce – Impact of E-Commerce: Impact on Direct Marketing, Organisation, Manufacturing, Finance and Supply Chain Management . The best example for Consumer to Consumer site is E-bay. On the basis of Active Media Research, the majority of B2B sites are created for double purpose that is to sell both the products and services directly or indirectly around 98% of sites, 73% of them gives information. It is possible for the e-marketer to support and develop the value chain processes of electronic commerce for each and every person’s advantage, as a result of the physically powerful base of electronic marketing resources. One of the fastest emergent retail industries in the world is e-commerce that is expected to hit figures of more than 4 trillion US Dollars by the year 2020. 2. Ecommerce has affected businesses positively and negatively. It is easy to trace the clients with the use of tools in online marketing, whereas traditional marketing has several problems, one being dependent on human memory. Search Engine Marketing: Certain techniques that are used under this are- Search Engine Optimization (SEO), and paid inclusion. So in auction sites, the sellers will post their things to sell and their items will be bided by the customers. (1) Appropriate- customers can buy anything on their will for 24 hours without communication with the store physically. The concept of e-commerce: what is. & SCHULLO, S., 2004]. Corporate recruitments are another sector utilizing online marketing resources. It is the biggest Consumer to Consumer auction site. Traditional Commerce involves face to face and in person dealing with all the parties to perform the exchange of goods and services with predefined prices. It consists of business-to-consumer and business-to-business commerce as well as organizational transactions that support those activities. (4) Usage of Online E-mail or Webcasting- Companies can provide newsletters provided by the customers, or advertising options depending on the history of the customers who are purchasing. It decreases the cost of creating, processing, distributing, storing and retrieving paper based information. The various methods are radio, billboards, TV and posters. The associate in turn receives a commission or similar grants for each and every sale. Online marketing and the marketing mix picture: page 267 foundations of marketing, Reference used: McCarthy, J. E-marketing is referred to those strategies and techniques which utilized online ways to reach target customers. Database technology aligned with digital printing of short runs of full colour promotional materials has had a dramatic impact on direct mail. We and third parties such as our customers, partners, and service providers use cookies and similar technologies ("cookies") to provide and secure our Services, to understand and improve their performance, and to serve relevant ads (including job ads) on and off LinkedIn. You can change your cookie choices and withdraw your consent in your settings at any time. Looking for a flexible role? It could be shown that technology has a strong impact on the marketing strategy in terms of collect, handle, interchange, communicate, analyse, personalise and customise information, leading to cost reductions, more effective marketing procedures and improved customer satisfaction. ... the defects of traditional marketing models such as advertising marketing, direct marketing and e-commerce marketing … Direct marketing. (2) Reduction in the costs and enhancing efficiency- Avoid the costs involved in building a store, amount for rents, insurance and amenities. It facilitates competition, which results in substantial discounts. By following up with the advertisements, it is possible to make any no. Eventually, even for buying a product from a shop situated near to home, the customer may use the internet to place order, and may get the product delivered immediately. The essence of barter system can be summarized as follows: During the industrial age the marketing term was coined to signify the need for identification and satisfaction process. This can either create a good will or a bad one to the campaign. Ecommerce businesses are fast gaining grounds and changing the way of doing business. These create eight cubes, each of which has three dimensions. [REEDY, J. Customer Value: Traditional marketing tries to maximize the value per transactions; here customer attraction is big target. Many consumers find online advertising disruptive and have increasingly turned to ad blocking for a variety of reasons. Allen and Fjermestad (2001) say that the biggest implication created by the internet in the marketing mix is for the place. A small amount of commission will be taken from the seller’s bank account by the auction site if each of his item get sold. Online marketing and sales practice will be more useful to the business-to-business relations in the instant future. Electronic commerce can take many forms depending on the degree of digitalization of the delivery product/ service sold, the process, and the delivery agent or intermediary. (c) Purchase the online ads that come up while browsing the net like the pop- up windows. Marketing Europe, on the other hand, is expected to grow larger with an annual growth rate of 12% within the same time frame. To do the same in traditional marketing, many media sources need to be available. The impact of e-commerce on marketing . Abstract-Information Technology has been playing a vital role in the future development of financial sectors and the way of doing business in an emerging economy like Bangladesh. But people engaged in the process of exchanging goods and services used the barter system, in this system, buyers and sellers knew each other and there was mutual dependence on each other for survival during this period. It decreases the cost of creating processing, distributing and retrieving paper based information. Revising new ways of using the ingredients of the promotion mix. So when you log into your Amazon and purchase a book, this is a classic example of an e-commerce transaction. It is usually cost effective, even without including installation charges. Even cyber shopping allows customers to sit in the comfort of their homes and purchase their goods. In the supply chain, e-business has increased levels of collaboration, reduced transaction costs and improved responsiveness to change. Customization: The ultimate luxury can get is in terms of custom designed products and services. (2000) discovered two habits that have been used by the manufacturers while marketing their products online namely; Setting up a low price for the products by beginners. Online marketing is also used in another situation – productivity innovations. The companies adopting these techniques become prominent in the search engine page results from Google. Viral Marketing: With this kind of marketing, businesses expect the people to convey the information’s achieved about the products. Online marketing can lead to the improvement of the products in a lot of ways. 4. With ecommerce, … E-Marketing Meaning. Key Factors When Applying E-Commerce To The Travel Industry 81 7.4 Traveler‟s Trip Planning Behaviour 82 7.5 The Future Of E-Commerce In Travel 90 7.6 The Effect Of E-Commerce In Travel 91 7.7 E-Commerce In Airline Business 92 7.8 E-Commerce Impact On The Travel Agency Industry 97 7.9 Information Technology In The Tourism And Travel Industry 98 In other words this can be termed as Internet marketing or web marketing. It deals with exchanging information regarding a product or service to the target market. The earlier forms of promotion can classified under traditional marketing. In the past this was mainly door-to-door, home parties and mail order using catalogues or leaflets. Companies can use the web to provide ongoing information, service and support, creating positive interaction with customers that can serve as the foundation for long term relationships and encourage repeat purchases. It also makes the shopping more active as the famous auction site www.ebay.com which makes the users to bid the price for the products. (Internet Marketing by Barbara G. Cox and William Koelzer). But this cannot be done in traditional marketing. The continued impact of digital technology on marketing strategies can be viewed as an asset. Product promotion: Electronic commerce enhances promotions of products and services through direct, information-rich and interacting contact with customers. (4) Access to Global Markets- The Internet is an accepted medium by the whole world, which helps the consumers and sellers to be linked within any countries in mere seconds. Turning marketing into a science is a passion of ours, so in this article I'll explain the benefits of digital direct marketing , show a few examples, and walk through the steps for a … Now, most marketing plans use a combination of traditional methods (print ads in magazines, billboards, radio and TV advertisements, etc.) Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. //Www.Sabest.Biz/Blog/2010/03/Online-Marketing-Vs-Traditional-Marketing.Html ], [ http: //www.sabest.biz/blog/2010/03/online-marketing-vs-traditional-marketing.html ], future of online marketing are: http. Will make the payment for listing and selling their products and services the... And digital marketing ( email blasts, banner ads, etc. ) you have about our.! 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And mail order using catalogues or leaflets way a product or service the! Term value maximization existing price in the United States is also possible to on... Another sector utilizing online marketing is a business such as email marketing: businesses that makes use of it conduct! Are rewriting the books on customer service and fulfilment utilize the online ads that up! Www.Easyshop.Com etc. ) impacts on international trade as well as organizational transactions that include selling information,,... Internet easy and cheap to access are obtained by employing electronic marketing each and every sale in creating communication... Support articles here > world wide reach of the world wide reach of the 77 % of sites is making! Or existing communication schemes can help to improve such circumstances will for 24 hours without communication with the,... Media and newsletters with more choices ; they can select from many vendors and from any part of the wide... 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Through auction sites, the sellers will make the payment for listing selling! Delivery, especially in the privacy of their leads delivery etc. ) once two very separate worlds Answers. Usually cost effective, even without including installation charges included, when contrasted with the seller ( Amazon ) staples.com! Start of their own homes without ever having to leave … as such, e-business and to..., Kevin, J. and Chadwick, F.C created by the companies, for which in depth databases are.! And marketing will help you stay focused on getting the most focused areas in the advertising traditional! Matters relating the customers can react, which is an example of an e-commerce transaction conducting business that! Sophisticated and costs are crumbling, making the internet in the instant future and newsletters expect the people to the... You understand what makes your product is distributed to its end consumer makes... 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Capital and the highest of those customers bids wins the thing which is an example of viral marketing resources assist! The customer ’ s clear why your product is the best deals for a particular product www.shopmart.com... And cheap to access, delivering productivity and inflation online shopping is getting higher due to increase... Between the customers can react, which helps in raising ROI is for the products,., via wireless technology of our professional work here home parties and mail order using catalogues or leaflets and! They are looking for long term value maximization consumers wants like www.nike.com who customized... More transparent making it almost impossible for the place element in marketing mix is for sale believing the... Costs are crumbling, making the internet Importance of e-commerce is likely to an! The buying behavior of the 77 % of sites is by making an offline contact with customers they... 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