P.S.R.

Engineering College Sivakasi

Assignment On Online Marketing Trends

MARKETING MANAGEMENT (12BA23)

Assignment No: 2 Date of Submission: 18.04.13

Submitted To: Submitted By: Mr. R.KASI RAMAN B.E., MBA, R.RAMACHANDRAN, Asst. Professor, 12BA035, Department of Management Studies. Year MBA. IST

Contents:
1. ONLINE MARKETING Introduction Definition Needs Strategies 5 - Step Plans 10 - Rules for Success Tools 2. ONLINE MARKETING RECENT TRENDS 3. ONLINE MARKETING BENEFITS & DRAWBACKS 4. CONCLUSION & REFERENCES

ONLINE MARKETING Introduction:

Online Marketing in its simplest terms refers to the marketing and selling of goods and services using the Internet as the sales and distribution medium. The Internet has reduced the world into a global village, has made distance irrelevant and time zones little more than an inconvenience. e.g., Businesses in the remote parts of India can easily service clients in the bright cities of America, while goods produced in China are sold to consumers in all parts of the world. Online Marketing offers anybody over a certain age with access to a computer and access to an Internet connection, the opportunity to go into business for themselves with little or no start-up costs. The Internet has made all this possible and made Online Marketing a reality. Online marketing in its broadest sense is the use of the internet to market the marketers products or website. Here marketers can achieve this in several different ways, or combine all of these methods in order to develop an effective marketing strategy.

ONLINE MARKETING Definition:

Online Marketing is the art and science of selling products and/or services over digital networks, such as the Internet and cellular phone networks.
The art of online marketing involves finding the right online marketing mix of

strategies that appeals to your target market and will actually translate into sales. The science of online marketing is the research and analysis that goes into both choosing the online marketing strategies to use and measuring the success of those online marketing strategies. (Or) Online Marketing is defined as placing the business or product on the internet for millions of users to access so that the marketer has turned their website into a strong tool to maximize their sales and business potential.

ONLINE MARKETING Needs:

Communication: An important part of online marketing is how to respond the customers e-mail. The Marketer doesnt want to lose the potential customer after they made the effort to the customer to visit their websites and then contact the marketer for more information. Email is a very effective and cost efficient way to generate more sales.

Human Resources: Efficient websites incorporate a personal touch with a fast response time to customers. So the succeed of online marketing depends on the enough people working with the online.

Motivating Factors: Two Motivating Factors such as, Cost Customers may easily buy through online without finding stores Convenience Products buy by the customers may very much cheaper than retail outlets.

ONLINE MARKETING Strategies:

1. Website: The first step to successful marketing online is to have a home base on the Web. It doesn't really matter if marketer has an official website or a blog or a combination of both. 2. Online Advertising: Two Cost Models in Online Advertising are, o CPM & CPC

CPM stands for Cost per Thousand Impressions. This type of marketing online basically buy space on a web page and pay for a certain number of impressions, or the number of times advertisement is going to be displayed. Many of the banner advertisements seen on various websites are being paid for on a CPM model.

CPC stands for Cost-Per-Click advertising. In this model, pay only for the number of times a viewer clicks on the advertisement, not on the number of times it's displayed.

3. Directory Listings: Adding the business to appropriate directory listings (local directory listings, business directories, etc.) is another way of marketing online that takes little time and is relatively inexpensive. Local business group belongs to, such as your local Chamber of Commerce, probably have websites where they allow members to list their businesses online and perhaps even place advertisement on the site at special rates. 4. Participating in Social Media: Marketing online through social media requires a much more best technique than marketing online through advertising or directory listings. With all social media, the trick is to participate intelligently and actually attempt to converse rather than just advertising your products or services. e.g., Facebook, Twitter Advertisements. 5. Online Networking: Online Marketings stated purpose is to help the world's professionals connect with one another to accelerate their success. It is a powerful tool for marketing online, giving you the opportunity to connect with potential customers, partners and colleagues. Like social media, online networking requires taking a subtle approach to marketing online. The same basic rule applies to online networking that applies to networking face-to-face.

6. Email Marketing: Email marketing is one of the best and most powerful ways of marketing online. Email programs such as Vertical Response and Constant Contact allows customizing the email to the potential customers. Thus a Marketer can select customers messages specific to their interests and actions. Some of the Top10 Online Marketing Strategies are as follows, 1. Start with a web promotion plan and an effective web design and development strategy. 2. Get ranked at the top in major search engines, and practice good Search Optimization Techniques. 3. Learn to use Email Marketing Effectively. 4. Dominate your marketing niche with affiliate, reseller, and associate programs. 5. Request an analysis from an Internet marketing coach or Internet marketing consultant. 6. Build a responsive opt-in email list. 7. Publish articles or get listed in news stories. 8. Write and publish online press releases. 9. Facilitate and run contests and giveaways via your web site. 10. Blog and interact with your visitors.

ONLINE MARKETING 5 Step Plans:

Define the Customers is more important than defining the products or naming your business. Choose the Target is more effective marketing Campaign.

Budgets is the idea of the cost involved i.e., overall spending limit. Creating the Advertisement content has a Solid Appeal to the target market. Tracking and reacting successes are critical in maintaining an effective marketing campaigns.

ONLINE

MARKETING

10Rules

for

Successful

Online

Marketing:
Rule 1: Planning The strategic planning should have priority to let all departments and employees of a company participate in the planning processes. Short, medium and long term goals have to be defined. Rule 2: Promotion Online activities are well suitable for the promotion, but the internet has to be promoted with classical advertising mediums as well. Rule 3: Hire professional The internet is not as easy as it looks. Therefore professionals are required not only for technical questions, but also professional online marketers. Rule 4: Learn from the competition There is always a company which has already developed a better online strategy than their own. If it is possible one can learn from the mistakes they already made. Rule 5: Identify target groups

The choice of the target group is not necessarily the same in online marketing like in traditional marketing, because wastage can be better avoided through the online channels. Rule 6: Use a simple layout Flash animations, videos are only a suitable layout for some web pages. The pages should not be overloaded with a stimulus satiation one achieves the opposite and visitors are annoyed.

Rule 7: Lets communicate The features of the web 2.0 offer a very good possibility to get in touch with a potential customer. Forums, guest books, blogs or newsletters are very useful to make new contacts. Rule 8: Update a web site regularly An actual date on a web page shows a customer that you care about the web site. Time on the internet is very short-term. A user needs the impression that he is reading actual content with new information. Rule 9: Benefit from your name Nowadays it is easy to book your own domain. It could be a great advantage to have your own domain name on your business cards or notepaper. It is another advantage if the name is short and concise. Corporate design is nowadays an important factor of success. Rule 10: Plan for the future The internet is changing continuously and with a high velocity. Planning an online campaign is a task where one should consider technological changes and maybe an expansion to global markets.

ONLINE MARKETING Tools:

1. Push Strategy vs. Pull Strategy: Depending on whether a company wants to use a push or pull strategy, the communication and marketing mix has to be designed differently.

Push Strategy
The push strategy pushes a product through the trade channels. A producer wants to convince a wholesaler to buy his product.

Pull Strategy
The pull strategy focuses its marketing activities to the consumer. The objective is to create a loyalty with that a customer demands only the own product.

2. Product Policy: Product policy is concerned with all aspects of the design of the market performance. The product or the service of a company is the exchange object which should offer a specific advantage to the demander. Specifically, these include the product design, product quality, brand policy, product policy, the packaging, and the name of the product, the customer service and the warrantee policy. 3. Price Policy:

The price policy is those measures that can help to make a purchase by designing prices. These measures concern the price policy, the discount policy, delivery, payments terms and credit policy. Instruments of the price policy include the price, discounts, additional charge for value added services and free gifts. The online price policy develops a new price calculation with the consumer.

4. Distribution Policy: The distribution policy concerns all measures to deliver the product from the producer to the customer. This includes decisions about distribution channels, involvement of traders as well as the logistics. The distribution policy has to make the supply available for the market. 5. Communication Policy: The communication policy is to establish the task on a personal and / or impersonal way of contact between suppliers and potential customers that can ultimately result in a sale. The communication policy has the task of advertising the supply and to build up a positive image of the product and the company.

ONLINE MARKETING Recent Trends:

Online advertisements like digital promotions for televisions. Display advertising like display banners or web banners placed on third-party websites or add blogs. Search Engine Marketing to improve visibility. Search Engine optimization also improve visibility in search results. Social media marketing through Face book or twitter

Email Marketing by sending commercial messages to a group of people via electronic mail.

Referrals marketing where promoting products through referrals like word to mouth.

Affiliate marketing like offer rewards and schemes to attract new customers. Internet marketing is associated with, 1. E-Commerce where products or services are sold directly to the customers online and 2. Create website with all product, services, contact details and other required information is provide.

ONLINE MARKETING Key Benefits:

1. Cost Effectiveness: Online marketing is a very cost effective option of promoting your business. Internet marketing will make your business promotion dynamic and lively at a very nominal cost. So, investment wise, it is a better option than the traditional print advertisements and marketing strategies. 2. Very Wide Reach: One of the major online advertisement benefits is that it has global reach. Internet is a medium, which will enable a potential client from the other end of the world to reach you without any trouble. It accesses a wide of pool of client base easily accessed with the help of properly implemented internet marketing strategies. 3. Easy to Manage: Online Marketing makes changes on the fly and save precious time that would have otherwise been wasted on an endless wait. The benefits that your business is making with the use of such strategies can be easily gauged and monitored as the process is not very complicated and even a layman can follow the procedure with some prior research. 4. Display full Information:

One of the major benefits of marketing online is that it must help to display as much information as you want about the product or service on the web. The print medium will give only a limited space and the scope might be restricted in many cases. 5. 24Hours Availability: Online advertisements will be available 24/7 for the customers through internet marketing. One of the major online advertisement benefits is that to put in a lot of effort initially, but once develops the system; it becomes much easier to draw the profit. So, if any marketer have a proper and functional strategy in place, internet marketing can ensure a round the clock and never ending advertisement for your business.

ONLINE MARKETING Drawbacks:

1. Using Pay-Per-Click can turn out to be very expensive, and if marketer are inexperienced, there is a possibility that they will lose money rather than make profits.

2. On the basis of the size of the company and the demand for the product, ensure that the
marketer setup a separate business function to support and manage your affiliates. Dishonest and Dodgy affiliate marketers could jeopardize the image of your company as well as your product. 3. It is not guaranteed that the top rankings will be in your bag, and you could pointlessly put in a huge amount of money in order to upsurge your rankings.

ONLINE MARKETING Conclusion:

The potential of internet marketing has been held in high regard by entrepreneurs for a long time. Even just a few short years ago; there were only a handful of people who saw the benefit to buying things online. This was because of the lack of trust in the system, which made them insecure when giving away their vital information. These days, however, people have a

deeper understanding of how the internet can save them time and money and their trust levels are increasing. The ability to purchase the things you want right from the comfort of your own home is a huge benefit to all the peoples. The enormous growth in Internet marketing in recent years means that many new marketing opportunities are still arising to growth in the modern world.

REFERENCES:
www.scribd.com www.learnmarketing.net www.managementstudyguide.com