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Internet Marketing

Decent Essays

Since its release in 1991, Internet revolution has changed the way companies do business and customers & consumers buy products. Chaffey et. al. (2003) defines Internet Marketing as the use of Internet to achieve marketing objectives and support the modern marketing concept. Internet opens a world of opportunities to the organizations as well as customers. It gives customers a much wider choice of products, services and prices from various suppliers. For organizations, it gives opportunity to widen horizons by entering new markets and offering new services thereby competing with larger business. Internet marketing may be used for business to business or business to consumer environment (Chaffey et al., 2003). Location-free and lower …show more content…

Retailers in UK must take advantage of increasing number of internet users. Since the location is no more important, products can be provided at lower prices. New entrants can take advantage of financial freedom by developing organization as per logistical demands for a new format. Niche Markets can reach more new customers due to global presence. Hamleys toy shop in London for example, gets majority of its sales on website from US customers. By use of website a retailer can display any number of products. Also firms can collect rich data from customers and personalize service for them. Advantages to consumers include 24 hour shopping. Thus they can shop anytime and no longer have to wait in the queues. Moreover, some goods like music and software can be received instantaneously (Afuah & Tucci, 2003).

Although there are many advantages of online shopping, there are a few disadvantages as well. Online shopping cannot provide the social experience. Most of the consumers like to see, touch and test products before buying. Online distribution doesn’t allow good display of products. Bad quality images and slower downloading time induce consumer to end site. But with ever improving technology, this problem would be eradicated soon. Manufacturers may face conflicts with existing distribution channels if they sell products directly online (Web 1).

Security is one of the major concerns in use of internet for online transactions.

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