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Emergence of Global Internet Marketing –

Name: Vipul Shah


Student ID: 77120133408
An Overview

ACKNOWLEDGEMENT

This work is an outcome of continual studies and intellectual support from various sources. It is
therefore almost impossible to express adequately the debts owed to many people who have
been instrumental in imparting this work, a successful status. The best and worst moments of
my MBA journey accompanied with hardships, frustration, encouragement, and trust have been
shared with many individuals.

I express my gratitude and appreciation to those who have contributed directly or indirectly
towards obtaining my MBA degree and I cherish the virtual two years spent with all the students
of my 2020 – 22 batch. During this pandemic we have learned and supported a lot I know in
coming year we all would come up with flying colours.

The purpose of this acknowledgment will be incomplete if I fail to appreciate my parents Ms.
Deepa Shah, Mr. Vipin Shah, my loving sister Diya Madnani, and her family. Their love,
support and motivation provided me inspiration and encouragement and were my driving force
to successfully complete my work.

I would also like to give my sincere thanks to the Embassy of Brazil, His Excellency André
Aranha Corrêa do Lago, Brazil's Ambassador to India, the Agricultural Attaché office, and
my head at workplace Mr. Angelo Mauricio, who offered me so much advice, patiently
supervised me, and always guiding me in the right direction. I am fortunate to have him as leader,
mentor, problem solver and a listening ear.

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EMERGENCE OF GLOBAL INTERNET MARKETING – ORIGIN, NEED,
CHALLENGES & OPPORTUNITIES
An Overview

Undertaking By Candidate

I declare that project work entitled “Emergence of Internet Marketing: Origin, Need,
Challenges & Opportunities – An Overview” is my own work conducted as part of my
syllabus.

I further declare that project work presented has been prepared personally by me andit is not
sourced from any outside agency. I understand that any such malpractice will have very serious
consequence and my admission to the program will be cancelled without any refund of fees.

I am also aware that, I may face legal action, if I follow such malpractice.

Name: Mr. Vipul Shah


Student ID: 77120133408
Place: New Delhi
Date: 15th May 2022

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An Overview

Table of Content

PARTICULARS PAGE
NO.
CHAPTER 1 – Introduction to The Internet Marketing 4 – 20

✓ What is Internet marketing? 6

✓ The History of Digital & Internet Marketing 7

✓ Types of Internet Marketing used globally 10


CHAPTER 2 – Literature Review 21 – 28

CHAPTER 3 – Theoretical Framework & Methodology 29 – 40

✓ Global Internet marketing Framework 29

✓ Global Business Models 30

✓ On-to-One Approaches 31

✓ Appeal to specific Interests 31

✓ Niche Marketing 32

✓ Geo-Targeting 32

✓ Factors Affecting Internet Adoption 32


CHAPTER 4 – Opportunities and Challenges in Global Internet Marketing 41 – 50

CHAPTER 5 – Conclusions 51 – 54

CHAPTER 6 – Bibliography 55 – 58

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An Overview

Chapter 1
Introduction to the Internet Marketing
Current pandemic situation has been highly impacting lives of many people and mainly those
who were owner of small stores. This unprecedented time has been really very hard resulting
to mass layoffs and closure of shops/ shopping malls/ eating joints etc. So, this has turned
the life bottom side up with the emerging era of Internet marketing. With high penetration of
digitalization complete schools are based on e-learning software’s, doctors have begun
delivering telemedicine. This digital empowering velocity has increased customer trust and
aligning to new culture of Work from Home which has benefitted IT companies a lot.

Going to the basics, in recent years, ‘marketing’ has undergone substantial changes and
‘internet’ has been a major driver in this transformation process (Petkus Jr, 2010). The Internet
can simply be defined as “a virtual network that connects various computer systems across
the world. It also includes the network infrastructure for connecting servers and the
communication links that are used to transfer vast amounts of information on the world wide
web" (Stansfield, 2004).

Introduction of internet has influenced the performance and structure of many industries such
as travel and tourism (Lang, 2000; Standing et al., 2014), education (Kanuka, 2007; Lenhart
et al., 2001; Singhal, 1997; Vasarhelyi & Graham, 1997), healthcare (Bhatt & Bhatt, 2017;
Chiuchisan et al., 2014; Kulkarni & Sathe, 2014; Yuehong et al., 2016), retail (Balaji & Roy,
2017; Gregory, 2015; Katros, 2000; Shankara et al., 2015), banks (DeYoung,
2001; Siaw & Yu, 2004), etc.

The Internet has established new communication norms and procedures, which in turn is
influencing marketing practitioners to follow suit (Scott, 2009). Several fields related to sales
& marketing have been greatly revolutionized by technological innovations driven by the
internet adoption. Halloway states that "the internet recognizes the importance of
communication which acts as an interface between a business and its customers, thus playing
a key role in all elements of the marketing mix" (2004).
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CHALLENGES & OPPORTUNITIES
An Overview

One of the important points on embracing the Internet to the center stage of marketing is that
it is not just a new promotion channel, a new type among other traditional marketing channels.
On the contrary, it is a new communication medium which has brought about a tectonic shift,
a turning point around a digital business model, which in turn is reconceptualizing the basics
of modern marketing (Wind & Rangaswamy, 2001). This new concept is invariably impacting
the new communication technologies that have fostered a new dynamic environment resulting
in a customer-oriented, bottom-to-up, reciprocal process.

Internet marketing, also known as digital marketing, can include usage of interactive virtual
platforms to promote and sell goods & services. Internet marketing has resulted in incredible
gains for companies by setting up speedy processes, ensuring cost effectiveness, providing
flexibility and path for unprecedented global reach. On the other side, this new way of
marketing also has its own set of flaws, security & privacy concerns, lack of personal connect,
etc. This project aims to determine the impact of internet-based communication technologies

on traditional marketing practices. The study is focused on understanding the concept of


internet marketing and its origins, different channels used for internet marketing, and then

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CHALLENGES & OPPORTUNITIES
An Overview

continues to discuss the opportunities and challenges in the field.

What is Internet Marketing?


Internet marketing is a collection of tools and methodologies which uses the internet to
promote products and services. Dave Chaffey (2000) defined internet marketing as “The
application of the internet and related digital technologies to achieve marketing objectives”.
Later, to include an important aspect of customer relationship in internet marketing, Kotler &
Armstrong (2010) defined it as “a set of activities and measures to propagate products &
services and build mutually beneficial relationships with customers digitally”. Burrett (2008)
further explained the concept of internet marketing as “a mechanism to carefully target
customers and get them to communicate with you while they are engaged with the most
personal, intimate medium ever invented”.

Internet marketing includes a wide range of elements due to availability of multiple channels
and methods of marketing as compared to traditional business marketing. Internet marketing
which is also referred to as digital, online, web or e-marketing. Like any other marketing
channel, it also involves an advertiser (individual or company) who provides the
advertisements and a publisher who integrates advertisement into its online content. Other
potential members in internet marketing can be advertising agencies who help in generating
and placing the ad copy, an ad server which technologically delivers the ad and tracks
statistics, and advertising affiliates who do independent promotional work for the advertiser.

In other terms, internet marketing can be detailed out as “application of digital technologies

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An Overview

which form online channels such as webpages, electronic


mails, and digital platforms to contribute to marketing
activities with a goal to achieve profitable acquisition and
customer retention. It can be obtained by knowing the
customer better and then delivering targeted
communications and online services to match their
individual needs" (D Chaffey, 2007). As per this definition,
internet marketing is significantly different from traditional
offline marketing as it revolves around the interaction and
relationship building with end customers.

The History of Digital &


Internet Marketing
Although it is believed that the ‘World Wide Web’ was
created by scientist Tim Berners- Lee in 1989, the origin of
the internet goes back to the 1960's when the Soviet Union
first launched the Sputnik I satellite (Dickey & Lewis, 2012).
Reacting to the incident, US established a department of
Defense Advanced Research Project Agency (DARPA)
which ultimately worked on ARPANET (U.S. Advanced
Research Projects Agency) in the late 1960s. This was an
experimental project which began with four host computers
which let researchers communicate and share information
with each other, which later became known as the internet.
Since then, it has contributed to the growth and
development of science and by the late 1980s it was
adopted by many federal and educational institutions
around the world (Ferguson, 2008).

When the email was invented, it was majorly used by the military and universities as a

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CHALLENGES & OPPORTUNITIES
An Overview

communication medium. By 1979, CompuServe - a major U.S.


commercial online service started offering technical services and
emails to personal computer users. For the next two decades,
internet usage was dominant as a communicative tool for
academic functions which later led to discovery of its commercial
capabilities and its commercialization. As (Newman, 2008)
states: "until the mid-1990s, the internet population mostly
included research and academic communities but with the
commercialization it soon gained mass adoption and the
business communities quickly started taking advantage of the
potential benefits it had to offer".

Berners-Lee created the first web browser “World Wide Web”,


which later came to be known as ‘Nexus’, though it did not get
much popularity. 1n 1993, the national center for
supercomputing applications at the university of Illinois released
a graphical web browser ‘Mosaic”. It was much easier to install
and use. After this use of the internet began to expand. With
increasing the number of internet users, business owners
started to appreciate the commercial prospects of this new
platform for business to consumer (B2C) commerce.

For creating ‘the first internet’, the credit was given to the national
science foundation, which opened its internet for business
purposes in 1991. In 1994, WebCrawler introduced a search
engine which was capable of indexing titles and headers of a
web page and its whole content. Then another search engine
called ‘Lycos’ came to rank search results based on the content
relevancy. The search engine Google was released in 1996 and
in 2003, Google initiated its AdWords helping the marketers to
provide ads according to the user requirements.

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An Overview

Even though there might not be a consensus on when internet marketing gained prominence,
most reviewers refer to the same around 1994. So, it is widely accepted that "first significant
commercial usage of Internet marketing began with the display of banner advertisements on
web pages and the appearance of Internet-based shopping centers (the electronic equivalent
of a physical storefront) such as Amazon.com".

Though the present involvement of internet marketing in business is now high, the actual
timeline of internet marketing adoption is quite short. Here is the brief timeline of events which
transpired to commence the internet marketing where it is in the present state.

Initially, the internet was not intended to be used for any marketing activities, rather it acted
as a medium to exchange information and emails. But soon it caught the attention of marketing
practitioners’ who identified the potential in the platform which helped them grow their
business.

Statistics make it clear that this new marketplace, internet marketing, has had an astonishing
rate of growth. So amazing is the growth rate of this new paradigm of marketing that it is hard
to believe how young it is. In fact, in 1994, spending for internet marketing totaled nearly
nothing, but increased to over $300 million in 1995. After a decade later, marketing spending
and internet marketing business has exploded to nearly $500 billion (according to Forrester
Research). Today, it is hard to believe in having an organization which doesn‘t has some kind
of online presence.

This brief historical background suggests that the acceptance of internet marketing is growing
day by day. Even though the timeline tells that it’s a new marketing technique, it has brought
revolution in the field of marketing faster than any other marketing technique.

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An Overview

Types of Internet Marketing used Globally

The objective of internet marketing is to


create, accelerate, and transmit the product
and service value from the producer to
consumer through online networks. For a
business, the goal is to find the best way,
which results in maximum two-way interaction
between producers and customers and better
ROI for the company.

There’s a variety of internet marketing types


that consists of different tactics and strategies,
and these are introduced and explained in
brief below. Most of these marketing types
complement one another and are most effective when used collectively together.

ONLINE DIGITAL ADVERTISING: One of the most used techniques of internet


marketing revolves around online advertising/promotion. In this method, web space made
available by the publishers is used to put marketing messages & advertisements to attract the
targeted users. Some of the key objectives of online advertising is to increase the sales of the

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An Overview

products & services and build brand awareness which in principle is like the other offline and
online marketing tactics.

Online advertising activities can include displaying promotional messages and/or


advertisements on the internet customer’s digital screens (Guguay, 2012) and refers to
"carefully crafted messages placed on third-party websites, search engines and web
directories which are targeting the intended users through the use of Internet" (Ha, 2008).

Online advertising is quite like the television advertisements but is


much more creative to engage the internet users. On the contrary
these advertisements do not force the intended users to pay
attention to the promotional messages but tries to persuade or
attract them to do so, because instead of coming in
breaks/intervals these are placed alongside or among other
non-marketing contents. This in turn empowers the internet
users to click on the ads or completely ignore it.

Online advertising implements various


methodologies to showcase a promotional
message on the internet. With the emergence of newer technology,
innovative ways of practicing the art of digital advertisement are being
developed. In addition to the regular images, pictures, logos, etc.,
now-a-days other lucrative methods are being utilised in this field which
includes interstitial banners, pop-up & pop-under notifications, map advertisements and
floating banner advertisements.

IN-GAME ADVERTISING - In-Game advertising can be explained as the inclusion of


product or brand promotion within a digital game. The gaming application allows paid
promotions and advertisements to be placed either in a subtle manner or in the form of an
advertisement banner. As per the new trend, blended, adaptive and realistic advertisements

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An Overview

are now displayed as part of the game itself.

VIDEO ADVERTISING - This is a type of new age


advertising in terms of digital/online means where
advertisements are available on online videos e.g.,
YouTube videos. This type of internet marketing has seen
a rapid increase in popularity over the recent time. Online Video Advertising usually consists
of various types: Pre-Roll advertisements are ones which play before the video is watched,
Mid-Roll advertisements play during the video, and post-Roll advertisements which play after
the video is watched. The success of campaigns is measured by the conversion rate and
brand awareness.

EMAIL MARKETING: It is the second most popular type of internet marketing which uses
electronic mail for sending promotional/marketing messages to internet users. It has been
identified to be one of the most effective and cheapest methods to connect with the intended
users. It offers multiple benefits for advertisers by promoting their products or services,
developing customer relationships, increasing brand loyalty, and eliciting useful feedback
from the customers.
It has the capability to achieve ROIs as high as 3,800 percent, despite being one of the oldest
forms of internet marketing. On top of it, there are various possibilities on the types of emails
that can be sent and there is no limit on the number. Advertisers have the choice to choose
from a laundry list of newsletter campaigns, confirmation emails, thank-you or follow-up
emails, and notifications about product features & updates.

Several researchers have highlighted the privileges of conducting email marketing in the
digital space (Bawm & Nath, 2014; Hartemo, 2016; Mullen & Daniels, 2011; Pavlov et al.,
2008; Rettie, 2002). In this regard Peppers & Rogers (2000) points out the benefits to "high
response rates'' and "low costs" of email marketing and thus believe that these advantages
"are rapidly turning email marketing into an invaluable tool". Despite these benefits email
marketing also suffers from some deficiencies. One of the key issues is that customers can
easily choose to overlook the promotions mail and even some email clients can help them to

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An Overview

put these in the Spam folder.

Hence it requires some action on the part of marketers to reduce the possibility of customers
ignoring promotional emails. One of the ways to achieve it is by not relying solely on email
marketing. Companies can choose to deploy various marketing channels and methods
available to succeed in their goals. This can also be achieved by solving the innate challenges
by obtaining permission for email marketing. The concept of "Permission marketing" as
popularly known has been coined by (Godin, 1999) in which the email recipients are first
requested for their permission to send marketing communications from the commercial
marketers. So, until the recipients have expressed their explicit consent, they will not receive
marketing emails. This ensures relevant promotional content reaches the potential customers
through emails.

Further, this way of communication can be perceived by some recipients as bothersome,


irritating especially new potential customers. Success parameter for email marketing solely
relies on visual and language used in the promotion message. Communication style is another
important factor which determines the cultivability and relatedness of the email message. A
casual conversation can create a warmer and gentle inviting feeling in the reader's mind as
compared to a more formal conversation.

There are clear indications that using graphic visuals which are relevant to the message is far
more effective than simple texts. For combinations, it's suggested that to maximize
effectiveness, using a graphic visual alongside casual language. While in contrast, using no
visual appeal and a formal language style is seen as the least effective method.

SEARCH ENGINE MARKETING (SEM): It is one of the most effective internet


marketing methods in the context of Business-to-Business market (B2B) and D2C (Direct to
Customer) space. It aims to create the brand presence and helps in conversion of a lead using
paid methods.
In simple terms, SEM is a form of marketing that seeks to promote a business website or
content by increasing their visibility in search engine result pages using either paid placement

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An Overview

(by purchasing ads on commonly used SEM services like Google AdWords and Bing Ads),
contextual advertising, and paid inclusion, or using free search engine optimization
techniques. These paid advertisements are usually indistinguishable from organic search
results, except for a small “Ad” label. They appear at the hotspots of the search
page, giving instant visibility and brand awareness to the buyers.

PAY PER CLICK (PPC): Pay-per-Click advertising falls under the SEM
umbrella when it applies to ads on search engine results pages, but it can also
be extended to affiliate marketing and ads on other web pages.
When a company follows this type of model, they only pay for the number of clicks that
are received on the ad, thus making it an attractive option for businesses that have tighter
budget constraints. However, in this model advertisers are now charged in different ways
depending on their marketing objectives. Some of the ways to charge include cost per
thousand impressions, cost per view, and cost per action.

SEARCH ENGINE OPTIMIZATION (SEO): It is a natural process and unpaid


process of enhancing the awareness and visibility of a business or web page in the search
engines. The aim is to rank a web page higher in the search result, which leads to more
chances of being viewed by a potential customer. In today's time, it is hard to imagine a
business which does not have an online presence through its own website. However, just by
creating a well-designed website does not necessarily guarantee enough customer visits on
the web pages.

To achieve this goal, SEO, which is


another type of internet marketing,
should be adopted. In fact, search
engine optimization is one of the
major ways of accompanying online
advertising. SEO is the subtle art of
optimizing the web content to ensure
that the company’s web page is

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An Overview

featured as one of the top results when relevant keywords are searched in the engine.
Statistics suggest that more than 75 percent of users never visit the second page of a search
engine, hence refining the SEO strategy is crucial for a company that wants to generate more
business from organic searches.
Parikh & Deshmukh (2013) offer this definition: "Search engine optimization can be explained
as a number of strategies and tactics used to improve the amount of web traffic by obtaining
a high-ranking position for a relevant keyword in the search results page of a search engine
(SERP)". Search engines (specifically Google) use web crawler bots (sometimes called
spiders) to study the web content and build an online index of the information available online.
When a user enters a keyword in the search engine, it will provide a list of relevant content.
There are two broad types of SEO techniques: On-page and Off-page. On-page SEO refers
to the changes made directly to a web page in order to increase search engine ranking. It can
involve optimizing web code, content quality, and content structure. Off-page SEO is a
practice that can be accomplished outside of the web page itself, by creating backlinks,
improving link relevancy, and enhancing social signals.
The importance of search engine optimization lies in the fact that customers most of the time
use engines as a major gate to get around on the internet. So some marketing techniques
have been developed to enhance the rank of intended business websites in the search engine
results. The purpose of SEO strategies is to place a given website among highly listed entries
returned by search engines which in its turn produces more traffic. So, "Web site owners,
webmasters and online marketers want search engines to send traffic to their site. Therefore,
they need to make sure that their sites are relevant and important in both the eyes of the
search engines and the users" (Stokes, 2011).

AFFILIATE MARKETING: Affiliate marketing is revenue sharing marketing methods


and refers to the process of gaining a commission by promoting products or services of
another company. With affiliate marketing, a company can decrease their marketing workload
by outsourcing it to external service providers. Also, in this method two or more website
owners can form relationships to increase mutual financial benefits.
With respect to its definition, "affiliate marketing is defined as a web-based marketing practice,
often using automated systems or specialized software in which a business rewards their

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An Overview

affiliate for each visitor, customer, or sale which is brought about as a result of affiliate's
marketing efforts. In most cases, the reward is monetary in the form of a monthly check. Most
well-designed affiliate programs are easy to implement, require little or no setup,
are free, and can instantly generate a new source of revenue for you"
(Brown, 2009).
Offline affiliate marketing has been used in a number of businesses
to promote products and services. But the online environment has
extended the prospect of deploying this method drastically. The
reason is that referral or affiliates are very easy to track online. This
method of internet marketing is widely used to promote websites and
affiliates are compensated for their effort to attract every single "visitor,
subscriber, or customer". These affiliates sometimes are considered to be "an
extended sales force" at the service of a website. Because affiliates are rewarded based on
their performance, affiliate marketing is also known as "performance marketing" (Stokes,
2011).
However, despite its numerous benefits, affiliate marketing is perceived to be not a safe and
easy means of internet marketing because of lack of reliability in terms of the number of new
customers an affiliate can generate. As a result of risk and bad affiliates, the business might
face exploitation in terms of claiming commission by the affiliates that are not honestly
acquired. Proper legal means can provide protection , yet there is limitation in
recovering losses. Businesses that choose to use this type of internet
marketing should be aware of such risks involved and look to associate
with affiliates in which the proper rules are discussed between the
involved parties to minimize the risk involved.

SOCIAL MEDIA MARKETING: Social media has changed


every part of our life dramatically. In fact, in the 21't century, it has
become a medium of expressing our belief, ideas and manner in an
absolutely new way. Apart from changing the way we conduct our social life, “social media
provides world of marketing with unprecedented opportunities and also have a huge effect on
businesses, where they have realize that without a correct plan and social media strategy they
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An Overview

have no chance to stand out in the rapidly changing digital freedom" (Saravanakumar &
SuganthaLakshmi, 2012).
Social Media marketing is the use of social media platforms to improve customer engagement
and promote a brand. While it doesn’t necessarily drive sales, social media marketing
increases engagement, builds links, and expands brand awareness. Social Media marketing
has become the ultimate game- changer in the marketing domain over the last decade—one
that brands cannot afford to overlook. Especially Instagram is the most used social media
platform and is great for marketing. There are a variety of social media platforms to choose
from, including Facebook, Twitter, LinkedIn, Instagram, Snapchat, and many others.
Depending on the niche and target audience, business can choose whichever one(s) is most
relevant to their business.

Social media marketing is especially promising for small businesses because it increases their
competitive edge and reach. This new rewarding type of marketing, social media marketing,
can be easily defined as ''a term used to describe the process of boosting website traffic, or
brand awareness, using social media networking sites…most social media marketing
programs usually revolve around creating unique content that attracts attention and
encourages the viewer to share it with their friends and contacts on social networks.
Your business message spreads from one user to another and impacts the user in a stronger
way because it appears to originate from a trusted source, as opposed to the brand, business,
or company itself" (2014: 2). As is apparent from the above citation the key element of social

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media marketing is involving users of social networks. If users / readers come across a right
and relevant content the likelihood of sharing it with other people in their social networks
increases.
So, if a marketing body succeeds in making social media users share its promotional content
with people in their network it means that it has gained support from a trusted source and
possibly will be regarded highly by the recipient. Clearly promotional content shared by a close
friend has much more impact than content directed from a marketing party. The impact of
contents shared by social network members is high due to the fact they are originally kind of
a "word of mouth" circulating on the online environment.
With respect to pillars of social media it should be noted that the "social media comes in many
forms … [such as] blogs, microblogs (Twitter), social networks (Facebook, Link), media-
sharing sites (YouTube, Flickr), social bookmarking and voting sites (Digg, Reddit), review
sites (Yelp), forums, and virtual worlds (Second Life)" (Zarella, 2010).

VIRAL MARKETING: Another method of


conducting online marketing which overlaps remarkably
with social media marketing, due to the centrality of
"word of mouth" to it, is called Viral Marketing. Viral
marketing, in fact, is "a form of word-of-mouth
marketing which aims to result in a message
spreading exponentially. It takes its name from a
virus, because of the similarities that marketers aim to
emulate: It is easily passed on.
The number of people who have been ―infected‖ grows
exponentially" (Stokes, 2011). Viral marketing is a new concept which has been
developed with the advent of the Internet. Viral marketing spreads through social networks
and it is a virtual version of word of mouth. It is a very cheap mode of marketing and if you
use it there is no need to spend massive amounts of money on traditional expensive marketing
campaigns.
Viral marketing works through encouraging people to share, pass along, and forward a
marketing message; it is based on a high rate of pas-along form a user to another user.

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Harnessing such a powerful instrument, word of mouth, and having


others share your products and sell it, guarantees the success, even
compared with launching a classical marketing campaign. Among
other means of promotion and building brand awareness such as
images, jokes, e-carts etc, viral marketing campaigns employ creative
digital videos as well. Digital videos are most useful according to
Kirby & Marsden (2006) due to the following reasons.
There is a less risk of user interference with the agent. Digital video files can include hotspots
that enable users to link through the file to a web page.

INFLUENCER MARKETING: One of the newer types of internet marketing, influencer


marketing uses influencers, actors, crickets and renowned personalities or someone with a
large social following, to promote their product or service for a price. This can be highly
effective if the influencer is in line with a company’s values and resonates with the company’s
customers. Like Amitabh ji promotes Dhanuka Chemicals etc.

CONTENT MARKETING: This is an approach to marketing that is strategically


designed to attract, gain, and retain customers by creating and distributing helpful & relevant
online content that generates brand awareness.
It focuses on communicating with customers rather than selling and is usually better received.
Content marketing typically covers content assets like blog posts, infographics, eBooks,
videos, white papers, podcasts, case studies, and webinars.

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Users can interact with the content by reading, sharing, and commenting on it, which in turn,
leads to more clicks, leads, and ultimately, sales. A brand may use this approach to hold a
customer’s attention with the goal of influencing potential purchase decisions.

SPONSORED CONTENT: Sponsored content refers to a form of content marketing in


which advertisers like News Channels, Entertainment Channels pay to publish their material
consistent with the medium’s normal format—whether they be articles, photos, social media
posts, video, etc. This type of digital marketing is usually denoted with
phrases like “brought to you by” or “sponsored by” which means it’s
being promoted.
It is important for a firm to reach out to consumers and create a two-
way communication and interaction, as internet marketing allows
consumers to give back feedback to the firm on a community-based site or straight directly to
the firm. Firms should seek this long-term communication relationship by using multiple forms
of channels and using promotional strategies related to their target consumer as well as word-
of-mouth marketing.

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Chapter 2
Literature review
An extensive literature review is done on the concepts and theories related to internet
marketing. A review of Research articles is undertaken to take note of and acknowledge work
that has been done in the field of internet marketing as such. The researcher has collected
secondary data from reputed international and national Journals, books, and Magazines.
The researcher has identified more research papers along with few articles published in
renowned journals using keywords such as internet marketing, digital marketing, web
advertising, E-commerce impact, trends of online marketing, consumer attitude to Web ad
and sales/marketing strategy. The review of available Literature on each topic is taken into
account in this chapter.

1. “IMPACT OF E-COMMERCE
ON MARKETING” BY REDDY
(2003)
The article describes how Marketing is one
of the business functions that is most
drastically impacted by the internet-based
technology. The Internet has provided
businesses a new channel of communication
and interaction with potential customers by
bringing them closer in a more cost-effective manner. Businesses can use the internet to
provide relevant information, service, and customer support. It also creates positive interaction
with customers that can serve as the foundation for long term relationships and encourage
repeat purchases. Ecommerce allows the customers to do the shopping from the comfort of
their homes and purchases their goods. It facilitates the customers to buy any kind of product
or service in their mind at any time and from any part of the world.

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2. “IMPACT OF DIGITAL SOCIAL


MEDIA ON ADVERTISING” BY (WANI
ET AL., 2016)

The world is digitally connected and the best


strategies to use social media will help marketers in
the long way. Social media sites like Facebook,
Twitter, LinkedIn and other electronic media provide
a good source for gaining information and being
socially active. The reviews and analysis posted on
this medium have a great impact on the shopping
behavior of the consumers. It is an economical and convenient source of information for anyone
shopping online or just searching for products and services. Facebook seems to be the choice
of marketing.
The time spent by the consumers on social media its more friendly on Facebook, where now the
brand advocates information of the internet/ or digitally connected consumer. The chat mediums
have provided platforms like traditional word-of-mouth marketing. Hence Marketers need to
strategically use this media to market their products/services to the consumers.
Social media is not the only source and is not just a choice to bring the consumer down the
market funnel, but a cleverly planned and laid down strategy will prove to be an effective ROI.
This medium is impacting the market and hence strategic use is necessary since it is the right
place and if the best marketing strategy is used advertising will be possible to market their
product at the right time and to the right audience with target marketing. A proper segment can
be targeted with proper use of the market matrix used in online display advertising.

3. “PUSHING AND PULLING ON THE


INTERNET” BY (KUMAR & SHAH, 2004)

This article explains how the internet is used for pulling the
new customer and a push medium in information. Today’s
customers have unique needs, interests and demands.
They use the Web for getting more and more information
about the product. In this scenario web advertisement can
be used to pull new customers and increase sales. The
author explains that the internet is one of the fast-growing
sales channels and it has a significant impact on consumer

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behavior. Internet based technologies have completely changed the way brand and product
awareness are created. It has also created a new medium to buy goods and services bringing
new opportunities as well as challenges for the existing and new business owners.
Traditional marketing activities through the conventional channels of television, radio, and print
media such as newspaper, magazines etc. normally follow the AIDA (Awareness, Interest,
Decision, Action) process where advertising is generally done to “Push” awareness to arouse
interest, leading to influencing decision and purchase action. However, the internet provides a
medium beyond the AIDA model objectives. It provides a platform to businesses where they can
advertise, provide sales support, exchange information, and interact with customers rather than
just using it as a push marketing medium. In this age of information overload, the user chooses
to see, read, or hear what he/she wants and promptly discard the rest to move on to the next
relevant item.
This distinguishes the Internet as a pull medium as well as a push medium for information
dissemination. In such a scenario, non-relevant online advertisements such as pop-up ads or
banners run the risk of annoying users and losing them forever. Therefore, it’s time for marketers
to rethink their online advertising strategy and strive to develop a more targeted and focused
approach towards their potential customers.

4. “THE INTERNET REVOLUTION: SOME


GLOBAL MARKETING IMPLICATIONS” BY
(MELEWAR & SMITH, 2003)

The author describes that the information technology


advances have constantly affected the global marketing
strategies of the organizations. Internet facilitates the ease
for the organizations to conduct the global marketing
campaigns, especially the smaller organizations which
were not able to compete on global scale previously. With
a growing internet user base and its inability to be constrained by either time or location, the
internet has the capability for mass communication and advertising with negligible cost per
customer.

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However, the article also explains how the internet facilitates an individual’s ability to hold
organizations responsible for their actions. The study also proposes strategies for the marketers
to consider when facing the other side of the internet.

5. THE USE OF THE INTERNET AS A


MARKETING CHANNEL FOR IRISH SPECIALTY
FOOD” BY (CANAVAN ET AL., 2007)

The Internet has become the one of the fastest growing platforms
for shopping and it provides the customers and producers a global
shop window to buy and sell products respectively. In this
research paper, the author investigates the impact of the internet
as an alternative marketing and distribution channel for specialty food products from the
perspective of both consumers and producers in the context of Ireland.

After analyzing the data collected from the focused group in-depth interviews and online survey,
the article explains that the internet can be a dominant sales channel for some specialty foods
with certain attributes such as products with gift-oriented packaging, high value goods, mainly
targeting the customers with previous purchasing experience.

For the majority of specialty food producers, the internet as a marketing channel can complement
other marketing channels. The role of the internet in this context may be more important for
managing information and customer relationships than online sales.

6. “IMPROVING CUSTOMER
RELATIONSHIP MANAGEMENT THROUGH
DATABASE/INTERNET MARKETING” BY
(O’LEARY ET AL., 2004)

With an ever-growing internet user base, the organizations


have started to use the internet to collect customer information

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in their database marketing process to enhance the customer relationship.

Using the empirical data from a large Australian based company, the author explains that the
integration of internet and marketing databases can significantly improve the effectiveness of
the customer relationship management practices by providing the benefits such as improved
consumer data collection accuracy, speedy process, lesser cost, more interaction, and better
relationship with customers.

However, to optimise the impact of the integration of internet and marketing databases, the top
management support, organization culture, and collaboration between IT and marketing teams
needs to be in place to create a supportive environment.

7. “MARKETING ON THE INTERNET — WHO CAN BENEFIT FROM


AN ONLINE MARKETING APPROACH?” BY (KIANG ET AL., 2000)

The rapid growth of online computing technology makes it vital for the companies to seriously
consider the internet to avoid losing competitive advantage. This article builds upon the review
of ecommerce the literature in marketing to understand the factors that affect a products
adaptability to online marketing that means utilising the internet as means of sales. The authors

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explain that product availability, customization, logistics and transaction complexity are four
major factors that affect the channels selection choices. The study also explains the significance
of each factor on the success of an organization's online marketing approach.

Among these four characteristics of the products, logistics has the dominant effect of the
selection decision of channels because the digital products have the advantage of using the
internet for both transaction and delivery process. The second dominant characteristic is
potential product customization of the goods and services, followed by the transaction
complexity and product availability.

8. “FUTURE OF OFFLINE MARKETING AHEAD OF THE RAPID


DEVELOPMENT OF ONLINE MARKETING” BY (BOBALO, 2018)

Quick internet coverage all over the world created new possibilities of
its usage as a new mass media which are more flexible,
dynamic and, what is more important, almost
uncontrollable. And they require approaches and
knowledge which differ from existing ones. So,
companies, which want to be active in the biggest
net and want to influence their target audiences,
have started to develop the direction of internet
marketing.

Recently, internet marketing has become a very


important part of marketers’ life and very fashionable.
Every company which understands the importance of
new technologies actively lives on the internet. Its
marketing activity is more and more concentrated on the internet. In this article, research
investigates the company’s real possibilities to catch its target audience through the internet in
the context of Ukraine.

Results of the research show that a big number of potential consumers with the highest
purchasing power aren’t regular internet users. That is why the offline marketing practices need
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to be observed as a substitute for online marketing. Analysis of most common offline marketing
techniques shows that even progressive companies in the information and communication
technology sector often use such instruments.

9. “COST SAVINGS BETWEEN USUAL


MARKETING AND ONLINE MARKETING” BY
SCOTT F. GELD.

Marketing can be defined as “whatever you do to promote and grow


your business including market research, advertising, publicity, sales,
merchandising and distribution”. With traditional marketing
techniques all of these things are delivered in print format or in
person.

Internet marketing, however, uses the power of online networks and interactive media to reach
your marketing objectives, no paper, no telephone calls, no in person appearances. Internet
marketing can save time, money, and resources by providing electronic versions of catalogs,
brochures, white papers, data sheets etc. This information doesn't have to be printed, stored or
shipped to your customers resulting in enormous savings in printing and storage costs. And
about manpower (or lady power) costs, it no longer requires as many people as possible to
handle mailing and distribution of your marketing collateral...more savings.

More information can be provided to customers with little if any additional cost. Adding more
pages to a document online involves virtually no expense compared to the additional cost and
space required to deliver the same thing in print format. You can reach more customers than
ever before, and it doesn't cost a penny more. The difference between traditional and Internet
marketing is money and Internet marketing improves your bottom line.

10. “USAGE AND EFFECTIVENESS OF ONLINE MARKETING TOOLS


AMONG BUSINESS-TO- CONSUMER (B2C) FIRMS IN SINGAPORE” BY
(TEO, 2005)

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Businesses are increasingly using the Internet for commercial activities. The ubiquitous nature
of the Internet and its wide global access has made it an extremely effective mode of
communication between businesses and customers. The growth of Internet technology has
enormously reduced the costs of product and service delivery and extends geographical
boundaries in bringing buyers and sellers together.

This article investigates the usage and perceived effectiveness of various online marketing tools
among Business-to-Consumer (B2C) firms in the context of Singaporean firms. The author
suggests that the main element in the online marketing framework of ‘how to attract the
customers to the organization’s website’ can be achieved by using mnemonic branding such as
having a mnemonic URL or Web address, which is easy and intuitive for customers to find and
remember. For their Web marketing efforts, firms could increase their accessibility by getting
listed in many search engines and portals, which are primary gateways to the Internet.

The other element of the Digital Marketing Framework engaging users to achieve an interaction
or a transaction. For this, firms can make use of creative programming to provide interactive
media as well as content deemed valuable to customers. The next element relates to customer
retention strategies. The results suggest that it is important to keep website sites ‘‘fresh’’ by
continuously renewing content and/or providing dynamic content (e.g., stock quotes and weather
reports) as customers may visit a website and even be engaged once out of curiosity but will not
return there without a reason. In addition, the installation of sufficient security features is crucial
to build up the website’s reputation for reliability.

The last element of the Digital Marketing Framework revolves around providing customized
interactions and delivering value to customers. Relating to users can be in the form of providing
products or services tailored to customers’ wants and providing personalized communications
(e.g., via e-mails) about the products or services of interest to the customers. Providing
customized products and personalized services can instill a feeling of uniqueness in customers.

This feeling of uniqueness helps differentiate the brand from others and increase customers’
involvement with the brand. Hence, firms should carry out a review of their Web objectives and
reallocate both financial and human resources to their online businesses to better align the
resources with their online marketing plans.

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CHAPTER 3
THEORETICAL FRAMEWORK & METHODOLOGY

Over the last decade the use of the internet has grown, and it has now become the most popular
forms of communication. It is also increasingly used as a communication channel by marketers
and as a method of purchasing goods by customers. Today, internet marketing is shaped by the
availability of a broad and wide digital audience. According to research at Smart Insights:

✓ The number of internet users worldwide (as of 2020) has exceeded 4.72 billion.
✓ The number of social media users worldwide (as of 2020) is around 3.96 billion.
✓ The number of mobile phone users worldwide (as of 2020) is around 6.05 billion.

Each of these numbers reflects a distinct rise in usership from previous years. A changing digital
landscape means a change in marketing strategy as well. Additionally, today’s internet marketing
landscape is influenced by the following trends:

GLOBAL INTERNET MARKETING FRAMEWORK

Before diving into the framework, first it is important to highlight how internet marketing works.
When we break it all down to the individual pieces, then internet marketing follows a very basic
formula:

(REVENUE) = (WEBSITE TRAFFIC) X (CONVERSION RATE) X (CUSTOMER VALUE)

In other words, revenue from internet marketing is directly proportional to how many
people visit the website, how many of those people convert into customers, and
how much those customers are worth to the business. Or to put it another
way, there are 3 ways to increase your revenue from internet marketing:
increase the traffic, increase the conversion rate, and/or increase the
customer value.

Also, it’s important to remember that the revenue will be zero if any one
of those 3 variables is zero. That’s just basic math. It doesn’t matter if you drive

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millions of visitors to the website if the conversion rate is zero. The business will still end up with
zero revenue.

Now that you understand this formula, it’s time to introduce the framework, which I call the 4
Pillars of Internet marketing Success. These are the 4 Pillars every business must continually
try to improve to compete online.

Global Business Models

INTERNET MARKETING IS ASSOCIATED WITH SEVERAL BUSINESS


MODELS:

E-commerce: a model whereby goods and services are sold directly to consumers (B2C),
businesses (B2B), or from consumer to consumer (C2C) using computers connected to
a network.

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Lead-based Websites: a strategy whereby an organization generates value by acquiring


sales leads from its website. Similar to walk-in customers in retail world. These prospects
are often referred to as organic leads.
Affiliate Marketing: a process wherein a product or service developed by one entity is
sold by other active sellers for a share of profits. The entity that owns the product may
provide some marketing material (e.g., sales letters, affiliate links, tracking facilities, etc.);
however, the vast majority of affiliate marketing relationships come from e- commerce
businesses that offer affiliate programs
Local Internet Marketing: a strategy through which a small company utilizes the Internet
to find and to nurture relationships that can be used for real-world advantages] Local
Internet marketing uses tools such as social media marketing, local directory listing, and
targeted online sales promotions.

Some of the potential ways in which marketers reach out to the potential customers include the
following:

ONE-TO-ONE APPROACHES

In a one-to-one approach, marketers target a user browsing the Internet alone and so that the
marketers' messages reach the user personally. This approach is used in search marketing, for
which the advertisements are based on search engine keywords entered by the
users. This approach usually works under the pay per click (PPC) method.

APPEAL TO SPECIFIC INTERESTS

When appealing to specific interests, marketers place an emphasis on


appealing to a specific behavior or interest, rather than reaching out to a broadly defined
demographic. These marketers typically segment their markets according to age group, gender,
geography, and other general factors.

NICHE MARKETING

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Niche and hyper-niche internet marketing put further emphasis on creating


destinations for web users and consumers on specific topics and
products. Niche marketers differ from traditional Internet marketers
as they have more specialized topic knowledge. For example,
whereas in traditional Internet marketing a website would be
created and promoted on a high- level topic such as kitchen
appliances, niche marketing would focus on more specific topics
such as 4-slice toasters.

Niche marketing provides end users of such sites much targeted information
and allows the creators to establish themselves as authorities on the topic or product.

GEO-TARGETING

In Internet marketing, geo targeting, and geo marketing are the methods of determining the geo-
location of a website visitor with geo-location software, and delivering different content to that
visitor based on his or her location, such as latitude and longitude, country, region or state, city,
metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria

FACTOR IMPACTING INTERNET ADOPTION:

1. CUSTOMERS

Online customers must have access to a computer and a method of payment. In general, higher
levels of education, income, and occupation of the head of the household correspond to more
favorable perceptions of non-store shopping.

Also, increased exposure to technology increases the probability of developing favorable


attitudes towards new shopping channels. In a December 2011 study Equation Research found
that 87% of tablet users made an online transaction with their tablet device during the early
holiday shopping season.

2. LOGISTICS

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Consumers find a product of interest by visiting the website of the retailer directly or by searching
among alternative vendors using a shopping
search engine.

Once a particular product has been found on the


website of the seller, most online retailers use
shopping cart software to allow the consumer to
accumulate multiple items and to adjust quantities,
like filling a physical shopping cart or basket in a
conventional store. A "checkout" process follows
(continuing the physical-store analogy) in which payment and
delivery information is collected, if necessary.

Some stores allow consumers to sign up for a permanent online account


so that some or all this information only needs to be entered once. The
consumer often receives e-mail confirmation once the transaction is complete.
Less sophisticated stores may rely on consumers to phone or e-mail their orders (though credit
card numbers are not accepted by email, for security reasons).

3. PAYMENT

Online shoppers commonly use a credit card to make payments, however some systems enable
users to create accounts and pay by alternative means, such as:

✓ Billing to mobile phones and landlines


✓ Cash on delivery (C.O.D., offered by very few online
stores)
✓ Check
✓ Debit card
✓ UPI
✓ Direct debit in some countries
✓ Electronic money of various types
✓ Gift cards

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✓ Postal money order


✓ Wire transfer/delivery on payment

Some sites will not accept international credit cards, some require both the purchaser's billing
address and shipping address to be in the same country in which the site does its business, and
still other sites allow customers from anywhere to send gifts anywhere. The financial part of a
transaction might be processed in real time (for example, letting the consumer know their credit
card was declined before they log off), or might be done later as part of the fulfillment process.

4. PRODUCT DELIVERY

Once a payment has been accepted the


goods or services can be delivered in the
following ways.

✓ Downloading: This is the method


often used for digital media products
such as software, music, movies, or
images.
✓ Drop shipping: The order is passed to the manufacturer or third-party distributor, who
ships the item directly to the consumer, bypassing the retailer's physical location to save
time, money, and space.
✓ In-store pickup: The customer orders online, finds a local store using locator software
and picks the product up at the closest store. This is the method often used in the bricks
and clicks business model. Printing out, provision of a code for, or emailing of such items
as admission tickets and scrip (e.g., gift certificates and coupons). The tickets, codes, or
coupons may be redeemed at the appropriate physical or online premises and their
content reviewed to verify their eligibility (e.g., assurances that the right of admission or
use is redeemed at the correct time and place, for the correct dollar amount, and for the
correct number of uses).
✓ Shipping: The product is shipped to the customer's address or that of a customer-
designated third party.

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Will call, COBO (in Care of Box Office), or "at the door" pickup: The patron picks up pre-
purchased tickets for an event, such as a play, sporting event, or concert, either just before the
event or in advance. With the onset of the Internet and e-commerce sites, which allow customers
to buy tickets online, the popularity of this service has increased.

5. SHOPPING CART SYSTEMS

Simple systems allow the offline administration


of products and categories. The shop is then
generated as HTML files and graphics that can
be uploaded to a web space. These systems do
not use an online database.

A high-end solution can be bought or rented as


a standalone program or as an addition to an enterprise resource planning program. It is usually
installed on the company's own web server and may integrate into the existing supply chain so
that ordering, payment, delivery, accounting, and warehousing can be automated to a large
extent. Other solutions allow the user to register and create an online shop on a portal that hosts
multiple shops at the same time.

Commercial systems can also be tailored to one's needs, so the shop does not have to be
created from scratch. By using a pre-existing framework, software modules for various
functionalities required by a web shop can be adapted and combined.

6. ONLINE MARKETING

Like many online auction websites, many websites allow small businesses to create and
maintain online shops (ecommerce online marketing carts), without the complexity that involved
in purchasing and developing an expensive standalone ecommerce software solution

7. DESIGN

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Customer are attracted to online marketing not only because


of the high level of convenience, but also because of the
broader selection, competitive pricing, and greater
access to information. Business organizations seek
to offer online marketing because it is much lower
cost compared to bricks and mortar stores, offers
access to a worldwide market, increases customer value
and builds sustainable capabilities.

8. INFORMATION LOAD

Designers of online shops are concerned with the effects of


information load - whether consumers can be given too much information in
virtual shopping environments. Information load is a product of the spatial and temporal
arrangements of stimuli in the web store. Compared with conventional retail shopping, the
information environment of virtual shopping is enhanced by providing additional product
information such as comparative products and services as well as various alternatives and
attributes of each alternative, etc.

Two major dimensions of information load are complexity and novelty. Complexity refers to the
number of different elements or features of a site, often the result of increased information
diversity. Novelty involves the unexpected, suppressed, new, or unfamiliar aspects of the site.
The novelty dimension may keep consumers exploring a shopping site, whereas the complexity
dimension may induce impulse purchases.

9. CONSUMER NEEDS AND EXPECTATIONS

A successful web store is not just a good-looking website with dynamic technical features, listed
in many search engines, but moreover it should also know how to build customer relationship
and making money while meeting demands of the customers whose taste is very tough to catch.

Businesses often attempt to adopt online marketing techniques without understanding them
and/or without a sound business model, producing web stores that support the organizations'
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culture and brand name without satisfying consumer's expectations. User-centered design is
critical. Understanding the customer's wants and needs and living up to promises gives the
customer a reason to come back and meeting their expectations gives them a reason to stay. It
is important that the website communicates to the customer that the company cares about them.

Customer needs and expectations are not the same for all customers. Age, gender, experience,
culture are all important factors. For example, Japanese cultural norms may lead users there to
feel privacy is especially critical on shopping sites and emotional involvement is highly important
on financial pensions sites. Users with more online experience focus more on the variables that
directly influence the task, while novice users focus on understanding the information.

To increase online purchases, businesses must expend significant time and money to define,
design, develop, test, implement, and maintain the web store. It is easier to lose a customer then
to gain one and even "top-rated" sites will not succeed if the organization fails to practice
common etiquette such as returning emails in a timely fashion, notifying customers of problems,
being honest, and being good stewards of the customers' data. [ Because it is important to
eliminate mistakes and be more appealing to online shoppers, much web shop designers study
research on consumer expectations.

10. USER INTERFACE

The most important factors determining whether customers return


to a site are ease of use and the presence of user-friendly
features. Usability testing is important for finding problems and
improvements in a web site. Methods for evaluating usability
include heuristic evaluation, cognitive walkthrough, and user
testing. Each technique has its own characteristics and
emphasizes different aspects of the user experience.

11. MARKET SHARE

E-commerce B2C product sales totaled $142.5 billion, representing about 8% of retail product
sales in the United States. The $26 billion worth of clothes sold online represented about 13%
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of the domestic market, and with 72% of women looking online for apparel, it has become one
of the most popular cross-shopping categories. Forrester Research estimates that the United
States online retail industry will be worth $279 billion in 2015.

For developing countries and low-income households in developed countries, adoption of e-


commerce in place of or in addition to conventional methods is limited by a lack of affordable
Internet access.

12. CONVENIENCE

Online stores are usually available 24 hours a day, and many consumers have Internet access
both at work and at home. Other establishments such as internet cafes and schools provide
access as well. A visit to a conventional retail store requires travel and must take place during
business hours.

In the event of a problem with the item it is not what the consumer ordered, or it
is not what they expected consumers are concerned with the ease with which
they can return an item for the correct one or for a refund. Consumers may
need to contact the retailer, visit the post office, and pay return shipping,
and then wait for a replacement or refund. Some online companies have
more generous return policies to compensate for the traditional advantage
of physical stores.

For example, the online shoe retailer Zappos.com includes labels for free return shipping, and
does not charge a restocking fee, even for returns which are not the result of merchant error.
(Note: In the United Kingdom, online shops are prohibited from charging a restocking fee if the
consumer cancels their order in accordance with the Consumer Protection (Distance Selling)
Act 2000).

13. INFORMATION AND REVIEWS

Online stores must describe products for sale with text, photos, and multimedia files, whereas in
a physical retail store, the actual product and the manufacturer's packaging will be available for
direct inspection (which might involve a test drive, fitting, or other experimentation).

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Some online stores provide or link to supplemental product information, such as instructions,
safety procedures, demonstrations, or manufacturer specifications. Some provide background
information, advice, or how-to guides designed to help consumers decide which product to buy.

Some stores even allow customers to comment or rate their items. There are also dedicated
review sites that host user reviews for different products. Reviews and now blogs
give customers the option of shopping cheaper org anise purchases from all over
the world without having to depend on local retailers.

In a conventional retail store, clerks are generally available to


answer questions. Some online stores have real-time chat
features, but most rely on email or phone calls to handle
customer questions.

14. PRICE AND SELECTION

One advantage of shopping online is being able to quickly seek out deals for items or services
with many different vendors (though some local search engines do exist to help consumers
locate products for sale in nearby stores). Search engines, online price comparison services and
discovery shopping engines can be used to look up sellers of a particular product or service.
Shipping costs (if applicable) reduce the price advantage of online merchandise, though
depending on the jurisdiction, a lack of sales tax may compensate for this.

Shipping a small number of items, especially from another country, is much more expensive
than making the larger shipments bricks-and-mortar retailer’s order. Some retailers (especially
those selling small, high-value items like electronics) offer
free shipping on sufficiently large orders. Another major
advantage for retailers is the ability to rapidly switch
suppliers and vendors without disrupting users' shopping
experience.

The current pandemic has taught to live digitally active


rather than getting to shops/ malls and exposed to Covid/
Coronavirus. Moreover, sales of various supply chain

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An Overview

startups and unicorns are hitting all time high including Grocery from Grofers, Fresh vegetables
from Amazon Fresh, Big Bazaar, Big Basket. These all platforms have been very supportive to
mission of Digital India and very soon rural community engagement would happen.

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Chapter 4
Opportunities & Challenges of Internet marketing

OPPORTUNITIES OF INTERNET MARKETING

Regardless of size and type of industry, internet marketing offers companies of all stripes an
affordable and efficient way to acquire leads than traditional marketing methods. Internet
marketing provides a business of any size entrance to the global marketplace at a minimal price,
and unlike TV or print media promotion, it allows customized promotion of content (Kaplan &
Haenlein, 2010). With internet marketing, a business can easily track the results of a marketing
advertisement such as the number of clicks, likes, shares, queries, and conversion. These
quantitative performance metrics provide valuable insights, enabling the company to make
informed decisions about its business.

Further, unlike the traditional ways of marketing, where an alternation cannot be made to a flyer
or billboard once it was up, internet marketing allows business to modify and improve the
promotional messages as it goes. This means a business can make changes as needed to
generate the best possible results. Below are some of the reasons why any company needs to
invest in internet marketing to promote its services and products.

I. COST EFFECTIVENESS:

Compared to traditional marketing techniques which are very resource consuming, internet
marketing is clearly cost-effective due to cheap internet plans. An appropriately arranged and
efficiently targeted Internet marketing advertisement can reach the correct set of audiences at a
significantly minimal cost than traditional marketing techniques.

For example, the cost of launching an advertisement online is far cheaper than placing an
advertisement in a newspaper/magazine or on a billboard as it requires audience management
along with marketing plan and reservation costs. In internet marketing, the use of content and
social media in creating an internet presence is very less and no cost is incurred on rent of

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physical property and maintenance of the property. Thus, the cost of establishing an online
presence, networking with other organizations, and communicating & interacting with customers
is significantly low making startups align to enable digital presence. Consequently, internet
marketing facilitates businesses to save their resources to deploy it mindfully on other business
activities.

II. EMPOWERING EFFECT:

One of the main benefits of internet marketing is associated with its empowering effect on smaller
companies. As Dholekia and Kshetri, (2004) states “internet can extend market reach and
operational efficiency of small and medium enterprises (SMEs)”. In particular, the internet
creates a type of democratized business environment in which marketing has been reformed in
such a way that now even small companies/ startups/ MSME have equal opportunity to promote
their goods and services on a global scale (Tapp, 2008).

Therefore, it can be stated that the “internet has created unprecedented opportunities for small
businesses to engage in national and international marketing campaigns which could have been
unaffordable due to the huge number of resources required” (Poon and Jevons, 1997; Jobber,
2001). Blogging, Email Marketing, Social media marketing, Search engine optimization,
launching websites, etc are some of the easily affordable internet marketing channels that give
small companies an ability to compete and survive. Nowadays we see all startups have their
digital presence and during Covid many supply chain startups have revamped digital platform
using various analytical tools and complete dashboard to manage entire value chain.

III. ELIMINATION OF GEOGRAPHIC BARRIERS:

One of the main


advantages of internet
marketing is that it allows
unlimited global reach at a
significantly minimal cost. It
removes all the
geographical barriers in the

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An Overview

process of selling and buying. Because of the significant cost associated with traditional media,
only huge corporations were able to create global reach. However, the introduction of cost-
effective internet-based technologies has enabled small businesses to enjoy international reach.
The elimination of the geographical barriers has facilitated the producers to present the goods
and services to a different set of customers worldwide, considering they have access to the
internet. This allows the markets to discover new marketplaces with only a small investment

IV. CONVENIENCE:

Internet marketing has facilitated the companies to provide 24*7 customer services without
thinking about the opening and closing time of the physical retail
store. Even when a business’s office/store is not open, a
potential customer can find out about the business’s
goods and products through their website. The Internet
has made it very easy and convenient for the
customers to browse the online store at any time of
the day or night, from any place in the world, and
place their order at their own convenient time from
the comfort of their home, with the only condition that
they have internet connectivity.

V. INCREASE WEBSITE TRAFFIC:

Using social media, blog posting, email marketing, etc. has


helped the companies to increase the traffic to a business
website. The greater number of people visiting the website
increases the chance of creating more interest of the potential
customers in the brand, increasing the likelihood of more sales.

VI. ONE-TO-ONE MARKETING:

Internet marketing removes the barriers of distance between


producer and seller because a producer can promote and sell their goods

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An Overview

and services in any part of the world without setting up a physical outlet over there. Therefore,
the range of target markets becomes very wide for the companies. Nevertheless, if a company
wants to sell a good or service globally, they have to ensure that the product is suitable for the
local markets, and it also fulfills the local business rules and
regulations. Localization of the goods and services might
include the language translation of the description about
the product, modification in the product to reflect the
characteristics of the local market, etc.

VII. IMPROVED BUYER-SELLER


RELATIONSHIP:

Internet provides an appropriate medium to build relationships with


consumers to improve customer retention and loyalty. For instance, if a customer buys a good
or service from a seller, to begin the relationship, a business should send an immediate
confirmation email about the transaction and a thank you note for placing the order. A business
should continuously update the customer about the location and delivery time of the product.
Once the product is delivered to the customer, the seller can also invite the customer to provide
their feedback about the products on their website to create a sense of belonging.

VIII. PERSONALIZATION:

Personalization signifies the customization of goods and services in accordance with the
preference of the customers. Karavdic and Gregory (2005) states that "Since electronic
interaction with customers allows the gathering of detailed information on the needs
of each individual customer, firms can automatically tailor products and services
to those individual needs".

In a similar way, personalized promotional messages can be sent to potential


customers to create a greater effect and build a sustainable relationship with
customers in place of indiscriminately sending a generic impersonalized message in the inbox
of customers.

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By creating a profile of the customer’s needs and preferences based on their purchasing history,
internet marketing enables a company to provide trailered offering whenever a customer visits
the business’s website. A business can do this by tracking the product information and web
pages the customer visits which reflect their interests and make a targeted offer accordingly.
Also, based on users' needs, demands, inclinations, and preferences data, the business can
customize their website for the target audience which will increase the interaction and create a
“Sense of intimacy” between the businesses and customers. Therefore, customization and
personalization are perceived as major advantages of internet marketing.

IX. INCREASED SALES:

Internet marketing increases the business sale because it creates


the opportunity for the customers to shop the
products in an online store at any time of the day
or night without going to a physical retail store.
This scenario also enhances the chances of
impulse buying which as a result will increase the revenue of the
company.

X. 24 HOURS / SEVEN DAYS AVAILABILITY:

Customers can get timely information on the internet due to its 24*7 availability. Companies can
provide their customers a 24*7 online platform to browse and purchase the product they want
using internet marketing, which is not possible in the case of a physical outlet where the shopping
can only be done during working hours. The time constraints of physical outlets affect the lifestyle
and schedule of working customers.

Customers can also surf the online shops at night and can go shopping in the physical outlet in
the daytime or they can look for products in the physical outlet and search the online store for
competitive pricing. Also, online shopping is more convenient for the customers as it can be
done any time of the day or night from the comfort of their homes at competitive pricing. A lot of
time and energy is saved this way.

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XI. BETTER CONVERSION RATE:

If a business has its own website, customers can easily complete their
purchase with only a few clicks. Unlike other traditional media, internet
marketing creates a smooth experience for the customers, not requiring the
customers to make a phone call or go to a physical shop.

XII. TRACKABILITY:

Another important asset of internet marketing is its ability to track everything that takes place on
it. For example, the number of visits in an hour on a particular blog post, number of clicks on any
online ads, or amount of website traffic, all of these are easily measurable in internet marketing.

These types of measures allow the business to find out if a particular marketing ad is effective
or not, what segment of customers are interested in that product, and from where? Earlier,
businesses were not able to provide exact statistics for their marketing campaigns, but Internet
marketing provides exact measuring statistics easily and
inexpensively.

The Internet also enables the marketers to track the visitors to


her/his website and understand their behavior. The ability to
track online customers increases drastically because the
"internet constitutes the most accountable media ever. Web site
log software and real-time profiling track the number of
users who view each page, location of previously visited
pages, date of view, time of view, duration of viewing, links
followed, and so on" (Granitz and Greene, 2003).

XIII. MORE INTERESTING ADVERTISEMENT/PROMOTIONS:

Using internet marketing, a business can create dynamic campaigns using visuals, graphics,
music, and videos. A business and organize a game contest for their potential customers to
increase their interaction with them.

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XIV. CUSTOMER EDUCATION:

Another important aspect of internet marketing is that it enhances customer education.


Consumers can research and share their experiences with products and/or services on the
internet very conveniently. Internet marketing can bring faster virtual results as compared to the
other forms of marketing efforts.

Globally, around 33% of the transactions are happening in the online marketplace and internet
marketing significantly decreases the prices of the products/services because the producers do
not have to invest much in internet marketing now, making it a win- win situation for both
customers as well as producers.

Challenges in Global Internet Marketing

Since the late-1990s, with the boom in the use of the internet by companies to interact and
communicate with customers, a lot of businesses have started to move online every day. With
the ever-increasing range and capabilities of the internet, new opportunities for progress are
arriving every day. However, for all these rewards, internet marketing faces some problems
unique to businesses. In this project, we have looked at some of those problems faced by the
companies and their possible solutions.

I. THE PROBLEM OF MARKETING INTEGRATION:

The major problem with the marketing campaigns is


that they employ multiple offline and online channels
such as press, brochure, TV, cell phone, e-mail,
internet, social media, web advertisements, etc.,
which lack a comprehensive, harmonizing marketing
framework. The problem is that each of these items is
worked on in separation and completed as a separate
assignment, not as a part of an integrated marketing

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campaign focused on achieving a particular specific objective.

A business can overcome this problem by taking a holistic approach that coordinates the various
traditional and online marketing approaches as a part of an integrated structure. Thus,
synchronizing all marketing efforts must be a priority of marketers. Like offline marketing, all
aspects of internet marketing are inextricably linked and, in many cases, interdependent. So,
none of the elements of marketing should be handled in isolation.

II. SECURITY AND PRIVACY CONCERN:

With internet marketing, security is an ever- growing concern among customers. Many people
do not completely trust online companies, and thus, they feel hesitation when putting personal
information on the internet or shopping for things online.

It becomes especially correct when the data from these companies are exposed by hackers and
scammers. To address this concern, the internet-based business should implement a solid
strategy and state of art security instruments. Encryption technique is an instrument that internet
businesses should seriously consider investing in to address the security concern of the
customers.

III. IMPERSONAL SERVICE:

Another challenge of internet marketing is “lack of personal contact”. Businesses operating


online use electronic methods to provide customer service, such as posting and emailing
information on the website to answer possible user queries.

Sometimes this can be perceived as too impersonal by many customers as the experience of
talking to store personnel in a face-to-face manner while shopping in the physical store is absent
in online shopping. To address this issue, the producers must build an efficient checkout
procedure for selling goods via the Web.

Businesses can also consider having call handling services so that customers can talk to real
people when they have any query, or they need immediate assistance.

IV. LACK OF TRUST:

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Closely linked to the issue of security and privacy concerns, the problem of lack of trust on the
part of customers has been acknowledged as a great challenge on the way of internet marketing
growth. And this is the main reason why "online trust is growing in importance as a topic of study
and its influence on internet marketing strategies is increasing"(Urban et al., 2009).

Despite the significant increase in online shopping all over the world, many people still do not
trust online payment methods. They feel doubtful whether the purchased goods will be delivered
to them or not.

The prevalence of online fraud cases has also created a negative and doubtful feeling among
the customers toward online shopping and transactions. Businesses need to work on building
up trust among the customers and convince them that online transactions are as real and honest
as offline ones.

It's an ongoing long process of building trust and unless this trust has not been built, businesses
cannot take full advantage of the potential of internet marketing. Therefore, it’s extremely
important for marketers to understand the reality of online space.

V. IMPROVING BRAND AWARENESS:

Another major challenge for companies to sell their goods online. The reason for this problem is
that unlike the traditional advertising techniques (such as magazines, radio, TV, billboard, press,
etc.) where the promotional messages can be repeatedly presented in front of the customers at
the producer’s will, online advertisements
can be closed off by internet customers.
Therefore, businesses must be more
creative and advanced in their promotional
messages.

Other Challenges of internet marketing are


as follows:

Internet connectivity issue


Collaboration and communication
with the IT department

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Increase in cybercrime.
The low proportion of computer diffusion
Continuous education and training of marketers about changing marketing techniques.
The risk of bad marketing is also present in poorly created and executed marketing
campaigns, degrading the profession, and creating mistrust among the customers and
businesses.
Risk of losing intellectual assets: In today’s internet era, it’s easy to steal someone else's
hard work. Every day everything from music to software, movies, and images are lifted
from the Internet.
Spam is another challenge with Internet marketing. Many online products are complete
scams or are promoted with deception making it difficult for the customers to know which
offer has true values.

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CHAPTER 5
CONCLUSION

Current pandemic situation caused by Covid-19 has completely compromised the business
which were run traditionally. Pre-covid everyone was running to disrupt the supply chain
physically but post-covid sitting at home, its being a lesson to all of us that with time digital
presence can only make the difference.

Internet marketing has revolutionized every aspect of business in vital ways. Internet marketing
includes all things that involve the internet and electronic devices to support the purpose of
increasing the customer base and providing support services to existing customers to develop
and nurture the company's relationship with its customers. When used efficiently and effectively,
internet marketing advertisements can quickly reach a broad set of customers with very minimal
cost. Even Facebook marketing are very cheap to boost ads and manage complete portfolio.

Over the years, businesses of all sizes and types have started to take advantage of online
channels like social media, blog posting, email, and other websites, search engines, etc. for
various reasons. The most common objective of investing in internet marketing was to create
brand awareness, increase customer engagement, boost sales and profits, and connect with
their current and future potential customers. Internet marketing also enables businesses to
collect information about potential customers that were not easily attainable with the traditional
techniques of marketing.

However, despite the global reach, minimal cost, quick process, and amount of information that
can be gathered from internet marketing, there are some major challenges of this type of
marketing that businesses need to acknowledge. The skill-driven technique of internet marketing
leaves some companies helpless or excessively dependent on third parties for marketing
services. It also empowers the customers to a far greater level than ever before, and it might
result in bad word of mouth because of frustrated customer's remarks affecting the brand image
greatly. However, even with these difficulties, on the whole, the impact of internet marketing
upon companies' growth has been mainly constructive.

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With the introduction of different types of internet marketing, this project has also shed light upon
the advantages and challenges of internet marketing. The major type of internet marketing
includes email marketing, online advertising, search engine marketing, Search Engine
Optimization, Pay-Per-Click, Content Marketing, Viral Marketing, Influencer Marketing, Affiliated
Marketing, Referral Marketing, Display Advertising, Social Media Marketing, etc.

For a business, the objective is to find the best way of internet marketing which results in a
maximum two-way interaction between producers and customers resulting in better ROI for the
business.

The major advantages of internet marketing have been its empowering effect, cost-
effectiveness, elimination of geographic barriers, one-to-one interaction, better customer
relationship, 24 hours / seven days availability, personalization, increased website traffic,
trackability, and improved customer knowledge.

However, implementation of Internet marketing also involves some real challenges, for instance,
integration of marketing activities, personalization, risk of bad marketing, lack of face- to-face
contact, security and privacy concern, trust issue, increase in cybercrime, etc. Unless companies
do not take these dual characteristics of the internet into consideration, internet marketing cannot
be used to its full advantage. An internet marketing framework taking these insights into
consideration would guarantee the business its financial objectives.

The modern market has transferred to the online world where companies can now reach
customers worldwide, using different forms of internet marketing. Not only does this increase the
potential market and the number of potential customers, but it also provides companies with the
chances of establishing a position in the global market and thus reaching for greater success
and achievement of long-term goals.

For businesses and entrepreneurs/ startups who want to stay on top of the freshest and most
attractive deals and sales going on in the world, internet marketing is a necessity, not a choice.
This method of marketing has lifted the business domain to new heights. The limitations of
internet marketing are few, while the advantages are sure to boost any business up towards the
most fantastic and profitable opportunities.

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Unlike traditional marketing techniques, internet marketing provides companies an opportunity


to collect data about the customer base of their needs, preferences, and interests. In recent
years, the development of social media advertising and online marketing has led to examples of
companies that are way more than creating categories and filters for the information about the
products and services on the internet, taking a small portion from every transaction. In the
coming years, internet marketing will strengthen further at the national level as well as
international level.

Although, the sustainability of internet marketing directly depends on the marketing innovations
and creativity by the marketers to adjust to the changes in the marketplace. Due to the increased
use of digital payments and easy access to data mining and marketing analytics, online
marketing has witnessed promising growth. Further, price- conscious customers prefer online
shopping more as companies offer their products and services at discounted prices in
comparison to their retail stores.

As technology continues to expand and develop, it is reasonable to consider that internet


marketing will do so as well. From what we know of today’s marketplace, we can predict where
the future of the industry might lead. The few of the immediate trend followed by this industry is
as below:

I. There would be an increased focus to optimize the coordinated exposure


on integrated global marketing. This in as many different internet channels
technique will allow the customers to as possible. This is also known as
make connections among multiple “omnichannel marketing strategy”.
sources of content such as blog IV. There will be an increased focus on
posts, a video, or an email regarding account-based marketing with the
different facets of the same topic. customization of promotional
II. There would be an increasing trend to messages according to the
integrate various marketing customers’ needs and preferences.
technologies in a more unified and V. There would be steady growth in the
consistent fashion. number of internet users but a
III. The business will increase the use of continuous increase in digital video
data mining and marketing analytics viewing resulting in the generation of

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An Overview

most consumer internet data from the online shopping experience


video and audio sources. supported by the best technology. To
VI. In conclusion, it can be summarized add on, nowadays Internet marketing
how internet marketing has changed has reached next level and
over the years. Internet marketing has developers are using Artificial
provided several techniques to Intelligence and Machine learning
businesses to create awareness algorithm to understand the buying
among the consumers and become pattern of the customers which is
successful but along with a lot of used to show him only relevant
challenges. To succeed, internet product of his/her interest.
marketing companies will require a VIII. Internet marketing is taking an edge
workforce with the skill and education when this upcoming new generation
to meet these future challenges and with entrepreneurial mindset has new
stay at the forefront of the industry. innovative ideas towards customer
VII. In the future, consumers can expect a retention models, customer
well-defined, efficient, and seamless acquisitions and brand boosting.

At the end I could say one quote very right said by Bill Gates –

“IF YOUR BUSINESS IN NOT ON INTERNET, THEN YOUR BUSINESS


WILL BE OUT BUSINESS”

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