Internet Marketing (IM) is a part of the overall marketing process, system activities (marketing mix), aimed at analyzing business environment and promotion of the company, its business, using the power of the Internet and a set of additive measures to attract the target audience on the company website and making them customers and partners.
Internet marketing should be an integral part of the marketing system in the company and its methods often provide implementation of common “off-line” activities in the relatively new media environment. It is important that Internet, thanks to its interactivity, offers great new opportunities for company promotion. The task of development of the site must be attributed to Internet marketing, because it is preceded by an analysis of the company, its environment, the study of the target audience, so that design of the website must support the chosen business strategy of the company. We can consider the example of website of Dell company to prove this statement.
Website of Dell company is designed so that it focuses on different types of on-line customers. This approach is an example of segmenting the target groups. If we consider the site as a marketing system, it is suggested to consider this system as the union of the target groups for which the company has its own communicative purpose. On the Dell company website we can see special segments for different types of customers (computer users): for home users, for small and medium businesses, for public sector and for large enterprises.
In terms of marketing the site is a collection of digital content and tools for interacting with various target groups of Internet users. A set of tools that should be present on the site, to suit the goals set by the marketing department, is determined during the detailed planning of functionality when building a website. It must be said that with the help of Internet technologies can be implemented a significant number of business processes, associated with selling and buying.
The site can be viewed as a communicative marketing space, where interact both visitors, including representatives of target groups, and the company. The task of the marketer in the design of the site is to organize the space in such a way as to ensure the most comfortable conditions for the transfer of information to target groups. This task is perfectly achieved by marketers of the Dell company.
Speaking about the development of the site of Dell, we addressed issues such as segmentation and target groups. Now, passing the previous steps, we can create a functional structure of the site, which is based on the analysis, and then the logical structure of the site based on the anticipated and desired visitor’s behavior. So the functional structure of the site is a list of information materials and services to be provided on the site. It is necessary to make a list (table) of site features, with a description of the target groups and problems, which are solved by this function for each of the target groups.
The logical structure of a site is developed on the basis of the alleged behavior of target groups on the site. It is desirable to take into account the company’s marketing objectives with respect to the target group. In fact, the behavior of the visitor is a communication act in which the sender ( the creator of the site) conveys the message ( the information) on this website, and receives a response message from the recipient, expressed by his behavior on the site. Ideally, the visitor behaves in full compliance with the proposed model of behavior.
So it is necessary to formulate requirements for functionality of the site, which should be supplemented with design requirements and technological solutions. We can then move on to the phase of the technical specifications for the project and its implementation.
The main task of the Dell company site is attracting new customers and selling products, that is making money, and this requires that any investment put in the site must be payed off. This principle can be applied to everything: the costs of creating the site, its improvement and updating, as well as conducting marketing campaigns.
ROI is the method of calculating the efficiency of investment. We can calculate it for the initial investment that we are going to invest in the website development, as well as to calculate investments to improve the site, such as creating a new image, or for marketing company to improve sales. Today, the return on investment (ROI) is measured by conversions – how frequently visitors reach the company’s goals. These goals are the actions of visitors on this site (for example purchase). That is, the better the site promotes the active actions of visitors, the higher its profitability and ROI.
E-commerce is the transformation of key business processes through the introduction of Internet technology, aimed at improving efficiency. E-commerce is any business activity that uses the global information networks to transform the internal and external relations. E-commerce starts when a user can make a purchase with the help of his computer, just from home, so that e-commerce is a copy of the usual market, only on the Internet.
The main positive aspects of electronic commerce are:
- expansion of sales channels;
- integration of suppliers and buyers in one system;
- cost reduction in the complication “demand-supply”;
- higher level of customer service.
Since increase of sales is one of the main tasks of any commercial director, it can be achieved through market expansion. That is, electronic commerce is a way to expand market access to clients, and thus to increase sales.
When creating a site and delivery system, a retail company (such as Tesco) is no longer limited to the territory of the shop, it can even sell its products worldwide.
When starting e-commerce it is important to analyze the external environment, namely:
- The competitive environment in the market of e-commerce
- Experience of direct competitors
- Experience of international companies in the field of trade in the internet
- The dynamics of the market of e-commerce (B2C)
- Legislation on e-commerce.
Successful activity of firms in the market involves a comprehensive analysis of market environment and development on its basis of measures to provide active impact on the demand for goods. Analysis of market environment should include:
- analysis of market opportunities;
- analysis of consumers;
- competitor analysis.
It is understanding of consumers and markets, as well as strengthening cooperation with them, is now a key factor for successful e-commerce.
Chaffey D. (2009). E-Business and E-Commerce Management: Strategy, Implementation and Practice., 4th Edition. Prentice Hall.
Charlesworth A. (2009).Internet marketing: a practical approach. Butterworth-Heinemann
Hofacker Charles F. (2000). Internet marketing. Wiley
Reynolds J. (2004).The Complete E-Commerce Book, Second Edition: Design, Build & Maintain a Successful Web-based Business.
Siegel Carolyn F. (2004). Internet marketing: foundations and applications. Houghton Mifflin
Torado M. (2009). Internet marketing methods revealed: the complete guide to becoming an Internet marketing expert. Atlantic Publishing Company