The benefits and drawbacks of internet marketing

Our Company, Houston Incorporated has decided to grow into online sales. The target is to continue to sell our products in the shops located throughout the United States but also establish a presence on the World Wide Web.

Your company has recently decided to extend into online sales. The business wishes to continue to market its products in the shops located throughout the United States opportunities designed for retail sales and provide a written report to your supervisor which includes the advantages and disadvantages if marketing online,

As Marketing Supervisor, I was tasked to analyze online marketing opportunities available for retail sales. This article outlines advantages and down sides of internet marketing, the potential impact of online sales to the company, and the requirements for a successful online advertising campaign.

Marketing and selling goods online electronically is made possible by software packages that execute the key functions of your e-commerce software. This soft allows product display, online placing your order, and online processing.

Online marketing encompasses both e-business and e-commerce. E-commerce typical identifies transactions involving the exchange of money such as providing products to customers. E-business is a broader term which includes providing customers with descriptions and requirements for confirmed product.

Online marketing offer many advantages as this article shall show. Possessing a presence on the World Wide Web offers the possibility to reach customers not only over a nationwide level but internationally. Conducting business 7 day weekly and 24 hours a day is possible with online marketing. The gathering and research of information get via online marketing is possible. This information may be used to improve marketing strategies both online and in traditional retail section. The advantages considerably outweigh the down sides.

Increase sales, increased brand identification coupled with the reduced cost of operating online brings about increase revenue. These are just a few of the entire impact of online marketing.

Executing a thorough online marketing plan includes virtually the same procedures and strategies as traditional marketing. It also requires the establishment of your website for product display, online purchasing, and online payment systems to process obligations.

The decision to grow into online sales is justified by this research. Growth into online sales is a more cost effective mean of growing the company. The recommended model is integration of the original retail portion with the new online arm. This is in opposition to establishing a simply online business. The current marketing strategies can be changed to include the online portion and used to market the website.


"The web is becoming the city square for the global community of tomorrow. " That estimate was related to Costs Gates, Cofounder of Microsoft. Tomorrow has come and regarding to articles on Reuter's website, "Online retail sales in the United States could reach $248. 7 billion by 2014, growing 60 percent from 2009. "

As Marketing Director, my job is to do general market trends and develop market strategies. This report will outline the advantages and drawbacks if internet marketing, advantages and drawbacks if marketing online, the impact of online sales to the business, and the requirements for a successful online marketing campaign.

The goal of online marketing, much like traditional marketing, is to converse and provide value to the customer and manage interactions with customers that benefit the business and stakeholders. Internet marketing includes both e-business and e-commerce. E-commerce's typical identifies transactions involving the exchange of money such as offering products to customers. E-business is a broader term which includes providing customers with information and technical specs for confirmed product. Marketing and providing goods online electronically is made possible by software programs that execute the key functions of the e-commerce software. This soft enables product display, online ordering, and online repayment processing.

The advantages of online marketing, like the ability to attain a larger market, significantly outweigh the cons. Online selling tends to be very competitive and could necessitate lower costing. This is mostly of the disadvantages. Establishment of a globally existence and increased sales are ways that the business can be impacted.

However, having an online presence does not guarantee success. It needs a comprehensive marketing strategy aimed at appealing to new customers to your website. Internet marketing has its process and tools that contribute to the achievements of marketing goals and targets.


Research Findings


Similar to traditional business, online marketing presents many advantages and disadvantages. However, the benefits of online marketing significantly outweigh its disadvantages. Internet marketing can increase the geographic reach of the business by being able to access customers in market segments where in fact the company does not have a physical existence. Within the ecommerce world, conducting business around the world, 7 days a week, 24 hours a day is a reality. (Hossein Bidgoli, 2002) INTERNET MARKETING or e-commerce creates the ability to sell virtually any product that may be sold in a normal retail environment. Nights, weekends, holiday seasons, and time areas are no obstacles to e-commerce. Online marketing can also reach customers that for various reasons cannot personally visit a traditional shop. Another advantage of e-commerce is the capability to gather additional information about the client via tools such as cookies, email, and online surveys. This information can be used to personalize marketing efforts in a way that can lead to higher trade amounts. E-commerce also provides increased flexibility for customers. Customers can make purchases without having to leave the comfort of their homes. The customer does not have to deal with the hassle of parking or the stress of losing contact with their small kids shown by traditional retail methods. Shopping responsibilities can be completed from the security of these homes with a few clicks of an mouse. Naturally, more sales are the initial thing people thing about when they consider online market. Market research shows that online sales are trending up regardless of the current depressed retail market. . Income generated by online businesses and the web part of traditional retail businesses surpass $96 billion in 2006, up from $86 billion in 2004, in line with the U. S. Census Bureau. An added advantage of online marketing is lowered cost. Traditional retail businesses have overhead costs that associated with online marketing. Included in these are utilities, insurance, store rent, and labor. Lower over head cost generally bring about lower overall cost and increased income. Therefore, online expansion will give the company a globally existence at a relative low priced.


Online shopping is not attractive to all consumers. They cite the increased loss of social contact experienced when shopping with others. Even though many analysts do not see any important differences between your traditional and online buying behavior, it is often argued that a new step has been added to the web buying process: the step of creating trust or self-assurance. (Constantinides, 2004) Many individuals are concerned with the personal privacy and security issues associated with conducting business online. Almost 95% of Users have declined to provide private information to Sites at one time or another when asked. (Otto & Chung, 2000) Credit card fraudulence, unwanted solicitations, and use of the information for other than its intended purpose are a few of the reasons cited. The issue in bringing in customers is another downside to online marketing. That, in conjunction with increased competition because of the ease of comparative shopping greatly lessens the appeal of online marketing. Online consumers can easily gain access to information from other online businesses and make smarter decisions. In fact, some websites are designed solely to the goal. Therefore, online pricing is very competitive. On top of that, online marketing does not afford the consumers the blissful luxury of examining and obtaining a feel for the product quality and fit of goods sold online and generally require owner to get liberal return and refund regulations. The lack of after sales service is another concern of online consumers. Time also is an issue with online marketing for the reason that consumers are not able to take immediate ownership of their purchases and are faced with added charge for faster delivery.

Potential impact of online sales to the business:

The best impact to the company can be the establishment of any globally presence. This means company expansion at relative low cost. . Online marketing does not require the overhead cost associated with retaining a "brick and mortar" store. This leads to less expensive, increased efficiency and greater profit percentage. Another potential impact, online sales boosts in-store sales. Having a web based presence causes increased brand acceptance and consequently causes increased in-store sales. Conversely, not having an online existence means loss of potential valuable customers. Internet marketing creates the possibility to interact with customers. Exchange of information facilitates product and process improvement and can result in greater customer satisfaction. It also permits greater flexibility for the reason that website information such as price, product availableness, and advertising can be commonly changed in response to market conditions. Information gathered via online sales information can be utilized when considering future development of the traditional retail operations.

Requirements for a successful online marketing campaign

Developing a successful online marketing campaign comprises most of the same operations and procedures found in traditional marketing. The company should establish goals, goals, strategies and methods much like traditional marketing. Also, market research is required. When formulating objectives, strategies, and techniques for online marketing product screen it is very important that such customers requirements as ease of use, fast access to product information, and effective syndication networks including order tracking for transparency is tackled. Understanding consumers' motivations and limitations to look online are major concern in making adequate tactical, scientific, and marketing decisions. (Monsuwe, Dellaert, & De Ruyter, 2004) That is part of identifying your market and identifying how to reach it, an extremely critical step. To entice customers, businesses need to provide energetic content, keep their sites fresh, and also to set up security devices to safeguard their customers' privacy and hobbies. (Wei, Moreau, & Jennings, 2005) Customer retention also needs to be included in any successful online online marketing strategy. Retaining online customers will depend on the entire experience when going to a website, which include factors such as perceived value and trust (Pitta, Franzak, & Fowler, 2006; Wang & Mind, 2007). Furthermore, every web business must be able to accept online payment. Customers need a level of self-assurance with your website and business when making on line payment. Integration between the e-business arm and the traditional business segments really helps to promote self confidence. (Homosexual, Charlesworth, & Esen, 2007) The reputation of the traditions retail environment can be long to e-commerce. Furthermore, an online occurrence increased the marketability of the original business. Traditional organizations can adopt a range of strategies to combine offline and online market programs to derive synergies. For example Barnes and Nobles' e-business model overlaps its traditional brick and mortal business design. Whether or not the merchandise is sold online or in a physical retail store, the warehousing procedure is the same. (Affluent, 2008) Retail companies also needs to incorporate offline and online operations such as allowing customers to order online for pickup at stores. (Steinfield, Adelaar, & Liu, 2005) Last but not least, print and word of mouth advert will be had a need to draw in customers to the web page.


Based on research data, the company should expand in to the online sales industry by creating an ecommerce arm of the traditional retail operation. Enlargement into online sales is a more affordable mean of growing the company. The recommended model is integration of the traditional retail section with the new online arm. That is in opposition to establishing a solely online business. Research suggests that organizations should tailor their e-commerce approaches to improve service to existing customers in addition to seeking clients and markets. (Adelaar, Bouwman, & Steinfield, 2004) Integration is beneficial in that recognized shopping risks are lower whenever a company also provides a physical location. Integrating online and offline functions adds additional expense saving procedures such so as placing your order online for pick-up at physical location. . The current marketing strategies should be improved to include the web segment and used to promote the website


There are benefits and drawbacks to online marketing. While online marketing presents an opportunity for the company to extend its market nationally, even internationally, online shopping is very competitive, as consumers have access to comparison shopping. Furthermore to reaching new market segments, online marketing can also improve associations with existing customers. To reach your goals, ecommerce websites must be properly designed such that it is easy to use, engages the client, and a pleasurable and trusting shopping experience. It must negate all identified shopping risks such as concerns about supplying financial or personal information, and after sales concerns such as refunds and after-sale service. Marketing strategy formulation for ecommerce businesses are very much like traditional marketing. Market research, goals, targets, strategies and techniques will be the making of an effective online marketing campaign. Analysis of the study data reveals that integration of the traditional offline procedure with an ecommerce business segment is the best method of creating an online presence.

Annotated Bibliography

Adelaar, T. , Bouwman, H. , & Steinfield, C. (2004). Enhancing customer value through click-and-mortar customer experience. Telematics and Informatics, 21, 167-182.

This article talks about how traditional shops can incorporate online marketing to increase geographic reach and improve romantic relationships with existing customers of physical stores. Dr. Thomas Adelaar, Associate Professor, University or college of Amsterdam Business Institution. Ph. D. in Advertising and Information Studies, Michigan Status University. Honours and Honors include; Winner of the Graduate Office Scholarship or grant "Best Ph. D. Research Newspaper" in the Dept. of Telecommunications, Information Studies, and Marketing, MSU (2004). Dr. Adelaar currently has 7 publications in Academic Publications. Charles Steinfield is a professor and seat in the Office of Telecommunication, Information Studies, and Multimedia at Michigan Express University. In addition to his faculty position, Steinfield participates with the MSU Eli Comprehensive School of Business Information Technical. Management Program. His research focuses on the organizational and public impacts of new communication systems.

Constantinides, E. (2004). Influencing online consumer's habit: The net experience. Internet Research, 14(2), 111-126.

Dr. E. Constantinides conducted research demonstrating that online marketing can increase business for companies at their physical retail locations. Dr. E. Constantinides is and Helper Teacher of Marketing, Netherlands. His research activities give attention to strategic and commercial areas of Ecommerce and E-media, and he's an associate of the Scientific

Committee of the SOCIAL MEDIA MARKETING Research Centre.

Gay, R. , Charlesworth, A. , & Esen, R. (2007). Internet marketing. NY: Oxford University or college Press.

This book has an overview of advantages and cons of online marketing as well as the techniques that can maximize revenues. Richard Homosexual is a teacher at

the Newcastle Business College, North Umbria University. Alan Charlesworth is a Senior Lecturer in marketing and emarketing at the University of Sunderland. Rita Esen is a

Law Specialist and Going to Lecturer at Durham School.

Hossein, B. (2002). Electronic commerce: principles and practice. Amsterdam, HOLLAND: Academics Press.

This e book is a four-part summary of electronic business. The book offers a balance of theories, applications, and hands-on materials. Dr Hossein Bidgoli is a Teacher of Management Information Systems. Institution of Business and Community Administration California Talk about University or college, Bakersfield, California

Monsuwe (2004). , P. , Dellaert, B. , & De Ruyter, K. (2004). What drives consumers to shop online? A books review. International Journal of Service Industry Management.

Using the technology acceptance model framework, the writers conducted an assessment of books and identified website characteristics such as simplicity and effectiveness as well as personal consumer qualities as critical factors for online shopping. P. Monsuwe is a teacher at Maastricht University, The Netherlands. His research focuses on the consequences of multimedia on strategy and decision-making processes, such as commercial environmental management.

Otto, J. , & Chung, Q. (2000). A construction for cyber-enhanced retailing. Electronic Market segments, 10(3), 185-191.

This article identifies advantages and down sides of online retailing for companies with existing brick and mortar retail locations, and a construction for analyzing if the company should engage in online retailing. Q. B. Chung is an Associate Teacher at Villanova School. He acquired a PhD in Management from Rensselaer Polytechnic Institute, as well as an M. B. A. in Management Information Systems. He has over twenty-two posted journal articles, numerous posted books which is a seminar presenter. J. Otto is an Assistant Professor numerous publications affecting Management Information Systems and Procedures Research and Management Knowledge.

Pitta, E. , Franzak, F. , & Fowler, D. (2006). A tactical approach to building online customer devotion. Journal of Consumer Marketing, 23(7), 421-429.

The article integrates previous research to sketch the conclusion that customer devotion to online websites is determined by the understanding of value as well as mental factors such as trust. Danielle Fowler, Ph. D. can be an Assistant Teacher at the University of Baltimore. She has many awards and grants like the John and Margaret Thompson Professorship in Management Information Systems, and the President's Coaching and Learning Initiative Competition. Frank Franzak is a teacher with Monash University or college and Director of Information Systems Honors Program.

Steinfield, C. , Adelaar, T. , & Liu, F. (2005). Click and mortar strategies seen from the web. Electronic Markets, 15(3), 199-212.

The authors examined shop websites and found that few involved in online and offline integration such as allowing customers to order products online for pickup at physical store locations. Dr. Adelaar currently has 7 publications in Academic Journals. Charles Steinfield is a professor and seat in the Section of Telecommunication,

Information Studies and Marketing at Michigan Point out University. In addition to his faculty position, Steinfield participates with the MSU Eli Broad College or university of Business Information Tech. Management Program. His research targets the organizational and public influences of new communication technology.

Wang, F. , & Brain, M. (2007). How can the net help build customer romantic relationships?

Information & Management, 44(2), 115-129.

The creators conducted empirical research to identify the factors critical for building customer human relationships online and discovered that satisfaction, trust, and transitioning costs established whether a customer would continue by using a website. Dr. Milena Brain is an

Associate Teacher of Information Systems and the Affiliate Dean at the DeGroote University of Business, McMaster College or university, Canada. Focusing on eBusiness and Human Computer Interaction, she's released over 50 documents in academic journals, books and conferences. Her research interests include trust and adoption in electronic digital commerce, software design, mobile commerce, identity fraud, cross-cultural issues in electric commerce and individuals computer interaction, e-retailing, and web navigation. Dr. Fang Wang can be an Assistant Professor of Marketing at the School of Business & Economics, Wilfrid Laurier College or university, Canada. Her research hobbies include e-commerce,

e-marketing and marketing strategy. She has published in journals such as Journal of Consumer Marketing, Journal of Comparative International Management, Internet Research, and Journal of Business Strategies.

Wei, Y. , Moreau, L. , & Jennings N. (2005). A market-based approach to recommender

systems. ACM Orders on Information Systems, 25(3), 227-266.

The research defined in this article uses simulations to demonstrate the potency of recommender systems for personalizing customer encounters and customer retention.

Yan Zheng Wei is Director from the Team of Broadband Wifi Management, Shenzhen, China. Dr. Nicholas Jennings can be an Assistant Professor at THE INSTITUTION of

Electronics and Computer Knowledge, School of Southampton, UK.

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