Internet marketing, also referred to as i-marketing, web-marketing, online-marketing or e-Marketing, is the marketing Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves of products or services over the Internet The Internet is a global system of interconnected computer networks that use the standard Internet Protocol Suite to serve billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks of local to global scope that are linked by a broad array of electronic and.

The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant responses and eliciting responses are the unique qualities of the medium. Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. Management of digital customer data and electronic customer relationship management (ECRM eCRM Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology) systems are also often grouped together under internet marketing.

Internet marketing ties together creative and technical aspects of the Internet, including: design, development, advertising, and sales.

Internet marketing also refers to the placement of media along many different stages of the customer engagement Unlike marketing terms such as positioning, customer engagement has not been traced to a single source. Customer engagement has been discussed widely online; hundreds of pages have been written, published, read and commented upon. Numerous high-profile conferences, seminars and roundtables have either had CE as a primary theme or included papers cycle through search engine marketing Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages through the use of search engine optimization, paid placement, contextual advertising, and paid inclusion.. Usage of the term "search engine marketing" has been inconsistent. The (SEM), search engine optimization Search engine optimization is the process of improving the visibility of a web site or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results. Other forms of search engine marketing (SEM) target paid listings. In general, the earlier (or higher on the page), and more (SEO), banner ads A web banner or banner ad is a form of advertising on the World Wide Web. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. The advertisement is constructed from an image , JavaScript program or multimedia object employing on specific websites, e-mail marketing E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing. However, the term is usually used to refer to:, and Web 2.0 The term "Web 2.0" is commonly associated with web applications that facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide Web. Examples of Web 2.0 include web-based communities, hosted services, web applications, social-networking sites, video-sharing sites, wikis, blogs, strategies. In 2008, The New York Times The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. Although it remains both the largest local metropolitan newspaper in the United States as well as third largest overall behind The Wall Street Journal and USA Today, the weekday circulation of the paper has fallen precipitously in - working with comScore comScore is an Internet marketing research company providing marketing data and services to many of the Internet's largest businesses. comScore tracks all internet data on its surveyed computers in order to study online behavior - published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits A hit is a request to a web server for a file . When a web page is uploaded from a server the number of "hits" or "page hits" is equal to the number of files requested. Therefore, one page load does not always equal one hit because often pages are made up of other images and other files which stack up the number of hits counted from advertisements served from advertising networks, the authors found the potential for collecting data upward of 2,500 times on average per user per month.^[1]

Business models

Internet marketing is associated with several business models A business model describes the rationale of how an organization creates, delivers, and captures value - economic, social, or other forms of value. The process of business model design is part of business strategy:

• e-commerce Electronic commerce, commonly known as e-commerce or eCommerce, or e-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in — this is where goods are sold directly to consumers (B2C) or businesses (B2B)
• Publishing — this is the sale of advertising Advertising is a form of communication intended to persuade an audience to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These brands are usually
• lead A sales lead is the identity of a human or entity potentially interested in purchasing a product or service, and represents the first stage of a sales process. The lead may have a corporation or business associated with the person(s). Sales leads come from either marketing lead generation processes such as trade shows, direct marketing,-based websites — this is an organization that generates value by acquiring sales leads from its website
• affiliate marketing Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four — this is the process in which a product or service developed by one entity (e-commerce business, single person, or a combination) is sold by other active sellers for a share of profits. The entity of the product may provide some marketing material (sales letter, affiliate link, tracking facility) However, the vast majority of affiliate marketing relationships come from e-commerce businesses that offer affiliate programs.
• local internet marketing - this is the process of a locally based company traditionally selling belly to belly and utilizing the Internet to find and nurture relationships, later to take those relationships offline.
• blackhat marketing - this is a form of internet marketing which employs deceptive, abusive, or less than truthful methods to drive web traffic to a website or affiliate marketing offer. This method sometimes includes spam, cloaking within search engine result pages, or routing users to pages they didn't initially request.

There are many other business models based on the specific needs of each person or the business that launches an Internet marketing campaign.

One-to-one approach

The targeted user is typically browsing the Internet alone therefore the marketing messages can reach them personally. This approach is used in search marketing, where the advertisements are based on search engine A web search engine is designed to search for information on the World Wide Web. The search results are generally presented in a list of results and are often called hits. The information may consist of web pages, images, information and other types of files. Some search engines also mine data available in databases or open directories. Unlike Web keywords An index term, subject term, subject heading, or descriptor, in information retrieval, is a term that captures the essence of the topic of a document. Index terms make up a controlled vocabulary for use in bibliographic records. They are an integral part of bibliographic control, which is the function by which libraries collect, organize and entered by the users.

And now with the advent of Web 2.0 tools, many users can interconnect as "peers."

Appeal to specific interests

Internet marketing and geo marketing As a general term, Geomarketing is the integration of Geographical intelligence into all marketing aspects including sales and distribution. Geomarketing Research is the use of geographic parameters in research methodology starting from sampling, data collection, analysis, and presentation. Geomarketing Services are more related to routing, places an emphasis on marketing that appeals to a specific behaviour or interest, rather than reaching out to a broadly defined demographic. "On- and Off-line" marketers typically segment their markets according to age group, gender, geography, and other general factors. Marketers have the luxury of targeting by activity and geolocation Geolocation is the identification of the real-world geographic location of an object, such as a cell phone or an Internet-connected computer terminal. Geolocation may refer to the practice of assessing the location, or to the actual assessed location. For example, a kayak company can post advertisements on kayaking and canoeing websites with the full knowledge that the audience has a related interest.

Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical, but rather the advertiser has knowledge of the target audience—people who engage in certain activities (e.g., uploading pictures, contributing to blogs A blog is a type of website or part of a website. Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reverse-chronological order. "Blog" can also be used as a verb, meaning to maintain or add content to a)— so the company does not rely on the expectation that a certain group of people will be interested in its new product or service.

Geo targeting

Geo targeting Geo targeting in geomarketing and internet marketing is the method of determining the geolocation of a website visitor and delivering different content to that visitor based on his or her location, such as country, region/state, city, metro code/zip code, organization, IP address, ISP or other criteria. A common usage of geo targeting is found in (in internet marketing) and geo marketing As a general term, Geomarketing is the integration of Geographical intelligence into all marketing aspects including sales and distribution. Geomarketing Research is the use of geographic parameters in research methodology starting from sampling, data collection, analysis, and presentation. Geomarketing Services are more related to routing, are the methods of determining the geolocation Geolocation is the identification of the real-world geographic location of an object, such as a cell phone or an Internet-connected computer terminal. Geolocation may refer to the practice of assessing the location, or to the actual assessed location (the physical location) of a website visitor with geolocation software In computing, geolocation software is used to deduce the geolocation of another party. For example, on the Internet, one geolocation approach is to identify the subject party's IP address, then determine what country, organization, or user the IP address has been assigned to, and finally, guess that party's location. Other methods include, and delivering different content Web content is the textual, visual or aural content that is encountered as part of the user experience on websites. It may include, among other things: text, images, sounds, videos and animations to that visitor based on his or her location, such as country, region/state, city, metro code/zip code ZIP codes are a system of postal codes used by the United States Postal Service since 1963. The term ZIP, an acronym for Zone Improvement Plan, is properly written in capital letters and was chosen to suggest that the mail travels more efficiently, and therefore more quickly, when senders use the code in the postal address. The basic format, organization, Internet Protocol The Internet Protocol is a protocol used for communicating data across a packet-switched internetwork using the Internet Protocol Suite, also referred to as TCP/IP (IP) address, ISP An Internet service provider , also sometimes referred to as an Internet access provider (IAP), is a company that offers its customers access to the Internet. The ISP connects to its customers using a data transmission technology appropriate for delivering Internet Protocol Paradigm, such as dial-up, DSL, cable modem, wireless or dedicated high- or other criteria.

Different content by choice

A typical example for different content by choice in geo targeting is the FedEx website at FedEx.com where users have the choice to select their country location first and are then presented with a different site or article content depending on their selection.

Automated different content

With automated different content in Internet marketing and geomarketing As a general term, Geomarketing is the integration of Geographical intelligence into all marketing aspects including sales and distribution. Geomarketing Research is the use of geographic parameters in research methodology starting from sampling, data collection, analysis, and presentation. Geomarketing Services are more related to routing,, the delivery of different content based on the geographical geolocation Geolocation is the identification of the real-world geographic location of an object, such as a cell phone or an Internet-connected computer terminal. Geolocation may refer to the practice of assessing the location, or to the actual assessed location and other personal information is automated.

Advantages

Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis Cost-Volume-profit, in managerial economics is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run decisions.

Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression Cost per mille , also called cost ‰ and cost per thousand (CPT) (in Latin mille means thousand) , is a commonly used measurement in advertising. Radio, television, newspaper, magazine, Out-of-home advertising and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in, pay per click Pay Per Click is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system, pay per play, or pay per action Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, visit a website, and perform a targeted action. Such measurement cannot be achieved through billboard advertising, where an individual will at best be interested, then decide to obtain more information at a later time..

Because exposure, response, and overall efficiency of Internet media are easier to track than traditional off-line media—through the use of web analytics Web analytics is the measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage for instance—Internet marketing can offer a greater sense of accountability for advertisers. Marketers and their clients are becoming aware of the need to measure the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than siloing An information silo is a management system incapable of reciprocal operation with other, related management systems. A bank's management system, for example, is considered a silo if it cannot exchange information with other related systems within its own organization, or with the management systems of its customers, vendors, or business partners. & each advertising medium. The effects of multichannel marketing Multichannel marketing is marketing using many different marketing channels to reach a customer. In this sense, a channel might be a retail store, a web site, a mail order catalogue, or direct personal communications by letter, email or text message. The objective of the company doing the marketing is to make it easy for a consumer to buy from can be difficult to determine, but are an important part of ascertaining the value of media campaigns.

Limitations

Internet marketing requires customers to use newer technologies rather than traditional media. Low-speed Internet connections are another barrier. If companies build large or over-complicated websites, individuals connected to the Internet via dial-up Dial-up Internet access is a form of Internet access that uses telephone lines. The user's computer or router uses an attached modem connected to a telephone line to dial into an Internet service provider's node to establish a modem-to-modem link, which is then used to route Internet Protocol packets between the user's equipment and hosts connections or mobile devices A mobile device is a pocket-sized computing device, typically having a display screen with touch input or a miniature keyboard. In the case of the personal digital assistant (PDA) the input and output are combined into a touch-screen interface. Smartphones and PDAs are popular amongst those who require the assistance and convenience of a experience significant delays in content delivery.

From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods before making an online purchase can be limiting. However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services.

A survey of 410 marketing executives listed the following barriers to entry In economics and mostly especially in the theory of competition, barriers to entry are obstacles in the path of a firm that make it difficult to enter a given market for large companies looking to market online: insufficient ability to measure impact, lack of internal capability, and difficulty convincing senior management.^[2]

Security concerns

Information security Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification or destruction. Mainly the Information Security Consultants are associated with it is important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not trust that their personal information will remain private.

Recently some companies that do business online have been caught giving away or selling information about their customers. Several of these companies provide guarantees on their websites, claiming that customer information will remain private. Some companies that purchase customer information offer the option for individuals to have their information removed from the database A database consists of an organized collection of data for one or more uses, typically in digital form. One way of classifying databases involves the type of their contents, for example: bibliographic, document-text, statistical. Digital databases are managed using database management systems, which store database contents, allowing data creation, also known as opting out The term opt-out refers to several methods by which individuals can avoid receiving unsolicited product or service information. This ability is usually associated with direct marketing campaigns such as telemarketing, e-mail marketing, or direct mail. However, many customers are unaware if and when their information is being shared, and are unable to stop the transfer of their information between companies if such activity occurs.

Another major security concern that consumers have with e-commerce merchants is whether or not they will receive exactly what they purchase. Online merchants have attempted to address this concern by investing in and building strong consumer brands (e.g., Amazon.com Amazon.com, Inc. is an American-based multinational electronic commerce company. Headquartered in Seattle, Washington, it is America's largest online retailer, with nearly three times the Internet sales revenue of the runner up, Staples, Inc., as of January 2010, eBay eBay Inc. is an American Internet company that manages eBay.com, an on-line auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Founded in 1995, eBay is one of the notable success stories of the dot-com bubble; it is now a multi-billion dollar business with operations localized, Overstock.com Overstock.com is an online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. Founded in 1997 by Robert Brazell, under the name D2: Discounts Direct, it pioneered the online sale of surplus merchandise. It now features a combination of surplus, returned, and new items), and by leveraging merchant/feedback rating systems and e-commerce bonding In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals solutions. All of these solutions attempt to assure consumers that their transactions will be free of problems because the merchants can be trusted to provide reliable products and services. Additionally, the major online payment mechanisms (credit cards A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer from which the user can borrow money for payment to a merchant or as a cash advance to the, PayPal, Google Checkout, etc.) have also provided back-end buyer protection systems to address problems if they actually do occur.

Usage trends

Online advertising techniques have been dramatically affected by technological advancements in the telecommunications industry. In fact, many firms are embracing a new paradigm that is shifting the focus of online advertising from simple text ads to rich multimedia experiences. As a result, advertisers can more effectively engage in and manage online branding campaigns, which seek to shape consumer attitudes and feelings towards specific products. The critical technological development fueling this paradigm shift is Broadband.

In a national survey between November 30 and December 27, 2009, the Pew Research Center found that 74% American adults (ages 18 and older) use the Internet.^[3] The same study found that 60 percent of American adults use broadband connections at home. 55% of American adults connect to the Internet wirelessly, either through a WiFi or WiMax connection via their laptops or through their handheld device like a smart phone.

Effects on industries

The number of banks offering the ability to perform banking tasks over the internet has also increased. Online banking appeals to customers because it is often faster and considered more convenient than visiting bank branches. Currently over 150 million U.S. adults now bank online, with increasing Internet connection speed being the primary reason for fast growth in the online banking industry.^{[citation needed]} Of those individuals who use the Internet, 44 percent now perform banking activities over the Internet.^{[citation needed]}

Internet auctions have become a multi-billion dollar business. Unique items that could only previously be found at flea markets are now being sold on Internet auction websites such as eBay. Specialized e-stores sell an almost endless amount of items ranging from antiques, movie props, clothing, gadgets and much more.^[4][5] As the premier online reselling platform, eBay is often used as a price-basis for specialized items. Buyers and sellers often look at prices on the website before going to flea markets; the price shown on eBay often becomes the item's selling price. It is increasingly common for flea market vendors to place a targeted advertisement on the Internet for each item they are selling online, all while running their business out of their homes.

In addition to the major effect internet marketing has had on the technology industry, the effect on the advertising industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually.^[6][7][8] PricewaterhouseCoopers reported that US$16.9 billion was spent on Internet marketing in the U.S. in 2006.^[9]

This has had a growing impact on the electoral process. In 2008 candidates for President heavily utilized Internet marketing strategies to reach constituents. During the 2007 primaries candidates added, on average, over 500 social network supporters per day to help spread their message.^[10] President Barack Obama raised over US$1 million in a single day during his extensive Democratic candidacy campaign, largely due to online donors.^[11]

See also

• Article marketing
• Classified advertising
• Conversion rate
• Digital marketing
• HubSpot
• Inbound marketing
• In-text advertising
• Lead scoring
• Media transparency
• Online identity management
• Online lead generation
• Pay per click
• Post-click marketing
• Social media optimization
• Web banner
• Product feed

References

1. ^ Story, Louise and comScore (March 10, 2008). "They Know More Than You Think" (JPEG). http://www.nytimes.com/imagepages/2008/03/10/technology/20080310_PRIVACY_GRAPHIC.html. in Story, Louise (March 10, 2008). "To Aim Ads, Web Is Keeping Closer Eye on You". The New York Times (The New York Times Company). http://www.nytimes.com/2008/03/10/technology/10privacy.html. Retrieved 2008-03-09.
2. ^ Mediapost (Blog) - Why Marketers are Not Investing Online (2/13/2008)
3. ^ Pew Research Center, Jan. 2010, "Internet, broadband, and cell phone statistics" [1]
4. ^ Ian Mohr Daily Variety. Reed Business Information February 27, 2006 "Movie props on the block: Mouse to auction Miramax leftovers"
5. ^ David James People Magazine Time, Inc. February 24, 2007 "Bid on Dreamgirls Costumes for Charity"
6. ^ eMarketer - Online Ad Spending to Total $19.5 Billion in 2007 (2007-2-28)
7. ^ The Register - Internet advertising shoots past estimates (2006-09-29)
8. ^ Internet Advertising Bureau - Online Adspend (2007-06-18)
9. ^ PricewaterhouseCoopers reported U.S. Internet marketing spend totaled $16.9 billion in 2006" (Accessed 18-June-2007)
10. ^ "Spartan Internet Consulting - Political Performance Index (SIPP)" (Accessed 28-June-2008)
11. ^ "Center For Responsive Politics Fundraising Profile Barack Obama" (Accessed 28-June-2008)

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